Electricity retailers expected to keep March prices unchanged

The country’s retail electricity suppliers are expected to keep their nominal tariffs for March unchanged, or edge them up marginally, on Monday, when their price announcements for next month are due, based on a recent market rule requiring power retailers to announce every forthcoming month’s price levels by the 20th of each preceding month.

According to sources, the country’s electricity suppliers are expected to set March prices at a level of around 0.20 euros per KWh, roughly the level they were at in February.

Even though wholesale electricity prices have fallen this month, some electricity retailers may choose to wait until next month to correct their prices as their February offers undercut levels permitted by prevailing market conditions, sources noted.

As things stand, the retail electricity market appears to be entering a period of price stability. Barring any unforeseen circumstances, price levels in March and April are likely to remain stable, which does not mean the energy crisis has been tamed.

State subsidies for retail electricity are expected to remain low in March, at a level of roughly 0.04 euros per KWh, meaning consumers will be responsible for covering tariffs at levels of 0.16 to 0.17 euros per KWh, the government’s goal.

At such levels, budget support will not be needed to aid the government’s electricity subsidy effort.