Thursday Jan 29, 2015 Search
Weather | Athens
14o C
8o 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

Greeces 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)  
Stocks recover after shocking three-day slide
Finance Ministry says Dijsselbloem visit will kick off debt talks
France says no waiver for Greece, maybe more time to pay debts
Greek banks rebound as govt cites inexperience for remarks
Six-car pileup on busy Athens road causes tailbacks
A crash on busy Kifissou Avenue in Athens early on Thursday morning led to a six-car pileup near the junction with Iera Odos but there were no reports of serious injuries. Traffic police wer...
Driver, passengers escape unscathed after Greek train derails
A train that had been en route to Volos, in eastern Greece, from the central city of Larissa, came off the rails shortly before 7 a.m. on Thursday, but there were no reports of any injuries ...
Inside News
SOCCER
OFI docked more points and banned until it settles debts
Crisis club OFI Crete has been banned from playing in the Greek Super League until it is able to clear mounting debts with its staff. The league said on Thursday that OFI would not fulfil it...
SOCCER
PAOK strikes deal with Portugals Ricardo Costa
PAOK announced on Tuesday its agreement with Portuguese international defender Ricardo Costa. The Thessaloniki club added that the player is expected on Wednesday to undergo a medical test a...
Inside Sports
COMMENTARY
Kotzias, Dugin and the EU
It has always been Golden Dawns position that Greece should not be a part of EU and US sanctions against Russia. Our national interests and geopolitical facts dictate this stance. This wa...
COMMENTARY
Islam and the cultural narcissism of the West
The recent attacks in Paris by the Yemen-based Sunni Islamist al-Qaeda group came as no surprise given their precursors in France and other Western countries in previous months. The Paris at...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Six-car pileup on busy Athens road causes tailbacks
2. Driver, passengers escape unscathed after Greek train derails
3. OFI docked more points and banned until it settles debts
4. EU extends existing Russia sanctions as Greece brings doubt over new measures
5. Stocks recover after shocking three-day slide
6. Venizelos to stay on as PASOK chief until May
more news
Today
This Week
1. Greece wants a debt break, but what about its poorer neighbors?
2. $11 billion wiped from Greek banks on nationalization threat
3. Investors turn on Tsiprass campaign to end austerity in Greece
4. Varoufakis says Russia row not about sanctions, but proper consultation
5. Greek banks rebound as gov't cites inexperience for remarks
6. Schulz warns Tsipras against straying from stance against Russia, ahead of Athens meeting
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greeks fork out nearly 5 pct of their incomes on telecom services
5. Greek Elections 2015: The day after | LIVE
6. Poll shows SYRIZA leading ND by 4 pct
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.