Retail electricity prices below EU average in first half of ’23

Retail electricity price levels in Greece were well below the EU average in the first half of 2023, giving the country a 17th place ranking for most expensive low-voltage electricity among member states, Eurostat data has shown.

Greece ended the six-month period with retail electricity prices averaging 233 euros per MWh, compared to the EU average of 289 euros per MWh over the same period.

Calculations for these figures include taxes and other charges, but not subsidies offered to consumers.

The Netherlands topped the list with an average price of 475 euros per MWh in the first half of 2023, while Bulgaria was placed at the bottom end with an average price of 114 euros per MWh.

As for EU member states ranked slightly above Greece, Lithuania averaged 281 euros per MWh, Sweden followed with 269 euros per MWh, Austria was next 265 euros per MWh, Ireland’s average was 248 euros per MWh, and Finland, one place above Greece, ended the first half last year with an average price of 238 euros per MWh.

On the contrary, electricity supply for non-residential consumers in Greece, averaging 213 euros per MWh, was slightly above the EU average of 210 euros per MWh. Even so, Greece’s ranking remained the same, 17th most expensive, for this category.

Romania topped the list of most expensive non-residential electricity with an average of 329 euros per MWh, while Iceland ranked lowest with an average of 78 euros per MWh in the first half last year.

 

Most consumers transferred to green tariffs under new system

The majority of the country’s electricity consumers have been automatically transferred to new green variable tariffs, introduced January 1, after not opting for other tariffs offered under the new pricing system.

Consumers who were automatically allotted green tariffs represent at least 70 percent of the respective client bases of all suppliers.

Consumers had up until December 31 to express tariff preferences or be automatically transferred to the green-tariff category by their suppliers.

The dominance of green tariffs at this early stage of the new system had been anticipated as consumers come to terms with its options, which include fixed blue tariffs and variable yellow tariffs.

The changeover, coinciding with the festive season, also played a key role in the lack of action taken by consumers.

A considerable number of consumers have been enquiring about blue tariffs, ensuring fixed tariffs over extended periods of several months, suppliers informed.

Retail electricity market shares unchanged in November

Latest retail electricity market share figures, covering November, showed little change compared to the previous month, data released by the energy exchange has shown.

Power utility PPC’s retail market share edged up to 52.15 percent in November from 51.89 percent in October, the figures showed.

Heron continued to lead the pack of independent suppliers with a 12.94 percent market share, up slightly from October’s 12.79 percent. The Mytilineos group’s Protergia followed with a 7.91 percent market share, marginally down from October’s 8.24 percent, with Elpedison ranked third amongst the independent suppliers, registering a 6.49 percent market share, slightly up from 6.44 percent in October.

Elsewhere, NRG’s market share fell modestly to 5.60 percent from 5.79 percent in October; Watt and Volt captured a 5.12 percent, up from 5.09 percent in October; Fysiko Aerio EEE’s market share was 3.53 percent, up from 3.47 percent; Zenith’s performance rose to 2.31 percent from 2.19 percent; Volterra registered 2.09 percent from 2.20 percent, and Volton edged up to 1.17 percent from 1.15 percent.

 

Subdued day-ahead market to result in lower retail prices this January

The wholesale electricity market’s subdued day-ahead market prices, averaging 109.5 euros per MWh in the first eleven days of December, below the November average and well below predictions of levels between 120 and 122 euros per MWh, appear set to result in lower retail electricity prices in January, 2024, when energy crisis measures will be lifted, compared to levels in January this year.

Assuming no dramatic changes take place in day-ahead market prices during the rest of the month, power utility PPC’s basic tariff rate for January is expected to be set at approximately 14 cents per KWh for monthly consumption levels of up to 500 KWh, and 15.4 cents per KWh for consumption over 500 KWh.

Last January, PPC’s respective rates were 15.9 and 22.1 cents per KWh, following considerable subsidy support for all consumers. Universal electricity subsidies, introduced as a support measure during the energy crisis, will be terminated as of January 1.

Though there are no indications of conditions that could prompt a sharp rise in international wholesale electricity prices by the end of the month, a worst-case scenario lifting the wholesale average to 120 euros per MWh would still not suffice to push PPC’s basic retail tariff above 15.7 cents per KWh for monthly consumption up to 500 KWh and 16.7 cents per KWh for monthly consumption over 500 KWh.

