Energy minister Thodoris Skylakakis plans to announce, on November 1, details of imminent energy-cost measures intended to subdue retail electricity prices by intensifying competition through a single variable-tariff formula for all suppliers, who will remain free to set profit margins in accordance with their pricing policies, while also offering selective subsidy support to low-income households.

The single variable-tariff formula for all suppliers is also intended to offer consumers greater clarity by improving their price-comparing ability.

The ministry, expected to submit to parliament an amendment for the single variable-tariff formula any day now, believes its package of new measures, planned to be implemented January 1 in place of energy-crisis measures that included universal electricity subsidies and a freeze on indexation clauses, will help contain energy costs, despite the reactivation of indexation clauses and the widening Middle East conflict.

According to the plan, all electricity consumers will be automatically transferred to the new single variable tariff as of January 1, for 12 months, unless they opt, prior to this date, for any other supply deals offered by suppliers.

Electricity suppliers, convinced the single variable-tariff formula will not enable them to mitigate risk and also breach EU market rules, are already calling for changes to the plan.

In response, the ministry has noted suppliers will be free to set profit margin levels as they please. It has also pointed to a recent EU report highlighting the need for greater transparency in the Greek energy market.

Next Wednesday’s announcements by the energy minister will also include details on a new debt-flagging system designed to contain the high level of unpaid receivables in the country’s electricity market. The minister’s package of measures is also expected to contain an action plan addressing electricity theft.