Summer is gone, light bills are coming

Electricity consumers will face an increase in bills of up to 50% as early as September, according to energy suppliers.

Citizens will be quite surprised when they receive their electricity bills for August over the next month, as they face a 35% -50% increase in tariffs, depending on the purchase prices and contracts of the supplier to which they are related.

The reason is high prices on the wholesale electricity market, which broke all records in August, both due to increased demand (during the unprecedented heat wave) and the trend of increasing tariffs for CO2 emissions and gas prices, which affect the cost of energy production. Utilities stress that they are “purchasing at high wholesale prices and activating price adjustment provisions”, ultimately passing the increased costs onto industry and consumers.

It should be noted that the average price of MWh this year for the first five months was 57.8 euros. The Average Estimated Purchase Price (TEA) for June was estimated at around 79.33 € / MWh. In May, the average TEA was € 63.16 / MWh. Based on the available data, the final average price for July will approach the € 100 / MWh mark and even higher in August.

Considering that since March 2020, companies have renewed contracts for the supply of medium voltage current (industrial companies, supermarkets) and linked them to the price of the wholesale market, the increase in tariffs in August will now directly “hit” consumers.

Meanwhile, RAE has presented its proposals in order to optimize electricity tariffs. However, in general, the market opposes RAE intervention in tariffs, considering it “intervention in the free trade market.” At the same time, it is noted that if the relevant proposals are implemented, this will reduce the “flexibility of the supplying companies”, and many small companies simply run the risk of shutting down, and electricity prices will continue to rise.

What RAE offers to pay your electricity bills:

Increased transparency

To increase transparency, the independent body’s proposal is to provide:

a) at least one fixed account for each category of clients,

b) a rolling invoice with a clear limit on the increase in commission fees (for example, for the Γ category of 30%).

Cancellation of a flat rate

RAE proposes to eliminate the fixed or any other similar charge on electricity bills in the context of the simplicity and clarity required by Directive 409/2020. Cancellation of early termination clauses: RAE proposes to prevent early termination clauses (for example, due to vendor change or meter outage). Setting limits on the increase of rolling invoices. Clearly limiting the increase in commission fees at rolling rates, with metrics to be determined by the supplier and made available to consumers. Paper invoices with no surcharges: For consumers who have opted to receive paper invoices rather than electronic invoices, RAE believes there should be no surcharges. Better consumer awareness: The RAE proposes to define a specific way to notify consumers of a change in pricing policy in terms of amendments. He suggests making individual consumer notification mandatory in the event of tariff changes.

In other words, regardless of whether all the required amendments are adopted, consumers will receive very “impressive” electricity bills.

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