Electricity market players greet support package with relief

The country’s electricity suppliers have welcomed energy-crisis support measures announced by the government late last week with relief as well as some uncertainty, especially concerning an existing wholesale price clause included in electricity bills and whether it will continue to apply or be suspended.

The support package has been embraced by the sector as it promises to offer electricity suppliers cash-flow relief, especially non-vertically integrated companies or energy companies generating limited quantities, through production-cost protection measures and lower electricity purchase costs for energy retailers.

Energy company fears of a rise in unpaid receivables as a result of increased difficulties faced by consumers to service electricity bills have also been appeased by a new round of subsidies included in the government support package.

The energy crisis of the past ten months has resulted in a domino effect spreading debt throughout the entire electricity market, including amounts owed to operators, as energy company have struggled to deliver regulated fees.