Industry raises concerns over lignite cost, peak-hour tariffs

Greece’s industrial sector has expressed its concerns to the main power utility PPC over the sharp rise in the cost of lignite, as well as the need for peak-hour tariff adjustments reflecting actual market conditions, according to sources.

As has been noted by industrial sector representatives, the cost of lignite units has increased to 40 euros from levels of between 34 and 35 euros in 2012, when PPC implemented pricing-policy revisions.

The price increase coincided with a reduction of overall lignite production, resulting in an increase in imported amounts. The country’s industrial sector has stressed the production-related problems being encountered at lignite mines and is awaiting a response from PPC’s recently appointed new leadership on how it may go about improving productivity at the mines, the energypress sources noted.

Quite clearly, lower production, combined with a steady level of capital commitment, as is the case with PPC and its lignite output, clearly leads to price increases, the sources noted. Swift action needs to be taken, the sources added.

As in the past, the industrial sector yet again expressed concerns over PPC’s peak-hour tariff policy, noting it no longer corresponds with actual market conditions as a result of the increased production being provided to the grid by the renewable energy source (RES) sector. As a result, morning and midday peak-hour tariffs being charged are no longer relevant as a result of photovoltaic production. PPC is insisting with an outdated peak-hour tariff policy that is hindering industrial activity, the industralists argue, while tariff revisions offering industry new incentives are necessary.