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Electricity: consumers are switching to cheaper suppliers

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Electricity: consumers are switching to cheaper suppliers

Consumers Current seems to be a fast learning provider switching model that informally introduced MINISTRY removal of all restrictions on movement with a double intervention in the form of suspension of the adjustment clause and announcement by suppliers ten days before billing for the next month.

Although it is too early to draw final conclusions, as August is not an exemplary month due to the summer holidays, the upward trend in consumer movement is clear, especially during the week between the September tariff notice, on the 20th of the month.

government subsidies The 63.9 euros/MWh for September consumption created a supply market price range of 2 cents to 16.1 cents per kilowatt hour, which consumers seem to be enjoying as they can benefit up to 10 minutes or more by switching suppliers /kWh. .

The flow of traffic naturally moves from expensive providers to cheap ones, and companies with very low commissions are already receiving an impressive number of applications from new customers. Between Aug. 21 and Aug. 29, a small industry company with low pay per kilowatt-hour achieved a 35% increase in its customer base in September compared to the same week last year, with the number of applications increasing day by day.

There are clear signs of increasing customer traffic to all low-fee companies, with the private sector expected in September and a reversal of the PPC customer flight trend that has been observed for almost the entire duration of the energy crisis. These market expectations are based on the fact that PPC gave the highest charge per kilowatt hour for September (14.9 and 16.1 cents per kilowatt hour), although there are also moderate estimates that consumers are not so easily leave their main supplier.

As for whether the increased mobility, which is currently recorded as a trend, will take hold, the market is reacting rather negatively. In his assessment, it is not easy for a consumer to change supplier every month, even if he does so for a certain period of time, and that, in the end, those who continue to move will be poor payers.

For more confident conclusions, the market is waiting for September to pass, the month when consumers return to their normal lives after the summer holidays. In the medium term, much will be determined by the course of prices, which are still fluctuating at astronomical levels. On the Greek market, the wholesale price of electricity today fell to 671 euros/MWh from 697 euros yesterday, with a maximum price of 936 euros and a minimum of 387 euros.

In France, the cost of a megawatt-hour today has reached 734 euros, in Italy – 740, and in Germany – 660 euros.

Author: Chris Liangou

Source: Kathimerini

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