Greek consumers must return subsidies that covered renewable energy surcharge

Greek commercial consumers, mostly in the agricultural sector, must pay large sums to the state as they were ordered to return subsidies.

The government reduced in 2019 the so-called ETMEAR surcharge for the category as well as for industrial producers. The special fund is for the development of renewable energy projects. Consumers pay through their bills. However, the decision concerning subsidies was taken without the European Commission’s consent and now the administration in Brussels decided that part of the money needs to be returned. Agricultural consumers are the most affected.

The issue has caused great upheaval since just for 2019-2020 the payback is estimated at EUR 130 million. Much more are expected to be repayed afterwards for the years after 2020 and they also extend to other kinds of subsidies apart from the renewables surcharge.

A boost for the renewable energy account

This may be a significant blow for certain large consumers, but at the same time it is expected to help with the special renewable electricity account’s liquidity. Called ELAPE, it is held by the Renewable Energy Sources Operator and Guarantees of Origin (DAPEEP).

It is projected to reach a deficit of EUR 200 million by the end of this year. A potential influx from ETMEAR can reduce the gap and bring stability to DAPEEP and renewable energy producers.

Therefore, the measure is considered positive for the local renewable energy market, even as it creates a political headache for the Ministry of Environment and Energy.

The goal is to have instant payments to producers

In another notable development, DAPEEP’s payments to producers have started to lag. The operator managed in the past to dramatically reduce the time from between six and eight months to just one. Since recently, beneficiaries are waiting up to two months to be paid. DAPEEP’s CEO Giannis Giarentis has said the goal is to make the payments instant when the digitalization of its services and interconnection with banks are complete.