The amount of the electricity bill depends on the price exchange rate on the energy exchange and on the natural gas equivalent from the speculative games in the Amsterdam market. Energy tariffs change from month to month, and no one can predict what will happen in the future. That is why the best protection is the correct consideration of the energy needs of the facility, as well as measures aimed at reducing the required consumption. Bad lie. If the building is not shielded, whichever heating source is used, the cost will remain very high and the risk of overload is huge.

The energy crisis has given households and businesses an opportunity to unravel many of the secrets of the energy sector that until a year and a half ago remained hidden in engineering surveys and small print contracts. Who knew until mid-2021 about the adjustment clause? Who dealt with TTF (Title Transfer Facility) gas contracts? Why should anyone measure the thermal kilowatt-hour requirements of their property? The price explosion has created a need for more knowledge.

When a kilowatt-hour of electricity started from 9 minutes and reached even … 80 minutes (luckily for consumers, the subsidy mechanism was already activated), when natural gas began to be sold on the exchanges at 340 euros per megawatt-hour from only 20 euros, and when fuel oil rose to 1.6 euros per liter from 0.8 euros, it’s time to look for a solution.

The energy crisis is not over. That is why every household has an incentive to understand the secrets of the energy market and how it works. The right choice costs hundreds or even thousands of euros a year.

→ How do we measure the heating demand of a property?

The correct measurements are made by the engineer in the process of issuing the energy certificate, which categorizes the property. The better the category (B, B+, A, etc.), the lower the consumption per square meter. This is the unit of measurement: thermal kilowatt-hour per square meter. Since each thermal kilowatt-hour now has a high cost (even 0.3 euros if an energy-intensive electrical device is used), the goal is to reduce the amount required as much as possible. The following data with average consumption figures are indicative (of course, there may be large differences from object to object, since special characteristics play a big role).

1. A well-insulated detached house in Southern Greece may require up to 35 thermal kilowatt-hours per square meter. The same facility in Central Greece requires 55 kilowatt hours, and in Northern Greece 75 kilowatt hours. The same detached house without thermal insulation in Southern Greece requires 115 instead of 35 kilowatt-hours, in central Greece 185 instead of 55 kilowatt-hours, and in Northern Greece 245 kilowatt-hours instead of 75.
2. An energy-shielded multi-family apartment in Southern Greece – more secure than a single-family home – will cover heating needs in 25 kilowatt-hours of heating, while in Central and Northern Greece it will require 45 and 65 kilowatt-hours. respectively. In the absence of insulation, the amounts will increase to 95, 145 and 195 kilowatt-hours, respectively.

Therefore, every owner must be sure that the number one priority is the energy shielding of their property, since it takes three or four times as much energy to cover an uninsulated property. And it is not only about heating, but also about cooling.

→ How are prices compared between alternative energy sources?

We buy heating oil in liters, and electricity and natural gas in kilowatt-hours. To compare costs, you must select the same unit of measure. Experts use thermal kilowatt-hours and perform some conversions and calculations to be able to make the necessary comparisons, taking into account the performance of each energy source.

Most operations are required to convert liters of heating oil into thermal kilowatt-hours. One liter of heating oil “produces” approximately 11.9 kilowatt-hours. However, during burner operation, there are also losses that limit efficiency. If the efficiency is about 90%, the actual equivalent of one liter is about 10-11 kilowatt hours. Thus, at a price of 1.3 euros per liter, the cost of each thermal kilowatt-hour produced on fuel oil is 0.12 euros. We multiply this amount by the thermal kilowatt-hours needed to heat our house and get the annual cost of heating. So, for a well-insulated apartment with an area of ​​80 square meters, oil is required for about 450 euros, and for an uninsulated apartment, the cost can jump up to 1,400 euros. Everything is easier with natural gas. The calculation is carried out in kilowatt-hours, the efficiency is close to 95-100%, so the consumer knows that if one kilowatt-hour costs 11 euro cents, then the cost of a thermal kilowatt-hour is the same. When it comes to electricity, efficiency plays a key role. Simple electric radiators, radiators, fan heaters, etc. they are 100% efficient. Thus, a kilowatt-hour of heat costs the same as a kilowatt-hour of electricity (about 25 minutes today, including all costs). In a more efficient air conditioner or heat pump, the cost per kilowatt-hour of heat is greatly reduced. If a heat pump generates four heat kilowatt-hours for every kilowatt-hour of electricity consumed, then the cost of each heat kilowatt-hour will automatically decrease to 6-7 minutes instead of 25. This explains why a heat pump is considered such at present. the cheapest heating source in real terms.

