industrial energy costs

PPC probed for lower prices to Larco, Aluminium of Greece

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A public prosecutor at a Court of First Instance is investigating the main power utility PPC over suspicions that it could be selling electricity at unfair, below-cost prices to its two biggest energy-intensive industrial consumers, the troubled state-controlled nickel producer Larco and Aluminium of Greece, cross-examined information has indicated.

It is believed PPC has been asked to present a series of financial details in a letter forwarded by a financial police authority, which notes, in the letter, that a preliminary investigation is being held based on a Court of First Instance order.

Documents demanded by the financial police authority include financial statements such as balance sheets and financial results from 2013 to 2017, invoices concerning transactions with energy-intensive customers from 2013 to the present, as well as price and supply agreements signed by PPC with Larco and Aluminium of Greece from 2013 to now.

The letter received by PPC does not explain what prompted the investigation, nor does it clarify its purpose, but it is firmly believed PPC’s electricity supply prices offered to Larco and Aluminium of Greece are the concern.

EVIKEN, the Association of Industrial Energy Consumers, recently contended PPC’s electricity supply pricing policy for Larco and Aluminium of Greece and the duration of these agreements are favorable, adding other industrial consumers need to counter demands such as higher CO2 emission right price, end of discount offers, and brief one-year supply agreements.

The association’s claims were made following the launch of the public prosecutor’s investigation.

EVIKEN calls for gov’t response to rising industrial energy costs

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EVIKEN, the Association of Industrial Energy Consumers, has called for a firm government response to rising energy costs in a harshly worded statement claiming a conscious effort is being made to undermine the Greek industrial sector’s aim of increasing its contribution to the country’s GDP, employment and investments.

Though the main power utility PPC has not been directly criticized in the EVIKEN statement, the complaints are unquestionably aimed at the utility’s board.

In its statement, the industrial energy consumers association contends an attempt is being made to end institutionalized discounts that are based on consumer profiles and operating costs at the main power utility PPC. EVIKEN also notes the power utility is seeking to impose unjustified tariff hikes.

Any demands for further cost increases, which would add to the already increased CO2 emission right costs faced by industrial enterprises, are unsubstantiated and inappropriate, while an attempt to abolish industrial tariff discounts is discriminatory, EVIKEN notes.

“We call upon the government and prime minister to take appropriate decisions so that the industrial sector’s recovery effort and target for employment growth are not endangered,” the statement concludes.

EVIKEN protests CO2 cost treatment of major consumers

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EVIKEN, the Association of Industrial Energy Consumers, has filed a complaint to RAE, Greece’s Regulatory Authority for Energy, claiming discriminatory treatment of high-voltage electricity consumers by the main power utility PPC over CO2 emission right costs.

High-voltage industrial electricity consumers shoulder the full extent of CO2 emission right cost increases as these costs are included on their electricity bills as separate surcharges. On the contrary, all other consumers enjoy steady tariff levels as CO2-related charges are not included on their bills. EVIKEN has requested an explanation for this conflicting billing approach.

It is estimated that PPC’s decision to absorb higher CO2 emission costs for all other consumer categories is costing the state-controlled power utility additional costs worth between 430 and 440 million euros per year.

EVIKEN also filed a second complaint to RAE requesting an examination of lower mid-voltage tariffs for industrial consumers sharing the same energy profiles as high-voltage consumers. Mid-voltage tariffs are lower by as much as five euros per MWh compared to tariffs paid by high-voltage consumers sharing identical energy profiles.

 

 

Industry, seeking clarity, demands two-year electricity tariff deals with PPC

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The country’s energy-intensive industrial sector is demanding two-year electricity tariff agreements, until the end of 2020, with the main power utility PPC, for greater clarity and stability concerning energy costs to be faced next year.

Shorter-term energy cost planning threatens the sustainability of enterprises in certain sub-sectors, industrialists have warned, adding that energy-cost support for the industrial sector, playing a vital role in Greece’s economic recovery effort, is essential.

Local industrial enterprises, appearing united and adamant, are refusing to sign PPC electricity tariff agreements limited to 2018 and insist on two-year deals.

Separate CO2 emission right cost payments, as is the arrangement at present, would be accepted, industrial sector officials have indicated.

An existing demand response mechanism (interruptability) – compensating major-scale consumers, such as industrial enterprises, when the TSO (IPTO) asks them to shift their energy usage (lower or stop consumption) during high-demand peak hours, so as to balance the electricity system needs – expires in 2019 but the new market conditions to be shaped by a succeeding permanent CAT mechanism remain unclear.

EVIKEN, the Association of Industrial Energy Consumers, has urged energy minister Giorgos Stathakis to seek European Commission approval for a continuation of the demand response mechanism in tandem with the permanent CAT mechanism.