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Open electricity market Estonia


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Challenges and Opportunities for Consumers in the open Electricity Market

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Open electricity market Estonia

  1. 1. Riga, March 2014 Tiiu Müürsepp Tartu Consumer Advice and Information Centre, Estonia
  2. 2.  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
  3. 3.  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)
  4. 4.  Contract options are:  Fixed  Combined 50% 50%  Exchange  Green  We have now more than 110 packages
  5. 5.  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
  6. 6.  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
  7. 7.  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.
  8. 8.  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
  9. 9.  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
  10. 10.  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
  11. 11.  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.
  12. 12.  To help the customers to compare,choose and sign the fairest electricity contract we have 3 private webpages , ,  But we don’t have any governmental one
  13. 13.  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
  14. 14.  Only 2% of home customers changed the contract in 2013  The opportunity of electricity sellers to influence consumers with competition is small
  15. 15.  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
  16. 16.  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
  17. 17.  Tiiu Müürsepp  Tartu Consumer Advice and Information Centre  Estonia 