→ How is the retail price of natural gas formed?

Since the beginning of the energy crisis, consumers have been asked to understand how the price of natural gas is formed. They learned what TTF is by realizing that how much fuel they use for heating and hot water depends on changes in the Amsterdam stock market. Until mid-2020, when the cost per megawatt-hour on the Amsterdam exchange was 10-20 euros, no one dealt with natural gas or praised low cost. When the crisis hit and natural gas jumped to 340 euros, the curse was broken. At the beginning of February, when the price returned to 55-60 euros, the use of natural gas again enters the field of opportunity. So what should the consumer know? That the price of natural gas is not fixed and depends on the Dutch stock market and the TTF index. And that this price, which determines the prime cost of gas supply, is supplemented by transportation fees, distribution fees, excise tax, other government fees and, of course, VAT, which is calculated at a rate of 6%. 2022 has been a very difficult year for natural gas. With all these fees mentioned above, the final price ranged from 7-8 cents in February and March 2022 to 27 cents. Fortunately, the historical maximum was recorded in September, so there were no large consumptions. 2022 closed with a premium of 12-13 cents, and 2023 started with more optimism that the price will fall even below 10 cents.

→ How is the retail price of electricity determined?

Knowledge has also been accumulated on how to calculate the retail price of electricity. Millions of consumers have been informed – very high tariffs exist – that the retail price of electricity is also determined by changes in the energy exchange. Already in 2021, consumers were forced to familiarize themselves with the concept of a sanitation clause, which existed but did not affect anyone as long as the price of a megawatt-hour on the energy exchange remained below 50 euros per megawatt-hour.

Where are we today? The retail price of electricity is the result of… a ritual that has been followed rigorously for several months now. Electricity suppliers, studying the course of prices on the electricity exchange, on the 20th day of each month, announce the retail price for the next month. A few days later, the state intervenes with its subsidies, which either increase or decrease, so that every month the same result is obtained: the final price for the consumer (the main supplier, on the basis of whose tariffs all calculations are made) does not exceed 16 minutes per kilowatt. hour. So, for the foreseeable future (at least until June 2023), consumers should know that the price per kilowatt-hour will not exceed 16 cents. This fee refers only to the “fee” of the provider. The final cost is obtained by adding the so-called non-competitive fees (these are the resources collected by ADMIE, DEDDIE, the so-called utility fees), as well as taxes: excise and VAT. With all this, together the final cost is 0.25 euros if the consumption ranges from 0 to 500 kilowatt-hours per month, 0.27 euros if it is from 500 to 1000 kilowatt-hours and 0.28 euros if it is even more consumption. For February 2023, electricity providers announced tariffs in the “range” of 20 cents per kilowatt hour, so subsidies were limited to 4 cents. If we cut tariffs below 16 cents, subsidies will be zero. Conclusion; The price of electricity still depends on the course of the energy market, which, in turn, is influenced by a number of variables, including the course of the price of natural gas. Until June, there will be a “protection shield” of government subsidies that will keep the price of electricity at 16 cents. After June, forecasts are difficult.

→ What determines the price of fuel oil and fuel?

The price of fuel oil is mainly affected by the international oil price and the exchange rate of the euro against the dollar. Since we import oil and pay in dollars, the stronger the euro, the better for the consumer. In April 2022, when the euro was at its lowest and oil was at its peak, we paid more than 1.5 euros per liter. Not that the situation is better now. There is simply a factor of “government subsidies”, which keeps the retail price at a more reasonable level of 1.25-1.3 euros per liter. Will the subsidy last forever? Obviously not. At the moment, a liter is subsidized – and will be subsidized until the end of March – at 15 cents per liter. Without the subsidy, the combination of “the international oil price of $85 and the euro/dollar exchange rate of 1.1” sells for a retail price of about 1.4 euros per litre. What will happen next season is unknown. Also, the consumer should be aware that one of the big problems with heating oil is the very high taxation. In addition to the excise tax, which raises the price of refineries by 28 cents per litre, there is also a 24 percent VAT on both the fuel and the excise tax.

→ What is the cheapest heat source?

The foregoing should convince the consumer of one thing: in such an unstable environment, what is cheaper today may be more expensive tomorrow. February brings cheaper natural gas than heating oil and no subsidy for the first (unlike oil, which is still subsidized). On the other hand, electricity is the most expensive source of energy, but it has two characteristics. First, if you use the right device, performance can be tripled, and what is very expensive can be the cheapest. And secondly, electricity is the only source of energy that can be obtained from the sun for free, subject, of course, to the necessary investments.