Electricity bills / 60 different tariffs – The headache is growing since February

The complexity of electricity tariffs is becoming even more intense, as the new regime in the market is proving increasingly difficult for the average consumer, who, in addition to accuracy, has to deal with the puzzle of colored tariffs.
The introduction of the new types of tariffs that apply from February, before there is no transition, but at least some familiarity with the new products that appeared in January and are directly linked to the electricity market, creates a new source of concern for households, which it is impossible to decode them. And the government more or less says that consumers do not need to do calculations or know how the prices are derived, but to find the most economical one, which is also not simple, as various parameters have to be taken into account depending on the consumption profile of each household.
Based on the posting of the tariffs by the Regulatory Authority (RAAEF), already for February we count, so far, 60 different tariffs (of each type / color marking) from a total of 13 electricity suppliers. Of course, the government of N.D. communicates that… mostly eu, arguing that variety implies competition. Out of all the tariffs for the current month, 27 belong to the category of floating-yellow ex post tariffs, which means that the announcement of the kilowatt-hour price is made after the fact, and specifically it is stated that the price of February 2024 will be announced either on March or April 2024 (and the January price respectively in February or March), depending on the product and the company.

Difficult conditions

Fixed charges are from zero (minimal cases) to 10 euros/month, with the prevailing price being 5 euros, i.e. on an annual basis they correspond to additional charges of at least 18 to 60 euros. In five products, the activation of a standing payment order and/or e-bill (electronic payment) is set as a condition for fixed payment with a discount, while in one product the existence of an active contract is also required for natural gas.

The supposedly cheapest (green) tariff of all at 11 cents/kWh concerns only the first 100 kilowatt hours of consumption, which is not enough in the heart of winter with increased heating needs, as from 101 kilowatt hours it jumps to 14.65 cents. And here for kilowatt-hours with a discount on ten products, consistent payment of the bill is a condition, and on two the activation of a standing payment order. In addition, the differentiation for the reduced night time is slowly being lost, as only two companies have products that include this possibility for cheaper than the daily kilowatt hour and the majority gives a single price for all consumption.

As for transparency and comparability, these… are sought, as with a Ministerial Decision, ratified by the FSA, new fixed charge products (blue) will be introduced from February, which can now be of six-month, eight-month or twelve-month duration, a fact which makes it more difficult to evaluate invoices of the same type/color but will cover different time periods. At the same time, it is possible to offer “mixed” tariffs, i.e. products with characteristics of floating and fixed tariffs, which remains to be seen how they will be shaped, when they appear, although in any case they refer to a big… confusion.

Additional complexity, minimal comparability

Besides, the very complex nature and difficulty of comparing tariffs is also highlighted by the energy market consulting company VaasaETT. A related analysis (based on January invoices) states that the introduction of various types of invoices with complex formulas, including price adjustment mechanisms, has added additional complexity to the market. He notes that the “special tariff” was introduced to partially offset this burden on consumers, as it allows comparability at the beginning of each month, but offers only partial price predictability for the following months. Additionally, variable tariffs may offer competitive pricing, but vary widely in features and calculation types, providing only minimal comparability.

Along with the other factors, an investigation is made of the annual evolution of the different types of tariffs with the aim of achieving a more complete picture. Among other things, it is reported that the wholesale price forecast shows an upward trend in the second half of the year and leads to notable differences, with the yellow tariff emerging as the cheapest option. Instead, the analysis shows that consumers who chose a fixed blue tariff in January will pay more annually compared to the other alternatives, assuming there is no unexpected rise in wholesale prices.

The overall conclusion is that a thorough comparison of all available options in the market, especially considering their future price evolution, requires understanding many factors, complex calculations, and even estimating wholesale prices, thus adding complexity to the typical consumer. in order to identify the most suitable option for his benefit.