Producer windfall profit tax sum for subsidies at €371m

Posted on July 25, 2022July 25, 2022 by admin

A newly introduced extraordinary tax on windfall profits of electricity producers has, so far, resulted in a collection of 371 million euros since its introduction 16 days ago, to help fund the government’s energy subsidies effort through the Energy Transition Fund.

The extraordinary windfall profit tax is generating tax revenue at an average of 23 million euros per day, a rate which, if maintained throughout July, will result in a sum of more than 500 million euros by the end of this month.

The 371 million-euro amount is not all fresh money for the subsidies as a fraction of this total represents excess-tariff money from renewables that would have been injected into the RES special account and, by extension, the Energy Transition Fund.

However, a 166 million-euro windfall profit tax amount accumulated from natural gas and lignite-fired electricity production units and hydropower units is all fresh money – 79 million euros, 44 million euros and 43 million euros, respectively.

Meanwhile, the recent implementation of an 85 euros per MWh price cap on RES producers, part of the government’s energy-crisis measures, will, according to energypress sources, deprive the RES special account of between 30 and 40 million euros, monthly.

Authorities are monitoring the RES special account to ensure it does not fall into deficit territory.

RAE exploring ETMEAR surcharge cut for consumers

Posted on July 8, 2022July 11, 2022 by admin

RAE, the Regulatory Authority for Energy, wants to examine if any leeway exists for a reduction of the RES-supporting ETMEAR surcharge included in electricity bills.

The authority’s president, Athanasios Dagoumas, has forwarded a letter to the energy ministry requesting an official update on the RES special account’s surplus level at present as the most recent update offered by RES market operator DAPEEP covered the year’s first quarter.

The RAE official also asked to be informed on any possible transfers of RES special account surplus money for other uses, which would be factored into the authority’s calculations examining the possibility of an ETMEAR surcharge reduction for consumers.

RAE has regained authority to set ETMEAR levels after the task had been transferred to the energy ministry for two years.

Rather than use RES special account surplus money to reduce the ETMEAR surcharge for consumers, the government has, so far, preferred to transfer excess money to the Energy Transition Fund to finance energy subsidies offered to households and businesses.

Two amounts have been transferred from the RES special account to the Energy Transition Fund this year, a 780 million-euro sum in March, followed, just days ago, by 320 million euros.

DAPEEP has forecast a 1.55 billion-euro surplus for the end of 2022, based on first-quarter figures. A forecast revision is expected as market conditions have changed drastically in recent months.

RES special account revisions for new RES project, energy storage support

Posted on April 12, 2022April 12, 2022 by admin

The energy ministry is preparing amendments to restructure the RES special account and create two new sub-accounts that will offer support for new RES projects and energy storage facilities.

These amendments, incorporating a series of EU directives, will lead to the establishment of a remuneration framework for energy storage units, based on a feed-in premium model, as has been previously reported by energypress.

The amendments will also create a new RES sub-account for support to new RES projects, defined as projects launched from January 1, 2021 onwards.

The establishment of a new RES sub-account supporting new RES projects has been set as a condition if the existing RES special account is to receive a 202 million-euro boost through the Recovery and Resilience Facility.

The procedure is expected to be completed by June, so that this amount can be made available for the RES special account, sources at the energy ministry have informed.

RES special account €935m injection from excess RES producer earnings

Posted on April 7, 2022April 7, 2022 by admin

Authorities are considering to shorten the time period given to RES producers with feed-in premium agreements to redirect, to the RES special account, any excess amounts earned through day-ahead market activity.

These excess earnings are considered to be any amounts generated by prices exceeding reference prices used to establish remuneration deals.

At present, RES producers with feed-in premium agreements have 60 days to return excess earnings to the RES special account, but this period could be halved as wholesale market-related earnings are paid to producers by the energy exchange on a weekly basis.

Swifter returns of excess earnings by RES producers with feed-in premium agreements promise to create greater capacity for various support measures, including electricity subsidies, offered through the RES special account.

Excess RES producer earnings for November and December, 2021 totaled 935.5 million euros, according to official data released just days ago by RES market operator DAPEEP.

