fixed electricity tariffs

Protergia gets ball rolling with shorter-term, fixed tariff offer

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Protergia, a member of the Mytilineos group, has become the country’s first electricity supplier to announce a shorter-term, six-month tariff following a revision of regulations enabling fixed tariffs to be shorter than the original one-year period required by new tariff rules introduced January 1.

Protergia’s fixed tariff, or blue tariff, as dubbed in Greece’s new color-coded tariff system, comes at an appealing price of less than 13 cents per KWh, according to local price-comparison website allazorevma.gr, well below an average of 15.5 cents per KWh recorded by variable tariffs in 2023.

The supplier’s initiative suggests competition in the fixed-tariffs category will be intense. Also, variable tariffs, based on wholesale price forecasts, appear headed for a slight reduction.

Consumers wanting to avoid regular price comparisons of variable tariffs in the coming months will have plenty of appealing fixed-tariff offers to choose from.

Under the country’s new tariff system, color-coding tariff categories for easier price-comparing ability, fixed tariffs, or blue tariffs, as well as variable tariffs, either yellow or green tariffs, were introduced January 1. Though yellow and green tariffs are both variable tariffs, the former are set at the end of each month, and, as a result, represent less of a risk for suppliers.

Also, later this year, officials plan to launch dynamic tariffs, to be dubbed orange tariffs, offering low-voltage consumers equipped with smart meters the ability to take advantage of fluctuations in wholesale electricity prices. The plan to install smart meters around the country now appears set for launch following years of delay.

 

Pre-notification term planned for new variable tariffs in 2024

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The extent of possible additional charges included in variable electricity tariff agreements offered by suppliers as of the new year, when new post-crisis market rules are planned to be introduced, will need to be specified and announced by the 1st of each month and remain valid for the entire month, according to a plan being prepared by the energy ministry.

If the ministry’s planned revisions are implemented, consumers would automatically be transferred to variable-tariff categories offered by suppliers as of January 1, unless they opt – prior to this date – for some other type of supply agreement among the alternatives to be offered by their suppliers.

Consumers opting for fixed tariffs will have the right to 12-month supply agreements but will maintain the right to depart ahead of expiry dates, according to the ministry’s plan.

Given the wider insecurity felt by consumers ahead of January’s planned reactivation of indexation clauses, most consumers will probably prefer fixed tariffs, analysts have noted.

Independent suppliers have expressed concerns, noting the ministry is making decisions for new market rules without considering their views. This lack of exchange is breeding ambiguity and preventing suppliers from forming new pricing policies ahead of January 1, suppliers contend.

Market’s return to normality to include tariff transparency plan

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RAEEY, the Regulatory Authority for Waste, Energy and Water, is preparing measures for the retail electricity market’s return to normality, scheduled for January 1, following a recent extension of suspended indexation clauses until the end of the year.

More specifically, the authority has two decisions in the pipeline. The first decision pertains to the implementation of tariff transparency labeling. The second decision concerns establishing a framework for the retail electricity market’s return to normality at the beginning of 2024.

The authority plans to introduce the use of specific colors for documents containing pre-contractual information in order to help consumers easily identify categories of supply contracts available on the market and understand their charges. Fixed and variable tariffs, for example, will be associated with documents of specific colors.

The authority recently announced an initial plan including four types of electricity supply products – a variety of variable and fixed tariff options – but RAAEY officials have since clarified it was merely indicative as electricity retailers will retain the autonomy to customize and shape their product offerings according to their preferences.

 

PPC set to offer new fixed tariff package, beginning December 3

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Power utility PPC is introducing a new fixed-tariff package for consumers, as of December 3, as part of the corporation’s hedging formula to offset risks.

The new package will, as of this coming Friday, offer consumers a fixed tariff of 18 cents per KWh, or 17 cents per KWh for online applications, as well as a 50 percent discount on fixed costs for the first six months if applications are lodged by a December 31 deadline. Tariff levels of rival suppliers currently average 23 cents per KWh.

The packages will be offered as one-year agreements and include household coverage for emergency technical support. The insurance policy incorporated into new agreements will entitle holders up to five visits per year from tradesman such as plumbers and electricians and cover damages up to 100 euros per visit.

 

 

Electricity suppliers snub RAE’s tariff categorization proposal

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Power utility PPC and the country’s independent electricity suppliers have responded negatively to a proposal from RAE, the Regulatory Authority for Energy, calling for the categorization of low-voltage electricity tariffs offered to households into three groups, low, limited and high risk, for fixed, partially restricted and floating tariffs, respectively.

According to the RAE proposal, made in related public consultation, consumers taking on greater risk would be offered lower base tariffs, which, however, would be fully susceptible to market forces and resulting fluctuations.

