Electricity cost

Downward trajectory of green tariffs seen stopping in April

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The downward trajectory of variable green tariffs experienced since the country’s new color-coded tariff system was introduced January 1 to simplify price comparisons appears set to stop in April, an energypress examination of wholesale electricity market data has indicated.

If electricity retailers choose to keep unchanged discount rates they offered for March, then just one supplier’s variable green tariff will fall in April, while another supplier’s green tariff will remain the same, energypress calculations have shown. All other suppliers are expected to set higher green tariffs in April.

Besides variable green tariffs, variable yellow tariffs and fixed blue tariffs were also introduced as part of the new system. Yellow tariffs represent a lesser risk for suppliers as their levels are set at the end of each month.

Even if electricity retailers return to generous discount policies they had offered in January and February 2024, small price increases for the vast majority of specific products are expected in April.

The market clearing price for March has so far averaged 69.83 euros per MWh, 5 percent lower than February’s average of 73.61 euros per MWh.

This decline is not expected to lead to lower variable green tariffs in April as other pricing factors are also applied to determine price levels for the month ahead.

 

Retail electricity prices below EU average in first half of ’23

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Retail electricity price levels in Greece were well below the EU average in the first half of 2023, giving the country a 17th place ranking for most expensive low-voltage electricity among member states, Eurostat data has shown.

Greece ended the six-month period with retail electricity prices averaging 233 euros per MWh, compared to the EU average of 289 euros per MWh over the same period.

Calculations for these figures include taxes and other charges, but not subsidies offered to consumers.

The Netherlands topped the list with an average price of 475 euros per MWh in the first half of 2023, while Bulgaria was placed at the bottom end with an average price of 114 euros per MWh.

As for EU member states ranked slightly above Greece, Lithuania averaged 281 euros per MWh, Sweden followed with 269 euros per MWh, Austria was next 265 euros per MWh, Ireland’s average was 248 euros per MWh, and Finland, one place above Greece, ended the first half last year with an average price of 238 euros per MWh.

On the contrary, electricity supply for non-residential consumers in Greece, averaging 213 euros per MWh, was slightly above the EU average of 210 euros per MWh. Even so, Greece’s ranking remained the same, 17th most expensive, for this category.

Romania topped the list of most expensive non-residential electricity with an average of 329 euros per MWh, while Iceland ranked lowest with an average of 78 euros per MWh in the first half last year.

 

Electricity market measures to be announced next Wednesday

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Energy minister Thodoris Skylakakis plans to announce, on November 1, details of imminent energy-cost measures intended to subdue retail electricity prices by intensifying competition through a single variable-tariff formula for all suppliers, who will remain free to set profit margins in accordance with their pricing policies, while also offering selective subsidy support to low-income households.

The single variable-tariff formula for all suppliers is also intended to offer consumers greater clarity by improving their price-comparing ability.

The ministry, expected to submit to parliament an amendment for the single variable-tariff formula any day now, believes its package of new measures, planned to be implemented January 1 in place of energy-crisis measures that included universal electricity subsidies and a freeze on indexation clauses, will help contain energy costs, despite the reactivation of indexation clauses and the widening Middle East conflict.

According to the plan, all electricity consumers will be automatically transferred to the new single variable tariff as of January 1, for 12 months, unless they opt, prior to this date, for any other supply deals offered by suppliers.

Electricity suppliers, convinced the single variable-tariff formula will not enable them to mitigate risk and also breach EU market rules, are already calling for changes to the plan.

In response, the ministry has noted suppliers will be free to set profit margin levels as they please. It has also pointed to a recent EU report highlighting the need for greater transparency in the Greek energy market.

Next Wednesday’s announcements by the energy minister will also include details on a new debt-flagging system designed to contain the high level of unpaid receivables in the country’s electricity market. The minister’s package of measures is also expected to contain an action plan addressing electricity theft.

Network usage charge hike increases electricity bill cost

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Electricity consumers face costlier electricity bills as tariffs now include an increased network usage charge, as of July with retroactive effect from May 1.

