The Greek energy ministry plans to terminate an extraordinary levy that was imposed on natural gas used for electricity generation at the beginning of 2024, along with the termination of other measures implemented in the wholesale and electricity markets during the energy crisis, Energypress reports.
A joint ministerial decision issued last spring for subsidy distribution of amounts collected through the extraordinary levy is also set to expire on December 31, 2023.
The joint ministerial decision facilitated the collection of funds through the levy on gas used for electricity production in order to contribute to electricity-bill subsidies offered through the Energy Transition Fund.
The formula for the levy on gas used for electricity production, introduced in November 2022, was revised in May this year and set at 5 percent of the TTF index, replacing a previous fixed charge of 10 euros per MWh.
Though this revision did reduce the cost of the levy imposed on gas used for electricity production, it has continued distorting the domestic wholesale market, market officials have contended.
As a result, the levy has undermined the competitiveness of domestic gas-fueled power plants compared to counterpart units in neighboring countries, thus limiting their operating hours.
The TTF index, a key benchmark for natural gas prices in the European market, ended August at an average of 34.83 euros per MWh for contracts requiring delivery in September.
