energy costs

TSO operating costs examined in effort to contain energy cost

Posted on by admin

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.

Electricity market measures to be announced next Wednesday

Posted on by admin

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

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

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

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

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

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

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

Ministry’s single variable tariff intended to boost competition

Posted on by admin

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.

Significant emission cuts from domestic industry, SEV notes

Posted on by admin

Greece’s industrial sector is now responsible for 47.5 percent of the country’s total carbon emissions, down from 59 percent in 2010, with plans for more reductions further ahead, SEV, the Hellenic Association of Industrialists, has noted in a special report.

Greek industry has reduced greenhouse gas emissions by 43 percent over the last 10 years, the sixth largest reduction in the EU, SEV highlighted in its report.

Furthermore, the sector’s share of energy consumption is lower than in most European countries, accounting for only 17 percent of consumption, the SEV report noted.

Renewable energy facilities installed by domestic industrial and energy groups are playing a key role in Greece’s transition to cleaner forms of energy, according to the association.

Greek industry is supporting European goals for climate neutrality by 2050 by investing in renewable energy sources and reducing carbon emissions, while also improving efficiency of resource utilization, SEV noted.

However, high energy costs, environmental-impact limitations and a lack of investment incentives in the EU, putting European firms at a disadvantage compared to US competitors, are tempting many European enterprises, including Greek, especially energy-intensive companies, to consider moving out of the continent, a development that threatens to bring about a new wave of deindustrialization, SEV warned in its report.

Investments in green or digital technologies, as well as in production of crucial raw materials, to end a reliance on non-EU countries, are needed, the report noted.

Though energy costs have fallen considerably since the summer of 2022, they remain high and stand as one of the biggest challenges faced by the industrial sector, SEV pointed out.

Energy costs in Greece are among the highest in the EU, SEV stressed. Last August, wholesale electricity in Greece was priced at 109.33 euros per MWh, compared to 94.41 euros per MWh in Germany, 90.96 euros per MWh in France, 96.09 euros per MWh in Spain, and 97.91 euros per MWh in Portugal.

SEV, in its report, presented four proposals aimed at protecting the competitiveness of Greek industry.

It called for the implementation of energy cost-restricting mechanisms and tools; reinforcement and expansion of electricity transmission networks, as well as development of new networks that could establish Greece as an energy hub in the wider east Mediterranean; sufficient development of energy networks to support RES facilities in their production of electricity for the industrial sector; and financial support for green-transition investments in new technologies such as CO2 capture and storage.

 

No sum for energy-crisis support in 2024 draft budget

Posted on by admin

Consumers face a challenging winter in terms of energy costs, as indicated by a number of revisions included in the 2024 draft budget, just submitted to Parliament.

Besides the absence of horizontal energy-support measures, the budget draft does not provide for any special reserve that would cover energy-crisis situations.

Fiscal concerns expressed by the European Commission, pressure by the ECB for an end to generous support that is cancelling out monetary policy, as well as the normalization of energy market conditions are key factors behind these budget restrictions for energy consumers, who were offered substantial support in 2022 and 2023.

A senior member of the government’s economic staff, responding to questions during a briefing yesterday on budget figures, admitted that no energy-related safety cushion for consumers was included in the country’s financial package for 2024. However, the official did point out that corresponding action would be taken to meet any potential needs, should they arise.

This essentially means that certain support measures offered last winter would only be recalled if deemed necessary, to avoid burdening the budget in advance.

For the time being, the only emergency amount included in the draft budget is a 600 million-euro sum for natural disasters.

Contrary to last winter, the draft budget for 2024 does not include any sum for heating fuel subsidies. If any support, on this front, is eventually offered to consumers, it would result from initiatives taken by refineries. Clarity is expected around mid-October, when the heating-fuel trading season commences.

Also, horizontal electricity subsidies, for all consumers, will cease to apply as of January, when electricity suppliers will be introducing new pricing policies, to include indexation clauses or similar pricing tools.

Horizontal support for natural gas purchases also appears set to be scrapped as of January, given the gas market’s currently subdued prices.

