The energy ministry is seeking to simplify the procedure for consumer switches from one electricity supplier to another by limiting bureaucracy as a means of boosting mobility and competition.

The ministry is looking to reduce the amount of paperwork consumers are required to sign when entering into contract with suppliers, including authorizations, affidavits, as well as fine print added to contracts by legal offices representing suppliers.

Much work is needed as the effort is still at a preliminary stage. The ministry needs to tread carefully to prevent any side affects. It must strike a right balance between freedom and constraint as too much leeway for consumers could prompt a further increase in the number of consumers abandoning suppliers despite owing electricity-bill amounts, a phenomenon locally dubbed “energy tourism”.

To combat this trend, the ministry is preparing to introduce a debt-flagging system that would help protect suppliers against runaway consumers.

Looser electricity market rules implemented over the past couple of years have resulted in a sharp rise of unpaid receivables, up 500 million euros over the past year.

Under the new collective debt-flagging data system, consumers owing amounts to previous suppliers will be marked out for all suppliers to see.