Registrations for 5th Power & Gas Forum, March 28, 29, nearing full capacity

Registrations for the upcoming 5th Power & Gas Forum, a highly influential energypress event scheduled for March 28 and 29, in Athens, at the Wyndham Grand Athens Hotel, are nearing full capacity.

Registrations for the event’s few remaining places may be submitted to https://5opowergasforum.eventsadmin.com/Register.

As always, the event will feature the energy ministry’s leadership and prominent speakers. Sponsorship support by energy-sector companies has been strong, highlighting the event’s stature.

The event’s list of confirmed speakers includes: Thodoros Skylakakis, Energy and Environment Minister; Alexandra Sdoukou, Deputy Energy and Environment Minister; Aristotelis Aivaliotis, the Energy and Environment Ministry’s General Secretary of Energy and Natural Resources; Nikos Tsafos, the Greek PM’s special adviser on energy matters; Athanasios Dagoumas, president at RAEEY, the Regulatory Authority for Energy; Dimitris Fourlaris, RAAEY Vice President for the energy sector; Professors Theodoros Tsakiris, Pantelis Kapros, Pantelis Biskas, Stavros Papathanasiou and Antonis Metaxas; Alex Papalexopoulos, president at ECCO International and key designer of the target model; Alexandros Papageorgiou, CEO at the Greek energy exchange; Manos Manousakis, President and CEO at IPTO, the Greek Power Grid Operator; Giannis Margaris, IPTO Vice President; Anastasios Manos, CEO at DEDDIE/HEDNO, the distribution network operator; Giannis Giarentis, President at DAPEEP, the RES market operator; Maria Rita Galli, CEO at DESFA, the gas grid operator; Barbara Morgante, CEO at Enaon; and Aristofanis Stefatos, CEO of EDEYEP, the Hellenic Hydrocarbon Management Company.

Also taking part are: Victor Papaconstantinou, president at ESAI, the Hellenic Association of Independent Power Producers; Konstantinos Xifaras, CEO of DEPA Commercial; Antonis Kontoleon, president at EVIKEN, the Association of Industrial Energy Consumers; Giannis Mitropoulos, President at ESPEN, the Greek Energy Suppliers Association; Irodotos Antonopoulos, President at ESEPIE, the Hellenic Association of Electricity Trading & Supply Companies; Georgios Kouvaris, President at Heron; Elena Giannakopoulou, Chief Strategy Officer at Greek power utility PPC; Tasos Lostarakos, chief executive at NRG; Dionysis Tsitos, General Manger at Volton; Katerina Sardi, Managing Director and Country Manager for Greece at Energean Oil and Gas; as well as Giannis Karydas and Kostis Sifnaios, both officials at the Copelouzos group.

Panagiotis Ladakakos, President at ELETAEN, the Greek Wind Energy Association, and Panagiotis Papastamatiou, this association’s General Manager; Stelios Loumakis, President at SPEF, the Hellenic Association of Photovoltaic Energy Producers; as well as a host of other participants representing operators, the energy sector’s regulatory authority, agencies, as well as the entrepreneurial and academic worlds also feature on the event’s agenda.

The conference will be held with speakers and participants at the venue. All proceedings will be broadcast live, in Greek and English.

For more on participants, sponsors, the event, plus a rich archive of information from previous Power & Gas Forum events, go to https://powergassupplyforum.gr/

For further information and sponsorship details, contact Maria Delli (2108217446, mariadelli@energypress.gr)

RAAEY’s Energy Ombudsman service proving useful

An Energy Ombudsman launched by RAAEY, the Regulatory Authority for Waste, Energy and Water, on February 1 for resolving disputes between consumers and suppliers or market operators is provi ng useful, early data on the new service has indicated.

Some 50 applications concerning disputes, primarily pricing disputes, have already been submitted, but ten of these have not been accepted by the Energy Ombudsman as their cases are currently being examined by other agencies and decisions are still pending, energypress sources informed.

Two cases have already been settled through the new RAAEY service, while outcomes on the others are pending.

Consumers can only resort to the new Energy Ombudsman fcr settlement of disputes if they have not already filed cases to other agencies or courts.

Consumers must first raise their cases with their supplier or the relevant market operator and, if they deem the response as insufficient, can then turn to the Energy Ombudsman for help.

Besides pricing disputes, other disputes that may be settled through the Energy Ombudsman, covering both the electricity and natural gas markets, could include disagreement over clauses, consumption levels, as well as energy-bill ambiguities.

 

5th Power & Gas Forum, an energypress event, March 28, 29

The 5th Power & Gas Forum, organized by energypress, is scheduled for March 28 and 29 in Athens, at the Wyndham Grand Athens Hotel, with participation, as always, by the energy ministry’s leadership and prominent speakers.

Sponsorship support by energy-sector companies is strong,  highlighting the event’s influential standing.

