Consumers to adjust energy use via alerts
Households with smart meters to receive SMS or Viber messages on electricity price fluctuations
In an effort to protect consumers from soaring energy costs, Greece’s Regulatory Authority for Energy (RAAEY) has announced a new initiative aimed at providing timely notifications regarding fluctuations in electricity prices.
Under this program, households equipped with smart meters will receive SMS or Viber notifications informing them when wholesale electricity prices are projected to exceed €150 per megawatt-hour.
This timely alert system will enable consumers to adjust their electricity consumption proactively, reducing their financial burden during peak price hours. If prices rise above €200, immediate alerts will be dispatched, encouraging consumers to further minimize usage.
The initiative represents a key component of RAAEY’s broader strategy to introduce dynamic pricing, a system where electricity rates fluctuate based on real-time market conditions.
Currently, this dynamic pricing mechanism is available only to medium-voltage businesses and select low-voltage consumers with smart meters. However, the plan is to expand the mechanism, with an estimated 300,000 additional smart meters scheduled for installation by the end of 2025. Priority will be given to businesses and public buildings to enhance energy efficiency and facilitate effective demand management.
The proposed regulatory framework requires six major electricity suppliers – PPC, Metlen (Protergia), Heron, NRG, Elpedison, and Zenith – to offer dynamic pricing contracts to their customers. These contracts will consist of two components: a fixed charge, which remains constant throughout the billing period, and a variable charge that reflects the hourly price of electricity. This model aims to provide consumers with greater clarity regarding their energy costs and encourages them to shift their usage patterns to off-peak times when rates are lower.
Despite the advantages of this dynamic pricing structure, the slow installation of smart meters has delayed access for residential consumers. Currently, about 600,000 smart meters are operational, with plans to add another 50,000 by the end of the year.
RAAEY envisions that by the decade’s end, approximately 60% of households will benefit from these innovative pricing options.
This initiative aligns with Greece’s ongoing efforts to navigate the complexities of energy market fluctuations and foster greater efficiency in consumption. As the country faces the challenges of transitioning to a more resilient energy system, these measures are expected to play a crucial role in shaping consumer behavior and enhancing market stability.
