Auto fuel subsidies, grants in support package worth €1.1bn

Posted on March 17, 2022March 17, 2022 by admin

A latest energy-crisis support package, worth a total of 1.1 billion euros, will offer consumers auto fuel subsidies of at least 15 to 20 cents per liter for up to 60 liters of fuel per month, an extraordinary allowance for lower-income individuals to average up to 300 euros, as well as 60-euro electricity subsidies for March.

An income-limit criterion of 30,000 euros will need to be met for auto fuel subsidies, while the income criterion for the extraordinary allowance is expected to be set at a lower level.

As has been the case with electricity subsidies until now, consumers will not need to meet any criteria to become eligible for this part of the support package.

Individuals seeking auto fuel subsidies will need to submit applications to a finance ministry-linked online platform so that authorities can check on vehicle ownership and income levels of applicants.

The full details of the package are expected to be announced by government officials early today.

At least half of the support package’s 1.1-billion euro sum will be covered by Energy Transition Fund money, while the rest will stem from the state budget.

Suppliers being reimbursed for January, February subsidies

Posted on March 16, 2022March 16, 2022 by admin

Energy suppliers have begun receiving payments covering electricity and natural gas subsidies offered to consumers for January and February on behalf of the Greek State, sources have informed energypress. The amounts received so far total approximately 50 million euros and are being provided through the Energy Transition Fund, the sources added.

Reimbursements began being offered last week after RES market operator DAPEEP forwarded a related application form to suppliers requesting customer and respective subsidy details.

Suppliers are being swiftly reimbursed, even on the same day, when submitting this information, on a special template, the sources noted.

Some suppliers have yet to fill in the procedure’s template as they have needed to make IT revisions in order to forward information in the fashion requested by DAPEEP. All suppliers are expected to have submitted their templates to the operator within the next few days.

Once suppliers have been reimbursed for January and February subsidies, they will begin receiving payments for subsidies provided in March.

The government’s energy subsidy package for March, announced at the beginning of this week, remains unchanged, compared to February, meaning the subsidy program for the three-month period covering January to March is worth a sum of 999 million euros, 856 million euros for household and non-household electricity subsidies and the other 143 million euros for natural gas subsidies.

Highlighting the RES sector’s significant contribution to the government’s support measures for consumers, a sum of 780 million euros will be transferred from the RES special account to the Energy Transition Fund by May, the latest, for further subsidies, following a related ministerial decision.

Latest electricity, gas subsidy details expected next week

Posted on March 11, 2022March 11, 2022 by admin

The government is expected to announce, next week, the details of its latest energy subsidies program for household and business consumption in March, believed to be worth 350 million euros, the same amount that was offered for February, sources have informed.

Overall, the government’s latest support package is expected to offer household and business consumers subsidies worth over 700 million euros for electricity and natural gas bills covering March and April.

Greece’s wholesale electricity price averaged 221.71 euros per MWh in February, slightly below January’s average of 235 euros per MWh.

Households stand to each receive subsidies averaging 39 euros for March, virtually unchanged from the previous month, while businesses are seen receiving subsidies averaging 65 euros per MWh, also virtually unchanged.

Energy subsidies covering April are expected to be higher, possibly over 50 euros for households, while increases are also anticipated for businesses and farmers, sources informed.

During the first ten days of March, the wholesale electricity price averaged over 322 euros per MWh, 50 percent above the February average.

The money for the subsidies will be drawn from the Energy Transition Fund, fed by CO2 emission right revenues and the RES special account surplus, to soften the impact of the astonishing rise in electricity and natural gas prices.

However, officials remain concerned about the adequacy of this money given the volatility in the European energy market, triggered by Russia’s invasion of Ukraine.

Continued energy subsidies a tough equation, fewer funds, higher prices

Posted on March 10, 2022March 10, 2022 by admin

Government officials face a growing challenge in their effort to continue subsidizing electricity and natural gas for household and business consumers as funds backing this support are decreasing at a time when energy prices have continued rising.

According to sources, the government is looking to extend its subsidy package for households and businesses to also cover April.

Wholesale electricity prices have continued their ascent during the first ten days of March, well above levels in February, while reduced CO2 emission right prices are restricting cash injections into the Energy Transition Fund, funding the subsidies.

The wholesale electricity price average for the first ten days of March is 322 euros per MWh, well over February’s average of 211.71 euros per MWh. During this period, CO2 emission right prices have dropped to 60 euros per ton from 80 euros per ton.

Prime Minister Kyriakos Mitsotakis has called for a price ceiling to be imposed on the Dutch TTF gas exchange.

Energy markets are forecast to remain volatile as a result of Russia’s invasion of Ukraine.

