electricity suppliers

RAAEY demands notification on upcoming billing changes

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Preparations by RAAEY, the Regulatory Authority for Waste, Energy and Water, for the retail electricity market’s return to post-crisis normality include a framework with rules requiring suppliers to fully inform consumers, both households and businesses, on changes that will be brought about to their supply agreements by the reactivation of indexation clauses as of January 1.

Suppliers will need to pre-notify consumers by November 1 on terms set to be introduced, including any revisions to older terms. Indexation clauses were suspended in August, 2022, when energy-crisis measures were introduced.

The RAAEY framework will also include a new tariffs sub-category for mixed products, or tariffs that will remain fixed for monthly consumption levels up to a certain limit before becoming variable from this limit upwards.

Debt-flagging system for electricity market ‘imminent’

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A debt-flagging system to be made available to electricity suppliers as part of an effort to counter serial electricity-bill defaulters could be ready imminently, within the next month or two, officials at distribution network operator DEDDIE/HEDNO and RAAEY, the Regulatory Authority for Waste, Energy and Water, agreed during a meeting on Wednesday that included electricity supplier representatives as observers.

RAAEY presented a comprehensive plan for the development of a debt-flagging system, which DEDDIE/HEDNO officials ascertained could be ready for launch one to two months from now, sources informed.

However, DEDDIE/HEDNO clarified that it cannot take any responsibility for data to be posted on the debt-flagging system as it has no way of verifying its validity, the sources added.

As this data will be provided by electricity suppliers, establishing a transparent formula is crucial to ensure the operator will not be held accountable in the event that a consumer is erroneously marked as delinquent in the system due to a supplier’s mistake, and, as a result, suffers unjust repercussions without actually having outstanding debts.

Electricity suppliers are facing a surge in bad debts resulting from customers who opt to switch companies and leave behind unpaid bills, while just one in ten non-punctual consumers who have been blacklisted by suppliers and subsequently resorted to the country’s universal electricity supply service – offered, by law, by the top five suppliers – are paying fees for this service.

Electricity debt-flagging details discussed by officials today

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The technical details and preparation time for a prospective debt-flagging system to be made available to electricity suppliers as part of an effort to counter strategic electricity bill evaders will be discussed at a meeting today between RAAEY, the Regulatory Authority for Waste, Energy, and officials of distribution network operator DEDDIE/HEDNO, to manage the new system.

Representatives of independent suppliers and power utility PPC are anticipated to take part in today’s meeting, serving as a follow-up to a broader industry-wide discussion regarding electricity bill evasion that took place last week.

It was decided, during last week’s meeting, that RAAEY would provide  the energy ministry, by October 20, with a proposal for a revision to Article 42 of the supply code in the electricity market. This revision will aim to prevent strategic defaulters who owe unsettled amounts from switching to new electricity suppliers without addressing their outstanding bills.

RAAEY will use, as a template, a preceding plan it had prepared and delivered to the energy ministry in the spring of 2021, following three rounds of consultation.

ESPEN, the Greek Energy Suppliers Association, plans, this week, to submit to RAAEY a proposal seeking to allow electricity suppliers to discontinue supply to customers who have two overdue electricity bills, energypress sources informed.

Power utility PPC keeps October tariffs unchanged

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Power utility PPC, the Greek retail electricity market’s dominant player, has announced unchanged nominal tariffs for October.

PPC’s October tariff, for monthly consumption of up to 500 kWh, was left unchanged at 15.5 cents per kWh, as was the supplier’s tariff for consumption levels exceeding this limit, unchanged at 16.7 cents per kWh. The supplier also set a nighttime consumption rate of 11.4 cents per kWh.

Local electricity market rules require suppliers to announce nominal tariffs – not including subsidies – for each forthcoming month by the 20th of every previous month.

Elsewhere, Elpedison set a tariff of 8 cents per kWh for its Value program. Heron announced an October tariff of 13.32 cents per kWh for its Simply Generous Home offer, including a 15 percent quantity-indexed discount, applicable six months on. Heron’s new Generous Guarantee Home program, combining a tariff upper limit of 17 cents per kWh and a punctuality discount of 10 percent, was set at 8.55 cents per kWh.

