After New Year’s, new electricity pricing plans are set to roll out, leaving consumers grappling with the intricacies of these color-coded billing systems. Consumers express frustration, unable to find a clear answer to the fundamental question of whether electricity will be cheaper or costlier come the New Year.
From New Year’s, two primary pricing plans will emerge. The fluctuating ‘green’ plan, automatically applied to those who don’t select an alternative, and the ‘blue’ plan featuring a fixed rate.
Two additional billing options complete the spectrum of consumer choices: the ‘yellow,’ a variable plan with end-of-month settlements, and the ‘orange,’ contingent on having a smart meter.
Despite the ongoing reversal of meters for the new billing plans, most consumers seem undecided on which color scheme to opt for.
“I’ll stick to the plan I’m on. Even if I explore another, initially, a small bill will arrive, followed by a colossal one,” voiced one consumer.
Consumers will have the flexibility to switch billing types at any time except for the fixed ‘blue’ plan.
With the ‘green’ plan, the Ministry of Energy promises consumers will be informed of the cheapest provider. Each month’s price will be disclosed by providers on their websites and by the Energy Regulatory Authority.
Subsidies will continue solely for eligible recipients of the social household tariff. Another category for families with four or more children will be introduced.
Institute for Consumer Protection (INKA) advice to consumers includes:
– Caution against additional charges if opting for paper billing.
– Consumers are advised to consider the loyalty discounts offered by providers.
– They are urged not to be swayed by significant initial offers that might only apply for the first month.
– Transparency on fluctuating prices and comparison with competitors is encouraged through regulatory and consumer websites.