A proposal by LAGIE, the electricity market operator, to impose an upper limit of 8 euros per MWh on the RES-supporting surcharge paid by electricity suppliers is expected to spark a fiery public consultation procedure, staged by the operator, as independent electricity suppliers deem such a level to be too high to allow for fair electricity market conditions and profitable business activity.

Independent electricity supply company officials told energypress that any supplier surcharge price that exceeds 5 euros per MWh prevents the electricity market from operating rationally given the worsening market conditions. Negative developments include the high prices generated for electricity purchases by independent suppliers at last week’s second NOME auction and the high System Marginal Prices (SMP) – representing wholesale prices – anticipated for 2017.

As energypress has previously noted, LAGIE’s proposal will not necessarily be adopted as is, without revisions.

RAE, the Regulatory Authority for Energy, ltimately responsible for making a final decision, will wait for the public consultation procedure to be finalized before deciding at a board meeting scheduled for February 16.

The absence of a surcharge upper limit makes it impossible for electricity supply companies to shape pricing policies as they are constantly faced by the danger of unexpected surcharge fluctuations which affect finances and sustainability.