Open electricity market Estonia
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Transcript of Open electricity market Estonia
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Riga, March 2014Tiiu Müürsepp
Tartu Consumer Advice and Information Centre, Estonia
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Were we ready for opening? How to evaluate? Should it be the number of contracts’
contractors for that? If so then Estonia was phenomenal in
January 20% customers didn’t have the electricity contract
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The competition and alternatives are grown There was 7 now 8 big electricity sellers for
the customers in the market (all together 52 electricity sellers in Estonia)
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Contract options are: Fixed Combined 50% 50% Exchange Green
We have now more than 110 packages
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the customer can agree on a price for six months, one year, two years and three years by fixed and combined packages
the contract are open ended by exchanged term
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We have the universal service for that customers who didn’t sign the contract
That people are the customers who use electricity in very small amounts and vulnerable customers
that was the most expensive choice in 2013
Eesti Energia reduced universal service to the most favourable level in January 2014
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electricity sellers' price offers are increasingly associated with the electricity consumption of the customer's household
Therefore is important that the customer should task a personal price offer from sellers
general price lists, newspaper articles, price comparison portals are not the places to look for a personal price offer.
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Electricity contracts can be changed and re-signed at any time, and many of our customers have used this option. The customers only have to consider that if they want their new electricity package or a different contract period to take effect next month, then they should make the necessary changes 21 days before the beginning of the next month
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If customer wants to terminate a term electricity contract early, then she/he has to terminate the current contract in the contract detail view.
Customer has to notify 30 days in advance
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The electricity price influenced by market opening compiles approximately only one third from monthly electricity bill,
remain components: network operator fee, renewable energy fee and tax are not influenced by market opening
Electricity price arised 23,6% on average last year in Estonia
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If electricity seller and network operator company are different then the customer have to pay 2 bills
one for electricity and second for network operator service and
other fees.
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To help the customers to compare,choose and sign the fairest electricity contract we have 3 private webpages www.energiaturg.ee , www.minuelekter.ee , www.elektrihind.ee
But we don’t have any governmental one
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2013 year has shown that the price differences between different packages and periods have minimal effect on customer bill.
The difference on customer electricity bill on the basis of average consumption is less than a euro.
The price winning is little and don’t motivate to change the contract
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Only 2% of home customers changed the contract in 2013
The opportunity of electricity sellers to influence consumers with competition is small
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The electricity market was regional, electricity market wasn’t finally open –
the competition on the electricity market was low and the interest of customers was low for comparision of electricity packages
But our electricity market is in developing It will be developed by opening Estlink2 (opened
07.02.2014), by Nordbalt: Lithuania-Sweden in 2016 and Lithuania-Poland 2015-2016
Also new capacities will be established in the next future
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But the number of customers who changed the electricity seller was continously growing in 2013
that number was lower than European average 10% it was 2% in Estonia on 2013
The number of customers on universal electricity service was continously deminishing, in September 2013 were 24% of customers and in Dezember 2013 only 12% of customers on the universal service