RES special account concerns raised in latest Brussels report

Posted on November 21, 2019 by admin

The European Commission, in its fourth enhanced surveillance report on Greece, just released, has raised concerns over the RES special account’s sustainability, noting it could be negatively impacted by the lowering – without a replacement – of an ETMEAR surcharge included in electricity bills and serving as the main revenue stream for renewable energy producers.

Simplification of RES licensing procedures, pledged by the government, and reforms in Greece’s Spatial Plan will be crucial from here on for green energy investments, the reported reminded.

Earlier this week, deputy energy minister Gerassimos Thomas assured the RES special account will end 2019 in surplus territory of 50 million euros, plus a required emergency reserve of 70 million euros

The Brussels report underlines the importance of green energy investments for Greece’s energy future. Green energy currently holds a 25-30 percent share of the country’s monthly energy generation mix, close to the European average, the report noted.

Greece’s total installed capacity has reached just under 17 GW, of which 3 GW is represented by wind energy and 2.5 GW by solar energy units, big and small.

A solar energy capacity of 143 MW, at 62.77 euros per MWh, and a wind energy capacity of 187 MW, at 67.31 euros per MWh, resulted from July’s RES auction, the report noted.

Administrative issues, such as the issuing of fees for production licenses that have to be paid during project delays that are not the fault of RES producers, are harmful to investment in RES projects, the report stated.

Enhanced surveillance provides a comprehensive framework for monitoring economic developments and the pursuit of policies needed to ensure a sustainable economic recovery in Greece.

Second electricity bill surcharge cut in two months imminent

Posted on November 1, 2019 by admin

Electricity consumers can expect a second cost reduction in two months, a public service compensation (YKO) surcharge cut for nighttime electricity consumption, once a wide-reaching energy ministry draft bill is ratified.

The bill will cover the electricity market’s further liberalization, power utility PPC’s modernization, gas utility DEPA’s privatization and RES sector support.

This latest electricity surcharge cost reduction follows a RES-supporting ETMEAR surcharge rate cut in September.

Public service compensation surcharge rates concerning nighttime electricity usage will be reduced for consumption levels exceeding 1,600 kWh. This cut promises to ease electricity-based heating costs for households this coming winter.

The energy ministry intends to decide on the extent of the surcharge reduction once the aforementioned draft bill has been ratified.

YKO surcharge costs concerning nighttime electricity consumption increased for households at the beginning of 2018 when a low flat-rate formula was replaced by one gradually increasing the surcharge rate in accordance with usage levels, as is the case for daytime consumption.

RAE, the Regulatory Authority for Energy, has proposed an YKO surcharge rate reduction from 0.085 euro to 0.03 euro per kWh for nighttime consumption of over 2,000 kWh and a cut from 0.05 euro to 0.015 euro per kWh for consumption levels between 1,600 and 2,000 kWh.

YKO rates for nighttime electricity consumption have been equated with daytime rates since January 1, 2018. These are 0.00690 euro per kWh for electricity consumption between 0 and 1,600 kWh, 0.05 euro for consumption between 1,601 and 2,000 kWh and 0.085 euro for consumption of 2,001 KWh and over.

New surcharge drop will affect payments, RES producers fear

Posted on September 26, 2019September 26, 2019 by admin

RES producers have reacted against news of an energy ministry intention to reduce a weighted variable cost for conventional thermal power plants, a surcharge injected into the RES special account.

This surcharge accumulates an annual sum of approximately 60 million euros, vital for the RES special account and payments to RES producers.

This latest RES-supporting surcharge reduction plan follows a recent reduction of an ETMEAR surcharge paid by consumers through electricity bills, implemented to help offset tariff hikes at PPC, the state-controlled power utility.

The ETMEAR surcharge reduction will deprive the RES special account of roughly 200 million euros, annually, RAE (Regulatory Authority for Energy) official Nektaria Karakatsani has estimated.

The RES special account will also have to do without a further annual amount of roughly 60 million euros following a European Commission decision in July reducing CO2 emission right amounts available for auction. Greece must withdraw 4 million tons of CO2 emission rights.

RES producers fear these developments could prompt a RES special account regression into deficit territory and affect payments made by DAPEEP, the RES market operator, for their output.

A recent SPEF (Hellenic Association of Photovoltaic Energy Producers) study forwarded to deputy energy minister Gerassimos Thomas warns of difficult payment conditions ahead for RES producers as a result of looming RES special account problems.

Households, businesses to cover bulk of PPC rescue plan’s cost

Posted on September 2, 2019September 2, 2019 by admin

Households and businesses using low and medium-voltage electricity will shoulder most of the weight of a rescue plan prepared for troubled power utility PPC as these consumer groups will end up covering 350 million of 490 million euros in additional revenues to be generated by the plan’s revised pricing policy.

