Greece Introduces New Orange Electricity Tariff

Greece Introduces New "Orange" Electricity Tariff, to be Implemented in Stages Starting in 2026, Covering Over 1.3 Million Users

 

Greece's new "orange" electricity tariff scheme has officially entered the market, bringing significant changes to the retail energy market. This scheme, for the first time, allows electricity prices to fluctuate based on actual hourly wholesale prices, opening up savings opportunities for consumers who can shift or concentrate their electricity consumption during periods of the lowest daily prices. The activation of this new dynamic pricing category has been finalized through a relevant ministerial decision and will be available to large customers from February 1, 2026, and extended to households and small businesses from April 1, 2026.

 

 

The main prerequisite for the implementation of the orange tariff scheme is the smart metering system of the Greek distribution network operator, which provides certified hourly electricity metering. Latest data shows that over 1 million low-voltage users have already installed such meters, while medium-voltage users are fully covered. Currently, users with smart meters account for approximately 50% of the total national electricity consumption. Therefore, the introduction of the orange tariff will have a significant impact on most consumers.

 

In actual billing, orange tariff users will be charged based on the hourly wholesale electricity price plus a reasonable markup from the supplier. This mechanism is particularly valuable in power systems with a high proportion of renewable energy. Peak solar power generation periods typically push wholesale prices to their lowest daily levels, so users who can shift their electricity consumption to these periods can benefit from lower electricity bills. For example, a commercial customer whose electricity consumption is approximately 65% ​​between 8:00 and 17:00 could see their wholesale cost reduced to 98 euros/MWh, a saving of at least 10% compared to 108.6 euros/MWh. Similarly, an industrial customer with 80% of their consumption during this period could achieve a cost of 89 euros/MWh, a saving of up to 18% compared to the average price during the same period. This type of consumption pattern is applicable to small manufacturing, construction, office, and service businesses with fixed daytime work schedules. For small customers, the new scheme introduces enhanced protection mechanisms, including detailed price notifications, transparent billing, and the obligation for suppliers to publish electricity prices. One key measure is that suppliers must publish the hourly electricity prices for the following day before 17:00 each day, allowing users to plan ahead. If the final supply price for any hour is expected to exceed €180/MWh, suppliers must send a warning via SMS or Viber. Equally important, the scheme will not allow for early termination clauses, allowing users to try the orange tariff without worrying about penalties if it doesn't suit their lifestyle or operations.

 

The current challenge lies in the pace of smart meter deployment. Although the Greek distribution network operator has installed over 1.3 million smart meters, with approximately 50,000 added monthly, aiming to double this to 1.87 million by 2026 and cover all 7.6 million users by 2030, some devices may struggle to provide the core function of real-time data transmission.