May 5, 2024

Athens News

News in English from Greece

Government games with "colored" electricity tariffs: no matter what citizens choose, they lose


The government’s games with “colored” electricity tariffs were designed to shift responsibility onto the shoulders of citizens for the insane bills that they will pay in the future.

Essentially, whatever consumers chose, they lost because they chose without knowing the parameters that influence electricity prices.

But even if they knew themthey are so complex that all citizens would have to have a PhD in mathematics to understand them.

Essentially, they are being asked to find a suitable tariff with their eyes closed, without knowing the factors that shape the final KWh price, such as temperatures in Germany and other European countries, free sailing from the Red Sea and the trajectory of the TTF price with heating demand unknown to consumers.

There are so many parameters that must be associated with certain formulas, but cannot be used by a consumer who has knowledge at the high school or university level, but theoretical knowledge.

But the government achieved its goal. Everyone will pay for very expensive electricity, but no one can blame the government for it.

“Be careful in your choice” – this is our warning.

Households on green, yellow and orange tariffs are taking a high risk, which may turn out to be “good”, but most forecasts say it will be “bad”.

When framing parameters are unknown to households, consumers simply “gamble.”

Households do not know what the TFF contract price is, just as they do not know what the average price per MWh will be in the first six TFF sessions.

The average price per MWh in the first six days of the energy exchange is 90.6 euros.

The TTF price exceeded €33 per MWh, a four-month low.

If temperatures in Greece and other European countries drop because we are in the middle of winter (as we are heading towards), household demand for heating will immediately increase.

For example, today the electricity demand for Greek households was 75,000 MWh as temperatures are in the 20 degree Celsius range.

When heating demand increases, it is expected to exceed 100,000 MWh per day. Demand will be met by gas stations, which in turn will increase the demand for photovoltaics.

Supplier fixed rates look expensive today, but a month from now they may look cheap, but who knows for sure?

The only winner is the government. He will not be blamed for any bad event, and he will “reap” all the good that happens as a result of his “wise” policy.

What can I say, a wise decision. But the worst thing is that people have a memory like a fish, they forget everything after 5 minutes.



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