Gradual abolition of two fees will lower electricity bills, Environment & Energy Min says

Environment and Energy Ministry is planning, to reduce consumer bills for electric power.

This strategy is included in the National Plan for Energy and the Climate that was presented recently by the ministry leadership. It includes the following:

– Developing renewable energy sources (RES) in a balanced way per category (photovoltaic, wind, hydroelectric), and based on plans accounting for consumer needs. It includes keeping cuts restricted while developing energy storage systems.

– Responding (transferring) demand to the times RES are producing excess energy.

– Restriction to rational levels of the cost of regulated charges related to the development of networks that relate to the gradual reduction – leading to abolition – of the regulated charges related to ETMEAR and YKO. For ETMEAR, this would be implemented after the highly subsidized contracts end, and for YKO after the power grid connections have been completed.

– Transer of the low RES cost to the final consumer through private-public partnerships and developing self-production. Specific actions are being planned, centering on local government.

As old units are being replaced, the cost will drop for consumers, in RES. As for the islands, the completion of the large power grid connection between Heraklion (Crete) and Attica is of key significance in reducing the electricity cost of non-connected islands.

According to the Independent Power Transmission Operator, the electrification of the cable between the island and the mainland will be tested in the beginning of 2025, while the works for the Dodecanese Islands and the islands of the Northeast Aegean are starting shortly.

Consumer benefits

In terms of ETMEAR, household charges are 0.017 euro per KW, while for YKO the charges follow a graded billing, as follows:

– For consumption of 0-1600 KW per quarter, charges are 0.0069 euro/KW

– For consumption of 1600-2000 KW per quarter, charges are 0.05 euro/KW and

– For consumption of 2001 KW or more per quarter, charges are 0.085 euro/KW.

Therefore, for consumption of 300 KW per month, the benefit to consumers once both fees are abolished will be 5.1 euros/month (from the ETMEAR abolition) and 2.07 euros/month (from the YKO abolition), or 28.7 euros per quarter.