A draft bill including revisions leading to the country’s new renewable energy (RES) support framework was submitted to Greek Parliament last night for discussion at special committees ahead of ratification tomorrow through a fast-track legislative procedure.

In preparing the draft bill, energy ministry officials have striven for new RES sector terms and conditions that will enable as smooth a transition as possible from the old feed-in-tariff system, offering fixed tariff levels, to new feed-in-premiums which will reward RES producers with varying amounts, depending on their RES sub-sector.

The draft bill’s objective is to establish a fair, clear-cut, stable and sustainable institutional framework for the RES sector that will financially support producers through market-based mechanisms and also ensure that consumers are burdened as little as possible by the RES-supporting ETMEAR surcharge included on electricity bills.

Electricity suppliers, beneficiaries of greatly increased profit margins prompted by lower System Marginal Price (SMP) levels, will take on ETMEAR-related costs to be channeled into the deficit-ridden RES spec ial account.

The SMP level, which represents the wholesale price at which suppliers purchase their electricity, has fallen as a result of an increased RES sector contribution to the grid.

The new bill will also obligate RES producers to pay a three percent surcharge, to be imposed on pre-VAT sale prices, to the system operator. A part of this amount may be made available for the RES special account.

Under the new regulations, RES investors will need to provide deposit payments to take part in sector tenders. This amount has been set at 600 euros for 2016.

The draft bill also includes provisions for legal and functional separation of the natural gas market’s supply and distribution sectors.