The Introduction of Regulation to the Electricity Market
Published on 29 Jun, 2012 by Michael Vincent / Google+
For as long as anyone can remember, the electricity market in Portugal was dominated by a single supplier. That supplier controlled the monopoly so long that even the authorities were able to regulate it. Any taxes, fees and costs that were associated with electricity, was controlled directly by the government for several decades.
Since Europe has started to regulate the industry, they have also implemented certain protocols that are designed to make the electricity market open and less expensive. This has been introduced by way of the financial assistance agenda that was agreed upon by Portugal and Europe. Now, more electricity companies can compete for business since the industry is no longer subject to tariffs.
Now consumers have more freedom in choosing which electricity provider they would like to use. They can examine all of their options before making a selection. They are no longer being forced to choose from one. In fact, the EDP has taken it upon itself to notify their residential consumers about the end of regulation and the upcoming changes to the free market. Before changing your electricity supplier, it is essential that you know exactly what the new regulations and changes mean.
According to the new regulations, the old tariffs will cease on the following dates:
July 1st, 2012
• ≥ 10.35 kVa
January 1st, 2013
• ≤ 10.35 kVa
Any consumer that does not change their electricity supplier by the dates that were mentioned above will end up paying the old tariffs. The Electric Services Authority or ESA will oversee the regulation and implement quarterly increases.
The tariffs will be completely termed on the following dates:
December 31st, 2014
• ≥ 10.35 kVa
December 31st, 2015
• ≥ 10.35 kVa
Once these deadlines have passed, clients will be automatically directed to the tariffs that are in the open market.
Keep in mind that you are under no obligation to change providers or your tariff tier at this moment. But, now is the time for you to start researching and learning about the options you have available with the other electricity providers.
There are several other providers in the electricity market. They are EGL, EDP Commercial, Endesa, Iberrola, Galp Power and Union Fenosa (in Portugal known as gasNatural fenosa). Make sure you request information on all of their offerings and limitations. Don’t forget to include information on their rates and tariffs. Any fee schedules they may have, you need to examine closely. As with any type of service and product, exercise your right to shop around, before choosing an electricity provider for your needs. Failure to do so may end up costing you a pretty penny and you may find yourself tied to a service that you are not happy with.