Effervescence in the electricity retail market – There is an increased subsidy on bills

By Harry Floudopoulos

Signs that rising energy prices are beginning to affect consumers’ ability to respond to the payment of their bills are making their appearance in the market. According to sources in the electricity supply companies, recently the requests for settlements have increased significantly and even doubled. This development creates consequent problems with the liquidity of the companies, which are required to collect within 2 to 6 months the money that they are required to pay directly to the market.

The call centers of the companies complain about the high bills while many consumers request a change of their contracts so that they have a fixed and not floating charge. The image conveyed by sources in the supply sector is that so far, the companies through the settlements have managed not to “blush” the unpaid bills. However, it is clear that consumers, whether households or businesses, are unable to cope with the current high price levels set by the crisis.

In this climate, the government is expected to announce the new increased subsidies, which as reported by Capital.gr are expected to exceed half a billion euros with the monthly subsidy exceeding 55 euros from 39 euros today. At the same time, a significant increase or even doubling is expected in the subsidy of companies, which in the previous period reached 65 euros / MWh. Regarding the subsidy for natural gas, it is expected to remain stable at 20 euros / MWh.

Finally, the government is expected to announce a subsidy for gasoline and diesel, which, however, will not be horizontal but will be given according to income criteria.