‘Disruption management’ plan to be presented next week

The country’s finalized “disruption management” plan, to enable energy cost savings for major-scale industry in exchange for shifting energy usage to off-peak hours whenever required by IPTO, the power grid operator, is essentially ready and, barring unexpected developments, will be delivered by the energy ministry next week.

Energy Minister Panos Skourletis is currently enagaged in final talks with industrial representatives to ensure the delivery of a “disruption management” plan that may offer particular support to export-oriented enterprises employing vast numbers. “We are in contact with EVIKEN (Association of Industrial Energy Consumers) and agree on many issues,” Skourletis declared.

As has been previously reported by energypress, the plan will essentially be based on an older model that had been prepared by the pre-Syriza coalition and endorsed by the European Commission.

The “disruption management” plan promises to offer needed relief to the industrial sector following the abolishment of main power utility PPC’s 20 percent discount offered to the sector, a bailout demand.

On the contrary, the “disruption management” plan is a concern for existing renewable energy source (RES) investors, who will be burdened most by the measure’s cost. The initial plan – already endorsed – includes a term obligating PV producers to contribute 3.6 percent of their total turnover and wind-energy enterprises 1.8 percent to help finance the “disruption management” plan. A new wave of reaction is expected from the RES sector.

Although definitely a step in the right direction for the industrial sector, the plan will not sufficiently reduce energy costs for local producers to levels comparable to those paid by rival producers in other countries, which would help make Greek enterprises more competitive internationally.

PPC’s failure to roll over its recently reduced operating costs to industrial electricity tariffs is a concern for industrialists. CATs and a Variable Cost Recovery Mechanism, locally acroymed MAMK, applied to help cover power station start-up costs, have both been eliminated, and, in addition, fuel costs have fallen drastically.

Besides the “disruption management” plan, the energy ministry is believed to be adding final touches to energy sector prior actions linked to the country’s bailout agreement.

Also, Greek officials are still waiting for a response from lenders on a NOME auction plan submitted several weeks ago. NOME auctions will offer independent wholesalers access to PPC’s low-cost lignite-fired electricity production as a means toward reducing the utility’s market dominance. Lenders are believed to have relaxed their demand on PPC to reduce its retail market share by 25 percent in the short term for greater focus on the 50 percent reduction target by 2020.