Downward trajectory of green tariffs seen stopping in April

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.

 

Variable yellow tariffs also lower-cost option in February

Variable yellow tariffs offered by electricity suppliers through the country’s new color-coded tariff system, introduced January 1 to simplify price comparisons, were lower-cost options than their variable green-tariff alternatives in February, as was the case a month earlier – with the exception of one supplier.

Yellow and green tariffs are both variable tariffs, but the former represent a lesser risk for suppliers as their levels are set at the end of each month.

Variable yellow tariffs offered by electricity suppliers in February ranged between 10.9 cents and 13.43 cents per KWh, averaging 11.86 cents per KWh.

Variable green tariffs were 10 percent higher in February, averaging 13.1 cents per KWh. They ranged between 11 cents per KWh and 14.65 cents per KWh.

As a result of this price gap between green and yellow variable tariffs, the majority of consumers establishing new supply agreements are opting for yellow tariffs.

Consumers were given until the end of 2023 to choose tariff category or be automatically placed in the green tariff category on January 1, when the new color-coded tariff system was introduced. A fixed blue tariff category was also introduced.

Despite the slightly lower cost of yellow variable tariffs, green tariffs have remained low enough to keep consumers settled.

PPC variable green tariff for March down to 9.4 cents/KWh

A further reduction in wholesale electricity prices in February, down to an average of 72.2 euros per MWh, from 93 euros per MWh a month earlier, has created conditions for lower retail electricity prices in March.

Power utility PPC’s variable green tariff has been set at 9.4 cents per KWh for March, not including any discount the supplier will decide to offer.

Rival power suppliers are expected to follow suit and lower their prices for March, down to roughly 8 cents per KWh, based on formulas applied.

Sliding natural gas prices at the TTF in recent times could lead to a further decline in electricity prices in April, assuming the TTF index remains at its currently low level of around 24 to 25 euros per MWh.

Besides variable green tariffs, the country’s new color-coded tariff system, introduced January 1 to simplify price comparisons, also offers variable yellow tariffs, a lesser risk for suppliers, as their levels are set at the end of each month. In addition, consumers may opt for fixed blue tariffs.

 

RAAEY wants tariff clarification from electricity suppliers

RAAEY, the Regulatory Authority for Waste, Energy and Water, has requested clarification from electricity suppliers on tariff details included in packages offered to consumers in order to ascertain that they comply with the relevant regulatory and statutory framework.

One of the authority’s concerns has to do with cases of differential pricing in accordance with consumption levels and whether this constitutes one tariff or two different types of tariffs.

Another ambiguity needing clarification concerns fixed costs being charged by suppliers. The authority is digging deeper into how these are defined by suppliers and charged each time.

In any case, the situation in the market seems to be levelling out, at least compared to a month ago, with companies increasingly adapting to new conditions created by a new color-coded tariff system introduced January 1 to improve the price-comparing ability of consumers.

Under the new system, suppliers offer green and yellow variable tariffs – the latter represent a lesser risk for suppliers as their levels are set at the end of each month – and fixed blue tariffs.

Green variable tariffs as low as 9 cents per KWh in March

Green variable tariffs offered under the country’s new color-coded system, launched January 1 to simplify price comparisons for consumers, are expected to drop sharply in March, taking their cue from a significant reduction in wholesale electricity price levels in February.

Yesterday’s market clearance price averaged 73.71 euros per MWh, 19.31 euros below the average recorded in January, which was 93.02 euros per MWh.

Assuming the market clearance price in the country’s wholesale electricity market remains at levels close to yesterday’s average of 73.71 euros per MWh, the lowest-priced green variable tariffs in March should be set at levels of around 9 cents per KWh.

Such a level will be assured if the market clearance price for February does not exceed 76.5 euros per MWh.

Besides green tariffs, the new color-coded tariff system also offers consumers variable yellow tariffs, which represent a lesser risk for suppliers as their levels are set at the end of each month. The new system also offered fixed blue tariffs.

 

 

RAAEY price comparison tool set for March 4 introduction

RAAEY, the Regulatory Authority for Waste, Energy and Water, is set to launch a price comparison platform (www.energycost.gr) on March 4, one of three new platforms to be introduced by the authority over the next few months in an effort to support household and businesses and promote energy-market transparency.

