ECONOMY

CO2 price drop zaps need for electricity rate hike

The Environment and Energy Ministry announced on Friday there will be no increase in electricity rates on May 1, despite an original plan for a hike of 1.5-2 percent for low-voltage consumers, who comprise the majority of electricity users.

The government had agreed to link the rates to the cost of production and distribution as a part of the country’s bailout deal; however, a major drop in the international price of carbon dioxide means that the increase is now unnecessary.

The rate plans had been made when the price of CO2 stood at $6.3 per ton, while the current rate is below $4 per ton.