The newly elected conservative New Democracy government will need to decide whether a considerable public service compensation (YKO) return to the power utility PPC for 2011, believed to have been officially set at 195 million euros, will be covered by consumers, through electricity bill surcharges, or the national budget.
Though the PPC administration has questioned the amount set by RAE, the Regulatory Authority for Energy, believing it should be greater, it hopes the payment will be made soon, once Parliament resumes full operations, as the cash injection would offer some relief for the power utility’s struggling finances.
PPC previously demanded a sum of between 650 and 700 million euros for 2011.
A RAE letter forwarded to the energy ministry provided a public service compensation estimate of between 160 and 200 million euros for PPC, but, according to sources, the authority has already calculated a precise amount of 195 million euros, which it believes is fair.
A legislative revision is needed before the payment process can proceed as, based on existing law, the case for PPC’s public service compensation claim concerning 2011 is closed, RAE has informed the energy ministry in a letter.
The previous Syriza government did not submit the required amendment to Greek Parliament.