Protergia announced a rate of 8.88 cents per kWh for its Value Plus package. Watt+Volt announced a nominal tariff of 8.88 cents per kWh for its Value+ program. NRG set a tariff of 8.7 cents for its On Time+ program, including a 40 percent punctuality discount.

Zenith announced a rate of 7.9 cents per kWh for its Power Home for All program and a nighttime tariff of 6.9 cents per kWh. The supplier’s Power Home Go Electric program offers a daytime tariff of 7.5 cents per kWh and a nighttime rate of 6.5 cents per kWh.

Volton set a tariff of 9.45 cents per kWh, including a punctuality discount, for its Volton Energy Control program, whose rate without the discount works out to 12.60 cents per kWh. The company’s new Volton Energy Free program, offered free for the first month and including a punctuality discount, was set at 9.92 cents per kWh. This package’s tariff without the punctuality discount is 12.4 cents per kWh.

Fysiko Aerio kept its October tariff unchanged, offering a rate of 12.4 cents per kWh for its Maxi Free+ program, which, when factoring in an attached punctuality discount, drops to 9.2 cents per kWh.

Elin lowered its October tariff for the company’s Power On! Home Bonus package by 5 percent. As a result, the current month’s tariff of 13.5 cents per kWh for this package will be reduced to 12.8 cents per kWh, including a punctuality discount, in October.

RAAEY proposal tackling ‘energy tourism’ in a month’s time

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RAAEY, the Regulatory Authority for Waste, Energy and Water, commissioned by the energy ministry to prepare a proposal for revisions to the electricity market’s supply code as a means of countering a surge in bad debt faced by electricity suppliers as a result of roving customers who are switching suppliers and escaping from unsettled electricity bills, will put forward its plan for a five-day consultation period, October 9 to 13, before finalizing its text and forwarding a completed version to the ministry by October 20.

This schedule was established at a RAAEY meeting yesterday with energy ministry officials and representatives of the country’s electricity suppliers.

RAAEY will use, as a template, a preceding plan it had prepared and delivered to the energy ministry in the spring of 2021, following three rounds of consultation.

At yesterday’s meeting, electricity supplier representatives raised objections to certain aspects of the existing plan and, it was agreed, will deliver proposed amendments by the beginning of next week. These concerns will be taken into consideration by RAAEY before it finalizes its proposal for the energy ministry.

Power utility PPC and independent suppliers are expected to forward their concerns through ESPEN, the Greek Energy Suppliers Association.

Revisions to the electricity market’s Article 42 of the supply code, which would stop strategic defaulters from fleeing to new electricity suppliers, will include a debt-flagging system, a key part of the previous proposals. This system will be managed by distribution network operator DEDDIE/HEDNO.

Under current market rules, consumers with unpaid electricity bills remain free to switch suppliers. Resulting bad debt is estimated to have reached at least 300 million euros and may have even exceed 400 million euros.

Officials meet on revisions addressing ‘energy tourism’

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The energy ministry, preparing action to combat a surge in bad debt faced by electricity suppliers as a result of roving customers who are switching suppliers and escaping from unsettled electricity bills, has commissioned RAAEY, the Regulatory Authority for Waste, Energy and Water, to prepare a relevant study leading to revisions.

RAAEY plans to host a meeting today with energy ministry officials and representatives of all the country’s electricity suppliers ahead of the planned revisions.

The ministry intends to revise Article 42 of the Supply Code, which would stop strategic defaulters from fleeing to new suppliers if they have not covered outstanding energy bills.

Under current market rules, consumers with unpaid electricity bills remain free to switch suppliers. Resulting bad debt is estimated to have reached at least 300 million euros and may have even exceed 400 million euros.

Bad debt recorded by electricity suppliers has risen to 3 percent of their revenues, up from 1 percent not too long ago.

Also, financial losses resulting from the failure of most consumers to pay for a universal electricity supply service offered, by law, to blacklisted customers by the top five suppliers, based on market share, is distorting the market. The service’s participating suppliers are consequently forced to pass on losses incurred to punctual customers, market officials have noted.

