ECONOMY

ADMIE wants power rate hike

admie-wants-power-rate-hike

In the next few days the Independent Power Transmission Operator (ADMIE) is expected to submit a demand to the Energy Ministry and the Regulatory Authority for Energy (RAE) for the extraordinary revision of the weighted average cost of capital (WACC) – which will mean power rate hikes for consumers – after realizing that the reduction of corporate tax from 29 to 24 percent will have an impact on the company’s revenues and profits.

The demand, according to sources, has already been informally communicated to the political leadership of the Energy Ministry, and will be presented again by ADMIE chief executive officer Manousos Manousakis at his meeting with Minister Kostis Hatzidakis next week.

Taxes constitute a vital parameter of the WACC. Based on the RAE code, the WACC revision must be made for the next regulation period (2022-25), but China’s State Grid, which controls ADMIE, is pressing for an extraordinary revision for 2020-21 to reduce the impact on the company’s revenues.

If ADMIE’s demand is accepted and the weighted WACC is revised upward, it will be followed by a similar adjustment of ADMIE’s charges for grid use that will be passed on to consumers through power bills.