PPC examining possibility of lower electricity rates

The administration at PPC, the Public Power Corporation, is examining the possibility of reducing its electricity rates following appeals made by major consumers who are expecting their bills to be favourably impacted as a result of the continual decline in fuel price levels and positive developments in the wholesale market.

PPC has commissioned an independent consulting firm to evaluate the impact of the aforementioned factors on its operating costs. The results of the study are expected in approximately one month, the intention being to transfer whatever benefits possible to consumers. Medium and high-voltage industrial consumers, however, are not expected to be included in any pricing-policy revisions as these consumer categories are already being offered discounted rates.

Despite the considerable decline in crude oil prices, the subsequent major drop in natural gas prices anticipated within the year’s first quarter, as well as savings of about 150 million euros brought about byvarious changes in the wholesale market, PPC’s administration remains sceptical about the available leeway it has to offer major price reductions for consumers.

PPC officials, as reported by local daily Kathimerini, noted that the additional cost of Public Service Compensation (YKO) for 2012 and 2013, imposed on bills as a surcharge, additional CO2 costs, as well as the higher cost of lignite, must all be taken into account. All this can more or less be interpreted as a prelude for extremely limited price reductions, at best.