The RES special account surplus is expected to reach 2.495 billion euros at the end of the year, DAPEEP has projected.

A total of 780 million euros from the RES special account has already been made available this year for electricity bill subsidies. This sum is expected to be transferred to the Energy Transition Fund, backing subsidy packages, by May.

RES special account sum of €780m for energy subsidies in 5-month period

Posted on March 22, 2022March 22, 2022 by admin

RES special account contributions to the Energy Transition Fund, offering energy-crisis support to consumers in the form of subsidies, are expected to reach a sum of 780 million euros during the year’s first five-month period.

Besides helping contain wholesale electricity prices, the RES sector, at present, is the only electricity-generating technology whose windfall profits are being used to soften the energy crisis’ impact on consumers, RES sector officials have highlighted.

Though wholesale electricity prices have reached extremely high levels during the ongoing energy crisis, they would have been even higher had it not been for the support offered by the RES special account, RES sector officials have noted.

A recent study conducted by the Aristotle University of Thessaloniki showed that renewables have decreased day-ahead market price levels by 83.8 euros per MWh.

Public service compensation a/c surplus to fund subsidies

Posted on March 18, 2022March 18, 2022 by admin

Public service compensation (YKO) account surplus money will be added to the sources being used by the government to fund electricity and natural gas subsidies offered to consumers as energy-crisis support.

The government has decided to transfer 200 million euros from the public service compensation account to the Energy Transition Fund, providing the subsidy money.

The public service compensation account’s surplus resulted from savings made possible by recent island grid interconnection launches.

Surplus money from the RES special account and CO2 emission revenues have also been used by the government to fund its subsidy support offered to consumers.

The public service compensation (YKO) account ended 2021 with a 105 million-euro surplus, despite struggling with a 150 million-euro deficit mid-way through the year, Athanasios Dagoumas, president of RAE, the Regulatory Authority for Energy, informed earlier this year.

Suppliers being reimbursed for January, February subsidies

Posted on March 16, 2022March 16, 2022 by admin

Energy suppliers have begun receiving payments covering electricity and natural gas subsidies offered to consumers for January and February on behalf of the Greek State, sources have informed energypress. The amounts received so far total approximately 50 million euros and are being provided through the Energy Transition Fund, the sources added.

Reimbursements began being offered last week after RES market operator DAPEEP forwarded a related application form to suppliers requesting customer and respective subsidy details.

Suppliers are being swiftly reimbursed, even on the same day, when submitting this information, on a special template, the sources noted.

Some suppliers have yet to fill in the procedure’s template as they have needed to make IT revisions in order to forward information in the fashion requested by DAPEEP. All suppliers are expected to have submitted their templates to the operator within the next few days.

Once suppliers have been reimbursed for January and February subsidies, they will begin receiving payments for subsidies provided in March.

The government’s energy subsidy package for March, announced at the beginning of this week, remains unchanged, compared to February, meaning the subsidy program for the three-month period covering January to March is worth a sum of 999 million euros, 856 million euros for household and non-household electricity subsidies and the other 143 million euros for natural gas subsidies.

Highlighting the RES sector’s significant contribution to the government’s support measures for consumers, a sum of 780 million euros will be transferred from the RES special account to the Energy Transition Fund by May, the latest, for further subsidies, following a related ministerial decision.

Latest electricity, gas subsidy details expected next week

Posted on March 11, 2022March 11, 2022 by admin

The government is expected to announce, next week, the details of its latest energy subsidies program for household and business consumption in March, believed to be worth 350 million euros, the same amount that was offered for February, sources have informed.

Overall, the government’s latest support package is expected to offer household and business consumers subsidies worth over 700 million euros for electricity and natural gas bills covering March and April.

Greece’s wholesale electricity price averaged 221.71 euros per MWh in February, slightly below January’s average of 235 euros per MWh.

Households stand to each receive subsidies averaging 39 euros for March, virtually unchanged from the previous month, while businesses are seen receiving subsidies averaging 65 euros per MWh, also virtually unchanged.