The registration process for event participation is ongoing, but the number of places now available is limited as sector executives have been expressing considerable interest.

Registrations may be submitted to https://5opowergasforum.eventsadmin.com/Register.

At present, the list of confirmed speakers is: Aristotelis Aivaliotis, the energy ministry’s General Secretary of Energy and Natural Resources; Nikos Tsafos, the Greek PM’s special adviser on energy matters; Athanasios Dagoumas, president at RAEEY, the Regulatory Authority for Energy; Professors Theodoros Tsakiris, Pantelis Kapros and Pantelis Biskas; Alex Papalexopoulos, president at ECCO International and key designer of the target model; Alexandros Papageorgiou, CEO at the Greek energy exchange; Loukas Dimitriou, president at ESAI, the Hellenic Association of Independent Power Producers; Antonis Kontoleon, president at EVIKEN, the Association of Industrial Energy Consumers; NRG chief executive Tasos Lostarakos; as well as numerous market operator and RAAEY representatives, plus members of the entrepreneurial and academic sectors.

The conference will be held with speakers and participants at the venue. All proceedings will be broadcast live, in Greek and English.

For a look at the agenda’s topics, go to https://powergassupplyforum.gr/forum-presentation/

For further information, contact Maria Delli (2108217446, mariadelli@energypress.gr)

 

PPC to present ambitious 4-yr business plan at London event

Greek power utility PPC, going from strength to strength in recent years, is expected to present a highly ambitious four-year business plan at a Capital Markets Day event in London on January 23.

PPC and investors anticipate a big year for the company in 2024, as suggested by a 65 percent rise of the company’s share over the past year.

The company has undergone a major revamp since the summer of 2019, when Giorgos Stassis was appointed CEO. PPC is now looking ahead with robust finances, without burdens and corporate mismanagement of the past, and possesses substantial amounts for big investments which other big players are keen to participate in.

PPC has the potential to consistently post annual operating profits of around two billion euros a year. Besides Romania, the company’s expansion plan now also includes Bulgaria, as well as a retail energy expansion plan through the company’s fully-owned Kotsovolos electrical and electronics retail chain, a leading force in the Greek market.

 

Levy on gas used for power production to end January 1

The energy ministry has decided to terminate, as of January 1, a special levy imposed on natural gas used for electricity production, energypress sources have informed.

The special levy has been applied by the energy ministry as a tool to limit domestic gas consumption and, as a result, help subdue gas prices. Up until recently, the ministry was considering to extend the levy for a brief period into 2024.

The energy committee at SEV, the Hellenic Association of Industrialists, had pushed for this special levy to be terminated during a recent meeting with the energy ministry’s leadership in late October.

At the time, the ministry officials refused to offer any specific withdrawal date for the levy, noting the matter would be examined with the course of international gas prices in mind. The ministry officials indicated the levy would be maintained if international gas prices remained at levels of the time, or increased.

However, international gas prices have since fallen. Last week, the TTF index fell to 38 euros per MWh, a level not recorded since early 2022, prior to Russia’s invasion of Ukraine and the attack’s impact on energy markets.

This price de-escalation in international markets should eliminate any risk of a demand-driven natural gas price increase in Greece, officials believe.

The special levy’s formula was revised in May to 5 percent of the TTF, replacing a previous flat rate of 10 euros per MWh that had been introduced in November, 2022.

5th Power & Gas Forum conference, an energypress event, March 28 & 29 in Athens

With the energy crisis becoming the new normal and electricity and gas markets in search of new operating rules at European and national level, the energypress staff is organizing the 5th Power & Gas Forum conference on March 28 and 29, 2024 at the Greek capital’s Wyndham Grand Athens Hotel.

The conference will be held with speakers and participants at the venue. All proceedings will be broadcast live, in Greek and English.

See the conference website here. https://powergassupplyforum.gr/

Electricity import-export deficit narrows in 2022

Greece remained a net importer of electricity through the country’s grid interconnections in 2022 but the gap between imports and exports was narrower compared to previous years, data included in power grid operator IPTO’s ten-year development program for 2024 to 2033 has shown.

Greece was a net importer at all its grid interconnections except for those linking the country with Italy, according to the data.

Electricity net imports through Greece’s grid interconnections were subdued in 2021 and 2022 compared to previous years, when imports greatly exceeded exports, especially between 2014 and 2020, the IPTO figures showed.

IPTO’s ten-year development program for 2024 to 2033, forwarded for consultation by RAAEY, the Regulatory Authority for Waste, Energy and Water, includes plans for a series of new interconnections with neighboring systems.

Speaking at the annual Economist conference in Athens, held last week, Ioannis Margaris, IPTO’s deputy chairman and general manager of technology, system development and strategy, noted a need to improve the country’s interconnectivity with neighboring markets.

New corridors for electricity transmission from south to north have become a strategic priority in recent years as RES output is expected to greatly exceed domestic demand, the IPTO deputy told the event.

