Subsidy discrepancies found among electricity suppliers

An inspection by RAE, the Regulatory Authority for Energy, of electricity subsidies received by approximately four million consumers has found an inconsistency in the levels offered by suppliers, based on January’s subsidy rates offered by the state.

Some suppliers have offered consumers subsidies in excess of amounts they were entitled to while other suppliers have passed on smaller amounts, the RAE check has determined.

Though these discrepancies are expected to be corrected by suppliers in ensuing electricity bills, they do highlight a market in distress and unprepared for the government’s termination of a universal subsidy program as of January, limiting subsidy support to primary places of residence in cases of multiple property ownership.

Suppliers are criticizing the energy ministry for sloppiness in its planning of the subsidy support measures as well as payment delays impacting their cash flow and ability to function.

Energy minister Kostas Skrekas is tomorrow expected to announce the details of the government’s energy subsidies package for February. The RAE inspection has highlighted the need for clearer instructions to suppliers.

State energy subsidies for February are expected to be lower than those offered for January, given a slight decrease in the average wholesale electricity price last month, down to 227.30 euros per MWh from 235.38 euros per MWh in December.

RAE has received over 3,000 complaints by consumers in recent times concerning issues such as overcharging, lack of billing transparency, and wholesale price-related clauses in bills.