Energy suppliers are opposed to the provisions of the Adjustment Clause

The Hellenic Association of Energy Suppliers expresses its opposition to the amendment that provides for the abolition of the adjustment clause in the electricity tariffs, arguing that the electricity market is leading to a deadlock.

The Association focuses its criticism on the regulation that requires suppliers to announce the tariffs they will apply at least one month before their entry into force, noting that in times of crisis it is impossible to predict prices. In particular, it points out the following:

“It is understandable that the Ministry intends to take action in favor of electricity consumers, but it is important to note that the proposed provisions present important issues in their implementation and do not include any risk compensation undertaken by suppliers. which continue to be completely exposed to fluctuations in the “limit value” of the system.

“These provisions are therefore expected to lead to increases in final consumer charges, provided that the risk of gas and electricity markets is included in the tariffs offered.”

Given the unprecedented volatility observed in the last year in the wholesale market prices of gas and, consequently, of electricity, it is now clear to everyone that it is impossible to accurately predict the prices of the wholesale electricity market, even for a period of time. one month, at least one month before the start of the period, with the result that the implementation of the proposed amendment will dramatically increase the uncertainties undertaken by the suppliers and threaten the smooth operation of the market.

The administrative ban on all alternative types of electricity supply tariffs, other than those provided for in the amendment, fixed and rolling fixed, deprives consumers of the opportunity to freely choose the type they want, also taking the corresponding risk in order to enter into the tariff. which they themselves choose.

Especially for companies with which suppliers negotiate the supply tariff bilaterally, these provisions will lead to unnecessary increases in charges that will affect their competitiveness, depriving them of the ability to control their costs through the choice of a dynamic tariff.

In addition, the ability of consumers to switch suppliers, regardless of the possible arrears to previous suppliers, is certainly expected to exacerbate the “energy tourism” phenomenon, leaving energy suppliers completely exposed to repercussions.

The changes proposed by the amendment, which lead to the abolition of all alternative types of electricity supply tariffs, present very serious technical and regulatory issues, and should be further clarified in terms of their implementation. ”