Authorities are also planning to soon increase public service compensation (YKO) surcharges, which will further increase regulated charges included in electricity bills.

Given the adoption of a new formula charging consumers mainly on the basis of the capacity of their installations and less on consumption levels, as well as the increased network usage charges, household consumers with three-phase installations are subject to higher charges than households with single-phase installations.

Households with single-phase installations, covering capacities up to 8 kVA, and electricity consumption levels averaging 2,747.3 KW, annually, the country’s average, can expect annual network usage charges of 74.35 euros, up from 62.68 euros, the level until April 31, a 19 percent increase. On a monthly basis, this increase works out to an additional 0.9725 euros for households with single-phase installations.

Households with three-phase installations, covering capacities up to 25 kVA, and, once again, electricity consumption levels averaging 2,747.3 KW, annually, can expect annual network usage charges of 149.72 euros, up from 71.52 euros, an extra 6.5166 euros per month.

Three-phase installations are most common in new homes, homes installed with heat pumps, electric heating and other systems for which single-phase supply does not suffice, as well as low and medium-voltage enterprises.

Athens records Europe’s biggest tariff drop in May, HEPI study shows

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Europe’s biggest reduction in residential electricity tariffs last month was recorded in Athens, a monthly study conducted by the Household Energy Price Index, covering European 33 cities, has shown.

Residential electricity tariffs in Athens fell by 11 percent in May compared to April, aided by the government’s ongoing subsidy support policy, while prices in most other cities surveyed remained virtually unchanged, the HEPI study showed.

Its authors noted that electricity price trends around Europe in May mark the end of a continual reduction in electricity prices since last October.

May’s residential electricity tariffs averaged 26.40 cents per KWh in Athens, placing the Greek capital 14th among the 33 cities surveyed.

The EU average for May was 26.52 cents per KWh, while the average tariff level for the 33 cities surveyed was 25.10 cents per KWh.

Dublin’s residential electricity tariff level for May was the highest among the 33 cities surveyed, reaching 47.12 cents per KWh, followed by London, at 46.23 cents per KWh, and Rome, at 42.81 cents per KWh.

Besides Athens’ 11 percent reduction in electricity tariffs last month, prices fell by 3 percent in Copenhagen and Stockholm, followed by Amsterdam, Berlin and Prague, where tariffs eased by 2 percent.

The biggest tariff increase last month was recorded in Riga, rising 16 percent. It was followed by Belgrade, where tariffs rose by 7 percent, and Helsinki, registering a 4 percent rise last month, as a result of the country’s reintroduction of a 24 percent VAT rate on electricity.

Revisions aim to reduce energy cost for most consumers

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The energy ministry is moving ahead with three revisions intended to lighten the burden of electricity bills for most consumers. Two of the changes were included in a draft bill submitted to Parliament late last Friday night, while a third revision has been attached to a RES-sector draft bill forwarded for consultation.

These measures include a new formula changing the way a special levy imposed on electricity producers is calculated. It is planned to now be calculated as 5 percent of the average TTF gas index price, an initiative that should lessen the levy’s cost for electricity companies and, by extension, the cost of electricity for consumers.

This special levy on electricity producers was introduced in November at a fixed rate of 10 euros per MWh.

Also, several low and medium-voltage consumer categories – including industrial consumers and farmers – will be exempted from a public service compensation (YKO) charge included in electricity bills.

In addition, a legislative revision is planned to pave the way for power purchase agreements (PPAs), offering industrial consumers renewable energy supply agreements over long-term periods.

February power tariffs to be lowered, conditions favorable

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Sliding electricity prices on the energy exchange, since mid-January, and the continuing drop in natural gas prices at the TTF index are creating favorable conditions for lower retail electricity prices.

A first retail market sign of these improved conditions is expected tomorrow, when suppliers post their February prices based on a recently introduced market rule requiring them to announce their prices for each forthcoming month by the 20th of the previous month.

