PPC dominating low-voltage supply despite greater customer outflow

Power utility PPC remained the dominant low-voltage supplier up until November, 2023, despite shedding an increased number of customers in the three months leading to the year’s second-last month, data published by RAAEY, the Regulatory Authority for Waste, Energy and Water, has shown.

Consumers using a total of 6,500 low-voltage power meters left PPC during the seven-month period from February 1, 2023 to the end of August, but this outflow tripled to 18,500 power meters over the three-month period between September through November.

Independent energy supplier Zenith gained the most customers over the ten-month period from February through November, adding 45,000 customers to its list, 19,300 of these in the latter three months. Fysiko Aerio followed with 18,900 new customers during this ten-month period, while Elpedison was next with 13,200 additions.

Protergia continued to lead the pack among the independent suppliers, boosted by its takeover of Watt & Volt. Combined, the two companies shed a small number of customers in 2023, compared to the previous year.

The country’s universal supply service – or five biggest electricity suppliers, in terms of retail market share, required by law to cover the needs of black-listed consumers who have been shunned by suppliers over payment failures – remained relatively steady in 2023, losing just 1,100 customers. It was ranked seventh, overall.

 

North Macedonia universal supply tender a battle for EDS

EDS, a subsidiary of Greek power utility PPC, appears set to face strong competition in a tender offering a contract for North Macedonia’s universal electricity supply.

At least five more bidders have expressed interest in the tender ahead of tomorrow’s bidding deadline, sources have informed.

EDS, strongly supported by parent company PPC, intends to submit a highly competitive offer that would greatly undercut an 11.5 percent profit margin maintained by North Macedonia’s current universal electricity supplier, Austrian company EVN. It remains to be seen if rival bidders will do likewise.

Bidders face stricter participation terms in this tender compared to the previous procedure, staged five years ago. These include a working capital requirement of 40 million euros, a condition that could trouble EDS, as noted by officials in the neighboring country.

EDS, in a company statement released just days ago, has denied requesting changes to the tender’s terms, noting it intends to participate with a highly competitive offer significantly reducing the existing contract’s profit margin to the benefit of end users.

PPC and construction firm Archirodon, the only bidders in a tender staged by the North Macedonian government for the construction and operation of a 333-MW Cebren hydropower plant at the Crna Reka river, in the country’s southwest, and operation of an existing 116-MW Tikves hydropower station, also at this river, were initially announced  winners, but the tender ended up being cancelled.

Suppliers want more flexible formula for new variable tariff

A new variable tariff formula that suppliers will need to adopt as a means of improving price-comparison clarity for consumers and stimulating competition will be launched as planned, January 1, when energy crisis measures will be withdrawn, ending subsidies for consumers, energy minister Thodoris Skylakakis confirmed at a meeting yesterday with top officials of ESPEN, the Greek Energy Suppliers Association.

The single variable tariff formula, which all suppliers will need to include in their overall package of tariff offers to consumers, is being introduced with a large proportion of consumers in mind and will allow price comparability of companies’ offers, promoting competition, the minister stressed.

Suppliers called for greater flexibility to the single variable tariff formula so that they could make monthly adjustments, based on prevailing wholesale electricity prices.

All pending retail electricity market issues were tabled during the meeting. These include planned reimbursements for electricity suppliers who have been forced to cover an estimated 800 million euros, overall, in subsidies offered by the state during the energy crisis as support for small and medium-sized enterprises; stricter market rules preventing consumers with unpaid bills from switching suppliers; as well as the imposition of a time limit, for users, on the country’s universal electricity supply service, offered as a last-resort solution by the top five suppliers, based on market share, to black-listed household and business consumers who have been shunned by suppliers over payment failures.

HEDNO liability for universal service abusers considered

The energy ministry is open to discussing further a proposal by ESAI/HAIPP, the Hellenic Association of Independent Power Producers, that calls for distribution network operator DEDDIE/HEDNO to take on the representation and cost of electricity consumers who abuse the country’s universal electricity supply service.

