Unpaid Power Bills: A Burden on Greece's Retail Electricity Market
The Greek retail electricity market is grappling with a significant issue: nearly €3 billion in overdue customer debt. This problem is not just a financial burden for suppliers but also has broader implications for the market's sustainability and the cost of electricity for consumers. The Regulatory Authority for Waste, Energy, and Water (RAAEY) has shed light on this issue, highlighting its impact and potential solutions.
The Scale of the Problem
In 2025, the total overdue debt in the retail electricity market amounted to approximately €2.98 billion. This figure represents a 22% decrease from the previous year, but it still poses a substantial challenge. Low-voltage customers, primarily households and small businesses, account for the largest share of this debt, at around €2.1 billion, or 80% of the total arrears. This indicates that the issue is deeply rooted in the residential and small business sectors.
Households and Businesses: Who Owes What?
Household debt totals €710 million, while commercial, industrial, and other small businesses collectively owe about €819 million. Medium-voltage customers contribute €577 million, and large companies connected to high voltage owe €55 million. The RAAEY report emphasizes the scale of the problem, stating that the total debt approaches €3 billion, which is a critical figure for the market's stability.
The Impact of Old Debts
One concerning aspect is the impact of old debts, especially those linked to customers who switch providers. When a customer moves to another supplier, the unpaid obligations from their previous provider can transfer costs to the new supplier. This phenomenon contributes significantly to the €2.98 billion total, with an estimated €1.53 billion coming from customers who have already left their original suppliers. This makes debt recovery even more challenging.
Cost Implications
The RAAEY estimates that overdue debts add 5.93 euro cents per kilowatt-hour to the overall costs, with 3.04 cents attributed to older debts and 2.89 cents to current arrears. While suppliers dispute this calculation, they agree that the harder-to-collect debt increases costs across the market. This highlights the financial strain on suppliers and the potential for higher electricity prices for consumers who pay their bills on time.
The Universal Service System
Another area of concern is the Universal Service system, where overdue debt reached €421.5 million, or 14.2% of the total market arrears. A significant portion of this debt, €312.8 million, is linked to customers who have changed providers, further emphasizing the challenges of managing and recovering debts in a dynamic market.
Conclusion: A Complex Issue
The Greek retail electricity market's struggle with unpaid power bills is a complex issue with far-reaching implications. It affects not only the financial health of suppliers but also the cost of electricity for consumers. The RAAEY's report highlights the need for a comprehensive approach to address this problem, including strategies for debt recovery and market regulation to ensure the sustainability of the retail electricity sector.
