Extra NOME amounts added to final auctions of each year

The bailout-required increase of electricity amounts offered by the main power utility PPC to independent traders at NOME auctions will be added to the final December session of each year, according to energypress sources.

This year’s third NOME auction, scheduled to take place three months from now, is expected to feature a new starting price – probably lower by as much as 5 euros per MWh from the current level of 37.37 euros per MWh – but the electricity amount to be offered will remain unchanged, at 145 MWh/h.

Besides the new starting price, an additional 4 percent of electricity, or roughly 200 MWh/h, will be offered to participants at the year’s fourth auction, in December, according to terms included in the revised bailout agreement, reached this week.

Bailout revision aside, RAE had planned to offer an increased electricity amount of 245 MWh/h for the year’s fourth and final NOME auction in December. The additional 200 MWh/h amount required by the latest bailout agreement will increase December’s offering to 445 MWh/h.

This figure is not far off the amount offered at last October’s inaugural NOME auction, when 460 MWh/h was offered to traders.

NOME auctions were introduced in an effort to break PPC’s market dominance by offering independent traders access to the utility’s low-cost carbon and hydropower sources.

According to the latest NOME auction terms, PPC will need to offer a compounding proportion of electricity to the sessions.

In 2017, PPC will need to offer 16 percent of its electricity, instead of 12 percent, as had been originally planned. In 2018, the utility must offer 19 percent, up from 13 percent, while, in 2019, the offering needs to rise further, to 22 percent from 13 percent.

The revised bailout includes a term enabling a decrease of electricity amounts offered by PPC through the NOME auctions once the utility has sold carbon-fired power stations and reduced its production capacity.