Greek households face 30% hike in power prices for 2012

[Murazor]

Dressed link

Households to pay 30 pct more for power in 2012

Electricity bills will rise by an average rate of 18 to 19 percent next year, with households in particular forced to shoulder a hike of more than 30 percent.

This unprecedented rise is due to the country’s commitment to its international creditors for the upgrade of electricity charges to levels that reflect the real cost of power production.

Next year will see the second stage of that rate adjustment, with the third set to follow in 2013. Next year’s rise in rates will affect all consumers, both domestic and commercial, as the tax hike on fuel has seen the cost of electricity production soar to the extent that any cuts to commercial rates have evaporated.

The process for this adjustment began on Tuesday with the Public Power Corporation submitting its updated cost data to the Regulatory Authority for Energy, according to estimates included in the PPC budget for 2012.

Just a relatively minor detail within a much wider disaster, but for some reason I've found this particularly striking, particularly because of the talk of new taxes for Greek homeowners that will be added to the electricity bill.

[Col. Crackpot]

30% price hikes will seem downright nostalgic to the average Greek after the hyperinflation they'll see if they drop the Euro.

[Questor]

What were the rates before? A 30% increase on a €5 bill is a lot different than a 30% increase on a €500 bill.

[Admiral Drason]

Honestly to me thats not that drastic of an increase considering that my electric bill can swing 30% from month to month depending on how much AC is used.

[Narkis]

What were the rates before? A 30% increase on a €5 bill is a lot different than a 30% increase on a €500 bill.

My last bill, on a 90 square meter house with little to no insulation against the vagaries of summer was 160 euros. It is, admittedly, rather higher than the average though.

[Stark]

If that's per quarter, you guys deserve everything you get.

[Kanastrous]

Are utilities billed on a quarterly basis in Australia (and/or Greece)? US power companies tend to bill residential users by the month.

[Stark]

I couldn't see a timeframe in the article or elsewhere; I was kinda hoping it wasn't 160 Euro a month. My place costs maybe $80 a month, but we don't run much AC.

[Questor]

What were the rates before? A 30% increase on a €5 bill is a lot different than a 30% increase on a €500 bill.

My last bill, on a 90 square meter house with little to no insulation against the vagaries of summer was 160 euros. It is, admittedly, rather higher than the average though.

I've got to agree with Stark, if that's not quarterly, why weren't you already up in arms? My apartment's about 80 square meters (according to the complex) and I pay maybe a quarter of that per month in the summer, and even less in the spring, fall, and winter.

[Murazor]

For whatever this is worth as a reference, a semi-typical power bill in Spain (which is not far removed from Greece in broad socio-economic terms) for a large flat of 160 square meters, shared among five, averages 90-100 euros monthly.

[Stark]

When they say 'reflect the price of power production', does that suggest Greece buys its power from other EU countries?

[TC Pilot]

Wasn't Greece already planning on increasing property taxes via electric bills? Is this the same plan or a second one?

[Murazor]

When they say 'reflect the price of power production', does that suggest Greece buys its power from other EU countries?

Seems like it. Its coal/oil reserves don't cover demand, so they have to import a lot of it.

Wasn't Greece already planning on increasing property taxes via electric bills? Is this the same plan or a second one?

According to my sources, second plan.

[Narkis]

Electric bills are per two months. And yes, this is a second plan. Various taxes already get added to the bill, about 40E of the last one were taxes. This will be a separate hike of the base electricity cost.

Greece doesn't buy power from other EU countries, but we do import some from Bulgaria during peak hours. I could dig up percentages if anyone is interested.

[Stark]

Are Greek power retailers private or government owned?

[Narkis]

Government owned. Until very recently the government held a monopoly on power production. Alternative retailers have sprung up after the EU forced them to change the law, but they haven't really gained much traction yet.

[TC Pilot]

On a related note, I've heard a few pieces of news on the radio that the Greek electric producers basically told the government to fuck off with the initial property tax hikes and they wouldn't do the government's dirty work for it.

[mr friendly guy]

Are utilities billed on a quarterly basis in Australia (and/or Greece)? US power companies tend to bill residential users by the month.

I am Australian, and I am billed every 2 months. Narkis also stated that Greece bills every two months as well.

[Narkis]

On a related note, I've heard a few pieces of news on the radio that the Greek electric producers basically told the government to fuck off with the initial property tax hikes and they wouldn't do the government's dirty work for it.

Yeah, it happened on some places. The government had to threaten to fire them if they didn't "do their job", and in the cases where it didn't work they even had to resort to collection agencies. It was the first documented use of them in Greece, and I even had to explain to some people what these agencies were, and they're used elsewhere.

[His Divine Shadow]

We pay 70 bucks every third month for our 75 square meter apartment in Finland, and thats because prices have risen, used to be below 60€.

I had also heard this was not the first time that a tax was added onto the greek electricity bill.

[Narkis]

We pay 70 bucks every third month for our 75 square meter apartment in Finland, and thats because prices have risen, used to be below 60€.

I had also heard this was not the first time that a tax was added onto the greek electricity bill.

Indeed, the 40E I said were taxes on my bill were preexisting ones. The new taxes apply only to homeowners, and I'm a renter.

[Kanastrous]

Although it seems reasonable to assume that owners will pass the cost along to their renters, in one way or another.

[Narkis]

It seems reasonable, but it doesn't really happen. Most renters I know, including myself, have agreed to a rent reduction with our homeowners. I guess it has something to do with the myriad unrented apartments everywhere, and the new (extra) taxes the government is asking for new leases.

[tim31]

I pay quarterly. During summer it's about $200. The last one, during pre-winter, blew out to nearly $600. The power company(there is only one in Tasmania, and don't they know it) told us to expect a 20-50% cost increase over the next year or so. They've attributed chunk of this to the expected Carbon Tax, even though the power is generated using hydro electricity.

I don't feel too sorry for Greece.