The Council of State, Greece’s Supreme Administrative Court, has heard cases filed by renewable energy producers, primarily photovoltaic producers, challenging tariff cuts for output of existing facilities as a result of a 2014 law referred to as the new deal, energypress sources have been informed.

In their cases, RES producers are believed to have contended that the RES special account’s deficit, which prompted the tariff reductions, was caused by market distortions that ended up benefiting electricity suppliers. The plaintiffs reportedly contended that suppliers bought renewable energy output at lower prices, and, as a result, contributed to the deficit’s creation.

Market authorities are eagerly awaiting the court’s verdict as any decision that rules the new deal as unconstitutional could destabilize the RES sector at a time when the RES special account’s deficit is being wiped out.

The plaintiffs believe supplier surcharge measures should have been imposed before tariff cuts – presumably smaller – were taken into consideration, if no progress was made on the RES special account’s deficit. RES producers also contend the measures taken represent a form of state aid for suppliers.

A supplier surcharge that also ended up being introduced has overperformed and is expected to lead to a RES special account surplus by January. As a result, a reduction of the RES-supporting ETMEAR surcharge included on electricity bills is seen as a definite development.