EU sees June halt to energy aid

Brussels has signaled the end of the emergency measures to deal with the energy crisis, overturning the regime of the unilateral extension secured by the previous government regarding the ceiling on the wholesale market and subsidies on electricity bills until September.

In the evaluation report on the emergency measures the European Commission published yesterday, taking into account the new conditions created by the de-escalation of prices in the market, Brussels considers there is no reason for their extension, which in the case of Greece means that they should not continue beyond June, when their approval period expires. 

Shortly before the end of his term, then Environment and Energy Minister Kostas Skrekas extended both the mechanism for reclaiming surpluses from the wholesale market and the suspension of the adjustment clause and subsidies until the end of September, pending the approval of the Commission in a previous request he had submitted for their extension until year-end, which was not granted, and as it appears from the report will not be granted.

The report’s conclusions, which will be submitted as proposals to the Council to take the form of mandatory measures, state that the emergency measures to deal with the energy crisis implemented under Regulation 2022/1854 should not be extended.

This is the measure of the imposition of a ceiling on the revenues of power generation units (technologies that produced excess revenue due to the high price of natural gas), the measures to relieve households and businesses from high energy costs (subsidies, tax reductions, ceilings etc), and for energy saving measures during peak hours by 5%. 

Assessing market conditions, the Commission points out that prices in August 2022 were over 350 euros per megawatt-hour – i.e. four times the 2010-2020 average.

However, as of December 2022 electricity prices have fallen drastically and are on average below €80/MWh and natural gas prices have not only fallen, but also stabilized.