Energy costs put a "handbrake" on the recovery
There is no end to the price rally in the European wholesale electricity price, which is now creating major obstacles in the course of the economic recovery.
The price that the Greek economy has to pay is high due to the rising prices of energy prices. It is characteristic that based on what the executives of the financial staff report, who compare the imports of energy products with the exports, only for 2021, when the energy crisis concerns only the last months, the account for the economy has exceeded 1 billion. and, based on what, also, market executives report, to exceed 3 billion euros for the coming year, if there is no drastic de-escalation of prices.
The screenings
It is noteworthy that last week the contract prices in the Dutch benchmark TTF closed for deliveries in January 2022 and February with an increase of + 12.5% to 130.68 euros / MWh and 130.5 euros respectively.
Overall, unpredictable developments on the gas price front are factors of the energy market, emphasizing that the price rally so far in December is expected to significantly increase electricity generation costs next month in January 2022, affecting the overall recovery.
New mechanism
However, as the Minister of Finance, Christos Staikouras, speaking to SKAI and the show "Unmatched" last week, there is a serious problem with the cost of energy worldwide and it is even sharper than the initial estimates, however he noted that it is temporary and the second quarter of 2022 will begin to de-escalate. In fact, he did not rule out the possibility that inflation in December would exceed 5%.
"The Greek state must find ways to increase its aid to the citizens in the near future. We are trying to see in cooperation with the Ministry of Environment what next moves we will make in December and 2022 to cover even more the problem of energy costs. When the situation escalates, we need to change goals and help more. "We are planning a network of interventions to help comprehensive and coherent households and businesses for the twin crises (health and energy) they are facing", said Mr. Staikouras.
Against this background, based on government sources, a permanent support mechanism is being prepared to protect households from energy crises. Of course, the whole exercise for its creation is still in full swing. However, based on what is reported, an algorithm will be used, which will take into account the price trend in the wholesale market, the available amount from the resources of the Transition Fund account or other sources. income or other criteria and will lead to the absorption of part of the increases in the retail accounts of those deemed beneficiaries. In fact, as mentioned, it will be activated automatically when the prices exceed a set limit.
