RAE, the Regulatory Authority for Energy, has summoned electricity suppliers to offer explanations on their decisions to trigger, in recent times, clauses that have significantly increased electricity costs for consumers in the low and medium-voltage categories without any prior notice.
The country’s independent suppliers have activated wholesale price-related activated clauses, protecting them against wholesale cost increases, while power utility PPC, more recently, has taken unprecedented action by triggering a CO2 emission rights cost-related clause incorporated into its agreements with customers.
Consumers across the board have lodged numerous complaints, prompting RAE to take action. The authority will stage meetings with suppliers to examine if irregularities exist or whether consumers have been misled.
This series of meetings is expected to begin next Thursday with PPC, whose administration will need to justify its pricing policy. Meetings with independent players are expected to follow.
RAE will request detailed market data from all suppliers concerning the clauses they have implemented and also examine whether these initiatives are lawful or not.
The authority will aim to clarify what actions suppliers are permitted to take so that consumers may benefit from clearer pricing policies.