RAE clause revision proposals not embraced by suppliers

A series of electricity bill-clause revisions proposed by RAE, the Regulatory Authority for Energy, seeking greater clarity and price-comparing ability for consumers, have already prompted negative reaction from suppliers, expected to lodge their complaints, in writing, to the authority by Thursday.

In recent months, suppliers have been forced to activate electricity bill clauses as they have battled to cope with the impact of sharply increased natural gas prices in international markets as well as higher carbon emission right costs, all of which has led to elevated costs for consumers.

The authority has proposed a 30 percent limit on clause-related increases and decreases; the termination of fixed costs, noting that, unlike tariffs, directly comparable, fixed costs tend to cause consumer confusion as they can run for one-month or four-month periods; the termination of an early-withdrawal clause, which would stimulate greater consumer mobility; as well as electricity supply price inspections every three months, the objective being to counter temporary below-cost offers extended by some suppliers to lure customers.

In comments to energypress, supplier representatives contended that RAE’s proposed measures would stifle competition and restrict the shaping of offers made to consumers.

RAE is seeking to standardize electricity-bill offers, which would eliminate any leeway available to suppliers for flexibility in their offers, especially when concerning fixed costs, some supplier representatives stressed.