The country’s electricity suppliers, both players who have already announced pricing policies ahead of a new tariff system being introduced January 1, and those that have yet to unveil their plans, are preparing to offer a barrage of discounts on new green tariffs, offering consumers further price reductions.

Suppliers are currently indicating that January’s green tariffs with discounts will drop below their initial estimates of between 15 and 17 cents per KWh made earlier this month and reach 14 cents per KWh, or even less, assuming international markets continue along their mild trajectory.

Last January, power utility PPC, the dominant retail player, had offered a subsidized basic tariff of 15.9 cents per KWh for monthly consumption of up to 500 KWh and 22.1 cents per KWh for monthly consumption of over 500 KWh.

Natural gas prices have generally remained subdued of late, enabling electricity suppliers to offer discounts in order to achieve favorable price-comparison impressions once RAAEY, the Regulatory Authority for Energy, Environment, and Water, soon posts green tariff levels offered by all market players onto its website.

For the time being, suppliers can only manipulate their green tariff levels, in an attempt to gain a competitive edge over rivals, through discounts as the basic billing price will remain fixed for six months as of January 1, when they are introduced.

Besides intensifying competition for green tariffs, competition among suppliers is also growing for fixed tariffs, dubbed blue tariffs. Consumers will also be able to choose variable tariffs, dubbed yellow tariffs.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose either variable or fixed tariffs.

It should be pointed out that suppliers, based on guidelines released by RAAEY, the Regulatory Authority for Energy, Environment, and Water, had been requested to announce their discounts by December 1.

However, leniency is now expected to be granted to enable a further round of discounts ahead of the January 1 tariff system launch and ultimately lead to lower electricity prices for consumers.