ENI, Shell on standby for crucial RAE tariff level decisions

ENI and Shell, holders of 49 percent stakes in three EPA gas supply companies covering the wider Athens area, Thesaloniki and Thessaly, are on standby for a RAE (Regulatory Authority for Energy) decision concerning 2017 tariffs submitted for approval about a month ago.

Crucially, Shell, which holds a 49 percent stake in the company serving the wider Athens region, and ENI, holding 49 percent stakes in the Thessaly and Thessaloniki EPA supply companies, are expected to freeze compensation demands from the Greek State, for premature ends to their respective regional monopolies, if RAE approves tariff levels that are deemed satisfactory by Shell and ENI officials.

If the tariff levels approved are not considered satisfactory by Shell and ENI then legal action by the two firms cannot be ruled out.

RAE has already endorsed distribution tariffs and now needs to approve trading tariffs, which will enable Shell and ENI to assess the financial damage caused by the premature ends of ther regional monopolies.

In 2001, Shell and ENI secured trading rights for 30 years in their respective markets. These arrangements were nullified as a result of bailout-required natural gas market reforms.

The recently appointed energy minister Giorgos Stathakis has made clear that the Greek State will not offer any ompensation amounts.

The financial damage suffered by Shell haas been estimated at around 100 million euros, sources said. The company has yet to demand compensation from the Greek State, the same sources informed.

DEPA, the Public Gas Corporation, holds 51 percent stakes in all three EPA gas supply companies.