With the wholesale price of electricity closing at a high level of €217.24 per MWh today — equivalent to €0.21 per KWh, despite a 6.5% decrease compared to Wednesday — the government has raised the alarm.

“We won’t let these prices, which do not reflect real market costs, be passed on to consumers,” declared Environment and Energy Minister, Theodoros Skylakakis. He emphasized, “The state will not allow profiteering at the expense of citizens. Profit is not criminalized, but profiteering is.” Government spokesperson Pavlos Marinakis added, “We’ve used similar tools before, and rest assured, we’ll use them again if necessary.”

On Thursday, Greece’s wholesale electricity price was the fifth highest in Europe, with only Albania, Kosovo, Bulgaria, and Hungary showing even higher rates, reaching up to €400 per MWh. In contrast, prices in Northern, Central, and Western Europe remained lower, even though natural gas on the European TTF market rose by over 4%, reaching €45.89 per MWh, marking a 41.7% increase since early 2024.

The Energy Minister announced that a delegation from the European Commission would arrive in Athens on Friday, November 22, to discuss the issue urgently. The European wholesale price cap system is practically unenforceable because it requires a prolonged period of excessively high prices to be activated.

Given the political decision to prevent price hikes in tariffs, government officials noted that the subsidy system implemented in July for August tariffs is ready to be used again. This includes a cap on wholesale gas prices and subsequent subsidies for bills to stabilize costs around €0.15 per KWh. However, businesses remain outside this protection due to state aid restrictions.

On November 22, a European Commission delegation will meet with the leadership of the Ministry of Environment to evaluate the possibility of a more permanent intervention mechanism, mainly benefiting Southeastern Europe, disproportionately affected by the lack of interconnections and the ongoing Ukraine war. Regardless of the outcome, the political decision is to take ad hoc measures whenever necessary.

Skylakakis’ Statements

Speaking on Athens radio stations, Mr. Skylakakis highlighted that since early November, Northern Europe has experienced a period of low wind production, pushing European prices higher. However, due to renewable energy sources (RES), Greece’s prices were noticeably lower than the rest of Europe. Recently, the lack of interconnections between Central and Southeastern Europe, among other reasons, has caused a significant spike in wholesale electricity prices in our region. He mentioned, “The problem is exacerbated by an algorithm in Central Europe, whose operation we don’t fully understand, preventing the maximization of energy load in that area’s cables.” Additionally, the prolonged war in Ukraine, with increased energy imports, contributes to the steep rises in wholesale electricity prices in Southeastern Europe. “Addressing these first two malfunctions requires time and institutional interventions. In the meantime, we need a tool to prevent excessive profits at the expense of consumers and businesses,” he noted.

Regarding the meeting with the European Commission delegation, he said, “The goal is to create a permanent EU mechanism to address this issue in Southeastern Europe, preventing such dysfunctions in the wholesale energy market from being passed to retail prices and protecting consumers from sharp and excessive electricity price hikes. This initiative began some time ago, led by the Greek government and Prime Minister Kyriakos Mitsotakis, and with joint efforts from Greece, Romania, and Bulgaria.”

He also noted the strong momentum behind this initiative, stressing that such phenomena will not be passed on to consumers. “We’re no longer in the discussion phase; at least we are now focused on finding an immediate solution,” he remarked.

When asked if consumer support would continue if the problem persists, Mr. Skylakakis emphasized, “We can’t allow such phenomena, which do not reflect objective cost increases, to persist. Simply put, we won’t let these prices, which do not reflect real market costs, be passed on to the consumer.” However, he added that when relying solely on lignite and natural gas, “our prices also skyrocket. This is a message for those who think switching back to lignite will solve everything.”

The Minister of Environment and Energy also mentioned the heating allowance, which is 20% higher this year for those using electricity for heating. “Given the rising electricity costs, its subsidy is much more meaningful. This is larger because electricity is much cleaner than oil, with over 50% coming from renewable sources.”

He further advised consumers to choose their electricity tariffs based on their energy profile. “For the majority of consumers who don’t closely monitor the market or have high usage, especially vulnerable groups, we will provide support in various ways to ensure greater stability in electricity prices and protect them from market fluctuations.” However, he noted that for high-usage consumers seeking active management of their consumption, they should select the appropriate tariff.

Concluding, the Minister emphasized that while the new energy market will have these violent fluctuations, the overall trend in Greece will be downward in the coming years. He also highlighted the importance of developing RES, saying, “Those who politically block the growth of renewable energy sources need to understand that the future of cheap energy relies on them. While we might temporarily use some natural gas, the bulk will come from RES and energy storage, offering consumers affordable energy.”