Liquidity of 120 million euro in the energy market from the proportional compensation to DEPA’s customers, following the retrospective price cuts by BOTAS
DEPA returns today to its customers the proportional amount yielded by the retrospective price cuts by BOTAS. The total amount of 120 million euro is considered a significant boost of the domestic energy market’s liquidity, amid a difficult period due to the impact of the Covid-19 pandemic.
On March 5, BOTAS compensated DEPA for all retrospective price cuts, as per the ruling of the Stockholm International Chamber of Commerce (ICC). ICC ruled on January 10th 2020, in favor of DEPA in the legal dispute with the Turkish gas company, regarding the request of the former for a price reduction.
Along with the boost of liquidity in the Greek energy market, the increase of DEPA’s available funds comes in a very crucial period during which the corporate transformation is fully deployed. Full utilization of cash liquidity is already under way, by DEPA Trade for the completion of its investment plan, by DEDA for the acceleration of network expansion plan to connect more areas of the Greek region to the natural gas network, as well as by DEPA International Projects which – among other things – will undertake the implementation of the studies concerning the EastMed pipeline.
DEPA’s CEO, Mr. Konstantinos Xifaras, stated in this regard: “Over recent months we have been engaged in a race to reduce the cost of gas supply, for the benefit of the Greek economy. Our efforts have already yielded significant results, as DEPA has been implementing lower pricing since January. In addition, we are now pleased to return to our customers a large amount that will help them deal with the effects of the pandemic. With a profound sense of responsibility, DEPA – even in the midst of this unprecedented situation – continues to safeguard the country’s uninterrupted gas supply and to support our economy”.
The Deputy Minister of Environment and Energy, Mr. Gerasimos Thomas, highlighted that: “The Ministry proceeds steadily and methodically with the implementation of measures that support the energy sector and industry, amid the Covid-19 crisis. Today’s move by DEPA follows the initiatives already taken by the Ministry for the seamless operation of the energy market, with the latest example being the regulations included in yesterday’s Legislative Content Act. I would like to congratulate the management of DEPA, which reached an agreement with all its customers timely and, thus, further increases market liquidity through payments before Easter. The compensation, deriving from BOTAS’ retroactive price reduction, leaves DEPA with high liquidity that will be used for the support of its subsidiaries’ business plans, in the transition period until the private investors’ funds enter DEPA Infrastructure and DEPA Trade”.