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Electricity exchange raised prices by half, in a year; small electricity providers still can’t issue joint invoices with network companies; and the state lacks an independent price comparison portal.
State neglect: price comparison portal not provided
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For many a year, large companies have had to buy electricity at exchange prices; home users and small companies share their fate since start of this year only. With 12 electricity sellers operating in Estonia, part of these limit themselves to corporate customers, and some sell electricity to clients of own network alone.
It is difficult to choose between sellers, as offers come with varying conditions. With some companies, packages have monthly fees; others ask for advance payment. Some offer price insurance for exchange packages – the insurance, however comes with a fee; as a result the person may end up paying more, at the end of day – more than a one-off price hike would claim.
Consumer gets no overview
According to 220 Energia CEO Marko Allikson, what is also lacking is an independent price comparison portal providing offers by all sellers in real-time. Mr Allikson thinks the portal should be set up by Consumer Protection Board or Competition Authority.
«In Finland and Sweden, all sellers are obligated to provide state comparison-portal with current data on their offers,» explained Mr Allikson. «Unbiased comparison would keep sellers from hiding fixed fees and nuances in price calculation giving a first-glance-impression of a lower price.»
In his opinion, the energiaturg.ee portal, actively involved in Estonian media, is not really fulfilling this function. «Regrettably, energiaturg.ee only shows prices by such sellers who pay them for that; therefore, they lack independency and best offers for home users,» said Mr Allikson.
Mr Allikson added that as Estonian home users may terminate fixed-term contracts any time, they therefore are being offered higher prices. «In Sweden and Finland, a home user with fixed price cannot cancel contract without consequences, as electricity sellers must themselves pay fines upon termination of their bulk purchase contracts,» said Mr Allikson.
The fact remains, however, that due to opening of the market, nearly a half has been added to electricity price since last year when the price was regulated by Competition Authority. Last year, the price was a little over €30; this year’s ten month average amounts to €43.86 for megawatt hour.
Economy ministry cites adverse affect of climate policy on oil shale power industry as another reason the market had to be liberated. As claimed by the ministry: should the CO2 pollution quota prices climb too high, regulated electricity process would do a mighty jump in Estonia. In that case, open market would serve to keep prices under control.
The two separate bills
In reality, however, the pollution quota price has stayed ever so tiny – three-four euros per tonne. Open market price rise has been bigger than impact of pollution quota prices.
Whoever opts for electricity by a company without a transmission network of its own will be receiving two invoices: one for network services, the other for electricity.
To this very day, network companies and electricity sellers have not managed to agree; according to smaller companies, this harms their business, offering an advantage to Eesti Energia and other sellers owning power networks.
«Firstly, all electricity sellers must be provided opportunity to issue single invoices for power and network; this lacking, Eesti Energia especially is having a visible advantage as owner of Elektrilevi. Eesti Energia’s logo on network invoice of a 220 Energia client is incomprehensible and confusing,» commented Mr Allikson.