Natural gas to overtake lignite as the cheapest fuel for power

Low oil rates are bringing an end to the domination of coal in terms of the cheapest fuel for producing electrical energy in Greece.

The slump in global oil prices over the last couple of months will – with the usual three-month delay – affect natural gas rates from October, making the production of electricity with natural gas cheaper than with lignite for the first time.

Although this development may prove temporary, it will lead to changes in the domestic electricity market, where lignite has to date remained the dominant fuel even though it is only Public Power Corporation that has access to it. Consumers should enjoy an immediate benefit if they have contracts with alternative suppliers to PPC that include a fuel clause which rolls over any changes in natural gas rates to the final consumer.