Suppliers are expected to drop their nominal price levels for next month as low as 0.20 to 0.25 euros per KWh, not including anticipated state subsidies.

According to sources, power utility PPC, the dominant market player, is not prepared to drop its retail electricity price so low for next month, but it will offer a significant cut on its January offer.

Once retail electricity prices for February are out, the energy ministry will set subsidies so that finalized retail prices drop to a level of 0.09 euros per KWh.

The day-ahead market’s average price for electricity has set a new low, falling, today, to 58.44 euros per MWh, from 204.40 euros per MWh just days ago. It should be noted that suppliers take into account a broader time period when calculating their prices for each forthcoming month.

The TTF gas index has also plunged in recent weeks to levels of between 55 and 60 euros per MWh, well below levels of 150 euros per MWh in December.

 

Greek electricity cost Europe’s third highest, despite huge subsidies

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The cost of electricity for Greek households is currently ranked third-highest in Europe, following Portugal and Norway, despite the government’s enormous subsidy support packages, if taking into account the subdued purchasing power of local consumers, a study by ACER, Europe’s Agency for the Cooperation of Energy Regulators, has shown.

The ACER ranking takes into account taxes, surcharges and subsidies. The cost of electricity in Greece has consistently ranked highly in Europe over the years, given the country’s relatively lower income levels.

The enormous amount of electricity subsidies offered to consumers by the Greek government over recent months has not stopped the country’s rise in the rankings. In 2020, electricity cost for households in Greece was Europe’s fifth-highest, after factoring in income levels, but has now risen to third place.

Electricity subsidies offered in Greece are Europe’s highest, as a percentage of GDP, reaching 3.5 percent, the ACER study showed.

Athens household power cost below European average in September

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The cost of electricity for Athenian households in September remained below the average of 33 European capitals, a latest monthly survey conducted by HEPI, the Household Energy Price Index, has shown.

Athens was ranked 16th in terms of retail electricity cost among the 33 European capitals, but rose to 11th place when purchasing power was taken into account.

Electricity cost increases continued in September in Athens and 12 other European capitals. In Athens, the cost of electricity rose 1.15 percent compared to the previous month.

As for natural gas, the setting is quite different, Athens being the 4th most expensive European capital city, following a 29 percent retail price increase in September compared to August, the third-biggest rise, according to the HEPI survey.

 

 

‘EC intervention acceptance of energy market failure’

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The European Commission has finally decided to adopt state intervention measures in energy markets, mainly electricity, after much delay, essentially accepting the failure of markets to produce desired results, Pantelis Kapros, Professor of Energy Economics at the National Technical University of Athens, has noted in an analysis.

Major energy price increases needed to spread throughout Europe for Brussels to decide to intervene, the energy expert noted.

Fixed price offers and price hedging contracts – which, in many countries, secured, over a considerable period, relatively stable retail electricity prices not reflecting rising electricity prices at energy exchanges – have become impossible to maintain as a result of the extended energy price crisis, the professor pointed out in his analysis.

Consumer prices are now skyrocketing virtually everywhere in Europe, increasing the risk of bankruptcies, a perilous situation that has prompted EU governments to push the European Commission for state intervention proposals, the professor underlined.

During this crisis, electricity markets have failed to achieve consumer prices at levels reflecting the true long-term average cost of electricity, as healthy competition would, the professor noted.

Given the exorbitant natural gas prices at present, green hydrogen would represent a lower-cost alternative, if infrastructure was in place, the professor noted, concluding green transition is the only positive way out of the problem, as has now been recognized by all.

August floating-rate electricity tariffs up 14% in Athens

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Retail electricity price increases were highest in Athens in August, a monthly 33-city Household Energy Price Index survey conducted by energy research and consultancy firm Vaasaett has shown.

Athens’ retail electricity price increase for August was estimated at 34 percent, a rise that falls to 14 percent if fixed tariffs, far more expensive, are not factored into the calculations.

