Lenders want full KOT, YKO details for bailout’s 4th review

No pending energy-sector issues stand in the way of the bailout’s third review, now being finalized, but, during the program’s upcoming fourth and final review, the country’s lenders are expected to press for details as a means of preventing a repeat of various energy-sector account deficits, as experienced with the public service compensation (YKO) and Social Residential Tariff (KOT) accounts.

Miscalculations prompted a need for the return of older public service compensation amounts to the main power utility PPC, which had been burdened by these additional costs for years as the fear of political cost had stopped a succession of administrations from making needed adjustments.

According to energypress sources, the lenders have requested, from the Greek government, a full analysis of recent social residential tariff revisions and the impact of these on the public service compensation account.

The government has decided to broaden the coverage of its social residential tariffs,   supporting struggling households with subsidized electricity, to 1.35 million households from a previous total of 680,000.

A small public service compensation account deficit is expected to be produced this year as a result of favorable revisions for consumers. Greek officials argue that public service compensation costs will decline in the near future as a result of the development of the Cyclades and Crete interconnection projects. The lenders want details on these calculations.

Public service compensation surcharges are included on electricity bills to cover elevated electricity generation costs on non-interconnected islands.