Ministry must decide on price hike for power

In the Christmas week the government will have to reach an agreement on the extent of upcoming electricity rate hikes. The Energy Ministry is expected to withold its final decision on the issue until the last possible moment, according to the memorandum signed with the country’s creditors, with the rate increase set to apply from New Year’s Day.

In this difficult juggling act, the ministry will have to strike a balance between struggling consumers who will find it hard to cope with even a minimum increase, and securing the viability of Public Power Corporation and the electricity market in general, which is on the verge of bankruptcy and is in dire need of major rate hikes.

“The power bill will need to be serviced, otherwise we are creating a different kind of problem,” Deputy Minister Asimakis Papageorgiou told Kathimerini.

PPC has requested rate hikes of between 14 and 49 percent, but the Regulatory Authority for Energy (RAE) has recommended that the ministry approve about a third of the increase that PPC demands.

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