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Good news at the end of the year: The increase in the price of electricity for households will not be as big as expected! – Topky.sk

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According to him, the Office can state on the basis of completed price procedures that the total increase in households’ electricity costs in 2022 will be about 20% lower than the URSO originally announced in early December 2021, after publishing the impact of the extreme increase in commodity prices.

Igaz clarified that the Office thoroughly analyzed the price proposals of several suppliers in the price procedures, which demanded a substantial increase in prices due to the extreme increase in the price of electricity on the stock exchanges. He noted that in some cases, the proposed prices could increase the cost of electricity for households in 2022 by tens of percent more than the price set by the authorities, which he said he refused to accept.

“The main reason is that the Office managed to significantly reduce the tariff for system operation (TPS) by 33% in the price procedure, which contributed to mitigating the effects of the increase in the price of electricity as a commodity on stock exchanges on the total electricity price. thus, for a large proportion of households, they reach approximately the level of pre-pandemic regulated electricity prices in 2020, “ said ÚRSO chairman Andrej Juris.

Source: Topky / Ján Zemiar

Compared to 2020, some households will save

For the average household living in an apartment, according to him, this will mean a total increase in electricity costs in 2022 compared to 2021 by less than 3 euros per month. Compared to 2020, such a household will even save an average of 19 cents. Households that also use electricity for heating and hot water will increase their electricity costs by about 12 euros per month in 2022.

Igaz added that the specific impact on customers will depend on the amount of electricity consumption, the purpose of electricity use in the household and the price of electricity agreed with the supplier. According to him, ÚRSO also emphasizes that the price decision does not set a fixed price for electricity suppliers, but a maximum price that cannot be exceeded. Each consumer can demand a lower price from his electricity supplier or change it.

Heavy snow and heavy

Source: SITA / Milo Fabian

For 2022, ÚRSO reduced TPS and electricity distribution and transmission costs

The Office for Regulation of Network Industries (ÚRSO) significantly reduced the tariff for system operation (TPS) and reduced the costs of electricity distribution and transmission in order to mitigate the increase in the total price of electricity for Slovak households and entrepreneurs in 2022. ÚRSO spokesman Radoslav Igaz informed about it on Friday. .

He clarified that for next year there will be an overall reduction in regulated network charges (tariff for distribution and transmission of electricity, tariff for system operation and tariff for system services) ranging from 4% for households and low-voltage businesses to more than 23% for large industrial customers of electricity connected to very high voltage. He noted that the network charges regulated by the Office account for more than half of the total price of electricity for households and businesses, the rest being power electricity.

Igaz underlined that TPS is declining significantly for 2022. The key factors are the implementation of the so-called prolongation of support for producers of electricity from renewable energy sources (RES), subsidies from the state budget and reduction of surcharges to support RES due to high purchase prices of electricity. According to him, various factors made it possible to reduce the TPS for electricity customers in Slovakia by almost 8 euros / megawatt-hour (MWh), ie by 33% compared to 2021, to the level of 15.90 euros / MWh.

Good news in conclusion

Source: Getty Images

He pointed out that the permitted revenues from electricity distribution, without the effect of losses, are reduced by the Office’s decision for 2022 by more than 24 million euros, 4.6% compared to 2021, mainly due to the reduction of reasonable profit and the inclusion of part of revenues from supply. reactive energy and power factor exceedances to regulated revenues. On the other hand, the cost of distribution losses increased by more than € 53 million due to the increase in the price of power needed to cover distribution losses.

He underlined that the Office reduced the permitted revenues from electricity transmission, without the effect of losses, by EUR 4.5 million, ie by 3.5% compared to 2021, mainly due to a reduction in reasonable profit and an increase in revenues from cross-border transmissions. On the other hand, the cost of transmission losses increased by more than € 14.5 million due to the increase in the price of power needed to cover transmission losses.

He added that the amount of the tariff for system services (TSS) decreased slightly due to several factors, by 0.2% compared to 2021, to 6.2976 euros / MWh. On the one hand, according to him, the costs of dispatching decreased, and on the other hand, the costs of ancillary services increased, mainly due to rising short-term electricity prices and their impact on the prices of ancillary services.

Igaz added that due to high electricity prices and uncertainty regarding their impact on the availability and costs of ancillary services, the Office asked SEPS, as for increased emphasis in monitoring and evaluating developments in the ancillary services market in Slovakia, in order to ensure safe and reliable operation of the electricity system. .

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