For the fourth consecutive month, electricity prices on Greece’s day-ahead energy market have continued to rise, raising concerns about the cost of energy in the autumn and winter months.
The average wholesale electricity price for August closed at 133.40 euros per megawatt-hour (MWh), more than 21% higher than in July. Compared with April, when the latest upward trend began, the increase exceeds 50%. That month, the day-ahead market price stood at 88.72 euros/MWh.
September is therefore beginning with higher pressure on electricity bills. Major suppliers have kept their special, or “green,” tariffs unchanged for periods ranging from three to five months, seeking to absorb part of the increases and shield consumers from higher bills. Rates varied by supplier, ranging from 0.138 euros to 0.20 euros per kilowatt-hour (kWh).
The cost of doing so, however, is becoming increasingly difficult to absorb. Most suppliers are expected to pass on part of the wholesale market increases to consumers in September, while absorbing a portion of the additional cost themselves. Major private electricity providers are expected to follow this approach.
The country’s largest electricity supplier, Public Power Corporation (PPC), is also reportedly considering passing on part of the wholesale increase. PPC’s special tariff currently stands at 0.138 euros/kWh, while the August wholesale market price of 133.40 euros/MWh is equivalent to 0.1334 euros/kWh.
Maintaining the September green tariff at its current level would therefore require the company to absorb the difference.
Sources say PPC is preparing a special intervention for its customer base, reportedly in the form of a dedicated programme, although details have yet to emerge. As the largest supplier in the Greek market, the company’s pricing decisions are expected to influence the wider market.
At the same time, there are estimates that electricity prices could begin to ease slightly from the autumn as extreme weather conditions and disruptions to European power generation subside. However, concerns over gas storage remain, with prices potentially reaching 100 euros/MWh, up from around 60 euros/MWh currently.
Against this backdrop, the government expects the Prime Minister to announce measures on electricity prices at the 90th Thessaloniki International Fair (TIF).
