They characterize as unjustified the jump of prices in the wholesale electricity market to the levels of 360-400 euros / MWh, with a joint announcement – statement of five industrial associations. Specifically, the Association of Businesses and Industries of Peloponnese and Western Greece (SEVPDE), the Association of Attica-Piraeus Industries (SVAP), the Association of Industries of Thessaly and Central Greece (SVTHSE), the Association of Industrialists of Greece (SEVP) EVIKEN) emphasize that this increase, with reference to the jump in stock market prices of FA. due to the crisis in Ukraine, will affect the Greek market in April. As the announcement points out, in our country the price at which all gas suppliers and generators are supplied is shaped by the TTF prices of the previous month (front month). Thus, according to the announcement, the supply price for March is 80 euros / MWh, according to which the estimated variable cost for a gas unit should not exceed 200 euros / MWh. Therefore, the prices of € 360 / Mwh in the Greek stock market of electricity are judged as excessive and unreasonably high, bringing unexpected benefits but which affect the competitiveness of industrial energy consumers, the announcement states.
In more detail, the joint statement of the 5 industrial associations states:
In the last few days, there has been an unjustified jump in prices in the wholesale electricity market at the level of € 360-400 / Mwh, with reference to the jump in the stock market prices of VAT. due to the crisis in Ukraine, which, however, will affect the Greek market in April. The increase in prices further expands the long-standing problem of high electricity costs, which burdens Greek industry with negative effects on its international competitiveness.
It is known that in our country the price supplied by the VAT All suppliers and generators are formed by the stock market prices TTF of the previous month (front month), as specified in their respective contracts, as in our country there is no spot market (hub), unlike what happens in other European markets.
The commission price for March is € 80 / Mwh, based on which the estimated variable cost per unit of gas should not exceed € 200 / Mwh, if we take into account the significant drop in CO2 prices to € 60. / Mwh from the level of € 90 / Mwh that had reached the last two months.
Therefore, the prices of € 360 / Mwh in the Greek stock market of electricity are judged as excessive and unreasonably high, bringing unexpected benefits but which affect the competitiveness of industrial energy consumers.
The invocation of prices in the European wholesale markets is not a complete reason for the rise in prices in the Greek market, because on the one hand in the European wholesale electricity markets only 20-30% of consumption in each country is traded, on the other hand in these markets the trading of VAT is done through spot purchases and not based on last month’s prices.
The subsidy of € 65 / Îœwh, given to the industries for the month of March, is obviously not enough to cover the much increased prices. It is now clear that the crisis will last at least until the beginning of next year. The blow that the country’s industry will suffer will be crucial and the issue of viability is raised for the majority of them.
We believe that the Greek government should immediately take more effective measures to support the industry, in the framework set by the European Commission to deal with the excessive increase of prices in the wholesale market, including the taxation of the super profits of the electricity producers. The intervention of the government in the formation of prices in the wholesale market, following the example of other European countries, is considered a necessary condition for the viability of Greek processing. Our Associations welcome yesterday’s six proposals of the Greek Prime Minister in view of the European Union summit and look forward to the practical support of Greek processing.
Source: Capital
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