The energy unites the Greek industry

By Harry Floudopoulos

The energy crisis directly affects not only the competitiveness but even the viability of Greek industry and for this reason immediate mobilization and effective measures are required. This is the conclusion that emerges from the joint announcement of the 5 industrial associations from all over the country, which sent a clear message of solidarity of the domestic industry in the face of the unprecedented crisis. It is important that, according to information, the mobilization and the decision to issue a joint statement-announcement took place in just one day, a fact that highlights the criticality of the period we are going through for the industry.

In addition, the 5 industrial associations wanted to send their message immediately after the intervention of Prime Minister K. Mitsotakis, who in his letter to the President of the European Commission submitted six proposals to limit the effects of the crisis. These proposals largely coincide with the findings and positions of the industry, a fact that is also pointed out in the announcement.

As for the content of the announcement, the industry is targeting the so-called “skyrocketing” profits of the electricity market. Specifically, according to the position of the industry, the real prices of natural gas in the Greek market (in Greece the price is shaped by the TTF stock prices of the previous month) do not justify the prices in the wholesale electricity market. In particular, the industries are talking about gas costs at 80 euros / MWh which normally had to be translated into wholesale electricity costs at 200 euros / MWh and instead the prices reach 360 euros / MWh.

The industries emphasize that the subsidy of 65 euros / MWh given for the month of March is not enough to cover the increased prices, while it is estimated that the crisis will last until the beginning of next year. “The country’s industry will be hit hard and there is a question of sustainability for most industries,” the statement said.

The 5 industrial associations call on the government to take more effective support measures within the framework set by the EU. and the taxation of the super-profits of electricity producers. At the same time, the government intervention in the formation of prices in the wholesale electricity market, following the example of other European countries, is considered a necessary condition for the viability of processing.

Finally, it should be noted that the European Commission has launched a public consultation on the Member States’ proposals for a new temporary state aid framework to support businesses – mainly energy-intensive ones – to address energy costs. The Commission proposal will allow temporary provision of liquidity to all companies affected by the current crisis, in the form of either guarantees or subsidized loans. Assistance is also proposed to cover the additional costs incurred due to the extremely high prices of gas and electricity. Here, too, support can be provided in various forms, including lending, mainly to energy-intensive businesses and energy-intensive consumers.