“We want to avoid the” neck of the bottle “effect when in 2021. by the end of the year, a large number of consumers who have not chosen a supplier will accumulate. Consumers are upset and there is a possibility that they will not choose in time, “said Minister of Energy Dainius Kreivys at the Government meeting.
In the second stage of electricity market liberalization, the independent supplier is chosen by those consumers who consume from 1 to 5 thousand. kWh of electricity (average 83-416 kWh per month).
October 1 According to the data, 256.5 thousand selected the supplier. consumers involved in the second stage of liberalization. A total of 778 thousand people are participating in this stage. electricity consumers.
Photo by 123RF.com/Electrical switch
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If consumers before December 18. they will not be able to choose a supplier, they will be supplied with electricity at the market price. It is projected to be up to 50 percent. bigger. Extending the liberalization deadline would keep electricity prices regulated for at least another six months and grow by 21%.
The new procedure approved by the Government would also affect the population who have already chosen electricity suppliers. These will be able to choose from several options. One alternative is also to postpone the start of the contract with the electricity supplier, if the supplier offers such an option.
Photo by Sigismund Gedvila / 15min / Dainius Kreivys
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The consumer may or may not accept such a supplier’s offer and use the agreed plan as provided for so far, that is, from 1 January.
Suppliers are free to choose whether to offer such an option to the consumer. Such supplier must inform the household consumer in the manner specified in the contract not later than within 15 working days from the date of entry into force of this Law about the postponement of the start of the term for performance of the electricity purchase and sale and transmission service contract.
If the consumer is not satisfied that the supplier does not offer to postpone the contract, he may terminate the contract and sign it with another independent supplier. Electricity would be supplied to such a consumer from January to July by a public supplier.
D. Kreivys emphasized that this is a right of both parties, but not an obligation.
He added that in discussions with independent electricity suppliers, it was this provision that caused the most disagreement.
The Minister said he understood that this provision might be painful for independent suppliers, but relied on the Constitutional Court’s interpretation that otherwise the principle of equality of all persons before the law would be violated.
“According to lawyers, this provision is mandatory. However, once the discussion has moved to the Seimas committees, a compromise may be sought. We believe that this provision should be in the law, “D. Kreivys said.
VERT must approve electricity prices by the end of November.
Supported the proposal to fix prices, the possibility to buy gas cheaper
The government on Wednesday also approved a proposal to set out an increase in electricity and gas prices over five years.
The Ministry of Energy is proposing amendments to fix the prices of energy resources for consumers. The price of electricity for consumers would increase by 21%, the price for people using gas stoves would rise to 20%, and for those using gas heaters – no more than 30%.
Consumers could pay the difference in installments over five years.
The amendments to the Law on the Energy Resources Market aim to allow regulated heat producers more than 50%. gas purchased off-exchange. Such a requirement now applies to those producers who consume more than 50 gigawatt hours (GWh) of gas per year.
“Adoption of the proposed changes will create conditions for the purchase of gas at lower costs,” explained Minister of Energy D. Kreivys.
The government will also consider a broader compensation regime
The government meeting will also discuss the wider application of heating compensation on Wednesday. It is estimated that on average, district heating could become more expensive by about 30%, and in the capital – as much as 60-70%.
The Ministry of Social Security and Labor (SADM), which initiated the proposal, argues that it would allow to meet the heating needs of the more deprived people of the country.
This compensation mechanism is also supported by the Ministry of Energy. Minister D. Kreivys has mentioned the expansion of the circle of compensations as an alternative, commenting on the proposal of the Social Democratic Party to introduce a preferential 9 per cent. VAT on electricity and gas.
The draft law proposes to increase the amount of state-subsidized income (VRP) used to calculate compensation for heating costs. The project proposes to increase it from € 128 to € 253-384.
If such a procedure were implemented, 15 thousand people would contribute to the households that have received compensations so far. It is estimated that this would cost the state about 16 million. EUR 2 million. more than before.
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