In Athens, fixed-rate tariffs are priced two to four times higher than floating-rate tariff deals offered by electricity suppliers.

Athens’ 14 percent price increase in August is a more realistic result than the study’s 34 percent rise, which takes into account fixed-rate deals, as virtually all consumers are not favoring fixed-tariff agreements given the far greater cost entailed.

The study bases its results on electricity tariffs offered by respective city market leaders, based on most recent market shares.

Fixed tariff-rate electricity deals are becoming increasingly uncommon, and more expensive, throughout Europe as suppliers are hesitating to offer such deals given the heightened level of market uncertainty.

In Greece, state subsidies are only available for consumers with floating-rate tariff agreements, making fixed tariff-rate deals even less popular.

 

Athens among 4 European cities with July price cuts

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Household electricity prices in Athens fell by 7 percent in July, month to month, making the Greek capital one of just four European cities to register price reductions last month, a latest monthly survey conducted by HEPI, the Household Energy Price Index, has shown.

Retail electricity prices in Athens dropped to 0.218 euros per KWh, below the European average of 0.284 euros per KWh and slightly above the average retail electricity price for 33 cities included in the study, which ended July at 0.217 euros.

Athens was ranked 21st among the HEPI survey’s 33 participating cities in terms of retail electricity cost.

The Greek government’s electricity subsidy program for June and July exceeded 730 million euros per month and will cost over 1.1 billion euros for August.

Besides Athens, three other European cities experienced retail electricity price reductions in July: Vienna (-20%); Madrid (-12%); and Rome (-10%).

Europe’s highest retail electricity prices were recorded in London (0.630 euros per KWh); Copenhagen (0.530 euros per KWh); Rome (0.459 euros per KWh); Amsterdam (0.419 euros per KWh) and Prague (0.409 euros per KWh).

July’s biggest retail electricity price increases in Europe, according to the HEPI survey, were registered by: Vilnius (44%); Amsterdam (37%); London (25%); and Sofia (24%).

Power prices for August set at near 50 cents/KWh, over 1 billion Euros in subsidies to cover 90% of the rise

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(upd: 12:00) PPC announced its new electricity bill at 0.486 euros/MWh, while other suppliers set their own bills higher.

The minister, Kostas Skrekas, announced that subsidies for energy consumers are going to reach 1.13 billion Euros in August. The goal is to cover up to 90% of the price increase for households, through subsidizing the price with 337 euros/MWh.

Earlier, energypress wrote: 

The country’s electricity suppliers are expected to announce today their respective electricity prices for August, power utility PPC’s price level expected to be slightly below 50 cents per KWh and those of all other players slightly above this level, which, in some cases, could exceed 60 cents per KWh, sources have informed.

Suppliers are expected to post their price levels for August on their company websites from 11am onwards. Suppliers had initially been given a 9am deadline but were then offered a two-hour extension to establish greater clarity on the day’s gas prices at the Dutch TTF index.

The level of the government’s electricity subsidies, expected to be announced imminently, is a crucial factor as it will determine the eventual prices to be paid by consumers.

The government has announced it intends to offer subsidies that will lower electricity prices for consumers to pre-crisis levels of around 20 cents per KWh, meaning subsidies are likely to be worth approximately 30 cents per KWh.

Based on new market rules, suppliers must announce, on a monthly basis, their prices for the next month by the 20th day of the preceding month.

 

HEPI: Greece’s power cost in June below European average

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Electricity prices for Athenian households dropped 2 percent in June, compared to a month earlier, according to the results of a monthly study conducted by the Household Energy Price Index, covering 33 European cities.

The cost of electricity in Athens in June remained below the European average, according to the study, which ranked the Greek capital in 18th place among the 33 European cities surveyed.

Greece’s electricity subsidy program has helped contain energy costs in Athens to levels lower than many other European cities, the HEPI results highlighted.

