RAE examining new action to combat high supplier surcharge

RAE, the Regulatory Authority for Energy, is examining a new round of intervention in an effort to combat major electricity market problems caused by inflated electricity supplier surcharges paid into the RES special account maintained by LAGIE, the Electricity Market Operator.

Though a 40-euro per MW upper limit imposed as an initial measure to deal with the higher-than-expected electricity supplier surcharge has produced results, it has not quite managed to prevent high surcharge levels. They are revised weekly.

RAE has requested LAGIE to reexamine a formula applied to determine surcharge levels. Developments are expected within the current week.

The findings are expected to serve as the basis for RAE’s new and revised solution, the objective being to normalize surcharge levels paid by electricity suppliers. The upper limit is expected to be lowered further, while the virtual daily energy supply schedule – not including RES contributions – will also be revised.

These moves are intended to lower the electricity supplier surcharge to a more reasonable level of roughly 7.5 euros per MWh.

The energy ministry is also considering tabling an amendment setting standard upper and lower limits, based on prevailing market prices. Such a move, however, would transform the surcharge into a tax.