EU member states not ready to abandon emergency measures

Posted on June 27, 2023June 27, 2023 by admin

Most, if not all, EU member states are troubled by a European Commission decision reached earlier this month to not permit extensions of emergency energy-crisis measures beyond March, 2024, as they still do not feel secure enough to be left without market protection, despite the drop in natural gas prices at the TTF index to relatively normal levels.

A number of EU member states, among them Spain, Portugal and Romania, have already decided to extend their emergency measures until the end of 2023. Greece has extended its emergency measures until September.

Meanwhile, European energy companies are applying pressure on their respective governments, as well as the EU’s leadership, to lift the range of energy-crisis protection measures introduced over the past year to year-and-a-half in order to rid themselves of market distortions and side effects.

Electricity companies feel that prices have returned to satisfactory levels and are convinced measures such as a price cap on the remuneration of electricity producers are now proving detrimental.

EU member states are not expected to reach any new decisions during summer but will reassess their respective situations as of September. Their governments generally believe energy prices remain susceptible to the slightest of market adversities, as was the case recently, towards mid-June.

Suppliers warn against overregulated new framework for electricity market

Posted on June 23, 2023 by admin

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

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

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

EU adopts Greek proposals for price protection, flexibility

Posted on June 20, 2023June 20, 2023 by admin

The Energy Council of EU energy ministers, which convened yesterday, has adopted two Greek proposals, a mechanism offering protection against energy price increases as well as a flexibility mechanism for gas-fueled power plants, the Greek energy ministry has announced.

The price protection mechanism, supported by Greece, Spain and allies, on the matter, represents the continuation of a windfall earnings recovery mechanism in the wholesale electricity market. If triggered, amounts collected through the mechanism would be used to subsidize consumer electricity bills.

This mechanism had been adopted by the European Commission last year, based on a Greek model, before it was applied by member states with some variation.

Also, within the framework of the EU’s capacity availability mechanisms, energy ministers included a provision allowing availability-related fees for gas-fueled power stations if they meet required technical specifications. This provision will enable a flexibility mechanism to be applied.

Natural gas price spike prompts new market alert

Posted on June 16, 2023June 16, 2023 by admin

News that the Netherlands intends to soon stop production at Groningen, one of Europe’s largest gas fields, as a result of earthquake-related risks, pushed gas prices up by 28 percent yesterday, not surprising, as Groningen is a key gas source for countries in Europe’s west.

The development has made even more urgent the intention of Greece and Spain, along with other EU member states, to reestablish a common front as protection against the outbreak of any new energy crisis.

This group plans to request the continuation of a windfall earnings recovery mechanism in the wholesale electricity market when EU energy ministers meet on Monday to discuss a new structure for the bloc’s energy market.

The Dutch TTF benchmark has risen 113 percent over the past 15 days, from 23 euros per MWh to 49 euros per MWh yesterday, before easing off to 39 euros per MWh.

A temporary disruption of operations at some of Norway’s gas fields has unsettled European markets. Though production at these Norwegian gas fields will soon be normalized, the Netherlands have yet to reach a final decision on the country’s Groningen gas field. However, it is expected to continue producing should a new energy crisis hit Europe or if its upcoming winter is a cold one.

At this stage, ambiguity prevails as it remains unclear if Europe’s natural gas market finds itself at the onset of a new upward trajectory.

A sudden increase in LNG demand in Asia as a result of China’s post-pandemic return to full production is another major concern for European energy market players. Such a development promises to escalate prices.

RAAEY introducing four new retail electricity tariff options

Posted on June 13, 2023June 13, 2023 by admin

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

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

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

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

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

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

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

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

Europe falling behind North America in energy transition race

Posted on June 2, 2023June 2, 2023 by admin

Despite taking the initiative, back in 2010, for action against the climate crisis, Europe has since lost plenty of ground and now lags behind North America in the energy transition race as a result of a lack of measures and incentives to attract related investments.