The cost of electricity for households in Greece last month averaged 0.233 euros per kWh, below the EU-27 average of 0.2708 euros per kWh and the average of 0.256 euros per kWh for the 33 European cities included in the HEPI survey.

Helsinki and Tallinn recorded the biggest electricity price increases in June, up 14 percent, month to month, the HEPI survey showed. Minsk, Paris and Stockholm followed with 5 percent increases. Rome was next with a 4 percent increase. Riga and London recorded 2 percent increases.

On the contrary, Amsterdam recorded the biggest electricity price reduction in June, down 11 percent, followed by Berlin (7%), Oslo (4%), Vienna (3%) and Athens (2%), the HEPI figures showed.

 

Wholesale-price clause verdict quells energy-bill rebellion hopes

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An Athens Court of First Instance decision delivered yesterday, temporarily exempting only vulnerable households from electricity-bill increases triggered by a power utility PPC wholesale-price clause included in the company’s bills, comes as a firm warning that subdues the hopes of consumers believing they could get away with unpaid energy bills.

Two consumer protection groups, Ekpoizo and Inka, had filed a case requesting a temporary suspension of electricity supply cut orders in cases concerning consumers who refuse to pay increased energy costs resulting from PPC’s wholesale-price clause in electricity bills.

According to the Athens court’s decision, vulnerable households will not face electricity supply cuts until the issue has been finalized through a Supreme Court decision at a latter date.

Individuals with serious health issues, households under the energy-poverty line, as well as elderly citizens aged 70 and above were already treated with greater tolerance prior to yesterday’s court decision.

The verdict eases authority fears of a rise in a movement of consumers not willing to cooperate, or fully cooperate, on energy-bill costs, a danger that could eventually create systemic problems in the energy market.

Electricity cost up 13% in May, Athens prices among Europe’s lowest

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The cost of electricity for households in Athens increased by 13 percent in May, compared to the previous month, but prices in the Greek capital remain among Europe’s lowest, according to a monthly study conducted by the Household Energy Price Index, covering 33 European cities.

Ljubljana registered the biggest electricity price increase for households in May, up 29 percent, followed by Riga (26%), Dublin (18%), Athens (13%) and Prague (6%).

In terms of electricity price levels in May, Athens was ranked 16th among the 33 cities on the HEPI list, with a price of 0.2377 euros per KWh, below the EU-27 average of 0.2717 euroe per KWh.

The cost of electricity in London in May was 0.4975 euros per KWh, followed by Rome (0.4932 euros per KWh), Copenhagen (0.4871 euros per KWh) and Vienna (0.4744 euros per KWh).

Athens’ relatively lower price in May was attributed to the government’s subsidy policy, while the 13 percent price increase in May resulted from a reduction of subsidies in May compared to April as a result of a de-escalation in wholesale electricity prices.

The Greek government’s subsidy package for June will be worth slightly less than that of May.

Applications for installment-based electricity bill payments doubled

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The number of electricity consumers applying for installment-based settlement of electricity bills has doubled over the past four months, market officials have informed.

Households are now needing to deal with electricity bills representing the late-winter period of what was a long winter. Low temperatures persisted throughout March, prompting high electricity consumption levels amid a market of exorbitant tariff levels.

Independent electricity suppliers are reported to be offering troubled consumers installment-based payback arrangements of between three to five monthly installments.

Power utility PPC is offering customers monthly installment payback plans over as many as 24 months, depending on the amount owed.

 

January subsidies lower Greece’s energy cost ranking

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Greek State electricity subsidies offered to consumers in January improved the country’s energy-cost ranking in Europe by 20 places, lowering its ranking to 22nd, following a top-three ranking a month earlier, according to lists published by ACER, Europe’s Agency for the Cooperation of Energy Regulators as well as the Austrian and Hungarian regulatory authorities for energy.

Electricity bill costs in Greece last month would have been 40 percent higher without the support of state subsidies, it has been estimated.

Greece’s average price for a kilowatt hour in January, 18.5 cents, following state subsidies, would have reached a level of 25 to 26 cents without the state’s subsidy support.

