Friday, June 1, 2012

Greece's debt woes mutate into energy crisis

Reuters
June 1, 2012

Greece's debt crisis threatened to turn into an energy crunch on Friday, with the power regulator calling an emergency meeting next week to avert a collapse of the country's electricity and natural gas system.

Regulator RAE called the emergency meeting after receiving a letter from Greece's natural gas company DEPA, dated May 31 and seen by Reuters, threatening to cut supplies to electricity producers if they failed to settle their arrears with the company.

An energy crisis would add to the debt-stricken country's political and financial strains, threatening households and businesses with power cuts ahead of a June 17 election which may decide if the country will stay within the euro.

The Greek government already risks running out of cash next month if it fails to receive fresh bailout funds from its lenders.

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