electricity tariffs

PPC announces €0.1550/KWh residential tariff for June

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Power utility PPC, the retail electricity market’s dominant player and, as a result, trend setter, has announced just a mildly reduced tariff for June, to 0.1550 euros per KWh, from May’s price of 0.1590 euros per MWh, for monthly residential consumption of up to 500 KWh.

Factoring in the government’s electricity subsidies for June, already announced, PPC’s finalized price for next month is 0.1400 euros per KWh.

PPC’s June tariff – without subsidies – for consumption of over 500 KWh, has been set at 0.1670 euros per KWh, while its nighttime tariff is 0.1140 euros per KWh.

The country’s electricity suppliers announced their tariffs for next month 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.

Volton announced an offer of 0.099 euros per KWh, including a punctuality discount, as part of its Volton Energy Control package.

Volterra announced a price of 0.11980 euros per KWh, not including subsidies.

Elin set a rate of 0.129 euros per KWh, not including subsidies, for its Power On! Home Comfort package.

Watt+Volt’s price for June is 0.12650 euros per KWh, without subsidies.

NRG announced a tariff of 0.12200 euros per KWh for its NRG On Time offer, which drops to 0.10700 euros per KWh with subsidies and 0.07040 euros per KWh with a punctuality discount.

Zenith announced a price of 0.09900 euros per KWh without subsidies and 0.08400 euros per KWh with subsidies.

Protergia’s June offer is 0.150 euros per KWh, which falls to 0.1265 euros per KWh when factoring in subsidies.

Fysiko Aerio’s residential Maxi Free Basic package offers a tariff of 0.1550 euros per KWh without subsidies, which drops to 0.120 euros per KWh with subsidies and a punctuality discount.

Heron announced, for its Simply Generous Home package, a June tariff of 0.1250 euros per KWh that falls to 0.1125 euros per KWh when including a monthly 10 percent discount, and 0.0975 euros per KWh with subsidies.

 

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.

 

New residential electricity cost reductions expected for June

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The country’s electricity retailers, preparing to announce their offers for next month on May 20, as required by market rules, are expected to offer a new round of nominal tariff reductions for June, driven lower by a further decline of the TTF index.

The forthcoming month’s highest residential tariffs are likely to range between 0.14 and 0.17 euros per KWh, including the government’s electricity subsidies, usually revised monthly but covering both May and June this time around to avoid any election-related complications. Greece is scheduled to stage a legislative election this Sunday.

Suppliers are expected to reduce their nominal tariffs – not including subsidies – for June between 0.01 and 0.015 euros per KWh. As a result, finalized prices for next month’s residential tariffs may drop by as much as 0.03 euros per KWh.

The country’s electricity retailers are required to announce their nominal tariffs for each forthcoming month by the 20th of each preceding month.

Meanwhile, the government is working on extending emergency energy-crisis measures until September 30. These measures – a wholesale electricity market price cap; suspension of a price adjustment clause concerning electricity tariffs; penalty-free consumer switches from one supplier to another; and monthly supplier tariff announcements 10 days ahead –  were introduced last August and are due to expire July 1.

Two-month subsidy plan for possible election impasse

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The energy ministry, until now announcing and revising, on a monthly basis, electricity subsidies provided to consumers, is examining the possibility of announcing such support for two months, covering May and June, as consumer protection against any possible sharp energy price rises during the period following the country’s May 21 legislative election, should it fail to produce a new government.

If so, a caretaker government will be sworn in to serve for an interim period of one to one-and-a-half months.

At this point, the energy ministry wants to confirm the availability of funds needed to cover two months of electricity subsidies before it makes an official announcement for May and June.

An announcement on a double dose of electricity subsidies could be made by energy minister Kostas Skrekas tomorrow.

The subsidy level to be offered for May is expected to be below the April level, which was set at 15 euros per MWh (0.015 euros per KWh).

The country’s electricity suppliers announced slightly reduced nominal tariffs (before subsidies) for May on April 20. Suppliers are required to announce their nominal tariffs for each forthcoming month by the 20th of every preceding month.

Lower electricity tariffs mean the government can contribute less subsidies to maintain finalized electricity costs at a level it desires.