Evangelos Mytilineos, president and CEO at the Mytilineos group, as well as president of Eurometaux, Europe’s association for non-ferrous metals producers and recyclers, has pointed out this widening gap that separates Europe and North America.

The USA is subsidizing the cost of energy transition projects at a level of 20 percent, while Canada’s subsidy support reaches 30 percent.

Such investment support for energy transition projects is sorely lacking in Europe, more focused on setting goals and proposing actions such as the Critical Raw Material Act, intended to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials.

Europe’s approach is failing to attract investors, and, even more crucially, energy-intensive industries, Mytilineos pointed out. Many are relocating their headquarters to Asia and the USA.

Energy cost is a key factor behind such decisions. Even now, natural gas prices in the EU, which have de-escalated, remain five times higher than in the USA.

Europe was particularly fortunate last winter as a result of lower temperatures, energy savings, the absence of China from markets, and restricted energy demand in the Far East. However, this fortune has begun changing as energy prices in the Far East are now beginning to exceed European prices. LNG tankers are heading back to Asia in increasing numbers.

The Mytilineos group’s chief forecast the USA would recover from the energy crisis sooner than Europe. Canada, also recovering faster, recently lured the Mytilineos group for a 1.16 billion-euro solar energy portfolio acquisition.

Delayed European decisions, held back by greater bureaucracy and the time-consuming need for approvals by all member states, will leave the continent well behind North America in the energy transition race, Mytilineos noted.

RES sector now main Energy Transition Fund contributor

Posted on May 30, 2023May 30, 2023 by admin

The de-escalation of natural gas prices has drastically diminished the level of contributions made by power generation technologies to the Energy Transition Fund, virtually all input now provided by the RES sector, RAAEY, the Regulatory Authority for Waste, Energy and Water, has determined following an assessment of data concerning a related earnings recovery mechanism.

This recovery mechanism has essentially stopped functioning as, in recent months, the average wholesale price in the electricity market has fallen below upper limits set for electricity production technologies.

Since its introduction in the wholesale electricity market last July, the earnings recovery mechanism has so far amassed 3.2 billion euros, of which 2.1 billion euros have been provided by the RES sector.

More recently, over the past five months, a period during which energy prices have been on a downward trajectory, amounts injected into the Energy Transition Fund have shrunk. During this five-month period, a total of 374 million euros have been recovered for the Energy Transition Fund, of which 320 million euros has stemmed from the RES sector.

Power producers and suppliers have, for some time now, been calling for an end to emergency measures applied in the electricity market last summer. They contend that price caps per technology are no longer needed as energy prices have fallen. Maintaining these measures under the current conditions is only leading to market distortions, they support.

Further energy-crisis alleviation projected by EC report

Posted on May 25, 2023May 25, 2023 by admin

The European Commission has projected a further de-escalation of the energy crisis for the rest of the year in its assessment of the impact of measures on Greece’s GDP.

This observation has been included in a post-program surveillance report covering the state of the Greek economy and its developments, just published along with a package of recommendations in the so-called European Semester, part of the EU’s economic governance framework.

Given the rapid decline in energy prices since autumn 2022, expenditure on energy-crisis measures is now expected to be significantly lower than expected, Brussels noted in its report.

The overall cost of energy-crisis measures implemented in autumn, 2022 represented 5.8 percent of GDP, but is now estimated to drop to 0.9 percent of GDP as a result of reduced energy prices, according to the report.

The net cost of energy measures is expected to fall to 0.2 percent of GDP, revised downwards since a 0.5 percent forecast projected last autumn, as a result of a new solidarity levy imposed on refineries.

New residential electricity cost reductions expected for June

Posted on May 18, 2023 by admin

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 20^th 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.

Energy crisis measures to be extended until September

Posted on May 17, 2023 by admin

The energy ministry has decided to extend until September expiring emergency energy-crisis measures implemented in the wholesale electricity market, along with the suspension of a price adjustment clause for electricity tariffs.

A ministerial decision enabling extensions of these measures is expected to be signed today, if it has not been signed already, thereby triggering the extensions prior to this Sunday’s legislative election.

