Independent power producers back in loss-incurring territory

The country’s independent electricity producers have fallen back into loss-incurring territory as a result of major delays to the temporary CAT plan covering production in 2015 prompted by former energy minister Panagiotis Lafazanis, who blocked all progress on the compensation mechanism for many months.

It seems like independent electricity producers will now have to deal without any CAT-related payments for output in 2015 as the temporary mechanism appears set to take effect in 2016, without any retroactive payments for output in the previous year.

The European Commission essentially ended up rejecting Greece’s temporary CAT plan for 2015 once the energy ministry’s new leadership managed to submit a proposal.

Last week, Elpedison, owned by ELPE (Hellenic Petroleum), Edison, and the Ellaktor group, reported a loss of 21 million euros for the nine-month period, a 7-million euro loss for the third quarter, and a 29 percent turnover reduction, down to 111 million euros.

Two fellow independent producers, Protergia, a member of the Mytilineos corporate group, and Heron, controlled by Terna and Gas de France Suez, are expected to post similar results next week.

Like Elpedison, Protergia and Heron are forecast to each report losses of over 20 million euros for the nine-month period, as well as third quarter losses. The sector’s other independent producers are also expected to report similar results.