What you need to know when choosing an electricity supplier: tips for the first stage

Without entering the first stage, residents can choose the most suitable electricity supplier offer on their own initiative. So what is important for you to know and consider before choosing an independent electricity supplier?

No additional equipment required

According to Tomas Kavaliauskas, Project Manager of Public Relations at Energijos Skirstymo Operatorius (ESO), one of the main reasons for change is the creation of open competition, as it is the most effective incentive for suppliers to strive for consumers. It is competition for customers that forces companies to focus on what best and most diverse services to offer.

“It can only be electricity produced from renewable energy sources. These may be better conditions for customers with power plants or electric cars. These can be the prices of the services directly linked to the exchange price. This can be a consumer plan and a gift electric scooter. There can be several examples, so it is obvious that when choosing a supplier, each consumer must evaluate what is most important to him, what he needs the most and then examine what conditions the business offers him ”, says T. Kavaliauskas.

Only companies that meet the requirements for this activity and have received a license from the State Energy Regulatory Council can participate in the supply of electricity. Currently, five licensed electricity providers that have signed agreements with ESO (www.pasirinkitetiekeja.lt) offer their services to domestic consumers. You can also find the terms of service they offer on the providers’ websites.

T. Kavaliauskas points out that after choosing a new provider, residents will not have to take care of any additional equipment, they will not have to enter into any additional contract, except a single one, which will be signed with the provider.

“The contract is signed only when the consumer has finally decided, examined what the providers offer and the latter can make offers to the consumer e. by mail or phone. After receiving the offer from the electricity supplier, it is not necessary to sign the contract immediately after receiving the first offer, it is worth waiting for other offers. Consider, compare and only then confirm the choice with your signature ”, says the ESO representative. More so, since there is no need to attack to dictate any personal data: personal code, bank connection codes, etc. If you are not sure if you have been called by an electricity supplier, please call them again, on the website or at the advertised phone number.

According to T. Kavaliauskas, the principle of payment for the service will not change either: customers will have to pay an invoice sent by the provider each month, which will provide a detailed breakdown of the price components.

“We often wonder if another supplier will have to install new cables and new electricity meters. In both cases, the answer is ‘no’, because all electricity suppliers will provide their services using the same infrastructure that has been available until now. and that it will remain the property of ESO ”, highlights T. Kavaliauskas.

When signing a contract with a supplier, it is possible to predict when it will come into force, but this period must be at least 21 days from the date the contract is signed and coincide with the 1st day of the calendar month. This means that if the contract is concluded before November 10, it will not be effective before December 1. Once the contract is signed on November 12, it will not go into effect before January 1.

What Should Consumers Consider When Evaluating Provider Offerings?

Kęstutis Kupšys, Vice President of the Lithuanian Consumer Alliance, says that examples from countries that have previously opened the electricity market to competitive operation show that constant consumer education is necessary in the first place. This requires not only the efforts of independent vendors, but also the willingness of consumers themselves to learn and benefit from innovation.

“In the areas of service provision, the best-informed consumer always wins, therefore, as the procedure changes, which is relevant basically for all Lithuanian residents, the benevolent interest of the stakeholders in the processes and opportunities It’s very important. I would recommend to any electricity consumer who is interested in these changes and the market situation, to read carefully the suppliers’ offers and thus choose the desired conditions or closer to the desired ones ”, advises K. Kupšys.

According to the specialist, the contracts of the providers must clearly establish and understand the terms and conditions of the services offered, terms, detailed information on how much and for what. If the proposed package includes not only the supply of electricity but also the ancillary services to be provided by a third party, its conditions and the prices of the ancillary services should be clearly indicated.

“Don’t be too quick to choose the first plan offered or the most active, but take a closer look at all the available data. Evaluate how much and when you use electricity, and then review as many vendor offers as possible.

When it comes to choosing complex offers or so-called packages, when others are offered together with the electricity supply service, it would be worth evaluating the exact price structure of each of the services. Overly complex and confusing proposals should be treated with caution. For example, in some EU countries, there have been cases since the opening of the market where credit cards have been crushed along with a good supply of electricity and carpet changes have hardly been necessary.

It is also necessary to assess whether the services offered are fixed or indefinite in nature; Generally, fixed-term contracts mean that if they are terminated earlier, they may have to pay a special termination fee ”, emphasizes K. Kupšys.

Reminiscent of the mobile market

T. Kavaliauskas points out that the finally transformed market for household electricity consumers in Lithuania will soon be very similar to the provision of mobile communication services. A reform in this area a few decades ago has finally created one of the most competitive markets for communications services in Europe, where customers have a wide range of options and can easily switch from one unreliable provider to another.

The ESO representative says that electricity consumers cannot be afraid of a poorly chosen supplier either, as they will also be provided with the conditions to easily switch service providers. The conditions for terminating the contract must be discussed in the contract signed with the supplier. And when you terminate a contract, choosing another provider will be as quick and easy as choosing the first one.

“There are all kinds of situations, maybe some priorities are important to you now, and in a few years they will change or a new supplier will come on the market, offering even more attractive conditions that better meet their needs. Then, like now, consumers will have the opportunity to easily and quickly replace an existing supplier with a new one. Electricity becomes a commodity and is serviced by a seller or electricity supplier. Therefore, only the consumer decides when, from which seller and which product to buy “, emphasizes T. Kavaliauskas.

All Lithuanian household consumers will have to choose a new electricity supplier, as the current public supplier will gradually reduce its services by 2023. It will come to a complete halt.

Lithuania is committed to abandoning monopoly conditions and creating a competitive electricity market in line with EU policies aimed at ensuring real competition and the benefits it offers to consumers. This requirement was met in 2020. May 7 Legislation adopted by the Seimas, which waives part of the regulation of the price of electricity.

You can find more information about changes and answers to frequently asked questions on the website www.pasirinkitetiekeja.lt or by calling +37062655565.