 

New offers not posted by 20th of each month ‘not permitted’

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RAE, the Regulatory Authority for Energy, seeking to restore order in the retail electricity market, has briefed suppliers that they cannot launch any new offers to consumers if these have not been announced by the 20th of each month, for each forthcoming month, as required by recently introduced rules.

The authority, in a document forwarded to all the country’s suppliers, has stressed that all offers intended for each forthcoming month must be announced by the 20th of each preceding month. No additional offers are permitted beyond this date, RAE underlined.

Although rules on this requirement were introduced approximately nine months ago, suppliers, in more recent times, have tended to wait for power utility PPC, the dominant market player, as well as for fellow independent suppliers, to announce their offers for each forthcoming month before adjusting accordingly with delayed offers of their own, as late as the next day.

Suppliers have been found to offer below-cost tariffs as temporary pullers aimed at luring new customers before adjusting these offers to regular rates.

In additional action, RAE also plans to develop a series of new price-related measures, including a price-comparison tool, a retail monitoring tool, a new data base, an energy-savings platform offering households tips, as well as a RAE online platform offering consumers advice over tariff disputes with suppliers.

 

 

PPC trims nominal tariff for May to 15.9 cents/KWh

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Power utility PPC, the country’s dominant supplier and, as a result, price trendsetter, has announced a slightly reduced nominal tariff – without a subsidy deduction – for May, down roughly 3.5 percent to 15.9 cents per KWh from, 16.5 cents per KWh in April, for household monthly usage of up to 500 KWh.

By law, introduced last summer, all suppliers are required to announce their nominal tariffs for each forthcoming month by the 20th of each preceding month.

PPC set its nominal tariff for monthly electricity usage over 500 KWh at 17.1 cents per KWh from 17.7 cents in April.

Elpedison announced a nominal tariff of 12.5 cents per KWh for its Elpedison Economy package and a rate of 21.50 cents per KWh for its ElectricityHome Day package.

Heron set a nominal tariff of 19.40 cents per KWh for its Generous Home offer, which, when factoring in a punctuality discount, works out to 15.52 cents per KWh. Heron announced a nominal tariff of 14.2 cents per KWh for its Simply Generous Home offer, which includes a gift covering 10 percent of electricity usage.

Protergia announced a nominal tariff of 19 cents per KWh for its residential MVP Reward package, unchanged from its level set for April. Factoring in a punctuality discount offered by the company, this tariff level drops to 13 cents per KWh. Protergia has also launched a Protergia Home Value offer, priced at 13 cents per KWh for May. This offer does not include a punctuality discount.

Elsewhere, Volterra announced a nominal tariff of 18.8 cents per KWh for May; Volton set a price of 9.9 cents per KWh, including a punctuality discount, or 13.2 cents per KWh without; Zenith set a rate of 11.5 cents per KWh for its Power Home Now package; Watt+Volt announced a rate of 13.96 cents per KWh; Fysiko Aerio set a rate of 13 cents per KWh, unchanged from April and down to 10 cents per KWh when taking into account a discount for punctual electricity bill payments; and Elin announced a price of 13.9 cents per KWh for its Power On! Home Comfort package.

The energy ministry is expected, next week, to announce its subsidy support level for May. If this support amount is unchanged compared to the previous month, finalized residential retail tariffs will be slightly lower in May.

 

 

 

No major tariff changes seen for May, support maintained

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Next month’s retail electricity tariffs, due to be announced tomorrow by the country’s suppliers, are expected to remain largely unchanged compared to the previous month as a result of low prices at the TTF index and relative stability at the energy exchange.

By law, introduced last summer, all suppliers are required to announce their nominal tariffs for each forthcoming month by the 20th of each preceding month.

If the forecasts for May price levels are confirmed, nominal tariffs – not including subsidies – offered by suppliers will range between 0.105 and 0.1995 euros per KWh.

If the energy ministry decides to subsidize electricity bills for yet another month, as it has done throughout the energy crisis, then households can expect finalized retail prices to range between 0.09 and 0.1845 euros per KWh.

Though energy prices have deescalated considerably since the start of the energy crisis, authorities are expected to keep offering support to consumers until the end of the year.

The energy ministry has just launched an online platform, e-katanalotis, on which electricity users may check tariffs offered by suppliers.

