Wednesday, April 6, 2022

Why Do Greek Electricity Rates Soar ?

Fact:  Not many people know what is happening with the electricity rates in Greece, because it is extremely complicated to understand. 

So here is a step by step explanation:

1.      (View as pdf)
As we read in the first article :
The final price of electricity is set on a kind of pan-European energy exchange and the price is determined daily by the most expensive megawatt price on the market.
So the price of electricity is not real, but a stock market product. Consumers do not pay for the electricity they consume but for a gambling product.
Besides when there is crisis like now the prices go up rapidly.
But the providers, which are usually new companies, have locked the purchase price of electricity and thus create huge profits. It is like the providers exploit the people thus creating rich company owners that did not exist until yesterday.

As this is happening all over Europe, it is very hard for the people of the weakest economies of the North like Greece Spain and Portugal.

2.    (View as pdf)

Spain and Portugal achieved an exception and a ceiling on electricity prices.
They succeeded in getting rid of the irrationality in order to protect their people
In the meantime the Greek PM achieved nothing.

3.   (View as pdf)
As the Greek PM achieved nothing in reducing the electricity rate (which is controlled in a pan-European basis and does not bother the rich economies of the North) now he says he will tax the super-profits of energy companies.
I doubt that this sounds as a fair solution to the Greek people.