The absence of any reserve amount for potential energy crises stands as the draft budget’s fourth major energy-related change, compared to last winter. If needs do arise, they will seemingly be dealt with via the Energy Transition Fund, not the budget.

Brussels forecasts lower gas prices, concerned about oil

Posted on by admin

The European Commission has projected energy prices falling at a slower rate for the remainder of 2023 before rising again in 2024, especially for oil prices.

Brussels made its forecast before OPEC+ announced it would extend production cuts until the end of this year, which pushed the price of Brent up to a level of 90 dollars per barrel.

As for electricity and natural gas prices, the European Commission report notes prices have fallen since spring.

For the third quarter of 2023, the European Commission expects price levels to be 21 percent lower for natural gas and 25 percent lower for electricity, compared to its previous estimates.

Brussels has forecast an electricity price average of 109 euros per MWh in 2023 and 140 euros per MWh in 2024, down from 130 and 160 euros per MWh, respectively, in its spring report. This revision was attributed to a rapid expansion of liquefaction terminals on the continent and full gas storage facilities.

The Brussels report projects economic growth of 0.8 percent this year in the Eurozone and the EU, slightly below a previous 1 percent growth forecast, while economic growth in 2024 is seen reaching 1.3 percent, down from 1.6 percent projected in the spring report.

The German economy, Europe’s biggest, is now seen contracting by 0.4 percent this year, rather than growing 0.2 percent, as was previously projected.

EU industrial production fell by 1.1 percent in the second quarter of 2023, compared with the previous quarter, despite falling energy prices, the Brussels report noted.

Local tariffs down in March, reflecting European trend

Posted on by admin

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.

Suppliers spared of €10/MWh cost on electricity producers

Posted on by admin

Electricity suppliers will no longer be factoring into their tariffs a special surcharge of 10 euros per MWh on natural gas used for generation purposes following a recent revision to this extraordinary measure.

The country’s power retailers are currently working on their tariffs for April, due to be announced on Monday, based on a recent law requiring suppliers to announce price levels for every forthcoming month by the 20th of each preceding month.

Though the aforementioned flat-rate surcharge no longer applies, electricity producers have not been entirely spared of special contributions. An amendment that came into effect this month now requires electricity producers to contribute to the state a monthly surcharge that is equivalent to 5 percent of the TTF natural gas index.

The now-terminated special surcharge of 10 euros per MWh on natural gas used by producers for generation purposes is estimated to have increased retail electricity bills by 18 to 20 euros per MWh.

Though the eventual cost – for consumers – of the new TTF-based surcharge remains unknown, it will definitely be lower than costs resulting from the flat-rate formula. Lower TTF levels will mean lower related costs for electricity producers, which, by extension, will enable suppliers to offer reduced retail prices.

Suppliers are expected to announce reduced tariffs for April on the 20th of this month as wholesale electricity prices and the TTF index have been on  downward trajectories.

Independent suppliers are forecast to offer tariffs of around 0.20 euros per kWh, a reduction of 0.02 to 0.03 euros per kWh compared to levels for March. Power utility PPC may lower its prices below 0.20 euros per kWh, according to unconfirmed reports.

These lower prices will essentially not offer reduced prices for consumers, but the government’s subsidy support policy, keeping retail power prices at levels of between 14 to 16 cents per KWh, will cost the administration less.

 

Brussels proposals include PPA priority, RES growth support

Posted on by admin

A series of European Commission proposals for the EU electricity market do not call for any major changes to its structuring but make note of the need for mild revisions to the current model through the implementation of various market tools.

A draft of the proposals, obtained by energypress ahead of their official presentation, scheduled for March 14, highlights the need for industry to be provided obstacle-free access to long-term tools, such as PPAs; consumer rights for fixed tariffs and improved market information; and long-term markets offering investment support for RES development.

Also, revisions must ensure that the benefits of renewables reach consumers, the draft notes, placing emphasis on the functioning of the intraday market and its improved liquidity.

It also calls for transmission operators to develop a market tool limiting consumption peaks during the most challenging times of the day as a means of better managing demand and limiting prices.