Energy subsidies covering April are expected to be higher, possibly over 50 euros for households, while increases are also anticipated for businesses and farmers, sources informed.

During the first ten days of March, the wholesale electricity price averaged over 322 euros per MWh, 50 percent above the February average.

The money for the subsidies will be drawn from the Energy Transition Fund, fed by CO2 emission right revenues and the RES special account surplus, to soften the impact of the astonishing rise in electricity and natural gas prices.

However, officials remain concerned about the adequacy of this money given the volatility in the European energy market, triggered by Russia’s invasion of Ukraine.

Brussels calls for subsidy control, fearing RES special account deficit

Posted on February 25, 2022February 25, 2022 by admin

The European Commission has warned the Greek government to keep a close watch on electricity subsidies offered to consumers in order to avoid creating a RES special account deficit. The warning was included in a new Brussels report published during the week.

According to the report, electricity subsidies offered to consumers in Greece could reach as much as one billion euros by July, given the market’s wholesale electricity price developments.

As for other fronts, the Brussels report expects the sale of gas company DEPA Infrastructure, acquired by Italgas, Italy’s biggest natural gas distribution company and the third largest in Europe, to be completed by the end of April.

Final sale procedures are expected to be completed towards the end of March, enabling Italgas to make its payment, an amount of 733 million euros, by the end of April.

The Brussels report estimates binding bids for the privatization of a prospective underground natural gas storage facility (UGS) at the almost depleted natural gas field of “South Kavala” in the Aegean Sea’s north will be submitted by the end of May, ahead of the selection of a preferred bidder in July. A finalized contract is not expected before the end of the year.

A gas grid operator DESFA and GEK TERNA partnership, as well as Energean Oil & Gas, have advanced to the second round of the project’s tender, staged by TAIPED, offering contracts for the development and operation of the facility.

RES special account surplus for 2021 at €300m, higher than expected

Posted on February 11, 2022February 11, 2022 by admin

The RES special account ended 2021 with a surplus of 300 million euros, greater than had been forecast in the most recent report issued by RES market operator DAPEEP, covering August to October, energypress sources have informed.

The account’s 300 million-euro surplus includes a 70 million-euro safety reserve, meaning the net surplus works out to 230 million euros, still more-than-double the net surplus amount of 101.17 million euros that had been forecast by DAPEEP in its most recent report.

A drastic reduction in amounts owed by energy suppliers to the RES special account was a key factor behind the surplus boost. RES special account debt owed by suppliers, recently totaling 600 million euros, has now been virtually wiped out.

A mechanism has been implemented to trigger and facilitate the transfer of RES special account surplus amounts to the Energy Transition Fund.

The RES special account generates surplus amounts when day-ahead market prices exceed 85 euros per MWh, according to Athanasios Dagoumas, president of RAE, the Regulatory Authority for Energy.

According to the RAE chief, should wholesale electricity prices remain at the current level of 200 euros per MWh throughout the year, the RES special account’s cash injection into the Energy Transition Fund will amount to approximately one billion euros in 2022.

The Energy Transition Fund is expected to have at its disposal a total of two billion euros for consumer support polices assuming a further one billion euros is received from carbon emission right revenues.

Gov’t moves ‘prevent’ public service compensation returns

Posted on January 25, 2022January 25, 2022 by admin

Two government decisions have prevented a reduction of public service compensation surcharges (YKO) included in electricity bills, despite the account being in surplus territory, the head official of RAE, the Regulatory Authority for Energy, has informed.

A government measure was recently ratified to enable a retroactive return of public service compensation amounts to power utility PPC for outstanding amounts from previous years, although RAE had determined, in 2019, no need for a return to the utility, according to RAE president Athanasios Dagoumas.

Another decision, approved last year and also preventing a public service compensation reduction for consumers, links the surcharge’s account with the RES special account, the RAE chief explained, while adding that this measure has yet to be fine-tuned through a related ministerial decision.

Dagoumas, speaking at a press conference yesterday, clarified that the energy ministry decides on public service compensation surcharge revisions and surplus returns, whereas the authority’s role is limited to offering opinion.