The ministry is planning revisions for both Article 42 of the Supply Code and the universal electricity supply service.

Energy company NRG’s general manager Anastasios Lostarakos recently highlighted the need for action, in the form of legislative revisions, to tackle irregularities, significantly burdening suppliers. The longer the issue remains unaddressed, the deeper the financial hole for suppliers, he noted.

 

Suppliers face bad-debt surge created by roving customers

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Electricity suppliers are facing a surge in bad debts resulting from customers who opt to switch companies and leave behind unpaid bills, while just one in ten non-punctual consumers who have been blacklisted by suppliers and subsequently resorted to the country’s universal electricity supply service – offered, by law, by the top five suppliers – are paying fees for this service.

Energy company NRG’s general manager Anastasios Lostarakos, speaking to journalists at the Thessaloniki International Fair, highlighted these concerns and stressed the need for action, in the form of legislative revisions, to tackle irregularities, significantly burdening suppliers.

Article 42 of the country’s Supply Code requires immediate amendment so that suppliers may be protected from customers switching suppliers, despite facing unpaid electricity bills, Lostarakos noted. The longer the issue remains unaddressed, the deeper the financial hole for suppliers, he added.

Bad debt recorded by electricity suppliers has risen to 3 percent of revenue, up from 1 percent not too long ago, the NRG official highlighted. Also, financial losses resulting from the failure of nine in ten consumers to pay for the universal electricity supply service end up being passed on, by the participating suppliers, to punctual customers, the NRG official noted.

Power suppliers’ windfall tax imminent, to raise up to €275m

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The government is preparing to introduce a windfall profit tax on electricity suppliers for earnings between August, 2022 and June, 2023, which is expected to rake in up to 275 million euros in tax revenue, calculations have indicated.

The energy ministry, now set to co-sign a joint ministerial decision that will enable the tax measure’s introduction, has received relevant financial data provided by electricity suppliers to determine if an existing tax formula shaped for the measure will need any revising as a result of the time that has elapsed since its establishment.

Under the current plan, the windfall tax formula will be applied in segments to calculate taxes covering an initial five-month period from August to December last year, and then over two successive three-month periods running from January to March, 2023 and April to June, 2023.

The tax measure could also be applied over one eleven-month period, but this would require a legislative revision.

If implemented in fragmented fashion, as currently planned, the tax measure is seen raising approximately 275 million euros, while, if applied over one continual period, the measure would raise roughly 250 million euros.

Electricity suppliers will be expected to make immediate payments covering 60 percent of any resulting windfall tax amounts, followed by the other 40 percent at latter dates.

Tax revenue raised through this extraordinary measure is planned to be injected into the country’s Energy Transition Fund.

Delayed operator settlements troubling power suppliers

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Payment delays by distribution network operator DEDDIE/HEDNO and power grid operator IPTO to electricity suppliers for finalized amounts regarding transactions between them, and which cannot be recovered through customer billing, are developing into a major concern that has sparked a response.

ESPEN, the Greek Energy Suppliers Association, intends to soon forward a letter of protest concerning these payment delays to RAAEY, the Regulatory Authority for Waste, Energy and Water, and the energy ministry.

Apart from the payment delays, charges suppliers end up needing to cover are significantly higher than amounts calculated by them based on preliminary figures.

ESPEN, in its letter, is also expected to highlight the need for an improvement of formulas applied by IPTO and DEDDIE/HEDNO, so that such discrepancies can be restricted.

Due to long periods that have elapsed, delayed finalized amounts anticipated by suppliers cannot be recovered through customers who have consumed corresponding amounts of energy and, in addition, may have switched suppliers in the process.

Small-business subsidy returns solution sought for electricity suppliers

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The energy ministry and ESPEN, the Greek Energy Suppliers Association, have held talks in search of a solution that would reimburse electricity suppliers for electricity subsidies they have provided, on behalf of the Greek State, to small businesses supplied up to 35 kVA, as well as all bakeries, regardless of supply capacity.

The total amount owed by the Greek State to electricity suppliers is estimated to have reached 800 million euros and has been pending for many months, despite the fact that this outstanding sum has been fully recognized, including legally.

