
Electricity company Current which looks cheaper in the comparison tables for August, it is not certain that it will still have the lowest fee in subsequent months. The fact that the final retail price for the consumer will be kept within 15-17 cents per kilowatt-hour is also not a fact, since it will always depend on the tariff policy of the company with which each consumer will cooperate. Finally, it is not at all given that each consumer will always be able to work with the company that will have the lowest commission, since this may require changing the provider even every month, which in theory can be done, but in practice requires constant interaction with electricity bills , as well as the knowledge to understand the new way to charge electricity and the changes seen every month.
Under conditions of absolute uncertainty, the tariff policy of the electric power companies will be formed in the coming months, which in practice means that every month the electricity bill may be fraught with a surprise for the end consumer. There will be no “fixed” in the new billing equation, which will be evident from the first month of the introduction of the new calculation method. In practice, those who receive an invoice in September will be the first to see in practice what the new electricity pricing mechanism means, since August consumption will also be reflected there. What are the features of the new mechanism?
1. Companies will monthly announce their tariff policy for customers who have chosen a floating tariff. Because pricing is forecast-based (i.e., at the end of July, prices for August were announced based on each company’s forecasts of how the price of electricity would develop on the stock market), the possibility of very large changes from month to month to month is wide open. Those companies that came out in August with a lower price compared to the data that were formed, it is obvious that they will try to raise prices next month to cover … khashura. On the other hand, those companies that raised prices to cover the worst-case scenario may want to lower prices so as not to lose customers. Well, which company will be cheaper and which one will be more expensive will become clear after the monthly announcement of the pricing policy of all companies. The next “meeting” is scheduled for August 20 (with the possibility of a few days of extension so that price lists are not released over the weekend), when companies announce the fees they will be charging for September. If the strong uptrend in the natural gas market continues (as the price broke the €210/MWh mark on Thursday), September prices will be higher than August prices.
Compared with the previous regime, there is a very large benefit for holiday homes and main residential buildings with large consumption.
2. Immediately after the publication of new tariffs, the announcement of the bonus policy by the government will follow. Thus, in the last 10 days of August, the Minister of the Environment will announce four prices: a subsidy for the tariff for the population, for the social tariff, for farmers and for enterprises. In August, the subsidy amounted to 0.337 euros for households and 0.377 euros for social tariff recipients. As companies charge from €0.48 to…€0.99 per kilowatt hour in August, the retail price a consumer can pay for August ranges from €0.15 to …€0.65. Well, it’s not a fact that under the new system one kilowatt-hour will cost 0.15 euros. This will only happen for those who choose the cheapest provider. If the fee rises in September (for example, if the cheapest market fee rises from 0.48 euros to 0.55 euros, the state subsidy will also increase from 0.337 euros to 0.40 euros, so that there is an opportunity for a fee of 0.15 euros for the end user). .With the difference that one company can offer this price one month and another company the next. Obviously, an increase in the state subsidy will also entail huge financial costs. Resources of 1.135 billion euros have been allocated for August, and the account could rise above 1.2-1.3 billion euros.
3. The new structure allows “transfers” from one company to another to give consumers the opportunity to work with the cheapest company, provided that they know the price of each company 10 days before the start of each month. The question is how familiar consumers are with such a process and how often they are willing to participate in the process of change.
In September, when the first invoices are issued, which also take into account August consumption, the final real cost for households will be recorded. If we include non-competitive charges, as well as fixed charges, which are also included in the equation, one kilowatt-hour will cost at least 21-22 euro cents. Well, for 300 kilowatt-hours the bill will reach 66-67 euros. Attention: not in all companies. Only those who have the cheapest (by today’s standards) rate. Compared to the previous regime, there is a very big benefit for vacation homes and main residences with high consumption, while for households consuming up to 300 kilowatt-hours, the bills will move up and down at the same levels. As for the fixed tariffs available on the market, they are currently unprofitable, at least as long as state subsidies are applied in this amount.
Source: Kathimerini

Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.