The wholesale electricity market’s subdued day-ahead market prices, averaging 109.5 euros per MWh in the first eleven days of December, below the November average and well below predictions of levels between 120 and 122 euros per MWh, appear set to result in lower retail electricity prices in January, 2024, when energy crisis measures will be lifted, compared to levels in January this year.

Assuming no dramatic changes take place in day-ahead market prices during the rest of the month, power utility PPC’s basic tariff rate for January is expected to be set at approximately 14 cents per KWh for monthly consumption levels of up to 500 KWh, and 15.4 cents per KWh for consumption over 500 KWh.

Last January, PPC’s respective rates were 15.9 and 22.1 cents per KWh, following considerable subsidy support for all consumers. Universal electricity subsidies, introduced as a support measure during the energy crisis, will be terminated as of January 1.

Though there are no indications of conditions that could prompt a sharp rise in international wholesale electricity prices by the end of the month, a worst-case scenario lifting the wholesale average to 120 euros per MWh would still not suffice to push PPC’s basic retail tariff above 15.7 cents per KWh for monthly consumption up to 500 KWh and 16.7 cents per KWh for monthly consumption over 500 KWh.

Low-income households relying on electricity for heating should expect tariffs of 11 cents per KWh, once a social support package has been factored in.

Besides the favorable wholesale market conditions, the Greek electricity market’s new system, to offer four types of tariffs as of the new year, appears to have already triggered intense competition.