EU authorities have once again reminded member states that they will need to bring their emergency electricity market measures to an end, but, in doing so, have left open the possibility for a slightly delayed termination.
Although it has become widely known that the electricity market’s emergency measures around the EU would need to be terminated this year, a new Eurogroup announcement notes that measures should be lifted “as soon as possible in 2023 and 2024”.
“In the absence of new energy price shocks in the eurozone area, we will try to limit energy support measures, using the savings to reduce budget deficits, as soon as possible in 2023 and 2024,” the eurozone’s finance ministers noted in a Eurogroup statement.
It is the first time 2024 has been mentioned in an EU text as a possible withdrawal year for emergency measures implemented by member states during the energy crisis. Last month, the EU had announced these measures should not be extended beyond December, 2023.
It remains unclear if this more lenient approach is the result of requests made by some member states and how it could impact the return of electricity tariffs to normality as well as new products being planned by suppliers.
Asked to comment on this latest Eurogroup announcement, Greek energy ministry sources noted that capacity for intervention exists if needed.
This, however, does not mean that a Greek state budget reserve will be maintained to subsidize electricity bills. Such a prospect has already been ruled out. Even so, energy consumers will not be left unprotected should a new crisis break out, the sources said.
RES special account surplus money could be resorted to if natural gas prices rise sharply again and subsequently push electricity prices higher, the ministry officials noted.
Greece’s RES special account ended 2022 with a 219 million-euro surplus for older projects, while a sub-account carved out for newer projects launched from January 1, 2021 onwards, ended last year with a surplus of 88.31 million euros, taking the account’s overall total to 307 million euros.