Electrical heating allowance details presented next week

The energy ministry plans to present, next week, an overall package of measures for the retail electricity market, including a new framework for an electrical heating allowance supporting low-income consumers that will replace the existing system of universal subsidies offered for all electricity bills.

According to energypress sources, the plan’s structure will greatly resemble existing cost-support plans for other heating fuels, including diesel, natural gas, wood and pellet heating. This essentially means that both income and asset criteria will be taken into account.

Single people with an income of up to 16,000 euros per annum and married couples with an income of up to 24,000 euros per annum will be entitled to the electrical heating allowance. The income criterion will be increased by 5,000 euros per child for families with children.

Also, a property ownership limit of 200,000 euros is expected to apply for single people and 300,000 euros for married couples and single-parent families.

As is the case with existing heating fuel support, allowance limits for electrical heating costs will most likely range from 100 to 800 euros per year.

The allowance for electrical heating and allowance for other heating fuels will be mutually exclusive. Eligible parties will only be able to apply for one of the two allowances.

 

No sum for energy-crisis support in 2024 draft budget

Consumers face a challenging winter in terms of energy costs, as indicated by a number of revisions included in the 2024 draft budget, just submitted to Parliament.

Besides the absence of horizontal energy-support measures, the budget draft does not provide for any special reserve that would cover energy-crisis situations.

Fiscal concerns expressed by the European Commission, pressure by the ECB for an end to generous support that is cancelling out monetary policy, as well as the normalization of energy market conditions are key factors behind these budget restrictions for energy consumers, who were offered substantial support in 2022 and 2023.

A senior member of the government’s economic staff, responding to questions during a briefing yesterday on budget figures, admitted that no energy-related safety cushion for consumers was included in the country’s financial package for 2024. However, the official did point out that corresponding action would be taken to meet any potential needs, should they arise.

This essentially means that certain support measures offered last winter would only be recalled if deemed necessary, to avoid burdening the budget in advance.

For the time being, the only emergency amount included in the draft budget is a 600 million-euro sum for natural disasters.

Contrary to last winter, the draft budget for 2024 does not include any sum for heating fuel subsidies. If any support, on this front, is eventually offered to consumers, it would result from initiatives taken by refineries. Clarity is expected around mid-October, when the heating-fuel trading season commences.

Also, horizontal electricity subsidies, for all consumers, will cease to apply as of January, when electricity suppliers will be introducing new pricing policies, to include indexation clauses or similar pricing tools.

Horizontal support for natural gas purchases also appears set to be scrapped as of January, given the gas market’s currently subdued prices.

The absence of any reserve amount for potential energy crises stands as the draft budget’s fourth major energy-related change, compared to last winter. If needs do arise, they will seemingly be dealt with via the Energy Transition Fund, not the budget.

Milder, lower-cost gas storage measures planned for winter

This winter season’s Preventive Action Plan for natural gas supply security in Greece is expected to be significantly lower in cost as it will be limited to a basic set of milder precautionary measures, energypress sources have informed.

The Preventive Action Plan will be determined by the outcome of a risk study currently being conducted for the upcoming winter, deputy energy minister Alexandra Sdoukou recently informed.

Though the study’s results are not yet out, it has already become apparent that drastic energy security measures such as those taken for last winter – among them the rental of an additional FSU at the Revythoussa LNG terminal just off Athens – will not be necessary, well-informed sources have contended.

This winter, gas grid operator DESFA, running the Revythoussa LNG terminal, does not intend to hire an additional FSU, which, along with gas-storage facility rentals abroad last winter season by electricity producers operating gas-fueled power stations in Greece, ended up costing 160 million euros.

In the lead-up to last winter, Greece’s gas-fueled electricity producers were required to store natural gas at underground storage units of other EU member states, as domestic gas storage facilities did not suffice to cover precautionary-measure needs.

The country’s electricity producers have, this autumn, remained far more subdued on gas-storage action at facilities in fellow EU member states. Some of Greece’s major electricity producers have reached agreements to use gas storage facilities, primarily in Italy, if needed, sources informed.

Gas amounts involved in these agreements are believed to be well below levels foreseen by EU regulations and RAAEY, the the Regulatory Authority for Waste, Energy and Water.

Last winter, RAAEY, aligning itself with EU Regulations, which require all member states to store gas amounts equivalent to 15 percent of national annual consumption, set a 7.5 TWh storage requirement.

Market officials have expressed concerns as to whether this requirement still needs to be maintained, noting the Revythoussa LNG terminal could cover extraordinary needs through additional LNG shipments.

Electricity subsidies overhaul to introduce income criteria

A new electricity subsidies model being prepared by the energy ministry for launch in January will offer consumers subsidies on a selective basis, taking into account criteria such as income, electricity usage levels, property ownership and, possibly, geographical location of consumers, as opposed to the current system, offering universal support.

