Surcharges lifting power prices by 40%, stifling competition

Various mandatory surcharges imposed on power bills are increasing electricity supply prices by as much as 40 percent and consequently stifling competition, it has been determined from information forwarded by suppliers to RAE, the Regulatory Authority for Energy, as part of an investigation of the retail electricity market launched by the authority.

RAE has requested electricity suppliers to provide details on all components determining their respective pricing policies, discount offers, promotional efforts, as well as updates on their current financial standings, number of customers, unpaid receivables and other factors.

The authority intends to examine pricing policy factors and the sustainability of all electricity suppliers.

The data provided by one supplier showed that its initial electricity supply cost average of 49 euros per MWh in 2017 ended up reaching just under 69 euros with the inclusion of various surcharges.

Besides CAT and supplier surcharges, a series of various other unclear surcharges are added to supply costs.

These additional surcharges are seriously impeding the efforts of independent suppliers to offer attractive pricing policies that could heighten competition and accelerate their market share gains, market officials have stressed.