Greece's energy regulator is likely to approve a proposal by Public
Power Corporation SA for a 21.7% increase in weighted average
tariffs, financial daily Imerisia said Friday.
However, the newspaper, citing unnamed sources, said that
the Regulatory Authority for Energy would probably spread out the
increase over three years, with the largest hike expected in the first
year.
It also said the authority wasn't likely to approve another
request by PPC for an automatic tariff mechanism that would adjust
prices based on rising oil prices.
On Wednesday, PPC, Greece's dominant electricity provider,
unveiled a new strategic plan aimed at preparing the company for
increased competition as the country moves to further liberalize its
energy market.
Among other proposals, it requested higher tariffs to reflect its true cost of production.
Apart from the regulator, such a tariff increase would also
have to be approved by the Greek government, which up until now has
been reluctant to raise electricity prices much beyond the overall rate
of inflation.