How will RAE check if there are skyrocketing profits in electricity

Of Thanks to Floudopoulos

To the question if there are “skyrocketing” profits in the electricity market but also what is their amount, the control carried out by RAE in the sector will be called to answer.

As is well known, both in Greece and at the European level, due to the energy crisis, the debate has intensified recently as to whether there are energy producers in the market who enjoy the so-called “skyfall” profits or the so-called windfall profits.

In fact, for some markets in Western Europe, these producers have been identified and are none other than the nuclear plants but also the RES that normally participate in the energy markets without any subsidized price scheme.

These categories of producers are considered to enjoy extremely high profits, as they are compensated in the market by the prices formed by the gas units, which due to fuel are at extremely high levels.

So the question that arises is whether in Greece there are producers that fall into this category. The RAE audit is called upon to answer this question.

According to information, the Regulatory Authority is expected to control the profits of electricity generators in the wholesale market.

Specifically, the balanced cost of each unit (LCOE) will be calculated on a monthly basis, the offers made in the market, the clearing price of the market and consequently the profit will be determined.

It will also be taken into account what happened to these revenues, ie if they were returned through discounts on the supply, so that the balance can be judged if the generator had excessive profits.

RAE knows that the large profit margin exists mainly for hydropower, less for lignites and much less for gas plants.

The key question is whether the amounts collected were passed on as a discount to the commission. In this part, preparation has been done as RAE supervises the market and therefore it is estimated that in a period of 15 days there can be a picture for the entire period in question from October to March.

It is noted that these data will be cross-checked with the market players themselves, both the vertical companies with a presence in the thermal power generation and the non-vertical ones in order to determine if there is a high profit margin in the supply.

PPC profits

The crucial question concerns primarily the hydroelectric and lignite plants, ie whether skyrocketing profits have been offered lately. In essence, the issue mainly concerns PPC, which is the only producer active in hydroelectric and lignite.

Government sources, however, point out that PPC did not generate skyrocketing profits, something that will be proven by the announcement of the results for the year. This is because the company has returned through the discounts it makes on supply tariffs to consumers whatever benefits arise.

According to information, PPC is expected to present a balanced bottom line, without profits, precisely because of its policy of returning to consumers the highest possible discounts on supply tariffs.