Those who consume a lot of electricity and avoid choosing a supplier: higher prices and then the threat of running out of electricity

Renaldas Radvila, head of the Department of Services of the Energy Distribution Operator (ESO), told the program “Monetary Affairs” that of almost 98 thousand. approximately 87% of households in the first stage chose an independent provider. About 12.7 thousand. consumers who had to choose a provider have not yet done so.

Of all households, this is a total of 1.6 million. almost 12% of the households that will have to make their decision in the three stages. you have already selected independent vendors.

No irregularities were identified in the first phase

According to R. Radvila, although at the beginning there were cases in which the suppliers indicated only the price of the electricity supply without regulated part when indicating the price, later this was resolved and the final price was already delivered to the customers.

According to the interlocutor, no major problems were identified in the first phase.

“Perhaps there was another isolated case where there were exceptional situations where very large quantities were declared, which turned customers into first-stage consumers, when in fact they went to the second or third stage after correcting that error. Such changes have been made, but certainly two or three cases out of a total of one hundred thousand clients. In my opinion, we did not have any major violations, and the real effect of how much customers were informed, how they understood and how they chose, will be seen after February 10. Then, when you receive the first invoices from your independent suppliers, where you can also have some doubts and be able to find out ”, said the interlocutor.

If not selected: more expensive warranty supply and disconnection of electricity

Customers who have entered the first stage and have not chosen an independent electricity supplier will be guaranteed a supply from the new year, but it is estimated that this will be 12% more expensive.

The guaranteed supply price is variable and is recalculated monthly based on the average price on the stock market for the previous month and multiplied by a factor of 1.25.

“In fact, we will know the price of the guaranteed supply in early January. Then when will the average exchange price of energy in December be added, plus the 25 percent margin as required by law. In the first days of January we will know the exact price of the guarantee ”, added R. Radvila.

According to him, the law establishes a higher guaranteed supply price to encourage the consumer to participate in the market and choose an independent supplier who offers a better price.

Guaranteed delivery will be provided for up to six months. This means that in the first stage around 12.7 thousand have not chosen a supplier. homes will have electricity in June. If not selected and during this period, electricity will be disconnected as a last resort.

“This is expected to be long enough for the consumer to choose their provider. (…) In fact, I sincerely hope that those customers also choose measures such as power outages, ”Radvila said in the program, adding that the legal requirement stipulates that the guaranteed power supply will be interrupted after six months.

The head of the ESO Service Department recalls that consumers can choose an independent supplier even now, only that the delivery period would not start from the first day of January, but from the first day of February.

“Even among those who today have opted for an independent supply, we have 1.5 thousand, for which the supply will begin from the first day of February. They will have a one-month warranty and will be independent of the provider of your choice as of February 1.

There is a period of three weeks to complete all the paperwork and start the delivery. Basically, the date you need to remember or know is the 10th of the month. If the election is made before that date, the electricity supply or the new supplier contract will take effect from the first day of the following month. If it is before January 10, then February 1, if it is before February 10, then March 1, etc. ”, Explained R. Radvila.

Next year it will affect 730 thousand. homes

The second stage of the liberalization of the electricity market begins already in 2021. It includes residents who consume more than 1,000 kWh per year. These are primarily residents of apartment buildings, as well as owners of smaller or more energy efficient homes.

According to R. Radvila, it is estimated that there are around 730 thousand people in Lithuania. such homes.

According to ESO, a more active electoral period will begin in the summer. Until 2021 on August 1, consumers will receive a notification from the public provider upon entering this stage. if you reach the second stage, you will receive a message from the public provider. Until 2021 before August 31, consumers will have to decide whether to share their electricity consumption data with electricity providers. And until 2021. before December 10, these households must choose an independent provider.

“The public supply to them will be cut off on January 1, 2022, so a decision must be made by then. According to today’s statistics, we already have 60 thousand households that made their choice, that’s about 8 percent. hundred.

The active phase begins according to the legal deadlines in the second half of the year, but customers are already actively choosing and making decisions about independent supply. In principle, the contract can be concluded now, ensuring the supply from January 1, for the future, it is not necessary for the supply to start now ”, says R. Radvila.

It mentions that customers will be informed in person – by email, by regular mail – that they have entered the second stage and must choose an independent provider.

“Likewise, the transfer of data implies that the data of the clients of the second stage will be transferred to the providers that have signed all the contracts, formalized the data protection procedures. As a result, they will be able to submit proposals and contact customers, ”said an ESO representative.

In addition, it will be possible to change the contract with the electricity supplier and choose another supplier at any time. Just read the contract carefully to see if there are additional obligations, such as penalties for early termination of the contract. According to R. Radvila, this is not yet foreseen in the contracts, but it is not known how it will be in the future.

“Today, those contracts that are signed with clients and suppliers do not apply sanctions. So I had to study the terms, this is a 30 day period during which the termination is notified and the contract is terminated. If you have seen a better offer on the market or you are not satisfied with the service, service or anything else from your provider, you can choose and migrate to the new provider.

If we take the analogy as we have it in the telecommunications services market, said annexes or commitments may not arise to terminate the contract, but it is up to the customer and the supplier. Today those obligations are more on the part of the providers, who undertake to supply electricity for a specified time at an agreed price, ”says R. Radvila.

Currently, private electricity consumers in Lithuania are served and offered by eight independent providers: Birštono elektra, EGTO Energija, Elektrum Lietuva, Enefit, Ignitis, Inregnum, Perlas Energija and Vilniaus elektra. “. More information about providers is posted here.

The third stage of the electricity market liberalization will begin in 2022 and will include consumers consuming up to 1000 kWh of electricity per year, housing associations, housing managers and all other consumers.

The liberalization of the electricity market is one of Lithuania’s commitments to the European Union. In Estonia, the electricity supply market was fully liberalized in 2013, in Latvia in 2015, in Sweden in 1996 and in Finland in 1997.