The Greek government is taking action to address a recent surge in wholesale electricity prices, collaborating with the European Commission to develop a regulatory mechanism to protect consumers from drastic price hikes.
Wholesale electricity prices have more than doubled in recent days, reaching a peak of €215 per megawatt-hour (MWh) on the Energy Exchange before settling at €202 per MWh.
This represents a dramatic increase from the €100 per MWh level seen just days earlier. Energy Minister Theodoros Skylakakis called the price surge "unprecedented and irrational," emphasizing the need for immediate intervention.
If these high prices persist, a new stabilizing mechanism could be launched as early as December.
Mr. Skylakakis attributed the price spike to a combination of factors, including reduced renewable energy output in Northern Europe due to calm weather and insufficient grid connections between Central and Southeastern Europe.
He also pointed to an unclear algorithm used in Central Europe that has hindered optimal energy transmission in the region.
To address these challenges, an EU delegation will visit Athens on November 22nd to discuss urgent measures with the Greek government. Mr. Skylakakis stressed the goal of creating a permanent EU mechanism to address energy market distortions affecting Southeastern Europe.
The mechanism aims to prevent volatile wholesale prices from translating into higher retail prices for consumers.
The initiative builds on previous efforts by Prime Minister Kyriakos Mitsotakis, who raised concerns about energy market inefficiencies in a letter to European Commission President Ursula von der Leyen. Greece, along with Romania and Bulgaria, has been advocating for regulatory reform to shield consumers from price volatility.
Mr. Skylakakis firmly stated that the government would not allow inflated energy costs to burden consumers.
"We need a tool to prevent excessive profits at the expense of consumers and businesses," he declared. "Sharp price swings cannot be tolerated."
Government spokesperson Pavlos Marinakis echoed this commitment, assuring that "citizens will not bear the brunt of wholesale price increases in the retail market."
Mr. Marinakis confirmed that the government is prepared to implement measures similar to those used during the previous energy crisis to protect households from excessive price increases.