Low-income households relying on electricity for heating should expect tariffs of 11 cents per KWh, once a social support package has been factored in.

Besides the favorable wholesale market conditions, the Greek electricity market’s new system, to offer four types of tariffs as of the new year, appears to have already triggered intense competition.

New green tariffs, arriving January 1, at normal levels

New green tariffs set to be introduced January 1, when universal subsidies for electricity bills will be lifted, are at normal price levels, tariff announcements made by suppliers on Friday have indicated.

However, unfavorable price developments in international markets would push up these price levels along with Greece’s day-ahead market price levels.

Given Friday’s announcements by electricity suppliers, new green tariffs would, in most cases, be lower than their basic products offered in December, if Νovember’s market clearing price of 105.4 euros per MWh were to remain unchanged, energypress research on the new green tariffs has shown.

Electricity retailers have warned green tariffs will likely cost more than variable tariffs, categorized as “yellow” tariffs, and are already encouraging customers to choose variable tariffs as a lower-cost option.

The new green tariff will be introduced January 1 and be implemented automatically, for all consumers, unless they formally object and choose the variable yellow tariffs.

Stricter switching, power theft rules headed for Parliament

The energy ministry plans to submit a draft bill of retail electricity market revisions to Parliament next week. The bill contains stricter rules aiming to prevent consumers with unpaid electricity bills from switching suppliers and counter electricity theft.

Consumers will not be able to move away from their electricity supplier if the supplier is the third power retailer at which they have accumulated overdue energy bills within a five-year period beginning January 1, 2020, according to the draft bill.

This obstacle will be combined with a debt-flagging system prepared by RAAEY, the Regulatory Authority for Waste, Energy and Water, energy minister Thodoris Skylakakis informed suppliers just days ago.

The retail electricity market revisions also include a single variable tariff formula that all electricity retailers will need to adopt and include in their tariff packages offered to customers as of January 1, 2024.

Speaking yesterday at the 27th National Energy Conference “Energy + Development”, an event organized by IENE, the Institute of Energy for Southeast Europe, the energy minister spoke of the very high cost to the system caused by electricity theft, estimating its cost at 400 million euros per year.

Rules against electricity thieves will become a lot stricter, while complicit electricians will have their professional licenses revoked, according to the new rules.

Power suppliers’ association holds crucial talks with ministry

ESPEN, the Greek Energy Suppliers Association, will push for swift government action that would finalize a series of pending electricity market measures at a meeting today with the energy ministry’s leadership.

The association, determined to reduce high unpaid receivables faced by electricity suppliers, is awaiting stricter user rules, including a time limit, for the country’s universal electricity supply service. It is offered as a last-resort solution by the country’s top five suppliers, based on market share, to black-listed household and business consumers who have been shunned by suppliers over payment failures.

ESPEN also wants the ministry to push through with plans designed to prevent consumers with unpaid electricity bills from switching suppliers without restriction.

The talks between the two sides will also include implementation details on the new retail electricity market rules, planned to come into effect January 1.

The revisions include the end of a freeze on indexation clauses, green tariffs, and a single variable tariff formula aiming to simplify price comparisons for consumers.

A legislative revision covering these revisions has been ratified in Greek Parliament, but a ministerial revision is still needed. It is expected to be delivered within the next few days, sources informed.

Electricity suppliers want clarity as they will need to inform customers of  upcoming market rule changes by December 1.

 

 

Levy on gas for power output to be terminated at end of year

The energy ministry plans to terminate an extraordinary levy that was imposed on natural gas used for electricity generation at the beginning of 2024, along with the termination of other measures implemented in the wholesale and electricity markets during the energy crisis.

A joint ministerial decision issued last spring for subsidy distribution of amounts collected through the extraordinary levy is also set to expire on December 31, 2023.

The joint ministerial decision, which had been signed by then-energy minister Kostas Skrekas and former deputy finance minister Theodoros Skylakakis, now in charge of the country’s energy portfolio, facilitated the collection of funds through the levy on gas used for electricity production in order to contribute to electricity-bill subsidies offered through the Energy Transition Fund.

The formula of the levy on gas used for electricity production, introduced in November, 2022, was revised in May this year and set at 5 percent of the TTF index, replacing a previous fixed charge of 10 euro per MWh.

Though this revision did reduce the cost of the levy imposed on gas used for electricity production, it has continued distorting the domestic wholesale market, market officials have contended.

