Greek CAT proposal OK but revisions needed, Brussels tells

The core of an energy ministry proposal for Greece’s new permanent CAT mechanism meets EU directives but a series of revisions, regarded as manageable, will need to be made, energypress sources have informed.

European Commission and energy ministry officials discussed the issue at a meeting in Brussels last week following pre-notification by Athens.

The Greek plan’s fundamentals are based on an already-endorsed Italian model. The revisions called for by the European Commission are expected to bring the energy ministry’s proposal even closer to the Italian version.

According to sources, the changes called for include maximum remuneration levels for respective technologies and auction procedures, as well as details concerning the energy-intensive industrial sector.

The government now faces the challenge of swiftly implementing these revisions ahead of the ratification and launch of the new model, pivotal to the success of the main power utility PPC’s bailout-required disinvestment of lignite units.

The Greek proposal forwarded to Brussels is believed to be technically neutral and based on reliability options for all existing power stations, including lignite-fired units.

The plan proposes remuneration levels of between 30,000 and 40,000 euros per MW, for one year, for existing units. New units would be entitled to between 45,000 and  65,000 euros per MW, depending on the technology, for five to seven years.