This platform will enable households and businesses to get a personalized picture on the level of charges for products they are interested in. Users will be able to enter their monthly consumption figures into the platform for tariff comparisons.

RAAEY’s ultimate goal is to enable users to change supplier through the platform should they spot an appealing tariff offer.

The www.energycost.gr platform’s introduction will be followed by a price-comparison tool focused on electromobility. Its launch is planned for April 1. It will list all charging stations, their geographical location, based on a GPS system, and their prices.

A third tool, expected to be introduced in June, will enable consumers to anonymously report possible market distortions or illegal behavior in energy markets. RAAEY will investigate reported cases and take action if necessary.

Variable yellow tariffs lower than green tariffs in January

As predicted by the country’s electricity suppliers, variable yellow tariffs ended up being lower-cost options than their variable green-tariff counterparts for electricity consumers in January, the first month of the country’s new color-coded tariff system, introduced to simplify price comparisons.

Though yellow and green tariffs are both variable tariffs, the former represent a lesser risk for suppliers, as their levels are set at the end of each month.

Overall, yellow tariffs averaged a price of 13.74 cents per KWh in January, 7 percent less than the average for green tariffs, which was 14.72 cents per KWh.

Just one energy supplier offered a green tariff level that undercut the company’s yellow tariff in January. All other suppliers offered yellow tariffs as their best-priced options in the variable tariffs category.

Power utility PPC offered a yellow tariff at a rate of 12.34 cents per KWh in January, below its rate of 13.64 cents per KWh for green tariffs.

On the same wavelength, Protergia, a member of the Mytilineos group, offered a yellow tariff of 13.28 cents per KWh, undercutting the company’s rate of 14.3 cents per KWh for green tariffs in January.

Elpedison’s yellow tariff in January, set at 13.51 cents per KWh, was 21 percent cheaper than the company’s green tariff for the same month.

Fysiko Aerio’s yellow tariff of 13.6 cents per KWh undercut the supplier’s green-tariff offering for January by 5 percent, while Elinoil’s yellow tariff, set at 13.27 cents per KWh, also cost less than the supplier’s green tariff, set at 14.04 cents per KWh.

Under the new tariff system, consumers may also opt for fixed tariffs, dubbed blue tariffs, now also available over shorter 6 and 8-month terms, instead of just 12 months, as was the case at the time of the new system’s launch on January 1.

 

Protergia gets ball rolling with shorter-term, fixed tariff offer

Protergia, a member of the Mytilineos group, has become the country’s first electricity supplier to announce a shorter-term, six-month tariff following a revision of regulations enabling fixed tariffs to be shorter than the original one-year period required by new tariff rules introduced January 1.

Protergia’s fixed tariff, or blue tariff, as dubbed in Greece’s new color-coded tariff system, comes at an appealing price of less than 13 cents per KWh, according to local price-comparison website allazorevma.gr, well below an average of 15.5 cents per KWh recorded by variable tariffs in 2023.

The supplier’s initiative suggests competition in the fixed-tariffs category will be intense. Also, variable tariffs, based on wholesale price forecasts, appear headed for a slight reduction.

Consumers wanting to avoid regular price comparisons of variable tariffs in the coming months will have plenty of appealing fixed-tariff offers to choose from.

Under the country’s new tariff system, color-coding tariff categories for easier price-comparing ability, fixed tariffs, or blue tariffs, as well as variable tariffs, either yellow or green tariffs, were introduced January 1. Though yellow and green tariffs are both variable tariffs, the former are set at the end of each month, and, as a result, represent less of a risk for suppliers.

Also, later this year, officials plan to launch dynamic tariffs, to be dubbed orange tariffs, offering low-voltage consumers equipped with smart meters the ability to take advantage of fluctuations in wholesale electricity prices. The plan to install smart meters around the country now appears set for launch following years of delay.

 

Operator incentives for smart meters, dynamic tariffs nearing

Distribution network operator DEDDIE/HEDNO will be offered incentive for swift progress on its installation of smart meters, to replace conventional power meters around the country, but will also face penalties for delays, according to energy ministry revisions made to Greece’s REPowerEU package.

