SOUTHE EASTERN EUROPE: Greece demands an urgent response from the EU on the subject of the explosion of electricity prices
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The Prime Minister of Greece, Kyriakos Mitsotakis, asked the European Union to respond urgently to the explosion of electricity prices in Central and Eastern Europe, which, according to officials in Athens, is aggravated by Russian attacks on energy infrastructures in Ukraine, reports Reuters.
In a letter sent to the European Commission, and consulted by Reuters, Mitsotakis asked Brussels to set up a regulatory authority at the level of the entire EU bloc, which would have the power to inspect energy markets throughout the European Union, and at the same time urged the Commission to support cross-border infrastructure projects that enable the transfer of electricity between several countries.
Electricity prices in Greece have doubled, from 60 euros for a Megawatt-hour (MWh) in April to 130 euros MWh in August, the letter sent to Brussels states.
“We cannot convincingly explain to our citizens why the price they pay has suddenly increased. This situation is unacceptable from a political point of view”, states the mentioned document.
Mitsotakis blamed the explosion in prices, which also affected other countries such as Romania and Bulgaria, on factors such as high summer temperatures, problems with energy infrastructures and the drying up of hydropower dams due to drought. But he wanted to emphasize that an additional burden was created via Ukraine, which became more and more dependent on electricity imported from other European countries. This after the Russian attacks took out of operation approximately half of the Ukrainian electricity production capacities.
The European Union last year accepted a review of its energy market rules, with the idea of encouraging more fixed-price contracts with electricity producers and protecting consumers from market volatility.
But the price of electricity in Europe, even in countries that have rapidly expanded their renewable energy production capacities, is often linked to the price of energy produced in gas plants, which can expose electricity prices to dramatic fluctuations in the gas market .
The lack of interconnection capacities between countries and blockages in local electricity networks can also lead to price increases.
“The new Commission should take on the task of increasing cross-border capacities,” says Mitsotakis.
According to the bloc’s own estimates, the EU should invest 584 billion euros in the modernization of electricity networks by the end of the decade, with the idea of modernizing infrastructure that is several decades old and ensuring that the energy network can take on a greater amount of energy from renewable sources.
