The new electricity tariffs are coming: How the extra charges will be indicated

In order to standardize the pre-contractual information forms and electricity bills of the new tariffs, which will be classified into three categories, depending on whether they vary (and to what extent) based on wholesale electricity price levels, the RAE administration is going to use the Positive Report. To positively promote the companies that will adopt them.

With the publication by RAE of the list of supply companies that apply the new Electricity Tariff Guidelines, the Authority plans to activate the companies to align with its requirements.

It is noted that the «Positive Reference» already followed by RAE and in the disclosure of suppliers who do not have debts to the Operators and is a tool to motivate suppliers to adapt to change. It is noted that supply undertakings are not obliged to follow the Authority's instructions and the RAE hopes that they will do so in order to be viewed positively by the RAE.

Invoice categories

The essential innovation of the changes promoted is the categorisation of invoices, on the basis of any additional charges on competitive rates.

Thus, the first category will include fixed tariffs (i.e. without a clause), the second will include variable tariffs with «fluctuation within limits» and the third will include tariffs without a limit.

In the variable tariffs of the second category the consumption charge will be adjusted to any fluctuations in wholesale electricity prices, as these tariffs include a clause for the adjustment of the commission charge. There will also be a certain cap on the additional surcharge that can be applied.

On the contrary, in the third category, i.e. tariffs with «no limit» fluctuation, there will be no cap on the surcharge which may be caused by fluctuations in wholesale prices.

Uniform forms of forms

The new forms will be standardised, with a view to enhancing transparency, i.e. to enable households and businesses to understand more easily and more fully the terms of an offered scheme, but also the various «components» of the final amount they were asked to pay on their bills.

Also consumers will be able to compare the available contracts of supply companies.

The type of invoice will be included in both the invoice form and the pre-contractual information form.

Consultation and gas guidelines

The RAE will take similar steps for the retail tariffs in the natural gas. The Gas Guidelines are expected to be put out for public consultation towards the end of April or early May.

Information indicates that the Guidelines for retail gas tariffs, which are also being prepared by RAE, are also being prepared, target standardised forms by which consumers are clearly informed of gas supply offers from companies, as long as the consumption bills.