A pile up from natural gas will bring a raise in electricity!

There was no market or society agent that agreed with the government's decision for excise tax on gas from September 1! Electricity producers and suppliers did not agree because that would automatically increase the price of their product, industries and businesses because this would increase production costs and, of course, households because the cost of heating and cooking would rise.

But the start came last Thursday and brought another pile up to the foreground from the implementation of the government decision: pressure about increasing electricity prices!  

Since the first day of implementation, the value of the wholesale selling price of electricity (the so-called System Marginal Price) soared by 30% as natural gas plants produce about 1/3 of the electricity we consume. And such will be the trend for the next few days, characterized by the fact that the wholesale price will be much higher than the average price at which they are allowed to sell it to us for about 15 hours, reaching approximately 70 euros per megawatt hour.

Just last Thursday, the state electricity company announced that its profits were characterized by a drop of over 60% in six months. And, now, in the last four months of the year, there is great pressure on its fiscal fundamentals, while Greece has pledged to sell a portion of about 17% of the PPC to the private sector.

And given that under EU law it’s impossible for electricity tariffs not to cover the cost of the producers, increases in prices in the forthcoming months seem certain.

However, entities such as ESAI (producers) have clarified that they will tranmute their reactions into an appeal to the relevant bodies for an increase of the excise tax. But even if vindicated, increases in power will probably be here already, for as it seems they will probably be "running along" with the new year…