According to the plan, the operator will gain from bonuses for swift roll-out of smart meters, while, in the case of delays, DEDDIE/HEDNO’s regulated earnings will be impacted.

The revisions also include a framework for the introduction of dynamic tariffs. Planned to be introduced during the second half of the year, these tariffs will offer low-voltage consumers equipped with smart meters the ability to take advantage of fluctuations in wholesale electricity prices.

For example, consumers will be able to schedule the use of as many appliances as possible at times of low wholesale electricity prices in order to reduce electricity bills, such as midday hours if solar energy production has struck high levels.

Dynamic tariffs, dubbed orange tariffs, will add to the range of tariff choices available to consumers under the country’s new tariff system, color-coding tariff categories for easier price-comparing ability.

Fixed tariffs, or blue tariffs, as well as variable tariffs, either yellow or green tariffs, were introduced January 1. Though yellow and green tariffs are both variable tariffs, the former are set at the end of each month, and, as a result, represent less of a risk for suppliers.

Bids submitted by all four first-round qualifiers to a tender being staged DEDDIE/HEDNO offering a lucrative contract for the installation of 7.3 million smart meters throughout the country are currently being assessed.

Electricity suppliers set to offer new shorter-term fixed tariffs

The majority of the country’s electricity suppliers are reportedly set to announce new fixed tariffs as soon as RAAEY, the Regulatory Authority for Waste, Energy and Water, makes an official announcement, expected today, authorizing 6 and 8-month fixed tariffs, in addition to one-year fixed tariffs already offered through Greece’s recently introduced new tariff system.

In the lead-up to the RAAEY announcement, the energy ministry is expected to clarify, to the authority, details of related ministerial decision that was deemed to contain certain ambiguities.

Competition between suppliers is expected to intensify for fixed tariffs, growing in appeal to consumers who view anticipated rates at levels of as low as 11 cents per KWh over shorter-term periods as an attractive and secure option.

Under the latest revisions, suppliers will be able to include termination clauses in their terms for fixed tariffs.

A color-coded tariff system was introduced in Greece on January 1 to simplify the price-comparing ability of consumers.

Fixed tariffs have been dubbed blue tariffs, while variable tariffs are offered as either yellow or green tariffs, the former representing a lesser risk for suppliers as their levels are set at the end of each month.

Fixed-tariff rivalry intensifying, appealing rates expected

Competition between electricity suppliers is set to intensify in the fixed-tariff category following the energy ministry’s decision to slash the required minimum duration of fixed tariffs to six months from 12 months, as was initially set under the country’s new tariff system, launched January 1.

Suppliers are expected to offer appealing fixed tariffs of 6, 8 and 12 month durations when they announce their latest offers tomorrow. Fixed tariff rates are expected to reach roughly 11 cents per KWh, possibly even lower.

Besides fixed tariffs, or blue tariffs – according to the new color-coded tariff system designed to simplify price-comparing ability – consumers may also choose from variable green tariffs and variable yellow tariffs, the latter representing a lesser risk for suppliers as their levels are set at the end of each month instead of the beginning.

Latest fixed-tariff rates to be announced tomorrow by suppliers are most likely to dominate customer attention as they are expected to be set at levels below those of variable green tariffs, which should range between 12 and 14 cents per KWh, and lower than pre-energy crisis tariffs offered by suppliers.

If the wholesale electricity market continues along its downward trajectory, at levels below 30 euros per MWh, then variable green tariffs to be offered in March should fall even lower than the anticipated 11 cents or so per KWh anticipated for fixed tariffs in February.

Meanwhile, RAAEY, the the Regulatory Authority for Waste, Energy and Water, has set a February 12 date for a hearing concerning energy supplier Fysiko Aerio’s 8-month fixed tariff, offered January 1, when the minimum duration for such tariffs was still 12 months.

Though it is seen as less of an issue now that the ministry has halved the 12-month minimum requirement for fixed tariffs and other suppliers are set to join in with shorter-term fixed tariffs, a fine for Fysiko Aerio has not been ruled out.

New market rules adjusted to allow shorter-term fixed tariffs

The energy ministry is preparing to adjust the country’s new electricity tariff rules so that suppliers may be permitted to offer fixed tariffs with durations of less than a year, the objective being to enhance the new system’s flexibility.

