YKO

Suppliers pressured by partial recovery of public service sums

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Distribution network operator DEDDIE/HEDNO has, since April last year, been partially covering monthly public service compensation (YKO) reimbursments entitled by the country’s electricity suppliers, a shortfall putting their budgets under pressure.

This deficit is expected to widen further over the coming months without any specific solution yet in place.

Electricity suppliers are recovering an average of between 60 and 65 percent of amounts they should be receiving, energypress sources have informed.

The public service compensation special account’s revenues have decreased as a result of a drop in wholesale electricity prices and retail electricity tariffs, but outlays subsidizing electricity used by consumers on the country’s non-interconnected islands and by low-income households have remained steady.

The country’s public service compensation special account entered deficit territory for the first time in April last year, and, as a consequence, as foreseen by sector regulations, DEDDIE/HEDNO has, over the past 11 months, been asking electricity retailers to partially cover amounts they should be receiving for public services. This essentially means electricity suppliers are financing public services with their own capital.

Consequently, respective amounts owed to suppliers are adding up to tens of millions of euros, a significant additional burden on their finances.

The public service compensation special account ended 2023 with a deficit of roughly 300 million euros, a level expected to be repeated this year.

The energy ministry is promoting a plan to divide this deficit into three sections so that it may be dealt with over as many years, beginning this year until 2026. The state budget would take on the biggest share, according to this plan, being discussed by the energy and national economy and finance ministries.

 

Extra budget sum needed for special a/c’s widened deficit

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Lower natural gas price levels in recent times and the subsequent drop in wholesale electricity prices have reduced retail electricity tariffs but widened the deficit of the Public Service Compensation (YKO) special account, meaning additional state budget money will be needed to fill the gap.

This special account’s revenues have decreased, while outlays subsidizing electricity used by consumers on the country’s non-interconnected islands and by low-income households have remained steady.

Just weeks ago, energy ministry and finance ministry officials determined, during talks, that a sum of roughly 300 million euros would need to be drawn from the state budget to partially cover the Public Service Compensation (YKO) special account’s deficit. However, given latest conditions, an additional sum of at least 100 million euros in budget money will be needed.

The two ministries reached an initial agreement on the state-budget sum required in mid-February, but ensuing calculations following a significant drop in wholesale electricity prices revealed that the Public Service Compensation (YKO) special account’s deficit has widened further.

The additional state-budget sum of at least 100 million euros needed for this account may require officials to revise an earlier plan dividing its deficit, estimated at 700 million euros, into three parts for gradual coverage between this year and 2026.

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.

 

PPC’s energy-sufficiency plan for Crete forwarded to Brussels

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An energy-sufficiency plan to cover Crete’s energy needs until an electrical grid-link with Athens is completed for commercial launch, expected within 2025, is now close to being finalized and has been forwarded to the European Commission for approval, energypress sources have informed.

A remuneration formula chosen for the island’s energy-sufficiency plan involves state aid and, as a result, requires Brussels’ approval.

The energy ministry has awarded Crete’s energy-sufficiency project to power utility PPC after alternative solutions involving Heron and Motor Oil failed to make progress.

For its Cretan plan, PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease – for two years, until 2025, and then purchase – the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the Heron I power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The energy ministry is soon expected to bring to Parliament a legislative revision covering the energy-sufficiency plan for Crete.

 

Ministry to seek state budget support for special a/c deficit

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The energy ministry plans to seek state budget support for the public service compensation (YKO) special account’s deficit, now close to 600 million euros and widened by 300 million euros in a year.

This special account, normally subsidizing high-cost electricity production on non-interconnected islands through YKO surcharges included in all electricity bills, experienced a wider deficit last year as a considerable proportion of its inflow was channeled into the Energy Transition Fund to fund electricity subsidies offered by the government to all consumers as an energy-crisis measure.

The energy ministry hopes this will be the final time state budget support will be needed to keep the YKO special account balanced. The ministry expects major YKO special account savings to result from the prospective Crete-Athens grid interconnection, planned for commercial launch in 2025.

The Crete-Athens grid interconnection project is expected to lead to an YKO special account surplus of 150 million euros in 2026.