It is offered, by law, by the top five electricity suppliers, based on market share, as a last-resort service to non-punctual consumers who have been blacklisted by suppliers.

ESAI/HAIPP officials held talks last week with the energy ministry’s leadership on next-step measures that could be taken if a time-limit for the service, now being discussed, has been exhausted by universal service users.

Just one in ten consumers resorting to the universal electricity supply service are paying their fees, it was recently revealed.

The cost of these payment failures, along with the cost of electricity theft, is initially covered by electricity suppliers, who, in turn, pass on the financial damage to paying consumers.

Suppliers face bad-debt surge created by roving customers

Electricity suppliers are facing a surge in bad debts resulting from customers who opt to switch companies and leave behind unpaid bills, while just one in ten non-punctual consumers who have been blacklisted by suppliers and subsequently resorted to the country’s universal electricity supply service – offered, by law, by the top five suppliers – are paying fees for this service.

Energy company NRG’s general manager Anastasios Lostarakos, speaking to journalists at the Thessaloniki International Fair, highlighted these concerns and stressed the need for action, in the form of legislative revisions, to tackle irregularities, significantly burdening suppliers.

Article 42 of the country’s Supply Code requires immediate amendment so that suppliers may be protected from customers switching suppliers, despite facing unpaid electricity bills, Lostarakos noted. The longer the issue remains unaddressed, the deeper the financial hole for suppliers, he added.

Bad debt recorded by electricity suppliers has risen to 3 percent of revenue, up from 1 percent not too long ago, the NRG official highlighted. Also, financial losses resulting from the failure of nine in ten consumers to pay for the universal electricity supply service end up being passed on, by the participating suppliers, to punctual customers, the NRG official noted.

Electricity suppliers call for supply code overhaul

Electricity retailers share the same view as RAAEY, the Regulatory Authority for Energy, Environment, and Water, and the energy ministry in wanting the country’s new supply code to be revamped into a modern framework for the energy sector rather than a mere update of the existing set of rules, a teleconference between the authority and suppliers has highlighted.

Suppliers called for changes to most articles of the country’s current supply code. The teleconference was held as RAAEY is currently preparing a related proposal for the energy ministry. According to a related ministerial decision, the new supply code needs to be implemented by the end of the year.

RAAEY’s proposal will need to be ready for consultation by the end of November, according to market officials.

Given this time frame, RAAEY will need to get to work on revisions to the existing supply code within the next few days.

A common grievance voiced by electricity suppliers during yesterday’s teleconference included the absence of regulations that prevent consumers with outstanding electricity bills from switching to different suppliers.

The ease with which blacklisted household and business consumers who have been shunned by electricity suppliers over payment failures can resort to the country’s universal electricity supply service, provided – by law – by the electricity market’s top five suppliers, was another concern highlighted by power suppliers.

The extent of revisions needed to the supply code means that it could need to be rewritten from scratch.

Given the demands of such an overhaul, some suppliers have proposed that the effort be carried out over two stages, with priority given to more crucial matters, so that they may be implemented by the end of the year.

Ministry planning 4-month limit on universal supply service

The energy ministry plans to impose a four-month limit on the use of the country’s universal electricity supply service by black-listed household and business consumers who have been shunned by suppliers over payment failures.

The ministry has already forwarded a draft of its plan to all electricity suppliers for comments, by the end of this week, following a short extension, before it finalizes the revised service rules.

At present, black-listed consumers no longer accepted by electricity suppliers can rely on the universal electricity supply service for unlimited periods.

Provided collectively – by law – by the electricity market’s top five suppliers, based on market share, the universal electricity supply service has grown to become a key supplier.

According to most recent related data provided by RAAEY, the the Regulatory Authority for Energy, Environment, and Water, the universal electricity supply service served 210,415 power meters in May. This is nearly ten times over the total of roughly 22,500 power meters served a decade ago.

