ECONOMY

PPC considers electricity rate cuts

The management of Public Power Corporation and a foreign consultancy firm are together examining the possibility of reducing PPC’s electricity rates in a bid to respond to longtime demands by its major clients, as the power giant eyes the continuing drop in fuel rates (oil and natural gas) and the positive impact from changes to the wholesale market.

The PPC administration has already allocated the task of calculating the impact of the above factors on its costs to an independent consultancy and is expecting the results in about a month’s time. It is aiming to pass any benefits on to consumers.

Despite the considerable slide in crude oil rates, the equally significant expected drop in natural gas prices in the first quarter of 2015, and savings of about 150 million euros in total from changes to the wholesale market, PPC’s management believes there is little scope for electricity rate cuts.

PPC officials also point to the increase in costs paid for greenhouse gas emissions, as well as what they describe as the increased price of lignite, which is used for the production of electricity, to justify their reluctance to proceed to more general rate reductions.