As a result, the levy has undermined the competitiveness of domestic gas-fueled power plants compared to counterpart units in neighboring countries, thus limiting their operating hours.

The TTF index, a key benchmark for natural gas prices in the European market, ended August at an average of 34.83 euros per MWh for contracts requiring delivery in September.

 

Market’s return to normality to include tariff transparency plan

RAEEY, the Regulatory Authority for Waste, Energy and Water, is preparing measures for the retail electricity market’s return to normality, scheduled for January 1, following a recent extension of suspended indexation clauses until the end of the year.

More specifically, the authority has two decisions in the pipeline. The first decision pertains to the implementation of tariff transparency labeling. The second decision concerns establishing a framework for the retail electricity market’s return to normality at the beginning of 2024.

The authority plans to introduce the use of specific colors for documents containing pre-contractual information in order to help consumers easily identify categories of supply contracts available on the market and understand their charges. Fixed and variable tariffs, for example, will be associated with documents of specific colors.

The authority recently announced an initial plan including four types of electricity supply products – a variety of variable and fixed tariff options – but RAAEY officials have since clarified it was merely indicative as electricity retailers will retain the autonomy to customize and shape their product offerings according to their preferences.

 

Work on new supply code by year’s end now underway

The energy ministry has set in motion the establishment of a new electricity supply code, by the end of the year, following a late-July request by deputy minister Alexandra Sdoukou to RAEEY, Regulatory Authority for Waste, Energy and Water, calling on the authority to formulate its opinion.

RAAEY plans to make an official announcement on this matter at a Thessalonki International Trade Fair event on September 10.

During the upcoming event, officials from electricity suppliers and representatives of consumer organizations will be provided with an opportunity to express preliminary perspectives on necessary adjustments to the current framework, as well as perspectives on new provisions that they believe will need to be incorporated into the new framework.

It is worth noting that the electricity market’s existing code was established in 2013 and, as a result, a number of its provisions have been rendered outdated by subsequent advancements within the domestic retail sector.

 

Non-interconnected island gains for independent players

A sizeable chunk of electricity users on the non-interconnected islands signed up with independent suppliers, primarily Elpedison, in the first half of 2023, a latest monthly report released by distribution network operator DEDDIE/HEDNO has shown.

Power utility PPC’s market share on the non-interconnected islands contracted from 68.4 percent in January to 60.3 percent in June, mostly to the benefit of Elpedison, whose market share on these islands rose from 7.33 percent in January to 13.8 percent in June, the DEDDIE/HEDNO figures showed.

Fellow independent power suppliers Heron, Mytilineos, NRG, Volterra, Aerio Attikis and Zenith also achieved market share gains over the six-month period.

Heron’s market share rose to 7.73 percent from 6.96 percent; Mytilineos increased its share to 6.22 percent from 4.16 percent; Watt + Volt’s market share contracted to 3.78 percent from 4.9 percent; NRG increased its share to 3.54 percent from 2.71 percent; Aerio Attikis made a marginal gain to 1.7 percent from 1.68 percent, as did Zenith with a rise to 0.83 percent from 0.76 percent and Volterra, whose market share rose to 0.26 percent in June from 0.2 percent in January.

PPC’s Kotsovolos takeover would reshape energy market

Power utility PPC is believed to be looking to take over appliance retail chain Kotsovolos, a member of the Currys group, as a means of boosting earnings to make up for an anticipated shortfall from a European Commission competition-related requirement that has been imposed on the power company to reduce its retail market share to 49 percent.

Though PPC officials have not yet confirmed the power utility’s interest in Kotsovolos, certain sources claim the company’s administration has already been granted access to the appliance retail chain’s financial data.

PPC also believes that a takeover of Kotsovolos would help the power utility achieve targets, set through its business plan, for the green transition and provision of energy services.

PPC has already begun transforming its own retail outlets, while the addition of 95 new outlets that would be offered through an acquisition of Kotsovolos promises to further consolidate its presence around Greece. Kotsovolos’ logistics, ready to be applied, would serve as another bonus.

The impact PPC’s possible acquisition of Kotsovolos would have on the retail energy market is being likened to the transformation of Greece’s telecommunications market when mobile operator Cosmote acquired phone accessories retailer Germanos nearly two decades ago.