Electricity suppliers raise range of concerns, call for action

Electricity users shifting suppliers and leaving behind accumulating unpaid bills, a growing reliance, by supplier-blacklisted consumers, on the country’s universal electricity supply service, as well as electricity bill surcharges suppliers are required to forward to the state, regardless of whether customers have paid their energy bills or not, are some of the key problems distorting the electricity market and resulting in cash-flow problems, suppliers have noted, calling for immediate state intervention.

Current market rules concerning customer shifts from one supplier to another lack restrictions and, as a result, have encouraged a growing number of non-punctual customers to flee and leave behind unpaid bills, which have reached perilous levels and usually develop into bad debt, energy firm representatives participating at the recent Power & Gas Forum in Athens highlighted.

Another issue troubling the sector is the government’s electricity subsidy support policy for businesses using up to 35 kVA and bakeries. Suppliers are temporarily covering these subsidies but extreme delays concerning state reimbursements are being reported. These sums add up to hundreds of millions of euros for the sector, severely impacting cash flow.

Current price-setting rules in the retail electricity market, requiring suppliers to announce their tariffs for each forthcoming month by the 20th of every preceding month, are also troubling market players, as Panos Nikou, CEO at energy retailer Volterra, told the Power & Gas Forum. “We can’t just gamble on the 20th of each month,” Nikou remarked, describing the price-setting rules as high-risk and often loss-incurring for suppliers.

Power supply cuts up modestly in 2022 despite energy crisis

Power supply cuts executed by distribution network operator DEDDIE/HEDNO in 2022 increased by roughly 6,000 compared to 2021, a subdued rise given the ongoing energy crisis and increased energy costs for households.

The operator commended consumers for their ability to adjust to the extreme market conditions.

The number of consumers shifting suppliers in 2022 rose only slightly, to 588,000 customers, up from 555,000 in 2021, despite expectations of greater mobilization in 2022.

However, unrestricted usage, by consumers, of the country’s universal electricity supply service, covering the electricity needs of black-listed consumers who have been shunned by suppliers over payment failures, is a problem for the market, Dimitris Vranis, Director of the Network Users Department at DEDDIE/HEDNO told last week’s Power & Gas Forum in Athens.

The universal service’s current framework, offering consumers usage over limitless periods, has been loss-incurring for suppliers.

Consumer reliance on the universal electricity supply service, up 12 percent this year alone, has grown considerably in recent years. It is provided collectively – by law – by the electricity market’s top five suppliers, based on market share.

 

Revised universal electricity supply service, after general elections

The energy ministry is considering to revise the country’s universal electricity supply service, which covers the needs of black-listed consumers who have been shunned by suppliers over payment failures, deeming changes are necessary as reliance on this service, up 12 percent this year alone, has grown considerably over recent years.

Provided collectively – by law – by the electricity market’s top five suppliers, based on market share, the universal electricity supply service has grown to become the country’s sixth-largest electricity supplier, serving over 210,000 power meters, up from roughly 22,500 a decade ago, Vassilis Zouvias, Director of Regulatory Affairs at energy company NRG, highlighted during last week’s 4th Power & Gas Forum in Athens.

Just 9 percent of consumers using the universal electricity supply service pay their energy bills on time, while over 60 percent end up not paying their bills at all, the official noted.

Also speaking at last week’s forum, Dimitris Tsalemis, Director General for Energy at the energy ministry, noted these figures do not reflect the goals of the universal electricity supply service, adding “something needs to be done.”

New energy ministry proposals will aim to reshape the universal electricity supply service so that it offers attractive tariffs for participating suppliers through a competitive procedure organized by RAE, the Regulatory Authority for Energy, rather than administratively by the energy ministry, Tsalemis pointed out.

However, changes to the universal electricity supply service would previously require revising the retail electricity market code and, therefore, a legislative amendment, expected to take place following the forthcoming general elections, to be held in May, according to a latest update offered just days ago by Prime Minister Kyriakos Mitsotakis.

