Competition between electricity suppliers is set to intensify in the fixed-tariff category following the energy ministry’s decision to slash the required minimum duration of fixed tariffs to six months from 12 months, as was initially set under the country’s new tariff system, launched January 1.

Suppliers are expected to offer appealing fixed tariffs of 6, 8 and 12 month durations when they announce their latest offers tomorrow. Fixed tariff rates are expected to reach roughly 11 cents per KWh, possibly even lower.

Besides fixed tariffs, or blue tariffs – according to the new color-coded tariff system designed to simplify price-comparing ability – consumers may also choose from variable green tariffs and variable yellow tariffs, the latter representing a lesser risk for suppliers as their levels are set at the end of each month instead of the beginning.

Latest fixed-tariff rates to be announced tomorrow by suppliers are most likely to dominate customer attention as they are expected to be set at levels below those of variable green tariffs, which should range between 12 and 14 cents per KWh, and lower than pre-energy crisis tariffs offered by suppliers.

If the wholesale electricity market continues along its downward trajectory, at levels below 30 euros per MWh, then variable green tariffs to be offered in March should fall even lower than the anticipated 11 cents or so per KWh anticipated for fixed tariffs in February.

Meanwhile, RAAEY, the the Regulatory Authority for Waste, Energy and Water, has set a February 12 date for a hearing concerning energy supplier Fysiko Aerio’s 8-month fixed tariff, offered January 1, when the minimum duration for such tariffs was still 12 months.

Though it is seen as less of an issue now that the ministry has halved the 12-month minimum requirement for fixed tariffs and other suppliers are set to join in with shorter-term fixed tariffs, a fine for Fysiko Aerio has not been ruled out.