Electricity prices successful Greece accrued by 7% successful Aprilwhich was the highest fig among the countries of the European Union.
According to the latest study HEPI (Household Energy Price Index), Athens ranked archetypal successful tariff growthahead of Brussels and Dublin (6%), Rome (5%), Helsinki (3%) and Bucharest (2%).
Why person prices increased?
The maturation was expected aft a leap successful prices for natural state and oil successful March, caused by the worsening situation successful the Middle East and tensions astir Strait of Hormuz.
According to analysts, the summation successful tariffs is owed to respective factors:
- increase successful the outgo of the vigor component;
- tax burden;
- network tariffs;
- high dependence connected earthy gas.
Similar dynamics were observed successful different countries where state remains a cardinal origin successful pricing – successful particular, successful Italy and Ireland.
Why Greece came first
The main crushed is the structure of the market. Despite the increasing stock of renewable vigor sources, the Greek system remains tied to costly earthy state generation.
In March, against the backdrop of rising state prices, the outgo of energy connected the wholesale marketplace increased, and already successful April this was reflected successful user bills.
The M-1 pricing exemplary plays an further rolein which portion of the tariffs are formed with a hold of 1 month, which enhances the effect of “catch-up growth”.
Why is it antithetic successful different countries?
In opposition to Greece, a fig of European markets person shown greater resilience:
- Spain and Portugal — owed to the precocious stock of renewable vigor sources;
- Scandinavian countries – thanks to hydropower;
- individual countries EU – by reducing taxes and VAT.
In some countries, authorities person deliberately constricted the pass-through of terms increases to the extremity user utilizing tax and regulatory mechanisms.
The existent situation is the effect of respective structural factors astatine once.
Firstly, renewable vigor is not yet capable to afloat stabilize prices. Despite the increasing stock of renewable vigor sources, the system still depends connected backup generation, chiefly connected earthy gas.
Secondly, the structure of state supplies has changed. After a simplification successful the stock of cheaper pipeline supplies from Russia, dependence connected LNG increased, chiefly from the USA, which are connected mean much costly owed to liquefaction, transportation and regasification.
As a result, the terms of energy remains tied to the astir costly sourceand immoderate fluctuations successful the state marketplace are automatically reflected successful user bills.
At the aforesaid time, hopes for a seasonal diminution remain: In summer, an summation successful solar vigor accumulation tin temporarily trim the load connected state generation.
However, this is much a substance of smoothing retired alternatively than solving the problem: without changing the marketplace structure, dependence connected costly state will proceed to find terms dynamics.
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