According to recent remarks by Development Minister Mr. Akis Tsochadzopoulos, the government it is not bound to immediately approve the Public Power Corporation’s (PPC) demand of last Tuesday for a 4 percent increase in electricity rates as of July 4, and that the final decision will be “of a political nature.” “The demand does not mean acceptance and does not mean PPC will get what it seeks. We shall review the facts, its annual consuption data, costs and whether the adjustment is ultimately justified,” said Development Minister Akis Tsochadzopoulos- an answer indicating that the government will consider long standing objections by the Regulatory Authority for Energy (RAE) regarding PPC’s cost data. He also said any hike will not retroactively apply as of July 1. Earlier, PPC’s labour union GENOP-DEH denounced the government for its plan to exclude the corporation – still a virtual monopoly – from tenders for supplementary power production designed to ensure sufficient capacity for the nation’s grid and enable private power generation, and the start of competition in the electricity market. Greece, is under considerable pressure from the European Commission to speed up reforms in order to end PPC’s monopoly.
PPC’s union is also reacting to the provision for private power exports and imports and called a 24- hour strike for July 3, while its members will start working to rule today. Union officials claimed that the government’s plan for private power generation will ultimately burden the consumer with higher prices. Tsochadzopoulos said “PPC’s present capacity will be insufficient next year” and that he would soon unveil a medium-term power energy plan until 2007 with the participation of private power generation.