Of this 350 million-euro amount to be covered by households and businesses, 250 million will stem from tariff hikes; 68 million will result from a punctuality discount reduction for low-voltage consumers; 16 million from a punctuality discount cut for medium-voltage consumers; and 16 million euros from the termination of a punctuality discount offered for CO2 emission right costs in the medium-voltage category.

PPC’s electricity tariff hikes, just introduced, include a 16.8 increase to 0.11 euro per kWh for consumption up to 2,000 kWh. A 16.5 percent tariff hike has been imposed on consumption of 2,000 kWh and over, taking the rate to 0.11946 euro per kWh. Nighttime tariff rates have been increased by 19.4 percent to 0.07897 euro per kWh.

A RES-supporting ETMEAR surcharge included on electricity bills has been reduced by 25 percent to 0.017 euros for low-voltage household consumers to partially offset the tariff hikes.

The aforementioned rate revisions, along with a VAT reduction from 13 to 6 percent on electricity bills, will result in annual electricity cost increases of between 30 and 60 euros for consumers requiring 3,300 kWh.

RES producers fear payment delays following surcharge cut

Posted on September 2, 2019September 2, 2019 by admin

A ministerial decision resulting in RES-supporting ETMEAR surcharge reductions for various electricity consumer groups, including households and businesses, has unsettled renewable energy producers, especially solar and wind energy investors, the sector’s overwhelming majority.

RES producers fear the RES special account’s current surplus could stumble back into deficit territory, which would prompt payment delays for output, as was the case in the not-too-distant past.

The exact cost of the surcharge reduction for the RES special account remains unclear.

Sector authorities estimate the surcharge redistribution will deprive the RES special account of between 160 and 200 million euros per year.

The ETMEAR surcharge, included in electricity bills, has been reduced by the energy ministry as a means of partially offsetting tariff hikes at state-controlled power utility, under financial pressure and needing greater cash inflow.

The RES special account’s surplus is projected to be 138.33 million euros at the end of 2019, following the deduction of a 70 million-euro amount maintained as a safety reserve, according to latest figures provided by DAPEEP, the renewable energy market operator.

This essentially means that if the ETMEAR surcharge reduction does deprive the RES special account of a sum between 160 and 200 million euros, as officials have warned, then part of the safety reserve amount will need to be used up. RES producers fear such a development could eventually drain the RES special account dry and take it back to deficit territory.

RES producers believe greater payment delays will be inevitable if additional measures are not taken, representatives told energypress, while acknowledging the energy ministry is aware of the looming problem.

Bigger share of CO2 right auction funds for RES account

Posted on August 30, 2019August 30, 2019 by admin

The government plans to increase the share of CO2 emission right auction funds going to the RES special account as a means of protecting payments to renewable energy producers following a decision to reduce a RES-supporting ETMEAR surcharge included on electricity bills.

This surcharge is being reduced to partially offset tariff hikes at power utility PPC, under financial pressure and needing a revenue boost.

The energy ministry intends to increase the share of CO2 emission right auction funds going into the RES special account to 70 percent, through a legislative revision in autumn, sources informed.

Renewable energy sector officials are pushing for a bigger share of 80 percent as the total amount of CO2 rights to be auctioned is being reduced, based on new EU regulations announced in July, meaning the overall funds to be generated at the auctions will be smaller.

Under current law, a 65 percent share of CO2 emission right auction funds would be kept for the RES special account, up from 60 percent in 2018, but lower than a 72 percent level that had been set for 2016 and 2017.

ETMEAR cut for households to impact other consumer groups

Posted on August 28, 2019August 28, 2019 by admin

The energy ministry’s need to urgently reduce a RES-supporting ETMEAR surcharge – for households – included on electricity bills as a means of partially offsetting imminent tariff hikes at financially pressured power utility PPC has raised questions as to how the measure will affect other consumer groups.

Prior to the PPC-related development, the implementation of a new Brussels-endorsed ETMEAR distribution plan stipulating how this surcharge will be distributed among various consumer groups, has remained pending.

According to the plan, aligned to EU directives and approved by the European Commission, favorable revisions, or ETMEAR reductions, are limited to energy-intensive industrial enterprises.

A single ETMEAR rate was expected to be applied uniformly for all other consumer categories, but certain sub-categories offered favorable surcharge rates until 2014 were expected to possibly benefit from reductions amid a transition period, according to the Brussels-approved plan.

These groups, including medium-voltage consumers, hotels and farmers, expected to cover at least 20 percent of the surcharge, according to the plan, could now end up missing out on surcharge reductions.

