Initiative of 5 countries with the participation of Greece for changes in the electricity market

Of Thanks to Floudopoulos

A 5-nation bloc, consisting of France, Greece, Italy, Spain and Romania, is expected to present a common position on tackling the energy crisis at the current EU Energy Council.

The 5 countries are expected to agree with the French proposal, which stipulates that wholesale prices in the electricity market should reflect the average cost of production based on the energy mix and not the cost of the marginal unit, ie the most expensive unit included in the system.

According to a post on twitter by French Energy Minister Barbara Pompili, the Council of Ministers will be presented by France in cooperation with Spain, Italy, Greece and Romania a proposal for better protection of consumers against price increases and to the necessary stability to assist the energy transition.

In the same vein, the Minister of Energy K. Skrekas also stated in a post on twitter that in this unprecedented energy crisis we are protecting consumers and presenting with France, Spain, Italy and Romania a proposal for energy market reform to support society and accelerate of the green transition.

In terms of the chances of accepting the proposal of these 5 countries are presented divided. This is because northern countries are reluctant to discuss energy market reforms, given that their own markets are more mature and there is more flexibility. At the same time, the European Regulator ACER has opposed the changes in the market model.

Finally, it is noted that wholesale electricity prices remain at extremely high levels throughout Europe, over 200 – 250 euros / MWh with the exception of Poland and Germany.

Indicatively for today in Greece the price is 262.78 euros / MWh, in France 277.77 euros / MWh, in Italy 275.75 euros / MWh, in Romania 243.79 euros / MWh, in Switzerland 296.28 euros / MWh etc.