A reduction of up to 20% in electricity prices is brought by the de-escalation in natural gas prices

By Chrysostomos Tsoufis

The de-escalation of natural gas prices – which has a significant contribution to our country’s electricity generation – results in electricity providers announcing by midnight significant reductions in their tariffs eth will take effect for November, which according to information they can reach 20%.

At the same time, however, it loosens the hands of the government, which with smaller subsidies will achieve the same discounts on bills. And November will continue i.e. to cover 90% of the price increases on the bills of households consuming up to 500Kwh, which constitute 90% of the total.

As is understood, the natural gas subsidy granted by DEPA will also decrease, but whether there will be a benefit and for which of the 700,000 households will depend on consumption, since here the aid is a fixed amount and does not attempt to cover part of the price increases .

It is typical that from August 26 when the price of natural gas reached €349/Mwh , we even reached 108€/Mwh yesterday, an increase of over 223%. A combination of factors led to this development, from the summer and the whole debate surrounding Europe’s decisions on measures against the energy crisis to the filling of warehouses across the old Epirus at a rate that exceeds 93%.

Unfortunately, the wholesale price of electricity in the country is falling significantly. The average price in August was at €430/Mwh to drop to €414 in September, while for the first 19 days in October is around €260/Mwh.

At the same time, however, these developments lighten the state budget and, according to the government representative Yiannis Oikonomou, create possibilities for further interventions. The return of the 15 cent subsidy on diesel is almost locked in as learns SKAI with application from November 1 and at least until the end of the year. There may be other moves with Development Minister Adonis Georgiadis putting the possibility of fuelpass 3 on the table.

As long as natural gas prices continue to de-escalate or even remain at such levels, fiscal margins increase. Such an event, combined with the fact that the second revision of the Ministry of Finance for growth this year will probably turn out to be conservative, would save some hundreds of millions. Millions, however, that the government will not be in a hurry to use. On the one hand, because another pleasant fiscal surprise from Greece would possibly bring the investment level closer, on the other hand…elections are coming.

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