Power utility PPC, the domestic market’s dominant and influential player, clearly subdued its new variable green tariffs – introduced January 1 by all suppliers – to the greatest degree possible, setting a lower-than-expected rate of 13.63 cents per KWh for January that forced most rivals to respond with green tariffs that averaged 15.4 cents per KWh, overall for independent suppliers, rather than levels of between 16 and 17 cents per KWh, which they would have preferred.
Natural gas prices in international markets have been on a downward trajectory over the past few days, a trend that may encourage PPC to maintain its aggressive pricing policy for a second consecutive month when it sets green tariff levels for February in three-and-a-half weeks’ time.
The prospect has raised concerns among independent suppliers, fearing they may not be able to endure suppressed profit margins for a second month running and, instead, set tariffs at between 16 and 17 cents per KWh to avoid sacrificing profit once again.
Independent suppliers will be keeping a close watch on any consumer shifts this month before deciding on their tariff levels for February.
Besides variable green tariffs, the newly introduced tariff system, also includes fixed blue tariffs and variable yellow tariffs.
Consumers had up until December 31 to express preferences or be automatically transferred to the green-tariff category by their suppliers.
Consumers automatically transferred to green tariffs represented at least 70 percent of the respective client bases of all suppliers.