April 19, 2024

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Electricity tariffs: new increases coming for consumers – Newsbomb – News

Electricity tariffs: new increases coming for consumers – Newsbomb – News

Electricity and natural gas prices may decline due to the favorable situation in global markets, but according to Kathimerini, consumers will face a heavy burden. New increases in network usage fees, or the so-called regulatory fees common to all service providers. Since last May, charges for using the network operated by DEDDIE have almost doubled, burdening the average household with an additional annual cost of €76. Of the 98 euros he was paying before, it is estimated that he now pays 174 euros.

This amount is expected to increase further as DEDDIE has submitted to the Financial Supervision Authority a request to review its approved annual income for 2024 by €77.5 million. More than 50% of this amount, ie 40 million euros, relates to the cost of the monthly census, a measure announced by Environment and Energy Minister Theodoros Skylakakis in the context of a more comprehensive package of measures to address rheumatism. Thefts, which will come into effect from April. Consumers are essentially being asked to finance DEDDIE's chronic inaction to deal with electricity theft which is estimated to cost €400 million annually.

Additional costs

DEDDIE also requests ERAEF to approve additional costs of €25 million for the network's fire protection areas, €3.5 million for working capital and €9 million for the revenue recovery shortfall approved for 2022. If these costs are combined with the already increased weighted average cost of capital Approved for DEDDIE for the years 2023-2024 (7.66%) is estimated atNetwork usage fees will rise significantly for 2024 and will add to the monthly electricity bills paid by consumers. It should be noted that the Financial Supervision Authority has already approved an annual income for DEDDIE of 981 million euros for the year 2023 and approximately 1 billion euros for the year 2024, while the plenary session of the Authority was expected yesterday to decide on the review request submitted by the program manager. Auditing the reasonableness of costs for both the monthly account and fire protection areas.

Network usage fees

Natural gas consumers are also expected to face significant increases, despite lower fuel prices. Italgas, which controls the medium- and low-voltage natural gas network following the acquisition of DEPA Infrastructure, has proposed network user fee increases of up to 31% in the mature markets of Attica, Thessaloniki and Thessaly and up to 56% in some regions of Italy. The country, to implement its investment program worth 800 million euros in the period 2023-2027.

The company even demanded that the weighted average cost of capital for 2024 be increased to 9.9% from 8.57% in 2023. After a heated dispute with the Italian shareholders of DEPA Infrastructure, ERAEF agreed to a lower rate for 2023, namely 8.3%, which Prevents additional increases. For consumers.

Their goal is to increase profitability

In recent years, the weighted average cost of capital has been a constant dispute between managers and MFRS firms, with the former claiming high ratios aimed at enhancing their profitability. The competent authority must set as a basic criterion for its formation the least possible burden on consumers and ensure the proper implementation of investment programs and the continuity of companies. High investments also mean demanding high average cost of capital, and foreign shareholders controlling Greek power grids (State Grid owns ADMIE, Macquarie owns DEDDIE, Snam consortium owns DESFA, Italgas owns DEPA Infrastructure ) They know that very well. They are planning huge investment programs based on the needs of the energy transition.

In any case, directors' financial statements appear to be in the RAAEF's sights for a review of the weighted average cost of capital (WACC) amount where it has been demonstrated that there are excess returns. The need to control operators, “both at the level of over-planning and at the level of expenditures,” was pointed out by Environment and Energy Minister Theodoros Skylakakis, who after the green tariff is expected to intervene in the collection of network fees.

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