Energy crisis: Athens’ demands on the Commission’s package of measures

Athens is heading to the extraordinary council of energy ministers of the E.U. next Friday, September 30, with two demands. The European Commission’s “package” of measures to deal with high energy prices is on the agenda of the extraordinary council.

According to information available to OT, at the crucial meeting of the 27 ministers, Greek energy minister Kostas Skrekas will express the Greek government’s support for the Commission’s draft regulation, seeking, however, in two of the three proposed measures, improvements to the provisions for the benefit of the policy followed in the country for supporting households and businesses.

What the Greek side seeks

The proposed measures of the Commission and the aims of the government are:

1. The imposition of a revenue cap on power generation technologies, except for natural gas plants.

The European Commission considers that electricity producers using RES, nuclear power, coal, water without storage, geothermal and biofuels have windfalls due to low production costs. In these units, it proposes a maximum payment limit for producers with a price of 180 euros per Megawatt hour.

Greece is the first country to implement this measure, having also imposed a cap on natural gas. It therefore requests to be exempted from the Commission’s proposal and to maintain the upper limit for this technology. As well as continuing to implement the revenue recovery mechanism model it started in July.

However, the government has prepared that if it does not get an exception, specifically for the ceiling on natural gas, it will continue collecting revenue from the imposition of a fee of 10 euros per Megawatt hour on the quantities of gas used by electricity generation. The revenues amount to 400 million euros per year.

2. Mandatory electricity demand of 5% in peak hours and with voluntary measures of 10% for the total consumption.

Greece claims, according to information, that the reduction in peak hours – a measure concerning energy-intensive industry – be optional. It is noted that heavy industries will be compensated when they reduce their electricity consumption.

3. The imposition of an extraordinary 33% tax on the excess profits of oil refineries for 2022.

The Commission considers as extraordinary profits those in excess of 20% compared to the average of the previous three years. Minister Kostas Skrekas last Saturday in his statements to SKAI television, said that the government will implement the regulation and the specific provision.

Greek refiners are reacting to this proposal by asking that the profits derived from the obligation to keep stocks and exports be exempted from taxation.