The board at LAGIE, the Electricity Market Operator, has failed to make any progress in its demand for immediate payment of 190 million euros owed by the Greek State to PPC, the Public Power Corporation, which, in turn, would forward an amount to the operator so that it can make payments to renewable energy source (RES) producers.
Finance Minister Gikas Hardouvelis held a meeting with LAGIE president Tasos Garis in response to a recent urgent letter from the operator, but could offer no more than understanding for the cash-flow problem that is, ultimately, placing considerable strain on RES producers.
According to energypress sources, Hardouvelis passed on the issue to his deputy, Hristos Staikouras, who, however, is an elusive figure at present amid the whirlwind of campaigning ahead of the January 25 elections.
PPC has admitted being unable to cover financial obligations as a result of a rising level of overdue unpaid electricity bills, including by the State. The overall amount of overdue unpaid power bills is expected to rise further in January, which increase the burden on the renewable energy sources (RES) special account.
In its letter to the Finance Minister, the LAGIE president warned that it will proceed with its plans for legal action if the required amount is not deposited into the renewable energy sources (RES) special account. LAGIE has noted that the payment is absolutely vital if the RES market is to stand a chance of continuing to function properly.
The level of overdue unpaid power bills owed to PPC rose further in November, exceeding two billion euros, with 1.4 billion euros concerning low-voltage consumption, or household and commercial connections. Data has not yet been made available for December.
Highlighting the problem, the level of overdue unpaid power bills owed to PPC has risen by 40 percent over the past twelve months.
PPC’s debt owed to IPTO, the Independent Power Transmission Operator, exceeded 400 million euros at the end of November, a 20 percent increase compared to the previous month. Of this 400 million euro total, approximately 230 million euros concerns an Emission Reduction Tariff (ETMEAR), which IPTO is required to pass on to LAGIE for payment of RES production.
IPTO’s overdue amount owed to LAGIE reached 290 million euros at the end of November, making it impossible for LAGIE to cover payments to RES producers. At the end of November, LAGIE owed RES producers over 600 million euros, a 15 percent increase compared to the previous month.