Local tariffs down in March, reflecting European trend

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As was the case in most parts of Europe last month, retail electricity prices also fell in Greece in March, monthly research conducted by HEPI, the Household Energy Price Index, covering 33 European cities, has shown.

The study attributed this price drop to lower wholesale electricity prices, prompted by mild weather conditions and lower demand, as well as subsidy support measures adopted by governments throughout Europe to ease the energy crisis’ cost burden on households.

In Athens, the average price of electricity tariffs, both fixed and floating, dropped by 1 percent in March, compared to February, reaching 30.48 cents per KWh, above the EU average of 27.47 cents per KWh.

According to the HEPI study, electricity tariffs in March also fell in Rome (-14%), Vienna (-8%), Talin (-7%), Copenhagen, Dublin, Madrid, Riga and Stockholm, all down 5%, while, like in Athens, tariffs also fell by 1% in Berlin, London and Oslo.

On the contrary, some cities registered electricity tariff increases. They rose 14% in Helsinki, 2% in Nicosia, and 1% in Brussels and Paris.

Athens’ average price for floating tariffs was 26.38 cents per KWh, well below an average of 32.51 cents per KWh resulting from a sample of 15 European cities, the HEPI study showed.

April electricity tariffs to fall by at least 2 cents per KWh

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Electricity supplier tariffs for April, due, by law, to be announced by midnight, will be at least 2 cents per KWh below levels set for March, while a number of independent suppliers may even offer greater reductions of as much as 5 cents per KWh, sources have informed.

Recently introduced law requires the country’s electricity suppliers to announce their retail tariffs for each forthcoming month by the 20th of every preceding month.

The anticipated tariff reductions for April will not result in lower energy costs for users, but the government, which has been providing subsidies – through the Energy Transition Fund – during the energy crisis to maintain residential tariffs at between 15 and 16 cents per KWh, will be able to decrease its outlay on subsidies while keeping tariffs at the desired level.

Lower wholesale electricity prices and a current de-escalation of natural gas prices in international markets are the key reasons behind the anticipated reduction in electricity tariffs.

Intraday market electricity prices during the first half of March were approximately 20 percent less than a month earlier and nearly 55 percent below prices recorded in December.

November electricity prices, out tomorrow, down 15-20%

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The country’s electricity suppliers, now finalizing their pricing policies for next month, are expected to announce, tomorrow, reduced tariffs for November, down by 15 to 20 percent compared to the current month’s levels, sources have informed.

Based on new law, suppliers are required to announce their electricity prices for the forthcoming month by the 20th of each preceding month.

Supplier tariffs, sources informed, should range between 0.45 to 0.50 euros per MWh, which, if confirmed, will result in a reduction of between 15 and 20 percent, compared to October’s prices.

The government’s level of subsidy support for electricity bills next month has yet to be announced. Given the current de-escalation in electricity prices, the government may choose to only rely on the Energy Transition Fund for next month’s subsidies and not use any budget money for this purpose, sources said.

Market analysts are projecting further electricity price reductions until the end of the year as a result of a drop in TTF natural gas prices. The Dutch index has fallen by 66 percent since an August 26 peak of 349.90 euros per MWh, reaching 116.45 euros per MWh yesterday.

The EU’s overachievement of gas storage levels, now averaging 91 percent of capacity, as well as an abundance of LNG supply to Europe, are key factors that have driven down the TTF.

 

PPC’s October tariff down 25%, similar cuts by all players

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Power utility PPC, the dominant retail player, has announced an October tariff for households of 0.595 cents per KWh, 25 percent lower than the September tariff offered by the utility.

This 25 percent month-to-month reduction rate more or less applies for October household tariffs offered by all the country’s suppliers, who have just announced their tariffs for next month.

Under new market rules, electricity retailers must announce their tariffs for forthcoming months by the 20th of each preceding month.

PPC’s tariff of 0.595 cents per KWh is for monthly consumption of up to 500 KWh. The utility’s tariff for consumption over this level was set at 0.607 euros per KWh.

Protergia announced an October household tariff of 0.57630 euros/KWh. Elpedison’s October tariff was set at 0.5905 euros/KWh. Heron’s new tariff is 0.698 euros/KWh, with a punctuality discount rate of 20 percent that reduces its level to 0.5584 euros/KWh. Elsewhere, October household tariffs are: Volterra, 0.685 euros/KWh; Fysiko Aerio, 0.594 euros/KWh; Zenith, 0.589 euros/KWh; Watt+Volt, 0.5890 euros/KWh; Elin, 0.599 euros/KWh; Volton, 0.589 euros/KWh.

