The European Commission has favorably reviewed Greece’s electricity market in a 7th post-bailout report on the country’s economy, noting, however, that power utility PPC’s market share needs to drop further.
Power utility PPC’s market share was down to 67.7 percent in June from 73.5 percent a year earlier, but still remains a long way off the 50 percent target by the end of 2020, the report’s authors noted.
Special offers from independent electricity suppliers for consumers have intensified the level of market competition, the Brussels report noted.
The ability of consumers to pay electricity bills has been impacted by the pandemic, subsequently leading to an increase in the number of supply-cut orders, and also prompting PPC to securitize unpaid receivables, the report pointed out.
Wholesale electricity prices in Greece are among the EU’s highest but have dropped in the first half, the report noted.
Its authors anticipate a further wholesale electricity price reduction as the country’s energy mix is transformed by the withdrawal of lignite-fired power stations and entry of other energy-generating fuels, such as natural gas.
Retail electricity prices are among the lowest in the EU, the report added.
It issued a warning on the RES special account deficit, noting this is a concern for the future of the renewable energy market. The report attributed the deficit to the pandemic, which has lowered electricity prices and reduced RES special account cash inflow. The report acknowledged that DAPEEP, the RES market operator, is revising its formula to achieve a balanced account in the short and long terms.
The target model’s implementation, expected November 1, represents a significant step in the completion of the domestic electricity market’s transformation, the report stressed, making note of delays, once again attributed to the pandemic.
The report was particularly favorable on Greece’s decarbonization and electromobility efforts.