Greece's Energy Minister Theodore Skylakakis announced on September 9 that Greece, Romania and Bulgaria are working together to develop a long-term solution to combat soaring electricity prices in Southeast Europe, a ministry statement said. 

The move follows concerns that the current unified EU electricity market is failing to meet the needs of the region.

In a statement, Greece's energy ministry said a joint initiative by the energy ministers of Greece, Bulgaria, and Romania aims to establish "a permanent intervention mechanism whenever extreme prices are recorded, due to the cut-off of Southeastern Europe from the rest of the European energy market”. 

"The following paradox is happening: There are not enough interconnections to transfer power from the Central European market to the Southeast. This has the result of having extreme prices on some days, which cannot be accepted in our opinion and is problematic – in this special case – and the operation of the so-called target model,” Skylakakis told a Greek radio station as reported in the ministry statement.

The Greek prime minister is expected to raise the issue with the European Commission this week, highlighting the need for reforms to ensure a stable and affordable energy supply in the region.

Skylakakis explained that the lack of sufficient interconnections between Southeast and Central Europe has created what he described as an "energy island" in the region.

"It makes no sense to give more money to producers when the issue lies in the lack of interconnection investments,” he added. 

He criticised the current system, noting that network operators, who should be responsible for building new interconnections, are instead benefiting financially from the market distortions.

Greece, which generates nearly half of its energy from solar and wind parks at relatively low prices, has experienced sharp price increases during the summer months when air conditioning demand spikes, and power supplies from interconnected countries are insufficient.

Skylakakis mentioned that he had discussed the issue with Germany's Federal Minister of Economic Affairs and Climate Action Robert Habeck during the 88th Thessaloniki International Fair.