ECONOMY

Power rates set to jump

Energy Minister Giorgos Papaconstantinou admitted on Thursday to the Cabinet that the Public Power Corporation will very soon be unable to service its debts, and proposed for approval an average power rate hike of 9.2 percent to come into effect in the new year.

However the total burden on consumers will come up to 12.2 percent more than in 2011, as the rates the minister announced do not include the charge for renewable energy sources, which will rise by 3 percent, that was announced earlier this month.

The Regulatory Authority for Energy (RAE) will determine the exact rate rise depending on consumption by January 10. The original RAE proposal had been for a 16 percent rate increase, while PPC had asked for power rates to soar by 20 percent.