PPC concerned over rising cost of fuel

Public Power Corporation chairman and CEO Manolis Panagiotakis on Friday expressed concern over the cost of electricity in view of rising prices in oil, natural gas and CO2 rights.

Addressing an Economist conference in Athens, Panagiotakis said these developments were pushing production costs and electricity power higher. He added that energy cost was vital for every economy, particularly for Greece, adding that an improvement in competitiveness related with a reduction in labour costs up to 2014, was counterbalanced by an increase in electricity. Panagiotakis said that achieving a goal to raise the electricity industry’s participation in the country’s GDP to 12 pct from 9.0 pct currently, was in doubt if energy cost continued rising.

PPC’s head said replacing lignite with natural gas in electricity production would raise costs due to the needed new infrastructure and capital and said that the impact on supply safety and trade balance should also be accounted for.

Mihalis Verriopoulos, secretary-general in the environment and energy ministry, addressing the conference said the country needed to make maximum exploitation of existing energy infrastructure, adding that the country did not expect to witness any leap in energy demand because of mild economic growth, developments in demographics and energy-saving measures. He added that careful planning in the installation of new renewable energy source units was necessary and that action should be taken to support existing thermal units.

Source ANA-MPA
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