Greece Unveils Plan to Split Surging Gas Costs From Power Prices
- Natgas has outsized influence on Europe’s electricity market
- Greece seeks to price fossil fuel-generation separately
A wind turbine above the village of Petries, near Agii Apostoli, Greece.
Photographer: Aris Messinis/AFP/Getty Images
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Greece has laid out proposals to reduce the influence of surging natural gas costs on electricity prices.
Benchmark European gas prices have soared fivefold in the past year, pushing up the cost of power and prompting governments across Europe to look at reforming so-called marginal pricing. That’s where the most expensive megawatt needed to meet demand, currently from natural gas, sets the power cost for all generation.