The supplier of last resort for electricity is an electricity supplier who, under certain circumstances, does not have the right to refuse the consumer to conclude a contract for the supply of electricity for a limited period of time. In particular, he is appointed in case of bankruptcy or liquidation of the previous electricity supplier.
GLOBAL HAPPENINGS will tell you what the supplier of last hope of electricity is, how it works and what tariffs.
The electricity supplier of last resort is also appointed for a period of up to 3 years and provides services in the following cases:
- expiration of the license, suspension or cancellation of the license for the supply of electricity to consumers of the previous electricity supplier;
- non-selection by the consumer of the electricity supplier, for example, after the termination of the contract with the previous electricity supplier;
- non-compliance or in case of improper compliance by the electricity supplier with the rules of the market, the rules of the day-ahead market and the intraday market, which made it impossible to supply electricity;
- in other cases stipulated by the rules of the retail market.
The supply of electrical energy by the supplier of “last resort” is carried out for a period that cannot exceed 90 days.
What rates apply?
On December 27, 2022, the National Commission for State Regulation in the Spheres of Energy and Utilities (NEURC) adopted a resolution on setting the tariff for the services of the “last resort” supplier for the first quarter of 2023. The tariff is UAH 517.04/MWh (excluding value added tax).
As GLOBAL HAPPENINGS previously reported, there are about 10 options for increasing electricity tariffs in Ukraine. A possible increase could lead to a double increase in the cost of kWh (from 1.44 to about 2.5-2.7 UAH per kWh). This step will have to be taken, given the significant damage to the energy system due to Russian missile attacks. The option of canceling the preferential tariff for limited consumption is also being considered.
Source: Obozrevatel
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