Ministry set to table bill for Crete’s energy sufficiency plan

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The energy ministry is set to submit to Parliament a legislative revision covering Crete’s energy sufficiency plan, both before and after the island’s electrical grid interconnection with Athens, which is scheduled for commercial launch in the summer of 2025, energypress sources have informed.

The revision will pave the way for power utility PPC, which has undertaken the task of ensuring Crete’s energy sufficiency, to proceed with its plan.

PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease, until 2025, and then purchase the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The support formula for Crete will need to be approved by the European Commission as it is regarded as state aid. The energy ministry will begin related procedures with Brussels as soon as its legislative revision is ratified in Greek Parliament.

PPC needs to take swift action to ensure Crete’s energy sufficiency for this coming summer, when the island’s energy deficit is projected to reach 190 MW.

 

RAAEY energy sufficiency plan for non-interconnected islands

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The energy ministry is close to finalizing a plan to resolve energy sufficiency issues of Greece’s non-interconnected islands following a series of meetings and exchange of opinions with power utility PPC, power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and RAAEY, the Regulatory Authority for Waste, Energy and Water, energypress sources have informed.

RAAEY, the sources noted, is currently preparing a plan for the ministry that contains details of a required legislative revision, which, when ratified, will enable PPC to proceed with its energy sufficiency plan for the non-interconnected islands.

The power utility has prepared a comprehensive plan designed to meet the needs of these islands until 2030, using everything from power coupling and gas turbines to batteries. The cost of these solutions is expected to range between 200 and 500 million euros, depending on the payback period and whether some units will be purchased, in addition to leases.

PPC has already reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

PPC agrees to buy GEK-TERNA power plant for coverage of Cretan needs

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Power utility PPC has reached an agreement with Greek construction and energy group GEK-TERNA for the purchase and transfer to Crete of the latter’s 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC, which has undertaken the task of ensuring energy sufficiency on Crete, plans to have the power plant transferred and reinstalled on the island in time for this coming summer, when energy demand typically peaks.

PPC has included Heron I, the GEK-TERNA gas-fired power plant, into its package of solutions for energy sufficiency on Crete, both before and after the completion of a grid interconnection project to link Crete and Athens.

PPC and GEK-TERNA are now expected to complete their agreement imminently so that the the power plant’s transfer and reinstallation procedure can commence as soon as possible.

As reported by energypress earlier this week, the two companies had been engaged in advanced negotiations for quite some time.

An agreement for PPC’s purchase of the power plant was apparently reached by the two sides a while ago, but a remuneration formula for the power utility’s operation of the power plant on Crete, still not fully linked to the mainland grid, had remained pending.

At a meeting chaired by the energy ministry, a decision was reached to cover 75 percent of the power plant’s remuneration through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills. PPC will cover the other 25 percent.

The European Commission still needs to approve the remuneration formula as it involves state aid.

 

Ariadne Interconnection launch expected in summer of 2025

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Ariadne Interconnection, a 1.1 billion-euro project to link the power grids of Crete and Athens, whose installation has reached the final mile, is expected to be completed by mid-2024, and should be electrified in 2024, enabling its commercial launch in the summer of 2025, Manos Manousakis, CEO at Greek power grid operator IPTO, developing the project,  has informed.

Once Ariadne Interconnection is operating, Crete, Greece’s largest island with a population of roughly 650,000, will be supplied its electricity from the mainland system rather than costly power plants now operating on the island.

The interconnection promises to reduce a public service compensation surcharge included in electricity bills by some 600 million euros annually, 400 million euros of which concern Crete.

Some of the island’s existing power plants are planned to be maintained to provide roughly 400 MW as back up. They include power utility PPC’s main power plant on Crete, at Linoperamata, west of Heraklion.

The Ariadne Interconnection project’s main building facilities on Crete, an AC-to-DC conversion hall, and the control building, are now close to being completed. Manousakis, IPTO’s CEO, will be visiting the facilities today. Corresponding facilities at the project’s Athenian end are also progressing.

The project’s completed smaller segment, running from Crete to the Peloponnese, has already benefited the island since its launch ahead of the summer of 2021, Crete’s first summer without power outages, Crete’s regional governor Stavros Arnaoutakis noted during a meeting with the IPTO chief yesterday.

The Great Sea Interconnector, a project to link the Cretan, Cypriot and Israeli grids,  estimated to be completed around 2029, promises to establish Crete as an energy hub, Arnaoutakis added.