The public service compensation ended 2021 with a surplus of 105 million euros despite reporting a deficit of 150 million-euro deficit in July, according to the RAE chief.

Dagoumas said he informed the government that the public service compensation surplus could be utilized for social policy. However, the energy ministry eventually decided to suspend returns for certain consumer categories, he added.

Excess RES revenue support for Energy Transition Fund

Posted on January 5, 2022January 5, 2022 by admin

Government officials are preparing to establish the RES special account as a second major contributor to the Energy Transition Fund, assuming wholesale electricity prices remain at high levels generating excess revenues for RES producers.

RES units with feed-in premium agreements generating excess amounts – well over anticipated remuneration levels based on reference prices agreed to – as a result of considerably higher wholesale electricity prices, would be required to inject these extra amounts into the RES special account, according to the plan.

The establishment of an extra revenue source for the Energy Transition Fund, in addition to funds being generated through CO2 emission right auctions, is deemed necessary as subsidies protecting households and enterprises from extremely higher energy prices are expected to be needed in 2022.

A legislative revision requiring RES producers to return, to the RES special account, excess revenues resulting from higher wholesale prices has already been activated.

Officials are believed to be working on a mechanism that will be automatically triggered into action when prices in the wholesale electricity market’s day-ahead market rise over a certain level.

Higher wholesale prices boost RES special account inflow

Posted on December 31, 2021December 31, 2021 by admin

Greatly increased wholesale electricity prices over recent months have turned RES units with feed-in premiums into key contributors of the RES special account in 2021.

According to a recent report released by DAPEEP, the RES market operator, RES facilities with feed-in premiums are forecast to inject 88.5 million euros into the RES special account in 2021 as a result of excessive revenues generated by extremely higher wholesale electricity prices. The operator took into account a December average market price of 225 euros per MWh.

A preceding report by DAPEEP had forecast a far lower 9.07 million-euro input by RES facilities with feed-in premiums in 2021, based on the assumption of an average market price of 135 euros per MWh during the final three months of the year.

Given the higher wholesale prices, RES units with FIPs are expected to contribute 161.6 million euros to the RES special account between July and December, about double the 81.8 million-euro forecast included in the operator’s previous report.

The increased RES special account inflow will continue until June, 2022, with RES units seen injecting 151.3 million euros in the first half of next year, before their contribution drops to 66.32 million euros in the second half of the year, the RES market operator has forecast.

RES deadline for return of extra revenues expiring tomorrow

Posted on December 16, 2021December 16, 2021 by admin

Investors behind RES units with feed-in premiums that generated extra revenues through their participation in the electricity market during the months up to August, as a result of market clearing prices that exceeded tariff levels, have until tomorrow to return excess amounts.

DAPEEP, the RES market operator, last week announced details on its website concerning these returns.

RES units for which investors fail to meet tomorrow’s deadline will, as a penalty, be excluded from the market, according to conditions set by the energy ministry. Revenues generated by excluded RES units will be injected into the RES special account.

Returns until the end of the year have been estimated to total 81.8 million euros. DAPEEP based its calculations on the assumption of a market clearing price average of 135 euros per MWh in the final quarter of 2021. Levels have risen much higher, resulting in a greater amount to be injected into the RES special account.

RES special account surplus over €50m despite CO2 share cut

Posted on November 22, 2021November 22, 2021 by admin

The RES special account’s surplus is expected to remain on steady ground despite the concerns of renewable energy producers, fearing a massive reduction in the account’s share of CO2 emission right auction revenues, now down to 8 percent from 75 percent, will shrink the surplus to an extent that could affect their income for RES output, sources informed on the account’s latest figures have reported.

RES market operator DAPEEP is expected to soon release a report on the RES special account for the months of August and September.

The RES special account’s surplus at the end of 2020 will exceed 50 million euros, not including a 70 million-euro amount kept aside as a safety reserve for extraordinary circumstances, meaning the account’s actual end-of-year surplus will total at least 120 million euros, the sources informed.

A decision formalizing the RES special account’s reduced share of CO2 emission right auction revenues to 8 percent was implemented on November 19.

