The energy ministry is moving ahead with a windfall earnings recovery mechanism for electricity suppliers in an effort to counter retailer pricing inaccuracies resulting from fluctuating wholesale electricity prices.
Electricity retailers are required to set their prices each month, by the 20th of the preceding month.
Contrary to August, a month for which suppliers set retail electricity prices that underestimated wholesale electricity price levels, supplier prices set for September overestimated wholesale electricity price levels. As a result, suppliers earned excessive amounts last month. .
The new recovery mechanism will be designed to retrieve excess earnings resulting from such retail pricing inaccuracies. According to the plan, it will be applied once a year, every November, to calculate a net annual result for all electricity suppliers.
Energy minister Kostas Skrekas yesterday informed that the new mechanism will be come into effect next month.