A long-standing version of a “disruption management” plan that had been prepared by a pre-Syriza administration and endorsed by the European Commission will be applied virtually unchanged, according to energypress sources. Greek officials appear to have reached an agreement with creditor representatives last Thursday, at an energy ministry meeting.
The “disruption management” plan will enable energy cost savings for major-scale industry in exchange for shifting energy usage to off-peak hours whenever required by IPTO, the power grid operator.
Its implementation promises to offer relief to the industrial sector following its loss of a 20 percent electricity discount offered by PPC, the main power utility. However, the development is a concern for exisiting renewable energy source (RES) investors, who will be expected to cover the measure’s cost.
According to the plan, PV sector producers will need to contribute 3.6 percent of their total turnover to help finance the “disruption management” plan, while wind-energy enterprises must pay 1.8 percent of their revenues. A new wave of reaction is expected from the RES sector.
Although the “disruption management” plan promises to relieve the industrial sector of some electricity cost pressure, it will not suffice to bring electricity costs down to levels resulting from PPC’s 20 percent discount.
Despite the reduction of its operating costs in recent years, PPC has not adjusted consumer tariffs accordingly. CATs and a Variable Cost Recovery Mechanism, locally acroymed MAMK, applied to help cover power station start-up costs, have both been eliminated, and, in addition, fuel costs have fallen drastically.
PPC has also avoided making various other revisions that could serve as additional benefits, for the industrial-sector, to the “disruption management” plan.