Energy ministry officials will today present, for the first time, the government’s package of energy-crisis measures to the European Commission’s Directorate-General for Energy.
Brussels’ approval of the package is needed despite the Greek government’s claims that the measures, intended to subdue energy market prices, are within the framework of the European Commission’s RePowerEU plan, also aiming to combat the crisis.
Although details of the Greek package are still in progress, its basics appear to have been finalized.
The day-ahead market, according to the plan, will continue to operate normally, and, as a result, electricity import and export prices will not be impacted. However, the clearing price formula will be revised so that each electricity production technology (lignite, natural gas, hydropower, renewables) is paid for output based on its respective variable cost plus a fair profit, rather than the system marginal price.
According to the plan, electricity suppliers will purchase energy from the domestic market at the lowest prices resulting from the new clearing price formula.
In addition, a wholesale price adjustment clause included in electricity bills will be suspended for the entire duration of emergency measures.
The government wants to avoid characterizing as a tax a plan intended to retroactively collect 90 percent of excess profits earned by electricity producers in recent months. If classified as a retroactive tax, the measure could end up being challenged in court if deemed to be unlawful.
With this danger in mind, the government is presenting its tax plan as a universal fee for solidarity contributions or solidarity dividends.
The government aims to implement its energy-crisis emergency plan by July 1. Swift progress in Athens’ negotiations with Brussels will be needed if this target date is to be achieved.