Unchanged 50% socialization rate for LNG terminal proposed

Gas grid operator DESFA, in a proposal forwarded to RAE, the Regulatory Authority for Energy, has suggested that the socialization cost-coverage percentage at its Revythoussa LNG terminal remain unchanged at the present level of 50 percent over the next four-year regulatory period running from 2024 to 2027.

DESFA delivered its proposal after conducting a cost-benefit analysis whose results showed that the net benefit of the socialization of the Revythoussa LNG terminal just off Athens increases with the utilization of other LNG terminals in Greece.

A greater cost socialization rate for the Revythoussa LNG terminal helps further reduce wholesale gas prices in Greece as the price of LNG, which is the marginal fuel determining the marginal price, is reduced.

On a wider scale, this price reduction enables lower gas supply prices for the Greek market as well as neighboring markets.

DESFA, which last carried out a similar study in 2020, is required to do so every two years based on socialization cost rules for infrastructure set by ACER, Europe’s Agency for the Cooperation of Energy Regulators.