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Privatizations in Energy sector cause rift in Greek government

Energy Minister Panagiotis Lafazanis declared absolute negative towards privatizations in Greece’s energy sector. “There is not going to be any privatization in DEH [Public Power Company] in DEPA [natural gas distribution operator ] or ELPE [Petroleum Company]. I repeat what I have said until today,” Lafazanis told daily TA NEA.

Lafazanis insistence comes in sharp contrast with the Greek Reforms List and the commitments submitted by Finance Minister Yanis Varoufakis to Eurogroup and the country’s main lenders.

Asked by Ta NEA to comment on Varoufakis e-mail to Euro-partners that Greek authorities are bound to respect the process of those competitions are underway,”  Lafazanis appeared adamant and said that “No energy company will not be sold, no privatization will take place in the area of his responsibility.”

The daily notes, that already two privatizations projects are under way, that is the one of “power grind operator ADMIE” and the so-called “Small DEH”.

“Small DEH” describes the sale of 10 lignite units (total capacity 2,770 MW and hydroelectric plans). It is one of privatizations measures imposed by the Troika.

Lafazanis statements called Varoufakis in action who told Real FM this morning: “Greece will not cancel privatizations that have already been done but the law allows the government to change the terms of sales that are underway and examine their legality.”

Panagiotis Lafazanis is leader of the leader of Syriza’s Left Platform and has been involved in a number of disputes with the more moderate party leader and Prime Minister Alexis Tsipras. Lafazanis is said to be the one who would love to tear apart any agreement with the lenders and would favor an exit from the euro. Right after the new government was sworn-in, Lafazanis had declared to halt privatizations.

He had argued that “electricity and natural gas were very expensive in Greece and they did not help the citizens.” He favored a new model of PPC operation, but I don;t believe we have heard about it yet.

A number of disputes and disagreements are expected to be settled today afternoon at the meeting of the Parliamentary group of SYRIZA.

 

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7 comments

  1. Actually, the electricity isn’t that expensive. It’s all the other ‘stuff’ that skyrocket the bill…

  2. correct. I suppose he had in mind this “other stuff”. but natural gas is expensive due to extra tax since winter 2012.

  3. I have lived in Athens for 6 years and the price of electricity here is the cheapest of any place I’ve ever lived. It is 1/4 what I paid in the US. When people started having trouble paying their electric bill is when the ‘tax’ was added a few years ago to cover bailout payments. This amounted to a lump sum, payable immediately. The last three places I lived, it was 563, 765, and 787 euros, respectively, added at the end of the year, and the owners of the homes tried to make me pay it.

  4. when tenants were asked to pay the “property tax” on electricity bill this amount has to be deducted form the rent.
    Electricity as such makes 50% of the amount on the bill.

  5. PRIVATIZATION:

    Why would anyone want to own the electriity supply & delivery system of Greece
    This is a valid question.

    Q:- Why ?
    A:- To make money silly.

    Q:- BUT IS SUPPLYING ELECTRICITY TO THE NATION ACTUALLY A BUSINESS THAT WILL MAKE MONEY /PROFIT FOR THE OWNER.
    A:- NO IT WILL NOT.

    Now why would I say something so stupid, look at the customer base, the whole population of Greece will have to pay their electricity bill – or else.
    BILLIONS OF DOLLARS COMING IN EVERY QUARTER.

    * BUT – WHAT ABOUT THE OUTLAY
    * TO BEGIN WITH THE INFRASTRUCTURE IS OLD
    * IT NEED UPGRADING
    * IT ALSO REQUIRES CONSTANT & CONTINUOUS SERVICING & EXPANSION
    * WE ARE MOVING INTO CARBON TAXING REGIME
    * ALTERNATIVE METHODS OF ATTAINING ENERGY WILL HAVE TO BE INVESTED IN
    * THE ALMIGHT BUCK WILL HAVE TO BE SPENT HERE & IN A VERY BIG WAY
    * THE NEW OWNERS WILL HAVE TO BORROW & BIG
    * SMART METERS REQUIRE NEW & UPGRADED SOFTWARE REGULARILY TO THE TUNE OF MILLIOND OF US DOLLARS – I read an article about a state in the US that had to expand its power supply network & upgrade its smart meter software that is how I know & it cost $$$ into the milions.
    ALL BORROWED MONIES.

    So I can see why a government would want to off load such a white elephant but the insanity on the part of the enthusiastic, potential buyer defys commom sense.

    Do a bit of reasearch & see if I am not right.

  6. The thing is this.
    Electricity supply is essential.
    It is not a business, but an enabler of business.
    The equipment that delivers clean water to our homes & restaurants need electricity.
    Turn off the power & see how it will effect the nation & know that the electricity supply of any nation must be safe at all times.
    In private hands there can be shortages codting millions of dollars to the government & business.
    Lebanon has intermittent electricity supply due to the stupidity of the government & the greed of the private onwers.
    Ask them.

  7. Sell the Greek energy sector to the Greek people.