Filenews 9 February 2024 - by Chrysanthos Manoli
In many respects, today's meeting of EAC's new Board of Directors is considered crucial, which, due to the pressing situations that have been created in the energy field, fell into the deep end early on and is called upon to take important decisions. Some with the... assistance of the President of the Republic.
In addition to the decision to maintain or withdraw the request to CERA for increases of approximately 6% in electricity tariffs, the Board of Directors is called upon to make a final decision on the installation of two new gas turbines at Dhekelia station and mainly on how the Authority will recover the approximately €60 million. euros estimated to be required.
However, even if the decision will be positive, which is most likely, the Board of Directors must now initiate the fastest possible procedures so that the new units can be secured, obviously through tenders, to be installed and operational before the summer of 2025, that is, within 16 months, a very narrow margin, especially for semi-governmental organizations that have to be carried out and the obstacle of appeals to the Tender Review Authority. from unsuccessful bidders.
Phileleftheros reports that the option of purchasing second-hand gas turbines is also being examined, so that the cost is lower and their supply-operation faster.
"They won't make their money."
As philenews reported yesterday, last November the (previous) EAC Board of Directors approved the submission to CERA of an application for the installation of two gas turbines (using diesel) at the Dhekelia power station, with a capacity of 40 megawatts each.
The reason why the same issue is being reviewed by the new board. and even with the urgency procedure is due to reservations or objections maintained by some EAC executives and the designers who evaluated the viability of the investment for the upgrading of Dhekelia.
Our information indicates that a serious issue was raised in meetings of the previous board of directors and in meetings of directors regarding the financing of the upgrade of Dhekelia station. In particular, there are concerns that, given the expected operation of the competitive electricity market and the connection cable to Crete, EAC will become even less competitive and its customers will be burdened, for a project that is not considered necessary for EAC operationally, but is necessary for the stability of the country's electricity system and to ensure electricity adequacy in the summer of 2025 and beyond.
Both the designers and some EAC executives – and the previous Board of Directors – believe that the cost of installing the two gas turbines in Dhekelia should be borne by all electricity consumers, whether they are EAC customers or private business customers.
The letter to the minister and the money to ETYFA
According to philenews, the previous EAC board sent a letter to Energy Minister George Papanastasiou, asking him for the financing for the two new gas turbines to be covered through a special fee, over a five-year period, to be paid through the electricity bill by EAC customers and customers of private electricity producers, who produce at a much lower cost. as they are not burdened with expensive fuel.
EAC's standard investment financing procedure provides for the recovery of costs from the Authority's customers, through their accounts, in approximately 20 years.
The chances of the EAC proposal being approved by the Minister of Energy are very limited, as CERA, which favours the installation of the units by EAC in the context of upgrading its station, and the recovery of its costs through the usual procedure, i.e. over a period of 20 years, from EAC customers also disagrees. In this context, it is likely that a recent proposal by the previous Board of Directors of the Electricity Authority will be activated, which is also viewed with a good eye by the competent minister, for the withdrawal of EAC from the share capital of ETYFA (Natural Gas Infrastructure Company), so that the €43 million will be allocated to the Greek Electricity Authority. that EAC invested there to channel for the needs of upgrading production in Dhekelia.
The odds are tilted towards the approval today by the Board of Directors of the installation of the two gas turbines and recovery of the cost through the usual procedure that passes through CERA.
