Until September 10 Small Companies Choose a Free-Market Electricity Supplier
There is huge competition in the free market as there are over 50 suppliers offering different prices, so the price differences between them are unlikely to be very large.
Over 300 thousand micro and small companies need to start buying electricity from the free market and choose their new supplier. The deadline is September 10.
The free electricity market allows transactions to be concluded at freely negotiated prices between producers, electricity traders and consumers. This creates competition and, perhaps, increases the quality of services offered.
Any customer who meets the technical requirements and has no arrears to his current supplier has the right to choose a new licensed electricity trader, with whom to negotiate the price for electricity supply to his business premises.
Currently, all final customers can enter the free electricity market by signing a contract with an electricity trader. Household customers have no obligation but an option to choose an electricity supplier trader, whereas non-household customers are subject to the adopted amendments to the Energy Act in connection with their entry to the free market.
A list of all traders with information about them is published on the EWRC website. Companies can run inquiries to the selected ones, compare offers and choose a trader on the open market. The signing of a contract with the trader can also be done remotely, with an electronic signature.
What is new is that companies can negotiate a price for the supplied electricity, the duration of the contract, as well as its terms. Each company has different consumption, so it is important to negotiate individual terms.
If a small company fails to designate its new electricity supplier by September 10, it will continue to be serviced by the previous one, but under the terms of a new type contract approved by EWRC. This contract may be terminated by the customer at any time when they choose a supplier on the free market.
The standard contract is valid from October 1 this year to June 30, 2021. If the companies have not chosen an electricity supplier after this date, they will be transferred to the so-called supplier of last resort. This option of electricity supply would be more expensive for small businesses.
There is a lot of competition in the free market, as there are over 50 suppliers offering different prices, so the price differences between them are unlikely to be very large. However, it is not only the price that should be the leading factor in choosing a trader but the various clauses in the contract, the experts note.
First of all, you need to compare prices of different offers - and make sure you compare prices that include the same components!
Apart from the price, the terms of the offer and the contract are of great importance. They shall define the services involved, as well as the distribution of the risks (method of invoicing, terms and methods of payment, collateral, fixed/variable price, customer service, etc.).
Last but not least - be interested in the reliability of the supplier, its experience and stability can have a significant impact on your business.
EWRC also sets a price for "obligations to society", which is paid by electricity free market customers additionally. At regulated prices, this complement is included in the price of electricity, therefore, customers do not see it as a separate line on their invoices.