Article by N. Androulaki: Ceiling in the retail energy price, the fairest and most efficient choice

Ceiling at the retail price of energy, the fairest and most effective choice, is the title of the article by the president of PASOK-Movement for Change, Nikos Androulakis, on the issue of the crisis in the price of electricity, in the newspaper “Ta Nea”.

In his article, the PASOK leader criticizes both the ND government and SYRIZA for their energy policy and develops the Movement’s proposals for dealing with the energy crisis.

More specifically, Mr. Androulakis notes:

“The energy crisis has left our country unprepared, with the result that Greek citizens are experiencing its effects much more intensely compared to other Europeans. The reason is that in the last several years there has not been a comprehensive planning for the country’s energy policy based on green geopolitical data but also the social and economic resilience of the country.It is characteristic that Greece was the only Member State that increased during 2021 its dependence on natural gas by 25% for electricity production, At a time when gas prices have risen to historic lows, exacerbating the problem, although the New Democracy government is primarily responsible, SYRIZA is not without responsibility for the huge energy bills received by Greek citizens. Obviously, I consider the fight against climate al which is the ultimate goal of humanity for the coming years. But in order to succeed, it must be done in a smooth and sustainable way, without creating new inequalities that will incriminate it in the eyes of the most vulnerable Europeans. As the Executive Vice President of the European Commission Frans Timmermans has repeatedly stated, the green transition will only succeed if it is socially just.

The violent withdrawal of lignite plants, as reflected in their drastic reduction of 50% in the energy mix, began under the SYRIZA government, but without a comprehensive plan to ensure the country’s energy security, nor for the future of the regions, whose economy is based on lignite. New Democracy then further reinforced the violent nature of de-lignification, initially announcing and recalling, under the weight of developments, the closure of all existing factories by 2023 and the maintenance of Ptolemaida 5, which has not yet entered the system until 2025.

So in the way it was applied, de-lignification was not at the same time carbonization, as we abandoned lignite and did not replace it with Renewable Energy Sources but with another fossil fuel, natural gas, thus giving a transitional fuel permanent characteristics. In fact, as we do not produce this fuel, our dependence on third countries has increased excessively, making us vulnerable to geopolitical games and speculation. As the example of Germany proves, which from 2012 onwards gently withdraws both coal and lignite, as well as its nuclear power plants, replacing them with RES, without increasing its dependence on natural gas, another way was possible for the country to be de-lignified.

At the same time, our country is facing serious regulatory problems. The energy exchange that the then SYRIZA government proposed and now denounces as opposition, copied a model from abroad, but did not adapt it to the specifics of the Greek market, which is characterized by low competition in the wholesale market and limited interconnection. Despite what Mr. Tsipras publicly supported at the time of his adoption, and even more so despite the outspoken proclamations of New Democracy when it began implementing it in 2020, even before the crisis, consumer tariffs were constantly rising instead of falling. At the same time, three years later, the percentage of electricity sold under long-term contracts that would offer price stability is zero. On the contrary, 100% of the energy in our country is sold daily on the stock market, while in Germany and France the corresponding percentage is 29% and in Italy only 11%. As a result, global price increases are being passed on to consumers through the well-known adjustment clause.

There are no easy solutions to deal with the consequences of the energy crisis. The repetition of toxic populism and discord of the past can only be considered as a bad joke.

Two weeks ago, during the Regional Conference of our Party in Kozani, which focused on energy issues, we presented a comprehensive plan with immediate solutions that can relieve citizens, as well as long-term measures to make our country resilient to fluctuations. of energy prices.

As a first immediate measure, which we have already proposed since January, is the imposition of a ceiling on the retail price of electricity, which would effectively cancel the implementation of the adjustment clause, keeping tariffs stable for as long as this crisis lasts with the cost shared with everyone. market participants. It is a decision that can be taken at national level even tomorrow because it is part of the measures proposed by the European Commission on 8 March to be implemented by the Member States, with the benefit of having consumers feel it directly in their pocket. On the contrary, the proposal of both Mr. Mitsotakis and Mr. Tsipras for imposing a ceiling on the wholesale, requires the approval of the European Commission, without being sure of its final result in the tariffs, as the energy exchange mediates for the formation of prices . The ones that are fully guaranteed are the big companies, which will be compensated for the difference by the State, while it is not clear how it will be ensured that they will transfer this benefit to the consumers as well. In addition, Spain and Portugal, which received the relevant approval from the Commission last week, are not only energy isolated due to the Pyrenees, which to some extent applies to our country, but also have a comparative advantage over us. . The participation of fossil fuels in the production of electricity for which a ceiling was imposed on the wholesale, is almost half in relation to our country, since in both countries it ranges between 29% and 31% while in our country it exceeds 57%.

At the very beginning we also put at the center of the public debate the need to create a fair mechanism that will tax the super-profits of the few and the skilled and finance the losses of the many and those unable to react to the dizzying rally of energy prices. The World Energy Organization estimates the super profits of energy producers at 200 billion euros for 2022 alone in the countries of the European Union. The companies’ balance sheets that are slowly being published confirm this. But the government is unreasonably delaying, depriving the State of significant revenues.

We must not forget that the best energy is the one we do not consume. Our country has one of the worst indicators of energy poverty. A comprehensive Savings plan is needed, with special prioritization for the most vulnerable households, so that they are better protected and more resilient to energy price fluctuations, as the ongoing program is too late in its processes and insufficient.

Another important pillar of our program that can have long-term benefits for both the environment and the citizens is the diffusion of RES in society, small producers and energy communities. At the moment, the Government is promoting the creation of large projects in one dimension, unlike other European countries. We propose the enhancement of self-production, through the installation of photovoltaics in homes, and the creation of energy communities, especially in the agricultural-livestock sector and in the processing sector. In this way, both the citizens and the country’s competitiveness will be better protected from fluctuations in fossil fuel prices.

To achieve this, however, investments in the network are required with the creation of new substations and its upgrade, as at the moment in most parts of the country the network is already oversaturated. The Recovery and Durability Fund is a great opportunity to make the necessary investments. Unfortunately, the government does not seem to be taking advantage of this opportunity, as the relevant projects it is including are very limited. Only 195 million are intended for the interconnection of the islands, 100 million for the enhancement of resilience and another 12 million for the increase of its capacity by 800 MW. In addition, there are no plans to extend interconnection with the rest of Europe. All of the above have economic implications, which citizens see as tangible in the electricity bill, in the utility bills.

“Our policy proposals for energy are realistic and capable of tackling the current energy crisis in a socially just way, but also of preparing us, in an age of great upheaval, for the challenges we may be called upon to face.”