RAAEY, the Regulatory Authority for Waste, Energy and Water, recently warned that the new electricity tariff system, launched January 1 and color-coding variable and fixed tariffs in an effort to simplify price comparisons for consumers, was in danger of proving ineffective as products offered by some suppliers were not fully abiding by a set of rules established by the authority.

The authority focused on energy supplier Fysiko Aerio’s 8-month fixed blue tariff, fearing it could lead to price comparability issues against the new system’s conventional 12-month fixed blue tariff.

RAAEY officials suggested Fysiko Aerio’s 8-month fixed tariff has taken advantage of an exception provided for in the new supply code, which, under certain conditions, permits supply contracts with a duration of less than one year.

The new electricity tariff system also includes yellow and green tariffs, both variable tariffs, though the former represent a lesser risk for suppliers as their levels are set at the end of each month.

A number of energy suppliers are believed to be awaiting the ministry’s revision in order to offer fixed tariffs with durations of less than a year. The ministry is expected to make the rule revision within the next few days.

RAAEY concerns over tariff color-coding system issues

RAAEY, the Regulatory Authority for Waste, Energy and Water, has warned the country’s new electricity tariff system, launched January 1 and color-coding variable and fixed tariffs in an effort to simplify price comparisons for consumers, could prove ineffective as products offered by some suppliers are not fully abiding by a set of rules established by the authority.

RAAEY wants swift action taken so that issues already identified may not spread. It fears wrongful supplier actions may be imitated by rivals and take the country’s retail electricity back to its unclear state, for consumers, prior to the implementation of energy crisis emergency measures in August, 2021.

The energy ministry, on the other hand, believes the new electricity tariff system should be judged on its benefits it promises to consumers, in other words, intensified competition and electricity price reductions.

Energy supplier Fysiko Aerio’s 8-month fixed tariff is one of the new products that have raised concerns at RAAEY as, according to the authority, it may have comparability issues with the new system’s conventional 12-month fixed blue tariff.

RAAEY officials appear to believe this 8-month fixed tariff takes advantage of an exception provided for in the supply code, which, under certain conditions, permits supply contracts with a duration of less than one year.

 

Growing number of consumers switching to blue, yellow tariffs

The number of low-voltage electricity consumers agreeing to switch from special green tariffs to variable yellow tariffs and fixed blue tariffs has increased since the country’s new tariff system was introduced January 1.

In the lead-up to the new tariff system’s launch, consumers had until December 31 to express specific tariff preferences or be automatically transferred, by their supplier, to the special green tariff on the changeover date.

Electricity suppliers have intensified their promotional efforts, mostly through call centers, in an effort to convince consumers to switch to either yellow or blue tariffs.

This overall activity has increased competition between suppliers, as had been intended by the energy ministry when it drew up the new tariff plan.

Some 20 percent of consumers have now switched to either yellow or blue tariffs.

Though yellow and green tariffs are both variable tariffs, the former represent a lesser risk for suppliers, as their levels are set at the end of each month.

On the contrary, suppliers set their green tariff levels at the beginning of each month, and, as a result, gamble on wholesale electricity price levels for the month ahead.

TSO operating costs examined in effort to contain energy cost

RAAEY, the Regulatory Authority for Waste, Energy and Water, is scrutinizing the operating costs of all TSOs in Greece with the aim of limiting these costs to the absolute essentials and, by extension, contain, as much as possible, expenses relayed to consumers through regulated surcharges on electricity and natural gas bills.

The authority’s initiative echoes an effort being made by the energy ministry to restrict, to the greatest degree possible, energy costs for households and enterprises.

As part of the effort, a new retail electricity tariff system simplifying price comparisons of variable and fixed tariff options for consumers, as a means of intensifying competition between suppliers and subduing prices, was launched January 1.

Though capital expenditure of TSOs infiltrates energy bills, its benefits can be expected to eventually lead to lower energy costs for consumers in the medium term. However, this is not the case with operating costs which, one way or another, could either be avoided or covered by operator profit.

