Residents will receive lower electricity bills in May: what difference can be expected

“The components of the state-regulated part are the part of the total electricity bill that is usually reviewed twice a year. This time, the electricity distribution operator (ESO) component decreased. The other parts – the service tariff that meets the state’s interests and the additional distribution tariff – remain unchanged,” says Mantas Kavaliauskas, head of product development at Elektrum Lietuva.

According to the expert, users will receive smaller bills in the coming days. Electricity suppliers usually provide them by the 10th day of the month, when they receive data on residents’ electricity consumption for the previous month from ESO.

Reminds what constitutes the final price of electricity

Speaking about the components of the electricity price, M. Kavaliauskas reminds that it consists of two parts – the price paid to an independent supplier and the part regulated by the state. If at least one of the parts changes, the total amount due also changes.

“The price paid to an independent supplier for the supplied electricity may depend on which plan the consumer has chosen – exchange or fixed prices. By opting for a fixed price plan, consumers are more resilient to external factors, since price changes are not determined by the revision of state ingredients, as was the case this month. In the meantime, residents who have chosen the exchange plan and want to effectively manage their electricity costs must follow the dynamics of electricity prices and, taking it into account, plan their energy consumption,” says the head of product development at Elektrum Lietuva.

According to M. Kavaliauskas, the second part of the bill – the components of the state-regulated part – mainly consists of the forwarding fee. It also includes the distribution fee and the service component of public interest.

“These prices are approved by the State Energy Regulatory Council and account for about 40 percent of shared electricity bills. Regardless of the chosen electricity supplier, the state-regulated components are the same for all consumers, and due to the adopted recalculation procedure, they now usually change twice a year,” says M. Kavaliauskas.

He adds that residents can also find discounts or other applicable charges, such as a subscription fee, if the supplier has introduced one, on the electricity bills they receive.