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According to the press release, a total of about 98 thousand people entered the first stage of liberalization of the electricity market. homes.
According to Renaldo Radvila, Director of the Services Division of the Energy Distribution Operator (ESO), the summarized results of the first stage are optimistic and show that the active public information released by ESO in May gave a positive result. True, he added that the tipping point came in November, when the number of objects selecting an independent electricity supplier per month reached almost 60,000.
“In September, when suppliers were just beginning to offer individual offers to customers, contracts were concluded with independent suppliers for more than 20,000 objects. It is true that it has been observed that at this time the electricity supplier was chosen more often by the consumers of the later stages than by the participants of the first stage who had to do so.
As for the last clients of Phase I, we began to monitor their highest activity in November. Later, more than 25 thousand independent suppliers were selected. customers. However, the last weeks and days until December 10 were the most intense. The huge ‘last minute’ customer flows have created challenges for providers to quickly process all the final first stage data, “says R. Radvila.
December 21 According to the data, the total number of household objects that have been chosen by an independent provider amounts to more than 194 thousand. Of these, the participants of the first stage total more than 85 thousand, and the remaining stages, more than 109 thousand.
Compared with November, the number of objects selected as an independent supplier in December increased by more than 80 thousand.
Part of the price will be regulated by the market
When reviewing the first stage of the liberalization of the electricity market, R. Radvila pointed out that the number of independent suppliers has increased.
“At the beginning, four companies announced independent power supply activities, and in the autumn three more joined their ranks,” says R. Radvila.
Currently, private electricity consumers in Lithuania are served and offered by seven independent providers: Birštono Elektra, EGTO Energija, Elektrum Lietuva, Enefit, Ignitis, Inregnum and Perlas Energija.
The biggest change in the liberalization of the electricity market will be the transition from monopoly service to market conditions: real competition from independent providers and the fact that from now on about 40%. Final electricity prices will be determined by the price formed in the Nord Pool energy exchange. Until now, the price of electricity has been recalculated and set by the State Energy Regulatory Authority (VERT) for all private electricity consumers at least once a year.
When consumers choose their electricity supplier, VERT will regulate only about 50-60 percent. prices per kilowatt hour of electricity.
For those who have not chosen a provider, it is a temporary solution
Mr. Radvila recalled that those participants in the first phase who had not chosen an independent electricity supplier, as of January 1. Electricity will be supplied to the object owned by the consumer in accordance with the guarantee supply service.
The electricity supply component of the guaranteed supply will change every month as it will be determined on the basis of last month’s Nordpool energy exchange price plus the statutory 25%. surcharge. Therefore, the guaranteed supply consumer will pay a different price for electricity each month, and the guaranteed supply itself will have a limited duration, up to 6 months. These aspects encourage consumers to choose an independent and market-based electricity supplier.
ESO also draws residents’ attention to the fact that first stage change residents who have not chosen an independent supplier do not need to request or sign a contract with ESO for a guaranteed supply; this service will be activated automatically.
In addition, it is important to note that by signing a contract with an independent provider, it is possible to predict when it will come into effect, but this period will be at least 21 days from the date the contract is signed and will coincide with the 1st day of the calendar month . This means that if the contract was signed before December 10, it will not take effect before January 1. If the contract is signed after December 10, the contract will go into effect and the electricity will flow from the new electricity supplier as of February 1.
Next year, the change expects more than 700 thousand. consumers
The amendments to the Electricity Law approved by Seimas in the spring of this year opened the Lithuanian electricity market to competition. In this way, our country has joined the majority of countries in the European Union, whose citizens can choose the most suitable electricity supplier for them. However, among the Baltic states, Lithuania was the last to make the decision to allow the population to choose their own electricity supplier: Estonia did so in 2013 and Latvia in 2015.
The opening of the electricity market to competition in Lithuania is carried out consistently, in three stages and will last until 2023. The second stage will start next year, when the decision on the independent electricity supplier will be made by those consumers who consume 1000 -5000 kWh per year. These are primarily residents of apartment buildings, as well as owners of smaller or more energy efficient homes. The total number in the country is more than 700 thousand.
In the third year of the reform, in 2022, households with an annual electricity consumption of less than 1,000 kWh will be invited to choose a supplier. This group also includes state-funded and socially vulnerable residents, as well as apartment buildings, garden communities, home managers, and all other remaining users.
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