The European Commission is pressuring for an end to universal electricity subsidies and wants a new model that would ensure energy-cost support is offered to households in real need.

The government had mildly modified its electricity subsidies model earlier this year, in February, restricting subsidies to monthly consumption of up to 500 KWh, after subsidizing all consumption in the preceding 18 months.

The new, overhauled subsidies model being shaped by the energy ministry for Greece’s electricity market is expected to share similar traits to the income-based formula offering heating fuel subsidies, which also includes geographical location and number of persons per household as factors.

If geographical location of consumers is incorporated into the new subsidy model for electricity subsidies, different subsidy rates will be applied for different regions.

PPC new business plan, worth over €9bn, unveiled November

Power utility PPC plans to unveil its new and revised business plan, covering 2023 to 2027, at its capital markets day, scheduled for November, following the completion of the energy group’s takeover of Italian group ENEL’s Romanian subsidiary ENEL Romania.

PPC’s new business plan is expected to include investments that exceed the existing 2022-to-2026 plan’s 9 billion-euro sum. The precise figure is expected to be decided on by PPC’s administration in October, once all details of the company’s takeover of ENEL Romania have been completed.

The main focus of PPC’s new business plan will be on renewables and the retail electricity market. PPC has made clear its interest to acquire a company with an extensive retail presence. Appliance retail chain Kotsovolos, a member of the Currys group, is one possibility. Kotsovolos is represented by 93 outlets around Greece.

PPC officials met recently with members of the Romanian government to discuss the ENEL Romania takeover’s completion, expected by the end of September.

The power utility is determined to include this addition in its updated business plan as the move promises to boost the company’s financial figures and facilitate new goals for the Greek and, primarily, Balkan markets.

According to sources, PPC’s five-year business plan from 2023 to 2027 will exceed 1.9 billion euros per year.

Brussels forecasts lower gas prices, concerned about oil

The European Commission has projected energy prices falling at a slower rate for the remainder of 2023 before rising again in 2024, especially for oil prices.

Brussels made its forecast before OPEC+ announced it would extend production cuts until the end of this year, which pushed the price of Brent up to a level of 90 dollars per barrel.

As for electricity and natural gas prices, the European Commission report notes prices have fallen since spring.

For the third quarter of 2023, the European Commission expects price levels to be 21 percent lower for natural gas and 25 percent lower for electricity, compared to its previous estimates.

Brussels has forecast an electricity price average of 109 euros per MWh in 2023 and 140 euros per MWh in 2024, down from 130 and 160 euros per MWh, respectively, in its spring report. This revision was attributed to a rapid expansion of liquefaction terminals on the continent and full gas storage facilities.

The Brussels report projects economic growth of 0.8 percent this year in the Eurozone and the EU, slightly below a previous 1 percent growth forecast, while economic growth in 2024 is seen reaching 1.3 percent, down from 1.6 percent projected in the spring report.

The German economy, Europe’s biggest, is now seen contracting by 0.4 percent this year, rather than growing 0.2 percent, as was previously projected.

EU industrial production fell by 1.1 percent in the second quarter of 2023, compared with the previous quarter, despite falling energy prices, the Brussels report noted.

EuroAsia Interconnector fails to make first Nexans payment

The beleaguered EuroAsia Interconnector project, aspiring to interconnect the electricity networks of Greece, Cyprus and Israel, has run into further trouble following its Cyprus-headquartered consortium’s failure to meet yesterday’s deadline for a 50 million-euro payment to Norwegian company Nexans as a first installment for cable supply.

This deadline was widely viewed as a crash test for the credibility of the consortium, spearheaded by Cypriot entrepreneur Nasos Ktorides, its chief executive officer.

The payment failure has given rise to various scenarios concerning the project’s future. Without a doubt, the Cypriot government wants this geostrategically important project to go ahead, while the European Commission, which has offered funding support worth 657 million euros, through the Connecting Europe Facility, can be expected to become more actively involved in an attempt to push the project forward.

Given its commitment to the EuroAsia Interconnector project, Greek power grid operator IPTO could also intensify its efforts to keep the grid interconnection project afloat.

IPTO has pledged to contribute 33 percent of the investment if legal due diligence is successfully completed, while an Israeli fund that has expressed interest could provide an equivalent amount. Under such a scenario, IPTO and the Israeli fund would hold 66.66 percent of the EuroAsia Interconnector project’s equity capital.

It remains unclear as to why the EuroAsia Interconnector consortium failed to meet yesterday’s payment deadline, despite having recently received the required 50 million-euro amount from the CEF. According to one resulting scenario, a new consortium could now be sought for the project’s development.

A growing number of Cypriot government officials have been distancing themselves from the Euroasia Interconnector project ever since Brussels’ recent warning that the 657 million-euro CEF sum secured for it would be reexamined if the project’s schedule is not maintained.

