PPC doubts NOME bidding competition, promises action

Reacting to yesterday’s inaugural NOME auction, through which independent suppliers purchased electricity amounts at subdued prices, the main power utility PPC has openly doubted the procedure’s  competitiveness, implying that participants colluded to keep prices low, in an announcement released by the utility late last night.

The introduction of the NOME auctions is intended to provide third parties with access to PPC’s low-cost lignite and hydropower sources as a measure to help break the utility’s market dominance, steering it towards bailout-required market share reductions.

The majority of electricity order prices secured at yesterday’s first session hovered just above the starting price level of 37.37 euros per MWh, reaching no more than 37.50 per MWh.

In the statement, PPC questioned whether true competition existed between the participating bidders, noted that the auction’s starting price undercut the utility’s production costs, while adding it would defend its interests through all possible avenues.