OSHEE denies rising energy prices for bakeries

After media reports about a possible increase in the price of energy for bakeries, the Electricity Distribution Operator (OSHEE) has reacted to clarify the situation. OSHEE stated that there has been no change in the price of energy for these businesses.

According to OSHEE, the current invoicing scheme for bakeries has been in effect since April and was established based on the agreement with the representatives of these businesses.

- The peak time during which the price for the consumed energy is applied is:

o For the period November 1 - March 31 from 18:00 to 22:00

o For the period April 1 - October 31 from 19:00 to 23:00.

Only during peak hours, for private entities, the price is 15% more expensive than the usual price.

The concept of peak energy is an international concept, used throughout Europe and beyond.

The peak hour is the hour when energy consumption is highest and the price of energy in the markets is quite high. Therefore, regulatory entities intervene with such measures to favor the reduction of consumption in these hours.

There is no change from November 1, any move is abusive

OSHEE clarifies that nothing has changed since November 1. ERE's decision on peak energy is applicable from 2016 to all private entities that have smart meters installed (only smart meters are capable of reading consumption according to schedules).

As a result, any price increase by bakery entities is unfair and abusive.

According to data from OSHEE, there are currently around 1600-1700 bakeries registered as such. Regarding the period 2018-2024, the monthly average of bakery entities that are charged with the peak price is as follows:

o For 2018, 11 subjects were charged

o For 2019, 87 subjects were charged

o For 2020, 86 entities have been charged

o For 2021, 95 subjects have been charged

o For the year 2022, 120 entities have been charged

o For the year 2023, 164 entities have been charged

o For the year 2024, 194 entities have been charged.

- So the peak hour energy price has been applied to bakeries since 2016 and there have never been any complaints about this fee.

Electricity tariff scheme for bread producers

Since April 2024, the new tariffs for bakeries have entered into force. The concept of peak hours is also applicable to these rates.

OSHEE clarifies that in close cooperation with the Association of Bread, Pastry and Pastry Manufacturers, with the aim of fair and non-discriminatory application of electricity prices for bakery ovens, they proposed new prices for bakery ovens in ERE.

These prices reflected the concrete situation of the business of bakeries, which already carry out combined activities, such as patisserie, coffee bar, etc.

The categories approved by ERE in April 2024 are as follows:

● Category I – Only bakery/flour production, The selling price of electricity is 7.6 ALL/kWh.

● Category II – Bakery, accompanying flour products, pastry shop, The selling price of electricity is 9.5 ALL/kWh;

● Category III – Bakery, accompanying flour products, patisserie, coffee service (espresso), The selling price of electricity is 12 ALL/kWh.

We clarify that until April 2024 for categories II and III the price has been 14l/kWh, i.e. higher than the current rates approved by ERE.

The price for bakeries has not increased, it is subsidized by the state

OSHEE clarifies that the price of electricity for bakeries and categories of businesses that produce bakery products is subsidized by the state. This price does not reflect any cost of energy and the government subsidizes it as a social measure for the population.

The very close cooperation with interest groups, such as the Association of Bread, Pastry and Dough Producers, has resulted in a fairer charging of subjects and the support of a fair competition between different categories of bakeries.

Regarding the period May-September 2024, the number of bakery entities that are invoiced today is about 1600, divided according to three categories:

● In the Bakery category – 480 subjects

● In the Bakery + Patisserie category – 865 subjects

● In the category Bakery + Patisserie + Coffee Bar – 222 subjects.