Cyprus’ energy minister Giorgos Papanastasiou recently noted the project is still 1.1 billion short of its 1.9 billion-euro budget, which was revised upwards from a previous total of 1.57 billion euros.

External investor interest for Greece-Cyprus-Israel grid link

A preliminary agreement between Greek power grid operator IPTO and an Israeli fund that would facilitate the fund’s entry into the equity capital of Euroasia Interconnector, the developer of the Greece-Cyprus-Israel grid interconnection, with a share of up to 33 percent, has ignited considerable investment enthusiasm in the project among external investors.

News of this strong investment interest was revealed by Cypriot Minister of Energy, Trade and Industry Giorgos Papanastasiou during a Parliamentary Energy Committee meeting held yesterday for a discussion on the project’s progress.

The parliamentary session took place just hours after IPTO’s preliminary agreement with the Israeli fund had been disclosed.

IPTO has already reached an agreement of its own with Euroasia Interconnector for a stake of at least 25 percent in the consortium, with an option to increase this stake to 33 percent.

Papanastasiou, the Cypriot minister, noted IPTO’s entry into the Euroasia Interconnector consortium serves as a vehicle for the Greek State’s involvement in the project. For the time being, the Cypriot State officially remains absent from the project.

“For us, it is inconceivable that the Republic of Cyprus should not be involved in such a project,” Papanastasiou noted.

Nevertheless, he emphasized that the Cypriot government is diligently assessing the matter. Given the project’s significant expenses, any decisions will be made after a comprehensive evaluation of the project’s technical and financial aspects.

The minister rejected claims suggesting the project would result in significant electricity tariff increases for Cypriot consumers, noting preliminary calculations indicate a cost increase of approximately 0.7 cents per KWh, which is just a fraction of Cyprus’s current retail electricity prices, reaching 35 cents per KWh.

Wholesale electricity price falls sharply over the weekend

The price of wholesale electricity plunged over the weekend, driven lower by an increase in RES output.

Yesterday, wholesale electricity fell to an average price of 53.30 euros per MWh, while, for a five-hour period between approximately 10 am and 3 pm, the price level reached zero, according to energy exchange data. The day’s maximum price level peaked at 120 euros per MWh.

Yesterday’s price level fell by 10.63 percent compared to Saturday’s 59.65 euros per MWh, which, in turn, was 25.30 percent below Friday’s level of 79.85 euros per MWh.

Today’s average wholesale electricity price is 95.18 euros per MWh, with the day’s peak at 153 euros per MWh and the minimum at 59 euros per MWh. Demand for the day is at 160 GWh.

The RES sector is programmed to be today’s biggest contributor with a 47.4 percent share of the energy mix, followed by gas-fueled production, at 22.7 percent, electricity imports at 12.4 percent, hydropower at 7.4 percent, and lignite-fired output, representing 6 percent.

 

Wholesale electricity price up in July, year’s first increase

The price of wholesale electricity in the Greek market rose to 112 euros per MWh in July, up from 91 euros per MWh a month earlier, becoming this year’s first month-to-month increase, latest data from the Greek energy exchange has shown.

The average price for natural gas transactions in July was 29.87 euros, up from 28.78 euros in June.

Last year, in July, 2022, wholesale electricity in Greece was priced at 338 euros per MWh and natural gas was at 132 euros.

Natural gas was responsible for 37 percent of electricity generation last month, followed by renewables, which captured a 29 percent share, electricity imports, at 18 percent, hydropower, at 7 percent, and lignite, at 6 percent.

As for electricity usage, 58 percent of electricity generated went to the low-voltage category, 19 percent to medium voltage, and 11 percent to high voltage.

Finally, the electricity import-export balance was dominated by imports with 95 percent, compared to only 5 percent for exports.

Fysiko Aerio net profit for 2022 more than doubles to €32.9m

Energy retailer Fysiko Aerio EEE, a subsidiary of gas company DEPA Commercial, has posted a net profit of 32.9 million euros for 2022, more-than-double its performance a year earlier, 14.184 million euros, while also significantly increasing its customer base in the retail gas and electricity markets.

Revenues at Fysiko Aerio reached 883.192 million euros in 2022, up from 406.16 million euros in 2021.

This heightened performance resulted in an EBITDA increase to 45.601 million euros for the DEPA Commercial subsidiary, up from 19.865 million euros in 2021.

Fysiko Aerio greatly increased its number of customers in the retail electricity market, reaching 51,520 in 2022.

Managing the major challenges that existed in 2022, while achieving financial and commercial targets was important for Fysiko Aerio EEE, the company noted in its financial statements.

Last year, a period marked by a significant increase in commodity energy prices, resulting in margin compression and liquidity pressure, was the company’s sixth year of operation in Greece’s liberalized natural gas market and fifth year in the electricity market, one of intense competition.

