Greek energy runs out of steam

The energy market?s liquidity problems are going from bad to worse and waiting for the national election to take place next month is no longer feasible, according to a letter sent to the competent ministries by the chairman and chief executive of Public Gas Corporation (DEPA), Haris Sachinis.

He calls on the caretaker government to view the issue as a ?special national emergency? and act immediately in order to avert a blackout in early June, as DEPA will be then forced to shut down gas supply to the electrical energy producers that operate thermal units and owe it about 300 million euros.

It will also ask banks to forfeit the producers? guarantees so as to obtain the cash flow it desperately needs in order to cover its obligations to gas suppliers including Turkey?s Botas, Russia?s Gazprom and Italy?s ENI while its coffers are empty.

Sachinis added that the deficit of the Electricity Market Operator (LAGIE) has climbed to 400 million euros and is expanding by the day.