Under the current reimbursement procedure, the Greek State only reimburses electricity suppliers for customers who have submitted formal declarations to RES market operator DAPEEP, managing the Energy Transition Fund that covers subsidies, once these formal declarations have been checked.

However, most customers tend to neglect filling in and forwarding these required formal declaration forms, hindering the reimbursement procedure.

An initial Brussels-approved subsidy support program for small businesses ran from February to November last year and has since been extended on a monthly basis.

Ministry preparing to toughen up on electricity theft

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The energy ministry is preparing to take strict action in an effort to combat electricity theft, a rising concern now estimated to represent 5 percent of electricity market revenue. Some 13,000 power meter breaches were reported last year by DEDDIE/HEDNO, the distribution network operator.

Energy ministry officials held talks yesterday with representatives of RAAEY, the Regulatory Authority for Energy, Environment, and Water, DEDDIE/HEDNO and electricity suppliers to discuss an action plan.

Besides tougher rules resulting in stricter penalties for electricity theft, energy market authorities also aim to take further action on two fronts.

DEDDIE/HEDNO, it has been decided, will install smart meters at all shops, especially in sectors where a greater number of electricity-theft cases have been observed, such as hospitality.

Smart meters provide real-time data on electricity consumption, making it easier to detect any unusual or unauthorized usage patterns.

Officials have also agreed to take action at Roma camps, where electricity theft has been rampant, by converting overhead power line crossings into underground networks.

Electricity suppliers call for supply code overhaul

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Electricity retailers share the same view as RAAEY, the Regulatory Authority for Energy, Environment, and Water, and the energy ministry in wanting the country’s new supply code to be revamped into a modern framework for the energy sector rather than a mere update of the existing set of rules, a teleconference between the authority and suppliers has highlighted.

Suppliers called for changes to most articles of the country’s current supply code. The teleconference was held as RAAEY is currently preparing a related proposal for the energy ministry. According to a related ministerial decision, the new supply code needs to be implemented by the end of the year.

RAAEY’s proposal will need to be ready for consultation by the end of November, according to market officials.

Given this time frame, RAAEY will need to get to work on revisions to the existing supply code within the next few days.

A common grievance voiced by electricity suppliers during yesterday’s teleconference included the absence of regulations that prevent consumers with outstanding electricity bills from switching to different suppliers.

The ease with which blacklisted household and business consumers who have been shunned by electricity suppliers over payment failures can resort to the country’s universal electricity supply service, provided – by law – by the electricity market’s top five suppliers, was another concern highlighted by power suppliers.

The extent of revisions needed to the supply code means that it could need to be rewritten from scratch.

Given the demands of such an overhaul, some suppliers have proposed that the effort be carried out over two stages, with priority given to more crucial matters, so that they may be implemented by the end of the year.

Ministry planning 4-month limit on universal supply service

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The energy ministry plans to impose a four-month limit on the use of the country’s universal electricity supply service by black-listed household and business consumers who have been shunned by suppliers over payment failures.

The ministry has already forwarded a draft of its plan to all electricity suppliers for comments, by the end of this week, following a short extension, before it finalizes the revised service rules.

At present, black-listed consumers no longer accepted by electricity suppliers can rely on the universal electricity supply service for unlimited periods.

Provided collectively – by law – by the electricity market’s top five suppliers, based on market share, the universal electricity supply service has grown to become a key supplier.

According to most recent related data provided by RAAEY, the the Regulatory Authority for Energy, Environment, and Water, the universal electricity supply service served 210,415 power meters in May. This is nearly ten times over the total of roughly 22,500 power meters served a decade ago.

Market’s return to normality to include tariff transparency plan

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RAEEY, the Regulatory Authority for Waste, Energy and Water, is preparing measures for the retail electricity market’s return to normality, scheduled for January 1, following a recent extension of suspended indexation clauses until the end of the year.

More specifically, the authority has two decisions in the pipeline. The first decision pertains to the implementation of tariff transparency labeling. The second decision concerns establishing a framework for the retail electricity market’s return to normality at the beginning of 2024.

The authority plans to introduce the use of specific colors for documents containing pre-contractual information in order to help consumers easily identify categories of supply contracts available on the market and understand their charges. Fixed and variable tariffs, for example, will be associated with documents of specific colors.

