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Greece’s Electric Network On The Verge Of Being Cut Off

Comments Off on Greece’s Electric Network On The Verge Of Being Cut Off

The power generation companies in Greece for some time are struggling to pay their bills. This time the natural gas supplier DEPA has called enough is enough, pay up or else. It’s the last thing a struggling economy needs and hopefully disaster can be averted.

ATHENS (Reuters) – Greece’s power regulator RAE told Reuters on Friday it was calling an emergency meeting next week to avert a collapse of the debt-stricken country’s electricity and natural gas system.

“RAE is taking crisis initiatives throughout next week to avert the collapse of the natural gas and electricity system,” the regulator’s chief Nikos Vasilakos told Reuters.

RAE took the decision after receiving a letter from Greece’s natural gas company DEPA, which threatened to cut supplies to electricity producers if they failed to settle their arrears with the company.

Source: Reuters

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Greek Government Provides Emergency Cash For Electricity Supplier

Comments Off on Greek Government Provides Emergency Cash For Electricity Supplier

Greece is on the verge of the electricity network collapsing, but the government is to provide €250 million in emergency funding to keep the lights on. You could argue that it was the fault of government policies that caused the situation in the first place. The power utility PPC was used as a property tax collector but ultimately many desperate people choose not to pay and have their electricity cut off instead. Greece also has to pay over the odds to secure fuel for generating power as a result of mistrust of suppliers of Greece paying its bills.

Greece will provide 250 million euros  in emergency funds to its ailing electricity providers to prevent a California-style energy crisis, government officials said on Friday.

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The temporary aid will shore up the accounts of main power utility PPC, allowing it to maintain operations and reimburse other suppliers of electricity and natural gas on whom the smooth functioning of the country’s energy system depends.

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Greece’s energy market has fallen into disarray due to a combination of stagnant power demand, rising fuel costs and a government decision to use PPC as a tax collection vehicle.
 
An increasing number of consumers stopped paying their electricity bills after the government started collecting a 1.7 billion euro property tax through them last year, in a desperate effort to meet its budget targets under an EU/IMF bailout.
 
Non-payments blew a hole into the accounts of PPC, which is Greece’s biggest power producer and its sole electricity retailer. PPC, which posted a record loss in the fourth quarter, is also the biggest client for upstart producers generating about 23 percent of Greece’s electricity.
Source: Athennews

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