The cost of energy faced by Greece’s industrial sector, well above rates in other parts of Europe, stands as one of the first crucial issues that will need to be dealt with by the newly appointed Production Reconstruction, Environment and Energy Ministry.
Two months ago, while the country’s previous administration was still in power, a decision was reached at a PPC (Public Power Corporation) general shareholders meeting to temporarily maintain industrial rates at levels that had been set in February 2014, until the power corporation’s next shareholders meeting.
Until then, PPC will need to examine and evaluate the magnitude of its cost reductions brought about by the latest market conditions. and apply these to determine its new electricity rates for the industrial sector.
Besides PPC, RAE, the Regulatory Authority for Energy, also needs to play a contributing role by examining and evaluating changes that have taken place in the electricity wholesale market as a means of revising price rates.
However, such an initiative by RAE cannot commence unless it is first given the go-ahead by central authorities. Assuming that RAE will play a role in the final pricing policy decisions – as stipulated by EU law, which requires the existence of powerful independent authorities to supervise markets – the regulatory authority is expected to examine the possibilities for further power rate reductions that will take into account PPC’s reduced costs. This will help the government achieve its objective of lowering energy costs and offering improved conditions for the industrial sector.