The company’s main objectives for the forthcoming period are to continue its growth in both the natural gas and electricity markets, manage cash liquidity and maintain cost control, it noted.

Fysiko Aerio sees maintenance of its robust market share in the wider Athens area’s natural gas market, investments in central and northern Greece’s markets, as well as greater penetration in the electricity market nationwide as the key drivers behind its aforementioned goals.

 

Ministry planning two-pronged attack on strategic non-payers

The energy ministry is preparing a two-pronged attack to counter electricity users deemed as capable but unwilling to pay their power bills, who, as a consequence, have made it a habit to switch suppliers while leaving behind unpaid amounts.

The ministry, according to sources, is preparing a debt-flagging data system whose consumer payment records will be available for all electricity suppliers to see before they sign up new customers.

As a second measure, the ministry plans to cross-examine, through finance ministry data, the financial standings of consumers behind on electricity bill payments. If these consumers are deemed to be high-income earners or owners of sizeable asset portfolios, they will face legal consequences.

Speaking yesterday on local radio SKAI, recently appointed energy minister Theodoros Skylakakis noted: “The fact that the State always has to take care of electricity [prices] does not mean that it does so in the same way for everyone. Someone, for example, with savings of 100,000 euro cannot be treated as vulnerable to energy prices, or in the same way as someone with 200 euros in savings.”

The country’s electricity suppliers have been burdened with an estimated 500 million euros in bad debt over the past year, alone, as a result of the actions of strategic non-payers.

Their ability to avoid payments was greatly assisted by a decision issued by the Council of State, Greece’s supreme administrative court, in 2016. The court annulled a market rule requiring consumers to settle outstanding amounts owed to suppliers before switching.

Strategic non-payers were further assisted approximately a year ago when the government, as part of a package of energy crisis measures, included a revision permitting consumers to switch suppliers without incurring penalties for premature withdrawals from contracts.

RAAEY, the Regulatory Authority for Waste, Energy and Water, in a recent proposal forwarded to the energy ministry, has suggested it establish a law that would permit electricity retailers to order supply cuts for former customers with a certain number of unpaid electricity bills.

 

 

 

 

RAAEY reaches decisions on WACC levels for IPTO, HEDNO

Following months of deliberation, RAAEY, the Regulatory Authority for Waste, Energy and Water, has reached decisions on WACC levels for power grid operator IPTO and distribution network operator DEDDIE/HEDNO, setting the former’s at 7.51 percent, for 2023 to 2025, and the latter’s at 7.66 percent for 2023 and 2024, energypress sources have confirmed.

Based on these decisions, IPTO’s average WACC level for the four-year regulatory period, covering 2024 to 2027, works out to 7.16 percent, while the four-year regulatory period average for DEDDIE/HEDNO is 7.11 percent.

The discrepancy in WACC levels resulted from different borrowing-cost coefficients applied to a WACC formula used by RAEEY. All other factors that were taken into account, including country risk and cost of capital, were identical.

IPTO initially sought a higher WACC rate, pushing for its cause from as far back as last year, citing unfavorable changes in the economic environment, including inflation and interest rate increases.

Just recently, RAAEY set a WACC rate of 7.85 percent for gas grid operator DESFA, covering the entire four-year regulatory period (2024-2027), and an 8.57 percent WACC rate for DEPA Infrastructure, limited to 2023.

Non-restrictive power supplier switches by consumers to stay

Current rules enabling consumers to switch electricity suppliers without restrictions appear set to be maintained even though subsidies, introduced as an emergency energy-crisis support measure, are on the way out.

Market authorities are reportedly in the process of adopting recommendations and opinions of European officials and the consumer ombudsman, according to which electricity marketed with variable tariffs should not include penalties for premature termination of supply contracts as these restrict free competition and the right of consumers to choose products and services.

However, terms and conditions for premature departures by consumers holding fixed-tariff electricity supply agreements will continue to apply.

It remains to be seen whether an indexation clause enabling tariff adjustments on electricity bills will apply or not. RAAEY, the Regulatory Authority for Waste, Energy and Water, is currently calculating details ahead of a decision on this matter.

According to sources, the formula to be applied is likely to incorporate cost-related tariff adjustments.

Viohalco third energy-intensive producer to leave PPC

Metal processing company Viohalco, one of Greece’s biggest electricity consumers, has become the third industrial producer to move away from power utility PPC after establishing an electricity supply agreement with independent producer Heron, company sources have told energypress.

Viohalco’s decision to part ways with PPC as its supplier follows departures by ELPE (Hellenic Petroleum) and the Mytilineos group’s Aluminium of Greece, though this latter company’s move away has not yet been completed.

ELPE was the first energy-intensive producer to leave PPC after the two sides failed to reach a supply agreement in 2021. ELPE ended up establishing a supply agreement with Elpedison, in which it holds a 50 percent stake as part of a 50-50 venture with Edison.

