Power market reform delays stressed in central bank report

The implementation of reforms intended to help liberalize Greece’s electricity market, such as the upcoming NOME auctions, to provide independent firms access to main power utility PPC’s low-cost lignite and hydropower sources, as well as the breakway of IPTO, the power grid operator, from PPC, its parent company, has been delayed, Bank of Greece Governor Yannis Stournaras has noted in an economic report.

The central bank chief devoted eight pages to the need for electricity market reforms in his report, which highlights how crucial he considers them to be.

“Stagnancy emerged in the electricity market’s liberalization effort, especially in the production and wholesale domains, as a result of the combined effect of unfinished planning and implementation of reforms and the lack of investments due to the economy’s prolonged recession,” Stournaras noted in his report.

Swift implementation of reforms ratified in Greek Parliament in 2015 and 2016 will intensify market competition and activate serious investment efforts in the electricity market’s production, distribution and retail levels, the central bank governor’s report added.

These favorable market developments will be propelled by offering independent electricity companies access to the country’s lignite and hydropower sources – through the NOME auctions expected in September – as well as through IPTO’s breakaway from PPC, the report concluded.