Cyclades, Crete links to increase IPTO tariffs as of 2019

A decision on IPTO (power grid operator) electricity transmission and distribution costs for the four-year period covering 2019 to 2022, anticipated towards the end of the year, is expected to lead to related tariff rises as the cost of the Cyclades and small-scale Cretan interconnections will be factored in.

The operator intends to start recovering amounts concerning cost coverage of these projects before the Cyclades interconnection is completed and ahead of work on the small-scale Cretan interconnection.

Public service compensation (YKO) surcharges included on consumer electricity bills to primarily subsidize high-cost electricity production on Greece’s non-interconnected islands will not have yet been reduced once these hikes are implemented.

However, this surcharge, also supporting the Social Residential Tariff (KOT) program offering subsidies for lower-cost electricity to underpriviledged households, will be reduced once the aforementioned interconnections have been completed.

IPTO’s ten-year program, a binding schedule, foresees completion of the small-scale Cretan interconnection, to link the island with the Peloponese, in 2020.

As for the Cyclades, the first phase of the overall proect was inaugurated a few days ago. The second phase is expected to be completed early next year, a third phase is set to be completed at the end of 2020, while work on the fourth phase should soon commence.

The maintenance cost of local power stations on Paros, including stand-by costs to be sustained until the Cyclades interconnection is completed, is one of the factors that will increase IPTO’s transmission costs.

As was reported by energypress yesterday, IPTO’s electricity transmission and distribution costs for 2018, expected to be calculated next week, should lead to a decline of approximately 10 percent for high and medium voltage consumers. Household tariffs are not expected to change while mild hikes are expected for low-voltage electricity used by professionals.