PPC tariff hike over 15%, to be partially offset by surcharge cut

Posted on August 28, 2019August 28, 2019 by admin

Electricity tariffs at power utility PPC, financially pressured and in need of a cash inflow boost, will be increased by over 15 percent and partially offset by a reduction of a RES-supporting ETMEAR surcharge included on electricity bills, the state-controlled corporation’s administration and the energy ministry have decided, reliable sources have informed.

Still a tightly kept secret, the details of PPC’s tricky equation, aiming for a significant increase in revenues while limiting the burden on consumers and also protecting RES production payments, will be presented tomorrow at Greek Parliament’s Committee on Production and Trade.

Besides sizable tariff hikes, PPC’s revised pricing policy is expected to include a clause triggering further tariff increases should CO2 emission right costs escalate in international markets – and vice versa.

In addition, a punctuality discount offered by PPC to customers paying electricity bills on time is expected to be roughly halved from its current level of 10 percent as part of the effort to boost revenues.

Meanwhile, as a means of softening the overall impact on consumers, the RES-supporting ETMEAR surcharge included in electricity bills is expected to be reduced to roughly 17 euros per MWh from the current level of 22.67 euros per MWh, a 25 percent reduction.

Decisions will be made official at a PPC board meeting this Friday and implemented September 1.

Additional cash needs at PPC to end up burdening consumers

Posted on August 23, 2019August 23, 2019 by admin

Power utility PPC requires a cash injection of between 800 and 900 million euros, considerably higher than an initial estimate of 750 million euros, to stabilize its troubled finances, the corporation’s new chief executive Giorgos Stassis indicated yesterday.

This increases the likelihood of measures that could burden consumers by as much 150 million euros.

The termination of PPC’s 10 percent punctuality discount benefiting about four million consumers – of the utility’s seven million in total – paying their electricity bills on time is seen as one definite source for this needed amount. The discount’s cancellation will increase PPC’s annual turnover by roughly 150 million euros, it is estimated.

Officials at state-controlled PPC and the energy ministry have been looking for a formula that could neutralize the overall cost-effect for consumers. But yesterday’s revelation by the new CEO of even greater cash needs at the utility suggests this will be difficult to accomplish.

Electricity tariff increases combined with a reduction of a RES-supporting ETMEAR surcharge included on power bills will not work given PPC’s need of 800 to 900 million euros.

The urgency of the financial situation at PPC, Greece’s biggest corporation and the backbone of the country’s energy system, requires swift action. Tariff revision decisions will be finalized on August 30 and implemented as of September 1, according to sources.

PPC, needing cash inflow, to scrap 10% punctuality discount

Posted on August 21, 2019August 21, 2019 by admin

Power utility PPC, shaping a more aggressive pricing policy as a result of its need to boost cash inflow, is preparing to abolish most or all of its 10 percent punctuality discount, offered to customers paying their electricity bills on time.

The power utility is also looking to adjust tariffs for various consumption categories, while the implementation of a clause triggering price hikes when CO2 emission right costs exceed certain levels is now seen as a certainty.

State-controlled PPC needs to have finalized its rescue plan by early September, ahead of an upcoming report from Ernst & Young, the utility’s certified auditor, on September 24.

The government wants a reduction of a RES-supporting ETMEAR surcharge included on electricity bills in order to offset electricity price hikes.

PPC’s recently appointed CEO, Giorgos Stassis, who will be officially approved at an extraordinary shareholders’ meeting tomorrow, faces the challenging task of ensuring greater cash inflow for the utility while concurrently reducing surcharges.

Stassis could offer some clarification, during tomorrow’s meeting, on various models being examined by the government.

New PPC board, approved this week, needs to move fast

Posted on August 19, 2019August 19, 2019 by admin

Power utility PPC’s shareholders will approve the corporation’s new CEO, Giorgos Stassis this Thursday, initiating a crucial period for the struggling corporation, Greece’s biggest, in need of life-saving measures from the state-controlled company’s administration and government.

The details of PPC’s rescue plan must be finalized by September 15, ahead of a report from Ernst & Young, the utility’s certified auditor, expected on September 24. The report will feature observations on the utility’s first-half results. In the lead-up, PPC needs to convince of its potential for a rebound to avoid further unfavorable news from the auditor.

Details of measures aiming to accumulate a sum of 750 million euros for PPC have yet to be finalized, sources informed.

The measures will include an electricity tariff increase as well as the endorsement of a clause triggering hikes when CO2 emission right levels exceed upper limits.

The government wants to offset the tariff hike, expected to be about 10 percent, with a reduction of a RES-supporting ETMEAR surcharge included on electricity bills.

PPC is also expected to securitize unpaid receivables of between 1.5 to 1.7 billion euros, the target being to rake in 400 million euros. The first of two securitization packages is expected to be issued in September or October.

