The unpaid electricity bills amount to around EUR 3 billion. Over half of the debts left by outstanding electricity bills, i.e. 1.525 billion euros, belong to old customers of electricity companies.
The latter engage in so-called «energy tourism» and exploiting gaps in the Power Supply Code are moved from provider to provider in order to avoid repayment of their debts.
Blocks on strategic power failures
The acute problem left by unpaid electricity bills is borne by consistent consumers by paying nearly EUR 0.06 per kilowatt hour at the charging price. And competition is malfunctioning in retail power.
The Ministry of Environment and Energy, as it announced, proceeds to amend the Electricity Supply Code, with the aim of effectively addressing the phenomenon of strategic underpayers, protecting consistent consumers and strengthening the proper functioning of the electricity market.
The decision was signed today 20 August by the Minister of Environment and Energy, Stavros Papastavrou and the Deputy Minister, Nikos Tsafos, following the agreement of the Waste, Energy and Water Regulatory Authority (RAAEE) and extensive public consultation.
The Ministry of Environment and Energy, in close cooperation with RAAEF, HEDNO and electricity suppliers, has elaborated a new, balanced framework that effectively tackles abusive practices, without disproportionately affecting the right to change supplier. A framework which now protects consistent consumers, who have to date been burdened with the costs caused by strategic underpayers and so-called «Energy tourists».
The Debt Flagging System
The new regulation introduces for the first time a system for marking dues (debt flagging), through which suppliers will be able to point out to the HEDNO, consumers with due due dues. With the completion of 3 labels, the consumer will not be able to change supplier until his debts are settled, with payment or settlement.
In simpler words, if a strategic bad-payer who has changed providers by exploiting the gap in the box is pointed out to the HEDNO by three power suppliers as inconsistent then no other provider will be able to change. He must proceed to repay his old debts. These will have retroactive effect from 2024.
It should be noted that despite the proposal by the providers to introduce and the possibility for the old provider to interrupt the provision of electricity to its former client, however, the Ministry of Environment and Energy has not proceeded to adopt the request.
The new framework to be implemented immediately after the publication of the Ministerial Decision in the FVO is expected to contribute to the reduction of overdue debts and liabilities in the electricity market, gradually leading to a fairer distribution of costs borne by households and businesses.
