A Greek proposal for RES-supporting ETMEAR surcharge model adjustments has been delivered to European Commission authorities, including the Directorate General for Energy, the country’s energy minister Giorgos Stathakis has informed industrialists, according to energpress sources.
Details of the adjustments, based on EU directives, include a request for the endorsement of a reduced ETMEAR surcharge for selected industrial sub-sectors, measuring 15 percent of the average surcharge level valid for all consumers.
The ETMEAR surcharge imposed on industrial enterprises is a key matter for energy-intensive producers. Last month, industrialists forwarded a letter to the energy minister warning of the industrial sector’s extreme concerns over energy costs and level of competitiveness. Time is running out, industrialists warned, fearing soaring energy costs.
Lower ETMEAR surcharge costs enjoyed by energy-intensive industries face the danger of being classified as illegal state aid if the adjustment plan is not endorsed in Brussels by January, 2019.
In addition, other support systems for selected industrial enterprises, such as a mechanism offsetting CO2 emission right costs, as well as the demand response mechanism (interruptability) could be blocked, industrialists have warned.
According to the Greek proposal, the ETMEAR surcharge for electro-intensity enterprises, defined as those whose electricity costs exceed 20 percent of gross added value, will be set at a maximum of 0.5 percent of their gross added value. Steel and cement producers may utilize this term as an energy-cost relief measure.
Energy-intensive enterprises whose electricity costs are less than 20 percent of their gross added value will be responsible for ETMEAR costs of no more than 4 percent of their gross added value, according to the adjusted terms. Few enterprises are expected to qualify for this category.
A minimum ETMEAR price of 0.3 euros per MWh will be offered for certain sectors such as the steel and aluminium industries, according to the plan.
The adjustments also include favorable terms for other sectors. ETMEAR levels for farmers, hospitals, ministries and public buildings will be set at 50 percent of the average surcharge level. A 30 percent level will be set for tram and railway companies. Lignite mining companies will be charged 20 percent of the ETMEAR average.