The retail electricity market’s future shape very much depends on regulatory decisions and energy market policies that could be implemented, which, if unfavorable, could result in a greatly reduced number of suppliers, authorities have warned.
Suppliers are currently struggling as a result of cash flow issues prompted by delayed consumer payments and the pressure of meeting regulatory fee payments to operators.
Suppliers typically require capital amounts of between 60 and 70 million euros to purchase wholesale energy quantities and cover regulatory costs before receiving payments from consumers.
In comments offered at the recent Power and Gas Forum organized by energypress, Pantelis Biskas, professor at the Aristotle University of Thessaloniki, underlined the electricity market’s adverse conditions, brought about by the energy crisis and exacerbated by Russia’s war on Ukraine.
These adverse conditions are seriously affecting supplier cash flows and could lead to a major contraction of retail electricity suppliers, depending on upcoming policies, the professor noted.