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Electricity
08/04/2020
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Crisis-struck electricity suppliers protest RES surcharge extension

Electricity suppliers have expressed concern over a plan announced by DAPEEP, the RES market operator, to continue imposing a RES-supporting surcharge on suppliers throughout 2020.

The extended implementation of this surcharge, whose calculations are based on the average variable costs of thermal stations, is expected to contribute 130.92 million euros into the RES special account.

The projected figure is well over a 96.8 million-euro amount paid by electricity suppliers through this surcharge in 2019.

The original plan entailed eliminating the surcharge immediately following the target model’s launch, scheduled for June 30, but now headed for a delay as a result of the coronavirus pandemic’s wider impact on markets.

The 130.92 million-euro sum expected to be raised by the surcharge in 2020 will be invaluable for the RES special account given the reductions of CO2 emission right prices, electricity demand and wholesale electricity prices.

An end-of-year RES special account deficit of 40 million euros has been projected, including the 130 million-euro surcharge contribution in 2020.

The government is currently battling to establish a security fund as liquidity protection for suppliers, impacted by falling electricity bill collections amid this latest crisis.

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