PPC prices up 25% since freeze of indexation clause a year ago

Though a suspension of electricity-bill indexation clauses that came into effect last August has offered consumers far greater transparency on charges, tariffs offered by power utility PPC, the dominant retail player, have since risen by 25 percent, if not taking into account subsidies offered as energy-crisis support.

The power utility’s tariffs averaged 34.69 cents per KWh over the past twelve months, but would have averaged 27.77 cents per KWh during the period had the indexation clauses remained active, a survey conducted by energypress has shown.

Last August’s suspension of electricity-bill indexation clauses has resulted in higher-priced electricity tariffs at PPC for seven months, compared to the equivalent months a year earlier.

Also, modest reductions were recorded in February, April, May and July, while a more substantial year-to-year reduction of approximately 5 cents per KWh was recorded in August, 2022, when indexation clauses were first suspended.

The energy ministry recently decided to extend the suspension of electricity-bill indexation clauses until December. The suspension was originally due to end September 30.