Greek PM Urges EU Action Amid Soaring Power Prices

Greek Prime Minister Kyriakos Mitsotakis has called on the EU to address the rising power prices in Central and Eastern Europe, worsened by Russian attacks on Ukraine's energy infrastructure. Mitsotakis urged for a new EU regulator and support for cross-border energy projects to stabilize prices.

Greek Prime Minister Kyriakos Mitsotakis has issued a call to the European Union for immediate action to tackle skyrocketing power prices in Central and Eastern Europe. Athens attributes the surge partly to Russian military actions against Ukraine's energy systems.

In a letter reviewed by Reuters, Mitsotakis recommended the establishment of an EU-wide regulator with the authority to oversee energy markets across the bloc. He also promoted the enhancement of cross-border infrastructure projects to facilitate energy transfer between nations. According to the letter, Greece's power prices surged from 60 euros per megawatt-hour in April to 130 euros in August.

"We cannot explain convincingly to our citizens why the price they pay is rising so suddenly. This is politically unacceptable," Mitsotakis stated, citing additional factors like extreme temperatures, energy infrastructure disruptions, and reduced hydropower capacities due to climate change. He echoed concerns raised by Ukrainian officials that Russian attacks have compromised half of Ukraine's power generation capabilities this year.

The EU has already updated its power market regulations to encourage more fixed-price contracts and mitigate market volatility. However, European power prices often remain linked to gas-powered plants, vulnerable to fuel market swings. Mitsotakis emphasized the need for the Commission to prioritize expanding cross-border grid capacity, projecting the bloc will require a 584-billion-euro investment to update its power infrastructure this decade.

The Financial Times initially reported Mitsotakis' letter.

(With inputs from agencies.)