PPC hedging gains, €700-800m, used for consumer support

Posted on March 3, 2022March 3, 2022 by admin

State-controlled power utility PPC, expected to announce its 2021 financial results this month, will either post a minor profit or no profit at all as the company’s entire gain from energy-mix hedging, estimated at between 700 and 800 million euros, has been put to use for customer discounts and subsidies to help consumers cope with the energy crisis, Prime Minister Kyriakos Mitsotakis has noted in parliamentary debate.

PPC, strictly adhering to its business plan, is expected to post modest profit and robust operating profit for one or two years before offering dividends from 2024 onwards, a strategy that serves the interests of shareholders as well as customers.

The energy crisis over the past several months has greatly impacted energy companies across Europe. PPC has remained robust courtesy of its favorable hedging activity, enabling the company to return resulting benefits to customers.

In many parts of Europe, energy companies have opted to return profit to consumers, either directly or indirectly, an energy-crisis support.

In Greece, RES special account surplus amounts, partially generated by the return of windfall profits in the RES, hydropower and lignite sectors, are being transferred to the Energy Transition Fund as support for electricity and natural gas bill subsidies for consumers.

New subsidy sources needed, energy prices seen persisting

Posted on February 21, 2022February 21, 2022 by admin

Energy prices are forecast to remain elevated and turbulent for at least another year or so, until early 2023, according to a number of market reports, including one by the European Commission, which means that the government faces the challenge of finding new support fund sources for consumers and businesses, scrambling to meet exorbitant energy prices brought about by the energy crisis.

Until now, the government has relied on Energy Transition Fund money generated by carbon emission right auctions to offer consumers subsidies, but will need to resort to the state budget should this money eventually run out.

Finance minister Christos Staikouras made this need clear in an interview with Greek media outlet Real. “The finance ministry may now possibly need to make available funds from the state budget, not the Energy Transition Fund, for adverse scenarios in the second half of 2022, in order to subsidize households and businesses,” the minister noted.

RES special account surplus for 2021 at €300m, higher than expected

Posted on February 11, 2022February 11, 2022 by admin

The RES special account ended 2021 with a surplus of 300 million euros, greater than had been forecast in the most recent report issued by RES market operator DAPEEP, covering August to October, energypress sources have informed.

The account’s 300 million-euro surplus includes a 70 million-euro safety reserve, meaning the net surplus works out to 230 million euros, still more-than-double the net surplus amount of 101.17 million euros that had been forecast by DAPEEP in its most recent report.

A drastic reduction in amounts owed by energy suppliers to the RES special account was a key factor behind the surplus boost. RES special account debt owed by suppliers, recently totaling 600 million euros, has now been virtually wiped out.

A mechanism has been implemented to trigger and facilitate the transfer of RES special account surplus amounts to the Energy Transition Fund.

The RES special account generates surplus amounts when day-ahead market prices exceed 85 euros per MWh, according to Athanasios Dagoumas, president of RAE, the Regulatory Authority for Energy.

According to the RAE chief, should wholesale electricity prices remain at the current level of 200 euros per MWh throughout the year, the RES special account’s cash injection into the Energy Transition Fund will amount to approximately one billion euros in 2022.

The Energy Transition Fund is expected to have at its disposal a total of two billion euros for consumer support polices assuming a further one billion euros is received from carbon emission right revenues.

Energy Transition Fund in 2022 estimated between €1.5-2m

Posted on February 1, 2022 by admin

The country’s Energy Transition Fund is estimated to reach a value worth between 1.5 and 2 billion euros in 2022, its funds stemming from CO2 emission right auction revenues, RES special account cuts, as well as the green fund.

These three sources will also be used to fund electricity subsidy support planned for February. Consumers are expected to receive a similar total amount to 395 million euros worth of subsidies offered in January. Details to the government’s electricity subsidy package for February are now being finalized.

Electricity subsidies for the household category are likely to be lower in February, compared to January, as the average wholesale electricity price in January fell to 227.30 euros per MWh from 235.38 euros in December.

It remains unclear if the government will take into account power outages experienced during and after last week’s snowstorm by thousands of households, in some cases over many days, for its subsidy support package covering February.

Excess RES revenue support for Energy Transition Fund

Posted on January 5, 2022January 5, 2022 by admin

Government officials are preparing to establish the RES special account as a second major contributor to the Energy Transition Fund, assuming wholesale electricity prices remain at high levels generating excess revenues for RES producers.

RES units with feed-in premium agreements generating excess amounts – well over anticipated remuneration levels based on reference prices agreed to – as a result of considerably higher wholesale electricity prices, would be required to inject these extra amounts into the RES special account, according to the plan.

The establishment of an extra revenue source for the Energy Transition Fund, in addition to funds being generated through CO2 emission right auctions, is deemed necessary as subsidies protecting households and enterprises from extremely higher energy prices are expected to be needed in 2022.

