Electricity supply charge adjustments in Athens

In Athens, a supply charge adjustment clause has been introduced, since 5 August 2021, by the incumbent supplier PPC, replacing the existing CO2 adjustment clause that was however dormant in the past months. This additional charge, which is based on the wholesale clearing price, increased the energy component to an all time high , as a consequence of soaring wholesale. For the alternative suppliers the same adjustment clause is into force since September 2019.

To mitigate this increase, PPC introduced a 30% discount on the energy charge, however it turns out that this measure is unable to fully offset the burden of the adjustment clause on the consumers’ electricity bills.

In the Brussels region, energy suppliers are exposed to significant financial risks in the event of a defaulting customer as it is much more difficult and costly to cut off electricity or gas than in Flanders or Wallonia. The lack of budget meters and the obligation of the suppliers to continue supplying even if bills remain unpaid, are two significant disadvantages that suppliers consider.

Back in 2018, BRUGEL had published a report expressing the concern that a lack of competitiveness in the Brussels residential market would lead to an increase in prices. Three years later, with only three remaining players, the retail energy prices are indeed following an upward trend.

Author: Ioannis Korras, Energy Market Analyst

Sources:

[1] PPC: “RESIDENTIAL TARIFF C1”, 09.2021

[2] Kathimerini: “Οι κρυφοί όροι που αυξάνουν τα τιμολόγια του ρεύματος”, 08.06.2021