PPC is also anticipating 195 million euros in public service compensation (YKO) returns for 2011. A legislative amendment enabling RAE, Regulatory Authority for Energy, to proceed with the details is needed. Also, the government must decide whether the national budget or electricity consumers will cover the cost of this measure.

RES surcharge redistribution plan to increase farmer input

Posted on August 13, 2019August 13, 2019 by admin

Certain consumer groups may be subject to rate revisions for a RES-supporting ETMEAR surcharge included on their electricity bills as a result of the energy ministry’s adoption of a new and universal European Commission formula determining this surcharge’s distribution. A decision by the ministry is expected as of next week.

Consumer groups currently paying lower ETMEAR rates, such as farmers, could face bigger payments for the surcharge, injected into the RES special account, while the changes brought about by the redistribution will be minor for all other groups, sources contended.

Local authorities have already held talks with European Commission officials on the new formula’s impact for various consumer groups. Industrial consumers are already subject to lower ETMEAR rates, based on a previous decision.

A yearly total of approximately 800 million euros needs to be raised for the RES special account through the ETMEAR surcharge.

Existing rates for consumers ensure this amount. It remains to be seen if this will continue to be the case following the surcharge redistribution. The government wants to offset power utility PPC’s planned electricity tariff hikes, needed to boost its finances, by lowering the ETMEAR rate. It is feared this could affect payments for RES producers.

RES market operator DAPEEP’s estimate for the RES special account surplus, at 184 million euros – following the deduction of 70 million euros, kept aside as a safety net – is only nominal. In actual fact, the RES special account is in deficit territory, primarily as a result of PPC’s enormous amount of unpaid receivables.

Keeping all sides – consumers, PPC and RES producers – satisfied does not appear feasible at this stage.

Officials working on triple plan to secure €750m for PPC

Posted on August 12, 2019August 12, 2019 by admin

Electricity tariff hikes alone will not suffice to ensure power utility PPC raises an additional 750 million euros needed to stabilize the company balance sheet.

The planned tariff hikes, expected to be about 10 percent, promise to rake in a sum of between 400 and 450 million euros, over a year, meaning the energy ministry and the state-controlled utility’s new CEO Giorgos Stassis must apply additional means to raise the missing amount.

This measure, whose implementation is not expected sooner than September, should secure 110 million euros for PPC’s coffers by the end of the year.

Officials intend to avoid bigger electricity bills for consumers by offsetting the tariff hikes through a reduction of a RES-supporting ETMEAR surcharge included on bills. This could prove to be a tricky equation for authorities if payments to renewable energy producers for output are not going to be affected.

Energy ministry officials forecast a RES special account surplus of 200 million euros as a result of higher CO2 emission right costs, but some of this amount could just be nominal.

RAE, the Regulatory Authority for Energy, handling the ETMEAR reduction, will also need to factor in the cancellation of a RES-supporting surcharge for suppliers, which came into effect in January as a result of the RES special account’s surplus.

Authorities will be working against the clock for an overall solution for PPC by September 24, when Ernst & Young, the utility’s certified auditor, is due to issue a new report on the utility’s financial standing. PPC and the energy ministry desperately want to avoid any further unfavorable news on the utility.

PPC is also relying on the return of a public service compensation (YKO) amount concerning 2011 and worth 190 million euros, as well as inflow from the securitization of 400 to 500 million euros of unpaid receivables.

RES producers seen carrying weight of electricity tariff hike

Posted on August 7, 2019August 7, 2019 by admin

Renewable energy producers appear the likeliest market group to be affected by a government plan for electricity tariff hikes at the state-controlled power utility PPC, needed to boost revenues at the struggling utility, as, to protect consumers, these hikes will need to be offset by a reduction of a RES-supporting ETMEAR surcharge included on electricity bills.

All calculations strongly suggest that no other combination than a reduction of the ETMEAR surcharge is possible to avoid higher electricity prices for consumers.

Officials are scrambling for a finalized formula ahead of a September 24 report by Ernst & Young, PPC’s certified auditor, to avoid further bad news on the power utility’s condition.

Officials at the energy ministry, working on the plan daily, see a negative outcome for RES producers as the least detrimental alternative because they constitute a minority group of far less political cost compared to the country’s millions of electricity consumers.

Extreme care needed for RES surcharge cut, experts warn

Posted on August 1, 2019August 1, 2019 by admin

Any reduction of the RES-supporting ETMEAR surcharge paid by consumers through electricity bills must be handled with surgical precision once all RES special account calculations have been finalized to determine its consolidated surplus figure, green energy market officials have stressed to the government. Market officials dread new deficits in the future that would affect payments to producers.

