A large number of electricity retailers are expected to announce reduced tariffs for August, driven by lower wholesale natural gas costs, down to roughly 25 euros per MWh from recent levels of between 32 and 35 euros per MWh at the TTF index.
The tariff drop, expected to reach as much as 5 percent, including discounts, should result in a retail price range of between 0.07 and 0.175 euros per KWh for consumers.
By law, suppliers need to announce their nominal tariffs – not including subsidies – for every forthcoming month by the 20th of each previous month.
It remains unknown if the energy ministry will offer consumers electricity subsidies for August. If it chooses to do so, the aforementioned price levels will drop even lower.
Meanwhile, the government will soon need to make decisions concerning the electricity market’s transition from subsidy support for consumers to the return of indexation clauses, currently suspended.
According to sources, the energy ministry has yet to make final decisions and is discussing details with RAAEY, the Regulatory Authority for Waste, Energy and Water.
Most electricity suppliers have called for a gradual crossover through maintenance of the current framework for an additional two to three months beyond September 30, when emergency measures are scheduled to end.