In September, the government spent 1.9 billion euros on electricity subsidies to contain retail prices at levels of between 14 and 16 cents per KWh.

Subsidies for October, to be inversely related to consumption, are scheduled to be announced today.

October tariffs slightly lower than September levels

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Electricity tariff levels for October, to be announced late tonight by electricity retailers, are expected to be lower than September’s levels but still higher than August prices, energypress research has shown.

The anticipated retail electricity reduction has been attributed to a recent reduction in natural gas prices at the Dutch TTF hub.

Most suppliers are expected to set their tariffs for October at levels between 60 and 68 cents per KWh, while prices, by some suppliers, slightly below the level of 60 cents per KWh, have not been ruled out.

Under new market rules, electricity retailers must announce their tariffs for forthcoming months by the 20th of each preceding month.

September’s tariffs ranged between 68 and 80 cents per KWh, well over August’s levels of between 47 and 58 cents per KWh.

The government is seeking to stabilize prices for consumers through a latest subsidy package, whose amounts offered will be inversely related to consumption levels. It will be implemented as of October 1.

According to sources, highest subsidies will be offered to consumers making a low-consumption category, to be set at a maximum of 500 KWh per month. Slightly lower medium-category subsidies will be offered to consumers using between 501 and 1,000 KWh per month, while consumers exceeding 1,000 KWh per month will be offered the smallest level of subsidies, the sources added.

Higher-level energy consumers who succeed to reduce electricity usage by at least 15 percent compared to a year earlier will be transferred to the next-highest subsidy category, the sources informed.

Natural gas subsidies are expected to be universally applied.

 

 

October tariffs down, subsidies to reward lower power usage

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Supplier electricity tariffs for October, due to be announced tomorrow, will be lower compared to September levels and are seen ranging between 0.599 and 0.680 euros per KWh.

A recently introduced market rule requires suppliers to provide their next month’s prices by the 20th of the preceding month.

Pricing for next month has proven very difficult to calculate as market conditions remain very fluid, TTF index prices changing continuously, market officials noted.

However, Greek market peculiarities, factoring in natural gas prices with some delay, are expected to result in lower retail electricity prices next month, the officials explained.

A day after October’s electricity tariffs are announced, the government plans to release a new subsidy formula, to become effective October 1.

According to sources, three consumption level categories will be established, the subsidies to be offered for each inversely related to electricity usage. For example, consumers with usage placing them in the highest consumption category will receive the lowest subsidies and vice versa.

Also, higher-usage consumers in lower subsidy categories will be elevated to the next highest subsidy category if they can reduce consumption by 15 percent compared to a year earlier.

 

 

 

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.

 

Consumer confusion, distrust over supplier tariff offers

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Many consumers are feeling confused about electricity tariff comparisons and how to go about determining the best supplier deals available in the market, a considerable number of enquiries expressed by energypress readers has indicated.

The confusion of consumers amid the energy crisis appears to have abounded despite the government’s recently introduced simplified system, through which suppliers announce the forthcoming month’s tariffs on a monthly basis. The net price for consumers results once state electricity subsidies have been subtracted.

Common questions asked by consumers include whether they should be on the constant lookout for lower-priced electricity offers, given the monthly tariff announcements by suppliers, which can fluctuate from month to month.

Consumers are also expressing insecurity as to where they should look for finalized, guaranteed price offers of suppliers, once the government’s subsidies have been deducted.

A price-comparison tool introduced by RAE, the Regulatory Authority for Energy, for this purpose does not appear to have convinced some consumers, or helped clarify the market picture for them, even though many consumers are aware of the tool’s existence and are using it.

 

 

Suppliers to increase tariffs in response to fixed-charge limit

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The country’s electricity suppliers are expected to revise upwards their basic tariffs after being subject to a five-euro price cap on fixed charges.

In practical terms, suppliers who, for example, have set a tariff price of 50 cents per KWh and a fixed charge of 20 euros, which will now need to be reduced to 5 euros, will consider increasing their tariffs to 52 cents per KWh in order to offset the loss resulting from the price cap, the latest in a series of energy-crisis measures introduced by the government.

