The federal government is letting corporations have a profiteering celebration on the expense of shoppers and companies
Customers could have a summer time with electrical energy tariffs on fireplace, as proven by the aggressive will increase of 12-70% introduced by the businesses for inexperienced tariffs, which is able to come into power in June. These costs, which for some corporations are the best they’ve given since January, the primary month of implementation of the coloured tariffs, dissipate in a single day no matter advantages shoppers noticed of their pockets within the earlier 5 months and sign the colossal failure of the Minister of Power Theodoros Skylakakis to implement transparency out there and strengthen competitors for the advantage of shoppers.
However why are shoppers being charged huge will increase once more? Sometimes as a result of the wholesale electrical energy value that had closed at 60.11 euros per megawatt hour in April elevated by 33%, to 81.08 euros, in Could. Consequently, based mostly on the fluctuation mechanism, i.e. the mathematical formulation current within the inexperienced tariffs from the start of January 2024 – just like the adjustment clause beforehand, it transfers wholesale value will increase to the electrical energy payments paid by households and companies –, the businesses they move the wholesale value enhance on to their tariffs and we find yourself in June with a forty five% value enhance in comparison with Could and a median value of 15 cents per kilowatt hour for inexperienced tariffs from 10.30 cents final month.
Pure fuel and hypothesis
Why did the wholesale electrical energy value rise so quickly in a single month? In keeping with the Ministry of Power, as a result of it didn’t blow in Could and the wind generators didn’t work, the participation of pure fuel within the mixture of nationwide electrical energy technology was consequently strengthened.
However this isn’t the entire reality. What the ministry doesn’t point out – or fairly states proudly, presenting it as an awesome achievement however concealing its connection to the rise in electrical energy costs – is that as of Could 13, the nation’s lignite vegetation have been shut down. In two phrases, the higher a part of Could the Greek electrical energy technology was made solely with renewable vitality sources (RES) and pure fuel.
Throwing ashes within the eyes of minister Thod. In the identical days, Skylakakis even argued that lignite – charged with air air pollution charges at costs set on inventory exchanges, however solely within the states of Western Europe and Greece, not within the nations of Japanese Europe – is dearer than pure fuel. Certainly, it’s, however what nobody from the pure fuel foyer that resides within the Ministry of Surroundings and Power (YPEN) desires to confess is that the price of manufacturing is one factor and the wholesale value of electrical energy is one other. So what occurred in Could – as soon as once more – was that as quickly because the participation of pure fuel within the combine elevated, the wholesale value of electrical energy started to rise.
The explanations for this are identified and should do with the oligopoly of the 4 producers with thermal models of pure fuel that exists within the Greek market and who’re speculating undisturbed, driving the costs the place they need, rising their income on the expense of the patron. And on condition that the announcement of the primary heatwave alone – equal to an announcement of a rise in demand – greater than doubled the wholesale value of electrical energy, rising it from 52.02 euros per megawatt hour on Sunday, Could 28 to 119.27 euros on Sunday, June 3. reveals what’s to be completed whereas the warmth is heating up.
The vitality corporations are lining their pockets
Sure, somebody will say, however whereas the wholesale value elevated by 33% in Could, corporations elevated their costs by 45% in June. Apparently, it did. Because the starting of the 12 months, nonetheless, issues have gotten worse.
For instance, from January to April the wholesale value recorded a decline and firms handed on little of it to the retail costs paid by households and companies. Thus, in February the wholesale value closed with a drop of 18.27% in comparison with January, however the suppliers gave shoppers in March a discount in retail costs of solely 2.37%, a alternative which, in accordance with the managers of the specialised vitality web site allazorevma, meant a doubling of suppliers’ gross revenue margins, from 12.2% to 25.4%. We had the same image in March, with the wholesale value recording a 5.16% drop in comparison with February, however the corporations giving the retail value a discount of just one.68%, additional rising their revenue margins.
Total, within the months of April and Could, the wholesale value recorded a 20% drop, to 60 euros per megawatt hour, primarily reaching the pre-crisis ranges, however the profit from this drop was not handed on to shoppers as due based mostly on the fluctuation mechanism. Quite the opposite, on this specific interval there have been additionally corporations that elevated their costs within the inexperienced tariffs as a result of they mentioned that buyers needed to pay a brand new cost of 500 million euros, by order of DEDDIE, as a cap on electrical energy for energy thefts and losses community of the years 2022-23. And naturally, from January 1, 2024, shoppers pay a 41% enhance within the regulated (i.e. mounted) electrical energy invoice expenses.