 

 

Universal supply service takes on 50,000 extra meters in 2022

An estimated 50,000 low-voltage consumers around the country resorted, in 2022, to the universal electricity supply service, covering the needs of black-listed consumers who have been shunned by suppliers over payment failures, latest electricity market figures have shown.

The number of households and businesses now being supplied low-voltage electricity via the universal electricity supply service – provided collectively, by law, by the electricity market’s top five suppliers, based on market share – rose to a level of approximately 198,000 at the end of 2022, up from roughly 148,000 a year earlier, a sharp rise highlighting the troubles consumers are having covering electricity bills amidst the energy crisis.

Given these figures, the universal electricity supply service, charging consumers higher tariffs, is ranked sixth in terms of power meters represented, essentially meaning that only power utility PPC, the dominant retail market player, and four other electricity suppliers hold greater market shares.

PPC ended 2022 with 80,000 fewer low-voltage customers, after losing some 255,000 customers in this category in 2021.

Working groups to seek solutions for electricity bill payment evasion

Working groups formed by the energy ministry and RAE, the Regulatory Authority for Energy, to discuss measures aiming to prevent electricity consumers from switching suppliers, leaving behind unpaid power bills in the process, and also to stop consumers from exploiting a universal electricity supply service, covering the needs of black-listed consumers reported by suppliers for electricity-bill payment failures, will be discussed at a teleconference today.

A decision leading to the formation of these working groups to resolve the two issues was reached in late September at a meeting involving the energy ministry, RAE, and all the country’s electricity suppliers.

Recent market data showed an increasing trend in the number of households resorting to the universal electricity supply service.

It is provided by the country’s five biggest electricity suppliers, in terms of retail market share, who share the pool of old and new unwanted customers and provide the universal supply service, at a higher tariff.

 

Time limit for universal electricity supply service

RAE, the Regulatory Authority for Energy, has, according to sources, received orders from the energy ministry to impose a time limit on the period consumers can rely on a universal electricity supply service, covering the needs of black-listed consumers reported by suppliers for electricity-bill payment failures.

At present, usage of the universal electricity supply service by consumers with outstanding electricity bills has no limit, but higher tariffs are charged for the service.

It is provided by the country’s five biggest electricity suppliers, in terms of retail market share, who share the pool of old and new unwanted customers and provide the universal supply service.

Recent market data showed an increasing trend in the number of households resorting to the universal electricity supply service.

RAE has proposed the establishment of a collective debt-flagging system, which would be maintained by distribution network operator DEDDIE/HEDNO, based on consumer appraisals provided by electricity retailers.

Consumers who continue to not pay electricity bills through the universal electricity supply service will face electricity supply cuts, under the proposed revision.

 

 

Consumers switching supplier doubles, universal service up

The number of low-voltage consumers switching electricity supplier doubled in May, compared to a month earlier, despite the energy ministry’s imminent energy-crisis measures to be introduced July 1, suggesting consumers are panic-stricken and lack composure for a wait-and-see approach.

Latest electricity market figures covering May, still unofficial, showed a further rise in the number of households resorting to the universal electricity supply service, covering the needs of black-listed consumers who have been shunned by suppliers over payment failures.

The number of low-voltage consumers who have resorted to this universal electricity supply service, which also rose in April, by 5,000, now exceed a total of 170,000, May’s unofficial data showed.

By law, the electricity market’s top five suppliers, based on market share, contribute to the universal supply service. Higher tariffs are charged.

PPC loses 96,000 low-voltage connections in 3 months

Approximately 96,000 low-voltage consumers left power utility PPC for rival suppliers over a three-month period between April and June, 2020, market data released by distribution network operator DEDDIE/HEDNO has shown.

PPC is losing low-voltage connections at a rate of between 30,000 and 40,000 per month, the data showed.