Energy ministry officials have forecast increased inflow for the RES special account and a surplus level of up to 200 million euros, as a result of increased CO2 emission right costs, but the net amount of this inflow remains unclear.

“Under no circumstances can we create a new problem after having solved a previous one,” one market source stressed.

The RES special account’s net surplus in April and May was revised downwards to 101 million euros, while the end-of-year surplus forecast has now slipped to 184 million euros, following the deduction of 70 million euros, kept aside as a safety net.

This emergency fund is required by law to prevent a repeat of record deficit figures that had plagued the renewable energy sector between 2012 and 2014.

Minister’s PPC rescue plan aims to inject €500m into utility

Posted on July 23, 2019July 23, 2019 by admin

Power utility PPC stands to gain financial support worth an estimated 500 million euros from a series of measures announced in Parliament yesterday by the newly appointed energy minister Costis Hatzidakis, the aim of his measures being to ensure the utility’s sustainability.

The minister’s restructuring plan for PPC, under severe financial pressure, includes an electricity tariff increase that is expected to boost the company’s annual earnings by roughly 200 million euros. This tariff hike, expected to be a single-digit rise, will not burden consumers, the minister pledged, as it will be neutralized by an equivalent reduction of a RES-supporting ETMEAR surcharge included on electricity bills. A 10 percent discount for punctual electricity payments will remain intact.

The government’s support plan for PPC also includes a cash injection of approximately 200 million euros for public service compensation (YKO) returns linked to previous years.

The sale of a minority stake of network operator DEDDIE/HEDNO, a PPC subsidiary, to a strategic investor is also a part of the minister’s plan.

A voluntary exit plan will seek to reduce the company’s payroll, now 16,000 strong, by 2,000 workers. It will target staff members who have qualified for pension rights but have chosen to keep working.

Also, NOME auctions, which, so far, have set back PPC by some 600 million euros since their introduction about three years ago, will be abandoned. The auctions have offered PPC rivals lignite and hydropower electricity generated by the power utility at below-cost prices.

Greater pressure will also be placed on PPC customers dodging electricity bill payments despite believed to be capable of covering required amounts. A mere 60,000 customers owe PPC approximately 800,000 euros, Hatzidakis, the energy minister, reiterated yesterday. PPC’s unpaid receivables figure has reached 2.7 billion euros.

Many aspects of the minister’s speech yesterday echoed proposals included in an older plan by McKinsey. The consulting firm was commissioned by PPC but its proposals have yet to be implemented. Plan features included a call for an operating profit improvement of 500 million euros over a five-year period, a voluntary exit plan for 2,000 persons, as well as tariff hikes.

‘Interest on surcharge transfer delays to operators must stop’

Posted on July 19, 2019July 19, 2019 by admin

Power utility PPC’s outgoing chief executive Manolis Panagiotakis has requested a legislative revision that would stop interest charges from being added to overdue regulatory surcharge payments owed by the utility to the IPTO and DAPEEP operators.

This measure would apply to sums concerning RES-supporting ETMEAR surcharges and other regulatory charges imposed on electricity bills that have yet to be paid by consumers.

During a recent meeting with the new energy minister Costis Hatzidakis, the outgoing PPC boss – who submitted his resignation from the state-controlled power utility shortly after the July 7 election – proposed a series of measures that he believes are required to help normalize the electricity market and also offer financial relief to PPC, under financial pressure.

Speaking to reporters following the meeting, Panagiotakis refused to disclose the entirety of proposals he made to the energy ministry, noting he would elaborate on these when the time is right.

The power utility’s chief described as unjustified the interest charges imposed on PPC for its delayed transfer to operators of surcharge amounts not yet paid by consumers.

Independent electricity suppliers have also asked authorities to intervene on the matter.

Independent suppliers fined for delayed surcharge handovers

Posted on April 12, 2019 by admin

RAE, the Regulatory Authority for Energy, has imposed fines on six of seven independent electricity suppliers questioned by the authority for failing to hand over regulated surcharges included in electricity bills to grid operators.

The six independent suppliers were handed fines ranging from tens of thousands to hundreds of thousands of euros for not relaying surcharge amounts to the IPTO and DEDDIE/HEDNO grid operators.

These surcharges include network transmission and distribution usage fees as well as RES-supporting ETMEAR payments made by consumers through electricity bills.

In their defense, suppliers argued that they chose to not relay collected surcharge amounts to the grid operators to offset greater amounts owed to them by the operators, including anticipated returns from the RES special account surplus for 2018. RAE refused to accept this argument.

As for the main power utility PPC, which has delayed relaying to operators enormous surcharge sums worth millions, it had been summoned to a preceding hearing, about a year ago, by RAE and fined 2.8 million euros.

