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Industries battle for a place on the DESFA list

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Industries battle for a place on the DESFA list

Fighting position to enter the list of companies that will be released from the obligation to reduce consumption natural gas take industrial enterprises of the country.

By September 1, industries seeking priority exemption from the mandatory 15% “reduction” in natural gas consumption in the event of a European warning will need to document in detail in DESFA that they meet the criteria set out in its preventive action plan RAEwhich includes what is outlined in the plan of the European Commission.

Critical areas

The EU, in addition to protected consumers (households, hospitals and healthcare facilities at all levels, school complexes, airports, buildings that house public sector services and other social services), allows Member States to exempt, as a matter of priority, large consumers who provide goods or services that are assessed as critical and of strategic importance for the normal functioning of society. Critical social sectors are defined as health, safety and environment, defense, defense, refineries and food. Also considered critical are sectors of the economy or industries that are part of cross-border supply chains and offer goods and services that are of decisive importance not only at the national but also at the European level. The rationale for the exclusion in this case is that plant outages may not affect critical sectors in one Member State, but may significantly affect critical sectors in other Member States, so the impact should be assessed as a reduction in production at the global or European level, not individually.

For example, medical devices and pharmaceuticals, chemicals (e.g. products used in the food and health sectors), textiles (for health and defense purposes) are part of value chains that are critical to important sectors or areas of activity . strategic importance. Another factor to consider is whether the company has a monopoly in Europe or worldwide, or a dominant market role in a critical value chain. If a reduction in the supply of natural gas to one facility prevents the production of a key product in the EU. or, more broadly, it should be taken into account.

Another criterion that should be assessed for prioritized consumption reduction exemption is the ability to replace natural gas with other fuels. It is also necessary to assess the impact on the company’s facilities of the forced termination of its activities.

By September 1, they must submit a detailed report that they meet the criteria set by the EU.

They work continuously

Particular attention, according to E.E. and the RAE plan, should be provided to sectors that must operate continuously and where a sudden interruption in the supply of natural gas can cause irreversible damage to facilities (for example, biological drugs and other parts of the health industry, some parts of engineering, textiles and, in particular, in the finishing sub-sectors , pharmaceutical industry, most chemical industries (fertilizers, glass, steel, aluminum, refineries, lime, ceramics).

A number of industries, both energy-intensive and non-energy-intensive, require a minimum amount of natural gas for uninterrupted production, since if production is stopped, it cannot be resumed without significant delays, regulatory approvals and costs. In such cases, the minimum amount of natural gas consumption should be determined and defined as critical and prioritized accordingly, depending on the performance of these industries according to other criteria.

Integration

Based on the above criteria, DESFA will create a list of “important industries”. In order to be included in it, each interested industry will have to submit by September 1 a detailed documentary report on the fulfillment of the established criteria (partially or in total), a study on the impact of a possible interruption, evidence confirming the impossibility of using alternative fuels or raw materials, as well as a proposed a cut-off plan that will include in detail the procedures for the agreed shutdown (partial or total) of the natural gas supply for the safety of the facility and its personnel. The data should be shared with the Ministry of Environment and Energy and the Energy Regulatory Authority simultaneously.

Thus, the responsible cadres of the country’s largest industries have forgotten about the August baths and are feverishly working to secure the right to be included in the list of “important industries” in the most convincing way and to be exempted from reducing the load on natural gas.

Alternative RAE Action Plans

Decisions to be taken by the competent Greek authorities are assessed by the Greek industry as very risky. The Greek authorities must scrutinize the files carefully and flexibly so as not to put the domestic industry at a disadvantage compared to the industry of other countries. accent on “k” President of the Union of Industrial Energy Consumers (EBIKEN), Anthony Contoleon.

ELFE (formerly Phosphorus Fertilizer Industry), which uses natural gas as a feedstock, refineries but have already largely replaced natural gas with other fuels due to cost, and other large consumers of natural gas such as Greek aluminum, glass industry Giula, aluminum rolling company ELVAL et al. they will claim a place on the DESFA list, participating in a battle that starts quietly with many chances to escalate into … an industrial civil war.

The RAE Preventive Action Plan, which has received prior approval from the Commission and is awaiting comments from other Member States by August 23 to receive final approval on the 25th of the month, also provides for the creation of a commercial product to reduce industrial production for a period of one month to save load. As an alternative, the proposal submitted to the EU provides for load relief through a measure of discontinuity on a long-term basis for a fee. Prime Minister Kyriakos Mitsotakis. In fact, the RAE is expected to invite industry representatives to a meeting with DESFA in the coming days to explore intentions for voluntary participation in the measure under consideration.

Author: Chris Liangou

Source: Kathimerini

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