The frenzied value rally within the electrical energy market continues, with households and small and medium-sized companies the most important victims, unable to pay the exorbitant payments of the suppliers that cross on the elevated electrical energy tariffs to the ultimate consumption.
The wholesale costs on the Greek Inventory Trade skyrocketed at sure moments final week above 750 euros per megawatt hour with an elevated (over 40%) participation of pure gasoline within the electrical energy era combine, at a time when the worldwide value of pure gasoline fluctuates at 33 euros per megawatt hour. Compared, throughout the vitality disaster, the wholesale value didn’t exceed 700 euros per megawatt hour, when the value of pure gasoline exceeded 160 euros.
The typical wholesale value in Greece throughout the first fortnight of July was 131 euros, i.e. considerably increased than within the first half of the 12 months when it ranged between 60 and 100 euros.
The federal government is scrambling to offer aid to shoppers by making an attempt to stop wholesale value hikes from being handed on to August retail tariffs by introducing a subsidy whose degree will rely on the extent at which suppliers’ tariffs are set subsequent month. As for the very costly invoices of the previous months, we will probably be requested to pay them usually! Whereas any subsidies will present up within the September settlement payments.
The funding will come from the imposition of a tax on pure gasoline used for energy era, the quantity of which will probably be decided accordingly within the coming days.
Subsidies will probably be given to households with floating tariffs (“inexperienced” and “yellow”) for August consumption as much as 500 kilowatt hours.
They promise a everlasting mechanism within the authorities
A everlasting mechanism to take care of emergency conditions – just like the one we’re going by – created by the imperfect functioning of the interior electrical energy market has been introduced by the federal government, along with subsidies to take care of the value will increase anticipated in August.
Because the Minister of Surroundings and Vitality T. Skylakakis and Deputy Minister A. Sdoukou identified throughout the presentation of the measures to comprise costs in August, the existence of maximum variations in costs in neighboring markets attests to the imperfections of the interior market which it can not take care of the present Directive 1711/2024.
This Directive allows governments to impose ceilings on electrical energy costs however with very strict circumstances that are:
-The existence of very excessive common costs within the wholesale electrical energy markets, multiples of at the very least two and a half occasions the common value within the earlier 5 years, and amounting to at the very least 180 EUR/MWh, that are anticipated to be maintained for at the very least six months; for the calculation of the common value throughout the earlier 5 years doesn’t keep in mind these intervals for which a regional or Union electrical energy value disaster was declared;
-Surges in retail electrical energy costs of round 70%, that are anticipated to proceed for at the very least three months.
As it seems that the electrical energy market will more and more expertise regional or short-term crises like the present one, the federal government is adopting a response components that will probably be activated when wanted, with much less stringent circumstances, with the approval of the European Fee and can enable the imposition of a ceiling on its wholesale electrical energy in a way analogous to that which utilized throughout the vitality disaster. The related preparations will probably be established with the legislation for the combination of Directive 171 1/2024 into the nationwide laws which is anticipated to be performed instantly and in any case earlier than the top of the deadline in January 2025.
The primary causes for the bounce in wholesale costs not solely in Greece however within the wider space of SE Europe have been the rise in demand on account of extended excessive temperatures and the inadequacy of cross-border interconnections to switch vitality from international locations the place prices stay decrease.
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