The surcharge amounts owed by the country’s independent electricity suppliers to the grid operators constitute just a tiny fraction of amounts owed by PPC.

Brussels opposes minister’s interest in RES surcharge cut

Posted on February 28, 2019February 28, 2019 by admin

A European Commission report emerging as part of Greece’s second post-bailout review opposes any changes to a RES-supporting ETMEAR surcharge paid by all electricity consumers through electricity bills as a result of growing delays in payments to renewable energy producers for their output.

Two months earlier, energy minister Giorgos Stathakis commissioned RAE, the Regulatory Authority for Energy, to examine the feasibility of an ETMEAR surcharge reduction.

The minister was looking for a way to offset possible electricity tariff hikes at the main power utility PPC, which has expressed an interest to adopt a CO2-related clause enabling price hikes whenever emission right costs exceed certain levels.

Earlier this week, Stathakis was more opposed than ever before to any tariff hikes at state-controlled PPC. The power utility ought to look into other revenue-boosting solutions, such as an intensified collection effort for its unpaid receivables, the minister noted.

In its report, the European Commission expressed great concern over PPC’s long-term financial standing. The power utility faces a 350 million-euro bond payment at the end of April.

Plans by PPC to head to capital markets now appear doubtful. The power utility was initially planning to offer investors a new company bond in February before opting for March.

Ministry seeking overall balance in PPC pricing policy revisions

Posted on February 18, 2019February 18, 2019 by admin

State-controlled main power utility PPC’s new tariffs package been prepared by the energy ministry includes a CO2-related clause enabling price hikes whenever this emissions right cost exceeds a certain level, as well as reductions of RES-supporting ETMEAR and public service compensation (YKO) surcharges paid by consumers through electricity bills, sources have informed.

Though these regulatory charge revisions promise to bring about surcharge changes for PPC’s entire client base, numbering approximately 7.2 million, the energy ministry, mindful of upcoming elections, due later this year, is aiming for a balance that will not affect the overall electricity-bill amounts paid by consumers.

The revisions could be implemented in March in a bid to bolster PPC’s financial standing ahead of a prospective 350 million-euro bond issue.

As part of the upcoming revisions, PPC also plans to reduce a 15 percent discount offered to punctual customers to 10 percent, sources added.

Payment delay period for RES production longer since summer

Posted on February 15, 2019February 15, 2019 by admin

Renewable energy producers are facing gradually increasing payment delays for their output, an unsettling development for many investors as they are depending on these payments to complete installations of new RES facilities, facing tight deadlines.

A number of factors have been cited for the growing payment delay, including a reduction, last April, of a RES-supporting surcharge contribution by suppliers, its abolishment as of 2019, and, possibly, smaller transfers by the main power utility PPC of a RES-supporting ETMEAR surcharge collected from consumers through power bills.

Payment delay periods were improving but stopped shrinking in the summer and have since gradually grown longer, adding an additional two weeks to the waiting period for producers, sources have informed.

This development has unsettled RES producers and prompted fears of bigger payment delays ahead. Electricity suppliers are imminently expecting RES special account returns, plus interest, from the account’s surplus achieved in 2018, not including a 70 million-euro reserve required by law as a safety net for the RES special account.

RES officials have called for an energy ministry decision that would stop the return of the RES special account surplus for 2018 to electricity suppliers. Instead, the RES officials want the surplus to be used to bolster the RES special account’s reserve. Energy minister Giorgos Stathakis has not ruled out such a development, sources informed.

Public service compensation rate cut examined for nighttime tariffs

Posted on January 23, 2019January 23, 2019 by admin

RAE, the Regulatory Authority for Energy, is considering reducing the public service compensation (YKO) rate imposed on nighttime electricity consumption as a corrective measure but sees no leeway for such a reduction concerning regular hours.

YKO rates for nighttime electricity consumption have been equated with daytime rates since January 1, 2018.

This has significantly increased electricity costs for consumers delaying their usage of high-energy appliances, including washing machines, for later in the evening, when electricity tariffs are lower.

Prior to last year’s change, a flat YKO rate of 0.00889 euro was applied to all levels of nighttime electricity consumption. However, the nighttime surcharge rate was then equated with existing daytime rates, these being 0.00690 euro for electricity consumption between 0 and 1,600 KWh, 0.05 euro for consumption between 1,601 and 2,000 KWh and 0.085 euros for consumption over 2,001 KWh.

According to sources, RAE is examining the prospect of reducing the latter YKO rate for nighttime electricity consumption of more than 2,001 KWh. The energy ministry will need to make a legislative revision if this corrective measure is to be implemented.

Data concerning a RES-supporting ETMEAR surcharge included on electricity bills is still being processed, RAE officials informed.

