[ad_1]
Beautiful promises
The Seimas has decided that the liberalization of the electricity market will take place in three stages. In the first stage, from 2021. January 1 – the choice of the electricity supplier should be made by consumers who consume more electricity, that is, for those who consume more than 5,000. kilowatt hours (kWh), except for vulnerable customers and managers of gardens, garages, apartment buildings, dormitories, associations that purchase electricity for the common needs of community members.
In the second stage, from 2022. January 1 – those who consume more than 1000 kWh per year will choose, in the third stage, from 2023. January 1 – those who consume less than 1000 kWh per year. These consumers are the most numerous: around 52%. or 870 thousand.
Public electricity supply for them will end in the last stage, regardless of the amount of electricity consumed. Regardless of the stages offered, consumers will be able to choose an independent provider at their own discretion and in advance.
“The appearance of suppliers depends on market opportunities. Today, there are four suppliers that can offer electricity to domestic customers. The number of those suppliers is not limited, the licenses are issued by the State Energy Regulatory Authority. Naturally, during this period, with the start of this change, there will be significantly more providers, because it is really a great opportunity for providers to offer various services, plans, to respond flexibly to the market situation. let the number of suppliers grow, “said Minister of Energy Žygimantas Vaičiūnas.
“The experience of banks in other sectors, such as telecommunications, shows that the abandonment of the monopoly and the formation of competitive conditions offer many new solutions to customers. The Lithuanian population clearly felt competition from mobile operators, the change in quality of its services and prices. In accordance with the law, ESO (energy distribution operator) will inform the public, provide the necessary information so that all residents are aware of the changes and choose the most appropriate electricity provider in a timely manner, ” says Mindaugas Keizeris, Director General of ESO.
Not everyone believes
Virgilijus Poderys, president of the Seimas Energy and Sustainable Development Commission, who presented the draft to parliamentarians in the adoption stage, assured that competition, as in the field of telecommunications, would make electricity supply cheaper for consumers. It is true that MP Jurgis Razma questioned that.
“The biggest consumers are, yes, maybe they will get lower prices, because there they will probably develop a lot of competition there.” The relevant companies in Latvia and Estonia already have some consumers in Lithuania.
But the largest and least consuming group of electricity is unlikely to receive electricity at lower prices as a result of this decision. Of course, most of them won’t even try to choose an alternative electricity provider. Given that in general our public electricity seller will be in the most disadvantaged group where not everyone pays for electricity on time, I don’t think there is room for lower prices. It is precisely they who can slightly increase for the most socially vulnerable. But there is no other way out here. Still, under European law, we have to accept that liberalization by 2025, whether we want to or not. Well, we completed it two years earlier, “said Razma.
No Brussels wit our
However, the most important message is that residents who have failed, were unable to choose a provider on time, or have been lost, will pay for services to ESO at the legal price, which will be the energy exchange price of Nord Pool, plus 25%. Annex (prices are provided in the Electricity Law approved by Seimas). Market liberalization is required by an EU directive, but it is around 25%. Nothing is said about those who do not choose a “fine”.
“Information about suppliers is definitely not enough, and you need to know the market well to make the right decision. Therefore, it is socially irresponsible and unfair to punish those who do not choose a supplier at a price a quarter higher. The most correct thing It would be this: if a person does not choose, they stay with the current provider at a price without 25 percent. – “MP Artūras Skardžius” said to “Vakaro žinios”, who, by the way, like 109 other colleagues, voted in favor of this project.
The politician himself claimed to have voted in favor because he had supervised the provision.
“There was no serious debate in the Committee on Economic Affairs and the Committee on Energy and Sustainable Development, therefore, this provision did not remain in the Seimas during the plenary session. I would not have even thought of including an” incentive “measure so obligatory in the law “, assured the parliamentarian.
According to him, allowing people to choose is commendable, as is the fact that monopoly will be replaced by competition, but the elements of coercion are certainly not justified.
“The market needs a gingerbread, not a stick,” emphasized A. Skardžius.
He assures: he will understand even the grandmothers
V. Powers does not hide: the stick principle has been chosen, because there is no doubt: without it, people will not choose other options.
“Even now, home consumers can choose a private provider. But do not choose because of inertia, customs, fear, although there are cheaper plans than those offered by the public provider. Of course, it is difficult for people now, because there is no information , but a week before the liberalization of the market, an active information campaign will begin, which will be clear even for the grandmother “, promised V. Poderys.
According to him, it will be possible to choose even the hourly price of electricity, according to the fluctuations of the stock market. Or it will be possible to choose a fixed price and not have to worry about the price on the stock exchange. There will be times when they will pay more than the stock market, but there will be times when they will pay less.
Commenting on energy expert Vidmantas JANKAUSKAS:
We are the last Baltic states to liberalize the electricity market, and Latvians and Estonians have done so for a long time. And the example of other countries shows that there will be many who offer to supply electricity. Nothing terrible if some people don’t have internet. They will receive offers by mail, they will be found in the mailboxes, they will be received together with the invoices, etc. There are different ways. There will definitely be people who want to make suggestions.
If someone is afraid of big problems arising, they fear unnecessarily. Whoever has the internet will have no problem. But hiring will be as easy as, say, with a telecommunications company, perhaps even over the phone. And if you live in an apartment building, you can choose a completely different provider than your neighbors. For electricity used only in common areas, communities or managers will have to choose a provider.
It is very difficult to say whether a public supplier will supply more expensive or cheaper electricity than a private one, because it cannot be said that it now supplies cheaper or more expensive businesses. Because there are various conditions. You can choose to have a fixed price throughout the year, you can choose to change every month, you can choose to have it every day, depending on the price on the stock exchange. You can choose with or without warranty and so on. Therefore, it is difficult to trace what prices anyone is applying. And it is difficult for the legal entities themselves to understand which option is better, the state supplier is cheaper or more expensive. And as for the additional 25 percent. at the price for those domestic consumers who do not choose a provider … Of course, this is too much. But perhaps an “incentive” is necessary for people to start thinking, choosing.
Politicians say the resulting competition will make electricity cheaper for domestic consumers. This cannot be stated categorically. For example, if you choose a long-term fixed price and the market price will drop, you will lose. And vice versa.
[ad_2]