The authority recently announced an initial plan including four types of electricity supply products – a variety of variable and fixed tariff options – but RAAEY officials have since clarified it was merely indicative as electricity retailers will retain the autonomy to customize and shape their product offerings according to their preferences.

 

Ministry preparing debt-flagging data system for 2024

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Recently appointed energy minister Theodoros Skylakakis expects to have a detailed draft for a debt-flagging data system covering the energy market by September, the official has reiterated in comments to local media over the past fortnight.

The prospective debt-flagging data system, a topic discussed for years by market officials as a solution to the accumulation of unpaid receivables burdening energy suppliers, would detail energy-bill payment records of consumers for all market players to see.

Once introduced, the debt-flagging data system, to be fashioned in the style of an equivalent system used by the banking sector, would enable energy suppliers to check consumer payment records before they sign up new customers.

Following years of hesitation, rival electricity suppliers now appear far more willing to cooperate on the implementation of a debt-flagging data system as all have been victims of runaway consumers exploiting loopholes to switch suppliers despite owing previous energy-bill amounts.

The local retail energy market’s unpaid receivables, including amounts that have gone down as bad debt, have ballooned to exceed one billion euros.

It remains unclear if the energy market’s debt-flagging data system will be launched this year or next, but the latter appears most probable as work is still required to finalize the plan.

One thing for certain, the energy market’s rules will change. Current rules do not restrict consumers from switching suppliers, even if they are behind on energy bill payments to existing suppliers.

The problem worsened for suppliers approximately a year ago, when the government, as part of a package of energy crisis measures, included a rule amendment permitting consumers to switch suppliers without incurring penalties for premature withdrawals from contracts.

Ministry planning two-pronged attack on strategic non-payers

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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.

 

 

 

 

Low-income household, non-payer measures in the making

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The government plans to soon announce new electricity market measures addressing two extremes, low-income households requiring support and strategic non-payers fleeing from their obligations.

Prime Minister Kyriakos Mitsotakis, who discussed measures concerning both issues during a recent meeting at the energy ministry, is expected to announce new measures at September’s Thessaloniki International Fair.

Low-income households are expected to be offered further protection against high energy costs, while strategic non-payers exploiting market rule loopholes to switch suppliers despite owing amounts to previous suppliers will face tougher rules.

The support measures for low-income households will include energy-cost relief for large families, while the government’s toughened stance against strategic non-payers will include rewards for punctual payers.

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.

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

Power suppliers seen lowering August tariffs by up to 5%

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A large number of electricity retailers are expected to announce reduced tariffs for August, driven by lower wholesale natural gas costs, down to roughly 25 euros per MWh from recent levels of between 32 and 35 euros per MWh at the TTF index.

The tariff drop, expected to reach as much as 5 percent, including discounts, should result in a retail price range of between 0.07 and 0.175 euros per KWh for consumers.

By law, suppliers need to announce their nominal tariffs – not including subsidies – for every forthcoming month by the 20th of each previous month.

It remains unknown if the energy ministry will offer consumers electricity subsidies for August. If it chooses to do so, the aforementioned price levels will drop even lower.

Meanwhile, the government will soon need to make decisions concerning the electricity market’s transition from subsidy support for consumers to the return of indexation clauses, currently suspended.

According to sources, the energy ministry has yet to make final decisions and is discussing details with RAAEY, the Regulatory Authority for Waste, Energy and Water.

Most electricity suppliers have called for a gradual crossover through maintenance of the current framework for an additional two to three months beyond September 30, when emergency measures are scheduled to end.

Electricity suppliers windfall tax back on track after voting

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A joint ministerial decision needed from the energy and finance ministries so that RAAEY, the Regulatory Authority for Waste, Energy and Water, can proceed with a formula taxing any windfall earnings accumulated by electricity suppliers since August, 2022, when emergency measures were introduced in the retail electricity market, is close to being finalized.

The recently re-elected conservative New Democracy party’s government had planned to implement the tax measure prior to the country’s recent two rounds of general elections, in May and June, but election-related interferences delayed the plan.

