Supplier surcharge reduction of 20% expected for 2018

Local energy sector authorities and energy ministry officials will begin processing data over the next few days in order to decide on the extent of a reduction to apply for the supplier surcharge in 2018.

Greek officials will take into account the leeway created for this supplier surcharge reduction by a RAE (Regulatory Authority for Energy) decision to reduce the RES-supporting ETMEAR surcharge, endorsed by Brussels. Both surcharges are used to feed the RES special account.

The Greek government recently made a commitment to reduce the supplier surcharge when agreeing to terms with the country’s lenders to conclude the bailout’s third review. The terms state that a reduction must be made by the end of March.

The energy ministry intends to submit a legislative revision to Greek parliament in March specifying the supplier surcharge percentage reduction to apply for collections over the remaining nine months of 2018.

The formula used to determine supplier surcharge amounts will not be changed but, instead, the percentage paid by suppliers of total amounts resulting from the formula will be revised.

Suppliers ended up having to contribute half the supplier surcharge amounts they were originally expected to pay during the relatively recent measure’s first year.

According to energypress sources, initial calculations indicate suppliers will be exempted from 20 percent of total amounts under the new terms.

The matter will need to be reexamined at the end of the year to shape the terms for 2019.