Ministry seeking extensions to energy crisis measures

The energy ministry is seeking extensions to two energy-crisis protection measures, namely a wholesale price cap on electricity, expiring June 1, and an interruption of indexation clauses concerning retail tariffs, set to expire a month later, on July 1.

Although markets have calmed down and deescalated considerably, the ministry believes these extraordinary measures must be maintained as a new spike in energy prices over the coming months cannot be ruled out.

The crisis has eased, at present, but is not over, energy minister Kostas Skrekas has warned, while pointing out that the summer period, when European gas storage facilities are planned to be refilled, will be crucial.

Despite the energy ministry’s concerns, market players as a whole, perceiving energy markets as normalized, are generally anticipating the withdrawal of both extraordinary measures by the existing expiry dates, energy production and supply company representatives made clear at the recent Power & Gas Forum.

These measures are affecting competition and increasing production and supply costs, the market players agreed at the forum.

An extension of the wholesale price cap by the energy ministry will require the approval of the European Commission, which had approved the measure’s implementation.