An extraordinary levy of 10 euros per MWh imposed, as of November 1, on the country’s natural gas-fueled power stations has proven detrimental to their level of competitiveness, greatly contributing to the adverse market conditions they face.

The situation has further deteriorated for electricity producers during the first weeks of the new year, as reflected by the level of wholesale electricity prices in Greece, the highest among neighboring EU member states, despite a considerable TTF index drop in natural gas prices.

This extraordinary levy of 10 euros per MWh on natural gas purchased by gas-fueled electricity producers was introduced when gas prices at the TTF index ranged between 120 and 130 euros per MW, representing approximately 8 percent of the TTF. However, as a result of the sharp decline in natural gas prices to levels of between 55 and 60 euros per MWh, this levy has now risen to represent roughly 14 percent of the TTF.

The increased electricity production cost has led to a rise in electricity imports, even if hailing from older, higher-emitting facilities.

In the first twenty days of January, electricity imports ranged between 20 and 40 percent of Greece’s energy mix, well over the 2022 average of just 8 percent.

During this twenty-day period, the cost of wholesale electricity in Greece, averaging 239.98 euros per MWh, was the highest in the EU.