ECONOMY

Energy market hurt by lack of competition

energy-market-hurt-by-lack-of-competition

The domestic electricity and natural gas markets suffer from a serious competition deficit as most consumers are customers of the state monopolies Public Power Corporation (PPC) and Public Gas Corporation (DEPA), which enjoy a dominant position and pay gas prices far above the European Union average, according to the first EU report on the State of the Energy Union issued on Wednesday.

The report, addressed to the council of EU state leaders, also highlights the huge dependency Greece has on imported energy sources, mainly oil and natural gas, as well as the high usage rate of solid fuel (lignite) in electricity production, which stands at 3.2 times above the EU average.

On the positive side as far as Greece is concerned, the report says this country is seen as able to play the role of electricity and natural gas distributor in the broader region.

The retail price of electricity in Greece remained below the EU average last year despite its rising course, while natural gas rates stayed above the EU average. The report also stresses the fact that four board members of the regulatory Authority for Energy (RAE) have departed without being replaced.