Reports: Greek energy ministry eyeing cut in special levy imposed last Nov. on natgas imports

Greece’s environment and energy ministry is reportedly considering a reduction in the extraordinary levy of 10 euro/MWh on natural gas quantities procured by the producers in country for power generation.

The special levy was imposed last November, and resulted in additional costs tacked on to electricity production – and by extension, to the final bills of consumers.

According to assertions by private power companies in the country, the surcharge causes a 20-euro per MWh increase in retail prices.

Sources that spoke to Ot.gr said the prospect of reducing or even abolishing the special levy is definitely a possibility, with one reason being that power plants in Greece – from one month to another – suddenly found themselves producing more expensive electricity than produced in neighboring countries.

As a result, an algorithm used by the European Energy Exchange pivoted towards now cheaper imported power – by older and more polluting units in other countries – to cover domestic Greek demand, rather than by local production.

Conversely, along with the levy, reduced demand for natural gas in the Greek market in January 2023 resulted in zero imports of Russian gas to Greece for the specific month.