Producers to receive €50m less through temporary CAT plan

Electricity producers will receive a total of 175 million euros, 50 million less than originally planned, through Greece’s transitional CAT mechanism for twelve months of production, RAE, the Regulatory Authority for Energy, has decided, according to energypress sources.

The temporary CAT plan will be applied retroactively, as of early May, 2016. Authorities informed that, next month, suppliers will pay the first of four installments into the system while payments to eligible producers will begin a month later.

The temporary CAT plan will remain valid for a year until May, 2017, but its duration would expire prematurely if the permanent mechanism is prepared prior to this date, a highly unlikely prospect. RAE is currently working on the permanent CAT plan.

The RAE decision to implement the temporary CAT plan ends a series of postponements and delays that has deprived electricity producers of payments throughout 2015 and for the first four months of 2016.

RAE is expected to look into certain bureaucratic details today, the main concern being whether parliamentary procedures, as an addition to the authority’s own endorsement of the temporary CAT plan, will be needed to launch the mechanism.

Government sources said no further delays to the plan’s introduction should be expected. This remains to be seen.

Producers will be paid at a rate of 45,000 euros per MW for the temporary CAT plan’s twelve-month period.

As for the permanent CAT plan, details are being looked into. Its progress is behind schedule. According to the bailout agreement, the European Commission should have received pre-notification of the plan by June. This will not occur any sooner than late next month. Various issues are still pending such as a study by IPTO, the power grid operator, on the system’s flexibility.