Structural changes made to the renewable energy (RES) special account, including a financing revision that will require electricity suppliers to contribute new amounts for coverage of the account’s deficit, will burden PPC, the main power utility, by 34 million euros in 2016, energy minister Panos Sourletis told a parliamentary production and trade committee yesterday.
Authorities were discussing a draft bill leading to the country’s new RES support framework, scheduled to be debated and ratified in parliament tomorrow through a fast-track legislative procedure.
Based on the energy minister’s evaluation, it can be estimated that the measure will cost electricity suppliers an overall amount of approximately 300 million euros in 2018, when the surcharge-linked revision is fully implemented.
Speaking at the parliamentary production and trade committee yesterday, PPC’s deputy chief, Giorgos Andriotis, expressed deep concern. He warned that the utility will be forced to pass on the measure’s additional costs to consumers if other supplementary measures are not taken.
The figures confirm previous energypress reports that had estimated the System Marginal Price (SMP) fell by six euros per MWh as a result of higher RES sector contribution to the grid. The SMP will be factored into calculations determining amounts to be paid by electricity suppliers into the RES special account.
For 2016, electricity suppliers will need to pay 50 percent of their respective total amounts to result from the measure. This percentage will be raised to 75 percent for 2017 and 100 percent for 2018.
The 34-million euro cost for PPC, mentioned yesterday by Skourletis, concerns the current year’s final quarter, as the measure, according to the draft bill, will take effect October 1.
Had it been estimated over a 12-month period, the amount, for PPC alone, would have worked out to 136 million euros, taking into account the 50 percent to be paid in the first year. Based on these figures, full implementation of the measure, as of 2018, will cost PPC an annual amount of 272 million euros. Given that PPC holds a 90 percent share of Greece’s retail electricity market, the total amount to be paid by all electricity suppliers in 2018 will reach approximately 300 million euros.
PPC has reacted strongly against the measure, despite its gradual implementation and the prospect of a far smaller contribution by the utility as a result of its bailout-required market share contraction, expected to fall to less than 50 percent by 2020. This decline will decrease PPC’s share of the measure’s cost.