electricity bills

Non-restrictive power supplier switches by consumers to stay

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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.

Suppliers want power cuts for roving consumers with arrears

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Electricity suppliers are pressuring authorities for measures protecting them against energy-bill debt left behind by consumers switching to other suppliers.

Two industry associations, ESAI/HAIPP, the Hellenic Association of Independent Power Producers, and ESPEN, the Greek Energy Suppliers Association, are believed to have forwarded proposals to the energy ministry for measures protecting electricity suppliers against consumers on the run.

The energy ministry launched a related consultation procedure approximately one month ago.

According to sources, electricity suppliers want the energy ministry to establish a law permitting them to cut power supply to customers who have switched to other suppliers for up to 90 days following their respective moves, if they still owe amounts to previous suppliers.

This rule would require consumers who have switched suppliers, leaving behind outstanding electricity bill amounts, to settle arrears within a 90-day period, either through full payments or installments, or have their electricity supply cut.

Electricity suppliers have been under increased pressure as a result of a growing amount of unpaid electricity bills during the energy crisis as well as the absence of rules countering consumers who rove from one supplier to another as a means of avoiding electricity-bill payments.

Standardized gas billing discussed at RAE session

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Guidelines for natural gas billing presentation revisions promising household and business consumers greater price-comparison ability are on the agenda of today’s plenary session at RAE, the Regulatory Authority for Energy.

The authority has already standardized billing presentations for electricity suppliers and is now doing likewise in the retail gas market.

As was the case in the retail electricity market, it will not be compulsory for gas suppliers to adopt the upcoming billing revisions, but suppliers who choose to do so will be endorsed by RAE.

Besides promising greater price-comparison clarity for consumers, the revisions will also make it easier for potential customers to decipher the details of offers made by gas suppliers.

RAE is determined to offer consumers full clarity on their gas bills as energy costs are expected to be elevated this coming winter.

Budget support not needed for November electricity subsidies

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The state budget’s participation in monthly electricity subsidies is being further reduced, freeing funds for intervention to lower auto diesel and heating fuel price levels. Budget money for October’s electricity subsidies totaled 100 million euros, but this figure is likely to drop considerably or even be eliminated for November.

The recovery of electricity producer windfall earnings, along with CO2 emission right auction revenues are expected to suffice for the government’s electricity subsidies to be offered to households and businesses in November.

If market conditions do not change drastically over the next few days, retail electricity price levels for November, to be announced by suppliers this Thursday – by law – are expected to be significantly lower compared to October prices.

Over the past week, energy exchange electricity prices, on a downward trajectory more recently, averaged 257 euros per MWh. The October average is currently at 270 euros per MWh, a 34 percent drop from September’s average of 410 euros per MWh.

Wholesale electricity prices seem likely to fall further. For the first time in months, wholesale electricity prices are below 200 euros per MWh, dropping to 166 euros per MWh yesterday.

 

RAE warns power suppliers to correct billing details

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RAE, the Regulatory Authority for Energy, has warned all suppliers to present their pricing policies in accordance with a new model introduced in August, energypress sources have informed.

The authority has asked suppliers to correct their presentation of competitive charges, be punctual with their monthly announcement of latest charges, by the 20th of every month, as required by the new model, and to withdraw any retroactive discounts being used.

RAE’s demand for a correction of competitive charge presentations was prompted after monitoring by the authority determined that a small number of suppliers were not presenting their details in accordance with the sector’s rules.

 

Fixed charge cap of 5 euros, over €500m raised in July for subsidies

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The government has decided to implement a five-euro cap on fixed charges in electricity bills, energy minister Kostas Skrekas has told parliament.

It is the latest in a series of energy-crisis measures introduced by the government and comes after electricity suppliers opted to increase their fixed charges as a means of keeping their tariffs – the competitive aspect of electricity bills – as low as possible.

A new market mechanism’s revenues generated for the Energy Transition Fund, supporting the government’s electricity subsidies initiative, reached over 330 million euros in the first half of the month and could exceed 500 million euros by the end of the month, the minister told parliament. This sum nearly covers the monthly cost for subsidies.

The energy crisis, brought about by pandemic-induced market abnormalities, has been exacerbated by Russia’s war on Ukraine, which the minister described as “catastrophic, causing thousands of deaths, many of the victims being unarmed civilians, and beyond that, an enormous energy crisis that is feeding economic and inflationary crises, which we hope does not also lead to a food crisis.”

Upper limit to be set for electricity bill fixed charges

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The energy ministry is set to implement a measure designed to reduce higher fixed charges announced by electricity suppliers for August.

According to sources, the measure, which is imminent, will forbid suppliers from setting fixed charges that are higher than those included in electricity bills all the way up to July 4, when the government introduced a series of energy-crisis measures.

It implemented price caps for the wholesale electricity market and abolished wholesale-price adjustment clauses in electricity bills, amongst other measures.

In response, electricity suppliers opted to increase their fixed charges as a means of keeping their tariffs – the competitive aspect of electricity bills – as low as possible.

The new measure limiting the level of fixed charges will force suppliers to increase their tariffs, market officials have noted.

 

August electricity prices could reach 50 cents per KWh

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Electricity suppliers are set to announce their tariff rates this Sunday, price levels expected to reach as high as 50 cents per KWh, which would demand consumer subsidy support worth over one billion euros for the month to keep electricity bill costs serviceable at a cost of approximately 15 cents per KWh for households and 16 to 17 cents per KWh for businesses, the government’s objectives.