Under the current terms, a recovery mechanism for windfall earnings of electricity producers would expire on June 1. But this measure is now being extended for a further three months, until the start of September.

The ongoing suspension of a price adjustment clause concerning electricity tariffs was due to expire on July 1, but, as a result of the ministerial decision, it is also being extended, for two months, until the start of September.

As the energy crisis has continued to soften, these emergency price-absorbing measures have become less crucial and are deducting diminishing amounts from retail electricity prices of households and businesses.

In April, for example, the recovery mechanism retrieved just 46.3 million euros for the Energy Transition Fund, 41.7 million euros of this sum coming from RES units.

Emergency measures expiring, Athens seeks extension

Posted on May 15, 2023May 15, 2023 by admin

The energy ministry has forwarded an official request to the European Commission seeking an extension, until the end of the year, of emergency electricity market measures that were introduced last summer to combat energy price rises and are set to expire on July 1. Brussels has yet to respond to Athens’ request.

Over the past nine months, the extraordinary measures have proven effective in subduing electricity prices for households and businesses at levels well below those created by the energy crisis.

The energy ministry imposed a wholesale price cap on electricity, interrupted indexation clauses concerning retail tariffs, and has been subsidizing electricity. Also, in an effort to stimulate competition, the ministry set a rule requiring power suppliers to announce their nominal tariffs – not including subsidies – for each forthcoming month ten days in advance, and has given electricity users the freedom to switch suppliers without any penalty costs.

The Greek request forwarded to the European Commission wants this entire package of measures extended until the end of 2023, as protection against any new wave of energy price rises.

Though energy prices have deescalated over recent months, analysts have not ruled out a rebound and reemergence of energy sufficiency issues in Europe next winter.

Russia’s ongoing war in Ukraine and Europe’s inconclusive plan regarding alternative energy sources are the main factors nurturing these concerns.

Market players call for end to measures in DG Energy meet

Posted on April 28, 2023April 28, 2023 by admin

Key local energy market players, meeting yesterday with the European Commission’s Directorate-General for Energy Ditte Juul-Joergensen, in Greece to take part in the ongoing Delphi Economic Forum, have called for emergency energy crisis measures implemented in the wholesale and retail electricity markets to be lifted.

The European Commission official informed that the Directorate-General for Energy plans to publish an impact assessment of temporary energy crisis measures adopted throughout the EU by the end of the month.

Juul-Joergensen asked her meeting’s participating energy market officials to name existing problems and challenges resulting from the energy crisis, discuss how these have been countered, and propose two to three energy policy priorities for Greece and the EU over the next few years.

Besides calling for an end to emergency energy crisis measures implemented in electricity markets, or more specifically, a cap on electricity producer earnings, representatives of ESAI, the Hellenic Association of Independent Power Producers, requested the establishment of a new availability market, either for available capacity or available flexibility capacity.

Representatives of ESPEN, the Greek Energy Suppliers Suppliers Association, who also took part in the meeting, noted that temporary energy subsidies provided in Greece have proved effective in protecting consumers from unprecedented electricity price increases, adding, however, that emergency measures implemented in the wholesale and retail markets have greatly impacted competition.

The pros and cons of measures adopted need to be carefully assessed before any extensions are granted, ESPEN officials noted.

The Greek government has submitted a request to Brussels for an extension of emergency energy market measures until the end of the year. The request is being assessed, Juul-Joergensen informed, without specifying when a decision could be reached.

Government’s energy crisis policy highly effective, PM adviser notes

Posted on April 26, 2023 by admin

The ongoing release of data concerning 2022 continues to confirm the government’s choices in addressing the energy crisis have, on the whole, been highly effective, Nikos Tsafos, the Greek prime minister’s special adviser for energy, has noted in an article contributed to energypress.

