Expert column: Vasyl Honcharuk. Change of supplier: Out-of-date requirements must be canceled

Vasyl Honcharuk, Deputy Chairman of the Board of the Energy Suppliers Association, member of the Board of the Public Union (PU) “Energy Union”. Photo source: Energy Club

The realities of life under martial law exacerbated the problem that existed even before that, but the National Commission for State Regulation of Energy and Public Utilities (NCSREPU) regulator was in no hurry to solve it. The free electricity market has been in place for three years now, and the procedure for changing the electricity supplier is still encumbered with completely unjustified and unnecessary requirements that create challenges for the consumer.

The electricity supply contract can still be concluded only in paper (!) form. This is after two years of the pandemic, when we finally rebuilt our lives in an online format, and there are no more issues that cannot be solved remotely.

It will be necessary to “run” even before reaching the conclusion of the contract. We need to collect a bunch of papers, for some of which will have to go to the Distribution Network Operator (DNO). To switch to a new supplier, it is necessary to take the passport of the distribution point to the DNO and bring it to the supplier in physical form (a copy). In fact, many consumers do not have this appendix to the Electricity Distribution Agreement with the DNO. It is interesting, why the supplier needs a document that has nothing to do with his competences. Actually, as well as a copy of the title to the object (another meaningless item on the list of what the consumer must provide to the new supplier).

Now let’s remember who is responsible for what in the process of electricity supply. DNO is responsible for the connection of the consumer, technical aspects of the reliability of the electricity supply, maintenance of the relevant equipment, metering, the serviceability of the meters and commercial accounting.

The supplier`s role is to ensure the consumer with the necessary amount of electricity at an attractive price and to provide high-quality service. And if the consumer wants to change the supplier under compulsion or of his own free will, should he be exposed to danger in the conditions of martial law, collecting papers? Instead of going through the entire process online, fast, convenient and in accordance with modern realities.

So, it’s time to finally cancel the requirements that are irrelevant and not justified by any market logic. NCSREPU initiated the discussion of changes to the rules, and the Energy Suppliers Association proposes to add a clause to the Retail Electricity Market Rules (REMR) that allows concluding contracts for the electricity supply in electronic form, and re-negotiating contracts previously concluded in paper form in electronic form. In addition, we offer to exclude from the list submitted by the consumer when changing the supplier, the passport of the distribution point, a copy of the document on the ownership of the object, as well as the last bill from the previous supplier.

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