The energy ministry, preparing action to combat a surge in bad debt faced by electricity suppliers as a result of roving customers who are switching suppliers and escaping from unsettled electricity bills, has commissioned RAAEY, the Regulatory Authority for Waste, Energy and Water, to prepare a relevant study leading to revisions.

RAAEY plans to host a meeting today with energy ministry officials and representatives of all the country’s electricity suppliers ahead of the planned revisions.

The ministry intends to revise Article 42 of the Supply Code, which would stop strategic defaulters from fleeing to new suppliers if they have not covered outstanding energy bills.

Under current market rules, consumers with unpaid electricity bills remain free to switch suppliers. Resulting bad debt is estimated to have reached at least 300 million euros and may have even exceed 400 million euros.

Bad debt recorded by electricity suppliers has risen to 3 percent of their revenues, up from 1 percent not too long ago.

Also, financial losses resulting from the failure of most consumers to pay for a universal electricity supply service offered, by law, to blacklisted customers by the top five suppliers, based on market share, is distorting the market. The service’s participating suppliers are consequently forced to pass on losses incurred to punctual customers, market officials have noted.

The ministry is planning revisions for both Article 42 of the Supply Code and the universal electricity supply service.

Energy company NRG’s general manager Anastasios Lostarakos recently highlighted the need for action, in the form of legislative revisions, to tackle irregularities, significantly burdening suppliers. The longer the issue remains unaddressed, the deeper the financial hole for suppliers, he noted.