At this stage, it is not clear if the tax measure’s planned duration, from August to December, 2022, will be maintained or extended to also cover part of 2023. Related legislation for the original five-month period has been ratified. A legislative revision would be required if authorities decide to extend the tax measure’s duration.

A longer windfall taxation period would ensure a fairer balance of amounts electricity suppliers may need to pay.

A 25-euro per MWh upper limit subjecting supplier earnings beyond this level to the windfall tax had been established prior to the elections and seems unlikely to be changed.

Transitional post-crisis period of variable tariffs considered

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The energy ministry is examining the prospect of bridging, over a two to three-month adjustment period, the country’s return to a normalized electricity market, once emergency measures that were introduced early in the energy crisis are eventually lifted, most probably on September 30.

The ministry is considering to introduce transitional tariffs for this adjustment period, which would begin October 1, in the form of variable tariffs whose price levels would be announced by suppliers on the 1st of each month.

The proposed adjustment period would offer consumers a smoother crossover from the current setting of emergency measures – they include a suspension of indexation clauses – to normalized market conditions as it would result in a supplier tariff-setting procedure that is similar to the current system.

Monthly tariff announcements by electricity suppliers would be made at the beginning of each month, compared to the 20th of each previous month, as is the case at present.

An adjustment period would provide suppliers additional time to finalize their post-crisis tariffs, while also giving electricity users sufficient time to choose supplier and product once the transition period has ended.

Details concerning a pricing formula that could be applied during the transition period have not been released.

 

New minister aims to clamp down on supply switchers with debt

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Electricity market rules will be revised to stop consumers from manipulating legal inadequacies in order to avoid servicing bills, the reelected conservative New Democracy party government’s newly appointed energy minister Theodoros Skylakakis has indicated in his policy statement, presented during a three-day parliamentary debate.

A considerable number of low-voltage energy consumers are capitalizing on the liberty offered by an existing rule that enables them to switch to other suppliers without having settled previous power bills.

Unpaid receivables are estimated to have ballooned to approximately 500 million euros during the energy crisis.

Three years ago, the Council of State, Greece’s supreme administrative court, cancelled a ministerial decision that forbade energy users from switching to other suppliers if they had not settled previous electricity bills, either through full payment or commitment to installments.

In addition, penalties for consumers switching suppliers prematurely, before the expiration of supply agreements, were abolished last year.

These developments have prevented suppliers from being able to order supply cuts, through the market operator, for departing consumers leaving behind unsettled power bills.

RAAEY, the Regulatory Authority for Waste, Energy and Water, had put through consultation, three years ago, a debt-flagging proposal that was not adopted. Under that plan, consumers failing to meet extended, follow-up deadlines for unpaid electricity bills would have been subject to supply cuts and stopped from switching suppliers.

Suppliers preparing offers for new market conditions

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The retail electricity market’s imminent new reality, to be established once emergency measures have been terminated, will bring about a new generation of tariff offers which suppliers have been working on feverishly over recent months.

These can be grouped in three categories offering cost-plus variable tariffs, a variety of packages based on indexation clauses, as well as fixed tariffs for short-term periods, usually one or three months long.

Emergency energy market measures, introduced last year to help combat the effects of the energy crisis, will be lifted either October 1, according to plans by authorities, or December 1, as many suppliers are seeking an extension to prepare for new market conditions that will no longer offer consumers subsidy support.

Electricity suppliers will look to establish tariff-related that are as simple as possible for consumers to understand, the intention being to facilitate sales of offers.

Marketing and sales departments at energy companies are currently working overtime to prepare new electricity supply packages, hoping the energy ministry will heed their calls for a two-month extension before emergency measures are lifted.

Suppliers have made clear their concerns over how long it will take consumers to adjust to the new market conditions without subsidy support.

 

 

RAAEY scrutinizing post-crisis electricity supplier terms

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RAAEY, the Regulatory Authority for Waste, Energy and Water, is holding a series of one-on-one meetings with all the country’s electricity suppliers in an effort to ensure that market rules are adhered to once emergency measures, including a suspension of indexation clauses, are lifted.

