Main power utility PPC will not pass on to customers the added operational cost to result from a RES-supporting ETMEAR surcharge revision designed to inject a further 45 million euros into the deficit-ridden RES special account, to be provided by electricity suppliers, utility officials insist.
Though this remains to be seen, PPC officials, contacted by energypress, said the power utility has decided to absorb this extra cost. Choosing not to would be like welcoming rival suppliers to lure more PPC customers away, the officials noted.
As the electricity market’s dominant player with a retail share of 89 percent, PPC will be responsible for covering most of the 45 million-euro amount.
RAE, the Regulatory Authority for Energy, is expected to announce a finalized decision on the ETMEAR surcharge on October 20.
An amendment submitted to parliament yesterday promises to extend the time permitted for the elimination of the RES special account deficit to the end of 2017, rather than mid-2017, as the country’s creditor representatives had originally demanded in the bailout agreement.
The ETMEAR surcharge revision increases the amount to be paid by suppliers to approximately 180 million euros annually, from roughly 135 million euros, up 45 million euros per year.
Taking these figures into account, including the RES special account deficit, currently at a level of nearly 400 million euros, according to energy minister Panos Skourletis, the government will need to raise a further 220 or so million euros to wipe out the deficit by the end of 2017. Greenhouse emission auction revenues could be one way of raking in the required amount.
Electricity demand will play a key role in the amount to be raised by the revised ETMEAR surcharge. A one percent increase in 2017 will ensure the measure’s success, Skourletis told Greek Parliament. Otherwise, if the amount raised ends up being insufficient to wipe out the RES special account deficit, other action, such as a surcharge hike or tariff cuts for RES producers, will need to be considered.