In the third quarter last year, the power utility shed 2.4 percent of its 81.03 percent market share held in 2Q. This loss of PPC customers led to market share gains for all the independent players, the top five enjoying the biggest gains.

A total of 1.38 million low-voltage consumers had switched from PPC to independent suppliers by the end of the third quarter last year, the data showed. This essentially means that PPC was serving 5.39 million low-voltage consumers at the end of the third quarter.

Independent supplier Protergia, a member of the Mytilineos group, ranked first among the independent players in 3Q last year with a market share of 3.36 percent and 228,000 supply connections, the data showed.

Elpedison followed closely behind with a 3.24 percent share and 220,000 supply connections. Heron was ranked third among the independent players with a 2.63 percent share and 178,000 supply connections, followed by Watt & Volt with a 2.39 percent market share and 160,000 connections.

The DEDDIE/HEDNO also showed a large transfer of low-voltage consumers to the universal supply service offered by suppliers, by law, at higher tariffs, to households blacklisted for unpaid electricity bills.

A total of 146,000 universal service connections were recorded in 3Q last year. The market’s top five suppliers are required to offer this universal service to sidelined households.

Electricity consumer switches reach 285,000 in first half

A total of 285,000 households switched electricity supplier in the first half of 2020, while less than one in eight have made the shift over the past five years, retail electricity market data made available to energypress has shown.

Since 2015, when the retail electricity market was essentially liberalized, 986,000 consumers of 7.58 million in total have switched electricity suppliers, the data showed.

This slow movement has kept power utility PPC’s retail electricity market share at relatively high levels. The corporation held a 67.61 percent share at the end of August, the data showed.

Customers who have taken the decision to switch to independent suppliers have also displayed strong loyalty. Just 144,000 electricity consumers have moved on for a second time during the five past years, according to the data.

Of the 285,000 consumers who switched suppliers in the first half, 208,000 left PPC, while nearly 35,000 ended up with a universal supply service provided by the market’s top five suppliers, at higher tariff rates, to households and small businesses rejected by their regular suppliers for unpaid bills.

 

Supply cut orders on the rise, suppliers toughening stance

Electricity suppliers forwarded 360,644 supply cut orders to the distribution network operator DEDDIE/HEDNO in 2019, most of these presumably targeting regular electricity bill dodgers. A total of 227,418 orders were executed, indicating the operator has toughened its stance, data released by RAE, the Regulatory Authority for Energy, has shown.

Nearly half of these consumers, or 111,298, who had their electricity supply cut by DEDDIE/HEDNO rushed to either fully settle amounts owed or register for installment-based payback programs in order to be reconnected to the network by the operator.

Subsequently, a considerable number of consumers, 116,120 in total, were left without electricity. 

Some of the electricity supply cut orders forwarded by suppliers to the distribution network operator may have been initiated by consumers no longer wishing to be serviced for a variety of reasons, including vacant property. The number of such cases was not specified in the RAE report.

Interestingly, suppliers submitted a total of 310,333 requests to cease representing consumers in 2019. Of these, 280,962 were executed by the operator.

Suppliers made these representation-ending requests in response to delays by the operator to execute supply cut orders for unpaid bills. As a result, unreliable and unwanted consumers were transferred to the country’s universal supply service, offering higher-priced electricity supply as a last resort.

Universal supply service overcharge set at 12%

Electricity consumers resorting to the universal supply service, covering the energy needs of households and small businesses shunned by suppliers for failing to be punctual with payments, will face tariff levels 12 percent over the regular market rate, according to a related ministerial decision.

The country’s five biggest electricity suppliers, in terms of retail market share, will need to share the pool of old and new unwanted customers and provide the universal supply service.

Previously, the market leader – consistently PPC – was forced to offer the service alone after suppliers chose not to submit bids to related universal service tenders.

Under the service’s new rules, the highest tariff rate among the top five suppliers will serve as the base for the 12 percent overcharge.