If the country’s electricity suppliers do decide to respond to the latest measure by increasing tariff levels, the government’s price-cap initiative on fixed charges could prove futile.

In the lead-up, electricity suppliers opted to increase their fixed charges to keep their tariffs – the competitive aspect of electricity bills – as low as possible after the government implemented price caps in the wholesale electricity market and abolished wholesale-price adjustment clauses in electricity bills, amongst other measures.

Suppliers are expected to announce their tariffs for next month either today or Monday.

Suppliers asked to recheck, substantiate tariffs for August

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The country’s electricity suppliers have been ordered, by RAE, the Regulatory Authority for Energy, to provide by midday today, data proving that tariffs they announced for August are cost-effective, entirely legal and do not seek to circumvent the law through trickery.

The country’s electricity suppliers announced their tariff levels for August on Monday. From now on, they will be required to announce, on a monthly basis, their prices for the next month by the 20th day of the preceding month.

The latest RAE request may require some of electricity suppliers to recalculate their charges and tiered tariffs.

RAE, in a letter, has asked the country’s suppliers to substantiate the tariff levels they announced on Monday with detailed data.

 

 

Wholesale price adjustment clause set for suspension

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The government is moving ahead with a plan to suspend a wholesale price-related adjustment clause included in electricity bills, to follow the ratification of a RES draft bill that includes an order for temporary implementation of a mechanism  enabling partial returns of day-ahead market earnings through a wholesale electricity market cap.

According to energypress sources, energy minister Kostas Skrekas appears to have accepted a RAE proposal calling for the suspension, as of July 1, of a wholesale price adjustment clause included in electricity bills.

The energy minister is expected to suspend the clause for a total of 11 months, from July 1 to June 1, 2023, through an energy supply code revision.

Electricity prices for consumers will be controlled through a combination of wholesale market intervention (caps on producer earnings) and subsidy support.

According to the plan, electricity suppliers, as of July 1, will have the choice of offering three types of tariffs: fixed; flexible with upper and lower limits; and flexible without upper and lower limits.

RAE introduces five electricity billing categories

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Revised billing layout guidelines forwarded by RAE, the Regulatory Authority for Energy, to electricity suppliers include five billing categories, leading to a framework enabling the suspension of wholesale price clauses.

The five categories offer: fixed tariffs; flexible tariffs with limitless adjustment clauses; flexible tariffs with upper and lower limits to adjustment clauses; flexible tariffs without upper and lower limits to adjustment clauses; and flexible tariffs without adjustment clauses.

The objective is to categorize new bills emerging in the market. The existing categorization system, comprised of three categories, would have led to consumer confusion as a result of structural inconsistencies.

PPC set to offer new fixed tariff package, beginning December 3

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Power utility PPC is introducing a new fixed-tariff package for consumers, as of December 3, as part of the corporation’s hedging formula to offset risks.

The new package will, as of this coming Friday, offer consumers a fixed tariff of 18 cents per KWh, or 17 cents per KWh for online applications, as well as a 50 percent discount on fixed costs for the first six months if applications are lodged by a December 31 deadline. Tariff levels of rival suppliers currently average 23 cents per KWh.

The packages will be offered as one-year agreements and include household coverage for emergency technical support. The insurance policy incorporated into new agreements will entitle holders up to five visits per year from tradesman such as plumbers and electricians and cover damages up to 100 euros per visit.

 

 

Electricity suppliers snub RAE’s tariff categorization proposal

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Power utility PPC and the country’s independent electricity suppliers have responded negatively to a proposal from RAE, the Regulatory Authority for Energy, calling for the categorization of low-voltage electricity tariffs offered to households into three groups, low, limited and high risk, for fixed, partially restricted and floating tariffs, respectively.

According to the RAE proposal, made in related public consultation, consumers taking on greater risk would be offered lower base tariffs, which, however, would be fully susceptible to market forces and resulting fluctuations.

In its response, PPC noted that it agrees on the existence of two consumer categories, offering fixed and floating tariffs, contending further categorization could ultimately unsettle consumers and even prompt negative perceptions of company offers as a result of the use of the high-risk tag.

