Nominal electricity prices are expected to rise sharply in September, with the government seeking to absorb the bulk of the jump by keeping bills at August levels.
In particular, information from the market estimates that the initial price of the kilowatt hour may escalate in September even up to 80 minutes, while in August it had ranged between 48 and 50 minutes by most suppliers and “translated” to 15 – 17 minutes after the state support reached 33.7 cents per kilowatt hour.
Specifically, for August the total subsidy from the Government approaches 1 billion 136 million euros, absorbing up to 90% of the increase for all household consumers in the total monthly consumption for both main and non-main residences, the 100 % of the increase for CTO beneficiaries, 80% of the increase for small and medium professionals and up to 99% of the increase for farmers.
Information indicates that the government seeks to keep final consumer prices in September close to August levels, which translates into a correspondingly increased state subsidy.
After all, with the imposition of a ceiling on the compensation prices of electricity producers that was implemented from July, the price increases on the energy exchange also entail an increase in funds from the Energy Transition Fund for subsidizing consumers.
It is recalled that based on the current framework, suppliers announce by the 20th of each month the invoices that will be applied the following. Something that gives scope to consumers to change supplier, without requiring conditions.
The new spike in prices in September follows the rise in prices on the Energy Exchange, as a result of the spike in natural gas prices internationally.
It is characteristic that the price of European natural gas on the Amsterdam energy exchange (TTF) today reaches 250 euros per megawatt hour.
Accordingly, the price of electricity on the Greek stock exchange closed today at 449.14 euros per megawatt hour, under pressure from the natural gas rally combined with the rise in demand due to high temperatures and the reduced contribution of renewable energy sources in meeting demand.
It is worth noting that the price of energy in Germany set a new record today, reaching 545 euros per megawatt hour, with analysts from Energi Danmark speaking characteristically of “unbelievable prices”.
Source: Capital
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