Electricity retailers vertically integrating as market opens up

Although the plan to introduce NOME-type auctions into the local electricity market is pending, subsequently making it difficult to determine the measure’s impact on the retail electricity market, Greece’s third bailout agreement clearly spells out that no electricity supplier may hold a share of over 50 percent by 2020. This demand obviously targets main power utility PPC, currently controlling approximately 95 percent of the retail electricity market.

The drastic prospective changes in the market, through which 50 percent of the retail market’s share will be captured by other retail electricity companies by 2020, is prompting firms to restructure and reposition in anticipation of the market opportunities. Enterprises possessing electricity production units are vertically integrating.

Following Protergia and Heron, already vertically integrated, Elpedison yesterday announced it is restructuring by unifying its electricity production and supply services under the one company.

According to company sources, the corporate restructuring at Elpedison highlights the emphasis placed by shareholders on the retail electricity market and the prospects created by the country’s bailout commitment to considerably reduce PPC’s market share.