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Gas consumers database is needed to encourage competition

12 June 2020
Gas consumers database is needed to encourage competition

With the help of a data hub, suppliers could analyze the history of consumption and payments of a potential customer and make reasoned decisions - to work with such a consumer or not. Such a step would reduce the risks borne by the new supplier and thus reduce the markup.

 

This is stated in the comments on the website of NGO DIXI GROUP.

“In order to encourage competition in the retail market, a database is also needed for the centralized exchange of information on gas consumers. The best way to consolidate this practice is to amend the law, as previous attempts to implement the data transfer mechanism at the by-law level have been blocked by lawsuits of suppliers,” experts write.

Analysts also note that the government should hold a new full-fledged tender for a supplier of “last resort” to secure commitments to certain market participants to make guaranteed gas supplies in the absence of a supplier.

Another formula mentioned in the context of the memorandum with the IMF is the selection of a temporary guaranteed supplier through a tender.

The constant control and monitoring of suppliers for compliance with standards and requirements for the quality of customer service is equally important.

“In accordance with the requirements of the Law on the Natural Gas Market, the Cabinet of Ministers is obliged to develop and adopt the Procedure for Protection of Vulnerable Consumers, which should include “special measures to protect vulnerable consumers in case of disconnection in critical periods to meet the needs of such consumers,” experts summarize.

We will remind that for change of the supplier of gas, consumers had to refuse services of the current supplier at first. A separate agreement on the termination of the contract was drawn up and signed. Currently, the relevant regulator proposes to abolish these restrictions. The NEPURC offers to change the supplier within 21 days. The regulator is convinced that the adoption and implementation of the proposed changes will promote competition between natural gas suppliers, and thus - will encourage them to improve the quality of service.


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