Aluminium of Greece, the country’s biggest electricity consumer, is primarily supplied its energy needs by group subsidiaries Protergia and Watt+Volt. The producer aims to have completely ended its reliance on PPC for energy supply by 2024.

An existing supply agreement between PPC and Aluminium of Greece remains valid but is the last following a 60-year association, a development aligned with the Mytilineos group’s green-energy goals for its production of aluminium.

Meanwhile, other major producers, among them some of the country’s biggest energy consumers, have reached advanced talks with PPC to establish 10-year, green-energy power purchase agreements, through PPC subsidiary PPC Renewables.

 

Power subsidies €15/MWh for May, June, part of €47m plan

The government’s electricity subsidies for monthly residential usage of up to 500 kWh, a category concerning 90 percent of the country’s households, has been set at 15 euros per MWh for the months of May and June, as part of an energy-crisis support package for households and farmers totaling 47 million euros, sources have informed.

The energy ministry, due to officially announce this latest subsidy support package today, opted to commit to a two-month period of subsidies, covering May and June, instead of the usual one month, in anticipation of the May 21 legislative election and any interruptions a possible second round of voting, which would be held roughly one month later, could cause to the energy-crisis support being offered to consumers.

No income criteria have been applied to the electricity subsidies offered for May and June.

Consumers using over 500 kWh of electricity in a month will also be eligible for subsidies of 15 euros per MWh for the two-month period as long as they reduce their usage by 15 percent compared to the equivalent months a year earlier.

Underprivileged households already receiving energy-cost support through the country’s Social Residential Tariff (KOT) package will be subsidized for electricity at a higher rate of 50 euros per MWh in May and June.

Electricity subsidies for farmers have been set at 15 euros per MWh for the two-month period.

 

Government’s energy crisis policy highly effective, PM adviser notes

The ongoing release of data concerning 2022 continues to confirm the government’s choices in addressing the energy crisis have, on the whole, been highly effective, Nikos Tsafos, the Greek prime minister’s special adviser for energy, has noted in an article contributed to energypress.

There have been many aspects to the energy crisis but the biggest problem for Greece last year was the sharp rise in natural gas prices, the energy expert pointed out. Though the country spent annual amounts of approximately one billion euros for natural gas imports between 2010 and 2019, such spending skyrocketed to 7.4 billion euros in 2022, or 3.4 percent of the country’s GDP, he stressed.

The trade deficit widened considerably, by 38 percent last year, as a result of the rise in natural gas prices, Tsafos noted.

The government faced the challenge, in 2022, of needing to find an additional sum of over six billion euros for natural gas imports required to keep the country rolling, the energy expert pointed out.

The government achieved three goals, the first being to protect the country’s citizens and economy from high-priced energy imports and avoid a derailment of fiscal targets set, the official noted.

Secondly, the administration managed to partially absorb energy price increases without impacting incentive for reasonable energy savings, and thirdly, through its policies, ensured supply security, Tsafos pointed out.

A sum of approximately 10 billion euros made available by the government in 2022 for consumer support, in the form of energy subsidies, was a fundamental part of the administration’s energy crisis policy, the energy adviser noted, adding that, as a result, Greece achieved a higher growth rate than the rest of Europe.

This sum was not taken from the state budget but, instead, raised through windfall taxes imposed in the energy market, Tsafos noted.

As a result, a modest budget surplus, before interest, was achieved in 2022, while the country’s public debt decreased by 23 percentage points, he highlighted.

Tsafos also highlighted society’s positive response to the need for energy savings, noting electricity usage in Greece fell by 6.7 percent in 2022, more than double the European average of 3.1 percent. Natural gas usage in Greece fell by 19 percent last year, well over the European average of 13 percent, he added.

GO certificate fee up tenfold in a year, suppliers paying dearly

Demand for green-energy Guarantees of Origin, EU certification enabling end consumers, including domestic consumers, to track the origins of electricity they consume, has grown significantly over recent months, leading to a shortage of GO certificates and price rises several times over levels recorded a year earlier.

With the GO deadline for electricity usage in 2022 expiring today, a number of companies have scrambled to cover their basket of green-energy products last year, and needed to spend significantly increased amounts.

Around this time last year, suppliers in Greece could secure green-energy certificates at a price of between 0.30 and 0.55 euros per MWh, but prices have soared tenfold over the past twelve months to levels of between 4 and 6 euros per MWh at present, market sources have informed.

Demand for GO certificates grew considerably around Europe in 2022, leading to a shortage in Greece as a first round of auctions for domestic GOs has yet to take place following the establishment, last summer, of a new trading system for the acquisition of GO certificates in Greece.

The Guarantee of Origin (GO) is the main and only electricity tracking instrument in Europe that gives electricity consumers the power to actively choose sustainable power production over fossil-fuel based electricity and hence send market signals about their demand.

