Saturday September 20, 2014 Search
Weather | Athens
27o C
19o 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)  
Record sum of new debts to the state in August
‘Greece can meet its needs on its own’
Cyprus civil servants´ strike called off
Elliniko investors eye Cyprus project warily
Mayors resisting evaluation to face disciplinary action
Mayors and municipal employees who refuse to take part in a civil service evaluation scheme the government has undertaken as part of commitments to international creditors will face discipli...
Fyssas rally demonstrators face prosecutor after clashes
Sixty-four people arrested in Keratsini, a suburb of Piraeus, on Thursday, following clashes with police during an anti-racist march marking the one-year anniversary of the murder of rapper ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their country’s independence or whether they will remain citizens of the “United Kingdom of Great Britain and Northern Ireland.” What was alread...
EDITORIAL
Breathing room
Even Greece’s biggest critics find it hard to deny that the debt-hit country has achieved an unprecedented fiscal turnaround within a very short period of time. Sure, progress in promoting t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Record sum of new debts to the state in August
2. ‘Greece can meet its needs on its own’
3. Mayors resisting evaluation to face disciplinary action
4. Fyssas rally demonstrators face prosecutor after clashes
5. PM in energy talks ahead of crucial meeting with Merkel
6. Attiki Odos Lamia exit to close Sunday
more news
Today
This Week
1. ‘Greece can meet its needs on its own’
2. Record sum of new debts to the state in August
3. Hardouvelis signals Greece may skip IMF loans to exit aid curbs
4. EIB signs deals with Greece for 815-mln investment in infrastructure projects
5. Dozens of arrests at march to mark anniversary of Fyssas murder
6. Syntagma metro station to close for Fyssas tribute concert
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. Lessons not learned
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.