25% increases in SOE bills

On the eve of elections, the administrations of public enterprises are finalizing their reorganization plans and will send them to the ministry of Finance today. According to the requirements of the memorandum, these plans include increases of 25% on ticket prices in urban transport and rail and new reductions to the salaries and operating costs of SOEs.

Revenues of SOEs (mainly through increases in fares and tickets) should increase over the next three years by 240 million euros, and 362 million should be saved by additional wage cuts, reduced operating costs, etc.

Increases in public transport tickets should be implemented in the first quarter of 2013. This means that OASA will increase the price of the 1.40-euro ticket (for all transport means) to at least 1.75 euros, and the corresponding ticket for buses, trolleys and trams from 1.20 to 1.50 euros.

Similar increases will be imposed on reduced tickets, which will stand at 0.90 euros and 0.75 euros respectively.

Fares in the suburban railway and OSE trains will increase by 25%. The TRAINOSE business plan should also provide for the acceleration of its privatization by the end of the year, even though it was originally set for 2013.

By 2013 the latest, electricity bills for households and small businesses should approximate the level of wholesale bills (higher by about 65%), with the exception of vulnerable social groups.

The memorandum requires bill increases for water and sanitation services as well, which expect further privatization within the first half of 2012.

The three-year business plans that will be submitted today at the Finance ministry by the administrations of SOEs are deemed to be binding for the next government.