The mechanism implemented by the government to recover excess profits from electricity producers, which provides lower prices for the end consumer compared to most European countries, will be maintained and expanded through the use of a mechanism for recovering from suppliers, the minister said at a press conference on environment and energy. Kostas Skrekas.

The Minister recalled that the maximum prices introduced for electricity producers since July last year are below the ceiling set by the EU three months later (with the Regulation approved last week by the Council of Ministers) and will remain at this level. The result of the implementation of the mechanism, according to him, is that, taking into account floating tariffs, Greece has the second lowest domestic tariff among 15 European countries, while in Portugal and Spain prices are 20% and 80% more expensive, respectively.

The proposed changes include, on the one hand, the restoration – from November – of any excess revenues from suppliers that arise in cases where state subsidies lead to zero electricity tariffs, and, on the other hand, the ability to raise the ceiling for natural gas plants, of which almost there is no surplus revenue. Any excess revenue recovered will go towards subsidizing consumers.

Mr. Skrekas noted that consultations are ongoing with European countries (mainly Germany and the Netherlands), which are responding to the Greek proposal to set a ceiling on the import price of natural gas. “Europe today buys the most expensive natural gas without any objective reason. Greece’s proposal provides for the introduction of a variable price cap due to price fluctuations on international stock exchanges, in order, on the one hand, to ensure supplies to the European market, and on the other hand, to contain prices,” he stressed. The consultations will continue next Tuesday at Prague.

Answering a question about the adequacy of supplies in the event of a cessation of Russian natural gas supplies, Mr. Skrekas stressed that all necessary measures have been taken (storing gas in Italy, increasing lignite production, ensuring gas loads, etc.) so that the risk is practically zero, after taking into account the supply needs of Bulgaria, which depends on the Greek system. He reiterated that there was no plan to reduce the supply of domestic consumers and that the European savings target would be achieved by reducing consumption at medium and high voltage through tenders.

Mr. Skrekas assured that the possibility of switching suppliers without conditions would remain, but with measures that would provide support for strategic defaulters, while he announced that there would be a deadline for consumers to remain in the universal service regime.

^{Source: RES-IPE}