The energy ministry is preparing to adjust the country’s new electricity tariff rules so that suppliers may be permitted to offer fixed tariffs with durations of less than a year, the objective being to enhance the new system’s flexibility.

RAAEY, the Regulatory Authority for Waste, Energy and Water, recently warned that the new electricity tariff system, launched January 1 and color-coding variable and fixed tariffs in an effort to simplify price comparisons for consumers, was in danger of proving ineffective as products offered by some suppliers were not fully abiding by a set of rules established by the authority.

The authority focused on energy supplier Fysiko Aerio’s 8-month fixed blue tariff, fearing it could lead to price comparability issues against the new system’s conventional 12-month fixed blue tariff.

RAAEY officials suggested Fysiko Aerio’s 8-month fixed tariff has taken advantage of an exception provided for in the new supply code, which, under certain conditions, permits supply contracts with a duration of less than one year.

The new electricity tariff system also includes yellow and green tariffs, both variable tariffs, though the former represent a lesser risk for suppliers as their levels are set at the end of each month.

A number of energy suppliers are believed to be awaiting the ministry’s revision in order to offer fixed tariffs with durations of less than a year. The ministry is expected to make the rule revision within the next few days.