Greece: Higher electricity bill collection rate than expected in May, SEE Energy News
Worst-case suppliers’ revenue scenarios have so far been avoided for this month, but it is still too early to tell as the majority of consumer payments are due at the end of the month. Electricity bill collection rates have been much higher than expected in May and are on the rise after the previous months, while full-scale lockdown was in force.
For now, electricity bill collection rates are gradually approaching pre-crisis levels. These are down by about 10 % at the moment, compared to a 30 % decrease in the past two months. State-controlled PPC already improved its electricity-bill revenue decline to just 9 % in April, after a 25 to 30 % drop in the second half of March.
Suppliers with high exposure to business customers have been hit especially hard as these consumer groups were grounded during the full-scale lockdown in March and April. On the other hand, revenue losses have been milder for suppliers focused more on household consumers.
However, the full extent of the pandemic’s damage on electricity suppliers’ revenues will become clearer once the economy is fully relaunched and the Government’s support measures reach an end.
Tourism business is expected to take a big hit this summer, which will also hurt electricity supplier revenues, traditionally boosted during the second half of the year as a result of heightened tourism-related business. Therefore, independent suppliers may resort to emergency cash support through low-interest bank loans, support mechanisms and other financial tools if it turns out to be a poor summer for the tourism industry.