Questions and answers from the Ministry of Foreign Affairs

Questions and answers from the Ministry of Foreign Affairs
Questions and answers from the Ministry of Foreign Affairs

NOVEMBER 7, 2023

For the reduction of energy costs and the orderly operation of the retail electricity market the Ministry of Environment and Energy takes the following seven measures:

New low voltage electricity tariffs

The new electricity tariffs promote transparent and simplified information, for the benefit of consumers, about suppliers’ prices. For the first time, every consumer will know what he is paying the electricity supplier and why. The green tariff is established, which is a special tariff common to all suppliers. Its main advantage is that it facilitates the comparison of prices between suppliers, thus enabling the consumer to make the most advantageous choice.

Emergency assistance to the energy vulnerable based on heating needs for electricity

The range of emergency aid, to energy vulnerable consumers who heat with electricity, will range from 45 euros to 480 euros. It is estimated that 1.2 million consumers will benefit from the measure. The aid will be granted based on the income and property criteria, which apply to the oil, natural gas and other sources heating allowance, while those who receive the above heating allowance, as well as those included in the Social Household Tariff ( CTO), which will continue to be strengthened. Those interested will submit their applications through the AADE online platform “myThermansi” (!/home).

The subsidy of the social tariff continues

In 2024, targeted subsidies will continue on the electricity bills of Social Household Tariff beneficiaries.

Social electricity tariff for large families

The KOT C social tariff applies to those with many children and in this context, expanded income criteria for inclusion are foreseen, while property criteria will not be taken into account. Beneficiaries will be included in the social tariff (KOT C), through the electronic platform IDIKA, by submitting a relevant application.

Rheumatoid arthritis treatment

Electricity theft amounts to approximately 4.8% of the total energy market. With the aim of reducing and, if possible, eliminating them, the present framework is being tightened. More specifically, the following are foreseen:

A) In addition to the existing prison sentences, there will be a parallel mandatory imposition of a monetary penalty (today the two penalties are imposed separately).
B) Temporary suspension of the operation of the business and permanent in case of recurrence and removal, temporary or final, of the professional license of electricians in case of proven synergy (disciplinary measures).
C) New Installer Responsible Declaration (YDE) ​​for a change of company operator in the same supply and Sampling control of the YDE with the register of electrician installers (precautionary measures).
D) Collection – through the Public Revenue Collection Code (KEDE) – of the overdue and adjudicated claims of the DEDDIE, related to electricity theft.

Dealing with strategic defaulters

The concept of strategic defaulter is established. In particular, a strategic defaulter means a consumer who has made a systematic change of at least two suppliers within five years and starting on 1.1.2020, without repaying or settling their debts. Strategic defaulters will not be able to switch suppliers without repaying or settling their debts to the current supplier.

Apollo program

“Apollon” is the largest Energy Offset Program in the country. Its aim is, through the installation of RES stations with storage systems, to cover:
a) 90% of the consumption of vulnerable households and
b) 50% of the consumption of Local Government Organizations (OTA A’ and B’, e.g. buildings, pumping stations, street lighting), Municipal Water Supply and Sewerage Companies (DEWA) and Local Water Improvement Organizations/General Water Improvement Organizations (TOEB/GOEB).

All Regions of the country will participate in the Program, where this is technically possible, depending on the development of interconnections.

Answers to some basic questions that arise about the new low voltage electricity tariffs for households and businesses:

Questions – Answers about new tariffs

Why do we have so many electricity bills?

Because suppliers have the right to have as many invoices as they want. Also, because the nature of the electricity purchasing system implemented by the European Union is complex. There is a wholesale market where the price is fluctuating (it changes constantly, per day and hour). There are retail suppliers, who buy wholesale and sell retail, with many different trade policies. Moreover, because the needs and desires of consumers are very different, depending on the profile of each consumer (household, business, energy-intensive consumers, etc.).

What types of invoices are there?