There have been many aspects to the energy crisis but the biggest problem for Greece last year was the sharp rise in natural gas prices, the energy expert pointed out. Though the country spent annual amounts of approximately one billion euros for natural gas imports between 2010 and 2019, such spending skyrocketed to 7.4 billion euros in 2022, or 3.4 percent of the country’s GDP, he stressed.

The trade deficit widened considerably, by 38 percent last year, as a result of the rise in natural gas prices, Tsafos noted.

The government faced the challenge, in 2022, of needing to find an additional sum of over six billion euros for natural gas imports required to keep the country rolling, the energy expert pointed out.

The government achieved three goals, the first being to protect the country’s citizens and economy from high-priced energy imports and avoid a derailment of fiscal targets set, the official noted.

Secondly, the administration managed to partially absorb energy price increases without impacting incentive for reasonable energy savings, and thirdly, through its policies, ensured supply security, Tsafos pointed out.

A sum of approximately 10 billion euros made available by the government in 2022 for consumer support, in the form of energy subsidies, was a fundamental part of the administration’s energy crisis policy, the energy adviser noted, adding that, as a result, Greece achieved a higher growth rate than the rest of Europe.

This sum was not taken from the state budget but, instead, raised through windfall taxes imposed in the energy market, Tsafos noted.

As a result, a modest budget surplus, before interest, was achieved in 2022, while the country’s public debt decreased by 23 percentage points, he highlighted.

Tsafos also highlighted society’s positive response to the need for energy savings, noting electricity usage in Greece fell by 6.7 percent in 2022, more than double the European average of 3.1 percent. Natural gas usage in Greece fell by 19 percent last year, well over the European average of 13 percent, he added.

DG Energy chief in Athens this week, talks with minister, company officials

Posted on April 24, 2023April 24, 2023 by admin

Ditte Juul-Joergensen, the European Commission’s Directorate-General for Energy, will be in Athens this week, as part of a visit to participate at the annual Delphi Economic Forum, whose latest edition is scheduled to take place April 26 to 29.

Jorgensen is expected to hold a series of talks with Greek authorities, including energy minister Kostas Skrekas, as well as Greek energy company representatives, most probably on Thursday, sources informed.

The European Commission official is expected to present her view of the Greek energy market and also make note of issues and challenges raised by market participants.

Energy company representatives are expected to request the termination of a wholesale market cap, as well as other energy crisis-related measures applied to the retail market.

Contrary to demands by Greek market players, the energy ministry has forwarded an official request to Brussels for an extension of emergency energy crisis measures until the end of the year.

These emergency measures are set to expire in June but the Greek government wants them extended as protection against any further market turmoil that could lead to a new rise in energy costs.

DESFA opts to not extend expiring FSU deal for LNG terminal

Posted on April 19, 2023April 19, 2023 by admin

Gas grid operator DESFA will not make use of an option to extend its expiring one-year lease agreement for an additional floating storage unit installed at the operator’s LNG terminal on the islet Revythoussa last summer as an energy security measure, the operator’s head official has informed.

“We have already agreed with RAE, the Regulatory Authority for Energy, that it [agreement] will not be renewed and the tanker will be released as it was a temporary solution that served the need to maintain strategic LNG stocks for power generators during the winter period,” Maria Rita Galli, CEO at DESFA, told Greek daily business newspaper Nafteboriki.

The current one-year FSU agreement, worth 20 million euros, expires in June. It ended up being a high-cost solution for DESFA as a result of the mild winter conditions as well as LNG quantity loss resulting from evaporation issues at the upper level of the FSU, a situation that could have been greatly restricted had a decision been reached to connect this unit to the Revythoussa terminal for direct transmission into the grid.

DESFA is believed to be examining the prospect of renting a new tanker for a shorter duration of five months, which would entail far lower cost, energypress sources have informed. If so, DESFA is expected to stage a tender within the upcoming summer for a new LNG tanker lease agreement.

Market officials anticipate the installation of a replacement LNG tanker will probably be needed to cover natural gas storage needs ahead of next winter.

The additional FSU currently in use increased the Revythoussa LNG terminal’s capacity by 70 percent, to approximately 370,000 cubic meters.