Further RAAEY action aims to enhance market transparency

RAAEY, the Regulatory Authority for Waste, Energy and Water, which has just introduced a new color-based tariff system of variable and fixed electricity tariffs, as well as a chart listing all tariffs offered by suppliers for simplified price comparisons, intends to soon follow up these actions with the establishment of an Energy Ombudsman and a further price comparison tool (www.energycost.gr), both planned to begin operating in February.

These new additions are all planned to offer greater electricity market transparency and protection for households and businesses, while also intensifying competition between suppliers through simpler price comparisons.

Consumers faced a tedious, if not impossible, task if wanting to compare tariffs offered by suppliers prior to the introduction of the color-based tariff system, as some 130 tariffs were on offer.

Besides variable green tariffs, the newly introduced tariff system, also includes fixed blue tariffs and variable yellow tariffs.

Consumers had up until December 31 to express preferences or be automatically transferred to the green-tariff category by their suppliers.

The idea to establish an Energy Ombudsman began taking shape in 2022, during the energy crisis, when RAAEY faced a wave of customer complaints about ambiguous electricity bills. Most of these complaints were not fully addressed.

The Energy Ombudsman’s objective will be to resolve any disputes and spare consumers from needing to take time-consuming and costly legal action.

PPC rivals fear low gas prices may sustain pricing aggression

Power utility PPC, the domestic market’s dominant and influential player, clearly subdued its new variable green tariffs – introduced January 1 by all suppliers – to the greatest degree possible, setting a lower-than-expected rate of 13.63 cents per KWh for January that forced most rivals to respond with green tariffs that averaged 15.4 cents per KWh, overall for independent suppliers, rather than levels of between 16 and 17 cents per KWh, which they would have preferred.

Natural gas prices in international markets have been on a downward trajectory over the past few days, a trend that may encourage PPC to maintain its aggressive pricing policy for a second consecutive month when it sets green tariff levels for February in three-and-a-half weeks’ time.

The prospect has raised concerns among independent suppliers, fearing they may not be able to endure suppressed profit margins for a second month running and, instead, set tariffs at between 16 and 17 cents per KWh to avoid sacrificing profit once again.

Independent suppliers will be keeping a close watch on any consumer shifts this month before deciding on their tariff levels for February.

Besides variable green tariffs, the newly introduced tariff system, also includes fixed blue tariffs and variable yellow tariffs.

Consumers had up until December 31 to express preferences or be automatically transferred to the green-tariff category by their suppliers.

Consumers automatically transferred to green tariffs represented at least 70 percent of the respective client bases of all suppliers.

 

Most consumers transferred to green tariffs under new system

The majority of the country’s electricity consumers have been automatically transferred to new green variable tariffs, introduced January 1, after not opting for other tariffs offered under the new pricing system.

Consumers who were automatically allotted green tariffs represent at least 70 percent of the respective client bases of all suppliers.

Consumers had up until December 31 to express tariff preferences or be automatically transferred to the green-tariff category by their suppliers.

The dominance of green tariffs at this early stage of the new system had been anticipated as consumers come to terms with its options, which include fixed blue tariffs and variable yellow tariffs.

The changeover, coinciding with the festive season, also played a key role in the lack of action taken by consumers.

A considerable number of consumers have been enquiring about blue tariffs, ensuring fixed tariffs over extended periods of several months, suppliers informed.

Simpler supplier switching limited to punctual consumers

The energy ministry, preparing action to simplify the consumer-switching procedure from one electricity supplier to another by limiting bureaucracy as a means of boosting mobility and competition, intends to reserve this convenience for customers without arrears.

On the contrary, customers owing electricity-bill amounts will continue to face all existing bureaucracy should they wish to change supplier.

Limitations making transfers to other electricity suppliers difficult will apply to all consumers with arrears, not just those marked out on an upcoming and collective debt-flagging system for all suppliers to see.

The ministry needs to strike a right balance between freedom and constraint as too much leeway for consumers could prompt a further increase in the number of consumers abandoning suppliers despite owing electricity-bill amounts, a phenomenon locally dubbed “energy tourism”.

As part of the wider effort to boost mobility and competition, authorities have just launched a price-comparison chart listing new variable tariffs, dubbed green tariffs, offered by all suppliers as of January 1. These tariffs will be revised by all suppliers monthly, at the beginning of each month.  (https://invoices.rae.gr/oikiako/)

PPC sets green tariff at 13.63 cents per KWh for January

A drop in wholesale electricity prices during the second half of December has enabled power utility PPC to launch its variable green tariff at a lower-than-expected rate of 13.63 cents per KWh for January.

