Retail Association seeks to postpone the liberalization of electricity market

Retail Network seeks to postpone market liberalization electricity
Liberalization of the electricity market which in principle should be resulted in more favorable conditions for businesses, in the current circumstances where most companies licensed to supply electricity do not have the necessary capacity, will undoubtedly increase the price of electricity, further burdening the financial burden of businesses.

The Retail Network estimates that only one of the electricity suppliers currently has the capacity to serve as a last resort supplier and consequently the lack of alternatives weakens the negotiating position of businesses. Based on the preliminary contacts held by businesses it is estimated for a possible price increase of at least 30% from electricity supply with unregulated tariffs, and taking into account the losses generated by the pandemic, would put businesses in an even more position financially difficult. In this regard, the Retail Network estimates that the increase in electricity prices as a result of market liberalization would outweigh any positive effects envisaged given the lack of alternatives for selecting suitable suppliers who are willing to meet the requirements. of commercial customers.

Consequently, the Retail Network requests from the Energy Regulatory Office to consider all legal possibilities for postponing the deadline for the liberalization of the electricity market foreseen from April 1, 2021, until the circumstances when other suppliers will become functional and able to offer alternatives favorable for electricity supply. The Retail Network also calls on the governing institutions in the office to take appropriate measures to reconsider another extension of the energy market liberalization deadline so as not to harm the private sector in these difficult current conditions derived from the situation with pandemics.