RAAEY plan tackling consumer switching set for consultation

A proposal prepared by RAAEY, the Regulatory Authority for Waste, Energy and Water, for revisions to Article 42 of the retail electricity market’s supply code as a means of countering supplier switches by debt-escaping consumers, while, at the same time, providing greater switching flexibility to punctual customers, is expected to be forwarded for consultation this week.

The adoption of a debt-flagging system as a collective data base identifying non-punctual customers for all suppliers to see is a key aspect of the new strategy. Unpaid receivables owed by roving consumers exploiting lax rules have risen to alarming levels.

The debt-flagging system will be color-based. Consumers with unsettled bills will appear highlighted in red in the system’s collective data base after have received a final warning on such action from their supplier, who, following this step, will be entitled to request supply cuts from the grid operator if overdue amounts remain unsettled or an installment-based payment schedules has not been established.

According to the RAAEY proposal, suppliers will maintain the right to redden former customers on the run for up to three months after they have fled to rival suppliers, but electricity-cut rights of suppliers against former customers will expire 12 months following their departures.