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Greece introduces debt flagging for electricity defaulters

Greece has introduced a debt flagging system to stop energy tourists from switching electricity suppliers while leaving unpaid bills behind.

Greece introduces debt flagging for electricity defaulters

The Greek Ministry of Environment and Energy has amended the Electricity Supply Code to establish a debt flagging system targeting strategic electricity defaulters. The decision aims to protect paying households and businesses while improving stability across the national power market.

Minister of Environment and Energy Stavros Papastavrou and Deputy Minister Nikos Tsafos signed the decree following agreement from the Regulatory Authority for Waste, Energy and Water and an extensive public consultation process.

The new legal rules will take effect immediately after the ministerial decree is published in the official Government Gazette.

Under the new regulations, power suppliers will be authorized to report delinquent customers to the national grid operator, the Hellenic Electricity Distribution Network Operator.

Consumers who receive three debt flags will be prohibited from changing electricity providers until all outstanding arrears are resolved through full payment or an approved settlement agreement.

How debt flagging works

Unpaid debts owed to electricity suppliers reached approximately 3 billion euros at the end of 2025. A significant portion of this balance stems from energy tourism, a practice where customers move between power companies to avoid settling outstanding bills.

Ministry officials stated that the measures address unfair commercial behavior without infringing on a consumer's fundamental right to switch power suppliers. Until now, households and businesses that paid their utility bills on time carried the financial burden generated by non paying users.

The government designed the regulatory framework in close cooperation with energy suppliers, market regulators, and distribution grid operators to ensure fair cost distribution across the market.

Regulatory institutions and implementation

The Ministry of Environment and Energy formulates energy policy and oversees market regulations across Greece. Official enactment of ministerial decisions occurs upon publication in the Government Gazette, known locally as the FEK.

Market oversight is managed by the Regulatory Authority for Waste, Energy and Water, an independent administrative body that monitors competition in Greece's energy sector. Network operations and meter management are handled by the Hellenic Electricity Distribution Network Operator, known as DEDDIE or HEDNO.

The Electricity Supply Code defines the legal framework for retail electricity sales, billing, and customer switching in Greece. The updated framework is intended to eliminate loopholes while maintaining market fairness for all participants.

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