The European Commission, according to the draft, continues to support the existing market model, stressing “it has provided a well-integrated market, allowing Europe to reap the economic benefits of the single energy market under normal conditions, assuring adequacy of supply and decarbonization”.

However, it admits that “in the midst of the crisis the current model has shown certain major weaknesses related to elevated and volatile fuel prices and short-term electricity markets that have exposed consumers to significant price increases”.

 

Revisions aim to reduce energy cost for most consumers

Posted on by admin

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

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

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

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

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

Athens electricity prices ranked 15th among 33 EU cities

Posted on by admin

Household electricity price levels in Athens were slightly below the EU average for yet another month in December, ranked 15th among 33 European cities included in a Household Energy Price Index (HEPI) survey.

Household electricity prices in Athens averaged 0.30 euros per KWh in December, just under the EU average of 0.317 euros per KWh.

Residential electricity prices were highest in Brussels, Prague, Copenhagen, Rome, Berlin, Amsterdam, Dublin and London, ranging between 0.50 and 0.54 euros per KWh.

The biggest electricity price drops in December were recorded in Vienna (-39%), Berlin (-19%), Rome (-18%), Paris (-11%), Brussels (-8%) and Oslo (-5%), the HEPI survey showed. December prices in Athens fell by one percent.

European effort for energy cost solutions well underway

Posted on by admin

European discussion for electricity market reforms that could lead to permanent solutions for lower-cost energy by detaching the cost of electricity from natural gas is well underway.

European Commission authorities, institutions, major enterprises and other electricity market players are currently putting forward proposals until December, when Brussels is expected to issue its own proposal for consultation, as has just been noted by Mechthild Wörsdörfer, deputy director general for the European Commission’s Directorate-General for Energy.

Discussion for longer-term reforms is planned to continue in February and March. Reforms will need to be approved by the European Parliament, as well as by the Energy Council of Ministers, in order to become binding.

The overall approach is based on a proposal forwarded by Pantelis Kapros, Professor of Energy Economics at the National Technical University of Athens, supporting the need for remuneration of renewable energy, as well as electricity production generated by other low-emission technologies, such as nuclear, to be based on actual cost through long-term agreements rather than through the day-ahead market, whose levels are determined by wholesale market prices.

According to Kapros’ proposal, wholesale market prices should be used to determine remuneration levels for fossil fuel-based energy production technologies (coal, lignite, natural gas) as well as hydropower facilities with water reserves and energy storage units.

Athens gas prices fall 55% in October, power up 2%, HEPI study shows

Posted on by admin

Natural gas prices in Athens plunged 55 percent in October, compared to the previous month, while electricity price levels rose by just 2 percent during this period, making the Greek capital one of Europe’s cheapest for household energy, a monthly study conducted by the Household Energy Price Index, covering European cities, has shown.

Local energy subsidies have played a key role in subduing energy prices, coming as crucial support for households in Greece, where disposable income levels are well below European standards.

Athens ranks 17th – in terms of household gas cost – among 28 cities surveyed for the HEPI study. October’s 55 percent drop in household gas prices for Athenian consumers was Europe’s biggest drop for the month, the study showed.

On the contrary, significant natural gas price increases were recorded in a number of cities, including Rome (97%), Luxembourg (64%), Lisbon (58%) and Dublin (34%).

The cost of a kilowatt hour for households in Athens was 0.1235 euros, almost 0.06 euro per KWh less than the EU average of 0.18 euros.

Households in Budapest were charged less than Athenians for natural gas in October, the price level in the Hungarian capital averaging 0.0252 euros per KWh. So, too, were households in Belgrade, where the gas cost last month was 0.0353 euros.

On the contrary, the cost of natural gas was highest for households in Amsterdam, reaching 0.4208 euros per KWh, Copenhagen (0.4055 euros per KWh) and Vienna (0.3390 euros per KWh).

The HEPI study, which surveyed 33 European cities for household electricity cost in October, placed Athens in 15th place with a cost of 0.3022 euros per KWh, 0.05 euros per KWh below the EU average.