The country’s electricity suppliers have just launched their new tariffs under the country’s new tariff system, introduced January 1.

PPC’s aforementioned green tariff rate concerns monthly low-voltage consumption of up to 500 KWh. The company’s green tariff for monthly consumption over 500 KWh has been set at 14.59 cents per KWh. Also, PPC’s nighttime green tariff rate was set at 11.55 cents per KWh.

The new green tariffs introduced January 1 have been implemented automatically for all consumers, unless they formally objected in the lead-up, up until December 31, and opted for other tariff categories.

Fixed tariffs, dubbed blue tariffs, as well as variable yellow tariffs have been made available under the revamped tariff system.

From now on, suppliers will be announcing green tariffs on the first of each month. Levels announced will remain valid for a month.

Elsewhere, Volton set a green tariff rate of 14.41 cents per KWh, including a 20 percent discount and 20 percent punctuality discount.

Elpedison set its green tariff at 17.06 cents per KWh. Zenith’s green tariff, dubbed Power Home Start, was set at 16.9 cents per KWh. Fysiko Aerio set a green tariff rate of 14.26 cents per KWh, including a punctuality discount.

Volterra’s green tariff, including a discount, is 14.39 cents per KWh. Heron set a rate of 14.05 cents per KWh, including a punctuality discount. NRG’s green tariff is priced at 14.1 cents per KWh, while Protergia’s green tariff, including a discount, was set at 14.26 cents per KWh.

 

Low-level fixed tariffs appealing for consumers

Fixed tariffs, which proved unpopular during the energy crisis as the absence of state subsidies – for this category – made them exorbitant, are now making a strong comeback.

Dubbed “blue tariffs” under the country’s new tariff system set to be introduced January 1, fixed tariffs have regained their appeal among consumers as the mild winter weather conditions in Europe and low natural gas prices have kept wholesale electricity prices at unusually low levels for this time of the year.

This is enabling fixed tariffs to be set at prices not expected to exceed variable green tariffs by more than 3 or 4 cents per KWh when they are also introduced at the beginning of the new year.

To date, five electricity retailers – PPC, Protergia, Elpedison, Heron and Elin – have announced new fixed tariffs, or blue tariffs, ranging between 14.9 and 17.9 cents per KWh. Other suppliers are expected to follow.

At such levels, many consumers are expected to opt for slightly higher-cost fixed tariffs rather than have to go shopping for the lowest-cost variable tariffs each month.

All this applies under the condition that the average wholesale electricity price for December remains at its current average of 105.07 euros per MWh all the way through the end of the month.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose other categories.

New round of green tariff discounts by suppliers on way

The country’s electricity suppliers, both players who have already announced pricing policies ahead of a new tariff system being introduced January 1, and those that have yet to unveil their plans, are preparing to offer a barrage of discounts on new green tariffs, offering consumers further price reductions.

Suppliers are currently indicating that January’s green tariffs with discounts will drop below their initial estimates of between 15 and 17 cents per KWh made earlier this month and reach 14 cents per KWh, or even less, assuming international markets continue along their mild trajectory.

Last January, power utility PPC, the dominant retail player, had offered a subsidized basic tariff of 15.9 cents per KWh for monthly consumption of up to 500 KWh and 22.1 cents per KWh for monthly consumption of over 500 KWh.

Natural gas prices have generally remained subdued of late, enabling electricity suppliers to offer discounts in order to achieve favorable price-comparison impressions once RAAEY, the Regulatory Authority for Energy, Environment, and Water, soon posts green tariff levels offered by all market players onto its website.

For the time being, suppliers can only manipulate their green tariff levels, in an attempt to gain a competitive edge over rivals, through discounts as the basic billing price will remain fixed for six months as of January 1, when they are introduced.

Besides intensifying competition for green tariffs, competition among suppliers is also growing for fixed tariffs, dubbed blue tariffs. Consumers will also be able to choose variable tariffs, dubbed yellow tariffs.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose either variable or fixed tariffs.

