ECONOMY

Electric shock in energy industry

The energy industry was in a state of shock on Tuesday following the appointment of Panayiotis Lafazanis to the helm of the Production Reconstruction, Environment and Energy Ministry.

An electricity market official explained that the “surprise is not just due to Lafazanis himself, but to SYRIZA’s pre-election positions on energy,” as the new government has opted to put its biggest advocate of nationalization in charge of a sector that is in the process of being reorganized due to bailout commitments and harmonization with European legislation.

For now the industry is trying to find out the intentions of the new government, especially in the electricity domain, where the biggest shifts are expected according to SYRIZA’s program. The industry is hoping for some dialogue before the government makes any moves rather than any “de facto decisions.”

The market also has its reservations about the decision to incorporate the energy sector within a “super-ministry,” as this in effect constitutes the downgrading of a vital pillar in the economy’s reconstruction, while there is widespread concern as to whether SYRIZA’s energy policies are compatible with the European Union policy for a single European energy market.