Moreover, one of the priorities of the Ministry of
Productive Reconstruction is to reduce electricity
prices.
According to recent statements by the Minister of
Productive Reconstruction, Environment and
Energy, “there is room for reducing power pro-
duction costs by 20% to 40%.”
Mr. Lafazanis effectively announced the reduction
of electricity prices for both households and busi-
nesses, pointing out, though, that “part of the
reduction in production costs will pass to end-con-
sumers”; and this because, as he said, “for the time
being we cannot reduce the tax on electricity”.
As far as the “room” for reducing production costs
is concerned, ministerial circles pointed to the
example of the recent changes in the mechanism
used for supporting flexible power stations, as
well as the reductions in fuel (oil and natural gas)
prices.
In regard to the position of the new government
on private electricity generating units, the Minister
stated that: “Large units have their own role to
play, within a specific context. Our own role is not
to be biased in favour of private interests. What
we will support, though”, he added, “is the public
role of the PPC in regard to the productive recon-
struction of the economy.”
In addition, Mr. Lafazanis announced changes in
the institutional framework that governs the oper-
ation and responsibilities of the Regulatory
Authority for Energy (RAE), stressing that these
changes will “be within the limits specified by
European regulations. The main policy will be
implemented by the Ministry,” he said.
The leadership of the Ministry is also sending the
message that, as part of the liberalisation of the
electricity market, it intends to comply with
European directives and regulations. However, it
has not yet officially stated what kind of policy it
will pursue in regard to the EU’s demands regard-
ing the private generators’ access to lignite
reserves (the European Court of Justice has also
ruled on the issue). Until now, this has been a pre-
rogative of the PPC. The scenarios, according to
which the leadership of the MinPREE was con-
sidering to tender lignite reserves in Elassona
and Drama, were belied.
In the field of international energy policy and inter-
national pipelines in particular, the leadership of
the Ministry has stated that the government will
develop a multi-level and multidimensional ener-
gy strategy of multiple relations and partnerships
will all countries, solely focused on maximizing
national benefits and serving national and public
interests.
has already initiated the procedure for the return
of a 35% stake that had been transferred to the
Hellenic Republic Asset Development Fund
(HRADF) in order to be sold.
In regard to DESFA (Hellenic Gas Transmission
System Operator), the Minister is waiting for the
European Commission’s decision regarding the
sale of a 66% stake to Socar, with which an
agreement has already been signed. According to
certain sources, it is very likely that the Ministry
will accept the decision of the European
Commission, in case the latter gives the go-
ahead for the sale of the stake to the state gas
utility of Azerbaijan.
Trade with Greece
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