The increase is considered necessary to finance investments to upgrade the network
The continuation of EAC's investment program, so that problems in the electricity supply network are not observed in the coming years, requires the forwarding of a request to CERA for the implementation in 2024 of a 6% increase in electricity tariffs. The requested increase comes to cover the recovery of production costs.
With the intervention of the government to the d.s. of the EAC, the Authority will not insist on the request to recover the costs of 2023, amounting to 13%. However, we will not avoid the 6% increase. This rate translates into an increase of about 2 cents per kilowatt hour.
The d.s. with his announcement he notes that "the common goal (is) the sustainable strategic development of the EAC with responsibility towards society".
"Based on today's data and the difficulties society is facing, an evaluation of the data was made and the d.s. decided not to insist on this request," the same announcement states. In practice, EAC will absorb part of the investment costs.
Counterweight measures
The publication of the assessment by the Ministry of Finance of a possible extension of measures to limit the increased energy costs (reduced Excise Tax on fuel and subsidizing EAC bills) shows that the government is leaning towards extending the subsidy to relieve the pressure it is under.
The Minister of Energy, Giorgos Papanastasiou, said that the extension of the subsidy will depend on the budgetary possibilities. The cost of the existing subsidy (October – February) is €45 million. The Minister of Finance, Makis Keravnos, confirmed that the evaluation of the existing support measures in conjunction with the evolution of international prices is in progress and he will prepare a relevant proposal to the Ministry in due time Council.
DISY calls for a more ambitious plan to be drawn up for the rapid acceleration of the penetration of RES and energy savings.
"The endowment of the funds of the Recovery Fund and other European funds should be combined with additional national resources, all of which will be used for an integrated plan with final solutions and not just for the achievement of individual short-term goals", emphasizes DISY
AKEL calls on the government to extend the existing support measures for households and businesses, but also to adopt additional measures to relieve consumers, recalling that it has submitted a proposal for the taxation of the surplus profits of energy production and supply companies and the utilization of revenues to be generated for consumer support.