Greece: New electricity tariffs announced without adjustment clause

The tariffs that will be in effect in August were announced by electricity suppliers on July 25, 2022:

DEI €0.486/kWh, Heron €0.495/kWh, Protergia €0.54913/kWh with further differences in flat rates for each supplier. The final price is obtained by deducting the government subsidy from the suppliers’ invoices.

Final consumer electricity prices for August are set at 15-17 cents per kilowatt-hour, according to a statement on electricity subsidies made by Environment and Energy Minister Kostas Skrekas.

In particular, the household tariff subsidy, without income criterion for all consumption and all residences (primary and non-residential), is 337 euros per MWh (€0.337 per kilowatt hour).

The total amount of subsidies reaches 1.136 billion euros next month and absorbs 90% of the increase for residential consumers, 100% for social tariff recipients and 80% for small and medium-sized enterprises. Announcements from all suppliers are expected within 24 hours.

Suppliers are expected today to announce tariffs without adjustment clause that will apply to electricity bills from August at a time when electricity prices on the Stock Exchange’s pre-day market are set for today’s Monday at EUR 466.03 per MWh. marking a jump of 43% compared to yesterday, “breaking” all the negative (for citizens) records.

Today’s average price is a new record (the previous one was set on Friday at 426.92 euros per megawatt), while it is significant that the maximum price is 686.25 euros.

The reason for the increase is that high demand (only 404 gigawatt-hours with a predicted peak consumption of about 10,000 megawatts at noon) is mainly covered by natural gas plants (43.1%), while renewable sources limited by 21.2%, hydroelectric by 9.5% and lignite by 13%.

It is noted that high exchange prices are not passed on to the consumer, since a price ceiling for electricity producers has been set since July 1. The difference in the price set on the stock exchange from the ceiling set by the state is transferred to the Energy Transition Fund to finance subsidies for electricity consumption.

Wholesale electricity prices hit records for the second time this week as weather conditions (low pressure and high temperatures) boost demand and reduce wind farm productivity.

This situation shows that a country CANNOT depend on controversial renewable energy sources, at least at the current stage of their development and based on today’s technological capabilities. However, do they understand this in Megaro Maximo?

PS I received a new electricity bill for the past month in my office today. In it, 17.66 euros were calculated directly for electricity, 15.34 euros for regulated fees, 53.98 euros for additional fees, 12.61 euros for municipal fees (cleaning the territory, garbage collection, etc.) and VAT 3.71. In fact, in the electricity bill, excluding municipal fees, 17.66 euros amounted to about 16%.

It feels like you’ve been robbed…

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