PPC, still dominating Greece’s retail electricity market with a 90 percent share of power meters, Protergia (Mytilineos), Heron, Elpedison – all three control 3 percent each – and NRG (1%) are the top five suppliers who, by law, must offer the universal supply service.

 

 

Top five taking on universal supply service, tender futile

A tender staged by RAE, the Regulatory Authority for Energy, offering electricity suppliers a two-year contract for universal supply service covering the needs of consumers who have been shunned for not being punctual with payments, has failed to produce a result.

Though the outcome of this procedure remains consistent with results of equivalent tenders in previous years, an imminent change of rules will require the electricity market’s top five suppliers, based on market share, to assume the universal supply service.  Higher tariffs are charged.

Until now, power utility PPC, as market leader, was forced to take on the job alone.

A ministerial decision on the rule change is expected to be delivered by deputy energy minister Gerassimos Thomas within the next few days.

The universal electricity supply service’s two-year contract starts on June 23.

Based on market data for April, the Greek retail electricity market’s top five suppliers are: PPC, Protergia, Heron, Elpedison and Watt+Volt. NRG trails slightly behind in sixth place.

Unlike other European markets, where the universal electricity supply service is a desirable venture, and, as a result, warrants competitive procedures, the equivalent service in Greece is typically neglected by suppliers as it has been abused by non-punctual electricity consumers exploiting the service as a safe haven.

Sidelined consumers using universal electricity supply up 511%

The number of users of a universal electricity supply service introduced almost a decade ago to cover the electricity needs of consumers shunned by suppliers for repeatedly failing to meet electricity bill payments increased by over 500 percent between late 2017 and the end of 2019, a RAE (Regulatory Authority for Energy) report commissioned by the energy ministry has shown.

The total number of the universal electricity supply service’s users grew from 22,127 in December, 2017 to 34,591 a year later, a 56 percent increase, before surging to 135,278 in December, 2019, a 511 percent increase.

The number of domestic users of the universal electricity supply service increased by approximately 38 percent between June, 2018 and June, 2019, rising from 20,423 users 28,252.

Non-household consumers using the service increased by roughly 16 percent during the aforementioned period, from 12,447 to 14,468.

Unpaid receivables by consumers using the universal electricity supply service, offered to sidelined customers at elevated tariffs, surged 511 percent between 2013 and 2016, from 5.6 million euros to 36.9 million euros, the RAE report showed.

Tougher terms are being prepared for the universal electricity supply service. RAE has proposed a three-month limit. No specific limit has existed until now. This has been exploited by a considerable number of electricity bill dodgers, or consumers deemed capable, even affluent, but unwilling to service accumulating electricity bills.

Natural gas market to also get universal supply service

The energy ministry plans to soon introduce a universal supply service for Greece’s natural gas market, guaranteeing troubled consumers a supplier, at a higher cost, should they be rejected by their regular supplier for not paying energy bills.

Authorities want to introduce a universal supply service for the natural gas sector as a result of the increased number of natural gas consumers.

A universal supply service is already offered for the electricity market’s low-voltage category, but tougher terms are soon expected to be introduced as a growing number of consumers have exploited its loose terms, including no time limit, and kept ignoring electricity bills. Authorities are now considering imposing a time limit of between two and three months.

Approximately 135,000 electricity consumers deemed financially capable of meeting the cost of their energy bills are believed to be exploiting the universal supply service at present.

Under the universal supply service’s new terms, energy supply will be swiftly disrupted if electricity or gas consumers fail to pay bills.

The correction by authorities is expected to make the universal supply service a more appealing prospect for electricity suppliers and intensify bidding at related tenders staged by RAE, the Regulatory Authority for Energy, for the service.

Should tenders fail to attract a supplier, then the five biggest suppliers will need to step in and provide the service.