PPC price hikes planned to be offset by lower surcharges

Posted on January 18, 2019January 18, 2019 by admin

Finalized pricing policy revision decisions expected next week from the energy ministry for the state-controlled power utility PPC should include reductions of RES-supporting ETMEAR and public service compensation (YKO) surcharges included in electricity bills, the objective being to soften price hikes planned by PPC.

ETMEAR and YKO surcharge reductions would also lower prices offered by the country’s independent electricity suppliers.

The energy ministry is awaiting the results of a study by RAE, the Regulatory Authority for Energy, on YKO and ETMEAR levels before it reaches PPC pricing policy decisions.

In comments offered yesterday, energy minister Giorgos Stathakis assured changes would not increase the overall cost of electricity bills.

The energy minister was prompted to offer consumers this assurance following a call by PPC’s chief executive Manolis Panagiotakis for the implementation of a CO2 emission rights cost clause – it would increase tariffs if CO2 costs exceed certain levels – as well as the reduction of a 15 percent discount currently offered to PPC consumers paying their electricity bills on time.

RES special account surplus for 2018 exceeds forecast

Posted on January 16, 2019January 16, 2019 by admin

The RES special account’s surplus forecast by renewable energy market operator DAPEEP for 2018 appears to be greater than an amount projected by the operator in its most recent report, published in October.

The operator had forecast a RES special account surplus of 134 million euros for the end of 2018, following a deduction of 70 million euros as a safety net, which is required by law in order to secure payments for producers, but an additional 20 million euros accumulated by November’s inflow into the RES special account promises to increase its surplus figure to around 155 million euros.

The RES special account surplus increase can be primarily attributed to greater inflow generated by an elevated System Marginal Price (SMP) and higher CO2 emission right levels.

Electricity suppliers, key contributors to the RES special account through supplier surcharge payments, are anticipating to be paid back the account’s surplus amount, as promised and legislated by the government.

The increased RES account surplus also provides potential for a reduction in 2019 of the RES-supporting ETMEAR surcharge paid by consumers through electricity bills. To be decided by RAE, the Regulatory Authority for Energy, such a development would prove favorable for the government given the fact that this is an election year.

Leeway seen for public service compensation surcharge cut

Posted on December 24, 2018December 24, 2018 by admin

RAE (Regulatory Authority for Energy) calculations indicate leeway exists for a modest reduction to a public service compensation (YKO) surcharge included on electricity bills in addition to a RES-supporting ETMEAR surcharge cut.

Energy ministry officials have embraced the prospect of both these surcharge cuts amid the gradual build-up to next year’s elections. The government’s four-year mandate expires in October, 2019.

RAE has been examining public service compensation (YKO)-related expenditure in 2018, covering electricity subsidies for underprivileged households, multi-member families and power production expenses on non-interconnected islands.

Legislation ratified by the government last year foresees YKO expenditure of between 40 and 85 million euros per year between 2018 and 2022.

Calculations so far suggest an YKO surcharge hike will not be necessary but, on the contrary, can be slightly reduced, energypress sources informed.

In addition, late-night electricity tariff rates were found to be higher than necessary. The energy ministry is examining reducing these tariff rates following parliamentary discussion.

January date for DEPA split plan, mini bill ahead of festive season

Posted on December 12, 2018December 12, 2018 by admin

The energy ministry plans to submit a draft bill in January for gas utility DEPA’s split plan, ahead of its privatization, as a result of an inability to find available dates within December, sources have informed energypress.

The legislative revision, planned as a multi-bill, will incorporate motions for the establishment of a new Greek authority for geological and mineral exploration as well as legal framework concerning the geothermal sector.

The energy ministry is also preparing to submit a mini draft bill carrying a series of revisions – these include an adjustment to a RES-supporting ETMEAR surcharge paid by industrial consumers, to feature upper limits for energy-intensive enterprises; the abolishment of a RES-supporting electricity supplier surcharge; and RES special account surplus returns to power suppliers – ahead of the festive season, for parliamentary discussion and ratification on December 19 and 20. These revisions need to be implemented by January 1.

As has been previously reported, DEPA will be split into DEPA Trade and DEPA Infrastructure. State privatization fund TAIPED will launch the gas utility’s privatization procedure by offering a majority stake in DEPA Trade, to represent the utility’s commercial interests. The DEPA Infrastructure sale, intended for a latter date, will retain a majority stake for the Greek State.

Revisions headed to parliament, ETMEAR adjustment delayed

Posted on December 7, 2018 by admin

A series of legislative revisions concerning RES special account contribution adjustments are expected to be submitted to parliament over the next few days for discussion and ratification.

