ECONOMY

PPC rate hike in May could be smaller than forecast

The Public Power Corporation (PPC) is set to submit its revised energy production cost data to the Regulatory Authority for Energy (RAE) next week so that the latter can examine the figures and make its recommendation to the Environment Ministry regarding the electricity rate increase that will apply from May 1.

According to data that PPC had submitted at the start of the year for the approval of its first rate hike from January 1, this second increase next month as well as a final one on July 1 should amount to 4.25 percent each, for a total of 13 percent since last year.

However the hikes may end up being significantly smaller due to the original estimates of the pollution cost being excessive, as it has dropped some 40 percent within a few months, and also because of the major decline in the cost of power production as a result of the increased use of hydroelectric and photovoltaic units, which produce power at no cost.