Bracing for winter power hikes

As Europe prepares for a winter of high prices by focusing on immediate support for households and small businesses, Greek Energy Minister Kostas Skrekas expressed concerns yesterday that the crisis may be prolonged until the spring, testing the social cohesion of EU member-states.

“Demand for gas is growing and if we have a severe winter... one cannot predict what will happen to gas prices with low reserves and limited production and supply,” he said yesterday at the Renewable & Storage Forum in Athens. He said it is incumbent on the government to implement immediate measures to support energy consumers and to draw up a medium- to long-term strategy that will ensure low energy prices, as well as zero carbon emissions.

Bearing this in mind, the Greek government is planning, in addition to the enhanced financial support package announced last week, to review the measures if the crisis continues beyond December.

The government is being assisted in this effort by the inflated fund – due to high CO2 prices – of the auctions of emissions rights. It also being assisted by the surplus for the same reasons of the special account for renewable energy sources (ELAPE).

According to official forecasts announced yesterday by the Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP), the surplus of ELAPE will end the year at €243.74 million. What’s more, if the revenues from the green levy on diesel are also factored in, the surplus climbs to €335.74 million.

This will easily allow the government to reduce the inflows of emission revenues directed to ELAPE initially to 40%, saving additional funds of €200 million in addition to the initial €150 million.