Greece ranked among Europe’s most affordable cities in terms of energy cost as a result of considerable electricity and gas subsidies offered in the country.

A total of 2.3 billion euros has been raised though an extraordinary tax on electricity producer earnings between July and the present to help fund government subsidies for household electricity.

Fuel cost instability causing market confusion, uncertainty

Posted on by admin

Wildly fluctuating fuel prices are causing confusion in the petroleum market. Yesterday, officials witnessed an unanticipated plunge in Platts heating fuel prices for the Mediterranean, down by 120 euros per ton, a reduction resulting in a retail price of 1.45 euros per liter for households in Greece, well under Monday’s forecasts that had projected price levels in excess of 1.55 euros per liter.

Market officials have not attributed this sharp price drop for heating fuel to supply and demand factors. With winter trading for this fuel set to begin on October 14, market uncertainty is high.

Meanwhile, diesel prices are moving in the opposite direction, continuing along their upward trajectory. Quite extraordinarily, the cost of diesel now steadily exceeds that of gasoline, despite traditionally being far cheaper.

This unusual trend has been attributed to an increase in demand for diesel amid the energy crisis. An increasing number of industrial consumers in Greece and other parts of Europe are turning to diesel as an alternative to natural gas in an effort to save on energy costs.

Contrary to diesel, demand for gasoline in Greece has fallen, dropping 15 percent, according to market officials, as a result of less vehicle usage. The end of the summer tourism season has also contributed to this decline.

 

Tourism boom revenue will help fund winter’s energy subsidies

Posted on by admin

The Greek tourism industry’s strong revenue figures being generated this summer, which could exceed those of the record-breaking summer of 2019 if July’s heightened activity is sustained through August, will prove invaluable in financing energy subsidies needed in coming months.

At the current rate, Greece’s tourism industry could contribute between 19 and 20 billion euros to the budget, well over the budget forecast of 16 to 17 billion euros.

International authorities, including Fatih Birol, executive director of the International Energy Agency, are warning of even tougher times ahead.

European countries greatly dependent on Russian natural gas are scrambling for solutions ahead of next winter. Germany is seeking nuclear-energy assistance from France. Chancellor Olaf Scholtz has reiterated energy prices will remain high for some time yet. Italian energy company Enel has warned customers that it cannot guarantee gas and electricity prices will continue to be offered under current agreements.

Latest calculations indicate that Greece’s electricity bill subsidies for households and businesses could soon exceed one billion euros per month.

The country’s electricity subsidy cost for August is expected to greatly exceed July’s figure of 722 million euros, which was based on a cost of 240 euros per MWh, now over 300 euros per MWh.

 

Brussels report highlights EU’s alarming energy cost increase

Posted on by admin

The cost of wholesale electricity in the EU rose by over 400 percent in the first quarter of 2022, compared to the equivalent period a year earlier, while gas imports during this period cost the EU a total of 78 billion euros, of which 27 billion euros concerned Russian natural gas quantities, a report published by the European Commission’s Directorate-General for Energy has shown.

Households and businesses across the continent have faced unprecedented natural gas cost increases following Russia’s invasion of Ukraine in February. Consequently, the TTF index skyrocketed to peak at 212 euros per MWh on March 7.

The EU adopted a series of sanctions primarily concerning the energy sector as a result of the Russian attack, the report noted. Also, in May, the EU approved its REPower EU plan, designed to gradually end Europe’s reliance on Russian fossil fuels, bolster the continent’s energy security, and support the green-energy transition.

Imports of Russian gas fell by 71 percent via Belarus and 41 percent via Ukraine in the first quarter of 2022, compared to the equivalent period a year earlier. Gas inflow from the Nord Stream pipeline linking Russia with Germany fell by 60 percent in early June.

Europe’s wholesale electricity price averaged 201 euros per MWh in the first quarter of 2022, 281 percent higher than the equivalent period in 2021, the report noted.

Spain and Portugal registered the highest wholesale electricity price increases during this period, a 411 percent rise, followed by Greece (343%) and France (336%), the report noted.