A takeover of the Kotsovolos chain would increase PPC’s annual EBITDA by an estimated 50 million euros, sources noted.

A price tag of between 200 and 300 million euros is expected to be placed on the possible takeover, the sources added.

Retail market shares steady in June, marginal loss at PPC

Power utility PPC, the Greek retail electricity market’s dominant player, has ended June with a slightly contracted market share, down to 54.99 percent, from 55.68 percent in May, which takes the total market share held by the market’s independent suppliers to 45.01 percent from 44.32 percent, according to a latest Greek energy exchange report.

Market share figures in June remained largely settled compared to a period of greater activity in May, Heron being the prime mover. The independent supplier’s market share leapt to 10.82 percent in May from 7.76 percent in April following its supply agreement reached with Viohalco, one of Greece’s biggest electricity consumers, which became the third industrial producer to move away from PPC.

Viohalco’s retail electricity market share continued its ascent in June, to 11.30 percent, making the company the leading supplier amongst the independent players for a second consecutive month.

Mytilineos is ranked second amongst the independent suppliers with an 8.24 percent market share in June, up from 7.63 percent in May, followed by Elpedison, whose market share slipped to 5.80 percent in June from 6.28 percent in May.

NRG is next with 5.36 percent, up from 4.99 percent; followed by Watt and Volt, whose market share slipped to 4.59 percent from 5.15 percent in May. Next in the rankings, Fysiko Aerio’s market share rose marginally to 3.32 percent from 3.13 percent. Zenith’s market share remained unchanged at 2.32 percent share. Volterra gained slightly, to 2.14 percent from 2.12 percent, and Volton remained steady at 0.81 percent in May and June.

The day-ahead market’s average price for June dropped to 91.49 euros per MWh, a 13 percent reduction compared to May’s price level of 105.59 euros per MWh, the Greek energy exchange report noted.

 

Suppliers preparing offers for new market conditions

The retail electricity market’s imminent new reality, to be established once emergency measures have been terminated, will bring about a new generation of tariff offers which suppliers have been working on feverishly over recent months.

These can be grouped in three categories offering cost-plus variable tariffs, a variety of packages based on indexation clauses, as well as fixed tariffs for short-term periods, usually one or three months long.

Emergency energy market measures, introduced last year to help combat the effects of the energy crisis, will be lifted either October 1, according to plans by authorities, or December 1, as many suppliers are seeking an extension to prepare for new market conditions that will no longer offer consumers subsidy support.

Electricity suppliers will look to establish tariff-related that are as simple as possible for consumers to understand, the intention being to facilitate sales of offers.

Marketing and sales departments at energy companies are currently working overtime to prepare new electricity supply packages, hoping the energy ministry will heed their calls for a two-month extension before emergency measures are lifted.

Suppliers have made clear their concerns over how long it will take consumers to adjust to the new market conditions without subsidy support.

 

 

TTF index brief surge keeps suppliers cautious on prices

A brief surge of the TTF gas index on June 15, lifting wholesale prices by approximately 80 percent, compared to June 1, to over 41 euros per MWh from 23 euros per MWh, came as a clear reminder that the energy crisis is not yet over and will keep electricity retailers cautious about their pricing policies.

Electricity suppliers can be expected to act carefully and disrupt hefty price cuts when they make announcements tomorrow on their retail prices for July.

Based on recent market rules, suppliers are required to announce their respective electricity tariffs for each forthcoming month by the 20th of every preceding month.

According to sources, July’s retail electricity price levels should remain virtually unchanged, while some marginal reductions have not been ruled out.

Market players have pointed out that, besides the market’s volatility, two taxes are also affecting their ability to subdue retail electricity prices in the Greek market.

One of the two taxes is a 5 percent levy on the TTF index price of gas purchased by domestic electricity produces for their power plants. The other is an energy supply security tax of 2.5 euros per MWh. The two taxes combined increase electricity prices by between 9 and 10 euros per MWh as they are passed on to consumers.

It remains unknown if retail electricity prices in July will be subsidized by the caretaker government. This will become clear following next weekend’s second round in the country’s general election.

 

 

RAAEY initiatives aimed at informing, protecting consumers

Two new initiatives taken by RAAEY, the Regulatory Authority for Waste, Energy and Water, its publication of a first retail electricity market report, to be updated monthly, and the launch of a new website section offering useful advice to consumers, aim to intensify competition between electricity suppliers, to the benefit of consumers, and also offer consumer protection, the authority’s energy-division deputy, Dimitris Fourlaris, has told energypress in an interview.