First of all, there are three types of tariffs (fixed, variable and dynamic) and the consumer (be it a household or a business) chooses what he considers to be the most beneficial for him. More specifically:

Fixed are fixed-term invoices, with a fixed billing price for the entire period of the contract.
Fluctuating are the tariffs, which are linked to the wholesale price on the Energy Exchange. These are divided into two main categories: i. by setting a price in advance of the consumption period and ii. with post-fixing of price.
Dynamic, which refers to the possibility of dynamic pricing, with different prices – even during the day – based on market prices. A condition for the selection of these tariffs is the operation of a smart telemetered meter in the supply of consumers.
For the convenience of the consumer, the invoices were associated with a color. In blue the constant, in yellow the fluctuating and in orange the dynamic.

To these invoices we add a special invoice, green in color, whose special feature is that its structure will be simple and common, allowing comparability, for all suppliers. All consumers will switch to this, on January 1, 2024, who will not have chosen – within 2023 – a specific type of tariff for their switch on January 1, 2024. This special tariff, which will be available from each supplier, will be uniform for all suppliers.

Why is this special, green tariff being introduced?

The main advantage of the green tariff is that it facilitates, for the first time, the comparison of prices between suppliers and the transparent and simplified information of consumers about the prices of suppliers. On the 1st of each month, the billing price will be announced on the respective supplier’s website and will be communicated to RAAEF. The consumer will know, at the beginning of the month, what he pays to the electricity supplier for the following month and, most importantly, what prices are offered by all other suppliers.

Will the price within the month change on the green invoice?

No, the consumer will see a price every 1st of the month, which will be “locked in” for the entire month.

Can the consumer choose another tariff than the one he has?

Yes, the consumer has the possibility at any time to choose any offered tariff by signing a new contract with the supplier of his choice. The only exception is fixed tariffs, which by their nature have long-term contracts. The change of supplier or supply invoice, that is, takes place at any time and does not entail the right to compensation of the supplier due to the early departure of the customer, except in cases of termination of a fixed price invoice contract.

Why do we have different colors on the invoices?

To make it easier for the consumer to understand the nature of the many different invoices so that he can better compare invoices between suppliers.

Isn’t this system too “confusing”?

Yes, the European energy system is complex and for the consumer it is logical that there is no time and inclination to deal, constantly, with which supplier to choose. That is why the “green tariff” is introduced, in which, without being particularly involved, he knows the two most fundamental things that interest him: First, what is the price next month and secondly, who is the cheapest next month.

Should I change suppliers every month to find the cheapest one?

You have the right to do so. In green billing, you keep track of which supplier is the cheapest each month, and if you’re not happy one month or after a few months with the suppliers’ prices, you can always switch. It is reasonable for the consumer not to enter the process, because it is a hassle, to change supplier for a difference of 1-2 euros per month. It is also logical that if he sees that someone is systematically expensive, he leaves him and goes to someone who is systematically cheaper.

Why can’t I, who has a fixed blue invoice with a specific supplier, compare prices with other suppliers?

In contrast to the one special (green) invoice per supplier, in the remaining categories of invoices, suppliers can provide more than one invoice in each category, connected, several times, either to services or to other products or to a combination of these. In addition, the amount of the fixed asset can differ significantly by supplier, which reduces the degree of comparability of the energy prices offered. For these reasons, the establishment of the green invoice makes it more direct, easy and transparent to compare the invoices of different suppliers.

Will a price verification and comparison tool be available?

In electricity bills (electronic and printed) and in other messages and e-mails that suppliers will send to consumers, there will now also be a QR code (to be scanned and read via a smart phone) and a link, which will refer to the website publication of the price comparison tool of the Waste, Energy and Water Regulatory Authority (RAAEF). There, consumers will be able to be informed, every month, of the price of their supplier’s special common tariff and compare it with all the tariffs offered.

The article is in Greek

Tags: Questions answers Ministry Foreign Affairs


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