Mytilineos group, in its remarks, noted that labelling a fixed tariff as a risk-free option would deprive consumers of the opportunity and incentive to change consumption habits or adopt options related to energy efficiency and savings.

 

Wholesale prices in Greece well over European average in 3Q

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Wholesale electricity prices in Greece during the third quarter of 2020 were three times over the €16/MWh European average, based on the Nord Pool power exchange, a European Commission report covering European electricity markets for this period has shown.

The report also traces the market’s 3Q rebound following a heavy slump in the preceding quarter.

Average prices rebounded at a slower pace in southeast Europe, compared to other regions, before reaching pre-pandemic levels in September as a result of weak demand and high production of wind energy and hydropower facilities, according to the Brussels report.

The average price in the third quarter rose by 43 percent, against 2Q, to €43/MWh, and was 30 percent lower, annually.

European price shifts in August moved in coordination, while the price gap between Greece and the European average narrowed significantly in 3Q as a result of the use of lignite-fired units and weak demand.

This gap vanished in September as a result of stronger wind energy output, which exceeded one TWh for the first time. As a result, prices in the region were between €46 and €47/MWh in September.

As for energy-mix developments, lignite-based production in Greece experienced a decreased share, captured by natural gas-fueled output.

In southeast Europe, the lignite-based output share contracted to 29 percent in 3Q from 35 percent in the equivalent period a year earlier; the gas-fueled sector’s production share rose to 20 percent from 18 percent; and the RES sector’s share of the energy mix increased to 34 percent from 30 percent.

Household electricity tariffs in Greece averaged €16.54/MWh (not including taxes and surcharges), while the country’s average for industrial tariffs was €10.62/MWh, the report showed.

Market restrictions on the way for electricity cost reduction

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Energy minister Costis Hatzidakis’ recommendations to gas-fueled electricity producers for price restraint in the market have proven to be just partially effective, prompting RAE, the Regulatory Authority for Energy, to forward for public consultation restrictive measures, which, when legislated, will limit the levels of offers by producers in the balancing market.

Balancing market costs have risen sharply over the past six weeks, since the launch of target model markets, leading to elevated wholesale electricity prices that are now being passed on to the retail market, affecting consumers in the mid and low-voltage categories – households and businesses.

Sixth week target model market data made briefly available yesterday by power grid operator IPTO before being swiftly removed from the company website admittedly showed a de-escalation of price levels compared to unrealistically high levels reached in recent weeks, but, on average, these latest levels remained considerably high.

Taking this latest data into consideration, along with sharp price hikes recorded in the day-ahead market, the energy ministry is fully aware of the fact that electricity market prices could spin out of control if action is not taken.

The package of measures forwarded by RAE for public consultation is intended to restore market rationalization. It remains to be seen if these measures will prove effective.

Non vertically integrated electricity suppliers, hit hard by the increase in wholesale prices, are pushing for retroactive implementation of these upcoming restrictions.

 

Consumers hit with tariff hikes of over 20% in low, mid-voltage

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Sharply higher wholesale electricity prices registered over the past five weeks or so in the energy exchange’s new target model markets have, to a great extent, been quietly passed on by suppliers to consumer tariffs in the household, business and industrial categories, without any related announcements  from suppliers.

Price hikes by electricity suppliers have applied to approximately 35 percent of total electricity consumption, during this period, while tariff hikes have exceeded 20 percent in the low and mid-voltage categories.

In the low-voltage category, suppliers have activated clauses enabling tariff increases when wholesale price levels exceed certain levels.

Very few independent electricity suppliers, both vertically integrated and not, carry fixed-tariff agreements in their portfolios, exposing most consumers to wholesale electricity price fluctuations.

On the contrary, power utility PPC, representing roughly 65 percent of overall consumption, does not include wholesale price-related clauses in its supply agreements, meaning its tariffs have remained unchanged over the past few weeks.

Instead, PPC includes clauses linked to emission right prices in international markets. These have remained relatively steady in recent times.

Even if wholesale electricity prices happen to deescalate in the next few weeks, a likely prospect, some latency should be expected in any downward tariff adjustments by suppliers.

Numerous consumers have lodged complaints with RAE, the Regulatory Authority for Energy, over the tariff hikes by suppliers. Complaints by suppliers against energy producers setting excessively high prices in target model markets have also been made.