Publishing statistics on the electricity supply sector, through the retail report, is very useful in opening up the market and will also contribute to the provision of innovative products for consumers, the RAAEY official explained, adding that the authority also intends to begin publishing retail reports covering the natural gas market.

Consumers lodged roughly 13,500 complaints to suppliers last year, Fourlaris pointed out. The purpose of RAAEY’s new website section is to offer consumers useful tips and keep them informed so that complaints may be prevented before they arise, he added.

The public’s response to consumer-protection tools already developed by RAAEY has been high, while an improved price-comparison tool will soon be launched, the authority’s deputy informed.

PPC trims nominal tariff for May to 15.9 cents/KWh

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

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

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

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

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

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

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

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

 

 

 

Electricity suppliers raise range of concerns, call for action

Electricity users shifting suppliers and leaving behind accumulating unpaid bills, a growing reliance, by supplier-blacklisted consumers, on the country’s universal electricity supply service, as well as electricity bill surcharges suppliers are required to forward to the state, regardless of whether customers have paid their energy bills or not, are some of the key problems distorting the electricity market and resulting in cash-flow problems, suppliers have noted, calling for immediate state intervention.

Current market rules concerning customer shifts from one supplier to another lack restrictions and, as a result, have encouraged a growing number of non-punctual customers to flee and leave behind unpaid bills, which have reached perilous levels and usually develop into bad debt, energy firm representatives participating at the recent Power & Gas Forum in Athens highlighted.

Another issue troubling the sector is the government’s electricity subsidy support policy for businesses using up to 35 kVA and bakeries. Suppliers are temporarily covering these subsidies but extreme delays concerning state reimbursements are being reported. These sums add up to hundreds of millions of euros for the sector, severely impacting cash flow.

Current price-setting rules in the retail electricity market, requiring suppliers to announce their tariffs for each forthcoming month by the 20th of every preceding month, are also troubling market players, as Panos Nikou, CEO at energy retailer Volterra, told the Power & Gas Forum. “We can’t just gamble on the 20th of each month,” Nikou remarked, describing the price-setting rules as high-risk and often loss-incurring for suppliers.

Power usage in February falls for 8th month in a row, down by 2.25%

Electricity usage in Greece fell for an eighth successive month in February, dropping by 2.25 percent, compared to the equivalent month a year earlier, data in a latest report from power grid operator IPTO has shown.

However, the February drop was far milder than the 13.78 percent electricity usage decline recorded in January.

Consumers in Greece used an electricity amount of 4,069 GWh in February, down from 4,163 GWh in February, 2022.

Monthly electricity usage in the country has not stopped declining since an initial fall registered last July.

Renewable energy dominated February’s energy mix, capturing a 41.2 percent share, followed by gas-fueled power stations, with 22.5 percent, and lignite-fired power stations, at 15 percent.

As for retail electricity market shares, power utility PPC, the dominant player, gained 2.5 percent in February. compared to the previous month, for a 62.58 percent market share.

Among the independent suppliers, Protergia, a member of the Mytilineos group, remained at the forefront in February with a 7.44 percent retail market share, down from 10.53 percent a month earlier.

The country’s two other vertically integrated energy groups followed. Heron ended January with a 7.03 percent market share, up from 6.83 percent, and Elpedison captured a 5.91 percent market share, down from 6.02 percent.

Elsewhere, NRG captured a 4.82 percent retail electricity market share in January, up from 4.55 percent, followed by Aerio Attikis at 2.78 percent, marginally above the previous month’s 2.66 percent; Zenith registered 2.23 percent (2.17%); Watt & Volt was at 2.09 percent (2.06%); and Volterra captured 1.81 percent (1.8%). The remainder of suppliers shared a total of 3.3 percent.

 

Suppliers cut prices for April, PPC rate at 16.5 cents/KWh

The country’s electricity suppliers have announced a latest round of tariff reductions for April, power utility PPC, the market’s dominant player, leading the way with a greater-than-expected 16 percent price reduction.

PPC set an April rate of 16.5 cents per KWh for monthly consumption of up to 500 KWh, down from 19.5 cents per KWh for March, as well as a rate of 17.7 cents per KWh, down from 20.7 cents per KWh in March, for monthly usage exceeding 500 KWh.

