On 15 December 2011, the Nordic Energy Regulations (NordREG) adopted a recommendation (available here) that requires the provision of one single bill for final electricity customers, putting together electricity supply costs and grid costs. According to the chairman of NordREG Board, Finn Dehlbæk, "One bill instead of two will make life easier for many electricity customers. It also increases the potential for electricity suppliers to compete on equal terms."
One could actually see this development as a step back, as the supplier would be able to offer a single product, and obviously much will depend on the strict observance of the tariffs regulation for network costs, and unbundling rules for not resulting in anti-competitive behaviours.
One could actually see this development as a step back, as the supplier would be able to offer a single product, and obviously much will depend on the strict observance of the tariffs regulation for network costs, and unbundling rules for not resulting in anti-competitive behaviours.
In its press release, NordREG is convinced that a single bill can only reinforce competition in the end-user market. This is also though as an additional tool that contributes to the objective pursued by Nordic Energy Regulators to establish a common Nordic end-user market for electricity by 2015.
Hereafter follows an abstract from the NordREG press release:
Hereafter follows an abstract from the NordREG press release:
"The recommendation from NordREG will mean that the invoice from the supplier in the future must include both the cost of electricity (the energy consumed) and the cost of the electricity grid. It also means that for electricity customers in most cases it will be enough to have contact only with the supplier.With this recommendation, the playing field between electricity suppliers will be more equal. Electricity suppliers will only compete on its own merits and should no longer have the opportunity to take advantage of a close link to a monopoly in order to market themselves in the competitive market.Today, the electricity customers who do not switch suppliers in most cases receive a combined bill that includes both the cost of electricity and the network tariff. While, customers who are active and switch supplier in most cases receive two bills. In general most customers have a negative perception of receiving two bills and therefore choose not to switch suppliers.NordREG recognises that the successful implementation of a mandatory combined billing regime requires development of efficient methods for information exchange, payment systems, tax collection and risk management schemes. These and many other issues will be analysed further by NordREG."
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