A night zone running from 02:00 to 05:00 and a morning zone from 12:00 to 15:00 will be included in the new mixed electricity tariff for the winter period, which will replace the existing "night" tariff.
In the case of the summer season, the respective time zones are adjusted to 02:00-04:00 and 11:00-15:00 attempting to better integrate the change of time as well as habits in energy consumption.
The above refers to the new, hitherto known "night" tariff being developed by the Ministry of Environment and Energy and is part of a series of interventions aimed at better matching energy pricing with the current energy mix, where the penetration of renewable energy sources is significantly higher than in previous years.
It is noted that last Tuesday a new meeting of the political leadership of the Ministry of Environment with representatives from the Greek Association of Energy Suppliers (ESPEN), PPC and DEDDIE was held, where the two time zones were presented without any counter-proposal, while the details and the implementation schedule of the measure were discussed. The concern focuses on the legislative introduction of the measure given that neither the TEN-T nor the suppliers can proceed with the modification of the night tariff without a prior clear mandate.
With the issue of legislation and how to implement it remains open, suppliers, following a request from the Ministry of Environment, will send a relevant proposal, but without, as reported by competent sources, to enter a thorough presentation to determine the hours, as neither is in their competence nor have the necessary data to judge. The problem, according to the same sources, is of a legal nature as there is no specific legal framework for the night-time tariff, with the result that even RAEY cannot intervene with a decision. Any change lies in a decision of the Ministry of Environment.
The benefit of the new tariff
The new mixed tariff orients energy consumption to times during which photovoltaic production ends up exceeding demand, which on the one hand leads to a collapse of prices and on the other hand to significant energy cuts to balance the system.
Shifting consumption during midday hours (peak hours for photovoltaic production) will help to smooth the problem overall by "creating" consumption during the hours when energy is surplus, while enabling consumers to benefit from lower prices in the market. In addition, the shift in demand from more expensive to cheaper zones is expected to have an overall effect on the price formation in the day-ahead market the following day, pushing down the daily average.
The diffusion of demand through the day, even to a certain extent, will reduce pressures during the times when prices currently peak, as happens for example in the afternoon after the "switch-off" of photovoltaic plants, with conventional more expensive gas plants entering the system to meet the increased demand. Indicatively, with the current average price in the DAM (day-ahead market) at €149.67 per Megawatt-hour, the corresponding average prices in the two zones - night and morning - are €100.75/MWh and €111.03/MWh, respectively, about 30% below the average price.
This is a recurring pattern, as shown by a relevant study by DEDDIE, which may contribute to the reduction of household energy costs. It is recalled that the measure concerns 1.7 million meters (dual registration), mostly households that currently use the night tariff and will "pass" to the new system, in addition to 150,000 meters that due to technical specifications cannot apply the new formula and will remain in the old regime, unless the respective consumers proceed to change the equipment.
The timetable
At last Tuesday's meeting, the Ministry made clear its intention to "run" the relevant procedure for the implementation of the bi-zonal tariff, which is expected ideally on 1 February and in any case by March. The "elasticity" of the timetable lies in the preparation that the PPO will have to make to adapt the meters to the new zones. According to sources with knowledge of the discussions, the operator's preparatory work is estimated at 1 to 1.5 months, a period that necessarily "brings us" to February for the start of the new regime.
In any case, the Ministry wants to prevent the month of March when the cuts in "green" electricity production peak, in the context of the seasonality of the phenomenon. By analogy with autumn, the demand for electricity declines with the production and efficiency of photovoltaics peaking, creating a multiple "gap" between supply and demand and therefore excess energy thrown away for balancing and system security.
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