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.