Power rates expected largely unchanged in May

Electricity rates are expected to remain more or less stable in May, with small deviations compared to April according to estimates from supplier sources.

The average market price of electricity – a key component in determining retail prices – fluctuated in April around 61 euros per megawatt hour from €67/MWh in March and €73/MWh in February.

Consumers have renewable energy sources on their side, as their participation in the market compresses the market rate of electricitry, especially in conditions of low demand and excess production due to weather conditions, as happens in spring.

However, the instability in the international market goes against the decrease in rates; that mainly concerns the rise in natural gas prices from €25/MWh at the beginning of April to €33/MWh this month.

Natural Gas Hellenic Energy Company chief, Yannis Mitropoulos, pointed out that the following should be added to the market equation:

– The change in consumer behavior after the crisis, as the majority of consumers have reduced demand.

– The reluctance to switch suppliers, attributed to several factors: Insecurity, small differences in tariffs between suppliers and difficulty approaching the competition’s customers. For example, for an average household with a consumption of 4 MWh per year, a tariff lower by €20/MWh means a saving of €80/MWh on an annual basis, or about €7 per month.

– The open wound of electricity theft that burdens consistent consumers with the cost of energy that is consumed every year but not billed.

The cost of electricity theft is determined after a study by DEDDIE which records the energy traded in the networks in relation to the one invoiced by the suppliers. The difference between the two is due to technical losses of the grid and electricity theft, for which the most effective intervention is related to the installation of smart consumption meters. At the same time, an Energy Ministry bill already in Parliament provides for the obligation to present a new declaration of the licensed electrician installer if the business operator changes, and removal of the electrician’s professional license in case of participation in power theft.