A legislative revision requiring RES producers to return, to the RES special account, excess revenues resulting from higher wholesale prices has already been activated.

Officials are believed to be working on a mechanism that will be automatically triggered into action when prices in the wholesale electricity market’s day-ahead market rise over a certain level.

RES special account surplus over €50m despite CO2 share cut

Posted on November 22, 2021November 22, 2021 by admin

The RES special account’s surplus is expected to remain on steady ground despite the concerns of renewable energy producers, fearing a massive reduction in the account’s share of CO2 emission right auction revenues, now down to 8 percent from 75 percent, will shrink the surplus to an extent that could affect their income for RES output, sources informed on the account’s latest figures have reported.

RES market operator DAPEEP is expected to soon release a report on the RES special account for the months of August and September.

The RES special account’s surplus at the end of 2020 will exceed 50 million euros, not including a 70 million-euro amount kept aside as a safety reserve for extraordinary circumstances, meaning the account’s actual end-of-year surplus will total at least 120 million euros, the sources informed.

A decision formalizing the RES special account’s reduced share of CO2 emission right auction revenues to 8 percent was implemented on November 19.

However, RES special account figures will need to be recalculated if the government’s current electricity subsidy offer for households is increased from the current monthly level of 39 euros per household.

The RES special account’s share of CO2 emission right auction revenues was reduced to enable greater support for the Energy Transition Fund, which has been resorted to by the government to compensate electricity suppliers for subsidized electricity bills.

It should be pointed out that CO2 emission right auction revenues have risen considerably this year as a result of sharply increased CO2 emission right prices.

Suppliers set to receive initial €165m sum for subsidized bills

Posted on November 17, 2021November 17, 2021 by admin

Electricity suppliers are set to receive a deposit amount totaling 165 million euros from the state’s Energy Transition Fund as compensation for their reduced revenues to result from subsidized electricity bills offered to consumers by the government for September and October as part of the overall effort to tackle the effects of the ongoing energy crisis.

Suppliers also stand to receive a 228 million-euro sum for electricity subsidies concerning November, while a 235.5 million euro-euro sum for December subsidies will be offered in 2022.

These sums will be divided up for electricity suppliers based on their market shares on August 31, 2021. Some corrections and revisions could be needed in 2022.

The subsidy plan announced by the government concerns a total of 7.6 million low-voltage household and business electricity connections.

CO2 auction revenue share for RES special a/c down to 30%

Posted on October 25, 2021October 25, 2021 by admin

CO2 emission right auction revenues injected into the RES special account, remunerating producers, will be reduced to between 30 and 32 percent of the total following a revision to a previous rule requiring an input share of at least 60 percent.

This change was prompted by the energy crisis and the government’s need to allot funds for support to energy consumers of all scales and suppliers.

Under the new rules, the energy ministry has been given authority to determine and set the percentage of CO2 emission right auction revenues to be injected into the RES special account. The ministry’s related ministerial decision, expected to halve the percentage, is expected today.

Despite this share reduction, energy ministry officials insist the CO2 emission right auction revenue amount to end up in the RES special account will not be affected as a result of the sharp rise in CO2 emission right prices.

Approximately 45 percent of CO2 emission right auction revenues, estimated to result in an amount of 470 million euros, is expected to be transferred into the Energy Transition Fund to help combat the energy crisis.

A sum of 327 million euros is expected to be utilized for electricity bill subsidies, 90 million euros for heating fuel subsidies, 30 million euros for electricity supply reconnection fees concerning low-income households, and 30 million for telethermal needs.

CO2 auction money for RES a/c cut to 50% for power subsidies

Posted on October 12, 2021October 12, 2021 by admin

The energy ministry will proceed with a legislative revision reducing the percentage of CO2 emission auction right revenues channeled into the RES special account, remunerating green energy producers, from 60 percent to 50 percent as a means of securing subsidies for sharply increased electricity bills, sources have informed. Two related ministerial decisions will also be needed.

Just a month earlier, the government had ratified an amendment increasing the percentage of CO2 emission auction revenues for the RES special account to at least 60 percent.

The latest amendment, intended to support consumers through the energy crisis, may be submitted to Parliament for ratification this Thursday, as an attachment to a draft bill concerning energy efficiency.

As a result of this latest revision redistributing CO2 emission auction revenue, a percentage of between 30 and 40 percent will be channeled into the Energy Transition Fund being established by the government for energy crisis measures to support consumers.

The government has increased the amount to be injected into the Energy Transition Fund for electricity bill subsidies to 400 million euros, from a previous estimate of 150 million euros, as a result of the persisting electricity price surge in the market.

Power bill subsidies increased, gas cost support also expected

Posted on October 7, 2021October 7, 2021 by admin

The energy ministry is preparing to increase an electricity-cost subsidy package to between 280 and 300 million euros, from a 200 million-euro sum announced last month by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair, as a result of the continuing surge in energy costs, which, if not combated, could have political ramifications.

