Hidden increases in electricity coming on May Day

These are the so-called regulatory charges, which are common to all suppliers and unlike the price of kilowatt-hour which happens to fall when the price of gas is on a downward trend, as in recent months, the high regulatory charges are here to stay...

The new «hidden» increases come through the upward adjustment of the network charges collected through the electricity bills of the providers and end up in the coffers of DEDDIE to cover the investments in the network and the annual regulated income of the operator approved by RAE.

In fact, according to the calculations of allazorevma.gr these adjustments will charge the final electricity bill for an average household (with a three-phase power supply 25KVA), by 7.5%, as from the 98 euros charged until today, from May 1 and until the end of 2023 will be charged with 174 euros per year.

This increase is the result of the RAE's revision of the approved annual revenue of the TEN-T from €744 million to €981 million in 2023, an amount that will have to be recovered through electricity bills.
An additional factor that led to increased network charges is the decrease in electricity consumption, as a result of the energy crisis and the inability of households and businesses to cope with high prices.

The network usage tariffs are calculated on the basis of the required revenue and electricity demand.

This means that even if the revenue requirement remained stable, the demand reduction factor alone would lead to increases, let alone that the annual revenue is increased by EUR 231 million.

This increased revenue for the full year will be recovered from the second quarter onwards, meaning that consumers will pay retroactively the adjustments to network charges corresponding to the first quarter of the year.

A third factor that led to large increases in network charges is the new methodology implemented by RAE for the calculation of charges.

Until now, the largest amount of charges corresponded to 80% in energy and 20% in power (single-phase - three-phase).

With the RAE decision that comes into force on May 1st, the power charge is adjusted to 4.434 euros per KVA per year from 0.52 euros today and the energy charge is reduced to 0.01415 euros from 0.0213 euros.

Under the old method the power charge was EUR 1.097 per month and becomes EUR 42 per year which equals about EUR 3.5 per month.

Accordingly, the energy charge of EUR 0,0028 is reduced from EUR 0,0028 to EUR 0,00413.