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Greece freezes “adjustment clause” on electricity bills until July 2023

The “adjustment clause” on the electricity bills is frozen until summer 2023, according to an amendment tabled by the Environment & Energy Ministry late on Friday and in the context of a bill for the simplification of the licensing of energy providers.

According to the amendment, the suspension of the adjustment clause will be valid for one year, specifically from August 1, 2022 until July 31, 2023.

It should be noted that the suspension of the application of this clause is a result of the operation of the new intervention mechanism for electricity prices, which as announced will enter into force on 1 July.

Provisions in the amendment are rather complicated to be translated here. It seems, however, that the adjustment clause will be suspended  but in fact any fluctuation within the month is incorporated in the floating price!

The clause will exist, we will just not see it in our electricity bills.

Note that the government had said to suspend the adjustment clause as of July but now the whole project is moved to a month later. This means that the clause will be also in electricity bills that will come in September.

Speaking to media, critics describe the issue as a “pre-election present” as most scenarios speak of snap elections in upcoming October.

Furthermore, the “opposition sources sharply criticize the government for having allowed energy companies to profit from the clause that has been first implemented since 5. August 2021, that is a whole year.

Note that courts is Greece have yet to rule on the legality of the adjustment clause after mass lawsuits by consumer protection organizations and individuals.

The Amandment – Handle with Care!

(Google translation) of the amendment reportedly states, among others:

“For the consumption of electricity from 1 August 2022 to 1 July 2023, there is no charge for an adjustment clause or a corresponding clause, which is associated with the fluctuation of sizes of the wholesale market, whether it is a above clause or for invoices without a separate indication thereof. The period of validity of the first paragraph may be extended by decision of the Minister of Environment and Energy or expire before July 1, 2023, provided that the temporary Next Day Market Revenue Return Mechanism is not maintained in force according to article 12A of law 4425/2016 (A ‘185).

2. Electricity suppliers shall announce on a monthly basis and in a visible place on their website, until the end of the second month (M-2) before the month of application (M), the fixed charges and the electricity supply charges for the strand power and energy applied to the supply tariffs of par. 1.

3. All Customers may choose another type of electricity supply invoice, upon declaration to the supplier or request for supply, if they do not have a valid supply contract.

4. For the application of this and throughout its validity

(a) The change of supplier or supply invoice, as a result of the change of supply charges under the respective announcement of par. 2, is made free of charge for the customers and does not imply a right of compensation of the supplier due to early departure.

(b) Article 30 of the Code of Electricity Supply to Customers (Β ‘832/2013) does not apply regarding the time, the obligation of individual information of the customers and the entry into force of the amendment of the electricity supply contract. Specifically for the first implementation period, the announcement of electricity supply charges is made until 10P July 2022.

(c) The electricity consumption bills, as well as the settlement bills, which are issued after the entry into force of this, reflect in a special field kol with a relevant note the charges of the adjustment clause or corresponding charge according to par. 1, which concern the consumption period. before August 1, 2022.

(d) They are recorded in the consumption bills

(da) in a visible place all the commission charges of par. 2 that have been announced until the issuance of the invoice and

(db) distinct and at a distance of two centimeters from the entry of the final amount payable, with the same size of characters used, color and background, the subsidy provided by resources of the Special Account “Energy Transition Fund” of par. 3 of article sixty-first of Law 4839/2021 (A ‘181).

(e) In each informative message of the Suppliers to their customers, electronic or printed, the subsidy provided from the resources of the Special Account “Energy Transition Fund” of par. 3 of article sixty-first of law 4839/2021 near the final amount payable.

5. The Energy Regulatory Authority (RAE) monitors the implementation of the present, in particular as regards the formation of prices, the conditions of competition and the smooth operation of the markets, as well as the occurrence of abusive practices. If it finds relevant violations, it applies the procedures and imposes the sanctions of article 36 of law 4001/2011 (A ‘179). ” – in Greek here

PS Somehow this amendment and the clause provisions remind me of some prophecies be like “It will exist but it will be as if it doesn’t exist for you will not see it.”….

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