Increasing electricity prices: how profitable is the situation with subsidizing consumer bills

Much of the increase in electricity prices has been offset by consumers. Subsidies began in September 2021.

Kostas Skrekas, Minister of the Environment and Energy, assured that subsidies will be provided as long as the energy crisis lasts.

The period of time when energy prices were formed both in the international market and in our country at a record high, Greece last month was one of the three countries EUwhere the final, real prices for electricity consumption decreased compared to December, while in other countries their growth was recorded.

According to the Energy Exchange data, based on government-announced energy bill subsidies and a monthly survey of retail electricity prices in 33 European countries (www.energypriceindex.com), the situation is as follows:

In Greece (Athens), the average electricity price, including taxes, in January was 18.51 cents per kilowatt-hour (185.1 euros per megawatt-hour) compared to the EU average of 26.07 cents per kilowatt-hour -27.

The most “expensive” EU countries are Germany (50.07 cents/kWh), Denmark (46.69) and Belgium (45.87 cents/kWh).

In January, the wholesale price of electricity in Greece was 227.3 euros per megawatt hour. The fact that the retail price is below the wholesale price is due to the subsidies that have been applied over the past six months.

In January, the average electricity price in the EU increased to 26.07 cents/kWh from 23.44 cents in December. In Greece, the average price fell to 18.51 cents from 22.55 cents per kilowatt-hour in December.

Prices fell in Greece, the Netherlands and Norway, but rose in all other countries. The largest growth was recorded in Romania (46%) and Germany (38%).

The decline in prices last month does not mean they have returned to “normal levels” as they remain at record highs, which explains the need to maintain government subsidies.

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