Suppliers announce smaller-than-expected tariff reductions

Electricity suppliers have announced smaller-than-expected tariff reductions for June that do not fully reflect a sharp drop of the TTF gas index and deescalated wholesale electricity prices.

These modest tariffs reductions – announced by electricity suppliers on May 20, based on market rules requiring all suppliers to deliver their respective tariffs for each forthcoming month by the 20th of every preceding month – were attributed to two factors, one being the risk entailed, for suppliers, in this pre-notification requirement, valid until the end of September, at least.

Suppliers also decided against greater price reductions as a result of the government’s decision to announce its latest electricity subsidies package for a two-month period, covering May and June, instead of its customary one-month coverage, which would have been limited to May, in anticipation of the general election’s need for an interim government.

Essentially, suppliers have let the government’s electricity subsidies for June do the work for them.

The incumbent center-right New Democracy party is widely expected to seek a majority through a second round of voting seen taking place between one-and-a-half and two months from now, after yesterday’s general election left it several seats short of an outright victory.

Most electricity suppliers announced tariff reductions for June ranging between 0.005 to 0.01 euros per kWh, compared to May, while some suppliers offered reductions of between 0.02 to 0.03 euros per kWh. These reductions include subsidies that had previously been announced by the energy ministry.