What’s happening to electricity prices: The bra de fer for tax and subsidies [γράφημα] – 2024-07-31 12:59:35

Lottery to impose emergency tax on natural gas generators with consumers awaiting August electricity prices.

The Minister of Environment and Energy, Thodoros Skylakakis, is proceeding, according to information, to submit the relevant regulation to Parliament next Monday, July 29 or Tuesday, July 30, where the amount of the extraordinary fee for electricity producers with natural gas units will also be revealed.

Electricity

The providers announce on August 2 the electricity prices, which will concern the month of August, with the information converging that the tariff policy, at least for private individuals, will move at the same levels as those of July or slightly higher.

However, Metlen, as the largest private power producer, hastened through its provider Protergia to announce fixed competitive charges for the month of August.

In this way, market players say, he seeks on the one hand not to burden his customers and on the other hand to advance any options of the Ministry of Environment and Energy regarding the amount of the tax.

“The lower or more subdued August prices are, the lower the natural gas tax on power producers will be,” the estimates say.

The other large private parties in the market, Elpedison, HERON and NRG, will also move to fixed or slightly higher charges.

PPC

However, PPC seems to hold the key to all developments, especially as to whether the tax will be high and the subsidies high or low.

The company owns the largest share in the supply of electricity with more than 7.2 million customers, so the level of the tariffs that it will announce for August will also be the compass… for the tax and the level of the subsidy on household tariffs.

PPC had a charge in July on the special or green tariffs at 0.135 euros per kilowatt hour. Metlen announced for August around 0.16 euros per kilowatt hour.

Sources want the Ministry of Environment and Energy to aim for an average retail price of 0.15 euros per kilowatt hour.

PPC sources also report that for August the company will show its social face as it has been doing for three months…

The Ministry of Environment and Energy

Minister Thodoros Skylakakis, according to information, has sent and continues to send the message, as he did today with his statements on Parapolitika FM, of the self-restraint of all providers.

Information also wants the leadership of the ministry to also expect moderate prices not only for household consumptions below 500 kilowatt hours per month, but also above them. The same is expected for the charges for electricity consumed by businesses.

So the lower the competitive charges in the floating tariffs, the less subsidies will be required and therefore, possibly, the tax that will be imposed will not move to 9 to 10 euros per MWh but much lower.

All of that remains to be seen early next week.

Wholesale market prices

However, it is worth noting that prices in the wholesale electricity market have been falling in recent days.

From the levels of 219.28 euros/MWh on July 22, the average price of the wholesale electricity market has plunged to 103.55 euros/MWh on July 27.

The extreme prices were formed due to the prolonged heatwave and weak electricity connections in the region of South-Eastern Europe. The explosion in demand for electricity sent prices skyrocketing, while in areas where there was low power adequacy it could not be covered by imports and exports due to weak electricity interconnections.

However, the phenomenon turns out to be temporary, with the result that market players characterize the ministry’s reaction as excessive. A comment made by the president and CEO of Metlen, Evangelos Mytilineos.

Source OT