By means of the Decree, the Government temporarily and under specific conditions, from 1 January 2023 and until 30 June 2023, fixes, through public intervention, below-cost prices for the supply of electricity for micro, small and medium-sized enterprises.

The arrangements are compliant with Articles 12 and 13 of Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices (Official Gazette of the European Union no. 261, of 7 October 2022, p. 1). Article 13 of Regulation 2022/1854/EU provides for the temporary option to set electricity prices below the cost price.

It provides that, by way of derogation from the Union rules on public intervention in price setting, Member States may exceptionally and temporarily set a below-cost price for the supply of electricity when using public intervention for the supply of electricity, provided that certain conditions are met, among which we highlight the condition that the measure covers a limited volume of consumption and maintains the incentive to reduce consumption.

Electricity is charged at a higher and a lower daily tariff rate and, in rare cases, at a single tariff rate. Therefore, this Article sets all three prices and the ratios between them are equal to the average ratio of current market prices. The maximum retail selling price for the quantity of electricity covered by this Decree is:

• 0.21700 EUR/kWh for the higher daily tariff rate;
• 0.15550 EUR/kWh for the lower daily tariff rate;
• 0.19500 EUR/kWh for the single tariff rate.

It is also stipulated that these prices apply only to a limited amount of electricity (90 % of past consumption), thus encouraging consumers to save, as the supplier is obliged to offer the final consumer the electricity exceeding this amount at the market price.

The Regulation enters into force on 1 January 2023 and is valid until 30 June 2023.

Source: Ministry of Infrastructure