Four electricity price-reducing scenarios, EU decision pivotal

The government is considering four alternatives for its strategy to reduce electricity bill costs, but any decisions will be delayed until the European Commission has reached decisions at an EU level next month.

Prime Minister Kyriakos Mitsotakis has noted measures will be taken in Greece if the EU does not implement a price ceiling on natural gas at the Dutch TTF exchange.

Though the government is aiming for a drastic reduction in electricity costs, to levels as low as pre-crisis prices, the measures to be implemented will need to take into account the country’s fiscal ability.

One of the four price-reducing strategies being looked at entails setting a maximum payment price, per MWh, for electricity producers, who would be compensated for any price differences through the budget.

Another measure involves setting different remuneration limits for the various electricity generation technologies (natural gas, lignite, renewables and hydropower).

A third consideration involves a combination of price ceilings and subsidies, while a fourth would significantly increase subsidies already being offered for electricity bills.