RAE proposes tougher terms for universal supply service

The board at RAE, the Regulatory Authority for Energy, has decided on tougher terms for a universal electricity supply service introduced almost a decade ago to cover the electricity needs of consumers shunned by suppliers for repeatedly failing to meet electricity bill payments.

The authority, whose decisions are to be forwarded to the energy ministry in an advisory report, wants a three-month limit imposed on the universal service. No specific limit has existed until now. This has been exploited by a considerable number of electricity bill dodgers, or consumers deemed capable, even affluent, but unwilling to service accumulating electricity bills.

Under the RAE recommendation, consumers using the universal service will need to find a supplier once their three-month period has expired. Also universal service bills will need to have been settled prior to any move, according to the authority’s proposal.

RAE, in a second decision, has proposed that the market’s top five electricity suppliers – based on financial standing or market share – jointly provide the universal service if a competitive procedure fails to produce a winning bidder.

Until now, PPC has been required by law, as the dominant player, to provide this universal service because independent suppliers have been unwilling to do so.

Consumers are charged higher tariff rates for resorting to the universal service. At present, universal service tariffs are about 12 percent higher than regular tariffs.

Shorter time limit, higher rates seen for universal supply

RAE, the Regulatory Authority for Energy, and the energy ministry are working on stricter regulations for a universal electricity supply service introduced almost a decade ago to cover the electricity needs of blacklisted consumers shunned by suppliers for repeatedly failing to meet electricity bill payments.

The number of users of this universal service is estimated to have risen to 135,000. This figure is believed to include a considerable number of electricity bill dodgers, or consumers deemed capable, even affluent, but unwilling to service accumulating electricity bills.

The energy ministry is awaiting the findings of a RAE report before it takes any decisions to revise the service’s current rules, sources informed.

The introduction of a time limit, possibly three months, is one of the measures being considered, sources noted.

A tariff increase per KWh for this universal service, currently 12 percent higher than market rates, is another measure being looked at by authorities, according to sources.

Recent legislation aiming to reshape power utility PPC includes a law requiring suppliers to alternate in providing this universal service to blacklisted consumers if related competitive procedures do not produce a result.

Until now, PPC has been required by law, as the dominant player, to provide this universal service because independent suppliers have been unwilling to do so.

 

Stricter PPC hiring supervision among energy draft bill changes

A number of observations made during public consultation for an energy-sector draft bill concerning the energy market’s liberalization, power utility PPC’s modernization, gas utility DEPA’s privatization and RES support, including stricter recruitment control at PPC, have been incorporated into the bill.

The draft bill, submitted to Parliament last Friday, will now be distributed to parliamentary committees for discussion before being transferred to the house for ratification towards the end of the month.

The stricter recruitment control at state-controlled PPC will require inspections and approvals by ASEP, the Supreme Council for Civil Personnel Selection, during hiring procedures, not afterwards.

In another important draft bill revision, gas utility DEPA’s possible stake in the prospective Alexandroupoli FSRU would be held by DEPA Trade, a new DEPA entity being formed as part of the gas utility’s privatization. Previously, this stake was planned for the utility’s international projects division.

Furthermore, the new shareholders to acquire the Greek State’s 65 percent of DEPA Infrastructure, the gas utility’s other new entity in the making, will need to maintain this stake for at least five years.

Also, a universal electricity supply service covering the electricity needs of blacklisted consumers not wanted by suppliers for repeatedly failing to meet electricity bill payments, will require the market’s top five suppliers – up from three – to cover this sector’s market needs for two years if a competitive procedure for the service fails to produce a result.

Independent suppliers, repelled by market irregularities, have shunned this universal service since its introduction in Greece in 2011. This has forced PPC to step in, by law, as the dominant player.

The aim is to transform the universal service, offering electricity at considerably elevated rates, into an attractive market for local suppliers, as is the case in other European markets.

Tougher universal supply rules will aim to clear out abusers

The energy ministry is preparing drastic action over the next few months intended to shape up a universal electricity supply service introduced in 2011 as refuge covering the electricity needs of blacklisted consumers not wanted by suppliers for repeatedly failing to meet electricity bill payments.

