RAE increases distribution usage fee, demand fall a factor

A distribution network usage fee included in electricity bills is set for an increase to cost typical households an additional 76 euros or so per year, following a decision reached by RAE, the Regulatory Authority for Energy.

RAE took this decision based on two factors, firstly after opting to offer distribution network operator DEDDIE/HEDNO a regulated revenue increase, its first in many years, which will lift the operator’s required revenue to 981 million euros in 2023 from 744 million euros last year.

The second factor behind the increase is the significant decrease in electricity demand compared to 2019 levels, a decline linked to the pandemic’s lockdown periods as well as the ensuing energy crisis. This decrease in electricity demand has forced RAE to increase the operator’s revenue per KWh.

Ordinary households, using up to 3,750 kWh of electricity per year, can now expect to face annual distribution network usage surcharges totaling 174 euros, up from 98 euros at present, according to calculations conducted by local energy market price-comparison website allazorevma.gr.