The public service compensation (YKO) special account’s deficit has continued to widen since falling into deficit territory for the first time last April, recording, at the time, a 5 million-euro deficit that has since widened, reaching approximately 200 million euros in September, prompting the need for action.

The energy ministry plans to resort to the Energy Transition Fund for an emergency fund injection into the public service compensation special account in order to ensure its sustainability. Such an initiative action would spare the ministry from having to increase public service compensation surcharges included in electricity bills in order to cover the account’s existing deficit.

The emergency financing measure will be preceded by a relevant new survey from RAAEY, the Regulatory Authority for Waste, Energy and Water, to be delivered to the energy ministry. It will be based on revised calculations to be carried out by distribution network operator DEDDIE/HEDNO, managing the public service compensation special account.

Previous DEDDIE/HEDNO calculations forwarded to RAAEY had projected a 37 million-euro deficit for the public service compensation special account at the end of the year, a figure that will need to be revised, given the latest indications.

Public service compensation is paid by all consumers as electricity bill surcharges in order to help subsidize higher energy costs on the islands and support social policy for low-income households eligible for lower tariffs. Public service compensation payments by consumers are transferred to the public service compensation (YKO) special account.