These include an energy ministry initiative intended to fully abolish a RES-supporting electricity supplier surcharge and carbon tax as of January 1, 2019. Provisions guaranteeing the smooth functioning of RES market operator DAPEEP, formerly known as LAGIE, are planned to be attached to this revision.

The move to end the supplier surcharge and carbon tax will offer major financial relief to the main power utility PPC.

Another revision headed to parliament will offer electricity suppliers returns from the RES special account’s surplus, which is expected to widen further by the end of the year. The maintenance of a 70 million-euro reserve required by law for the RES special account will need to be factored in to the calculations when determining returns for electricity suppliers.

The series of measures to be submitted to parliament within the next few days will include an amendment for a delay, until early 2019, of an adjustment to a RES-supporting ETMEAR surcharge paid by industrial consumers. Upper limits will be set for energy-intensive enterprises. Greece’s proposal must first be endorsed by the European Commission.

Greece’s proposal has been shaped to comply with EU directives. They date back to 2014. It is estimated Greek industry has been deprived of 7 million euros for each year the measure has been delayed.

Its launch will also require the establishment of an electronic registry at DAPEEP. This is not expected any sooner than spring.

Industrial ETMEAR adjustment plan, to cut cost, still pending

Posted on December 3, 2018December 3, 2018 by admin

Plenty of work is still needed for a launch, by the end of this year, of a RES-supporting ETMEAR surcharge adjustment plan for the industrial sector, even though the Greek government did forward its proposal to the European Commission early in autumn.

According to sources, no party has yet to be commissioned the task of establishing an electronic platform needed to serve as a registry hosting all related data of firms eligible for the cost-saving ETMEAR adjustments. The registry’s data will be applied by authorities to calculate the respective levels of ETMEAR surcharge savings industrial enterprises will be entitled to.

Given the pending issues, ratification by Greek lawmakers of the new ETMEAR surcharge system within December does not guarantee its swift launch.

According to the Greek proposal, based on EU directives dating back to 2014, the ETMEAR surcharge for electro-intensity enterprises – defined as those whose electricity costs exceed 20 percent of gross added value – will be set at a maximum of 0.5 percent of their gross added value. Steel and cement producers may utilize this term as an energy-cost relief measure.

Energy-intensive enterprises whose electricity costs are less than 20 percent of their gross added value will be responsible for ETMEAR costs of no more than 4 percent of their gross added value, according to the adjusted terms. Few enterprises are expected to qualify for this category.

A minimum ETMEAR price of 0.3 euros per MWh will be offered for certain sectors such as the steel and aluminium industries, according to the plan.

PPC adopts measure to combat CO2-related cost swings

Posted on October 22, 2018October 22, 2018 by admin

The main power utility PPC and energy ministry have decided to adopt a CO2 emission right costs-related clause designed to increase electricity tariffs when CO2 costs are elevated and decrease them when these emission right costs are lower.

The power utility was driven to adopt this measure, whose details still remain unknown, to combat current pressure on its share price and improve finances for better terms in capital markets.

To be implemented at the beginning of 2019, the measure is expected to be officially announced within the next two to three days.

Given the higher CO2 emission rights costs, which have quadrupled over the past year or so, the measure is expected to prompt tariff hikes for the time being.

Meanwhile, in another energy sector development, authorities have decided to reduce a RES-supporting surcharge (ETMEAR) imposed on electricity suppliers as a result of the RES special account’s surplus figures.

Finalized RES-supporting surcharge plan set for Brussels

Posted on September 18, 2018September 18, 2018 by admin

Greece’s revised and finalized plan for a RES-supporting ETMEAR surcharge included on consumer bills, changed in accordance with EU state aid directives, is expected to be forwarded to Brussels within the current week for approval.

Local officials recently completed negotiations with European Commission authorities. Once endorsed in Brussels, the revised plan will need to be ratified in Greek parliament. The energy ministry estimates the revised ETMEAR surcharge model, planned to remain valid for ten years, can be launched in January, 2019.

The revisions include favorable terms for electro-intensity enterprises, defined as those whose electricity costs exceed 20 percent of gross added value. Enterprises such as steel and cement producers will be set an ETMEAR surcharge whose maximum level will be 0.5 percent of their gross added value.

Consumers in the mid-voltage category, including hotels and airports, will be offered relatively low ETMEAR rates for electricity consumption levels of certain levels and upwards. Higher ETMEAR rates will apply for consumption below this level.

A small ETMEAR surcharge reduction is planned for business category consumers. The rate in this category will be aligned with that of household consumers, whose ETMEAR cost will remain unchanged.

ETMEAR levels for farmers, hospitals, ministries and public buildings will be set at 50 percent of the average surcharge level.

The main power utility’s lignite mines will be charged 20 percent of the ETMEAR average.