According to some estimates, monthly Energy Transition Fund sums needed for the government’s support package could reach closed to 1.5 billion euros.

TTF natural gas contracts for August are at a level of 165 euros per MWh and are not expected to deescalate easily. Energy exchange prices have skyrocketed to levels of between 340 and 370 euros per MWh.

Such price levels are expected to force electricity suppliers to announce retail prices of 50 cents per KWh for August this coming Sunday, exorbitantly high considering June and July levels were at about 35 cents per KWh without subsidies.

 

RAE’s standardized power-bill guidelines officially announced

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RAE, the Regulatory Authority for Energy, has officially announced revised guidelines for standardized electricity-bill presentations by suppliers, changes including deadlines set for suppliers and billing layout details.

Though implementation of these terms is not yet compulsory, suppliers are already adopting the changes, driven by a RAE incentive offering them endorsement on the authority’s website.

RAE is aiming for compulsory enforcement of its plan for standardized electricity bills, promising consumers greater transparency and price-comparing ability.

To be endorsed by the authority, suppliers will need to have made all required changes for standardized electricity-bill presentations by July 1.

RAE to inspect suppliers for standardized power bills by end of June

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RAE, the Regulatory Authority for Energy, plans to conduct checks on electricity suppliers towards the end of June to see if its guidelines for standardized electricity-bill presentations have been adopted, sources at the authority have informed energypress.

RAE issued a set of guidelines to electricity suppliers for standardized electricity bills by July 1 as a means of offering consumers greater transparency and the ability to make direct billing comparisons.

Electricity suppliers adopting RAE’s guidelines will be endorsed by the authority on its website, the sources added.

Suppliers are still working on their electricity-bill presentation revisions as they are engaged in ongoing consultation with RAE for clarification of certain details and also require more time to adjust their information technology systems, according to sources.

The country’s electricity suppliers are willing to adopt RAE’s guidelines for electricity bill revisions but have expressed concern over further changes that could eventuate as a result of price-intervention and subsidy policies amid the energy crisis.

 

 

Electricity bill complaints made to RAE abound

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Consumer complaints about electricity bills submitted to a customer services platform set up by RAE, the Regulatory Authority for Energy, have abounded, reaching 5,457 between last September, when the platform, MyRAE, was established, and May 8, according to figures presented to parliament by the authority’s president Athanasios Dagoumas.

Roughly nine in ten consumer complaints submitted to the RAE platform have concerned electricity bills, while, more specifically, over half of these concern electricity-bill problems.

A total of 1,234 consumers, roughly one-fifth of the number that submitted complaints, disputed their electricity bill charges, the most common complaint. A total of 560 consumers complained about adjustment clauses included in their energy bills, while 327 consumers protested about insufficient information on energy tariffs and surcharges.

The RAE chief, speaking in parliament, noted that electricity suppliers found to have violated electricity market regulations will, besides penalties, also be forced to reimburse affected consumers.

 

Electricity subsidy trim for consumers, businesses in February

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Subsidies offered by the Greek State for household and business electricity bills will be trimmed for the month of February as a result of a slight de-escalation in wholesale electricity prices, authorities have decided.

According to sources, wholesale electricity prices are forecast to average approximately 225 euros per MWh in February, slightly below the average of 235 euros per MWh in December.

Household electricity subsidies for February will once again be inversely related to consumption level, the upper limit for subsidies unchanged at 300 kWh per month. Consumption above this level will not be subsidized.

In January, the first 150 kWh of household consumption was offered 160 euros in subsidies, while consumption between 151 and 300 kWh was subsidized with 120-euro amounts.

As was the case in January, household electricity subsidies in February will be limited to primary residences.

For a second consecutive month, businesses will be offered electricity subsidies at a universal rate, slightly below January’s level of 65 euros per MWh.

Suppliers set to receive third installment covering subsidies

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Electricity suppliers will be receiving a third installment covering government electricity bill subsidies offered to consumers in the final quarter of 2021, they were informed yesterday during a video conference with energy minister Kostas Skrekas and Regulatory Authority for Energy (RAE) chief executive Athanasios Dagoumas.

Natural gas retailers will also be receiving a sum covering retail discounts offered in October and November, it is believed.

A fourth installment covering electricity subsidies offered by the government for consumption in December will not be paid until mid-way through next year, it has been previously reported.

A new electricity billing format shaped by RAE, intended to offer consumers greater transparency and price-comparing ability, was also discussed during yesterday’s video conference. RAE has informed suppliers that it will forward today details clarifying certain electricity bill formatting specifications, sources informed.

 

RAE approves new-look electricity bills offering consumers greater clarity

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RAE, the Regulatory Authority for Energy, has approved a new format for electricity bills, designed to offer consumers greater transparency and clarity over charges through a standardized presentation of costs by all suppliers.

The new-look electricity bills to be published by suppliers is part of a wider effort by RAE to empower the positions of consumers, finding it difficult to fully understand electricity-bill details as currently presented by suppliers in a variety of formats.

The standardized format will also help consumers make clear-cut price comparisons between suppliers, thereby stimulating greater competition in the retail electricity market.

Suppliers will soon be sent detailed guidelines on the adjustments they will need to make to their electricity bill presentations.