Two strong industry objections to the new RES bill

Of Thanks to Floudopoulos

The Union of Industrial Energy Consumers (EVIKEN) expresses its opposition to two regulations of the new bill on RES that has been submitted to the parliament and is being discussed in the competent committee of production and trade.

Specifically, EVIKEN reacts to the regulations for the guarantees of origin from RES production and for the planned way of calculating the new ETMEAR charge but also for the necessity for reserves on the interconnected islands and the retroactive charge from 2004 by increasing the debt.

In fact, this fact makes timely, according to EVIKEN, the request for reduction of SGIs for eligible industrial consumers, as provided by the Guidelines (CEEAG).

In more detail, as stated in the letter of EVIKEN, with article 226 of Law 4920/2022, a new sub-account ELAPE was established, through which the producers of the RES and SITHYA stations, which will be put into operation after 1.1.2021, will be compensated. The same article states that the revenue of this sub-account includes revenue:

from auctions of guarantees of origin (paragraph ab)

from a charge imposed on the freight representatives (paragraph cb) for the compensation of the new RES projects, which are put into operation after 1.1.2021 (new ETMEAR). A charge which will then be charged to their customers depending on their energy consumption and will be reflected in their tariffs.

EVIKEN points out that for this charge the existing system of discounts is not extended to the eligible categories of consumers of energy intensity industries but it is stipulated that a new CA is required in order for the respective unit reduced charge to apply.

EVIKEN points out that according to the new CEEAG Guidelines (21.12.2021) there is no possibility of imposing a charge / fee on suppliers for the financial support of RES, except directly to consumers.

The question therefore arises as to why the charge of the new ETMEAR is imposed on cargo representatives and not on consumers, ie it is not a regulated charge like the existing ETMEAR, even if there is prior approval through the RRF, according to EVIKEN.

Article 127 of the bill under discussion stipulates that the Institution of Guarantee of Origin as well as the Institution of Guarantee of Origin are determined by a decision of the Minister of Environment and Energy, which means that there may be an intention on the one hand DAPEEP, on the other hand, the Guarantee of Origin Control Body should not be RAE.

In the letter, EVIKEN expresses its concern regarding the forthcoming definition of the Energy Exchange as a issuer of guarantees of origin.

Maintaining reserves on interconnected islands

EVIKEN emphasizes in its letter that the bill correctly provides that in order to ensure the supply of the interconnected islands, Contracts for Emergency Reserve Resources are concluded, between IPTO and the holder of a license for the production of electricity from thermal power plants. , which are submitted to RAE for approval.

So far, no such contracts have been concluded, resulting in the need to compensate PPC for the services it has provided since 2004. These costs will be borne by consumers through the HFSF, according to EVIKEN.

It is therefore obvious that the HFSF is expected to increase on the one hand due to the investment costs of the interconnection projects of the islands, on the other hand due to the cost of maintaining thermal units as reserves.

It is also a fact that the SGI account is in surplus with the forecast that the surplus will cover the needs of the Energy Transition Fund.

Concluding, the letter of EVIKEN proposes to the ministry to proceed with the reduction of the SGI charge in the context of the approval of reduced ETMEAR, as also provided by the new EU Guidelines for State Aid (CEEAG).