Power suppliers in Greece expanding to energy upgrades with rollout of on-bill financing

A new framework in Greece would enable power suppliers to participate in the energy efficiency market.

So far, installers and individual technical offices were the ones who made most of the energy upgrades in buildings. These include insulation, heat pumps, solar thermal systems, photovoltaic rooftops and window and door frames in households and businesses.

Recently, the Regulatory Authority for Energy, Waste and Water (RAEWW or RAAEY) presented its proposal to introduce on-bill financing. Based on this system, the supplier pays upfront for the upgrade, while the consumer gradually returns the owed money through the monthly bill.

This is based on an agreement between them, separate from the power contract. For clarity, the amount owed for the energy upgrade will appear on the bill individually from other charges, such as the cost of power or network surcharges.

Different scenarios under examination

Various details still need to be ironed out, such as what happens if someone rents a house. The suppliers said the contract needs to be signed between all three parties: the company, the owner and the tenant, to avoid problems. Also, it is tied to the electric meter of each house or office, therefore any remaining arrears are carried over to the next tenant or owner even in the case of choosing a different power company.

Furthermore, the suppliers asked to extend their activities to issuing energy efficiency certificates, as well as inspections. The regulator’s finalized decree would specify all these issues when it is published in the following weeks or months.

Efficiency sector opposes the idea

Companies in the energy efficiency sector expressed their opposition to the concept of on-bill financing. They claim that power suppliers have much greater means and economies of scale, leading to a de facto exclusion of existing market players.

The current providers asked the regulator for specific limits that will ensure their survival, arguing that otherwise they will be reduced to the role of subcontractors.