Target model balancing cost skyrockets, suppliers on edge

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Balancing costs in the electricity market have exceeded rational limits, skyrocketing to 57 million euros in the fifth week of the target model after totaling 71 million euros during the model’s first four weeks of operation.

Stubbornly high price levels in the wholesale electricity market have created perilous conditions that could lead non-vertically integrated suppliers to bankruptcy, while consumers, beginning with the mid-voltage category, now face tariff hikes as a consequence.

Balancing market costs between November 30 and December 6 doubled compared to a week earlier.

Despite energy minister Costis Hatzidakis’ warning of intervention to producers, whose overinflated offers have prompted this ascent, balancing market costs on December 5 and 6 exceeded 20 euros per MWh, well over levels of between 3 and 4 euros per MWh prior to the target model.

The target model, designed to ultimately homogenize EU energy markets into a single unified market, has been pitched by the Greek government as a price-reducing tool.

Though authorities have played down the price ascent of recent weeks, describing it as a nascent target model abnormality that will settle into place and not prompt consumer tariff hikes, suppliers, under severe pressure as a result of sharp cost increases, have called for immediate measures.

Suppliers have warned they will take legal action against all responsible parties in letters forwarded to the RAE, the Regulatory Authority for Energy, the energy ministry and power grid operator IPTO.

RAE held a meeting yesterday with major-scale producers, who defended their actions, according to sources. The authority limited its reaction to proposals, the sources added.

PPC’s new business plan aims to quadruple EBITDA over 3 yrs

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Power utility PPC’s new business plan covering 2021 to 2023 will strive to quadruple the corporation’s EBITDA figure concerning retail activity to 466 million euros from 104 million euros in 2019 through measures focused on maintaining and rewarding a quality customer base in the low-voltage category, company officials have announced.

PPC, which has just presented its three-year business plan to over 200 analysts and investors at PPC Investor Day 2020, projects a customer base contraction from 6.1 million last September to 4.7 million over the next three years, resulting in a retail market share drop to 54 percent from 64 percent at present.

PPC will seek to control the outflow of customers switching to rival suppliers by holding on to the cream of the crop. The utility will also seek to recapture positive-rated customers who have switched to rival suppliers in recent years.

The utility wants to increase its percentage of positive-rated low-voltage customers to 58 percent in 2023 from 48 percent at present. This goal will be driven by loyalty benefits and discounts specially adjusted to consumption profiles.

The corporation also aims to increase e-billing to represent 42 percent of customers in 2023 from just 10 percent at present. However, the utility will not abandon its network of conventional retail outlets. On the contrary, the company to increase its network of 110 outlets to 150 by 2023, all revamped and equipped with high-tech equipment, including automated payment machines.

PPC will also strive to decrease its unpaid receivables from 2.7 billion euros to 2.2 billion euros by 2023, its securitization packages and tougher collection campaigns being the key tools behind this objective.

 

 

Greece climbs up to 12th place in EU electricity tariff cost rankings

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Greece has climbed seven places, to 12th from 19th, in the EU rankings for retail electricity cost, pushed higher by a government decision reached last year to increase tariffs at state-owned power utility PPC, according to latest Eurostat data.

These tariff hikes at PPC were imposed by the government in August, 2019 to protect the utility from falling into bankruptcy.

The EU rankings concern electricity price levels for household consumption levels between 2,500 to 5,000 kWh, annually.

Electricity tariff increases for households in Greece rose by an average of 8.6 percent in the first half of 2020, compared to the previous half, when the country was ranked 19th.

The first-half tariff price for households averaged € 0.129 per KWh, not including taxes and surcharges, up from €0.1189 per KWh in the second half of 2019.

PPC remains Greece’s dominant supplier, representing 63 percent of electricity consumption.

The PPC tariff increase has made electricity more expensive in Greece than in countries with higher income per capita levels. Electricity is now more expensive in Greece than in France (€ 0.1247 per KWh), Finland (€ 0.1178 per KWh), Spain (€ 0.1178 per KWh) and Sweden (€ 0.1130 per KWh), all with higher income levels. Electricity is also more expensive in Greece than in Portugal (€0.1139 per KWh).