Gov’t faces fiscal battle for manageable energy bill costs

Posted on by admin

The government faces a tough fiscal battle to keep energy bill costs within the reach of consumers, a continuously growing challenge given the persistent rise in the price of natural gas, a key source for electricity generation, as a result of escalated tensions between the West and Russia over the latter’s war in Ukraine.

The continual rise in energy prices threatens to derail the government’s support plan for energy consumers and producers.

Last Friday, the price of wholesale natural gas ended trading just under 150 euros per MWh. Its cost rose by 70 percent between June 1 and July 1, from 87 euros per MWh to 147.5 euros per MWh.

The government is searching for fiscal leeway to limit energy prices, compensate producers and subsidize consumer energy bills.

As part of the effort, energy minister Kostas Skrekas has pledged to raise close to 6 billion euros over the next 12 months by taxing windfall profits of producers. This sum is expected to be boosted further by contributions from the Emissions Trading System (ETS), budget and European funding programs.

It remains unclear if the overall amount to be raised will be enough. The cost of electricity and gas bill subsidies in 2022 could exceed 6 billion euros. The cost in the first half of the year reached 2.4 billion euros, while 3.6 billion euros have been budgeted for the second half of the year.

 

January subsidies lower Greece’s energy cost ranking

Posted on by admin

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

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

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

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

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

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

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

 

Wholesale power up to nearly €300/MWh, subsidies prepared

Posted on by admin

The wholesale electricity price has risen for a fourth consecutive day, reaching nearly 300 euros per MWh, the highest level recorded this month.

Today’s day-ahead market price is at 293.79 euros per MWh, a 42 percent increase compared to the price registered on January 22, when prices last dipped, falling to 206.46 euros per MWh.

The energy mix covering demand today is dominated by natural gas-fueled generation, representing 40.1 percent, while renewable energy sources and hydropower, both capable of containing prices, are limited to 19.97 percent and 6.52 percent of the energy mix, respectively. Lignite-fired power stations are contributing to today’s energy mix with an elevated 14.77 percent share, while electricity imports are also high, representing 14.34 percent of the mix.

According to market analysts, low wind levels have severely restricted wind energy output during nighttime hours, which prompted the need for electricity imports to cover domestic electricity demand.

Wholesale electricity prices are expected to fall to levels below the December average level of 235 euros per MWh, according to projections.

The government is currently analyzing market data to calculate the level of electricity subsidies to be offered for February. No major changes, compared to the current month’s subsidy package, are expected.

Businesses are expected to receive uniform subsidy support in February. Criteria shaped by the energy ministry have yet to be approved by the European Commission.

Athens among Europe’s ten most expensive cities for energy

Posted on by admin

Athens ranked among Europe’s ten most expensive cities for electricity and natural gas last December, according to a monthly Household Energy Price Index (HEPI) report.

The data, collected for the HEPI report by the regulatory authorities for energy of Austria (Energie Control) and Hungary (MEKH) in association with energy consulting firm VaasaEET, highlighted the skyrocketing electricity and gas prices around Europe.

The Greek capital was ranked sixth in terms of retail electricity cost in December, Athenian households paying an average of €0.315 per KWh.

Copenhagen was Europe’s most expensive city for electricity with a December average price of nearly €0.40 per KWh. The Danish capital was followed by London (€0.396), Brussels (€0.37), Berlin (€0.362) and Amsterdam (€0.343). These price levels include taxes.

Electricity prices averaged €0.24 for the EU and €0.23 for the total of 33 cities included in the survey.

The lowest electricity prices were recorded in Kiev (€0.0546), Belgrade (€0.0811), Budapest (€0.105), Podgorica (€0.105), Valletta (€0.123) and Sofia ((€0.123).

Athens recorded the biggest electricity price increase in December, compared to November, which reached 22 percent. The Greek capital was followed by Stockholm (17%), Warsaw (12%) and Amsterdam (11%).

Athens was also high on the list of natural gas prices for households, ranking seventh in December with an average price of €0.12 per KWh.

