Latest scheme to calculate electricity costs comes into effect today

The latest government scheme to calculate the price of electricity comes into effect from Tuesday April 1st, a model that eliminates the quarterly power auctions and take into account the average daily price of electricity.

The government says that the price of electricity will be between two and three euros a month cheaper for the average consumer.

For those who do not want to depend on the changes that may occur in the wholesale market there is the option of a fixed annual price. However, such a contract, although stable, will be slightly more expensive and this flat rate will force the consumer to remain with that supplier for a fixed period, similar to the situation with phone companies.

Customers who contract for a fixed rate but then want to switch suppliers will be subject to a penalty.

Power companies have until July to comply with the new scheme and the average consumer is due a rebate of around €40 as the actual cost of electricity in the first quarter of 2014 was lower than the rate established by the government.

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