Leeway seen for public service compensation surcharge cut

RAE (Regulatory Authority for Energy) calculations indicate leeway exists for a modest reduction to a public service compensation (YKO) surcharge included on electricity bills in addition to a RES-supporting ETMEAR surcharge cut.

Energy ministry officials have embraced the prospect of both these surcharge cuts amid the gradual build-up to next year’s elections. The government’s four-year mandate expires in October, 2019.

RAE has been examining public service compensation (YKO)-related expenditure in 2018, covering electricity subsidies for underprivileged households, multi-member families and power production expenses on non-interconnected islands.

Legislation ratified by the government last year foresees YKO expenditure of between 40 and 85 million euros per year between 2018 and 2022.

Calculations so far suggest an YKO surcharge hike will not be necessary but, on the contrary, can be slightly reduced, energypress sources informed.

In addition, late-night electricity tariff rates were found to be higher than necessary. The energy ministry is examining reducing these tariff rates following parliamentary discussion.