PPC, the Public Power Corporation, has been advised to transfer the cost reduction it stands to gain through new lower-cost CATs (Capacity Availability Tickets), estimated at 80 million euros, to energy-intensive industrial consumers, rather than offer them discounts, according to an email posted by a European Commission official on behalf of the troika, or the country’s creditor representatives.
The email’s advice, disclosed today by energypress, was sent by the European Commission official Carlo Viviani, a senior economist at the European Commission, to the Ministry of Environment, Energy & Climate Change’s leadership on December 22, to coincide with a scheduled PPC shareholders meeting.
Also in the email, Greek officials were warned that if the state-run company did not introduce new electricity rates for the industrial sector, based on PPC’s reduced operating costs, then the European Commission would consider the matter as unresolved. This would increase the risk of the discounts being classified as state aid by the European Commission, which could subsequently lead to a demand for their return, the European Commission official warned.
The email also noted that the “disruption management” plan – whose implementation will enable energy cost savings for major-scale industry in exchange for a reduction in energy consumption whenever required by the system operator – and, furthermore, a measure intended to offset emissions-related costs for industry, would also help PPC establish lower industrial rates.
Contrary to local intentions, PPC has not officially extended its discount-based pricing policy to the industrial sector for another year as a result of creditor intervention, the email’s content makes clear.
However, according to sources, PPC will soon commission a consultant to conduct a study evaluating the overall impact of the new CATs, “disruption management” plan, and the emissions-related costs offsetting measure on both the electricity market and the industrial sector. Once the study’s results are delivered, PPC will stage a shareholders meeting to decide on its new pricing policy for the industrial sector, the sources added. Until then, the corporation’s discount-based pricing policy, endorsed at a shareholders meeting last February, will continue to apply.