RAE, the Regulatory Authority for Energy, has delivered a report on details concerning the planned suspension, for a year, of a wholesale price-related adjustment clause included in electricity bills by suppliers. The RAE report is the first step towards the suspension of the clause, planned as of July 1.
The energy ministry, the recipient of the report, will, as the sector authority, need to make a series of revisions to current electricity supply rules and, by extension, electricity bills, for the period during which wholesale electricity market measures will remain valid.
In practice, the RAE proposal means that the wholesale price-related adjustment clause will be removed from all existing tariffs that are currently not fixed.
Instead, a single charge for household and business category electricity will be introduced as part of the government’s wholesale market measures.
As of July 1, when the wholesale price-related adjustment clause is planned to be suspended, electricity suppliers will be able to offer three different types of tariffs – fixed, flexible with upper and lower limits, as well as flexible without upper and lower limits.
Existing electricity-bill customer agreements with wholesale price adjustment clauses will be converted to offer flexible price agreements, with our without limits, depending on the choice made by customers.
Subsidies will remain a key tool in the government’s effort to subdue energy costs for consumers.