Interview of the General Manager, Mr. Leonidas Bakouras, at energypress.gr
2020 was a year of great challenges that we successfully managed to overcome due to optimal organization, strict planning and consistency in our commitments, factors that are the foundations of our dynamic course. We achieved robust results throughout the year, thanks to our commitment to strategic goals, the preparedness, the experience of our executives, the technical know-how and the modern infrastructure.
The year is expected to close with over 22.000 new connections, while the distributed volumes will exceed 440 million cubic meters of natural gas increased by 8% from the corresponding period of 2019. By the end of the year, € 36 million will have been invested for the development of the network and the connection of new consumers.
The new year is expected to bring significant developments for both the energy sector and the national economy. The objectives of the National Plan for Energy and Climate are in focus, with natural gas being undeniably the mean to gradually decarbonize the economy and diversify the energy mix at national and European level.
The objectives for the national energy transition, in parallel with the announced and under implementation subsidy schemes, significantly favor the prospects of the natural gas market. EDA THESS converging on these goals, contributes to the creation of a competitive market with low energy costs.
Already from the 1st of December the weighted average distribution tariff of EDA THESS that has been approved by the Authority is further reduced by 14% in Thessaloniki and by 20% in Thessaly. This is a development that directly contributes to the reduction of energy cost, enhancing energy efficiency while encouraging the business interest in new investments. The increasing penetration of natural gas boosts the economic growth, through the implementation of productive investments.
At the same time, the European Union’s strategy for energy transformation towards climate neutrality promotes the use of natural gas and the transition to the use of renewable gases such as hydrogen and biomethane. In this regard, the role of distribution networks is particularly crucial for the integration of renewable energy sources and the interconnection of the involved sectors to meet the targets. The technical challenges that Distribution Network Operators are being called to face in the new natural gas market are significant, with particular emphasis given on flexibility and efficiency of networks through their digitization.
As a member of the Gas Distributors for Sustainability association (GD4S), we intend to participate in the building of a greener, decentralized and digitized energy network for the future.
In order to cover all the areas of the license of EDA THESS, the Development Program 2021-2025 has been prepared, which has been formulated according to strict strategic axes while taking into account techno-economic and environmental criteria. We continue to implement cost-effective investments for the sustainable development of the Company, overcoming the energy challenges with planning and efficiency.
The new development program of the Company foresees investments of € 158.2 million for the development of the distribution network, the reinforcement of the infrastructures, the digital transformation, the installation of 136 thousand smart meters and the development of intelligent metering systems. At the end of the investment program, the delivery points (gas meters) will reach a total of 471,000, the penetration rate will reach 77% of the population and the distributed gas volumes are projected to exceed 580 million cubic meters in 2025.
Also, key points of our Program are the dividend policy for fair and stable return to shareholders, the spreading of the high expertise that the Company owns by providing optional services to other operators and the Methane Emission Reduction Program. This program forecasts the introduction of new technologies and collaborations with European Operators, in the context of the preventive treatment of leaks in the Distribution Network, aiming to enhance the security level of the distribution network, reduce maintenance costs and protect the environment.
The unprecedented conditions we experienced in the first wave of the pandemic, acted as accelerators and gave us the opportunity to shield and further strengthen the Company’s response mechanisms for uninterrupted operation in the full range of its activities and the success of investment planning. At the same time, the digital leap of the Company with the use of new technological applications and the utilization of many functionalities, contributed to the immediate adaptation of the operations to the requirements of the new conditions.
The cornerstone for achieving our corporate goals is our people. We apply modern management practices that focus on employees and we take dynamic initiatives to create a healthy environment. Therefore, the future of the Company is promising with prospects of strong growth in the energy sector. We base our strategy on the philosophy concentrated in the triptych “high returns for shareholders, optimization of services to distribution users and final consumers and investment in human capital”, a value chain for all of those involved.