In its response, PPC noted that it agrees on the existence of two consumer categories, offering fixed and floating tariffs, contending further categorization could ultimately unsettle consumers and even prompt negative perceptions of company offers as a result of the use of the high-risk tag.

Mytilineos group, in its remarks, noted that labelling a fixed tariff as a risk-free option would deprive consumers of the opportunity and incentive to change consumption habits or adopt options related to energy efficiency and savings.

 

Consumers hit with tariff hikes of over 20% in low, mid-voltage

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Sharply higher wholesale electricity prices registered over the past five weeks or so in the energy exchange’s new target model markets have, to a great extent, been quietly passed on by suppliers to consumer tariffs in the household, business and industrial categories, without any related announcements  from suppliers.

Price hikes by electricity suppliers have applied to approximately 35 percent of total electricity consumption, during this period, while tariff hikes have exceeded 20 percent in the low and mid-voltage categories.

In the low-voltage category, suppliers have activated clauses enabling tariff increases when wholesale price levels exceed certain levels.

Very few independent electricity suppliers, both vertically integrated and not, carry fixed-tariff agreements in their portfolios, exposing most consumers to wholesale electricity price fluctuations.

On the contrary, power utility PPC, representing roughly 65 percent of overall consumption, does not include wholesale price-related clauses in its supply agreements, meaning its tariffs have remained unchanged over the past few weeks.

Instead, PPC includes clauses linked to emission right prices in international markets. These have remained relatively steady in recent times.

Even if wholesale electricity prices happen to deescalate in the next few weeks, a likely prospect, some latency should be expected in any downward tariff adjustments by suppliers.

Numerous consumers have lodged complaints with RAE, the Regulatory Authority for Energy, over the tariff hikes by suppliers. Complaints by suppliers against energy producers setting excessively high prices in target model markets have also been made.

Price-comparison site in September, RAE insists on fixed-tariffs option

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A price-comparison platform for electricity and natural gas supply packages currently being prepared by RAE, the Regulatory Authority for Energy, is expected to be up and running in September, sources have informed.

Preparations for the new platform, to help consumers make supplier choices, are believed to be an advanced stage.

Suppliers have been given access to the platform to upload their packages and conduct checks, sources noted.

Meanwhile, RAE has completed public consultation ahead of a plan, which, if introduced, would require suppliers to offer consumers fixed tariffs, at a slightly higher price, as an alternative to existing flexible tariffs.

In recent times, independent suppliers have had to trigger price-adjusting clauses as a means of covering elevated wholesale electricity prices, including higher CO2 emission right costs. This has prompted complaints by consumers caught unaware by such terms.

RAE supports the idea of offering consumers fixed tariffs.

RAE pushing ahead with fixed tariff option plan, consumers irate

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RAE, the Regulatory Authority for Energy, is preparing to deliver, for public consultation, a plan whose implementation will require the country’s retail electricity suppliers to offer consumers fixed tariffs as an alternative to existing flexible tariffs adjusted by a clause permitting revisions during market cost shifts.

A growing number of consumers have filed complaints in recent times in reaction to higher-than-expected tariffs resulting from decisions by electricity suppliers to trigger price-adjusting clauses as a means of covering elevated wholesale electricity prices, including higher CO2 emisson right costs.

The tariff-revising clause has caused confusion among consumers, caught unaware as to when and under what conditions suppliers may trigger it. Consumers have also complained about the clause being hidden in fine print and for not being notified.

Until recently, independent suppliers had opted to absorb rising wholesale electricity costs for many months before finally triggering the clause at the risk of losing customers.

RAE’s plan proposes the inclusion of fixed tariffs as a customer choice for a one-year period, presumably at relatively higher prices.

Fixed electricity tariff option for consumers being prepared by RAE

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RAE, the Regulatory Authority for Energy, is preparing to present, any day now, proposals whose implementation will require the country’s retail electricity suppliers to offer consumers the choice of fixed tariffs as an alternative to flexible tariffs linked to clauses permitting revisions in line with cost shifts.

The authority is making final touches to new electricity supply terms to be forwarded for a public consultation procedure that may begin next week.

RAE was prompted to reach a decision requiring all electricity suppliers to offer fixed tariffs as an electricity-bill option following numerous complaints by customers facing inflated power costs as a result of decisions by retail electricity suppliers to trigger clauses enabling tariff hikes as a means of covering elevated wholesale prices.

This clause, one of numerous agreement terms presented to customers, has caught most consumers by surprise.

According to the RAE plan, consumers will be offered a choice between fixed electricity tariffs,  presumably at relatively higher prices and for a specific period of time, and flexible tariffs, initially lower but carrying fluctuation risk.

Besides increased wholesale prices, suppliers have also faced elevated CO2 emission costs.