Payments on hearth once more after authorities “turns off” lignite, suppliers elevate fuel costs and profiteering turns into regular as a consequence of excessive consumption
The gradual decline in electrical energy costs lasted solely 5 months – however they by no means reached the pre-crisis ranges – and with the arrival of summer time we’re again to the identical, as the primary warmth signaled the return of Greece’s championship in excessive electrical energy costs and the payments went uphill.
In keeping with his official – however ridiculous – clarification Theodore Skylakakis and the Ministry of Power (YPEN), the worth of the Greek wholesale market went up since Might as a result of the wind generators weren’t blowing and dealing. Actually, this occurred as a result of from Might 13 the Ministry of Inside Affairs utterly “shut down” the lignite factories, together with Ptolemaida. As a consequence, the participation of pure fuel within the mixture of nationwide electrical energy manufacturing elevated, and due to this fact the phenomena of profiteering that customers pay for.
The place is embezzlement evidenced? It’s assumed that the wholesale costs given by the pure fuel thermal models are a perform of the European TTF contract. Nonetheless, the TTF in April, the month from which the Greek market takes its worth in Might, was on the lowest ranges lately, at solely 26.74 euros per megawatt hour, registering a month-on-month enhance of solely 3%. With a rise of solely 3% within the TTF, the Greek wholesale electrical energy worth, which in April had closed at 60.11 euros per megawatt hour, in Might was at 81.08 euros, increased by 33%.
Issues received worse in June, when early heatwaves signaled an imminent important enhance in demand, so the wholesale worth broke by means of the 100 euro barrier and, reaching as excessive as 120 euro on some days, made Greece the nation once more on some days. with the costliest electrical energy pan-European. Thus, within the first 16 days of June, a brand new enhance within the wholesale worth was recorded by 18% in comparison with Might, and we’re ready to see how the month will finish.
“Adjustment” to accuracy
What does this imply within the context of the system of passing on wholesale worth will increase to households and companies that the ND authorities has put in place – beforehand with the adjustment clause, now with the fluctuation mechanism? It signifies that July will probably be worse than June and the worst month for the reason that starting of the 12 months for Greek shoppers. For June, the businesses proceeded with hearth will increase, from 12% to 70% for inexperienced tariffs in comparison with Might or by 45% on common, at quarter-hour per kilowatt hour from 10.half-hour the earlier month. The rise would in fact be a lot increased if PPC had not chosen to carry again its inexperienced tariffs by continuing with will increase of “solely” 12%, both as a result of – most likely in session with the federal government – it has been assigned the function of a levee in worth will increase or for pre-election causes. To the numerous worth enhance in June, a brand new enhance will due to this fact be added in July, which, because of the widespread use of air conditioners, is along with August the months with the best electrical energy consumption. In brief, households pays gold for electrical energy throughout essentially the most troublesome and energy-consuming time of the 12 months.
Attempting to justify the brand new cycle of will increase, the Minister of Power Thod. Skylakakis introduced a brand new narrative, based mostly on the traits of Greece’s new inexperienced vitality system, the place he blended truths with lies, distorted numbers and proceeded with essential silences, with a view to – what else? – assert that the ND authorities has achieved all the pieces effectively however individuals are grumpy and maladjusted as a result of they have not realized how a lot costs have fallen. Thus, Mr. Skylakakis mentioned that we should adapt to the fixed ups and downs of electrical energy costs which is able to accompany us any longer ceaselessly and cease asking for presidency interventions to decrease its worth.
Costly summer time, low cost autumn and spring
What does the brand new story Skylakakis say? He mentions that the vitality system has modified as a result of the nation’s vitality manufacturing is predicated on renewable vitality sources and never the outdated base models – they burned lignite – however because of this we may have excessive costs for electrical energy in the summertime, decrease in autumn and spring and medium in winter.
“This seasonality will now be a everlasting characteristic of the nation’s vitality manufacturing system, and when renewables work so much, costs will fall, however after they work much less, costs will rise. When RES are working at full capability, costs fall so much; when they’re working much less and we now have excessive demand, costs go up as a result of on the identical time we now have comparatively excessive costs for pure fuel and air pollution rights (s.s.: lie). We additionally did not have a lot rain within the winter, so our hydroelectrics do not have excessive reserves. Properly, this seasonality will accompany {the electrical} system any longer, that’s, you should have increased costs in summer time, decrease in autumn and spring and medium costs in winter, relying on the climate.”
