RAE public service compensation decision by Monday

RAE (Regulatory Authority for Energy) officials did not reach a final decision at a meeting yesterday on the authority’s proposal for revisions to the country’s Public Service Compensation (YKO) system, a bailout requirement. A decision is expected by Monday, the latest.

As part of the proposal, to be delivered to the energy ministry for endorsement, RAE also needs to deliver a decision on a main power utility PPC request for retroactive YKO returns from 2012 to 2014.

The amount to be endorsed for PPC is expected to end up being between 370 million and 400 million euros, well under the 735 million euros requested by the utility. PPC, which stands to receive the amount over a five-year period, is expected to strongly challenge such a payment decision.

Once RAE has forwarded its decision, the energy ministry will then need to make a final decision in autumn in preparation for legislative ratification, based on an agreement with the country’s lenders.

Revisions to the current formula determining YKO payments by consumers through an electricity bill surcharge are also expected, the objective being to offer a fairer overall system.

The YKO surcharge is paid by consumers to primarily subsidize high-cost electricity production on Greece’s non-interconnected islands.

RAE is also working on revisions to the Social Residential Tariff (KOT) program. Approximately 15 percent of households currently eligible for lower-cost electricity through this subsidies program are expected to no longer qualify once the revisions are made.