REC reviews tariff reform, cheaper electricity may also apply on Saturdays

The Energy Regulatory Commission is analyzing significant changes to the electricity payment model for citizens, with the aim of lowering bills and adapting them to the new conditions of the energy market. Among the options under review is extending the free-tariff period, including the possibility that it could also apply on Saturdays.

In an interview with AIM, KRRE chairman Aco Ristov said that block tariffs were introduced at the height of the energy crisis in 2022, but stressed that since then, the situation in the energy sector has changed significantly.

As he put it, the main goal is for citizens to pay less for the electricity they consume. Ristov believes there is room to review the block tariffs and adapt them to new developments in electricity generation from renewable sources.

According to him, the increase in production from solar and wind power plants is creating new challenges for the system, as most of the electricity is produced during the day, at a time when market prices are often very low and, in some cases, fall to zero.

Preliminary analyses by the KRRE show that between 11:00 and 15:00 there is a surplus of electricity, opening up the possibility for households to be offered cheaper energy during that interval. At the same time, the current concept of the night free tariff could also be reconsidered.

“The most expensive electricity on the market today is between 21:00 and 12:00, and that is when the free tariff is applied in our country. This is economically illogical and shows that we need to adapt to the new market conditions,” Ristov emphasized.

He underlined that the goal is not only to reduce costs for citizens, but also to create more favorable conditions for investment in renewable energy sources. According to him, if the trend of extremely low prices on the stock market during the day continues, this could discourage investors and slow the development of green energy.

Ristov believes the energy sector is in a phase of major transformation and that it will be necessary to change electricity consumption habits so the system can adapt as efficiently as possible to the growth in production from the sun and wind.