Despite the country’s rankings rise, electricity prices in Greece remain below the EU average (€0.1327 per MWh), a result of the competition generated by independent suppliers, subduing prices.

The biggest electricity tariff decreases in the first half of 2020, compared to the previous six-month period, were recorded by the Netherlands (-31%), Latvia (-12.8%), Slovenia (-11.4%), Sweden (-10%) and Estonia (-8.9%), the Eurostat data showed.

PPC rivals awaiting utility’s next pricing move for response

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Power utility PPC’s rivals are awaiting the utility’s next pricing-policy move before responding with offers of their own. A specially priced three-month package offered by PPC, the electricity market’s dominant player, to its customers as lockdown relief expires on June 26.

Lower wholesale electricity prices over the past couple of months as well as more efficient facility management by PPC, drastically reducing production from loss-incurring lignite-fired power stations, are two factors expected to enable the utility to keep offering appealing packages to customers, sector experts have told energypress.

An initiative taken by PPC during lockdown to equate usually higher tariff rates for consumption of more than 2,000 kWh with rates for consumption below the aforementioned limit could be an indicator of things to come from the power utility.

The market’s major independent suppliers are believed to have studied all possible scenarios in preparation for their respective responses.

PPC chief executive Giorgos Stassis has made clear the power utility’s intentions to regain part of its lost market share. The utility is expected to target specific customer profiles. In addition, bonus services may also be included in packages.

 

 

 

 

PPC financial results for 2019 seen reflecting moves late last year

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Power utility PPC’s financial results for 2019, expected to be released this afternoon, should favorably reflect measures taken by the state-controlled corporation’s administration and the government during the final four months of the previous year, analysts have forecast.

The results, expected once the day’s trading has ended at the Athens bourse, are also expected to include an initial assessment of the impact, so far, of the coronavirus pandemic-induced lockdown on the corporate group.

Also expected is an update on new initiatives, including investment plans, for the rest of 2020, following a forced revision of plans prompted by the pandemic.

PPC’s administration has set an operating profit objective of between 420 and 470 million euros for 2019, up from 150 million euros in 2018.

EBITDA figures of 240 million euros for the fourth quarter of 2019 and 337 million euros for 2019, overall, have been forecast by Pantelakis Securities.

During the final few months of 2019, PPC revised tariffs and abolished NOME auctions, described by company and government officials as a loss-incurring measure for the firm.

PPC expects even greater clarity on its financial standing in the immediate future. The corporation is waiting for more appropriate market conditions to securitize unpaid receivables worth 1.5 billion euros and issue a company bond.

Proceeds from these initiatives are expected to enable PPC to move ahead with an ambitious investment plan.

Independent power suppliers set to raise low-voltage prices

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After raising electricity prices in the mid-voltage category, independent suppliers are now set to do likewise for low-voltage electricity, supplied to households and businesses. A first step by one or more suppliers is expected to  swiftly trigger action from the rest.

Virtually all independent suppliers have activated a clause used to cover elevated System Marginal Prices, or wholesale prices. The power utility PPC has already increased its mid-voltage electricity prices.

Higher tariffs at PPC, still the dominant player, have prompted many consumers to switch supplier in recent times, leading to considerable market share losses for the utility.

Though independent suppliers are currently gaining clients from the PPC outflow, they are also keeping a close watch on each other.

Independent suppliers must keep providing incentives to lure PPC customers, and, at the same time, lessen their risks of financial loss.

Lower-cost electricity acquired by independent suppliers at NOME auctions will soon run out. The government recently decided to abolish this procedure, loss-incurring for PPC. Independent suppliers should start being exposed to the wholesale market’s higher prices in January and will be fully exposed by June.

By this stage, the performance of independent suppliers will greatly depend on wholesale electricity market conditions.

If LNG prices remain subdued, a favorable prospect for the SMP, then independent suppliers, despite their increased exposure to the wholesale market’s conditions, will not be forced into loss-incurring deals but, instead, will be in a position to keep competing against PPC for market share gains.

State-controlled PPC has adopted into its business plan the prospect of a market share reduction to levels of around 60 percent or less by June, 2020. Subsequently, independent suppliers will control 40 percent of the retail electricity market, meaning competition between them, rather than against PPC, stands to intensify.

Any agreements reached during negotiations between the government and the European Commission in January will also impact the market.