Wholesale electricity cap deadline extension sought

Posted on April 12, 2023April 12, 2023 by admin

The energy ministry has taken action aiming to secure extensions for two energy-crisis protection measures, a wholesale electricity cap and freeze of indexation clauses, beyond approaching deadlines.

As part of the effort, the ministry has lodged an application to the European Commission for an extension of a recovery mechanism concerning windfall profits gained by electricity producers in spot markets.

If this application is approved by Brussels, day-ahead and intraday market inflow into the Energy Transition Fund will be maintained. However, this ETF inflow has, in more recent months, been limited by significantly lower wholesale electricity prices. Inflow in March was limited to 56 million euros, just a fraction, for example, of an 878 million-euro amount generated by the windfall profit recovery mechanism for the ETF last August.

Brussels’ approval of the application would pave the way for the suspension of an indexation clause concerning retail tariffs throughout 2023.

The European Commission has already given the green light to Spain and Portugal for extensions, until the end of 2023, of measures taken by the two countries to contain wholesale energy prices. The validity of these measures was due to expire in March.

Under current terms, Greece’s mechanism enabling the recovery of windfall profits gained by electricity producers is set to expire on June 1.

RAE increases distribution usage fee, demand fall a factor

Posted on April 4, 2023April 5, 2023 by admin

A distribution network usage fee included in electricity bills is set for an increase to cost typical households an additional 76 euros or so per year, following a decision reached by RAE, the Regulatory Authority for Energy.

RAE took this decision based on two factors, firstly after opting to offer distribution network operator DEDDIE/HEDNO a regulated revenue increase, its first in many years, which will lift the operator’s required revenue to 981 million euros in 2023 from 744 million euros last year.

The second factor behind the increase is the significant decrease in electricity demand compared to 2019 levels, a decline linked to the pandemic’s lockdown periods as well as the ensuing energy crisis. This decrease in electricity demand has forced RAE to increase the operator’s revenue per KWh.

Ordinary households, using up to 3,750 kWh of electricity per year, can now expect to face annual distribution network usage surcharges totaling 174 euros, up from 98 euros at present, according to calculations conducted by local energy market price-comparison website allazorevma.gr.

Lignite-fired power generation reestablishing itself as costliest

Posted on April 3, 2023April 3, 2023 by admin

The cost of lignite-fired electricity generation has been estimated at 219.34 euros per MWh for April by RAE, the Regulatory Authority for Energy, a level that makes it the costliest form of power production for a second month in a row, well over the generation cost level calculated by the authority for combined-cycle, natural gas-fueled power stations, estimated at 153.04 euros per MWh for the month, a difference of 66.3 euros per MWh.

The wholesale electricity market appears set, this month, to further distance itself from the adversity of energy crisis conditions that have made gas-fueled power generation the costliest form in Greece and other parts of Europe as a result of soaring natural gas prices in international markets.

Last month, lignite-fired power production once again found itself at the top of the list as the costliest form of electricity generation, overtaking gas-fueled generation, for the first time since the beginning of the energy crisis.

The cost of lignite-fired power production exceeded that of gas-fueled production by 48.36 euros per MWh last month, above an initial estimate of 30.54 euros per MWh that grew as a result of an energy ministry revision replacing a fixed 10 euro per MWh surcharge on natural gas used for electricity generation with a 5 percent fee of the TTF level.

Ministry seeking extensions to energy crisis measures

Posted on March 30, 2023 by admin

The energy ministry is seeking extensions to two energy-crisis protection measures, namely a wholesale price cap on electricity, expiring June 1, and an interruption of indexation clauses concerning retail tariffs, set to expire a month later, on July 1.

Although markets have calmed down and deescalated considerably, the ministry believes these extraordinary measures must be maintained as a new spike in energy prices over the coming months cannot be ruled out.

The crisis has eased, at present, but is not over, energy minister Kostas Skrekas has warned, while pointing out that the summer period, when European gas storage facilities are planned to be refilled, will be crucial.