However, RES special account figures will need to be recalculated if the government’s current electricity subsidy offer for households is increased from the current monthly level of 39 euros per household.

The RES special account’s share of CO2 emission right auction revenues was reduced to enable greater support for the Energy Transition Fund, which has been resorted to by the government to compensate electricity suppliers for subsidized electricity bills.

It should be pointed out that CO2 emission right auction revenues have risen considerably this year as a result of sharply increased CO2 emission right prices.

RES special account safety reserve to fall below €70m

Posted on November 18, 2021 by admin

The RES special account is expected to end the year just inside surplus territory, below the 70 million-euro level established as a safety net for coverage of extraordinary circumstances so as to ensure the account’s ongoing ability to remunerate renewable energy producers.

The account’s tighter financial standing has resulted from the drastic reduction in its share of CO2 emission right auction revenues, now down to 7 percent from 75 percent, to enable greater support for the Energy Transition Fund, which has been resorted to by the government to compensate electricity suppliers for subsidized electricity bills.

Latest complications in the the licensing procedure for the Nord Stream 2 gas pipeline running directly from Russia to Germany through the North Sea appear set to push electricity price levels even higher in coming weeks. This may force the government to further increase electricity subsidies for December consumption, over a monthly level of 39 euros per household previously decided on for November and December.

ELETAEN: RES surcharge as competitive pricing component

Posted on November 17, 2021November 17, 2021 by admin

ELETAEN, the Greek Wind Energy Association, has reiterated its support for changing the RES-supporting ETMEAR surcharge included in electricity bills from a regulated to competitive component of pricing policy.

The association has supported this view over the past decade or so, along with other renewable energy sector officials.

ELETAEN general manager Panagiotis Papastamatiou, responding to a related question at a news conference, noted that the ETMEAR section concerning new projects could be incorporated into the competitive fees of suppliers.

Full or partial incorporation of the ETMEAR surcharge into the competitive pricing policy of energy suppliers would automate the determination of required RES special account revenues, meaning they would be adjusted by market forces without the need for state intervention, ELETAEN supports.

“We want to avoid the situation of the energy ministry having to take on an accounting role each time, calculating RES special account revenues,” ELETAEN president Panagiotis Ladakakos.

According to ELETAEN, at present, Greece’s new wind farms are generating electricity at a greatly reduced cost that is three to four times lower than the cost of natural gas-fueled electricity production and two to three times lower than the cost of lignite-based output.

Had the ETMEAR surcharge already been incorporated as a competitive component in the pricing policy of suppliers, this lower-cost green energy would have been passed on to consumers, ELETAEN supports.

RES special a/c share of CO2 auction revenues down to 7%

Posted on November 16, 2021November 16, 2021 by admin

The government’s rising amount of electricity bill subsidies offered to households to help counter the sharp increase in energy prices is prompting a decrease in the level of CO2 emission right auction revenues made available for the RES special account, remunerating renewable energy producers.

Revisions have been made to a recent ministerial decision in order to secure funds for electricity bill subsidies worth 39 euros per month, energypress sources informed.

Under the latest terms, 70 percent of CO2 emission right auction revenues, or approximately 700 million euros, will be injected into the Energy Transition Fund, supporting the subsidy effort, while just 7 percent, or 70 million euros, will go to the RES special account.

The decision to restrict the RES special account’s share of CO2 emission right auction revenues to 7 percent was taken by the energy ministry once DAPEEP, the RES market operator, confirmed the RES special account’s surplus figures, prompted by far higher wholesale prices and increased CO2 emission right prices.

A year earlier, the RES special account was receiving 75 percent of CO2 emission right auction revenues, a level exceeding a 60 percent minimum that was required by law.

Electricity subsidy boost from RES special account surplus

Posted on November 8, 2021 by admin

A government plan for a further increase in electricity bill subsidies for households and businesses, as well as natural gas consumers, for energy crisis support, is expected to be finalized this week, possibly even today.

At the same time, the government is also examining ways to offer energy-cost relief to major-scale consumers of the medium-voltage category, including manufacturers and chains. New installment-based payment plans are being considered for this category of consumers.