Stockholm topped this list with an average price of €0.234 per KWh, followed by Copenhagen (€0.194), Amsterdam (€0.19), Bern (€0.143), Rome (€0.13) and Vienna (€0.125).

Europe’s lowest natural gas prices, ranging from €0.025 and €0.05, were recorded in Kiev, Budapest, Belgrade, Bucharest, Warsaw, Bratislava, Zagreb and Riga.

 

 

 

French power pricing proposal tops EU energy ministers talks

Posted on by admin

French Minister of the Ecological Transition Barbara Pompili is expected to reiterate her proposal for a detachment of electricity pricing from natural gas prices, an initiative supported by the Greek government, at a meeting of EU energy ministers tomorrow in France.

The meeting, in Amiens, northern France, is being staged following the release of a latest European Commission report projecting natural gas and electricity prices will remain elevated over the next two to three years.

Though tomorrow’s meeting is the first day of an informal two-day session, the electricity pricing issue will be tabled as the French government, which has just assumed the EU’s rotating presidency, has prioritized revisions for the wholesale electricity market, the intention being to achieve retail prices that reflect the energy mix’s average cost.

According to sources, French officials believe conditions have ripened for an agreement on needed revisions which, according to a statement published on the French EU presidency’s website, will aim to protect consumers from extremely volatile and record-high natural gas and electricity prices, will also striving to achieve EU climate objectives.

 

 

Surcharge relief measures for gas consumers, industry, farms

Posted on by admin

The energy ministry is preparing to suspend natural gas bill surcharges for the difficult winter months ahead, to help consumers not eligible for electricity bill subsidies cope with extremely high prices brought about by the energy crisis.

Energy minister Kostas Skrekas has submitted a related draft bill to parliament that will suspend gas network usage surcharges for November and December. The amounts to be saved, however, will need to be equally divided by suppliers into four monthly installments payable by consumers as of April, 2022.

Natural gas suppliers will also be offered corresponding cost relief through the measures. Their surcharge payments to operators, normally forwarded after having being received from consumers, will be delayed and divided into monthly installments beginning in March next year.

The draft bill also includes cost-relief measures for industrial and agricultural consumers, whose surcharges for public service compensation (YKO) will be suspended between November 1, 2022 and March 31, 2022.

The public service compensation account is currently in surplus territory as a result of amounts saved by the Cretan grid interconnection with the Peloponnese. Previously, high-cost units in Crete were subsidized through the YKO account.

Electricity cost support in 2022 to be limited by fiscal deficit

Posted on by admin

Electricity bill subsidies are expected to be extended into 2022 but will not be offered universally for all household income categories, as has been the case this year, as a result of the fiscal deficit, seen closing 2021 at approximately 7 percent of GDP, despite GDP growth that is projected to exceed 8 percent.

The resulting lack of leeway has been pointed out by officials at Greece’s finance ministry as well as the European Commission, which has called for targeted energy-crisis support for lower-income households.

The government is preparing for a new round of negotiations with Brussels for household energy support measures in 2022.

In recent months, Athens has offered electricity-bill subsidies to all household consumer categories, regardless of income level, worth 39 euros per month for the first 300 KWh of consumption.

Given the projected fiscal deficit, the government has little financial leeway to keep offering a universal energy support package in 2022.

The administration needs to find new ways of supporting households unable to cope with exorbitant energy costs if price levels remain high next month.

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

Posted on by admin

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

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

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

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

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

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

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

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

 

Suppliers commend power bill subsidies, disapprove DEPA Commercial support

Posted on by admin

Energy suppliers have commended the government’s subsidy support package for electricity bills, stating the initiative is headed in the right direction, but, on the contrary, disapprove government intervention offering support to state-controlled gas supplier DEPA Commercial that will enable the company to absorb 15 percent of the natural gas cost increase.

This support offered to DEPA Commercial affects competition and the market’s overall functioning, rival gas suppliers protested. “DEPA Commercial may be a state-controlled company but this does not spare the firm from having to comply with free market and competition regulations,” a rival company official remarked. “The government’s move raises competition issues,” the official added.