Despite the energy ministry’s concerns, market players as a whole, perceiving energy markets as normalized, are generally anticipating the withdrawal of both extraordinary measures by the existing expiry dates, energy production and supply company representatives made clear at the recent Power & Gas Forum.

These measures are affecting competition and increasing production and supply costs, the market players agreed at the forum.

An extension of the wholesale price cap by the energy ministry will require the approval of the European Commission, which had approved the measure’s implementation.

Power supply cuts up modestly in 2022 despite energy crisis

Posted on March 28, 2023March 28, 2023 by admin

Power supply cuts executed by distribution network operator DEDDIE/HEDNO in 2022 increased by roughly 6,000 compared to 2021, a subdued rise given the ongoing energy crisis and increased energy costs for households.

The operator commended consumers for their ability to adjust to the extreme market conditions.

The number of consumers shifting suppliers in 2022 rose only slightly, to 588,000 customers, up from 555,000 in 2021, despite expectations of greater mobilization in 2022.

However, unrestricted usage, by consumers, of the country’s universal electricity supply service, covering the electricity needs of black-listed consumers who have been shunned by suppliers over payment failures, is a problem for the market, Dimitris Vranis, Director of the Network Users Department at DEDDIE/HEDNO told last week’s Power & Gas Forum in Athens.

The universal service’s current framework, offering consumers usage over limitless periods, has been loss-incurring for suppliers.

Consumer reliance on the universal electricity supply service, up 12 percent this year alone, has grown considerably in recent years. It is provided collectively – by law – by the electricity market’s top five suppliers, based on market share.

Greece to back gas usage cut extension at Energy Council

Posted on March 28, 2023March 28, 2023 by admin

Greek energy minister Kostas Skrekas is expected to back a European Commission proposal for a 12-month extension of a measure supporting a 15 percent reduction of natural gas usage at today’s Energy Council of EU energy ministers.

The group of 27 energy ministers will seek to reach a political agreement on the measure’s proposed extension, from April 1, 2023 to March 31, 2024, so that Europe may also be prepared for next winter should EU member states face gas supply issues or even disruptions.

This measure, first introduced on August 1, 2022, is set to expire in a few days’ time, on March 31. It called for a 15 percent reduction of gas usage during this period, compared to the previous five-year average during the equivalent eight-month periods. Greece exceeded the measure’s target by reducing its natural gas usage by 20.9 percent.

The measure’s gas usage restrictions are voluntary but would become binding should higher-alert conditions come about.

Europe’s natural gas savings stand to reach 60 billion cubic meters over the next twelve months if the EU’s 27 energy ministers agree on a one-year extension of the measure for an annual 15 percent reduction of natural gas usage.

Skrekas, Greece’s energy minister, also plans to present, at today’s Energy Council, the country’s proposal for an EU power grid capacity boost and expansion to facilitate electricity flow from south to north, as part of a wider plan envisaging RES flow from north Africa to Greece and the rest of Europe, via the western Balkans.

Short-term measures sought to contain any new energy crisis

Posted on March 27, 2023 by admin

Energy minister Kostas Skrekas, who believes that recent European Commission proposals to further counter the energy crisis are on the right track but remain too timid, intends to call for firmer, more immediate action aimed at containing any new crisis at tomorrow’s Energy Council of EU energy ministers.

The energy minister is expected to express support of Brussels’ approach at tomorrow’s Energy Council but also underline major challenges faced by Europe, especially next winter, when, according to many analysts, a sharp rise in energy demand will not be able to be covered by existing LNG supply levels, and, as a result, bring about a new round of sharp price rises.

In a recent report, Goldman Sachs reminded that the structural deficit in European gas balances caused by the interruption of Russian gas supply has not yet been addressed.

Any sharp increase in energy demand during the lead-up to next winter, when Russian gas quantities that filled European energy storage facilities last year will have to be covered by the LNG market, could, according to Goldman Sachs, double current wholesale gas prices back up to levels of at 100 euros per MWh, as supply remains limited.