The funds required for low-voltage subsidies are likely to be derived from the RES special account surplus, in excess of 150 million euros, as will be shown by a latest report, covering up to August, expected to be released by RES market operator DAPEEP during the week.

A considerable proportion of the RES special account surplus, generated by CO2 emission right auction revenues, is expected to be injected into the Energy Transition Fund for subsidy support. Other sources, including the budget, cannot be excluded.

Electricity subsidies for average households are expected to reach 18 euros per month.

RES players troubled by slashed CO2 rights share

Posted on October 26, 2021October 26, 2021 by admin

Renewable energy producers are concerned about the balance of the RES special account, remunerating their output, following a government decision to reduce the share of CO2 emission right auction revenues injected into the account.

The government is looking for additional funds to support energy crisis-hit consumers of all scales.

The share of CO2 emission right auction revenues injected into the RES special account will be reduced to between 30 and 32 percent, from at least 60 percent.

However, RES producers hope the sharp increase in CO2 emission right prices over recent times will compensate for their slashed share and keep the RES special account in surplus territory. A clearer picture on the account’s standing will have emerged by the end of the year.

Though CO2 emission right prices have roughly tripled compared to levels last year, a reduced 30 percent CO2 rights auction share for the RES special account is expected to lessen last year’s 375 million-euro total derived from these auctions by approximately 75 million euros, according to estimates.

This reduced cash inflow into the RES special account could limit new green energy investments, sector officials warned.

CO2 auction revenue share for RES special a/c down to 30%

Posted on October 25, 2021October 25, 2021 by admin

CO2 emission right auction revenues injected into the RES special account, remunerating producers, will be reduced to between 30 and 32 percent of the total following a revision to a previous rule requiring an input share of at least 60 percent.

This change was prompted by the energy crisis and the government’s need to allot funds for support to energy consumers of all scales and suppliers.

Under the new rules, the energy ministry has been given authority to determine and set the percentage of CO2 emission right auction revenues to be injected into the RES special account. The ministry’s related ministerial decision, expected to halve the percentage, is expected today.

Despite this share reduction, energy ministry officials insist the CO2 emission right auction revenue amount to end up in the RES special account will not be affected as a result of the sharp rise in CO2 emission right prices.

Approximately 45 percent of CO2 emission right auction revenues, estimated to result in an amount of 470 million euros, is expected to be transferred into the Energy Transition Fund to help combat the energy crisis.

A sum of 327 million euros is expected to be utilized for electricity bill subsidies, 90 million euros for heating fuel subsidies, 30 million euros for electricity supply reconnection fees concerning low-income households, and 30 million for telethermal needs.

Extra producer income returns to RES special a/c formalized

Posted on October 15, 2021October 15, 2021 by admin

A legislative revision detailing the procedure through which RES producers with feed-in premiums will return to the RES special account excess remuneration resulting from higher wholesale electricity market prices has just been ratified by Greek Parliament.

Over the past few months, many RES units have been generating excessive revenues as the sharp rise in wholesale prices has lifted the market clearing price well over the market’s reference price.

The RES special account stands to receive 4.384 million euros in returns from RES producers with feed-in premiums up to July, while the monthly returns from July onwards are far greater as a result of skyrocketing wholesale electricity prices since that period, according to a latest report released by DAPEEP, the RES market operator.

This trend will continue until the end of the year as the market clearing price is forecast to average 135 euros per MWh in the fourth quarter, according to the DAPEEP report.

RES special account surplus at €243.74m in 2021

Posted on October 14, 2021 by admin

The RES special account is expected to end 2021 with a surplus of 243.74 million euros, DAPEEP, the RES market operator, has announced in its latest report, released every two months.

Adding a green tax imposed on auto diesel to this figure would take the RES special account’s surplus to 335.74 million euros, including a 70 million-euro safety reserve.

The end-of-year projection takes into account consolidated figures until the end of July, as well as preliminary figures up to the end of September, the operator’s chief official Yiannis Giarentis noted in the report.

