ECONOMY

RAE offers gift to natural gas power plants

The Regulatory Authority for Energy (RAE) intends to restore subsidies to private-owned natural gas-operated electricity production units amounting to 500 million euros per year, citing arguments that appear outrageous given its role and the financial state of the country.

Restoring the subsidy that had been abolished upon the recommendation of the country’s creditors would add an extra burden to Greece’s already heavy energy costs.

RAE is planing to reinstate the Variable Cost Retrieval Mechanism introduced in May 2008, which effectively offered a safety net for private natural gas-powered electricity units, as it secured payments for them that were higher than the prices on the regular electricity market. The above proposal is to be put up for public consultation by March 16, which also reveals a sense of urgency.