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How do they change the energy supplier in the EU?

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How do they change the energy supplier in the EU?

September will be the month when the first impressions of the new way of pricing per kilowatt-hour will appear. The new way of pricing brought two major changes.

The most basic change is the obligation of providers to publish invoices ten days in advance for the following month. This ensures transparency. However, this does not necessarily guarantee a lower cost per kilowatt-hour. On the contrary, and from its use it still seems that the cost rises, as suppliers, who are less, who are more, add forecasting risk to the accounts, which is high in the current environment of uncertainty.

Suppliers estimate this risk to be €50-100 per MWh. This additional cost may not reach the consumer, at least as long as the government manages to fulfill its obligation to keep prices at 15-17 cents per kilowatt hour, covering any deviations with subsidies, but in the end the state subsidizes from the rise in wholesale prices. market and retail risk.

The second major change is the ability for consumers to change service providers, even on a monthly basis, without financial burden. The measure, which has drawn much ire from vendors who have come up with ingenious ways to keep their customers in line with the threat of fines, is not as easy to implement as it sounds.

DEDDIE with difficulty today, through contractors, fulfills the obligation of a four-month count and customer movements of the order of 50,000-60,000 per month, the suppliers emphasize and predict that the system and therefore the significant possibility of the consumer to change the supplier so often blocks.

DADDY doesn’t foresee such a risk. According to the responsible employees of K, “in most cases, the change of provider is made with an indication of what the new provider should give us. In the event that the readings deviate significantly from normal consumption, then and only then DADDI will proceed to verify the readings.”

Free movement from month to month and from supplier to supplier, even for consumers with outstanding debt, is an issue that worries not only the market, but also the RAE, as it can lead to a surge in arrears and foreclosures, causing financial suffocation and sustainability issues in the company. “The law will not change. The consumer will be free to choose the supplier when he or she decides without any obligation. The market should self-regulate, as it does in all mature European markets.” emphasizes “K” Minister of Environment and Energy Kostas Skrekas.

Free movement of customers is the norm in all European markets, even for consumers with unpaid bills.

• In the Netherlands, for example, a supplier cannot switch an indebted customer before first referring the customer to local government debt support programs.

How free movement is ensured even for consumers with unpaid bills.

• In Sweden, the network operator cannot shut down an intruder without contacting the municipality and giving them the opportunity to intervene.

• In Finland, vendors provide advisory services to households and there is a strong legal framework for debt restructuring that reduces debt by a significant percentage.

• In Germany, providers offer payment plans and consultations to their clients, who may also receive assistance from social services, and then the providers receive temporary or partial payment from these services.

• In the UK, a consumer owed over £500 cannot be transferred to another supplier unless they agree to an existing repayment agreement.

• In Ireland, providers have a debt flagging system for amounts over €200 for households and may refuse such customers.

• In Portugal, a supplier cannot refuse a customer, only a supplier of last resort can prevent a change of supplier due to debt.

• In Spain, suppliers can request guarantees from customers. In case of debt, it remains with the user of the meter, and not with the meter itself. If the consumer moves out of the building, the debt is extended to him wherever he lives.

• In Italy, credit transfers are used for both electricity and natural gas in the transition from services of last resort to the free market.

• In France, in the event of a debt, the supplier can terminate the contract with the consumer, but the debt remains with the consumer. The new supplier will terminate the contract with the previous supplier. The process is overseen by the national energy ombudsman to avoid double billing.

Author: Chris Liangou

Source: Kathimerini

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