Tuesday October 21, 2014 Search
Weather | Athens
24o C
16o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Troika insists on power rate hike

 Liberalization of the energy market depends on rationalizing prices, it says

By Chryssa Liaggou

Greece’s official creditors are arm-twisting Athens to accept an increase to electricity rates from July 1, threatening otherwise to block the loan by the Deposits and Loans Fund aimed at bolstering liquidity in the local power market.

The representatives of the European Commission, the European Central Bank and the International Monetary Fund -- collectively known as the troika -- have extensively studied the cash-flow problem in the local electricity sector and acknowledged the critical point it has come to, and are now willing to approve the 350-million-euro loan to LAGHE, the electrical energy market operator, and grid operator ADMHE, as well as to Public Power Corporation. The condition they are setting, however, is for the structural aspect of the problem to be solved.

The data that the troika has collected show that the problem is not temporary or just about liquidity, and will therefore not be effectively solved with snap measures. As a result, it will demand a set of terms, the most important of which is the rate hike from as early as this summer. It has also criticized the high guaranteed prices for energy from renewable sources.

The government is seeking a solution to these problems but in a way that would not diminish the positive climate in the renewable energy market, the only part of the energy sector that is still managing to attract investment interest at present.

The troika is adamant about the power rate hikes as out of the recent 13 percent increase only 1 percent went to PPC, and therefore the energy market, while the rest went to cover interest and other utilities. It also insists that there can be no real liberalization of the energy market unless rates reflect actual production costs.

ekathimerini.com , Friday May 4, 2012 (23:00)  
At loggerheads over role of the IMF
Hong Kong telecom group buys out Greek start-up
Local tourism could see more arrivals, investments next year
Troika exerts pressure using return date
Wage dispute hurts gov’t unity before troika return
Changes to the public sector wage structure are at the heart of a dispute within the coalition that has raised concerns about whether the government will be in a position to negotiate effect...
Most Britons want to see Parthenon Marbles back in Athens, poll shows
The majority of Britons think that their country should return the Parthenon Marbles to Greece, a new poll has found. According to the survey, which was conducted by the YouGov international...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
COMMENTARY
Stop moaning and get in the game
There are so many people who love spending their days talking about the crisis and proclaiming that they know exactly what needs to be done to solve the country’s problems. Some of them obvi...
EDITORIAL
Exorcising the ghosts
Developments last week held in store an uncomfortably realistic understanding of the risks engulfing the country. The massive sell-off in Greece’s stock and bond markets was a strong shock. ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. PAOK fans stop coach Markopoulos´s move to Olympiakos
2. At loggerheads over role of the IMF
3. Hong Kong telecom group buys out Greek start-up
4. Local tourism could see more arrivals, investments next year
5. Troika exerts pressure using return date
6. Wage dispute hurts gov’t unity before troika return
more news
Today
This Week
1. Greece must stick to reforms, says Schaeuble
2. Bakers encircle Thessaloniki's White Tower with giant 'koulouri'
3. Turkish vessel enters Cypriot Exclusive Economic Zone
4. European leaders pivot back to debt crisis after wake-up call
5. Hardouvelis does not see 'big surprises' in ECB stress tests
6. Stop moaning and get in the game
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Greece to contribute 1 mln towards Gaza reconstruction
3. Greece nearing bailout exit, says gov't spokesperson after IMF talks
4. Istanbul skyscraper casts shadow over Greece's banking ambitions
5. Coalition shooting itself in the foot
6. GPO poll gives SYRIZA clear lead over New Democracy
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.