Given the recent sharp increases in the wholesale price of electricity, which have also pushed retail prices to high levels, it is considered a given that the government has decided to intervene in the market on an ad hoc basis to support consumers against the wave of price hikes. In fact, this approach may take on more permanent features in cases of extraordinary circumstances.
The prospect of a new “electric shock” in electricity bills is politically troubling for the government, which remains somewhat trapped by European inertia regarding a more comprehensive intervention, as countries in Northern and Central Europe are not facing the same problem. As a result, they do not agree on a more aggressive intervention scheme.
It is, after all, a well-known story from a few years ago how long it took the EU to arrive at a practically unworkable solution for a cap on gas prices, only after several months of price hikes. In this case, the government does not want even a month to pass with a new “electric shock” hitting consumers’ wallets, especially now that temperatures are dropping and electricity consumption is higher.
The prospect of a new intervention was outlined yesterday in statements made by both the Minister of Environment and Energy, Theodoros Skylakakis, and the government spokesperson, Pavlos Marinakis. Given the ongoing distortions in the broader region of Southeastern Europe due to the lack of many interconnections and the increased needs of Ukraine, which “pulls” electricity, it seems that there is a need for a mechanism with more “permanent” features that will be activated when necessary. It is obvious that Greece continues to invest in Renewable Energy Sources (RES), aiming in a few years to make them practically the entire mix. Until then, however, a “bridge” is required.
In reality, what is on the table is the model employed during the energy crisis, with a cap on the wholesale price of electricity and subsidies for consumers’ bills.
At the peak of the energy crisis, the subsidy scheme also covered businesses, but they were later excluded due to European regulations on direct state aid. Government officials believe there will again be difficulty for businesses, but discussions will take place with European Commission officials to include them in the framework.
In fact, next Friday, representatives from the European Commission will be in Athens to discuss with the political leadership of the Ministry of Environment and Energy the scope for interventions and all available alternatives.
Regardless of the technical solution that will be found, a government source told protothema.gr that Greek consumers will not bear the costs of European distortions and delays. Therefore, a mechanism will be established to “erase” excessive increases when necessary.
