Charges on power bills to rise

Electricity consumers should expect a tough fall in terms of prices, after some relief provided thanks to state subsidies in August rates.

Under normal circumstance, electricity prices in the wholesale market tend to start declining in September as demand also falls, followed by retail prices. This is expected to happen again this year in terms of wholesale prices – unless some extreme unforeseen event intervenes – but not necessarily in retail prices as well. The reason is that the collection of electricity market shortfalls, which add up to more than 1 billion euros, were deferred to the fall.

The deficit of the Special Account for Utility Services (ELYKO) is estimated at over €600 million and the deficit of the Special Account for Renewable Energy Sources (ELAPE) at over €400 million. Utility services are paid by consumers through their electricity bill as a regulated charge that covers the extra electricity production costs of the non-interconnected islands and the cost of the social household tariff.

A similarly regulated charge on the electricity bill is the ETMEAR (fee in favor of RES), which is the main revenue of the ELAPE through which RES producers are compensated. Plugging these holes is expected to increase the levies on power bills.