Industrial association to meet over price-hike concerns

Latest developments in the electricity market hinting at possible power-rate increases for industrial consumers as a result of added costs that could emerge in the wholesale sector have prompted an Association of Industrial Energy Consumers (EVIKEN) meeting for tomorrow.

A decision by RAE, the Regulatory Authority for Energy, to launch public consultation procedures for alternative proposals to a Variable Cost Recovery Mechanism – locally acronymed as MAMK – will be one of the main topics on the EVIKEN meeting’s agenda.

Industrial consumers fear that new conditions may prompt PPC, the Public Power Corporation, to revise upwards existing pricing agreements. Any price hike would run contrary to industrial sector expectations of rate decreases by PPC, reflecting the considerable fall in petrol and natural gas price levels and various other favorable wholesale market developments from which the power utility’s operating expenses have benefited.

Some fifty medium-voltage industrial consumers, seemingly the industrial sector’s hardest hit, have requested rate reductions from PPC. Their cases remain pending.

According to a recent study conducted by Alpha Finance, a member of the Alpha Bank group, PPC is anticipating additional profit of about 580 million euros as a result of various expense reductions, including recent regulatory revisions in the electricity market as well as lower petrol and natural gas prices.

Amid its rising concerns, EVIKEN will decide on its future stance at tomorrow’s meeting. The industrial association also plans to hold a follow-up meeting with the newly appointed Production Reconstruction, Environment and Energy Ministy’s leadership within the next few days.