Besides proper implementation of indexation clauses, the authority also aims to prevent the reintroduction, by electricity suppliers, of penalties for premature customer withdrawals from floating-tariff supply agreements.

The inclusion of any clause for such penalties in floating-tariff supply agreements once the country’s emergency measures – introduced to help combat the effects of the energy crisis – have expired would be viewed as an abusive practice by RAAEY.

Also, floating-tariff supply agreements to apply as of October 1, when Greece’s emergency measures are expected to be lifted, must not include paper invoice charges, which are not permitted, or any price-adjustment mechanisms beyond the basic formula aligned with the wholesale market.

 

Suppliers warn against overregulated new framework for electricity market

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Emergency measures adopted early during the energy crisis to help consumers deal with higher prices should not be replaced by an overregulated new framework, scheduled to be implemented October 1, electricity retailers have urged in a consultation procedure staged by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Highlighting the sense of urgency already felt by electricity retailers ahead of the introduction of a new set of rules, 14 market players, a big turnout for the local sector’s standards, have participated in the authority’s consultation procedure, offering comments on the market’s new set of rules to apply as of October 1, when the existing emergency measures, introduced in August, 2022, will have just been lifted.

Electricity suppliers fear that once lifted, on September 30, the existing measures could be replaced by a new set of emergency measures coming in disguise as a new framework for the electricity market.

TTF index brief surge keeps suppliers cautious on prices

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A brief surge of the TTF gas index on June 15, lifting wholesale prices by approximately 80 percent, compared to June 1, to over 41 euros per MWh from 23 euros per MWh, came as a clear reminder that the energy crisis is not yet over and will keep electricity retailers cautious about their pricing policies.

Electricity suppliers can be expected to act carefully and disrupt hefty price cuts when they make announcements tomorrow on their retail prices for July.

Based on recent market rules, suppliers are required to announce their respective electricity tariffs for each forthcoming month by the 20th of every preceding month.

According to sources, July’s retail electricity price levels should remain virtually unchanged, while some marginal reductions have not been ruled out.

Market players have pointed out that, besides the market’s volatility, two taxes are also affecting their ability to subdue retail electricity prices in the Greek market.

One of the two taxes is a 5 percent levy on the TTF index price of gas purchased by domestic electricity produces for their power plants. The other is an energy supply security tax of 2.5 euros per MWh. The two taxes combined increase electricity prices by between 9 and 10 euros per MWh as they are passed on to consumers.

It remains unknown if retail electricity prices in July will be subsidized by the caretaker government. This will become clear following next weekend’s second round in the country’s general election.

 

 

RAAEY’s new retail tariff plan restrictive, suppliers warn

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Four types of retail electricity products proposed by RAAEY, the Regulatory Authority for Waste, Energy and Water, including two with variable tariffs, generally cover all options that have been made available to consumers until now but will, to a certain degree, restrict the development of new products, electricity suppliers have told energypress.

RAAEY has just forwarded its package of electricity products for consultation, a procedure to be completed on June 19. The authority plans to launch the new tariff categories on October 1, when emergency energy-crisis measures are planned to be withdrawn.

Suppliers, in their comments to energypress, admitted the authority’s four types of electricity tariffs proposed will offer greater transparency for consumers but result in an overregulated market of standardized and homogenized products.

Suppliers also made note of strict specifications attached to the two types of variable tariffs.

Certain suppliers also complained that the new measures will significantly increase their workload for an additional cost which they will be expected to shoulder.

RAAEY introducing four new retail electricity tariff options

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A currently suspended indexation clause included in electricity bills for households and businesses will be replaced by a new framework offering consumers four different types of tariffs as of October 1.

RAAEY, the Regulatory Authority for Waste, Energy and Water, has just forwarded the revised framework for consultation, a procedure to be completed on June 19.

Adjustments to the current plan could be made if any proposals made by participants promise improvement.

The country’s emergency energy-crisis measures adopted for the wholesale and retail electricity markets, including the suspension of an indexation clause included in electricity bills with variable tariffs, expire on September 30.

One of the emergency measures, which was introduced last August, has required power suppliers to announce their respective tariffs for each forthcoming month by the 20th of every preceding month. This measure was intended to intensify competition between electricity retailers.