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

The retail price reductions for April, which had been anticipated as a result of falling wholesale electricity prices of late, will essentially not lower energy costs for users, but the government, which has been providing subsidies throughout the energy crisis to limit residential tariffs to levels of between 15 and 16 cents per KWh, will be able to greatly decrease, or even zero out, its outlay on subsidies and keep tariffs at a level it desires.

Independent supplier Heron announced an April price rate of 15.68 cents per KWh, including a punctuality discount, for its Generous Home package. The supplier’s rate without the discount was set at 19.6 cents per KWh.

Elpedison announced a price of 19.5 cents per KWh for its Electricity HomeDay package as well as a 12.5 cents per KWh for its Elpedison Economy offer.

Protergia set an April rate of 19.98 cents per KWh, regardless of usage level, for its residential Energy Save offer, as well as a price of 13.98 cents per KWh for its residential MVP Reward package, including a punctuality discount, or 19.98 cents per KWh without this discount.

Elsewhere, NRG’s rate for its On Time offer was set at 13.94 cents per KWh, when factoring in a punctuality discount, or 16.4 cents per KWh without the discount.

Volton’s rate for April is 16.4 cents per KWh with a punctuality discount and 17.26 cents per KWh without.

Fysiko Aerio set an April price of 10.4 cents per KWh, including a punctuality discount, for its Maxi Free package, whose rate is 13.9 cents per KWh without the discount.

Volterra set a rate of 18.8 cents per KWh. Watt & Volt announced a price of 19.95 cents per KWh, regardless of consumption level, for its Zero package, as well as a rate of 14 cents per KWh, plus a fixed charge of 3 euros per month, for its Value package.

Zenith set an April rate of 16.4 cents per KWh for its Power Home Basic package. Elin set a rate of 14.8 cents per KWh for its Power On! Home Comfort offer.

PPC market share gain of 3.5% last month shed by Mytilineos

Power utility PPC’s retail market share, covering all voltage-related categories, rose to 63.54 percent in February, up 3.5 percent on the previous month, a gain more or less shed by Mytilineos, whose overall market share contracted to 7.44 percent in February from 10.67 percent in January, according to latest data included in the energy exchange’s monthly report.

In the high-voltage category, PPC’s market share increased to 86.64 percent in February from 67.04 percent in January, while, on the contrary, its medium-voltage market share fell to 37.72 percent from 39.48 percent.

PPC’s market share in the low-voltage category edged up to 65.57 percent in February from 64.87 percent a month earlier, the energy exchange data showed.

The market shares of other electricity retailers remained virtually unchanged between January and February. Heron captured a 7.24 percent overall market share in February, marginally up from January’s 7.13 percent.

Elpedison’s market share slipped to 6 percent from 6.27 percent; NRG gained marginally to capture a 4.85 percent market share compared to 4.65 percent in January; Fysiko Aerio Attikis captured a 2.97 percent market share in February compared to 2.88 percent in January; Zenith’s market share was 2.14 percent from 2.13 percent a month earlier; Watt+Volt registered a market share of 2.08 percent from 2.09 percent; Volterra edged up its presence to 1.92 percent from 1.82 percent, while Volton’s market share stepped back to 0.98 percent from 1.03 percent.

 

PPC maintains its low-voltage customer base in 2022

Power utility PPC managed, more or less, to maintain its low-voltage customer base in 2022, whereas private-sector electricity suppliers made limited gains, fourth-quarter data on Greece’s retail electricity market published by distribution network operator DEDDIE/HEDNO has shown.

PPC ended 2022 with approximately 4.96 million customers in the low-voltage category, just 53,000 less than its number of customers at the end of 2021, the operator’s data showed.

Private-sector electricity suppliers ended 2022 with just under 1.69 million customers in the low-voltage category, increasing their overall portfolio by only 31,000 compared to the end of 2021, according to the DEDDIE/HEDNO data.

In 2021, PPC lost a far greater number of low-voltage customers, an exodus numbering 255,000, while private-sector suppliers had gained approximately 305,000 customers, nearly ten times more than their marginal gain in 2022.

PPC announces virtually unchanged tariffs for March

Main power utility PPC, the dominant retail player and trend setter, has announced a virtually unchanged nominal tariff for March, for monthly consumption of up to 500 KWh, at 19.5 cents per KWh, marginally below the company’s tariff of 19.9 cents offered for February.

