Light bills: 8 out of 10 households will receive a discount

Environment and Energy Minister Costas Skrekas spoke about two actions taken by the government to support electricity suppliers this morning on Greek TV.

According to him, eight out of ten households are covered by the government’s program to curb the rise in electricity prices.

In particular, these are:

monthly subsidy in the amount of 9 euros until the end of the year for all customers with low consumption (up to 600 kW / hour per month); negotiating additional discounts with electricity suppliers.

“We asked suppliers, both DEI and others, to make rolling discounts to offset the rise in electricity prices. From October and subsequent months, all electricity consumers will see a separate line in their bills, where the discount is indicated.

Also, in addition to this, a discount from the supplier will be applied: either from DEI or from another company. Thus, the increase in electricity prices will be partially offset, “the minister emphasized and continued:” 72% of households consume on average up to 300 kilowatt-hours per month. 8/10 – up to 600 kilowatt-hours. In this way, we will offset almost all of the estimated revaluation for households in our country. ”

As “Russian Athens” wrote earlier, electricity consumers will face an increase in bills by up to 50% in September, according to the statement of energy suppliers.

Citizens will be quite surprised when they receive their electricity bills for August over the next month, as they face a 35% -50% increase in tariffs, depending on the purchase prices and contracts of the supplier to which they are related.

The reason is high prices on the wholesale electricity market, which broke all records in August, both due to increased demand (during the unprecedented heat wave) and the trend of increasing tariffs for CO2 emissions and gas prices, which affect the cost of energy production. Utilities stress that they are “buying at high wholesale prices and activating price adjustment provisions”, ultimately shifting the increased costs to industry and consumers.

It should be noted that the average price of MWh this year for the first five months was 57.8 euros. The Average Estimated Purchase Price (TEA) for June was estimated at around 79.33 € / MWh. In May, the average TEA was € 63.16 / MWh. Based on the available data, the final average price for July will approach the € 100 / MWh mark and even higher in August.

Considering that since March 2020, companies have renewed contracts for the supply of medium voltage current (industrial companies, supermarkets) and linked them to the price of the wholesale market, the increase in tariffs in August will now directly “hit” consumers.

Meanwhile, RAE has presented its proposals in order to optimize electricity tariffs. However, in general, the market opposes RAE intervention in tariffs, considering it “intervention in the free trade market.” At the same time, it is noted that if the relevant proposals are implemented, this will reduce the “flexibility of the supplying companies”, and many small companies simply risk closing down, and electricity prices will continue to rise.

Citizens will be quite surprised when they receive their electricity bills for August over the next month, as they face a 35% -50% increase in tariffs, depending on the purchase prices and contracts of the supplier to which they are related.

The reason is high prices in the wholesale electricity market, which broke all records in August, both due to increased demand (during the unprecedented heat wave) and the trend of increasing tariffs for CO2 emissions and gas prices, which affect the cost of energy production. Utilities stress that they are “buying at high wholesale prices and activating price adjustment provisions”, ultimately passing the increased costs onto industry and consumers.

It should be noted that the average price of MWh this year for the first five months was 57.8 euros. The Average Estimated Purchase Price (TEA) for June was estimated at around 79.33 € / MWh. In May, the average TEA was € 63.16 / MWh. Based on the available data, the final average price for July will approach the € 100 / MWh mark and even higher in August.

Considering that since March 2020 companies have renewed contracts for the supply of medium voltage current (industrial companies, supermarkets) and linked them to the price of the wholesale market, the increase in tariffs in August will now directly “hit” consumers.

Meanwhile, RAE has presented its proposals in order to optimize electricity tariffs. However, in general, the market opposes RAE intervention in tariffs, considering it “intervention in the free trade market.” At the same time, it is noted that if the relevant proposals are implemented, this will reduce the “flexibility of the supplying companies”, and many small companies simply risk closing down, and electricity prices will continue to rise.

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