It should be pointed out that suppliers, based on guidelines released by RAAEY, the Regulatory Authority for Energy, Environment, and Water, had been requested to announce their discounts by December 1.

However, leniency is now expected to be granted to enable a further round of discounts ahead of the January 1 tariff system launch and ultimately lead to lower electricity prices for consumers.

RAAEY forwarding detailed new-tariffs manual to suppliers

The board at RAAEY, the Regulatory Authority for Waste, Energy and Water, is today expected to approve guidelines prepared by the authority for new green tariffs set to be introduced by electricity suppliers as of January 1.

The greenlit guidelines are expected to be forwarded to the country’s electricity suppliers tomorrow, while a manual informing consumers of the electricity market’s tariff changes should also be out tomorrow.

RAAEY staged a teleconference last week to inform electricity suppliers of the new tariffs to succeed emergency measures implemented during the energy crisis and ending December 31. Suppliers raised a number of questions during the session on the new electricity deal options for consumers.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose either variable or fixed tariffs, dubbed yellow and blue tariffs, respectively.

Questions raised by suppliers during the informative session organized by RAAEY included whether two types of green tariffs would eventually be permitted; discount policy queries; and announcement dates.

From the outset, RAAEY plans to closely monitor how the new green tariffs are implemented by suppliers. The authority’s guidelines to be forwarded to suppliers tomorrow will be comprehensive, it has been noted, leaving no leeway for misinterpretation.

The guidelines will also include a decision on whether green tariff discounts announced following a December 1 deadline will be permitted. Some electricity suppliers missed this deadline but have indicated they intend to offer green tariff discounts by December 31, on the eve of the tariff transition.

 

Belated green tariff discounts from hesitant suppliers

Electricity suppliers who chose not to announce discounts for their new green tariffs on December 1, the date by which suppliers were requested to present the basic details of their respective formulas to be applied for the new tariff ahead of its January 1 launch, are now preparing to belatedly proceed with discounts on these new tariffs by December 31.

The suppliers who incorporated discounts into their new green tariff formulas in their December 1 announcements are already objecting to the decisions reached by rival suppliers to also announce discounts, belatedly. The energy ministry has yet to decide whether it will permit these delayed discounts.

Green tariffs with discounts are expected to drop below initial estimates and reach between 14 and 15 cents per KWh for most consumers, assuming low-level wholesale electricity prices at the energy exchange remain subdued.

Wholesale electricity prices averaged 110.9 euros per MWh for the first 12 days of December, unchanged from the end of November.

Besides the intensifying competition for green tariffs, competition among suppliers is also growing for fixed tariffs, dubbed blue tariffs. Consumers will also be able to choose variable tariffs, dubbed yellow tariffs.

This competition is expected to lead to tariff levels below those of subsidized tariffs, which were introduced as an emergency measure for all low-voltage consumers during the energy crisis and are set to be terminated under the new system being introduced January 1.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose either variable or fixed tariffs.

Higher green energy tariffs feared in post-crisis period

Consumers switching to green energy tariffs to be offered by suppliers as of the beginning of 2024 face the risk of being trapped in increasing electricity charges over an extended period, energy company officials have projected.

Given the formula to be applied for these special green-energy tariffs, it would be reasonable to expect them to rise in cost once energy-crisis measures are lifted at the end of the year.

Suppliers generally agree that a considerable number of consumers will switch to this special tariff, some putting the proportion at a dominant proportion of over 80 percent of their customers.

If it does prove to be more expensive than other available tariff options, customers will need a few months to realize and confirm this greater cost increase plus even more time to switch to lower-cost supply agreements.

Suppliers want more flexible formula for new variable tariff

A new variable tariff formula that suppliers will need to adopt as a means of improving price-comparison clarity for consumers and stimulating competition will be launched as planned, January 1, when energy crisis measures will be withdrawn, ending subsidies for consumers, energy minister Thodoris Skylakakis confirmed at a meeting yesterday with top officials of ESPEN, the Greek Energy Suppliers Association.

The single variable tariff formula, which all suppliers will need to include in their overall package of tariff offers to consumers, is being introduced with a large proportion of consumers in mind and will allow price comparability of companies’ offers, promoting competition, the minister stressed.