International projects currently being developed to boost global LNG supply are not expected to emerge and offer results before 2025.

Greek officials are seeking the establishment of a new European fund that could provide state guarantees for CfDs and other possible measures included in the European Commission’s set of proposals, such as hedging.

Athens believes that, without some form of support, prospective benefits of measures proposed by the European Commission will be limited to EU member states possessing fiscal leeway and marginalize the rest.

Residential tariff subsidies of 1.5 cents per KWh for April

Posted on March 24, 2023 by admin

Standard electricity subsidies for residential tariffs in April have been set at 1.5 cents per KWh, while the month’s subsidies concerning social residential tariffs (KOT), offered to low-income households, are 5.4 cents per KWh, the overall cost of this support package for the month being 24.4 million euros, energy minister Kostas Skrekas has just announced.

This subsidy outlay, for the month, greatly reduced compared to previous months, has been made possible by lower wholesale electricity prices that enabled retailers to announce, earlier this week, lower tariffs for April.

The government has been providing subsidies throughout the energy crisis to subdue residential tariffs to levels of between 15 and 16 cents per KWh.

Based on recent law, electricity retailers in Greece are required to announce their tariffs for each forthcoming month by the 20^th of every preceding month.

The energy minister has also just announced two new subsidy programs for energy efficiency upgrades of buildings. One of the two support programs will be made available to young adults, while the other is the third edition of the “Saving at Home” program.

The government has offered over nine billion euros in subsidies over the past 20 months to support Greek society amid the unprecedented energy crisis, Skrekas, the energy minister, noted.

Seventy percent of these funds have been generated by a windfall tax on excess earnings of electricity companies, as well as CO2 right auctions, minimizing the state budget’s contribution for electricity subsidies, the minister stressed.

“The energy crisis is continuing. We will continue offering support for as long as it takes,” Skrekas said.

Time to lift energy crisis measures, market players tell Power & Gas forum

Posted on March 23, 2023March 23, 2023 by admin

Extraordinary measures implemented during the energy crisis must now be lifted as they are hampering competition and leading to increased costs for producers and suppliers, energy company representatives stressed during yesterday’s opening day of the Power & Gas Forum in Athens, an event organized by energypress.

Producers and suppliers highlighted that extraordinary measures were introduced as temporary intervention and need to be lifted as they violate the market’s ability to function normally, are affecting competition and also harming market clarity.

Energy firms are operating amid a heavily regulated market with strong state intervention, Dimitris Christou, Director of Legal and Regulatory Affairs at energy supplier Zenith, told the the Power & Gas Forum.

Anastasios Lostarakos, General Manager of energy retailer NRG, echoed these thoughts, telling the forum that extraordinary measures adopted by EU member states to address adverse energy market conditions in 2021 and 2022 should be lifted as soon as possible as the way out of the energy crisis has already begun.

Windfall tax sum for electricity producers trimmed to €340m

Posted on March 7, 2023March 7, 2023 by admin

A sum of just over 340 million euros stands to be collected by the State through an extraordinary 90 percent windfall tax imposed on electricity producers for excess earnings between October, 2021 and June, 2022, RAE, the Regulatory Authority for Energy, has been informed following processing of all related data by chartered accountants.

This amount is less than an initial sum of 373.5 million euros that had been estimated, based on an inspection of preliminary data.

Most of this 33.5 million-euro discrepancy concerns power utility PPC, which will be required to pay a windfall tax that is 31 million euros less than an initial estimate of 276 million euros, now reduced to 245 million euros for this company.

The country’s privately run electricity producers, Mytilineos, Elpedison and Heron, will need to pay an additional sum of 1.2 million euros for this windfall tax, based on the processing of finalized data.

The extraordinary tax measure imposed on electricity producers for the aforementioned nine-month period will, based on current market conditions, not need to be extended.

A major de-escalation in wholesale electricity prices over recent months has greatly reduced revenues amassed by electricity producers and also lessened subsidy support needs for residential electricity consumption.