As of October 1, consumers will be able to choose from four types of electricity supply products, including two with variable tariffs, whose levels will be determined by a formula factoring in wholesale market price levels, according to the RAAEY plan.

One of the four new products proposed by RAAEY offers consumers fixed tariffs for a set period. Another offers variable tariffs to be adjusted on the 1st of each month. The choices will also include a dynamic variable tariffs offer for consumers who have installed smart meters.

RAAEY, in its plan forwarded for consultation, has noted that penalties for premature departures by customers cannot be incorporated into supply agreements with variable tariffs as they would represent an “abusive” practice.

Helleniq Energy planning power supply firm for Cyprus

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Helleniq Energy, formerly Hellenic Petroleum (ELPE), is planning a double entry into the Cypriot energy market, as, besides its investment plans in the RES sector, the company is also preparing to launch a subsidiary active in electricity supply to businesses and industries.

For the time being, Helleniq Energy does not appear to be  planning to also enter the residential electricity market.

Helleniq Energy recently acquired two solar energy farms on Cyprus. “This investment, along with the establishment of our new electricity supply company in the Cypriot market, enables us to offer integrated energy solutions to our clientele and, at the same time, contribute to the acceleration of the country’s energy transition,” noted Andreas Siamisiis, CEO at Helleniq Energy.

These two Helleniq Energy initiatives in the Cypriot market are being developed in coordination as the electricity production stemming from the solar parks, offering a total capacity of 15 MW and annual green energy capacity estimated at over 27,000 MWh, will be received and marketed by the company’s prospective electricity supply subsidiary, sources informed energypress.

Helleniq Energy is backed by a two-decade presence in Cyprus’ fuel market, through its EKO Cyprus subsidiary, represented by a network of 97 petrol stations. EKO Cyprus is the country’s market leader with a market share of over 32 percent.

Helleniq Energy plans to develop a Cypriot RES portfolio totaling 100 MW.

 

Suppliers announce smaller-than-expected tariff reductions

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Electricity suppliers have announced smaller-than-expected tariff reductions for June that do not fully reflect a sharp drop of the TTF gas index and deescalated wholesale electricity prices.

These modest tariffs reductions – announced by electricity suppliers on May 20, based on market rules requiring all suppliers to deliver their respective tariffs for each forthcoming month by the 20th of every preceding month – were attributed to two factors, one being the risk entailed, for suppliers, in this pre-notification requirement, valid until the end of September, at least.

Suppliers also decided against greater price reductions as a result of the government’s decision to announce its latest electricity subsidies package for a two-month period, covering May and June, instead of its customary one-month coverage, which would have been limited to May, in anticipation of the general election’s need for an interim government.

Essentially, suppliers have let the government’s electricity subsidies for June do the work for them.

The incumbent center-right New Democracy party is widely expected to seek a majority through a second round of voting seen taking place between one-and-a-half and two months from now, after yesterday’s general election left it several seats short of an outright victory.

Most electricity suppliers announced tariff reductions for June ranging between 0.005 to 0.01 euros per kWh, compared to May, while some suppliers offered reductions of between 0.02 to 0.03 euros per kWh. These reductions include subsidies that had previously been announced by the energy ministry.

 

Brussels approval of support system enables supplier reimbursements

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The European Commission’s approval of an updated Greek energy-sector support system paves the way for the reimbursement of electricity suppliers who have covered, over the past seven months, state subsidies offered on a monthly basis to farmers and small businesses using up to 35 kVA.

The revised support system will also increase its overall budget by 600 million euros for a total of 1.4 billion euros.

The initial version of Greece’s support system, approved by the European Commission late last year, covered the period running from February to November, 2022.

In the case of small businesses using up to 35 kVA, a category numbering approximately 1.25 million businesses, electricity suppliers also needed to use their own company funds to cover state subsidies announced by the energy ministry for December, 2022 and January, 2023. These subsidies were stopped from the following month onwards.

As for state subsidies offered to farmers, electricity suppliers have needed to cover the cost of support for this vocational category over a longer period. Subsidies for farmers have not been interrupted. They have been set at 15 euros per MWh for June.