Suppliers called for greater flexibility to the single variable tariff formula so that they could make monthly adjustments, based on prevailing wholesale electricity prices.

All pending retail electricity market issues were tabled during the meeting. These include planned reimbursements for electricity suppliers who have been forced to cover an estimated 800 million euros, overall, in subsidies offered by the state during the energy crisis as support for small and medium-sized enterprises; stricter market rules preventing consumers with unpaid bills from switching suppliers; as well as the imposition of a time limit, for users, on the country’s universal electricity supply service, offered as a last-resort solution by the top five suppliers, based on market share, to black-listed household and business consumers who have been shunned by suppliers over payment failures.

Power suppliers’ association holds crucial talks with ministry

ESPEN, the Greek Energy Suppliers Association, will push for swift government action that would finalize a series of pending electricity market measures at a meeting today with the energy ministry’s leadership.

The association, determined to reduce high unpaid receivables faced by electricity suppliers, is awaiting stricter user rules, including a time limit, for the country’s universal electricity supply service. It is offered as a last-resort solution by the country’s top five suppliers, based on market share, to black-listed household and business consumers who have been shunned by suppliers over payment failures.

ESPEN also wants the ministry to push through with plans designed to prevent consumers with unpaid electricity bills from switching suppliers without restriction.

The talks between the two sides will also include implementation details on the new retail electricity market rules, planned to come into effect January 1.

The revisions include the end of a freeze on indexation clauses, green tariffs, and a single variable tariff formula aiming to simplify price comparisons for consumers.

A legislative revision covering these revisions has been ratified in Greek Parliament, but a ministerial revision is still needed. It is expected to be delivered within the next few days, sources informed.

Electricity suppliers want clarity as they will need to inform customers of  upcoming market rule changes by December 1.

 

 

Suppliers fear single variable tariff formula complications

Electricity suppliers fear a single variable tariff formula to be introduced by the energy ministry in January for all suppliers to apply before setting respective tariff levels depending on their profit-margin strategies, may create more problems than it could solve.

The ministry believes the introduction of a single variable tariff formula will intensify competition, helping subdue prices, and also help consumers make direct price comparisons, not possible amid the vagueness of the current system.

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.

Barring unexpected developments, a relevant legislative revision will most likely be submitted to Parliament this week.

According to the plan, suppliers will announce variable tariffs on a monthly basis, at the beginning of each month. These tariffs will fluctuate, reflecting average wholesale electricity price levels of the previous month.

The single variable tariff formula will include a mechanism correcting high prices, through lower and upper limits set by suppliers.

However, market sources have expressed concerns, noting that, to hedge limits, suppliers will have to increase their own margins, which risks making them uncompetitive.

Ministry’s single variable tariff intended to boost competition

A decision by energy minister Thodoris Skylakakis to introduce – as of January, for 12 months – a single variable tariff formula for all electricity suppliers, whose level they will set depending on respective profit-margin strategies, is intended to intensify competition leading to lower prices, or at least, price containment at reasonable levels.

The application of a single pricing formula, to be made available to all electricity suppliers, will enable consumers to make instant price comparisons with the push of a button, not possible under the current complicated system.

“If I were to ask you who the lowest-price supplier is would you know? The problem is that we don’t have a common tariff offered by all suppliers. A common tariff will now exist. All details will be announced within the next ten days,” Skylakakis, the energy minister, told local radio station Parapolitika yesterday.

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

The energy ministry estimates over 4 million consumers, or at least 70 percent of 5.7 million in total, will favor an automatic transferal to the new single variable tariff over any of the new products to be made available by suppliers.

Some market officials believe consumer preference for the new single variable tariff will be even greater.

Authorities are preparing for the Greek electricity market’s return to normality as of January 1, when subsidies are planned to end and indexation clauses reintroduced.

However, market conditions are currently adverse and challenging given last week’s outbreak of the Israel-Gaza war as an addition to Russia’s ongoing war in Ukraine.

A continuation of current market trends and conditions, which have pushed natural gas prices up 36 percent since the beginning of October, to 49 euros per MWh, would inevitably result in higher domestic electricity prices in January.

RAAEY demands notification on upcoming billing changes

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.