The National Commission on Markets and Competition (NCMC) now has bids that the power companies have presented to customers who want a fixed rate. According to the proposals, using this method to pay for power bills will end up costing customers 30% more than market prices.
There are two other options for paying power bills: using current free market prices or trimmed down version of that where only 20% of power bill costs would be fixed according to market prices and the rest variable. The sector has been offering fixed rates, and it's clear that they are trying to dissuade users from choosing this method. Looks like the power companies are flirting with a legal safeguard that the government created for those who don't want to see their bills fluctuate with swings in the wholesale energy market. At small businesses that use a lot of electricity, the fixed rate would be a compelling option.
But companies want to see the principle of supply and demand at work. It is also important that users learn to adapt their power consumption to become more responsible over time. Still, that requires a transparent market in which customers have access to all the information they need to make good, free choices. It does not look like this will happen. We also need to create better competition within the power sector. Without these conditions, the customer will always be at a disadvantage.
