state budget

Three-stage plan for public service account deficit

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The public service compensation (YKO) special account’s deficit, estimated to have reached roughly 700 million euros, will be dealt with over three stages from this year until 2026, the state budget taking on the biggest share, according to a formula being discussed by the energy and national economy and finance ministries.

The plan’s first of three stages concerns an amount of about 250 million euros in debt owed to suppliers, which ministerial officials will seek to have settled this year.

If all goes according to plan, members of ESPEN, the Greek Energy Suppliers Association, should start receiving, this year, payments for public service compensation-related debt accumulated between April and November, 2023.

A second stage of the plan concerns roughly 400 million euros and will be included in the 2025 state budget.

The third stage, worth roughly 100 million euros, is planned to be offset by a surplus anticipated in 2026 as a result of the Crete-Athens grid interconnection, a project expected to be completed in 2026. It promises to greatly reduce public service compensation costs.

The overall plan is expected to turn around the public service compensation (YKO) special account’s deficit for a surplus of between 100 and 150 million euros in two years’ time.

 

Unchanged public service surcharge, budget sum boost for special account

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Distribution network operator DEDDIE/HEDNO has proposed keeping a public service compensation (YKO) surcharge unchanged but bolstering its special account with a cash injection of between 90 and 110 million euros from the state budget as a means of ensuring its sustainability in coming years.

The operator offered its proposal in response to a question on the matter by RAAEY, the Regulatory Authority for Waste, Energy and Water.

DEDDIE/HEDNO, in its response, forecast a 37 million-euro deficit for the country’s public service compensation special account at the end of 2023, followed by a surplus of more than 17 million euros at the end of 2024.

The operator recommended keeping the YKO surcharge – included in electricity bills – unchanged and bolstering its special account with an injection from the state budget based on forecasts for 2023 and 2024 as well as the need for a safety reserve of between 50 and 60 million euros.

RAAEY, which, according to energypress sources, appears to have agreed with the operator’s recommendation, is expected to approve and adopt the proposal at its plenary session on Thursday.

This approval would pave the way for RAAEY to proceed with a request to the government for an extraordinary grant to the YKO special account from the state budget.

The YKO special account, nowadays managed by DEDDIE/HEDNO, recorded a deficit of 5 million euros in April. It grew to approximately 25 million euros at the end of May.

 

DAPEEP collections pivotal in budget revenue returns boost

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A state budget revenue refunds increase for the first half has been largely attributed to amounts collected by DAPEEP, the RES market operator, provisional budget execution data has shown.

State budget revenue refunds in the first half of the year totaled 3. 389 billion euros, 586 million euros over the target, set at 2.802 billion euros, with approximately 220 million of this influx injected into the state budget via DAPEEP collections facilitated by a temporary mechanism for partial returns of day-ahead market revenues, according to the provisional state budget data.

Also, a 367 million-euro sum was secured for the Energy Transition Fund from windfall earnings returns by energy producers between October 1, 2021 and June 30, 2022.

The Greek state budget recorded a primary surplus of 2.166 billion euros in the January-June 2023 period, up from a budget target for a surplus of 415 million euros and a primary deficit of 3.425 billion euros in the same period last year, the data showed.