BEA: Geopolitical developments will boost energy costs – One in three companies has made increases

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One in three companies has already raised prices and a second round will follow. This emerges from a survey of the Athens Chamber of Crafts on energy costs and with the basic conclusion that energy costs for businesses have increased by an average of 85% in the last year, with half of companies seeing an increase in their tariffs of over 90% and 40% to estimate the increase between 21% – 50%.

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A more detailed statement from the chamber states that “small and medium-sized enterprises are facing the vortex of energy costs, receiving higher bills every month for the use of electricity and gas. The latest adverse geopolitical developments are expected to launch the already costly “with the president of the Athens Chamber of Crafts, Pavlos Ravanis, calling for immediate action to stop the new wave of price increases that will hit businesses and households.”

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According to a new survey by the Athens Chamber of Crafts with the participation of member companies, for 66% of these companies their operation is greatly affected by the increase in energy and for 28% enough, resulting in one in three entrepreneurs not knowing or not be able to accurately calculate the rate of increase in energy tariffs for his business. The findings of the same survey show that energy costs for businesses have risen by an average of 85% in the last year, with half of the participating companies seeing an increase in their tariffs of over 90% and 40% estimating increase between 21 – 50%.

The vast majority of entrepreneurs (87%) cited electricity, (7%) natural gas, (3%) oil, (1%) biofuels and (1%) renewables as the main source of energy.

Including the increases to date, the research of B.E.A concludes that the cost of energy in terms of total turnover of the company, now represents an average of 36%. About one in three entrepreneurs (36%) has already raised the prices of their products due to the skyrocketing energy costs, while many entrepreneurs (23%) have avoided answering this question.

Other interesting findings of the research show that:

– 80% of the companies that participated in the survey have already implemented increases in their products and are expected to make new price increases in the near future.

– The 19% that has already increased, does not intend to proceed with new ones in the near future.

– The average price increase in the near future will be close to 14% as a result of rising energy costs.

– One in three entrepreneurs (33%) believe that the support and assistance measures already taken or announced by the government to date are in the wrong direction, while almost the same number (28%) believe that they are in the right direction, but they are not enough. Only 1% think they are in the right direction and that is enough.

– 78% of those who answered that the measures are in the wrong direction, increased their prices, as well as 76% who stated that they are in the right direction, but they are not enough. It is noted that 57% of the participants in the survey are entrepreneurs with staff up to 10 employees, 2% with staff from 11 to 20 employees, 5% with staff from 21 to 40 employees, 1% with staff from 40 to 60 and 1% with more than 61 employees.

Suggestions

The chamber requests immediate measures to curb the accuracy. The administration of the chamber reminds that it has submitted to the co-competent ministries, a framework of proposals, both for the structural modernization of the energy sector, and for the immediate protection of the small and medium enterprise.

Among other things, BEA proposes:

Give craft companies an 80% subsidy on the adjustment clause, related to the wholesale electricity purchase price, and not a discount on the energy price.

– Give a subsidy for the increase of energy, recorded in the energy tariffs, in the form of an interest-free loan, or a repayable advance, to address the liquidity problem. Specifically, based on energy prices for the month of July 2021, to retroactively subsidize the increase of energy tariffs, for each month or two months, in each industry in which proven (based on KAD) energy is an important factor in shaping its cost.

– To be able to pay electricity bills in more than 6 installments.

– To subsidize the increases in municipal fees to 100% and to return them to the previous situation, after the end of the energy crisis.

– Carry out a better and more effective control by RAE for the implementation of the subsidy by the providers, as there are large differences from supplier to supplier, while there are also phenomena of non-compliance with the announced discounts.

Medium-term measures

In order to deal with energy dependence in the medium term, the BEA proposes the preparation of a financial aid plan, with incentives for companies to proceed:

– In the market of lower energy class appliances (the exclusion of companies from the air conditioning subsidy program is unfair).

– In the installation and utilization of RES units and energy communities. Finally, regarding the research, it is announced that it was carried out in the first fortnight of February by the company Netrino on behalf of BEA and 150 companies members of the chamber participated.

SOURCE: AMPE

Source: Capital

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