ENERGY

Extension to adjustment clause freeze

Extension to adjustment clause freeze

The Ministry of Environment and Energy has extended the suspension of the “adjustment clause” in electricity tariffs for one more quarter, until September 30, along with the extension for the same period of the excess revenue recovery mechanism in the wholesale electricity market; since last July to date, this has contributed over 3.25 billion euros to the Energy Transition Fund for subsidizing electricity bills.

Although the European Commission approval of the extension of the two interventions taken in the energy crisis until end-2023 is still pending, Minister Kostas Skrekas overcame the risk of the automatic reinstatement of the readjustment clause upon its expiry on July 2 and on Thursday issued a ministerial decision unilaterally extending them until September.

This way, the difficult negotiation with Brussels for the extension of the readjustment clause suspension is transferred to the new government, since all signs show that the Commission treats the issue with great skepticism, as the ministry is well aware.

Still, Brussels seems ready to approve the extension of the excess profit recovery mechanism in the wholesale market.

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