BUSINESS

Consumers in dark about potential rise to electricity bills

TAGS: Economy, Energy

Consumers have still not received a definitive answer regarding a potential increase in their electricity bills to cover the cost of charges for subsidized services, known as YKO, between 2012 and 2015.

The reason for the delay is that the Regulatory Authority for Energy (RAE) has proposed that part of the amount owed to the Public Power Corporation (PPC) for its outlay on YKO during the period in question should be covered by the state budget. However, Greece’s lenders have to approve such a payment and the government will have to come up with an equivalent measure that will provide 100 million euros of annual savings for the next two years.

RAE recently indicated that PPC customers would have to pay an extra 360 million euros via their bills between 2018 and 2022 for money that the electricity firm provided to YKO from 2012 to 2015. This money should have been collected at the end of each year in question but authorities failed to do so to prevent a hike in electricity bills.

The matter is complicated by the fact that PPC had been demanding 735 million euros before RAE decided that 360 million euros should actually be paid back to the electricity firm. It appears that PPC’s management is determined to mount a legal challenge against the number arrived at by RAE.

RAE has also suggested that in a bid to keep the cost for PPC customers down, the Greek state should return the special consumption tax that the power company has paid to supply fuel to electricity production units that it has installed on islands that are not hooked up to the national grid.

This proposal, however, would need the approval of the institutions, as well as for the government to find savings of equal fiscal impact in other areas.

RAE has also recommended a new set of charges for PPC customers. According to sources, the new rates would only lead to higher charges for those using large amounts of power and would bring costs down for average users.

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