KPP and other suppliers have announced significant reductions in electricity tariffs, which will be effective in February, compared to the current January tariffs.

As you know, the final consumer price depends on the size of the electricity consumption subsidy announced monthly by the Ministry of Environment and Energy. The subsidy is set at a level that maintains the final price of PPC, which is a benchmark as it is the largest supplier, at 15-16 cents per kilowatt-hour. Thus, lowering the initial price by suppliers means that as long as the target value of the final price remains the same, the amount of the subsidy, which will be announced within a few days, will be reduced accordingly in the next month.

The PPC tariff announced last night has been reduced by 57-64% compared to January and is less than 20 cents per kilowatt-hour.

Specifically, PPC prices for the next month:

-19.9 cents per kilowatt-hour for the first 500 kilowatt-hours of the month compared to 48.9 cents in January and

-21.1 cents per kilowatt-hour, with monthly consumption over 500 kilowatt-hours (from 50.1)

-15.8 cents for the night current against 44.8 in January.

The main tariffs announced so far by other electricity suppliers are:

Protergia: 24.8 cents per kilowatt-hour (18.8 cents per kilowatt-hour) compared to 48 cents and 42 cents per kilowatt-hour in January, respectively.

Heron: 24.9 cents per kilowatt-hour (up from 43 in January).

Elpedison: 19.5 cents per kilowatt-hour daily and 18.83 at night (up from 45 and 44.33 respectively).

Watt&Volt: 24.5 cents per kilowatt hour (up from 45.9)

ZeniΘ: with consumption up to 270 kilowatt-hours – 19.49 cents per kilowatt-hour (from 46.5). The excess consumption charge is 20.49 cents per kilowatt hour (up from 47.5).

The decrease in tariffs is due to a significant drop in prices on the Energy Exchange. The average price of electricity in the first 20 days of January is 195 euros per megawatt-hour, and last week, for the first time in 1.5 years, it even fell to 58 euros (even zero prices were recorded during the day). For comparison, in the summer of 2022, the price on the intraday market reached almost 700 euros, and intraday – 936 euros per megawatt hour).

The events reflect a decline in energy demand both in Greece and across Europe due to a mild winter, confidence in the sufficiency of natural gas and a drop in gas prices on the Dutch stock exchange below 60 euros per MWh.

Source: RES-IPE