Greece to Collaborate with Romania and Bulgaria to Counter Surge in Electricity Prices

Greece’s Energy Minister, Theodore Skylakakis, stated on Monday that the unified electricity market in the EU is not functioning for Southeast Europe, adding that Greece will collaborate with Romania and Bulgaria to find a permanent solution to the surge in electricity prices in the region

Greece sources nearly half of its electricity from photovoltaic and wind farms at reduced prices, but like other southern European countries, it faces periodic price hikes during the hot summer months when demand for air conditioning peaks, and the supply of electricity from interconnected countries is limited.

“The power lines are insufficient to transport energy from the Central European market to the Southeast European market. This leads to extreme prices on some days, which is unacceptable,” Theodore Skylakakis said on Monday in an interview with a Greek radio station.

Skylakakis also noted that the targeted model of a unified electricity market in the EU is not working. In this regard, the Greek Prime Minister is expected to send a letter to the European Commission this week.

In a subsequent press release, the Greek Ministry of Energy announced that a joint initiative by the Energy Ministers of Greece, Bulgaria, and Romania is set to be adopted to create “a permanent intervention mechanism whenever extreme prices are recorded due to the isolation of Southeast Europe from the rest of the European energy market.”

The conservative government in Athens extended last month the tax on exceptional profits of energy companies to fund electricity subsidies for consumers struggling with the surge in energy bills. On Sunday, Greek Prime Minister Kyriakos Mitsotakis stated that his government will continue this measure as long as European authorities fail to resolve the issue.