Greece will reduce industrial companies' energy costs to save two struggling steelmakers, the government said on Tuesday, shrugging off objections from international lenders that the move might blow a hole in Athens' finances.
It was further evidence of the debt-laden country adopting a more assertive stance towards its creditors as it tries to soften the impact of bailout-imposed austerity policies on its depressed economy and mitigate record unemployment.
Halyvourgiki and Hellenic Halyvourgia, two of Greece's biggest steelmakers, said last week they would dismiss or suspend about 320 workers at their Athens factories because they could not compete due to high electricity costs.
This sparked a public outcry and Development Minister Kostis Hatzidakis said the government would override objections by the so-called «troika» of international lenders and introduce flexible power prices to lower the firms' costs.
Athens will push through so-called «interruptibility» agreements, under which big power consumers can briefly take their factories off the grid and get refunds from Greece's state-run power network operator, Hatzidakis said.
The troika has hitherto blocked such deals because it fears they could strain the finances of both the grid operator and utility concerns that would foot the bill. Greece's energy system nearly collapsed in a liquidity crisis in mid-2012 reports Kathimerini