Greek Parliament Debates Fixed-Price Power Contracts and a PSO Charge Cut
Electricity bills are climbing again in Greece as winter sets in, and lawmakers are about to change some of the rules that decide what households pay. On Tuesday, November 10, the Greek Parliament opens its plenary debate on a broad energy bill that would force large suppliers to offer fixed-price contracts, halve one regulated charge on household bills and set strict conditions for data centers.
The bill comes from the Ministry of Environment and Energy and carries the formal title "Improving the design of the electricity market." It brings EU Directive 2024/1711 into Greek law. It was filed on October 31, and Parliament's Standing Committee on Production and Trade finished its review on the evening of Monday, November 9. The bill's page on the Hellenic Parliament website now lists it as ready for debate in the full chamber. It needs a plenary vote and publication in the Government Gazette before any of it takes effect.
Fixed-Price Contracts Become a Legal Obligation
For most households, the biggest practical change is in Article 7. Every customer will be able to ask for a fixed-price electricity contract lasting at least one year, and any supplier serving more than 200,000 meters must offer one. During that contract the supplier cannot change the price or terms on its own, and it cannot end the contract early. Before signing, customers must get a short summary of the price and key terms.
The timing matters. Variable "green" tariffs, which follow the wholesale market each month, have jumped since the summer, while fixed "blue" tariffs have held lower. PASOK, the main opposition party, cited figures from the energy regulator RAAEY showing that a home using 400 kWh a month would pay €117.98 for energy on PPC's green tariff in November, compared with €64.19 on the company's cheapest fixed tariff. The party has tabled an amendment to make switching easier during the winter of 2026-27 and to require green-tariff bills to show what the customer would have paid on a fixed price. Energy Minister Stavros Papastavrou counters that Greek power prices are still about 15% below the EU average, according to Eurostat.
What the PSO Charge Cut Is Worth
Article 57 halves the public service obligation (PSO) charge, known in Greek as YKO, for the first consumption band of every household. This regulated line on every bill helps pay for power on islands not yet connected to the mainland grid. From January 1, 2027, the charge for the first 1,600 kWh in each four-month period would fall from €6.90 to €3.45 per megawatt hour.
The saving is real but small. A household using the full 1,600 kWh over four months would pay €5.52 less before VAT, or about €16.50 a year. The higher bands stay where they are, at €50 per MWh for consumption between 1,601 and 2,000 kWh and €85 per MWh above that, with lower night rates. The cut applies automatically, so no one needs to change supplier or tariff to get it. The government links it to savings from new undersea links between the islands and the mainland.
Protection From Disconnection and Supplier Rules
The bill also adds a safeguard for customers who dispute a bill. While a complaint or an out-of-court dispute with the supplier is pending, the power cannot be cut off, for up to two complaints lasting up to 90 days each. Today, consumers usually need a court order for that.
Customers who end up with the Supplier of Last Resort, the safety net used when a supplier fails or a contract ends without a new one, will be able to stay there for at least six months instead of three. Suppliers will also have to hedge against wholesale price swings and pass stress tests, so that their own risk is not simply passed on to customers.
€2.3 Billion for the Islands and Strict Rules for Data Centers
A large part of the bill sets up the management of the Islands Decarbonization Fund, which the government says has €2.3 billion to spend. It is funded by auctioning up to 25 million EU emission allowances set aside for Greece. It can cover up to 60% of the cost of eligible projects in four areas: renewable energy and storage, grid interconnections, multipurpose dams and charging points for electric vehicles. The aim is to cut the islands' reliance on oil-fired power plants.
Data centers face some of the toughest terms in the bill. Investors must pay the full cost of their grid connection, post a bank guarantee of €200,000 per megawatt, and cover at least 60% of their yearly consumption from new renewable plants that must be running by the time the data center is switched on. Each operator will pay €15,000 per megawatt every year to the host municipality and local households, and RAAEY will keep a public register of all data centers. PASOK says the framework still falls short and wants minimum distances from homes.
Other Changes in the Bill
For owners of small rooftop solar systems of up to 10.8 kW, surplus power fed into the grid during hours of negative wholesale prices will be valued at zero, so they are not charged for it. The bill also clears the way for an expansion of the Georgios Karaiskakis Stadium in Piraeus from about 33,500 to 52,000 seats under a 49-year concession, and for the relocation of the flood-hit village of Metamorfosi near Palamas, home to 324 permanent residents.
Who Is Affected and What Comes Next
The consumer rules apply to every electricity account in Greece, which includes people who live abroad but keep a family house or holiday home there. They will see the PSO cut on their bills from 2027 like everyone else and can ask their supplier for a fixed-price contract once the law is in force.
With the government holding a majority, the bill is expected to pass. The real test for households will be whether fixed-price offers stay meaningfully cheaper than variable tariffs as wholesale prices move through the winter.
Photo: Electricity meters in Kos town by Asurnipal, CC BY-SA 4.0, via Wikimedia Commons