Reductions reached half in households
After which why did the June tariffs, which have been introduced on the finish of Might, whereas the warmth and the rise in demand had not but began, elevated by 45%? Straightforward, since in keeping with the Minister of Power there have been no will increase in June. “The 8-10% enhance” mentioned Thod characteristically. Skylakakis “it got here from a lower which was 40%, so there was no enhance, in actual fact we had this sharp drop that we’ll have each spring and each fall after which the worth went again as much as the typical ranges.”
Is that this true? Completely not. The so-called “brutal reductions” of 40% did certainly exist, however they involved the wholesale worth which fell from 102.2 euros per megawatt hour in December 2023 to 60.11 euros in April 2024, i.e. by 40%. Nonetheless, the financial profit from the drop within the wholesale worth didn’t go to households and companies. About half really went to finish shoppers and the opposite half went to suppliers, i.e. retail firms.
Indicatively, if we take as a foundation the costs of PPC, which within the first 5 months of 2024 was the most cost effective of all firms, we see that in January the corporate offered electrical energy to shoppers at costs of 13.63 cents per kilowatt hour, which it progressively lowered to in Might, at 10.56 minutes per megawatt hour, i.e. a complete of twenty-two.52%, whereas the remaining 18% was reaped by itself, growing its revenue margins. The opposite firms did the identical and even to a higher extent.
On the identical time, because of the fastened enhance to five euros per thirty days from January and way more the numerous enhance in regulated expenses by 41%, from 1 January 2024 households not solely didn’t profit from the actually robust discount in wholesale costs by 40% in interval of January – Might that Thod mentioned. Skylakakis however, quite the opposite, they noticed their payments enhance from the start of the 12 months although aggressive expenses and the worth of the kilowatt hour seemed to be lowered. On prime of that, in June the businesses didn’t enhance their tariffs by 8-10%, because the minister says, however by 12-70% and on common by 45%.
Is it doable that the accountable minister doesn’t know this?
He clearly is aware of this, but when he would not distort the numbers, how is he going to argue that customers are fallacious to assume they’re paying an excessive amount of for electrical energy and are calling for brand spanking new authorities intervention to deliver costs down?
As a result of in keeping with Thod. Skylakakis, the federal government and the Ministry of Overseas Affairs have achieved all the pieces effectively. They intervened after they gave subsidies with the vitality disaster, additionally they intervened when there was a query of market malfunction, establishing “inexperienced tariffs to have transparency”. In fact since June the transparency has gone for a stroll and there’s full chaos as most firms have given up attempting to make aggressive inexperienced tariffs to PPC and have began industrial campaigns to draw clients to their fastened tariffs – they’ll beneath some circumstances be pursuits, particularly as costs rise – however by no means provide transparency or comparability to shoppers, however the minister in cost has not seen that both.
How they set fuel costs on hearth
To justify why shoppers ought to pay the electrical energy gold with out criticism on the time of the 12 months with the best vitality consumption, the vitality minister mentioned that the federal government will introduce the orange tariff after the autumn for firms that take up about half of the nation’s electrical energy manufacturing and that this could decrease electrical energy costs as a result of it’s going to permit the system to perform higher and huge fluctuations will subside.
Nonetheless, he prevented any point out of two essential parts that have an effect on costs:
He prevented admitting that after the uncontrollable profiteering noticed within the wholesale market within the second week of June, the place whereas RES costs have been at 100 euros per megawatt-hour all day lengthy, the thermal models got here in at evening “enjoying a recreation” – i.e. the oligopoly of pure fuel producers – they usually even raised the costs above 250 euros per megawatt hour. In an effort to put a brake on the rise in costs, the Ministry of the Inside was compelled to place the state-of-the-art lignite plant of Ptolemaida again into operation, which it had closed in mid-Might. As a result of the ND authorities might not care if its impoverished residents pay for electrical energy in gold, however not less than it is ready to perceive that will probably be in bother if the costs rise a lot that the electrical energy payments can not be paid.
He additionally prevented saying that one other enhance in electrical energy payments is coming. This may occur as a result of the ELAPE deficit has elevated so much, from the place RES producers get their state-guaranteed costs with out enterprise danger and the prices are coated by all of us. The accountable administrator DAPEEP has requested that the ETMEAR payment be elevated by 41%, so it is just a matter of time earlier than we see one other enhance in electrical energy.
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