The new and revised Capacity Availability Tickets (CATs), used to determine payments to electricity production units, which are expected to soon replace the current CAT system, are characterized by two key features.

The first of these promises increased benefits and support for flexible production units, or those readily able to enter and exit the overall power supply system, depending on its needs, meaning natural gas units, hydropower plants, and hybrid wind-and-hydropower units. Such units stand to be rewarded for their flexible operating nature.

The second key feature of the revised CATs is their link to a measure offering lower price rates to large-scale energy consumers, as well as consumer groups, in exchange for their acceptance of power supply disruptions, whenever this is deemed necessary to protect the system’s overall supply efficiency. The Greek government is currently awaiting European Commission approval for this measure.

Contrary to conditions that have applied until now – besides supply security, the payment mechanism also catered to sustainability of existing investments – the only criterion that will remain intact will be that of long-term power adequacy, based on four factors, power availability, flexibility, strategic reserves, and response to demand.

RAE, the Regulatory Authority for Energy, has forwarded its proposal for the new and revised CATs for public consultation. Participants may submit their views, on the specific RAE proposals, until September 8, 2014.