CO2 emission rights, feeding the RES special account, will continue along an upward price trajectory, the official noted.

A recent government decision giving DAPEEP control of the new Energy Transition Fund, a move promising to further increase the operator’s influence in the energy market, comes as recognition of the operator’s efforts for the country’s green energy transition, Giarentis noted.

CO2 auction money for RES a/c cut to 50% for power subsidies

Posted on October 12, 2021October 12, 2021 by admin

The energy ministry will proceed with a legislative revision reducing the percentage of CO2 emission auction right revenues channeled into the RES special account, remunerating green energy producers, from 60 percent to 50 percent as a means of securing subsidies for sharply increased electricity bills, sources have informed. Two related ministerial decisions will also be needed.

Just a month earlier, the government had ratified an amendment increasing the percentage of CO2 emission auction revenues for the RES special account to at least 60 percent.

The latest amendment, intended to support consumers through the energy crisis, may be submitted to Parliament for ratification this Thursday, as an attachment to a draft bill concerning energy efficiency.

As a result of this latest revision redistributing CO2 emission auction revenue, a percentage of between 30 and 40 percent will be channeled into the Energy Transition Fund being established by the government for energy crisis measures to support consumers.

The government has increased the amount to be injected into the Energy Transition Fund for electricity bill subsidies to 400 million euros, from a previous estimate of 150 million euros, as a result of the persisting electricity price surge in the market.

Gov’t turns to extra RES special a/c sum for energy subsidies

Posted on October 1, 2021October 1, 2021 by admin

The government, seeking new resources to cover the additional needs of natural gas and electricity bill subsidies, is examining all possibilities, including the RES special account’s additional revenues, generated and accumulated as a result of surging wholesale electricity prices and deemed more than sufficient to cover the remuneration needs of renewable energy producers.

However, the issue does concern certain RES producers whose contracts are susceptible to higher wholesale prices and require compensation, based on the market clearing price. The energy minister is working on this issue with DAPEEP, the RES market operator.

The level of the RES special account’s additional revenues, and how these will be utilized, has yet to be clarified. But the government’s determination to seek solutions that will soften, for consumers, the effects of sharply increased energy prices pushed up by a combination of unfavorable international factors, has become perfectly clear.

At this stage, the energy price surge appears likely to spill over into the first few months of 2022, at least.

The situation’s growing alarm, by the day, prompted the government to recently increase a subsidy package amount for low-voltage electricity tariffs from 150 million euros to 200 million euros, just weeks after the support measure was announced. Given the ongoing developments, not even this increased amount will suffice, which has prompted the energy ministry to turn to DAPEEP for support through the RES special account.

The price surge in energy markets has been relentless in recent months. Wholesale electricity price levels for today rose to 168 euros per MWh, 26 percent higher than yesterday’s price of 133 euros per MWh.

RAE checks with Brussels on balancing cost reimbursement

Posted on September 23, 2021September 23, 2021 by admin

RAE, the Regulatory Authority for Energy, is considering to facilitate a return to electricity suppliers, the RES special account and industrial consumers of amounts linked to increased balancing costs for a period until restrictive measures were imposed by the authority.

But, before taking any action, the authority has submitted an enquiry to the European Commission to ensure that such an initiative would not contravene EU electricity market regulations.

The response from Brussels is expected to offer RAE clarity as to whether it can move ahead with a reimbursement plan for affected groups for a period covering the launch of the target model just under a year ago to the ensuing restrictive measures imposed by RAE to counter increased balancing costs.

PM presents Energy Transition Fund as price-surge protection

Posted on September 13, 2021September 13, 2021 by admin

The new Energy Transition Fund, announced yesterday by Prime Minister Kyriakos Mitsotakis at the 85^th Thessaloniki International Fair, will offer electricity subsidies to households and small and medium-sized enterprises, heating fuel subsidies, and a range of other initiatives intended to help combat energy poverty.

The new fund, to be established as a permanent tool, will be launched with an initial amount of 150 million euros expected to remain as a surplus from CO2 emission right auction revenues that have overperformed this year as a result of higher CO2 emission right prices in international markets.

