European Commission: Measures on energy costs and security of supply announced

Energy prices in Europe and Greece are skyrocketing after discussions in both the US and the EU to cut off or further restrict the supply of natural gas from Russia.

At the same time this afternoon, the Vice President of the European Commission Franz Timmermans and the Commissioner for Energy Kadri Simpson are expected to announce new measures that the Member States can adopt in order to address the energy costs, but also to increase their energy efficiency. According to a draft proposal that was leaked last week, the inclusion, among other things, of the possibility of imposing regulated electricity prices for economically weak households but also for small businesses is causing a sensation.

However, yesterday the price of TTF gas in the Dutch hub broke a new record as during yesterday’s negotiations the futures contract for April jumped up to 345 euros / MWh (Megawatt hours). The increase at the time when the price was fixed at the above level was  more than 79% in relation to the closing of Friday. Compared to February 24, when Russia invaded Ukraine, the price of gas has more than doubled. Later its price dropped to 215 euros / MWh.

Electricity prices

The fossil fuel rally is also sweeping the stock markets for electricity. Thus, for today, the day ahead market of the Hellenic Energy Exchange the price of wholesale electricity jumped to 426.9 euros / MWh. It is also a record of seasons with the previous one being recorded in Greece on December 21, 2021 at 415.94 euros / MWh.

Today, compared to yesterday, the wholesale electricity price increased by 52.5%, causing tremors of concern for future electricity prices in households and businesses. The government is deeply concerned and the cost of energy was discussed last Saturday in a meeting between Prime Minister Kyriakos Mitsotakis and Minister of Environment and Energy Costas Skrekas that took place at the Maximos Palace.

Subsidies

During the week, except for the unexpected, the Minister of Environment and Energy will announce the subsidies for the electricity and gas bills for the month of March. This is a “package” of 350 million euros that will provide a little breath to home consumers and businesses. The grants will also apply to gas consumers. The amount is not expected to exceed the corresponding one of last month, February.

However, if energy prices continue to move at these rates, subsidies with resources from gaseous emissions rights will not be enough to significantly cut the additional costs to households and businesses.