Electricity prices in the German capital Berlin were Europe’s highest in January, increasing 38 percent in a month to 50 cents per kWh. London was ranked second with 47.11 cents per kWh, followed by Copenhagen, at 46.69 cents per kWh.

Although Greece’s electricity market continues to be troubled by serious structural issues, leading to wholesale prices well above those of other European countries, domestic retail electricity prices remained 25 percent below January’s EU average of 26.07 cents, based on figures of 33 cities, and the EU-27 average of 24.67 cents.

However, overall amounts spent by the Greek state and consumers to cover electricity bills are among Europe’s highest.

As for the natural gas market, Greece’s retail price for households was one of the lowest in Europe in January, despite a 25 percent increase in January.

 

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.

Subsidies over €1.5bn in ’22, to avoid inflationary pressure

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The government’s electricity bill subsidies in 2022 will exceed a total value of 1.5 billion euros and, besides households and small businesses, also include medium and high-voltage consumers, according to sources.

Government officials, including energy minister Kostas Skrekas, the energy ministry’s secretary-general Alexandra Sdoukou, deputy finance minister Theodoros Skylakakis, RES market operator DAPEEP’s chief executive Giannis Giarentis and Regulatory Authority of Energy (RAE) chief executive Athanasios Dagoumas, have just held a meeting in search of measures offering protection to consumers against exorbitant energy prices, expected to remain elevated in the first few months of the year.

Final details on the new subsidy package for electricity bills are expected to be set within the coming days before it is announced during the first week of January by the energy and finance ministries.

The plan is expected to include a mechanism automatically calculating subsidies for retail electricity, over a one or two-month period, when wholesale electricity prices exceed a certain level.

Besides offering consumers some energy-crisis relief, the support package’s aim will be to help enterprises avoid increasing prices of products and services, which would prompt inflationary pressure, should energy prices not de-escalate in the coming months.

 

Cretan diesel output costing less than supply from mainland

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Cretan electricity demand through the island’s grid interconnection with the Peloponnese has fallen to its lowest level since the line’s recent launch as electricity currently costs less to generate at the island’s diesel-fueled facilities than to bring in from the mainland through the interconnection.

Cretan electricity demand through the Crete-Peloponnese interconnection fell to approximately 18 GWh in November, the lowest since the line’s launch several months ago, according to data provided by power grid operator IPTO in a monthly report.

Demand for electricity through the mainland link was well above this level in preceding months. In July, when the interconnection was launched, demand reached 48 GWh, rose to 64.6 GWh in August, peaked at 65.2 GWh in September and eased to 50 GWh in October before plummeting to November’s level of 18 GWh.

Electricity prices on the mainland are the main reason behind this sharp decline, a bigger factor than the demand drop following the tourism-related peak, market officials noted.

Diesel prices have risen only mildly compared to the skyrocketing wholesale natural gas prices of recent months that have prompted an electricity price surge as about half the country’s electricity is generated at natural gas-fueled power stations.

The potential benefits of Crete’s grid interconnection with the mainland cannot be disputed in the long term, when RES units are expected to dominate generation and energy storage capacity will have grown, the officials pointed out.

 

Further 15% electricity rise in January, unpaid bills a threat

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The continuing rise of natural gas prices, prompting higher electricity prices around Europe as Russia holds back on full supply to the continent over its Nord Stream 2 certification dispute with the EU and the European Commission appears to have run out of possible remedies, threatens to push electricity prices even higher in January, by as much as 15 percent.

Any government support through energy subsidies seems futile under these continually worsening market conditions.

A typical household consumer who was charged a tariff rate of 24.5 cents per KWh in December will, under the current conditions, face a tariff level of 28.4 cents in January, a 16 percent increase.

At the Greek energy exchange, wholesale electricity prices yesterday settled at an exorbitant level just short of 416 euros per MWh, after peaking at 542 euros per MWh for an hour, a rise prompted by Monday’s wholesale natural gas price of 146 euros per MWh.

