Critical decisions are expected to be taken by RAE for put a limit on the accumulation of suppliers' debts to the Operators, before it's too late. This is, moreover, the political mandate given by the Ministry of the Environment to immediately and effectively clear up the problem of supplier debts, which are increasing dangerously.
Today, Thursday, the Plenary of RAE summoned the administrations of TEN-EPA, ADMIE and ADMEP to a hearing (the three «alleged» operators and managers), with the aim of clearing the debts of the providers to the three Managers and initiating solutions.
In the previous days, the Central Union of Municipalities of Greece (KEDE) held meetings with the Ministries of Interior and the Ministry of Environment, for the illegal withholding by suppliers of municipal fees, which now appear to be in excess of 70 million, with a lag of up to one and a half years.
Total supplier debts exceed €400 million and the aim of the RAE is to take steps to force companies to reduce it before it becomes unmanageable. It is estimated that around €240 million of settlements have been forfeited, while at least another €100 million is being serviced as normal.
Debt Satan
Inflated debts are the aftermath of the energy crisis that has sent energy prices soaring and with it the bills, leaving suppliers facing a wave of unpaid bills. For example, the 150,000 consumers who are part of the Universal Service, i.e. consumers whose supply contract has been terminated because they do not fulfil their obligations, owe more than €50 million. The electricity supply companies are unable to collect the debts from these consumers because they can't track down a large number of debtors to send them the bill... and the TEN-T does not have the data - as it should for the energy market - to send to the energy providers.
As the phenomenon is expected to intensify in the coming months, it is time for the RAE to draw a red line before the accumulation of debt becomes a systemic risk for the whole market.
From imposing fines to setting a deadline to proceed with capital increases under the threat of deletion from the supplier register, RAE is going to set limits to protect the functioning of the market.
Reports indicate that after today's meeting RAE will invite the companies that are in debt old or new (after the settlements) debts, in order to form a view and protect the market.
The debts to the municipalities
The plenary session will also raise the issue of the withholding of municipal fees from suppliers. According to estimates, the arrears to local authorities amount to EUR 60-70 million, while there are cases of delays of up to 16 to 18 months.
At the meeting with the Minister of Environment and Energy, Kostas Skrekas, with a delegation of the Central Union of Municipalities of Greece (KEDE), it was requested that the debts be paid within two months.