Power bill surcharges left unchanged, budget money needed for special a/c deficits

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RAAEY, the Regulatory Authority for Waste, Energy and Water, has decided to keep unchanged, for 2024, two surcharges included in electricity bills, a RES-supporting ETMEAR surcharge as well as an YKO surcharge supporting public service compensation.

The authority, whose decisions, taken to protect electricity consumers from higher energy costs, has called for budget funds to be used to cover any resulting deficits to the special accounts for renewable energy and public service compensation.

RES market operator DAPEEP and distribution network operator DEDDIE/HEDNO, respectively managing RES and public service compensation special accounts, have both forecast account deficits for 2024.

According to sources, public service compensation special account data forwarded by DEDDIE/HEDNO to RAAEY showed a 300 million-euro deficit for 2023 and forecast an equivalent deficit for 2024.

The deficits have been mainly attributed to energy-crisis electricity subsidies offered to all consumers through funds transferred from the public service compensation special account to the Energy Transition Fund.

According to ESPEN, the Greek Energy Suppliers Association, a sum of 460 million euros was transferred to the Energy Transition Fund from the public service compensation special account between August, 2022 and April, 2023.

DAPEEP, the RES market operator managing the RES special account, informed RAAEY of a 196.74 million-euro deficit for 2023, sources informed.

RAAEY decided to keep the RES-supporting ETMEAR surcharge unchanged for 2024, at 17 euros per MWh, based on a wholesale electricity price average scenario of 111 euros per MWh for this year, which, according to the operator, would result in a RES special account surplus of 6.55 million euros at the end of 2024.

However, the wholesale electricity price average for 2024 will most likely end up below the 111 euros per MWh and result in a RES special account deficit.

The country’s wholesale electricity price has averaged approximately 100 euros per MWh since last summer.

PPC alternative supply plan for islands to save €200m by 2030

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The energy ministry appears willing to accept an alternative electricity supply plan for Greece’s non-interconnected islands covering up until the end of the decade and just presented by power utility PPC, based on the results of a study indicating that overall savings, also benefiting consumers, would reach an estimated 200 million euros until 2030.

The alternative plan would combine existing power stations and additional generators, wind turbines and batteries on all islands not yet connected to the grid, while old power stations encountering technical faults will be withdrawn rather than repaired.

This alternative supply plan’s cost is estimated at 400 million euros until 2030, compared to a 600 million-euro cost anticipated if the current system of old power stations plus generators, leased by PPC for extra generation every summer, continues to be relied on until every single Greek island has been interconnected.

A total of 41 old power stations operating on islands should have been closed down long ago for safety reasons. Despite their continued usage, the Greek islands need additional 80 percent capacity boosts each summer to cover heightened, tourism-related electricity demand.

Higher-cost electricity generated on the islands is subsidized through public service compensation (YKO) surcharges on all electricity bills. This would be lowered if the alternative plan is adopted.

Public service compensation a/c deficit widens to €200m

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The public service compensation (YKO) special account’s deficit has continued to widen since falling into deficit territory for the first time last April, recording, at the time, a 5 million-euro deficit that has since widened, reaching approximately 200 million euros in September, prompting the need for action.

The energy ministry plans to resort to the Energy Transition Fund for an emergency fund injection into the public service compensation special account in order to ensure its sustainability. Such an initiative action would spare the ministry from having to increase public service compensation surcharges included in electricity bills in order to cover the account’s existing deficit.

The emergency financing measure will be preceded by a relevant new survey from RAAEY, the Regulatory Authority for Waste, Energy and Water, to be delivered to the energy ministry. It will be based on revised calculations to be carried out by distribution network operator DEDDIE/HEDNO, managing the public service compensation special account.

Previous DEDDIE/HEDNO calculations forwarded to RAAEY had projected a 37 million-euro deficit for the public service compensation special account at the end of the year, a figure that will need to be revised, given the latest indications.

Public service compensation is paid by all consumers as electricity bill surcharges in order to help subsidize higher energy costs on the islands and support social policy for low-income households eligible for lower tariffs. Public service compensation payments by consumers are transferred to the public service compensation (YKO) special account.

Network usage charge hike increases electricity bill cost

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Electricity consumers face costlier electricity bills as tariffs now include an increased network usage charge, as of July with retroactive effect from May 1.