PPC’s nominal tariff – the price offered ahead of state subsidy-related reductions – for consumers using over 500 KWh in a month was set at 20.7 cents per KWh.

Based on a new market rule intended to keep electricity prices competitive, suppliers are required to announce their tariffs for each forthcoming month on the 20th of every preceding month.

Protergia announced a tariff level of 18.8 cents per KWh for March, if taking into account a payment punctuality discount included in its MVP Reward package, which, if not taken advantage of by customers, results in a tariff level of 24.8 cents per KWh.

Elpedison set a nominal tariff of 14.5 cents per KWh for its Elpedison Economy package as well as a tariff of 20.27 cents per KWh, following a punctuality discount, for its Elpedison Synepia program.

Heron announced a tariff level of 20.4 cents per KWh, including a 20 percent payment punctuality discount, as part of its Generous Home package.

NRG’s rate for March was set at 16.9 cents per KWh, including a punctuality discount; Volton set a price of 18.9 cents per KWh, taking into account a punctuality discount; Fysiko Aerio Attikis announced a punctuality-discounted rate of 18.5 cents per KWh; Volterra’s rate is 21.4 cents per KWh; Watt+Volt announced a price of 24.5 cents per KWh; and Zenith’s rate for March is 14 cents per KWh.

The government’s anticipated state subsidy offer, maintained amid the energy crisis to subdue electricity prices, is expected to bring down finalized March tariffs to levels of between 14 and 16 cents per KWh. This year is an election year in Greece.

Electricity retailers expected to keep March prices unchanged

The country’s retail electricity suppliers are expected to keep their nominal tariffs for March unchanged, or edge them up marginally, on Monday, when their price announcements for next month are due, based on a recent market rule requiring power retailers to announce every forthcoming month’s price levels by the 20th of each preceding month.

According to sources, the country’s electricity suppliers are expected to set March prices at a level of around 0.20 euros per KWh, roughly the level they were at in February.

Even though wholesale electricity prices have fallen this month, some electricity retailers may choose to wait until next month to correct their prices as their February offers undercut levels permitted by prevailing market conditions, sources noted.

As things stand, the retail electricity market appears to be entering a period of price stability. Barring any unforeseen circumstances, price levels in March and April are likely to remain stable, which does not mean the energy crisis has been tamed.

State subsidies for retail electricity are expected to remain low in March, at a level of roughly 0.04 euros per KWh, meaning consumers will be responsible for covering tariffs at levels of 0.16 to 0.17 euros per KWh, the government’s goal.

At such levels, budget support will not be needed to aid the government’s electricity subsidy effort.

 

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

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.

ELTA reaches final decision to exit retail electricity market

ELTA (Hellenic Post) plans to withdraw from the retail electricity market in May, three years after reaching an initial decision to do so as a result of loss-incurring activity in this market.

The company intends to soon inform customers that they will need to find new electricity suppliers by May 8.

The company, operating through its ELTA Energy subsidiary in the retail energy market, has officially informed local authorities of its decision. The Hellenic Energy Exchange, energy ministry, RAE, the Regulatory Authority for Energy, and all related market operators have received notification of ELTA’s final decision.

ELTA, which entered the retail electricity market in 2017, seeking to take advantage of its extensive retail network around the country, has all but abandoned its interests in the country’s retail electricity market in more recent times.

The company has not participated in monthly price announcements expected from electricity retailers as a recently introduced competitive-minded requirement ten days before each forthcoming month, instead offering a flat rate. Also, electricity bills to customers have been greatly delayed and flawed by billing inaccuracies. These factors have driven customers away.

An attempt by ELTA to sell its portfolio of remaining customers to rival suppliers failed to draw the interest of rival suppliers.

 

 

PPC retail electricity market share at 63.3% in December

Power utility PPC’s captured a retail electricity market share of 63.29 percent in December, followed by the Mytilineos group’s Protergia, at 7.6 percent, Heron, at 7.03 percent, and Elpedison, at 6.09 percent, a latest report published by the Hellenic Energy Exchange has shown.

Day-ahead market prices in December rose 22 percent, averaging 276 euros per MWh compared to 227 euros per MWh in November, while electricity demand increased to 4,488 GWh from 4,109 GWh, the Energy Exchange data showed.

