Independent electricity suppliers, pressured by market conditions to renegotiate their mid-voltage tariff levels have, in many cases, already proceeded with mild price increases as a result of particularly low offers made last year in an effort to lure customers.
Mid-voltage tariff offers by independent suppliers, originally well under 60 euros per MWh, are now close to 60 euros per MWh, energypress has been informed.
Independent suppliers have been forced to renegotiate their mid-voltage tariff prices as a result of high bidding at the most recent NOME auction, which boosted purchase prices and drastically reduced profit margins for suppliers.
In addition, the System Marginal Price (SMP), serving as the wholesale price, has remained high, as is also the case in neighboring countries, from where electricity imports would be possible should prices be right.
The announcement of tariff increases has unsettled mid-voltage consumers who, as a result, are expected to seek lower prices from rival suppliers.
The main power utility PPC could benefit from the current situation if its pricing policy remains unchanged.
As for low-voltage tariffs, concerning households and enterprises, suppliers are making concentrated efforts to achieve market share gains and implementing promotional campaigns. PPC’s future moves concerning a 15 percent discount it has offered to punctual customers since the summer of 2016 will be a crucial factor.
It remains to be seen how long the utility can keep incurring losses as a result of its effort to cling on to customers. According to a bailout term, the utility’s electricity market share must contract to less than 50 percent by 2020.