The main power utility PPC will most likely receive a Public Service Compensation (YKO) amount concerning 2012 to 2015 of between 350 million and 400 million euros, which is about half the 735 million euros initially demanded by the utility, a long-running and now almost completed study conducted by RAE (Regulatory Authority for Energy), has determined, energypress sources informed.
PPC, which stands to receive the amount over a five-year period, is expected to legally challenge such a payment decision, meaning the YKO ordeal is unlikely to be resolved any time soon.
RAE’s examination of the matter found that PPC has already received a large proportion of the 735 million euros it has demanded.
Besides seeking to determine the amount owed to PPC, RAE’s study is also striving to make fairer the formula for YKO surcharges paid by households through electricity bills.
At present, a maximum YKO rate is imposed on entire electricity amounts in cases where upper consumption limits are exceeded. RAE plans to restrict this top-rate charge to consumption amounts exceeding the upper limit.
Based on the current formula, for example, consmers who use 2,200 KWh of electricity during any four-month billion period are charged YKO on the entire amount rather than separate rates for the first 2,000 KWh and the exceess 200 KWh amount.
Revisons to the current formula will lead to YKO account shortages. The rate imposed on consumption levels of either less than 2,000 KWh of over 3,000 KWh will need to be increased to offset this anticipated shortage. RAE has yet to resolve this issue. The authority will push for a solution within the current week.
The YKO surcharge is paid by consumers through electricity bills, primarily to subsidize high-cost electricity production on Greece’s non-interconnected islands.