The ministry’s response comes following the announcement of September’s increase in the wholesale electricity price average, the latest in a series of monthly rises. Wholesale electricity prices averaged 134.73 euros per MWh in September, up from 121.72 euros per MWh in August and 101.86 euros per MWh in July, all well over the January average of 52.52 euros per MWh.

Finalized decisions on the subsidy support package have yet to be taken but officials have already agreed to draw the amount to be provided to consumers from the Energy Transition Fund.

The expected subsidy increase for electricity consumption would result in support worth between 40 and 45 euros per MWh, instead of 30 euros per MWh, effectively resulting in a monthly electricity bill reduction of 14 to 15 euros for consumers.

The government is also looking to subsidize natural gas bills through an additional support package expected to be worth roughly 150 million euros. Retail natural gas prices have risen by approximately 500 percent since the beginning of the year.

RES operator given control of new Energy Transition Fund

Posted on October 4, 2021 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.

Suppliers question sufficiency of €150m subsidies to tackle energy costs

Posted on September 15, 2021September 15, 2021 by admin

Electricity suppliers have questioned the sufficiency of a 150 million-euro amount to be made available by the government through a new Energy Transition Fund as support for households and businesses to combat increased energy costs.

The doubts were raised during an energy ministry meeting yesterday involving the country’s electricity suppliers, facing pricing-policy pressure – especially the non-vertically integrated – as a result of elevated wholesale electricity prices that have been driven considerably higher by a combination of factors in international markets.

According to Greek energy exchange data, the day-ahead market price average for today is 172.27 euros per MWh, while the day’s maximum price level in this wholesale market exceeds 200 euros per MWh.

The subsidy plan’s calculations are based on wholesale electricity prices ranging between 117 and 120 euros per MWh.

Energy markets throughout Europe are being severely impacted by the price surge. In the UK, for example, wholesale electricity prices have risen as high as 400 euros per MWh following colder weather and higher energy demand.

Independent players set to offer discounts, awaiting PPC clarity

Posted on September 14, 2021September 14, 2021 by admin

Independent suppliers are set to offer discounts and tariff reductions to consumers, their effort focusing on consumption levels ranging between 300 and 600 kWh, not covered by state subsidies, according to latest updates.

Independent suppliers are awaiting the outcome of a meeting today involving energy minister Kostas Skrekas, during which state-controlled power utility PPC’s discount strategy will be clarified, before they take specific decisions, including for the consumption category of up to 300 kWh, applying to the majority of households.

Besides an across-the-board discount of 30 percent for all consumers, including the category up to 300 kWh, PPC has also promised an additional discount of between 3 and 4 percent for the 301-600 kWh category.

It still remains unclear how much the price gap between PPC and independent consumers offering lower tariff prices could be narrowed by this move.

Independent suppliers know well that they will need to keep offering lower tariffs than PPC, the dominant player, to remain competitive.

The government plans to adopt an Energy Transition Fund to offer electricity subsidies to households and small and medium-sized enterprises, heating fuel subsidies, and a range of other initiatives as a tool to contain the surge in wholesale energy costs, prompted by a combination of factors in international markets.

PM presents Energy Transition Fund as price-surge protection

Posted on September 13, 2021September 13, 2021 by admin

The new Energy Transition Fund, announced yesterday by Prime Minister Kyriakos Mitsotakis at the 85^th Thessaloniki International Fair, will offer electricity subsidies to households and small and medium-sized enterprises, heating fuel subsidies, and a range of other initiatives intended to help combat energy poverty.

The new fund, to be established as a permanent tool, will be launched with an initial amount of 150 million euros expected to remain as a surplus from CO2 emission right auction revenues that have overperformed this year as a result of higher CO2 emission right prices in international markets.

The 150 million-euro amount to be reserved for the new Energy Transition Fund will not deprive other domains of customary support.

The RES special account will receive a 60 percent share of CO2 emission right auction revenues. Despite being a smaller proportion than last year, this percentage will produce an equivalent CO2 auction-revenues amount for the RES special account, remunerating producers, as a result of the higher CO2 emission prices. In addition, the Green Fund will receive its amount as normal.

Following these deductions, it is estimated that a 150 million-euro amount will be left over for the new Energy Transition Fund, which, over time, is expected to gain further amounts from other sources such as the Just Transition Fund and the state budget.

Energy minister Kostas Skrekas will offer more details on the new fund, including its operational specifics, today, the Prime Minister noted during yesterday’s announcement.

Rising wholesale electricity prices, pushed up by a combination of factors in international markets, are seen increasing energy costs for consumers by as much as 40 percent, which has prompted the need for government action.