Gas distribution network development for rest of Greece

Regulatory Authority for Energy approves gas distribution network development for rest of Greece

(Article by Mira Todorovic Symeonides – Partner of Rokas Law Firm, published in the Energy & Natural Resources Newsletter of the ILO on May 10, 2021)

On 4 March 2021 Regulatory Authority for Energy Decision 1615/2020 – which approves the Public Gas Distribution Networks SA (DEDA) 2021 to 2025 development programme for the distribution network for the rest of Greece (ie, areas of Greece other than Attica, Thessalonica and Thessaly) – was published in the Official Journal (B’ 844/2021). The approved budget of approximately €272,500,000 should cover the costs of:

  • the development of low and medium-pressure networks;
  • new interconnections;
  • decompressors;
  • IT investments; and
  • buildings.

In particular, the programme envisages the development of 133km of a medium-pressure network in four regions of Greece (ie, Central Greece, Central Macedonia, East Macedonia and Tracie and Macedonia) and 1,725km of a low-pressure network in the aforementioned four regions plus West Greece and Epirus. The plan is to develop the network in these six regions – specifically, within 34 municipalities (some of which have no natural gas network) – and execute the works simultaneously across several municipalities of different regions.

However, the approved programme is largely similar to the previously approved 2020 to 2025 programme, except for the length of the network in West Macedonia. The amendments, which include the determination of the exact length of the network and the precise construction costs, were introduced because the necessary technical studies have since been finalised. According to DEDA, the delay in implementation of the programme approved in 2020 is justified by:

  • the amendments to the regulatory framework;
  • the delay in approving the documents for the competitive procedures for construction of the network;
  • the delay in obtaining the installation and operation licences for the decompressors; and
  • the delay in the state’s approval of the financing of part of the budget.

The new programme does not increase distribution tariffs, which remain at the 2020 level and range from €4.5 per megawatt hour in Central Greece to €18.3 per megawatt hour in West Macedonia.

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