At 16 cents/KWh the price of electricity in August with the subsidy – Around 50 cents/KWh the prices before the subsidy

LAST UPDATE: 12.40

By Haris Fludopoulos

The providers’ announcements about the electricity prices that will be effective in the month of August began this morning.

According to the first announcements from the companies (some will make announcements in the afternoon) the prices are around 50 euros/MWh (50 cents/KWh). The final prices, however, are formed after the implementation of the subsidy by the state as announced by the Minister of Energy K. Skrekas and reaches horizontally at 33.7 cents/KWh. This means that the final prices for the consumer are close to 16 cents/KWh

In more detail, PPC, which has the largest market share in supply, will have a price of 48.6 cents/KWh with a fixed rate of 3.5 euros/month. However, the final price after the announced subsidy is 14.9 cents/KWh for consumptions up to 2000 Kwh and 16.1 cents/KWh for consumptions above 2000 Kwh.

The second largest provider, the company Protergia, will have a price of 54.913 cents/KWh with a fixed price of 5 euros/month. After the subsidy the price is 21.213 cents/KWh

The third largest provider, the HRON company, will have a price of 49.5 cents/KWh with a fixed price of 9.9 euros/month. After the subsidy the price is 15.8 cents/KWh

Finally, the Watt & Volt company provides three options from 37.5 to 58.5 cents/KWh with a different fixed price (from 29.9 to 14.9 euros/month). After the subsidy the price ranges from 3.8 to 33.7 cents/KWh

Elpedison is expected to announce its prices this afternoon.

The subsidies

According to the announcements made by the Minister of Energy, K. Skrekas, for all main and non-main residences, the subsidy amounts to 337 euros/MWh for the entire monthly consumption and without income criteria. Thus, 90% of the increase is absorbed with the goal of the price per kilowatt hour ranging between 15-17 cents, as Mr. Skrekas said.

For CTO beneficiaries, the subsidy amounts to 377 euros per MWh in order to absorb up to 100% of the increase.

For commercial consumers with power supply up to 35KVA shops, restaurants, kiosks, convenience stores the subsidy is 300 euros per MWh for the entire monthly consumption and up to 80% of the appreciation is absorbed.

For farmers and all agricultural tariffs the subsidy amounts to 337 euros per MWh covering from 82% to 99% of the increase.

For industrial consumers, the subsidy will be 250 euros / MWh to absorb up to 67% of the increase.

For natural gas and for commercial consumers, the subsidy amounts to 30 euros/ thermal MWh.

As Mr. Skrekas said, the Ministry of the Interior in collaboration with RAE closely monitors the formation of electricity prices by the provider, in order to prevent unfair commercial practices.

“The commitment of the government and the Prime Minister himself to support households, professionals and farmers from the unprecedented international energy crisis is proven in practice,” stressed Mr. Skrekas.

According to him, for the month of August, the total subsidy from the Government is close to 1 billion 136 million euros, absorbing up to 90% of the increase for all household consumers for the entire monthly consumption and for the main and non main residences, 100% of the increase for CTO beneficiaries, 80% of the increase for small and medium-sized professionals with power supply up to 35 kVa, and 82-99% of the increase for farmers.

Worries

However, concerns are being expressed in the market that eventually prices will be even higher. This assessment is supported by the international environment as well as the situation in the electrical systems across Europe (scarcity of water and low hydropower reserves, poor condition of nuclear plants, shortages of natural gas).

Some market sources believe that final prices could even jump to 1000 euros/MWh with all that this implies for the market, providers and consumers.