Discussion of the Environment and Energy Ministry’s bill, entitled “Improving the design of the electricity market – transposing Directive (EU) 2024/1711 of the European Parliament and of the Council of 13 June 2024 amending Directives (EU) 2018/2001 and (EU) 2019/944, and other provisions”, began today in Parliament’s Standing Committee on Production and Trade.
According to the relevant announcement, the bill aims to provide substantial support to households, businesses and local communities in the face of continued pressure from the international energy crisis. It strengthens consumer protection, introduces tougher transparency rules in the electricity market, makes more efficient use of electricity networks, launches major investment programmes on the islands and resolves long-standing planning, spatial planning and environmental issues.
The Minister of Environment and Energy, Stavros Papastavrou, told the committee that “with this bill, we strengthen consumer protection in the electricity market, introduce tougher rules and ensure greater market transparency, make better use of electricity networks and unlock significant investment, particularly on the islands, while resolving a range of long-standing spatial planning, urban planning, environmental and social issues”.
He went on to note that we are experiencing one of the biggest international energy crises, bringing sharp increases in the prices of oil, natural gas and electricity and placing a simultaneous burden on households and businesses. “To address the effects of this crisis, so that no one is left behind, immediate action is needed at both national and European level,” he said, recalling that Greece was the first country to call for coordinated action at European level, as early as last March.
He also recalled that “Prime Minister Kyriakos Mitsotakis has already secured an escape clause for energy, under which the European Commission approved the exclusion of specific Greek energy costs worth €1 billion from the limit on growth in net primary expenditure through 2028”, adding that “our country is the only one – at least for now – to have secured European Commission approval for the special energy clause”.
Mr Papastavrou said Greece had sought greater flexibility so that, under the escape clause, “we can take additional measures to support society”. He also noted that measures to tackle the energy crisis total €1.3 billion, of which €897 million is for emergency action to address energy costs and €541 million is for a permanent increase in support for pensioners and an expansion of the rent refund.
The Minister also referred to Eurostat figures released a few days ago, which show that Greece’s electricity prices are 15% below the European average. “We are the 12th-lowest-priced country out of 27. In purchasing-power terms, we are slightly above the average. Energy prices have risen sharply across Europe,” he said, noting that fixed-rate, blue tariffs, which consumers can switch to, provide a buffer against price rises.
The following are the 20 key points of the bill’s provisions, presented by the Minister of Environment and Energy, Stavros Papastavrou:
- 1. Lower public service charges for all household consumers: The government’s commitment will be fulfilled with a 50% cut in the unit charge for Public Service Obligations in the first consumption band, thanks to the gradual connection of the islands to the mainland system.
- 2. €2.3 billion in investment on the Greek islands: The Islands Decarbonisation Fund will be activated to finance renewable energy, storage, electricity interconnection, network, charging infrastructure and dam projects, reducing dependence on oil.
- 3. Security and predictability in electricity prices: Large suppliers will be required to offer fixed-price contracts lasting at least one year, with no unilateral changes to prices or terms during the contract period.
- 4. Stronger protection from suppliers: Automatic protection from disconnection will apply while disputes are being resolved, replacing the court process provided for under current rules, for up to two complaints lasting up to 90 days each. The period consumers can remain with the Supplier of Last Resort will also be extended from three months to six months, and the powers of RAAEY will be strengthened.
- 5. Risk-hedging strategies: Electricity suppliers will be required to have risk-management mechanisms and undergo stress tests against sharp fluctuations in the wholesale market.
- 6. Sharing clean energy: Households, small and medium-sized enterprises and public bodies will be able to share energy they generate themselves from renewable sources, taking an active part in the market.
- 7. Transparent access to the electricity grid: IPTO and HEDNO will publish quarterly information on the availability of new connections, while applications will be processed exclusively online.
- 8. Flexible grid connections: Flexible connections will be introduced in areas with limited available capacity, allowing mature projects to proceed without waiting for network upgrade works to be completed.
- 9. Facilitating municipal clean-energy projects: Local authorities will be exempt from fees for submitting renewable energy applications to RAAEY and the network operators, as well as from the Space Reservation Fee, and will also receive deadline extensions.
- 10. Support for professional farmers: Professional farmers will once again be able to submit the required declaration for 2025, ensuring higher compensation for the renewable energy projects they operate.
- 11. Protecting household self-generators from negative prices: For small household solar installations of up to 10.8 kW, the compensation price for surplus generation during periods of negative wholesale prices will be deemed to be zero.
- 12. A strict framework for data centres: Requirements will include covering connection costs, sourcing 60% of annual consumption from renewable energy, providing a €200,000-per-MW bank guarantee, creating a register at RAAEY, and delivering an annual benefit of €15,000 per MW to municipalities and local consumers.
- 13. Safety of private renewable energy networks: Annual technical reports, inspections by HEDNO and penalties will be introduced, with overhead routes permitted only where an underground solution is technically impossible.
- 14. Accelerating energy storage: Procedures for storage facilities will be simplified, and the assessment of investment applications for 7,771.78 MW of capacity will be completed, helping to make greater use of low-cost green energy.
- 15. Relocation of the settlement of Metamorfosi Palama: The safe relocation of its 324 permanent residents to a suitable nearby area south of Palamas is being set in motion to protect them from repeated flooding.
- 16. Comprehensive protection for the Thermaic Gulf: The marine area between the Natura 2000 sites will come under the jurisdiction of OFYPEKA, treating the Gulf as a single ecological unit in order to prevent pollution.
- 17. Care home for older people in Tanagra: A designated site at “Ntamari” in Dilesi will be allocated for the construction of a modern care facility, as part of the charitable activities of the Holy Archdiocese of Athens.
- 18. A lasting solution for the huts in the Evros Delta: The suspension of penalties for the 168 huts used by fishermen and hunters will be extended until the presidential decree for the Natura areas is issued, bringing an end to successive annual extensions.
- 19. Upgrading the “G. Karaiskakis” stadium: The plans provide for upgrades to meet modern international standards, an increase in capacity from an indicative 33,500 to 52,000 seats, 1,800 parking spaces, a lower building coefficient, a guarantee that 65% of the site will be used exclusively for sports, and a 49-year management concession.
- 20. Amendments to the Spatial Planning and Urban Planning Code: It is clarified that the changes are limited to correcting typographical errors and article numbering in the “Nikolaos Tagaras” and do not introduce new provisions.
Discussion of the bill will continue tomorrow, Wednesday, 4 November, in Parliament’s Standing Committee on Production and Trade.