Delayed network surcharges awaiting next RAE board

Decisions by RAE, the Regulatory Authority for Energy, on pending revisions to network transmission charges and distribution network charges will need to eventually be made.

The revisions, which concern the finances of IPTO, the power grid operator, and HEDNO, the Hellenic Electricity Distribution Network, respectively, should have already been made and come into effect as of January 1, but, instead, are awaiting orders from the recently elected government.

According to energypress sources, data provided by both IPTO and HEDNO suggests hikes to the charges will be necessary. However, the Production Reconstruction, Environment and Energy Ministry has already ruled out the prospect of any hikes that would impact electricity bills.

About one month ago – when the ministry first reacted to RAE’s decision to impose an Emission Reduction Tariff (ETMEAR) surcharge hike levied on electricity bills, as part of the authority’s wider effort to eliminate the renewable energy source (RES) special account deficit – Panagiotis Lafazanis, the Production Reconstruction, Environment and Energy Minister, said he had contacted RAE and requested that it should not proceed with any decisions leading to transmission and distribution network charge increases.

Despite having the authority to do so, RAE’s board, currently lacking a chairman and two board members, does not appear prepared to take any initiaves. Any decisions on the matter will probably be made by RAE’s next board, whose executive powers will be diminished, according to the minister’s intentions.

Network transmission charges have increased by 7.5 percent between 2009 and 2014, while distribution network charges have increased by 13.2 percent over the same period.