 

Residential tariff subsidies of 1.5 cents per KWh for April

Standard electricity subsidies for residential tariffs in April have been set at 1.5 cents per KWh, while the month’s subsidies concerning social residential tariffs (KOT), offered to low-income households, are 5.4 cents per KWh, the overall cost of this support package for the month being 24.4 million euros, energy minister Kostas Skrekas has just announced.

This subsidy outlay, for the month, greatly reduced compared to previous months, has been made possible by lower wholesale electricity prices that enabled retailers to announce, earlier this week, lower tariffs for April.

The government has been providing subsidies throughout the energy crisis to subdue residential tariffs to levels of between 15 and 16 cents per KWh.

Based on recent law, electricity retailers in Greece are required to announce their tariffs for each forthcoming month by the 20th of every preceding month.

The energy minister has also just announced two new subsidy programs for energy efficiency upgrades of buildings. One of the two support programs will be made available to young adults, while the other is the third edition of the “Saving at Home” program.

The government has offered over nine billion euros in subsidies over the past 20 months to support Greek society amid the unprecedented energy crisis, Skrekas, the energy minister, noted.

Seventy percent of these funds have been generated by a windfall tax on excess earnings of electricity companies, as well as CO2 right auctions, minimizing the state budget’s contribution for electricity subsidies, the minister stressed.

“The energy crisis is continuing. We will continue offering support for as long as it takes,” Skrekas said.

Energypress holds Power & Gas Forum: See agenda, speakers

As the energy crisis evolves into the new normal and power & gas markets are seeking new rules, Energypress organizes for a fourth year the annual Power & Gas Forum on March 22-23 in Wyndham Grand Athens Hotel.
The conference will take place with physical presence and can also be viewed online both in Greek and English.
You can see the conference’s agenda and the speakers list here.

https://powergassupplyforum.gr/

 

Live coverage of energypress Power & Gas Forum here

The Power & Gas Forum, organized by energypress for a fourth year and taking place March 22 and 23, 2023 at the Wyndham Grand Athens hotel, offers a rich agenda over its two days. The entire range of energy-sector topics will be covered with participation from over 70 prominent speakers. Simultaneous interpretation from Greek to English will be offered.

Watch the conference through this link:

https://services.livemedia.gr/embed/live/7992?start=0

 

 

 

PPC market share gain of 3.5% last month shed by Mytilineos

Power utility PPC’s retail market share, covering all voltage-related categories, rose to 63.54 percent in February, up 3.5 percent on the previous month, a gain more or less shed by Mytilineos, whose overall market share contracted to 7.44 percent in February from 10.67 percent in January, according to latest data included in the energy exchange’s monthly report.

In the high-voltage category, PPC’s market share increased to 86.64 percent in February from 67.04 percent in January, while, on the contrary, its medium-voltage market share fell to 37.72 percent from 39.48 percent.

PPC’s market share in the low-voltage category edged up to 65.57 percent in February from 64.87 percent a month earlier, the energy exchange data showed.

The market shares of other electricity retailers remained virtually unchanged between January and February. Heron captured a 7.24 percent overall market share in February, marginally up from January’s 7.13 percent.

Elpedison’s market share slipped to 6 percent from 6.27 percent; NRG gained marginally to capture a 4.85 percent market share compared to 4.65 percent in January; Fysiko Aerio Attikis captured a 2.97 percent market share in February compared to 2.88 percent in January; Zenith’s market share was 2.14 percent from 2.13 percent a month earlier; Watt+Volt registered a market share of 2.08 percent from 2.09 percent; Volterra edged up its presence to 1.92 percent from 1.82 percent, while Volton’s market share stepped back to 0.98 percent from 1.03 percent.

 

Brussels proposals include PPA priority, RES growth support

A series of European Commission proposals for the EU electricity market do not call for any major changes to its structuring but make note of the need for mild revisions to the current model through the implementation of various market tools.

A draft of the proposals, obtained by energypress ahead of their official presentation, scheduled for March 14, highlights the need for industry to be provided obstacle-free access to long-term tools, such as PPAs; consumer rights for fixed tariffs and improved market information; and long-term markets offering investment support for RES development.

Also, revisions must ensure that the benefits of renewables reach consumers, the draft notes, placing emphasis on the functioning of the intraday market and its improved liquidity.

It also calls for transmission operators to develop a market tool limiting consumption peaks during the most challenging times of the day as a means of better managing demand and limiting prices.

The European Commission, according to the draft, continues to support the existing market model, stressing “it has provided a well-integrated market, allowing Europe to reap the economic benefits of the single energy market under normal conditions, assuring adequacy of supply and decarbonization”.

However, it admits that “in the midst of the crisis the current model has shown certain major weaknesses related to elevated and volatile fuel prices and short-term electricity markets that have exposed consumers to significant price increases”.