Greece, The government expects Brussels to approve a plan for the wholesale electricity market

, SEE Energy News

The government in Athens is convinced that the European Commission will soon approve a two-way intervention plan for the wholesale and retail electricity markets, enabling implementation from July 1, despite some reservations expressed over the past few days.

The plan was forwarded to the European Commission’s Directorate-General for Energy and the Directorate-General for Competition last Friday, following consultations on technical details between Greek government officials and Brussels.

The details of the Greek proposal are expected to be discussed at a teleconference meeting of technical experts in the next few days.

Energy Minister Costas Skrekas could also hold talks this week with the heads of the Energy and Competition Directorates to raise efforts to the political level.

The Greek government is convinced that its plan for the energy crisis will be approved by Brussels for two reasons. First, Athens’ decision to eliminate, through taxes, the unexpected profits made by electricity producers during the energy crisis is one of the tools proposed by Brussels.

Second, the Greek plan is not expected to affect cross-border trade as import-export prices continue to be shaped by wholesale market laws.

To remind, the day before, the market should, according to the plan, continue to function normally, so that there will be no impact on the import and export of electricity. However, the clearing price formula will be revised so that each electricity generation technology (lignite, natural gas, hydropower, renewable energy) is paid for on the basis of an appropriate variable cost, plus fair profit.

According to the plan, electricity suppliers will procure energy from the domestic market at the lowest prices resulting from the new price formula.

In addition, the wholesale price adjustment clause (included in electricity bills) will be suspended for the duration of the emergency measures.

Also, it is planned to retroactively collect 90% of the surplus profit generated by electricity producers in the last few months, in the form of universal compensation for solidarity contributions or solidarity dividends.

The government aims to implement its emergency plan by July 1st. Rapid progress in Athens’ negotiations with Brussels will be needed to meet this deadline.