Fuel sales up 6% in ’22, heating fuel sales rise sharply by 13%

Posted on March 6, 2023March 6, 2023 by admin

Despite the energy crisis, domestic fuel sales in 2022 regained all ground lost during the lockdown period, registering sales just one percent below those recorded in pre-pandemic 2019.

Following two years of decline, fuel sales ended 2022 at 6.805 million metric tons, up 6 percent compared to 2021, when they had reached 6.402 million metric tons.

Last year’s rise in fuel sales was driven by increased tourism and economic activity. All fuel sub-categories ended 2022 with escalated figures, even gasoline, up by a modest 2 percent compared to 2021, despite increased prices at the pump and a further shrinkage of disposable incomes in Greece last year.

Heating fuel sales registered a 13 percent increase on the previous year, to 1.17 million metric tons, primarily as a result of subsidy support offered to consumers. Also, households equipped with natural gas heating systems were offered incentives to prefer fuel heaters.

Diesel sales rose 6 percent in 2022 compared to 2021, reaching 2.697 million metric tons. Besides the year’s greater tourism and business activity, a temporary discount of 15 cents per liter on diesel, offered until the end of September, also helped push up sales in this fuel category.

LPG sales also rose sharply in 2022, by 11 percent compared to the previous year, to 0.875 million metric tons.

Aviation fuel soared by 68 percent in 2022, compared to 2021. Maritime fuel sales rose by 6 percent but were still 21 percent below levels reached in 2019.

Enterprises, farmers spared of public service compensation fees

Posted on March 3, 2023March 3, 2023 by admin

An energy ministry draft bill submitted to Parliament on Wednesday for discussion expected next week includes a provision exempting energy-intensive enterprises in the low and medium-voltage categories, as well as farmers, from public service compensation (YKO) surcharges concerning electricity bills between November, 2021 and March, 2022.

The energy-cost relief promised by this four-month exemption to consumers of the aforementioned categories is estimated to be worth approximately 63 million euros.

Public service compensation surcharge payments for these categories of consumers were initially suspended, from the end of 2021, at the height of the energy crisis, in order to ease their energy-cost burden.

At the time, government officials originally planned for these suspended public service compensation amounts to be paid at a latter date, once electricity prices had deescalated.

At the beginning of this year, the energy ministry noted these amounts ought to be abolished as a result of fiscal leeway provided by a surplus of the public service compensation’s special account.

Registration process in progress for 4th Power & Gas Forum

Posted on February 16, 2023March 2, 2023 by admin

Energypress is staging the fourth edition of its Power & Gas Forum on March 22 and 23 at the Wyndham Grand Athens Hotel, an event whose agenda has acquired even greater urgency as a result of the ongoing energy crisis that has put under the spotlight gas and electricity markets, now the focus of economic, political and social interest.

Conference speakers and attendees will participate in person. The event’s registration process has begun and will continue until all available places have been filled.

All proceedings will be broadcast live, with free access, in Greek and English.

Universal supply service takes on 50,000 extra meters in 2022

Posted on February 13, 2023February 13, 2023 by admin

An estimated 50,000 low-voltage consumers around the country resorted, in 2022, to the universal electricity supply service, covering the needs of black-listed consumers who have been shunned by suppliers over payment failures, latest electricity market figures have shown.

The number of households and businesses now being supplied low-voltage electricity via the universal electricity supply service – provided collectively, by law, by the electricity market’s top five suppliers, based on market share – rose to a level of approximately 198,000 at the end of 2022, up from roughly 148,000 a year earlier, a sharp rise highlighting the troubles consumers are having covering electricity bills amidst the energy crisis.

Given these figures, the universal electricity supply service, charging consumers higher tariffs, is ranked sixth in terms of power meters represented, essentially meaning that only power utility PPC, the dominant retail market player, and four other electricity suppliers hold greater market shares.

PPC ended 2022 with 80,000 fewer low-voltage customers, after losing some 255,000 customers in this category in 2021.