Suppliers face December losses as wholesale power prices rise

The great risk and uncertainty faced by electricity suppliers on a monthly basis as a result of being required to forecast wholesale prices for each forthcoming month in order to calculate and announce their respective retail prices for the one-month period has come to the fore.

At present, the overwhelming majority of electricity retail prices set for December by the country’s suppliers are below wholesale price levels expected for the rest of the month as a result of a price surge over the past few days, meaning suppliers stand to incur losses this month.

Under recently introduced rules, electricity suppliers in Greece are required to announce their respective retail prices for each forthcoming month by the 20th of the preceding month.

Suppliers had also faced unfavorable market conditions in August, when the pricing rule was introduced. However, losses incurred that month were smaller than those expected in December.

Just three electricity suppliers have announced December retail prices that stand a chance of being above the month’s wholesale price levels, now expected to reach levels of about 385 euros per MWh.