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In total, some 98 thousand people entered the first stage of liberalization of the electricity market. homes.
According to Renaldas Radvila, Director of the Department of Services 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 turning point came in November, when the number of objects that chose an independent electricity supplier per month reached almost 60,000.
“In September, when suppliers started offering individual offers to customers, contracts were concluded with independent suppliers for more than twenty thousand 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 latest clients to enter Phase I, we began monitoring their increased 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 data from the first stage, “says R. Radvila.
December 21 According to the data, the total number of objects in the house that have chosen an independent supplier amounts to more than 194 thousand. Of these, the participants in 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
In reviewing the first stage of the electricity market liberalization, R. Radvila also welcomed the largest number of independent providers in the market.
“At the beginning, four companies had announced their independent electricity supply activities, and already in the autumn, three more joined their ranks. We are satisfied with this activity of the suppliers, which we consider as confidence in the process of liberalization of the market and the participants in this process, ”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.
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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
R. Radvila recalls that those participants in the first stage who have 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 provider 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 of signing the contract 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 electricity will flow from the new electricity supplier starting on February 1.
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Next year, the change expects more than 700 thousand. consumers
The amendments to the Electricity Law approved by the Seimas in the spring of this year made it possible to open up the Lithuanian electricity market to competition. In this way, our country has joined the majority of the European Union countries, 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 socially vulnerable and state-funded residents, as well as apartment buildings, garden communities, home managers, and all other remaining users.
You can find out more about the ongoing liberalization of the electricity supply market by visiting www.pasirinkitetiekeja.lt or by calling 8626555 65.
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