Authorities are also planning to soon increase public service compensation (YKO) surcharges, which will further increase regulated charges included in electricity bills.

Given the adoption of a new formula charging consumers mainly on the basis of the capacity of their installations and less on consumption levels, as well as the increased network usage charges, household consumers with three-phase installations are subject to higher charges than households with single-phase installations.

Households with single-phase installations, covering capacities up to 8 kVA, and electricity consumption levels averaging 2,747.3 KW, annually, the country’s average, can expect annual network usage charges of 74.35 euros, up from 62.68 euros, the level until April 31, a 19 percent increase. On a monthly basis, this increase works out to an additional 0.9725 euros for households with single-phase installations.

Households with three-phase installations, covering capacities up to 25 kVA, and, once again, electricity consumption levels averaging 2,747.3 KW, annually, can expect annual network usage charges of 149.72 euros, up from 71.52 euros, an extra 6.5166 euros per month.

Three-phase installations are most common in new homes, homes installed with heat pumps, electric heating and other systems for which single-phase supply does not suffice, as well as low and medium-voltage enterprises.

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.

 

Public service compensation account in deficit territory

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The public service compensation (YKO) special account has been in deficit territory since April, latest data has shown, despite a previous official forecast projecting it would record a surplus of approximately 510 million euros in 2023.

The issue was raised by Dimtris Fourlaris, energy-division deputy at RAAEY, the Regulatory Authority for Waste, Energy and Water, in a letter to distribution network operator DEDDIE/HEDNO.

In the letter, leaked yesterday, the authority’s deputy has requested an update from the operator that would include an extended forecast on the public service compensation special account’s figures for 2023 and 2024, as well as an estimate on what the contribution, into the special account, should be from the budget or consumers, through increased charges.

RAAEY will use DEDDIE/HEDNO’s updated information to prepare a proposal for the energy ministry concerning an adjustment of public service compensation surcharges included in electricity bills.

According to the RAAEY deputy, the public service compensation special account recorded a deficit of approximately 5 million euros at the end of April.

Energy ministry multi-bill at parliamentary committee

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Greek Parliament’s Standing Committee on Production and Trade begins is set to begin discussions today on a multi-bill covering a wide range of energy-sector issues. The committee’s talks are expected to continue during the week, but a date has yet to be set for the multi-bill’s tabling in Parliament for ratification.

Energy-sector issues included in the multi-bill include a formula for filtering out stagnant RES projects as a means of freeing up required grid capacity.

Non-auction tariff levels in 2023 for small-scale wind and solar energy projects of up to 6 MW is another matter included in the energy ministry’s multi-bill, as are power purchase agreement (PPA) rights for RES projects, instead of fixed tariffs, which were trimmed as part of the new deal.

Also included is an article concerning a compensation amount for gas company DEPA Commercial following the cost of its recent decision to cancel LNG orders, not required as a result of lower energy demand this winter.

It also includes revisions exempting businesses and farmers from public service compensation surcharges, included in electricity bills, worth 63 million euros.

In another section, the multi-bill includes terms increasing upper capacity limits to 100 kW on solar energy panels installed for net-metering purposes by churches, charities, NGOs and schools.

Moreover, the revisions include an EU formula to be adopted for the development of offshore wind farms as a pilot project off Alexandroupoli, northeastern Greece.

 

Enterprises, farmers spared of public service compensation fees

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An energy ministry draft bill submitted to Parliament on Wednesday for discussion expected next week includes a provision exempting energy-intensive enterprises in the low and medium-voltage categories, as well as farmers, from public service compensation (YKO) surcharges concerning  electricity bills between November, 2021 and March, 2022.

The energy-cost relief promised by this four-month exemption to consumers of the aforementioned categories is estimated to be worth approximately 63 million euros.

Public service compensation surcharge payments for these categories of consumers were initially suspended, from the end of 2021, at the height of the energy crisis, in order to ease their energy-cost burden.

At the time, government officials originally planned for these suspended public service compensation amounts to be paid at a latter date, once electricity prices had deescalated.

At the beginning of this year, the energy ministry noted these amounts ought to be abolished as a result of fiscal leeway provided by a surplus of the public service compensation’s special account.

