Key Challenges to Address for Cheaper Electricity in Greece

Last week, supply companies analyzed their side of the critical issue at the Power & Gas Forum. Suppliers emphasized that reducing final electricity charges depends not only on them but also on state entities solving a series of issues. The first is network losses—both technical and power thefts—which have surged from 9.8% in 2020 to 11.4% in 2023. This means suppliers must purchase 114 KWh for every 100 KWh sold to customers, with much of this extra cost passed on to consumers through bills. Greece now ranks among countries like those in the Western Balkans with the worst European losses. However, the HEDDIE plans gradual resolution of power theft via mass smart meter installations starting this year. Another major concern is overdue consumer debts, which increase supplier risks and ultimately burden timely payers. These amount to €1.5 billion from old customers who switched providers (‘energy tourists’) plus €1 billion from current ones. Suppliers urge the Ministry of Energy and the energy regulatory authority to implement a long-term plan for clarity and stability in the market. Additionally, there’s a shortfall in the account managing Increased Cost Services for island electricity production, reaching €600 million last year and reduced to €200 million after budgetary injection. Lastly, balancing market surcharges and net metering payments from previous years pose further challenges. Suppliers believe resolving these issues will lead to lower consumer bills and better competition.