As for the electricity bill subsidies, these will protect consumers from having to carry the entire burden of the surge in prices, while, on the other hand, suppliers will benefit from some cashflow relief as they will be requiring greater capital amounts at present and in the mid to long term, suppliers added.

 

 

 

Three-part energy crisis plan to begin with €500m in subsidies

Posted on by admin

A government plan aiming to soften the effects of the energy crisis, which could last well into 2022, will be comprised of three stages, beginning with a 500 million-euro support package including double the amount of previously announced subsidies for electricity, as well as natural gas and heating subsidies.

The plan, whose details are expected to be announced later today, will then continue with a second support package for low-income households around Christmas time.

The third part of the plan, whose details will be announced at a latter date, is expected to entail the establishment of a mechanism absorbing extraordinary energy costs.

For its three-part plan, the government presumes the energy crisis, caused by an unfavorable combination of international factors, will last well into 2022. Some analysts believe the crisis could persist throughout next year.

Consumers throughout Europe are facing exorbitant electricity and natural gas costs that have increased multifold over the past few months.

 

 

Doubled gas prices for winter start, electricity cost soaring

Posted on by admin

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

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

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

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

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

 

NTUA study surveying energy price effect on green objectives

Posted on by admin

The European Commission has commissioned the National Technical University of Athens’ E3 Modelling department with the task of examining scenarios on the EU’s ability to achieve ambitious green energy goals in the event that natural gas, fuel and CO2 emission prices remain high.

The NTUA had also been commissioned to conduct research that served as the basis for most of the twelve legislative proposals forwarded by Brussels for its Fit-for-55 climate-change framework, aiming for a 55 percent reduction of carbon emissions by 2030, compared to 1990 levels.

Early findings produced by the latest NTUA survey have shown that the swiftest possible market penetration of renewable energy sources will not cause further problems linked to the higher energy prices at present but, instead, create favorable conditions for a return to market equilibrium, energypress sources informed.

Swifter market entry of RES units and their full induction into the private-sector market as an energy supply base for customers represents a positive response to the higher natural gas prices, Pantelis Kapros, Professor of Energy Economics at NTUA pointed out in a recent article. The impact of a faster RES entry, however, will not be felt immediately but will require two to three years to produce results, he added.

RES operator given control of new Energy Transition Fund

Posted on by admin

DAPEEP, the RES market operator, whose influence in the energy market is growing, will be given control of the new Energy Transition Fund, a move promising to give the operator a key role in efforts to counter energy cost increases when prices are at exorbitant levels, as is the case at present.

A large percentage of the ETF’s revenues will come from CO2 emission right auctions, staged by DAPEEP.

Through its authority over the new ETF, DAPEEP will be in a position to manage state funds, including, for example, planned subsidies for natural gas bills, expected to be derived from the state budget, at least for the final quarter of 2021, sources informed.

In due course, DAPEEP, through the ETF, will also manage funds to be generated by other prospective green surcharges, including an expected expansion of the carbon emission rights system into transportation and buildings.

These new roles promise to further establish the place of DAPEEP in the domestic energy market.

Brussels hesitant on hedging mechanism for energy prices

Posted on by admin

A Greek proposal for the EU’s adoption of a temporary hedging mechanism as a means of easing the burden of sharply risen energy costs on consumers, to be tabled at a Eurogroup meeting of EU finance ministers today, will be met with hesitancy as the European Commission would not want to bring to the negotiating table issues linked to the Emissions Trading System, fearing any potential need of a compromise with member states opposed to the ETS, such as Poland, well-informed sources anticipate.

The European Commission has fought hard to establish the ETS as a means of combating climate change.

The temporary hedging mechanism would draw funds from the Emissions Trading System’s auctions of CO2 emission rights.

The hedging mechanism was proposed several weeks ago by Greek energy minister Konstantinos Skrekas and will be officially presented by Greek finance minister Hristos Staikouras to his European counterparts at today’s Eurogroup meeting.

The EU finance ministers will be focusing on the alarming increase in energy prices, prompted by a combination of international factors, though finalized decisions at this session are considered unlikely.