PPC seen receiving 5% interest on planned €360m YKO return

A RAE (Regulatory Authority for Energy) proposal concerning Public Service Compensation (YKO) retroactive returns to the main power utility PPC, reduced to 360 million euros, well under the 735 million euros demanded by the utility, includes 5 percent interest over a five-year period, which could increase the amount PPC stands to receive to over 400 million euros, energypress sources have informed.

The YKO surcharge added to electricity bills is paid by consumers to primarily subsidize high-cost electricity production on Greece’s non-interconnected islands and also support the Social Residential Tariff (KOT) program offering underpriviledged households subsidies for lower-cost electricity. PPC is owed YKO amounts covering 2012 to 2014.

The energy and finance ministry officials, currently engaged in talks concerning the YKO returns to PPC, are examining an extended rebate plan covering a five-year period so as to minimalize the YKO-related impact on electricity bills.

The two ministries are also examining a RAE proposal which would offer household electricity consumers and other low-voltage categories YKO-related relief by returning 50 percent of special consumption tax (EFK) revenues imposed on fuel used by PPC to operate its outdated, high-cost power stations on Greece’s non-interconnected islands to the national budget for YKO-related utilization.

Ministry officials are also looking to provide PPC greater amounts during the five-year payback plan’s latter years in anticipation of progress expected on island interconnection projects concerning the Cyclades and Crete. These interconnections promise to drastically reduce the country’s public service compensation costs.ter years

Household electricity consumers and other low-voltage categories could face tariff increases of between two and three euros per MWh if the RAE proposal concerning the return of half the fuel-related EFK tax revenues to the national budget for YKO utilization is not implemented.