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“Hidden” electricity increases come from May 1

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“Hidden” electricity increases come from May 1

New package “hidden” increase on accounts current, the third since September last year, comes into force on May 1. These are the so-called regulatory fees, which are common to all suppliers and unlike the price per kilowatt hour, which also happens to fall when the price of natural gas tends to decrease, as in recent months, high regulatory fees tend to remain…

The new “hidden” increase comes from adjusting network fees charged through electricity bills from providers and fall into its bins DADDI to cover the investment in the network and the manager’s RAE-approved annual regulated income. In fact, according to allazorevma.gr, these adjustments will burden the final electricity bill for the average household (with a three-phase supply of 25 kVA and a consumption of 3750 kWh per year) by 7.5%, since from the 98 euros that were charged until today, from May 1 and until the end of 2023 will be charged at 174 euros per year.

This increase is the result of the RAE’s revision of DEDDIE’s approved annual income from €744 million to €981 million in 2023, and this amount is to be recovered from electricity bills. An additional factor leading to higher grid charges is the reduction in electricity consumption as a result of energy crisis and the inability of households and businesses to cope with high prices. Grid usage rates are calculated based on required revenue and demand. electricity. This means that even if the required income remained constant, the demand reduction factor alone would lead to its increase, especially since the annual income increased by 237 million euros.

This increased revenue for the year as a whole will be reversed from the second quarter onwards, meaning that consumers will also have to pay backdated network charge adjustments corresponding to the first quarter of the year.

For an average household consuming 3,750 kWh per year, the network fee increases annually from 98 to 174 euros.

The third factor that has led to a significant increase in network fees is the new methodology implemented by the RAE to calculate fees. To date, the largest number of charges corresponded to 80% of energy (ie consumption) and 20% of power (single-phase – three-phase).

With the decision of the RAE coming into force on 1 May, the electricity charge is adjusted to EUR 4.434 per kVA per year from EUR 0.52 today, and the electricity charge is reduced to EUR 0.01415/kWh from EUR 0.0213/kWh.

The RAE decision is also putting a heavy burden on medium and low voltage utilities as grid fees more than triple. According to EBIKEN (Industrial Energy Consumers Association), under the old method, the electricity bill was 1.097 EUR/kW/month and becomes 42 EUR/kVA/year, which is equivalent to about 3.5 EUR/kW/month. Accordingly, the electricity charge is set from 0.0028 EUR/kWh to 0.00413 EUR/kWh.

The increase in DEDDIE network fees follows an increase in system fees introduced on September 1 last year and an increase in Common Benefit Services (YKO) fees effective November 1. In particular, for high-voltage enterprises (energy-intensive industries), the systemic tariff from 1963 EUR/MWh in 2021 has been adjusted to 3728 EUR/MWh, for medium-voltage enterprises from 1384 EUR/MWh to 3869 EUR/MWh, and for households and enterprises, connected to the low voltage network, from 6.35 EUR/MWh to 9.78 EUR/MWh.

Author: Chris Liangou

Source: Kathimerini

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