The wholesale electricity prices show a steep drop following the announcement of the government intervention, with the tax on the surplus income of natural gas power producers.

The following day’s prices fell from 218 euros to 153.95 euros.

At the same time, however, the wholesale prices in the rest of the countries of the Balkans and central Europe continue to move upwards and are formed today and range between 230 and 240 euros in Romania, Bulgaria, Hungary and Serbia.

Why did wholesale prices increase in the Greek electricity market?

The increase recorded in wholesale prices in Greece is due to a combination of events. These include:

• The long-lasting heatwave in Greece, which was expected, but above normal levels,

• The heat wave of unexpected duration from Ukraine to Greece, worse than that of Greece,

• Increased demand from Ukraine as the Russians continue to destroy the electrical infrastructure.

• The non-expansion of the increased demand that has been created, especially in Hungary to the West. Due to weak connections to the West (eg, Austria-Hungary connection), we are being fed Hungarian prices while we are about 1,000 km away. Austria, however, which is next door has spectacularly lower prices, because it has exported as much as it can export to Hungary and its prices have been decoupled.

How wholesale electricity prices in Greece are affected by the corresponding prices of other European countries

Wholesale prices are mainly influenced by the interconnected Balkan countries, which do not have good connections with the rest of (Central) Europe. This happens both when prices rise and when prices fall. In particular, interconnections affect demand and supply. And we seek to have connections – we have improved them – for the most efficient operation of the system. This means, however, that there may be periods when energy is leaving abroad and prices are rising from the demand that exists abroad, and vice versa, periods when prices are falling from the supply of cheap energy coming in from abroad. The above refer to wholesale prices. To these are added the charges related – mainly – to the cost of operating the networks and the social services we offer, either with low charges for the vulnerable or with very large amounts of subsidies for electricity in Crete and the islands, through the YKOs. These amounts, when the interconnections are completed, will be decisively reduced.

When will retail electricity prices return to normal levels for the season?

The drop in retail prices is a function of the type of invoice. It is immediate in the yellows, with a delay of at least one month in the greens, while the blues are not affected during the duration of the relevant contracts. August futures prices, i.e. market estimates for future prices, show a de-escalation of wholesale prices for Greece.