The Regulatory Authority for Energy (RAE) announced on New Year’s Eve a series of increases on its “green” charges ranging from 82% to 157%, which are meant to cover a 1.5 billion euro shortfall in the renewable energy subsidy account.
These increases, which affect households, farmers and industrial enterprises, have effectively been put on hold until March 2014, since the Ministry of Environment must succeed in passing a bill in parliament which will enforce a generous reduction (40%-50%) of the guaranteed prices to solar panel farmers.
While the government considers this to be the only efficient way of eliminating the shortfall, which ballooned to 560.5 million euros in 2013, the Ministry’s bill is expected to spark major controversy, as the government enticed investments in solar panel farming and renewable sources of energy with subsidies, tax breaks and generous tariffs.