The problem is affecting all of Europe, the energy price surge continuing around the continent. The EU has maintained a relatively passive stance despite Europe’s rising energy poverty. In Greece, the threat of a new round of unpaid receivables for suppliers is intensifying. This would be a destabilizing development for the market.

Government officials estimate that a wholesale natural gas price average of 70 euros per MWh in 2022, up from 20 euros per MWh in 2020, a year of lockdowns, would deprive the GDP of more than four billion euros. This figure could double if current conditions are sustained.

 

Subsidy mechanism for energy market’s turbulent years ahead

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The energy market faces an extended period of fluctuating electricity prices and adverse market conditions that will require ongoing subsidy support for consumers over the next decade, government officials have noted.

The finance and energy ministries are working together on the establishment of a subsidy-support mechanism as electricity-bill aid for vulnerable households and, possibly, enterprises, until 2030.

Officials from these ministries attributed the precarious situation to delayed RES penetration and a lack of energy storage development in previous years, noting, as an example, the delayed underground natural gas storage facility (UGS) at the almost depleted natural gas field of “South Kavala” in the Aegean Sea’s north, whose utilization would subdue energy price increases.

The acceleration in the installation of RES units and energy storage systems has become a leading priority for the government.

Suppliers, covering December subsidies, face greater pressure

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Increasing wholesale electricity prices, appearing likely to rise to levels of between 330 and 340 euros per MWh in in January, according to energy exchange indications, threaten to place increased pressure on both consumers and electricity suppliers.

Suppliers are reaching cash-flow limits as they have been forced to temporarily cover December’s electricity-bill subsidies offered by the government to consumers before they are compensated in June next year.

The government has so far covered subsidies offered to households for the months of September, October and November this year, leaving December’s subsidy cost for suppliers, until they are compensated midway through 2022.

Given December’s increased electricity consumption, suppliers estimate they will need to temporarily cover between 40 and 45 percent of the government’s four-month subsidy program cost for consumers.

This increased pressure is seen as a major threat for energy market stability if some of the suppliers, already struggling with narrower profit margins in the energy crisis, are unable to cope with yet another burden.

Given the persistence of higher energy prices, the government is believed to preparing further subsidy support, under revised terms, for household consumers in the first quarter of 2022.

Electricity bills now hit by record CO2 prices, at over €81 per ton

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CO2 emission right prices are soaring, breaking one record after another to exceed levels of 81 euros per ton and looking likely to rise even higher, which comes as a new round of upward pressure for household and business electricity bills, already severely impacted by the surge in natural gas prices.

CO2 emission right prices have now doubled since April, when prices were at levels of about 40 euros per ton.

CO2 emission right prices are now approaching the levels reached by natural gas on the Dutch TTF platform, seen reaching levels of between 80 and 90 euros per MWh in the short term.

Though electricity price levels have slightly deescalated so far in December, to 217.26 euros per MWh from 230 euros per MWh five days earlier, will make little difference to retail prices, analysts have noted.

Energy company officials believe a a drop in electricity prices is possible in spring, but not all the way down to pre-energy crisis levels.

These officials are also anticipating energy crises to become a regular occurrence that will keep pressuring households and businesses.

 

Wholesale power price average up to €233/MWh in November

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Wholesale electricity prices averaged 233.80 euros per MWh in November, up 18 percent compared to the previous month’s average of 198.32 euros per MWh, energy exchange data has shown, a rise expected to trigger a new round of price rises in the retail electricity market.

Wholesale electricity prices have remained high so far this month, but a slight de-escalation has been experienced compared to November’s levels.

The average day-ahead market price average for today is 216.18 euros per MWh, slightly below the average of 226 euros per MWh for the first six days of the month.

Elsewhere in Europe, even higher prices have been registered, reaching levels of nearly 300 euros per MWh in some parts of the continent.

