Greece proposes mandatory annual fixed-price electricity contracts

The Greek Ministry of Environment and Energy has introduced a bill for public consultation aimed at reforming the retail electricity market. A central component of the legislation is the requirement for suppliers to offer consumers electricity supply contracts with fixed prices for a minimum duration of one year.

The bill seeks to protect both consumers and suppliers from extreme wholesale price volatility. It introduces a new risk hedging framework for suppliers and paves the way for dynamic tariffs more closely linked to wholesale market prices. Additionally, the proposal includes flexible power connection contracts for new installations in areas with limited grid capacity.

This legislative move incorporates EU Directive 2024/1711 into national law, aiming to modernize the market and ensure that the benefits of renewable energy penetration and grid upgrades are reflected in household and business energy costs. The bill also allows for the transfer of the Greek State's direct participation in DESFA to another state-controlled entity.