What can we see right here? A horrible celebration of the vitality corporations on the expense of the shoppers who for 2 years paid in full the wholesale value will increase, hoping to breathe with the top of the disaster. Right this moment, nonetheless, what is going on is that they aren’t benefiting respectively from the drop in wholesale costs and are however being requested to pay the wholesale enhance of 33% from June 1, with a forty five% enhance in electrical energy tariffs. As well as, we see that they’re burdened from time to time, with the federal government’s “I need it”, with new expenses: one with the rise for the regulated expenses, one with the “caps” for the system losses, with the consequence that the electrical energy payments primarily stay excessive absorbing 20% of the median wage.
The fiasco with the inexperienced tariff
If we even take a look at the general image of the inexperienced tariffs – those who Thod was promoting. Skylakakis anticipating regulation from the market itself – in June for all corporations, one thing fully new emerges: big discrepancies between will increase and costs, for the primary time after 5 months of implementation of the system of coloured tariffs.
Particularly, there are two corporations which have chosen to maintain their inexperienced tariffs comparatively low:
PPC elevated costs by 12%, giving a June value of 11.89 cents per kilowatt hour from 10.56 cents in Could for month-to-month consumption as much as 500 kilowatt hours and 12.64 cents for extra consumption (7.7% enhance).
The Pure Fuel Hellenic Power Firm elevated costs by 17%, giving in June a value of 12.85 cents per kilowatt hour in comparison with 10.95 cents in Could.
The remainder recorded bigger will increase in June:
Elpedison elevated by 55% for the primary 100 kilowatt hours, giving a value of 15.48 cents per kilowatt hour in June from 9.96 cents in Could and by 70% from the one hundred and first kilowatt hour and above, to 17.98 cents in June from 10 .56 minutes in Could.
Protergia gave a value of 16.42 cents per kilowatt hour from 10.60 in Could, a 55% enhance.
In reality, the businesses in query are at present operating business campaigns to draw clients to their mounted tariffs and with this transfer it seems that they keep away from taking part within the competitors of inexperienced tariffs.
ZeniΘ gave a value of 16.92 cents per kilowatt hour in June from 10.26 cents in Could, a rise of 65%.
Elin gave a value of 14.85 cents per kilowatt hour in June from 9.5 cents in Could, a 56% enhance
NRG jumped 46% to fifteen.95 cents a kilowatt hour with the consistency rebate, up from 10.96 cents in Could and 21.60 cents a kilowatt hour if one loses the consistency rebate – costs that make it the most costly firm.
Volton, up 27%, gave a value of 12.91 cents a kilowatt hour for June from 10.17 cents in Could, together with the consistency rebate – and 16.88 cents a kilowatt hour if the rebate is misplaced.
Volterra with a 30% enhance gave a value of 12.9 cents per kilowatt hour in June from 9.9 cents in Could.
The federal government is unable to comprise costs
Attempting to reply the query of the times why they elevated the costs a lot in June and anyway rather more than the wholesale value (33%), executives of the suppliers referred to the mathematical formulation of the fluctuation mechanism. In different phrases, their declare was that as a result of the costs of the wholesale value of electrical energy unexpectedly elevated in Could to 81.08 euros per megawatt hour, whereas they themselves had ready the tariffs for the month with a provision for wholesale at 60.11 euros, costs have been elevated by greater than 33 % as a result of “b issue” current within the formulation to ex put up right any deviations of the businesses’ precise prices.
Nevertheless, the instance of PPC, which enormously elevated the low cost it gives to its clients – it’s estimated that this was completed in session with the federal government to maintain electrical energy costs low, at the very least earlier than the elections – signifies that each one corporations may have held again their tariffs in the event that they needed to. They’ve room to take action as they’ve been steadily rising their revenue margins for the reason that starting of the 12 months. They didn’t as a result of all of them, aside from PPC and Pure Fuel, appear to have chosen to advertise their mounted or floating tariffs which, even when in some instances are helpful for shoppers, cover pitfalls as they’ve such a construction and number of phrases that make comparisons unattainable for shoppers.
However what does all this sign, if not absolutely the fiasco of the Skylakakis inexperienced tariff as a formulation able to holding down electrical energy costs and guaranteeing client safety and the top of deceptive corporations’ practices? 5 months after its introduction the inexperienced tariff is proving to be a water gap and electrical energy costs are on the rise once more.
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