As for December’s energy mix, natural gas-fueled electricity captured the greatest share, 37 percent, followed by renewables, at 24 percent, electricity imports, at 19 percent, lignite-fired generation, at 15 percent, and hydropower, at 3 percent.

Indexation clause termination leads to higher nominal prices

Though consumers have benefited from tolerable electricity tariffs over the last six months, courtesy of subsidies, the termination of indexation clauses in electricity bills has led to inflated nominal charges as tariffs incorporate the risk suppliers need to take when predicting the next month’s wholesale price levels ten days in advance.

New market rules introduced last August require suppliers to set and announce their electricity tariffs for each forthcoming month by the 20th of the preceding month.

The risk faced by suppliers through this new retail electricity market model has driven their nominal tariffs 20 percent higher, on average, compared to the previous system of floating tariffs with indexation clauses, triggered whenever wholesale prices exceeded certain limits.

Had the indexation clauses been maintained, power utility PPC, the dominant market player, would have recorded an average nominal retail price of 40.86 cents per KWh for the past six months, 28 percent below its average of 52.25 cents per KWh under the new system requiring the company to forecast wholesale price levels for each forthcoming month.

Market officials, including ESPEN, the Greek Energy Suppliers Association, had warned the new market model requiring wholesale electricity price forecasting would push up nominal retail prices, especially during times of market volatility, as is the case at present.

 

Mid-voltage market competition strong in ’22, PPC market share contracts

Competition between electricity suppliers in the mid-voltage category was, contrary to the low-voltage category, intense in 2022, as highlighted by the significant market share contraction of power utility PPC, down to 36.01 percent in November after starting the year at 42.36 percent, in the mid-voltage category.

The overwhelming majority of companies in Greece belong to the mid-voltage category. Besides reduced electricity usage in the second half of the year, the significant drop in electricity demand in the mid-voltage category may also be attributed to company closures during the energy crisis.

A gainer, Mytilineos’ mid-voltage market share increased to 16.61 percent in November, up from 13.48 percent in January.

Heron also achieved a mid-voltage market share increase, reaching 14.78 percent in November from 12.39 percent in January.

Elpedison’s market share in this category rose marginally to 6.96 percent from 6.66 percent over the eleven-month period.

NRG’s share fell to 9.06 percent from 9.41 percent. Elsewhere, Watt & Volt’s share slipped to 0.84 percent from 0.89 percent, Fysiko Aerio’s share rose to 4.87 percent from 3.47 percent, Volterra’s share increased to 7.09 percent from 6.22 percent. Zenith’s share contracted to 0.40 percent from 0.62 percent, as did Volton’s share, to 0.5 percent from 0.78 percent.

Market share figures remained relatively stable in the low-voltage category between January and November, as highlighted by the marginal change in the market share of power utility PPC, the main player, from 64.53 percent in January to 64.32 percent in November.

Mytilineos’ market share in the low-voltage category fell marginally to 6.34 percent from 6.47 percent. Heron experienced a rise to 6.39 percent from 6.01 percent. Elpedison’s market share slid to 4.92 percent from 5.10 percent and NRG’s share rose to 4.36 percent from 3.77 percent.

 

 

 

Higher retail electricity prices expected for January

Retail electricity prices for January, set to be announced tomorrow by suppliers, are expected to rise, pushed higher by increased wholesale prices, sources have informed.

Wholesale electricity prices have averaged approximately 300 euros per MWh on the day-ahead market since the beginning of December, up roughly 45 percent compared to June’s average of 205.86 euros per MWh for the equivalent 19-day period.

Even though electricity prices have plunged 50 percent on the energy exchange over the past six days, to 200 euros per MWh from nearly 400 euros per MWh on December 14, suppliers cannot risk subduing prices to December levels. The jittery mood at the Dutch TTF index has not left Greece’s energy exchange unaffected.

January’s electricity prices to be delivered tomorrow by the country’s suppliers – based on a recently introduced rule requiring them to announce their respective price levels for each forthcoming month by the 20th of the preceding month – are expected to range between 0.35 euros per KWh and 0.41 euros per KWh. Supplier prices in December ranged between 0.27 euros per KWh and 0.38 euros per KWh.

Finalized prices for consumers will be lowered by state subsidies offered by the government for electricity. The government is expected to engineer, through subsidies, price levels for households and businesses to between 0.15 euros per KWh and 0.17 euros per KWh.