Revisions aim to reduce energy cost for most consumers

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The energy ministry is moving ahead with three revisions intended to lighten the burden of electricity bills for most consumers. Two of the changes were included in a draft bill submitted to Parliament late last Friday night, while a third revision has been attached to a RES-sector draft bill forwarded for consultation.

These measures include a new formula changing the way a special levy imposed on electricity producers is calculated. It is planned to now be calculated as 5 percent of the average TTF gas index price, an initiative that should lessen the levy’s cost for electricity companies and, by extension, the cost of electricity for consumers.

This special levy on electricity producers was introduced in November at a fixed rate of 10 euros per MWh.

Also, several low and medium-voltage consumer categories – including industrial consumers and farmers – will be exempted from a public service compensation (YKO) charge included in electricity bills.

In addition, a legislative revision is planned to pave the way for power purchase agreements (PPAs), offering industrial consumers renewable energy supply agreements over long-term periods.

IPTO announces provisional contractors for island substations

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TERNA and a partnership comprising Nari and Electromec have been named provisional winners of a tender staged by power grid operator IPTO for contracts to develop substations at the Greek islands Folegandros, Milos and Serifos, all planned to be interconnected to the mainland grid by 2025.

TERNA was named provisional contractor for the development of substations on Folegandros and Milos, the first section of the tender, while Nari and Electromec were named provisional contractors for a substation on Serifos, the second section of the tender.

IPTO aims to have contracts signed for these projects by June. These two tenders are part of the fourth phase of grid interconnections linking the Cyclades with the mainland.

Interested parties faced a July, 6, 2022 deadline. A total of six companies or partners submitted bids for this tender, three for each section.

IPTO has already awarded contracts for the installation of subsea cables to link Folegandros, Milos and Serifos with the mainland grid. The winning bidders were announced by the operator last November.

Hellenic Cables was awarded a contract to install subsea cables from coastal Lavrio, southeast of Athens, to Serifos and from Serifos to Milos, two sections covering a total length of 170 kilometers and priced at 195 million euros.

The Prysmian group was awarded a contract to install subsea cables from Milos to Folegandros and Folegandros to Santorini, two sections covering a total length of 127 kilometers and priced at 150 million euros.

The 4th phase of the Cyclades grid interconnection is budgeted at 524 million euros in total, of which 165 million euros is being covered by the recovery fund.

Once completed, the 4th phase of the Cyclades grid interconnection is expected to reduce annual carbon emissions by approximately 150,000 tons, create grid capacity of up to 730 MW for the development of RES facilities in the region, and also significantly reduce public service compensation (YKO) surcharges added to electricity bills for subsidizing high-cost local power generation on Greek islands.

Public service compensation system revised, October launch

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Revised public service compensation (YKO) surcharges for electricity bills, recently announced by energy minister Kostas Skrekas, will come into effect as of next month, households of the previous system’s three consumption level categories facing a uniform rate of 1.7 cents per KWh.

The revised public service compensation system is expected to result in an additional 300 million euros, annually, for a risk hedging mechanism.

The revisions will result in a public service compensation increase of 1.01 cents per KWh for low-voltage consumption levels of up to 1,600 KWh during a four-month period, as this category’s existing rate is 0.69 cents per KWh.

On the contrary, the public service compensation cost for households using greater electricity amounts will be reduced as the existing surcharge for consumption levels between 1,601 and 2,000 KWh is 5 cents per KWh and 8.5 cents per KWh for consumption over 2,000 KWh.

Medium-voltage consumers will face a public service compensation increase, from 0.69 cents per KWh to 1.7 cents per KWh.

The public service compensation surcharge rate will remain unchanged at 4.14 euros per MWh for energy-intensive industrial consumers.

Under the new system, farmers using low-voltage electricity will face increased public service compensation surcharge rates, as will municipalities, for their road lights.

 

Hedging tool to collect up to €500m annually for crisis aid

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Authorities estimate a new Permanent Hedging Mechanism will accumulate an annual sum of between 350 and 500 million euros, for consumer subsidy support, through public service compensation (YKO) surcharges included in electricity bills.

According to energy minister Kostas Skrekas, the new mechanism will operate as a prospective reserve Energy Transition Fund and will be used should energy prices rise further to help fund consumer support initiatives.

“With this risk hedging tool, we are shielding and protecting the people of Greece from any future painful energy crises,” the minister noted.

