ECONOMY

DEPA facing 100-mln-euro fine to Gazprom

Public Gas Corporation (DEPA) will have to pay a fine of over 100 million euros to Russian energy giant Gazprom in compliance with the “take-or-pay” clause in the agreement between the two companies, as a drop demand in 2014 has not allowed for the absorption of the quantities provided for in a deal in March.

DEPA has communicated with Gazprom and is preparing to submit an official request for quantities not consumed this year to 2015 to be rolled over, an option that is allowed by the contract, though the Russian company is not obliged to accept.

Besides the management of DEPA, the issue is also of concern to the major consumers of natural gas in Greece, especially its electricity producers, as the contracts signed with DEPA also include a take-or-pay clause in case it has to pay its supplier.

The changes introduced to the domestic energy market’s operation have drastically cut the operation of the natural gas-powered units, resulting in electricity producers being exposed to the take-or-pay clause. DEPA officials also hope the delayed onset of winter will see demand for natural gas rise in the coming weeks up to the end of the year.