Multiple shocks to industry from energy costs

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The domestic industry has been hit hard due to high energy prices, according to a survey by the Hellenic Industries Association. In particular, the manufacturing sector has been called upon to pay huge increases in energy tariffs, which have resulted in a consequent increase in production costs.

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In fact, SVE sounds the alarm bell, pointing out the risk of losing important foreign markets with negative consequences for the viability of companies and, of course, for the retention of existing jobs.

More specifically, according to the SBE survey conducted among 142 companies from all manufacturing sectors on the energy crisis and its effects, 88% of companies have received an increase in energy tariffs of more than 40%. Only 1% of businesses have seen increases from 10 to 20% while 11% say energy costs have increased from 20 to 40%.

According to industry responses, recent increases have increased production costs (22%), raw material prices (31%), intermediate product prices (25%) and transport costs by 20 to 40%. products (19%).

57% of the industries state that they passed the increases to the customers, as opposed to 33% that did not pass the increases.

At the same time, 50% of companies estimate that prices will remain at the same levels as today in the next half, 31% estimate that they will increase while only 11% predict a reduction in energy tariffs.

In the event of an increase in energy prices over the next six months, the effects will be significant. Specifically, sales (47%) and exports (44%) will be reduced by up to 5%. At the same time, 28% of companies estimate that profitability will be significantly pressured at a rate of 20 to 40%.

In order not to verify the ominous forecasts of companies for the immediate period, SVE proposes specific measures, which lead to a reduction in energy costs for industry and the preservation of jobs, said in a statement the president of SVE A. Savvakis. More specifically, the SBE proposes a package of seven interventions in energy policy and infrastructure upgrades:

Review the country’s energy mix to achieve the lowest possible prices

Acceleration of the institutional framework for the formation and implementation of RES energy storage.

Upgrading the infrastructure of the electricity transmission network, so that there is a possibility of receiving and distributing new electricity production, which can be produced by industry using e.g. photovoltaic cells.

Establishment of energy saving programs for industry, such as the replacement of energy-intensive electromechanical equipment and energy upgrades of all types of facilities, with an emphasis on production facilities.

Legislative initiatives for the expansion and direct operation of energy communities, for the ease of installation of virtual net metering and for the signing of bilateral contracts.

Photovoltaic installation subsidy program for companies that adopt the net metering process.

Planning a program to support the green transformation of domestic manufacturing companies, which will be included in the National Recovery Plan.

Finally, the Association proposes 4 medium and short-term measures:

Direct support of energy-intensive industries, with a subsidy that will be adjusted per professional sector, depending on the severity of energy costs in the operation of the company.

Institutionalization process of payment of electricity bills in more than six (6) installments.

Introduction of the obligation of fixed tariffs for small consumers.

Institutionalization of the disposal of electricity produced by RES with bilateral contracts, ie outside the Stock Exchange.

Source: Capital

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