The Greek government’s decision to offer subsidies worth 39 euros per month promises to offer some relief for household consumers.

Responding to wholesale electricity price rises registered in October, the energy ministry decided to increase its subsidy offer to cover wholesale price levels as high 220 euros per MWh.

The government has not ruled out the possibility of further increasing its subsidy package, if deemed necessary.

In addition, the administration is also working on a mechanism that will be designed to intervene automatically to increase subsidy levels, taking into account wholesale electricity price levels and the RES special account surplus.

 

Power suppliers following up bloated bills with installment payback offers

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Electricity suppliers are following up their delivery of greatly increased energy bills to household customers with telephone calls offering installment-based payment terms as a preemptive move to avoid a new wave of unpaid receivables amid the energy crisis and loss of customers.

These suppliers, mostly companies that are part of vertically integrated energy groups, are contacting customers who have received monthly electricity bills at unprecedented levels of 200 euros or more, still not overdue, to offer installment-based terms, energypress understands, following feedback from consumers.

Customers are being offered a choice in the number of installments they prefer for their payback programs, while some suppliers are also offering interest-free credit card payments, energypress was informed.

 

 

Electricity suppliers reshaping pricing policies, wholesale cost up to new high

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The ongoing surge in wholesale electricity prices, now over 204 euros per MWh, a new record level, has astonished even the most seasoned company managers.

“The day-ahead market price surge to such levels has prompted great uncertainty as to what lies ahead,” one highly ranked official at a vertically integrated energy group told energypress

Responding to the wholesale market’s latest record-breaking level, an official at another energy group active in production and supply told energypress that suppliers are now recalculating their pricing policies from scratch.

Without a doubt, the electricity supply market has entered unchartered territory as the upward trajectory in prices, sparked by an unfavorable combination in international markets, appears to be unstoppable.

Company officials have admitted they have no choice but to pass on the majority of the price increase to their customers.

Some companies are cutting back on big discount offers extended to attract customers.

 

 

 

Power bill subsidies increased, gas cost support also expected

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The energy ministry is preparing to increase an electricity-cost subsidy package to between 280 and 300 million euros, from a 200 million-euro sum announced last month by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair, as a result of the continuing surge in energy costs, which, if not combated, could have political ramifications.

The ministry’s response comes following the announcement of September’s increase in the wholesale electricity price average, the latest in a series of monthly rises. Wholesale electricity prices averaged 134.73 euros per MWh in September, up from 121.72 euros per MWh in August and 101.86 euros per MWh in July, all well over the January average of 52.52 euros per MWh.

Finalized decisions on the subsidy support package have yet to be taken but officials have already agreed to draw the amount to be provided to consumers from the Energy Transition Fund.

The expected subsidy increase for electricity consumption would result in support worth between 40 and 45 euros per MWh, instead of 30 euros per MWh, effectively resulting in a monthly electricity bill reduction of 14 to 15 euros for consumers.

The government is also looking to subsidize natural gas bills through an additional support package expected to be worth roughly 150 million euros. Retail natural gas prices have risen by approximately 500 percent since the beginning of the year.

Doubled gas prices for winter start, electricity cost soaring

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Energy consumers of all categories are heading into the winter season facing doubled natural gas prices compared to a year ago, a growing problem for the government that could have political repercussions.

EU leaders are scrambling for solutions to quell an unfavorable combination of factors in international markets that have sparked this extreme situation, pushing the energy market beyond control.

Indicatively, one of the country’s major natural gas suppliers has just set retail tariffs at around 9 to 9.5 cents per KWh, up from 4.5 cents a year earlier. Things could get worse in the winter.

The situation is also alarming in the electricity market where retail price increases of approximately 40 percent in October could rise by just as much in the next few weeks.

The wholesale electricity price for today is at 178.29 euros per MWh. The November price surge for natural gas futures contracts, up 20 percent in just one day, yesterday, would increase next month’s wholesale electricity prices to levels of 255 euros per MWh if the overall situation remains unchanged.