untitled design

The industry pays increases of 150 million euros / month in electricity

Of Thanks to Floudopoulos

The energy crisis we are experiencing has brought to the fore market market distortions in Greece and should be addressed not through temporary measures but through structural interventions. At the same time, the very risk of the crisis is the very existence of the industry not only in Greece but also in Europe.

According to data presented yesterday by the president of EVIKEN A. Kontoleon, during a conference organized by the Association of Industries of Central Greece on energy, recently we have quadrupled the prices of electricity and five times the prices of natural gas.

The increase in electricity prices above 250 euros / MWh has resulted in the Medium Voltage industries paying a total increase of 150 million euros per month.

This, according to Mr. Kontoleon, results in an increase in production costs from 20 to 40%, costs that can not be passed on to products or absorbed by industries.

The president of EVIKEN stressed that Greek industries are in a worse position than European ones as they do not have the ability to pre-purchase energy or do hedging through long-term contracts ensuring their costs.

As he said in the markets of Europe only 20% of the energy goes through the stock exchanges and 80% of the energy consumed comes from contracts concluded by producers and suppliers or consumers.

According to the president of EVIKEN, the Greek industry found itself without weapons in the crisis we are experiencing today, which has brought to the fore distortions of the market in Greece. He stressed that the crisis is not temporary as natural gas is the fuel for the transition and we will see explosions in fuel prices again in the future.

At the same event, the director of European and regulatory affairs of Mytilineos Nikos Keramidas stressed that the future of European industry depends on its access to the necessary quantities of energy at competitive prices.

Mr. Keramidas cited the example of a Dutch aluminum company which was shut down due to high energy prices by the crisis and noted that if there is no reaction then we will talk about the deindustrialisation of Europe.

He stressed that we will need gas for a long time and the energy transition should be done with proper planning to mitigate energy costs.

Mr. Keramidas stressed that regulatory stability is required and added that RES tenders do not help in the development of the market of bilateral contracts (PPAs) for industry.

For her part, Secretary General of Energy A. Sdoukou referred to the measures taken by the government to improve the energy costs of industry, such as the suspension of the payment of SGIs until March of 63 million euros and the increase of the amount that will allocated for carbon leakage from € 83 million to € 110 million.

At the same time, the government has asked the Commission to extend the interruption measure until the end of July 2022, in order to ensure a maximum amount of EUR 33 million.

The government has received from the Commission a set of technical questions regarding the structure of the measure and the involvement of the demand response, while there is optimism that it will provide the green light.

At the same time, the scheme for the green pool has been sent to the Commission for approval, through which bilateral RES producers’ contracts with industries will be concluded. Finally, the framework for net metering has changed in order to give more MW and to serve the industry as well.

It is noted that in the context of the event, a Dianeosis survey was presented which, among other things, found that a possible reduction of energy costs by 10% increases revenues by 1 billion euros and creates 21.5 thousand new jobs.

.

Source From: Capital

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular