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– Changes in the country are implemented in stages. In the first instance, consumers who used more electricity experienced the changes, and in the third stage they will feel them less. And what happens in the second stage?
– The first stage was intended for consumers over 5,000. kWh. The second stage includes 1,000 consumers. up to 5 thousand. kWh per year: if the population consumes between 100 and 400 kWh per month, they must choose a supplier already this year.
– This must be done before December 18. Does a large population enter this stage?
– In Lithuania, there are about 1.6 million. electricity consumers. Approximately 100,000 went to the first stage, about 780,000 to the second, 770,000 to the third. This means that the vast majority of consumers will have to choose an electricity supplier this year and next.
Given the large number of them, the ministry urges residents not to wait until December 18, as providers do not have enough resources to provide quality service to both consumers in a short period of time. The earlier they apply, the more detailed information they will receive.
– Should those in the second stage have already received notifications from the public provider?
– Yes. Those who entered the third stage also received notifications and information was provided in the letters. And as of September 1. Consumers will already receive offers from independent providers through their contacts: phone, email or other means. But if users do not want to share their data, before September 1. you can express your disagreement and then you will not receive notifications from the providers and then they will have to look up the information themselves.
– There are currently 7 electricity providers to choose from. What would be your practical advice on how to choose the right one? In the first stage, users shared their experiences and spent a lot of time writing numbers in tables, entering formulas, comparing what was best.
– It is quite difficult to choose because the providers offer a wide variety of plans. The simplest plan is a fixed price: you just set the price for the year and, without turning your head, pay that fixed price for the entire year.
There are also offers in which the price of electricity is linked to the price of the Nord Pool switchboard and regardless of the supplier. It is quite difficult to predict what that price will be in the future, but these plans can be useful for residents who, for example, consume a lot of electricity at night: charging an electric car, heating a house, etc., because the price of the electricity in the night exchange is much lower than during the day. In this case, it is very beneficial to choose a variable price.
It should also be noted that if fixed contracts are offered, that is, a fixed term, when the consumer is told “he will receive this electricity rate for one year, if he signs a one-year contract.” Then you need to check the conditions to terminate the contract. Are there no additional “penalties” for terminating the contract? If you do not want to be linked to a supplier throughout the year, then it is better to choose a permanent contract; then the provider can change in two weeks.
As of September 1. The price comparison system of the State Energy Regulatory Council (VERT) should be put into operation, which will facilitate updating. With so many of those plans, the ministry is offering residents an option right now for providers to explain everything.
– Are the offers of the suppliers themselves very different and is it a mistake to compare only the price? Perhaps there are other nuances to take into account?
– Many consumers, especially those who were the first to choose an independent electricity supplier, chose to buy green electricity, produced from renewable sources of electricity: wind, solar power plants. The rates for this electricity are quite friendly and can be found on the providers’ websites.
The quality of service is also important: how long the provider will answer the call, receive a response, and how relevant it will be. This is especially important in the beginning, when you still need to catch up.
– Or is it still worth waiting for more competition and better offers? Are we likely to have more provider options during the year?
– The Lithuanian market is not as big as in other countries. Another provider may appear, but not many. The first stage of liberalization has already taken place and its market share was the most attractive to suppliers: fewer consumers, higher consumption, higher income.
It is also necessary to obtain a license from the Board of Regulators before starting operations, to hire staff, to prepare accounting and IT systems, a lot of preparatory work, so it is unlikely that a new supplier will emerge so soon.
– A significant number of first-stage consumers have been waiting a long time for a better solution. But it turned out that those who didn’t wait long and chose a provider won right away. Is it true that those who took the opportunity to set a lower price for electricity and thus saved?
– The price of electricity also includes the price formed in the Nord Pool energy exchange. Because trading is by the hour, the price of electricity changes hourly, depending on consumption, supply, weather conditions, and pollution permits.
We can see that this year a really high price of electricity has formed on the stock market, which is not affected by the ministry, the Seimas, the independent providers or the regulator. The prices of pollution permits have just risen, the demand, there are many circumstances. Last year, prices were much lower, so consumers won.
– What would your predictions be? Maybe those who choose a fixed current price win now?
– It is difficult to predict price changes. Talk to independent providers as there are also those who offer a fixed price per quarter. If there are strong winds, for example, there will be a glut of electricity on the market and prices can really go down. Those prices depend on factors beyond our control.
– A frequent supplier mentions that when choosing a supplier, people misjudge their needs and do not choose the best offers. How am I to understand this?
– It is necessary to observe how much a resident consumes, be it 100 kWh or 500 kWh, consumed during the night or during the day. It is based on the consumption profile of the suppliers and calculates it. Currently, there is an IT tool that users can use: www.pasirinkitetiekeja.lt. By adding your usage data to your usage profile, you can get personalized offers from independent vendors who provide the best plan for the consumer.
– What if consumers do not choose an independent provider before the deadline? Do you really pay much more then?
– This is provided by law. After January 1st. The contract with the public provider will expire, in which case those who are obliged to choose an independent provider but will not choose will move to a guaranteed supply provided by the Energy Distribution Operator (ESO).
There, the price of electricity is tied to last month’s share price, but multiplied by another 1.25 percent. coefficient, which means that the price of electricity will certainly be much higher, independent providers do not apply such high margins. The warranty supply can be used for up to 6 months, after which ESO may terminate this contract.
– How else can people prepare for change? Is it enough to sign a contract, or will the cables and meters still be replaced?
– Just sign the contract. The entire infrastructure will remain under the control of ESO and the transmission system operator, who do not have the right to participate in supply activities. No technical improvements or changes will be required for residents.
– Will independent providers be controlled or supervised?
– Both now and in the future, its activities are supervised by VERT and the State Service for the Protection of Consumer Rights (SCRPA). This control is particularly acute during the liberalization stages. If residents see that the rates are not established correctly in the contracts, there are certain violations, they have qualitative problems, they can go to VERT and it will investigate the complaint or dispute. However, before contacting VERT, it is necessary to contact ESO or an independent provider and, if they receive conclusions from them, if they are not satisfied, contact VERT.
– In what ways would you recommend signing contracts with suppliers? This is especially true for older people who don’t use a computer.
– It is possible to communicate by phone, but in any case the contract must be signed either with a secure electronic signature or by hand. In no case may your personal data be disclosed by telephone, this data must be kept by independent providers if you are connected to the ESO database.
The contract should be signed only after reading all the conditions. Those who cannot sign the contract by themselves, can authorize their relatives, neighbors, friends – notarial certification is not required, it is enough to certify with my signature: “I authorize this or that person to sign the contract for me”.