Over the years, this service – now covering the power needs of approximately 150,000 small-scale consumers, mostly low-voltage households – has deteriorated into a getaway for electricity bill dodgers, or consumers deemed capable, even affluent, but unwilling to service accumulating electricity bills.

The service is provided by a supplier theoretically chosen through a competitive procedure. However, all independent suppliers, fearing the system’s widespread abuse, have shunned the process. As a result, the service must, by law, be provided by the dominant player – PPC, at present.

Rules concerning this universal service will be tightened to clear out the abuse, energy ministry sources informed. Also, DEDDIE/HEDNO, the Hellenic Electricity Distribution Network Operator, will be ordered to proceed with swifter electricity cuts for consumers exploiting the system.

Consumers either refusing to pay electricity bill arrears at regular suppliers or not servicing payback installment will be barred entry into the universal service, sources noted.

If the problems are resolved, the universal service, offering electricity at considerably elevated rates, will be transformed into an attractive market for local suppliers, as is the case in all other European markets.

 

Independent producers group opposes universal service role

ESAI/HAIPP, the Hellenic Association of Independent Power Producers, has raised objections to an energy ministry legislative proposal whose ratification would require the country’s three biggest independent suppliers to share the responsibility of a universal service supplying electricity to blacklisted electricity consumers who can no longer find a supplier as a result of poor payment records at previous companies.

Under the existing regulations, the state-controlled power utility PPC, as the dominant player, is providing this universal electricity supply service to sidelined consumers.

The objective of any revisions should be to correct distortions caused by existing regulations and the way these are implemented by the network operator, a PPC subsidiary, rather than to relay the problem to far smaller competitors, the association pointed out.

The bigger independent suppliers, each currently serving between 150,000 and 200,000 customers, compared to PPC’s far bigger client base numbering 6.5 million to seven million, would be placed under considerable pressure if required to take on this universal electricity supply role, ESAI/HAIPP noted.

Under current rules, the supplier covering this universal service’s needs is theoretically chosen through a competitive procedure. However, all independent suppliers have shunned the process. As a result, the service must, by law, be provided by the dominant player – PPC, at present.

The energy ministry’s draft bill would require the country’s three biggest independent suppliers to share this universal service responsibility if bidders refuse to show up for the competitive procedure.

Black-listed power consumers finding refuge in universal supply service

Thousands of black-listed electricity consumers no longer able to find a supplier as a result of poor payment records at previous companies are finding refuge through a universal supply service that was introduced in 2011 to cover the power needs of sidelined household and small businesses requiring capacities of up to 25 kVA.

Consumers no longer making the grade for supplier representation are legally entitled to apply for supply through this universal service, offering tariffs at elevated rates. RAE, the Regulatory Authority for Energy, most recently revised this rate to be 12 percent higher than tariffs offered by the power utility PPC.

The supplier covering this universal service’s electricity needs is theoretically chosen through a competitive procedure. However, all independent suppliers have shunned the process. As a result, the service must, by law, be provided by the dominant player – PPC, at present.

A draft bill prepared by the energy ministry and set to be presented for public consultation will include terms obligating the country’s three biggest independent suppliers to share this universal service responsibility if bidders refuse to show up for the competitive procedure, the ministry has noted.

Some 110,000 household consumers and small-scale businesses are estimated to be utilizing the universal service at present. PPC has been hardest hit in terms of the number of customers with arrears that have managed to flee.

A series of electricity market distortions have turned this service into a hideout for electricity consumers with poor payment records. These include consumers rated as able, even affluent, but unwilling to cover their electricity bill obligations. No time limits are imposed meaning the service can be enjoyed indefinitely.

According to PPC officials, the utility is identifying older debt-ridden customers of its own now using the universal service but cannot push for settlement of older debt as the service is regarded as a different entity by law.