The addition of a new category of electricity tariffs, with a red colour marking, is proposed by the Regulatory Authority in a proposal that was put to public consultation.
These are flexible tariffs which, as the Authority states, are not linked in any way to fluctuations in the wholesale market, but the supply charge includes a predetermined element, a ’flexible element«, which may vary due to elements not determined by the supplier, such as for example consumption.
Under the current framework, three categories of tariffs are available on the market: blue (fixed), variable (yellow and green, a special category with advance price notification on the 1st of each month) and dynamic (orange, for consumers with “smart” meters).
The reason for the introduction of the new category was Protergia's “Picasso” tariff, which provides for a fixed flat rate for energy and regulated charges (networks, etc.) depending on the level of consumption.
According to RAEAY, indicative flexible tariffs may include:
(a) tiered pricing per consumption level, for example a fixed fixed fixed supply charge (EUR/day or EUR/month) and/or a fixed supply price (EUR/kWh) per consumption tier, throughout the duration of the Supply Contract,
(b) a fixed fixed supply charge (EUR/day or EUR/month) and/or a fixed supply price (EUR/kWh), per six months of the annual term of the Supply Contract,
(c) a fixed fixed supply charge (EUR/day or EUR/month) and/or a fixed supply price (EUR/kWh) per consumption tier and a fixed supply charge (EUR/day or EUR/month) and/or a fixed supply price (EUR/kWh) for off-tier consumption throughout the duration of the Supply Agreement.
The main features of flexible tariffs are:
-The minimum duration of the Supply Contract for the Flexible Products is twelve months.
-The charging of an early withdrawal clause from the Supply Agreement is allowed. In this case, the clause shall be pro-rated and reduced in proportion to the cost to the Supplier of the customer's early withdrawal.
-Flexible tariffs may offer discounts. The amount of the discount, the condition for its activation and the method of its calculation are set out in detail in the Specific Conditions of the Supply Contract. In the case of a consistency discount, it shall also be applied to the customer's final bill.
The flexible element of the tariff may also include a price differentiation due to consumption during off-peak hours.