Under the plan, public service compensation surcharges for three existing household consumption categories will be set at one level. As a result, public service compensation charges for households consuming up to 1,600 KWh per four-month period will be increased by 1.01 cent, from the existing level of 0.69 cents to 1.7 cents.

This means that public service compensation charges for households consuming greater amounts will actually be reduced as current YKO rates for consumption levels of between 1,601 and 2000 KWh per four-month period are 5 cents per KWh and 8.5 cents per KWh for consumption levels of over 2,000 KWh per four-month period.

Households consuming up to 1,600 KWh per four-month period should expect to pay additional public service compensation charges of 4 euros per month.

 

 

Industry may be spared of public service compensation cost

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Energy minister Kostas Skrekas has, for the first time, in public comments, left open the possibility of industrial enterprises being spared of paying public service compensation (YKO) amounts for a five-month period covering November to March, as part of an effort to reduce industrial energy costs.

“We will assess the public service compensation account’s revenues and, if deemed necessary following the five-month period, will gradually impose these charges,” the minister noted at an event focused on industrial energy cost.

Speaking at the same event, Giorgos Xirogiannis, deputy general manager of SEV, the Hellenic Association of Industrialists, underlined the problems faced by industrial producers as a result of the sharp rise in energy costs.

Greek industry is currently 20 to 30 percent less competitive than European industrial enterprises, the SEV deputy noted.

He raised a series of energy cost-related issues that need to be addressed, including the YKO surcharge added to electricity costs, distribution costs and energy taxes.

Investments in renewable energy infrastructure and networks need to be accelerated in coming years for the achievement of a favorable energy mix balance, the SEV official added.

Also, the impact on the cost of energy of the EU’s “Fit for 55” package, aiming for a 55 percent reduction of carbon emissions by 2030, compared to 1990 levels, needs to be discussed, the SEV deputy added.

 

Island grid links result in initial public service savings for 2022

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The public service compensation (YKO) special account, subsidizing higher-cost electricity generation on non-interconnected islands as well electricity costs for low-income households, is expected to end the year with a modest surplus, July’s launch of the Crete-Peloponnese grid interconnection being a key factor, paving the way, in 2022, for reductions of YKO surcharges included in electricity bills, energypress sources have informed.

A precise figure on the extent of the YKO special account surplus for 2021 is expected in October, when the distribution network operator, DEDDIE/HEDNO, managing this account, submits a related report to RAE, the Regulatory Authority for Energy.

As is the case each year, the report will include financial details on the YKO special account for the current year’s first ten-month period as well as the operator’s projections for the final two months.

YKO savings resulting from the Crete-Peloponnese grid interconnection are worth approximately one million euros per day, the overall benefit in 2022 estimated at 380 million euros, power grid operator IPTO informed.

The end of the energy isolation of the Cyclades islands Syros, Paros, Tinos, Mykonos and Naxos has led to YKO savings of approximately 70 million euros per day, IPTO officials added.

Public service compensation account savings are expected to nearly double by 2024, when the fourth phase of the Cyclades grid interconnection is expected to be completed and the Crete-Athens interconnection is scheduled to be launched.

Further ahead, towards the end of the decade, this account’s outlay will be subdued even more when interconnections in the Dodecanese and North Aegean are scheduled to be completed.

 

Public service compensation account deficit of €36m in 2020

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The public service compensation account ended 2020 with a deficit of 35.96 million euros, according to latest data provided by distribution network operator DEDDIE/HEDNO.

The account’s deficit was greatly restricted by the settlement of transactions concerning 2017, which led to an additional influx of 72 million euros.

At the other end, a settlement of payments concerning 2012-2016, plus an additional settlement for 2014-2016, led to respective account outflow of 21.9 and 21.7 million euros.

The public service compensation account received a 116.7 million-euro injection from the state budget in 2020.

An extensive investment plan being carried out by power grid operator IPTO will greatly reduce the public service compensation account’s financial needs over the next few years, according to Thanassis Dagoumas, chief executive of RAE, the Regulatory Authority for Energy.

Public service compensation account (YKO) surcharges included on electricity bills are used to primarily subsidize high-cost electricity generation on Greece’s non-interconnected islands.

RAE is expected to soon reach a decision on YKO surcharges concerning 2019.