Interim National Grid Tariff Adjustment

According to Article 30(1) of Energy Regulation No 447/2019, when reviewing and recommending national grid-related tariffs, the regulator (PEA) has to take account of tariff adjustments to reflect periodic changes in fuel cost, cost of power purchase (PPA), rate of inflation/deflation, and currency fluctuation. 

Although the recently conducted financial sustainability study concerning the national grid electricity supply, which considered the current macroeconomic situation, particularly the foreign exchange reform, has shown a revenue shortfall of 224 million dollars under the current tariff trajectory to achieve cost recovery by the utilities. ;

The Petroleum and Energy Authority indicates its position that the decision made by the government (i.e., the Ministry of Finance) to capitalize the debt of the two institutions, amounting to $1.97 billion, can enable both (i.e. EEP & EEU) to cover their service costs and service their debts with the existing grid electricity tariff without any additional tariff adjustments.

In its statement, the authority asserted that the decision is a step taken by the government to improve the financial position of the sector without causing any price hikes that would create financial and economic pressure on the community.