A currently suspended indexation clause included in electricity bills for households and businesses will be replaced by a new framework offering consumers four different types of tariffs as of October 1.
RAAEY, the Regulatory Authority for Waste, Energy and Water, has just forwarded the revised framework for consultation, a procedure to be completed on June 19.
Adjustments to the current plan could be made if any proposals made by participants promise improvement.
The country’s emergency energy-crisis measures adopted for the wholesale and retail electricity markets, including the suspension of an indexation clause included in electricity bills with variable tariffs, expire on September 30.
One of the emergency measures, which was introduced last August, has required power suppliers to announce their respective tariffs for each forthcoming month by the 20th of every preceding month. This measure was intended to intensify competition between electricity retailers.
As of October 1, consumers will be able to choose from four types of electricity supply products, including two with variable tariffs, whose levels will be determined by a formula factoring in wholesale market price levels, according to the RAAEY plan.
One of the four new products proposed by RAAEY offers consumers fixed tariffs for a set period. Another offers variable tariffs to be adjusted on the 1st of each month. The choices will also include a dynamic variable tariffs offer for consumers who have installed smart meters.
RAAEY, in its plan forwarded for consultation, has noted that penalties for premature departures by customers cannot be incorporated into supply agreements with variable tariffs as they would represent an “abusive” practice.