Greece: Support package planned for energy sector may not be enough

, SEE Energy News

The effectiveness of the measures will depend on the depth and duration of the recession cause by the coronavirus outbreak. Greek authorities and companies in the energy sector have planned support measures with estimated combined worth of some 550 million euros for the following months, however, these measures may not be enough to help already constrained Greece’s energy sector.

According to the report by the International Monetary Fund, Greek economy is expected to shrink by 10 % in 2020 and if this trend continues in the next year, the 550 million euros support package will not be enough.

Greek authorities already announced an initiative offering lighter terms to electricity suppliers for surcharge payments to market operators. Electricity suppliers will be able to pay 30 % of their regulated charges to electricity transmission system operator ADMIE, electricity distribution system operator DEDDIE and RES market operator for April and May over four monthly installments. This measure alone is estimated to be worth about 200 million euros.

Also, Public Power Corporation PPC and its subsidiary DEDDIE have secured the European Bank for Reconstruction and Development (EBRD) loans, totaling between 180 to 200 million euros.