Greek Prime Minister Kyriakos Mitsotakis has called on the European Union to address the sharp rise in electricity prices and growing market distortions affecting the region. In a letter to EU Commission President Ursula von der Leyen, Mitsotakis highlighted a dramatic increase in wholesale electricity prices in Greece, which have surged from €60/MWh in April to €130/MWh in August.
Despite Greece’s progress in energy transition, including a boost in electricity production from solar and wind sources, these price hikes have raised concerns. Mitsotakis warned that this disconnect between successful energy transition efforts and skyrocketing electricity prices requires urgent policy intervention. He cautioned that if left unaddressed, these issues could harm citizens, undermine competitiveness, and erode support for the EU’s Green Deal.
The Prime Minister noted that similar challenges are affecting other EU member states, including Bulgaria, Croatia, Hungary, and Romania, indicating a regional crisis. Contributing factors include extreme temperatures, low rainfall, and the EU’s support for Ukraine’s electricity needs due to disruptions caused by Russian attacks on its infrastructure. Additionally, the impact has not been uniform across all member states.
To address these issues, Mitsotakis proposed several measures:
- Strengthening regional governance to better coordinate energy decisions among countries.
- Increasing EU regulatory oversight through the establishment of an EU-wide electricity regulator.
- Implementing special provisions to mitigate the effects of Russia’s attacks on Ukraine’s energy infrastructure.
- Renewing efforts to enhance cross-border electricity interconnectors to reduce price disparities and complete the internal market.
In support of these concerns, Greek Minister of Energy Theodoros Skylakakis recently remarked that the EU’s single electricity market is not functioning effectively. He emphasized that Greece would collaborate with Romania and Bulgaria to seek a permanent solution to the high electricity prices affecting the region.
