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The licences of private providers of electricity in Greece have been revoked

24 January 2012 / 23:01:16  GRReporter
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The energy market liberalization in Greece died before being born, after the state revoked the licences of the two private providers of electricity for household needs. According to the management of the Hellenic Transmission System Operator (DESMIE) and the Public Power Corporation (DEI), Energa and Hellas Power owe them 27 million euro that was to have been paid by 20 January 2012. Since the amount has not been paid into the accounts of the two public companies within the specified term, the Regulatory Authority for Energy has revoked the licences of the private firms. Subsequently, it has forced more than 200,000 households to return to the state-owned DEI, the services of which they have intentionally abandoned.

The communication of the Regulatory Authority for Energy reads, "This development does not affect the continuous supply of electricity to the customers of private companies, as provided by the present institutional framework. These customers are not required to take any action. ENERGA and HELLAS POWER customer service will be automatically transferred to the Public Power Corporation DEI at 12:00 am on 25/1/2012, as provided by Article 57, Law 4001/2011."

The most common complaints of the Public Power Corporation customers are that it overcharges in its bills and forces citizens to pay them while equalization bills are issued with a huge delay, or never arrive.

Energa and Hellas Power

After it had been announced that the licences of the private companies Energa and Hellas Power had been revoked, their owner, Worldwide Energy Limited, submitted a detailed description of the obligations of public bodies to it. The management of the Hellenic Transmission System Operator (DESMIE) and the Public Power Corporation (DEI) owe Energa and Hellas Power 207 million euro in total, 40 million of which are from overcharging in bills for the wholesale supply of electricity in 2011. Proof of overcharged bills is the downward adjustment of the 2010 figures and the difference was returned to the companies last year, the headquarters of private providers of electricity noted in an open letter. Another 30 million euro in uncovered obligations come from the fact that public organizations have not included in the bill the 10% discount in the price of clean energy production as agreed. Thus, all suppliers and exporters of electricity in Greece have overpaid by 10% for electricity to DEI from 30 September 2010 to date.

Public enterprises have imposed one more restriction on private companies, according to which new consumers are not allowed to switch to private providers until they pay the full amount of the extra real estate tax. It was imposed in the autumn of 2011 and Worldwide Energy Limited insist that such a restriction is not legally grounded and cost the company another 90 million euro in losses from potential sales. "On the other hand, DEI continues to connect to the grid customers, who belong to the two private companies, although they have not fully paid the extra tax on real estate. This proves the mean method of action and that the aim is to close the market. "

The list of violations and unpaid obligations of public manufacturers and suppliers of electricity to their private partners submitted by Worldwide Energy Limited is long, but for the time being it is not changing the decision of the regulatory authority.

Tags: EconomyMarketsCompaniesElectricityGreeceDEI
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