The electricity bills include several charges for the financing of renewable sources (ETMEAR) and the electrification of the islands (YKO), the gradual abolition of which is promoted by the Ministry of Environment and Energy in order to reduce consumer prices of electricity.
How to reduce electricity bills
The strategy for reducing prices is described in the National Plan for Energy and Climate recently presented by the political leadership of the Ministry of Foreign Affairs and includes, as stated, actions:
- development of renewable energy sources balanced by category (photovoltaic, wind, hydroelectric) and on the basis of planning based on needs, with the criterion of minimizing cuts, and at the same time developing energy storage systems,
- response (displacement) of demand in hours of oversupply of RES,
- holding at reasonable levels the cost of the regulated charges related to the development of networks in combination with the gradual reduction, until the definitive elimination, of the regulated charges related to RES (ETMEAR – after the contracts with high subsidies will expire), and the subsidizing consumption on the islands (YKO – once the interconnections have been implemented),
- transfer of low-cost RES to the final consumer with PPAs and development of self-production. Special actions are already being planned based on the local government.
The ETMEAR account finances RES producers for the energy they inject into the grid, with prices per megawatt hour that are higher for older plants that were put into operation when technologies were not yet mature and costs were higher.
New units participate directly in the market so their costs are clearly lower and, to the extent that old units are retired due to obsolescence, the cost to the consumer will be reduced.
As far as the HYOs are concerned, the charges included in the bills cover the cost of providing energy to the non-interconnected islands at the same prices as the rest of the country where the production costs from the local units operating on liquid fuels are many times higher.
The completion of the large interconnection of Crete (Heraklion – Attica), which is under construction, is of key importance for the reduction of the cost of electrification of the non-interconnected islands. According to the latest update from ADMIE, the electrification of the cable will begin on a trial basis at the beginning of 2025 and will be put into operation by next summer. At the same time, the interconnection of the Cyclades is completed and work begins on the Dodecanese and the islands of the Northeast Aegean.
How much does the consumer earn?
The charge for ETMEAR for household consumption is 0.017 euros per kilowatt hour, while for the HYCOs the charges are scaled as follows:
For consumption from 0-1600 kilowatt hours in four months, 0.0069 euros per kilowatt hour.
From 1601-2000 kilowatt hours, 0.05 euros per kilowatt hour.
From 2001 kilowatt hours and above, 0.085 euros per kilowatt hour.
Therefore, for a consumption of 300 kilowatt hours per month, the benefit, when the plan to eliminate these charges is successful, will be 5.1 euros per month from ETMEAR and 2.07 euros from YKO and a total of 28.7 euros per four months.
Source: RES-MPE
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