How we choose the cheapest electricity: The pitfalls in the “fine print” of contracts

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The changes in the retail electricity market – The tricks of the energy providers

“Consumers should be aware that from 1 August to 31 July 2023, there have been key changes in the retail market currentPanagiotis Georgiadis, representative of the Consumer Institute, Neo INKA, told ERT.

The changes are as follows:

  • The monthly fixed charge cannot exceed 5 euros
  • Wholesale discounts are prohibited
  • The readjustment clause has been suspended for 12 months, which means that consumers have the option to switch electricity providers at no charge. However, Mr. Georgiadis appeals to consumers to read the “fine print” in the contracts they sign.

What consumers should pay attention to when choosing an energy supplier

In addition, the said representative of the Consumer Institute draws everyone’s attention, so that when concluding a contract, the electricity provider does not “baptize” the state subsidy as a discount, thereby attracting the customer.

There has also been talk about the price of the asset, that many providers have passed the ceiling of 5 euros and the cost has reached up to 8. This practice is considered illegal and is subject to the Consumer Protection Act. The consumer in this case can proceed with a complaint and then the matter will be dealt with by the Competition Commission.

Another trick used by energy providers is low competitive charges but with a high fixed rate, which the consumer may not notice and ultimately have no benefit.

In addition, providers often announce a low down payment, but for a specific period of time and not for the entire 12 month duration of the contract.

According to Mr. Georgiadis, a trap in the choice of the energy provider is some offers, which link the prices of the kilowatt hour to the consumption. As it specifically mentions, if there is a threshold that consumers cross, then they will be charged for the total consumption they did, with the highest fee exceeding that threshold.

Energy providers tend to associate lower pricing with consistent payment, which is not illegal, provided the consumer is not misled.

“Consumers should not be swayed by the big headlines that energy providers put out to attract them”emphasized the representative of the Consumer Institute.

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