Independent electricity suppliers, especially the non-vertically integrated, have expressed strong disapproval of the manner in which the government presented a subsidy plan aiming to offer energy-cost relief to consumers, noting the presentation of the measures offered promotional support to state-controlled power utility PPC, the market’s dominant supplier.
The complaints, which focused on the subsidy plan’s presentation, not the actual measure, were expressed at a meeting yesterday between energy minister Kostas Skrekas and representatives of the country’s electricity suppliers.
During the government’s presentation of subsidies to be offered to counter rising electricity costs – wholesale and retail – pushed up by a combination of unfavorable factors in international markets, attention was also placed on an additional discount to be offered by PPC, to supplement the subsidies.
Independent suppliers perceived this latter detail as inappropriate market intervention by the government and an effort to give PPC a competitive edge over rival suppliers.
At the meeting, the energy minister called upon electricity suppliers to contribute to the energy-cost containment effort by utilizing the subsidy plan and offering discounts. Independent suppliers stressed they are currently operating with the slightest of profit margins.
The subsidies, to offer suppliers 30 euros per MWh, will be distributed by November, the minister informed.
Vertically integrated independent suppliers, which now have a clearer picture on PPC’s latest pricing policy, have already begun shaping strategies of their own, sources informed.