ATHENS – A significant decline of electricity prices is expected as of November, according to market estimates, following the reduction of both electricity prices on the energy exchange and international natural gas prices.

These are the nominal prices which – according to the legislation – are announced by the suppliers every month. The final charge to consumers depends on the amount of subsidy announced and implemented by the government. However, the lower each supplier’s nominal price, the lower the customers’ final bill will be. Furthermore, the reduction in nominal prices means that less subsidy will be needed to keep final prices at tolerable levels.

The average price of electricity on the Greek Stock Exchange for October until yesterday was 263.86 euros per megawatt hour. In comparison, in September it was 416.87 euros and in August 436.53 euros. The de-escalation is attributed on the one hand to the increased participation of renewable energy sources in the mix and on the other hand to the reduction of natural gas prices.

Natural gas on the Dutch Stock Exchange closed yesterday at 112.15 euros per megawatt hour in the wake of the EU Commission’s proposals to control the price of fuel. At the peak of the crisis in August, it had reached close to 350 euros.