Power consumers to be given fixed or flexible tariffs choice

The country’s retail electricity suppliers will be obligated to also offer consumers the choice of fixed tariffs as an alternative to flexible tariffs linked to clauses permitting revisions in line with cost shifts, including system marginal price (SMP) or CO2 emisson cost fluctuations, according to a plan being prepared by RAE, Regulatory Authority for Energy.

According to the RAE plan, consumers will be offered a choice between fixed electricity tariffs, presumambly at relatively higher prices and for a specific period of time, and flexible tariffs, initially lower but carrying fluctuation risk.

RAE decided to take action as a result of cost-related clauses introduced by electricity suppliers for protection against rising costs. Certain independent suppliers have already triggered clauses to combat sharp wholesale price increases.

The authority plans to soon launch a public consultation procedure ahead of regulation changes intended to make more transparent the pricing policies of all electricity suppliers, from the main power utility PPC to the independent electricity suppliers.

RAE also plans to reduce the public service compensation (YKO) rate imposed on nighttime electricity consumption.