Greece imposes charge on coal-generated power

Greece will impose a charge on coal-based electricity and cut the guaranteed tariffs it pays to renewable energy producers as part of a general energy pricing overhaul, said the government.

As of 1 January 2012, state-controlled utility PPC will pay a EUR2/MW charge for power generated by burning lignite, which is used in the generation of nearly half of the country’s power requirement.

It was not immediately clear if PPC will be allowed to pass on this charge to consumers. The company’s new, regulated power prices are expected to be announced by the end of the year, said Reuters.

The new measure is aimed to raise around EUR55m (US$72.1m) and help fund a special account to pay renewable energy producers. It has a deficit of around EUR200m, according to ministry estimates.