IPTO: It is negligible to increase electricity charges from the expansion of the electricity network

The increases in electricity charges were commented on by one in a communication, clarifying that “The increase in System Use Charges (CSFs) in electricity bills from the expansion of the electricity network, which is necessary for the country’s energy transition”. He also stressed that “This increase, not because IPTO increases fees, but because investments are made absolutely necessary to develop the system. In fact, the debate on increasing System Use Charges has opened when the State and the market ask the IPTO to develop its network in order to integrate more RES projects into it. In this context, the IPTO shall specify the following: high-voltage consumers with an annual consumption greater than 13GWh are those who have benefited from a change in the methodology on the basis of which System Use Charges are shared. In particular, large consumers already receive discounts from 33% to 54% on the XXX. This means that they bear a very small part of the increase in these charges. According to the average trend consumers, the XXV for 2023 amounted to around EUR 6/MWh. This amount represents only 4.5% of the average wholesale electricity market price, which last year was set at EUR 133/ MWh. The above percentage is much lower over the entire invoice, taking into account the charges for the use of Networks, POWs and ETMEARs. The small increase in System Use Charges is due to the necessary proliferation of networks that will allow for greater RES penetration, supporting the country’s energy transition. In the past, the few and specific conventional stations operating before the massive penetration of RES required limited networks of specific routes, but the cost of generating electricity from them was very high (and is increasing with charges from emission allowances and heavy fluctuations in fossil fuel prices), in relation to costs for the networks that were relatively limited. Energy transition, with the development of RES across the country, obviously increases the cost of networks necessary to connect distributed RES stations, but significantly reduces the cost of generating electricity, since already wind and photovoltaic, but also other sources of RES are now extremely competitive than conventional production. The configuration of the competitive part of the accounts is not at all linked to System Use Charges. Finally, the socialisation of the cost of linking these RES projects even if it was not done directly through the provisions of Article 98 of Law 4951/2022, would be carried out indirectly by passing on that cost to the bids of those units for their participation in the electricity markets or in the tenders when participating in the relevant tenders.’ Source: RES – ICM