The 150 million-euro amount to be reserved for the new Energy Transition Fund will not deprive other domains of customary support.

The RES special account will receive a 60 percent share of CO2 emission right auction revenues. Despite being a smaller proportion than last year, this percentage will produce an equivalent CO2 auction-revenues amount for the RES special account, remunerating producers, as a result of the higher CO2 emission prices. In addition, the Green Fund will receive its amount as normal.

Following these deductions, it is estimated that a 150 million-euro amount will be left over for the new Energy Transition Fund, which, over time, is expected to gain further amounts from other sources such as the Just Transition Fund and the state budget.

Energy minister Kostas Skrekas will offer more details on the new fund, including its operational specifics, today, the Prime Minister noted during yesterday’s announcement.

Rising wholesale electricity prices, pushed up by a combination of factors in international markets, are seen increasing energy costs for consumers by as much as 40 percent, which has prompted the need for government action.

Bolstered electricity cost coverage for low-income groups

Posted on September 6, 2021September 6, 2021 by admin

The government is making efforts to offer low-income households greater protection against exorbitant price rises in the electricity market, which are being driven by an unfavorable combination of factors, internationally.

The energy ministry and RAE, the Regulatory Authority for Energy, have forwarded a proposal to the Prime Minister’s office for an increased discount to vulnerable households through the Social Residential Tariff (KOT) subsidy program.

Through KOT subsidies, eligible households currently receive electricity tariff discounts of between 45 and 60 percent, depending on their income levels, property assets and electricity consumption levels.

According to energypress sources, the proposal forwarded by the energy ministry and RAE calls for a further increase in these KOT-related discount rates, which would offset any electricity price rises.

The KOT program is funded by public service compensation (YKO) surcharges included in electricity bills. However, the latest YKO amount will be lower as a result of a big dip in oil prices last year.

The energy ministry is seen covering this gap by using some of the funds raised through CO2 emission right auctions.

CO2 emission right auction revenues for this year are expected to reach 90 million euros. A 60 percent portion is, by law, channeled into the RES special account, while the distribution of the remaining 40 percent is determined through ministerial decisions reached each year.

New RES a/c to support 6.5 GW, average price €12.7/MWh

Posted on August 25, 2021August 25, 2021 by admin

The new RES special account, a forthcoming addition to the existing account that will take on projects operating since January, 2021, is projected to support a RES portfolio with a total operating capacity of 6,546 MW, according to the existing account’s revision plan.

This projection will be used to estimate the new RES special account’s outflow and, as a result, the amounts that will need to be contributed by consumers through a new RES-supporting Dynamic Renewable Charge (DRC).

As previously reported by energypress, the DRC will be covered by electricity suppliers – in proportion to their market shares – and then passed on to their customers.

New mixed RES auctions planned for 2021 to 2024 are expected to provide feed-in premium tariffs for new projects with a total capacity of 2,800 MW.

Remuneration for RES production through the new RES special account is seen averaging 12.7 euros per MWh.

RES special a/c split into two to protect producer revenues

Posted on August 23, 2021August 23, 2021 by admin

RES special account revisions designed by the energy ministry to ensure new revenue sources and long-term remuneration protection for renewable energy producers will divide the account into two, an old and a new RES special account, made possible by 202 million euros in support stemming from the recovery fund.

A new and exclusive revenue source, the Dynamic Renewable Charge (DRC), will be exclusively channeled into the new RES special account. Revenues to be generated by this surcharge will be paid by electricity suppliers – in proportion to their market shares – to RES market operator DAPEEP and then passed on to their customers.

As for the old RES special account, existing revenue sources such as the ETMEAR surcharge included in electricity bills, as well as a green surcharge of 0.03 cents per liter imposed on auto diesel fuel, will be maintained.

In addition, the old RES special account will be offered protection through a formula balancing any fluctuations of the Public Service Compensation (YKO) surcharge included in electricity bills and the ETMEAR surcharge.

The new RES special account will include projects operating since January, 2021, while all previous RES units will continue being remunerated through the old RES special account.