BSE: Difficulties in the smooth operation of production due to the crisis – 5 proposals for energy costs:

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It has been pointed out that imposing a €10/MWh tax on natural gas used to generate electricity will significantly increase electricity costs at a time when the country’s businesses are struggling to remain competitive.

Five proposals for the energy market and supporting the competitiveness of the industry were submitted by the Energy Committee of the BSE, headed by the president of the Association Dimitris Papalexopoulos, in a meeting with the Minister of Environment and Energy Kostas Skrekas and the political leadership of the ministry.

At the meeting it was pointed out that the imposition of a fee of 10 euros/MWh in natural gas used to generate electricity will add significantly to electricity costs at a time when the nation’s businesses are struggling to remain competitive.

According to the BSE at the meeting, the Commission also noted that the energy crisis is now creating objective difficulties in the smooth operation of production and in Greece, threatening energy-intensive businesses of all sectors. The adjustment must be achieved without seriously burdening the productive activity and competitiveness of Greek businesses, which would pose significant survival risks, both in the short and long term. But beyond the immediate response to the energy crisis, it was emphasized that the long-term assurance of electricity with a low carbon footprint is key to achieving the ambitious climate goals. Finally, the critical situation already experienced by European countries was noted, where the suspension of factories and the intention to relocate them to third countries outside the EU is expected to have negative consequences on the productive potential.

The five proposals presented by SEV are as follows:

1. Participation in Interruptibility. The industry is already implementing energy saving and energy consumption reduction actions, contributing significantly to the national effort, while it intends to participate in the short-term electricity interruption mechanism. However, the need to operate the mechanism in a way that does not affect its proper functioning was emphasized.

2. Bilateral contracts. The functioning of the energy market must facilitate the conclusion of bilateral contracts and not derail the planning and agreements between energy producers and consumers in practice. Alignment with EU regulations on the exemption of bilateral contracts from revenue ceilings will create mutual benefits for all parties.

3. Interconnection infrastructure and faster licensing. The acceleration of internal interconnection projects in the networks will contribute to the reduction of the dependence on higher polluting fuels (eg diesel/mazut) but also to the reduction of energy costs with multiple economic, social and environmental benefits. At the same time, it is extremely necessary to speed up the granting of connection conditions and permits, especially for RES projects.

4. Multiannual cross-border connections. The existing regime with cross-border connections of short duration acts as a deterrent to the creation of economies of scale and the acceleration of investments. It was proposed to institutionalize procedures for multi-year rights (over 5 years) in cross-border connections with other states.

5. Energy saving everywhere. The opportunity created by energy savings in public buildings, business facilities, households and transport, complementary to industry, was highlighted. Proposals that contribute to saving energy and maintaining low prices were discussed such as regular maintenance of heating/cooling systems, compliance with the specified internal temperature of buildings/offices, deactivation of cooling/heating systems in empty spaces.

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