Greece shifting to fixed electricity rates
Government aims to protect consumers from seasonal price changes, green tariffs no longer mandatory
Greece is moving away from mandatory green electricity tariffs toward fixed-rate plans as energy suppliers adapt to regulatory changes set for 2025. The government announced that green tariffs, which simplify price comparisons for consumers, will no longer be compulsory for new customers starting January 1, 2025.
However, existing customers will retain their green tariffs indefinitely if they choose to renew. Energy Minister Thodoros Skylakakis emphasized that suppliers must continue offering green tariffs to existing clients, ensuring that approximately 4 to 4.5 million consumers have access to this option.
The government is also mandating a minimum duration of 12 months for fixed-rate contracts to account for seasonal price fluctuations, thus providing better consumer protection.
Skylakakis raised concerns about the rising popularity of six-month fixed contracts, arguing that they often trap consumers in unfavorable pricing. “With six-month fixed contracts, consumers are sold summer prices in winter,” he stated, advocating for longer contracts that genuinely stabilize prices year-round.
Starting in 2025, the Ministry of Environment and Energy will ban the sale of six-month fixed-rate contracts, aiming to align Greece’s energy market with European Union directives that require a minimum contract duration of one year. This change is expected to enhance price predictability for consumers.
Currently, fixed-rate offers are available for as low as €0.10 per kilowatt-hour, while green tariff prices are between €0.14 and €0.16. The government encourages consumers to use green tariffs as a benchmark when comparing offers. Positive trends are emerging in the market; the average wholesale electricity price for November has decreased to €85.08 per megawatt-hour, down from €112.35 in September. Protergia announced it would maintain its green tariff rates at €0.159 per kilowatt-hour, demonstrating a commitment to stable pricing in a fluctuating market.
This strategic shift aims to better protect consumers and align Greece with broader European energy policies.
