Transition period for electricity tariffs

Transition period for electricity tariffs

The Ministry of Environment and Energy is aiming for the abolition of emergency measures in the retail electricity market in September but also for a return to normality from December or even the new year, and not on October 1 as expected. 

New minister Thodoros Skylakakis will comply with the European guidelines of the abolition of emergency measures in the retail electricity market. At the same time, however, he is oriented toward the implementation of transitional tariffs for the months of October and November and probably also December, in order to give suppliers and consumers time to better prepare for the transition to the pre-crisis regime of the adjustment clause.

According to the plan being considered by the Energy Ministry in collaboration with the Regulatory Authority for Energy, for the period from October 1 to November 30, or even the end of the year, providers will offer consumers month-long rates that will be announced at the start of the month of their application, as opposed to the current ones that are pre-notified from the 20th of the previous month that they apply in.

Unlike today, when providers simply announce the kilowatt-hour rate, in the new transitional tariffs they will also have to inform consumers of the formula through which the price is derived. That is, they should announce the equation with the various parameters they took into account to determine the price of the kilowatt-hour.

Little will change for consumers during the transition period compared to today. They will know in advance the rates of their provider on the first day of the reference month and will be able to compare it with the prices of other providers and choose whether to stay with them or not without being subject to any financial burden. The suppliers will take advantage of this transitional period to finalize the longer-term rates that they will make available to the market and inform their customers in time about them and the new contracts within the time limits of 60 days as provided by the Supply Code.

Transitional tariffs, their exact period of validity and the details of their implementation are currently being finalized to proceed either through legislation or through an amendment to the code. 

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