Government spokesman Pavlos Marinakis referred on Thursday (14/11) to the increased wholesale electricity prices, assuring citizens that ”citizens will not pay possible wholesale increases in retail”.
As Mr. Marinakis mentioned during the briefing, we must “distinguish wholesale prices from retail prices. In fact, there are days when wholesale prices increase in our country, as in the countries of Southeast Europe as a whole. For that reason, the prime minister is moving at the European level, to correct the distortion that is the result of gross injustice against the poorest countries in Europe without having any responsibility.”
The government spokesman then emphasized the following: “Through a series of interventions, we have managed to keep prices down and consumers are not paying excessive increases for which they are clearly not responsible. We have given over ten billion euros. In the event that such a need arises again, it is understood that the corresponding support will be there… Citizens will not pay possible wholesale increases on retail. And the state will not allow some people to speculate at the expense of consumers… Profit is not criminalized, only speculation. And because we’ve used such tools in the past, you can be sure we will again.”
For the new list of 523 discount codes
“The new updated list of products included so far in the price reduction initiative in supermarkets was announced, following the request of Development Minister Takis Theodorikakos. These are 523 product codes with reduced prices from 5% to 24%. This new initiative will include a total of more than 600 codes” said Mr Marinakis and added: “In fact, the list also shows the date from which each product is included in the initiative, so that consumers can compare do with convenience. prices. The Government supports the citizens against the effects of the inflationary crisis with extraordinary measures, such as a reduction in prices in supermarkets, or the household basket, the pass of the market -in the past-, with permanent measures to increase income, but also continuous controls . in the supply chain and fines in cases of violations”.
For the heating allowance and payment of the first installment
As Mr. Marinakis mentioned, the AADE platform for the 2024-2025 heating allowance was implemented, and “according to the Joint Decision of the Ministry the first installment of 150 million euros corresponding to 55% of the allowance will be paid on December 23 and the 45% will be given another, amounting to 120 million euros, at the end of May after weighing the weather data from the 12,000 points where the country is divided. After the intervention of the Government, this year’s heating allowance is higher for electricity, and the amounts of assistance for those who live in areas with low temperatures are increased to 1,200 from 1,000 euros. Also, this year, the most mountainous areas are being strengthened, because the minimum allowance a family can receive is 100 euros, and the general rule provides for a ceiling of 800 euros”.
Source: reporter.gr
What role does government intervention play in stabilizing electricity prices during market fluctuations?
Interview between Time.news Editor and Energy Policy Expert
Time.news Editor: Thank you for joining us today. There has been much discussion surrounding the recent statements made by government spokesman Pavlos Marinakis regarding wholesale electricity prices. To start, could you explain the difference between wholesale and retail electricity prices?
Energy Policy Expert: Absolutely, and thank you for having me. Wholesale electricity prices are the rates at which electricity is traded between producers and retailers before it gets to the consumer. These prices can fluctuate based on demand, supply, and external factors like geopolitical events. Retail prices, on the other hand, are what consumers actually pay, including the costs incurred by utilities, taxes, and other fees. It’s vital to differentiate these two, especially in discussions about pricing and potential hikes.
Time.news Editor: Mr. Marinakis emphasized that citizens will not bear the burden of possible increases in retail prices caused by wholesale fluctuations. How sustainable is this promise in the current energy market?
Energy Policy Expert: It’s a challenging situation, especially given the volatility in the energy sector globally. While it’s commendable that the government is seeking to protect consumers, this promise hinges on several factors: the government’s ability to intervene, the extent of wholesale price increases, and the adequacy of funds allocated for consumer support. In the past, significant interventions have helped, but determining their effectiveness long-term requires a comprehensive strategy incorporating both immediate relief and sustainable energy policies.
Time.news Editor: You mentioned government intervention. Marinakis stated that the government has already allocated over ten billion euros to keep prices down. How crucial are such fiscal measures in stabilizing energy costs?
Energy Policy Expert: These fiscal measures are critical. They act as a buffer against short-term market volatility. By allocating significant funds, the government is essentially absorbing some of the shocks that would typically impact consumers. However, such responses are often temporary. Continuous market distortions and price spikes could demand even more resources from the state, which raises questions about long-term sustainability.
Time.news Editor: One point made by Mr. Marinakis was concerning speculation in the energy market. How does speculation affect electricity prices, and what measures can governments take to mitigate its impact?
Energy Policy Expert: Speculation can lead to inflated prices, particularly when traders anticipate shortages or surges in demand. This speculation can distort market realities and lead to unjust price hikes for consumers. Governments can mitigate these effects by implementing regulations limiting speculative trading or establishing strategic reserves that help stabilize prices during periods of volatility. Transparency in pricing practices can also help consumers and other stakeholders understand market dynamics better.
Time.news Editor: Lastly, there was mention of a new initiative featuring 523 discount codes on supermarket products, which reflects government engagement in consumer welfare amid these energy discussions. How important is it for governments to combine direct consumer support with energy price interventions?
Energy Policy Expert: It’s crucial. Offering discounts on essential goods can provide immediate relief to households struggling with the cost of living, especially as energy prices impact many aspects of the economy. It’s a multifaceted approach that addresses not just energy costs but overall economic wellbeing. When consumers feel supported across various fronts, it fosters social stability and trust in government measures. Ultimately, a comprehensive approach that combines energy pricing strategies with broader economic support is essential for long-term resilience.
Time.news Editor: Thank you for your insights today. It’s clear that managing energy prices, consumer welfare, and economic stability is a complex but necessary endeavor for governments, especially in challenging times.
Energy Policy Expert: Thank you for the discussion. It’s an important topic, and continued dialogue will be vital in navigating these challenges moving forward.