A period of heightened electricity market reform activity is expected as of next month due to tight deadlines and the insistence of the country’s lenders for a target model launch by April, 2019. New market codes will need to be established for the target model, aiming to harmonize EU electricity markets.
RAE, the Regulatory Authority for Energy, is moving to stage a public consultation procedure for the establishment of codes concerning the futures market, it has become known in the marketplace.
Greece’s industrial sector, which has already intervened publically and forwarded a related letter to the European Commission, is urging for the establishment of a competitive energy market based on European standards.
The industrial sector has set as a paramount objective the opening up of the energy market for a greater level of competition. The NOME auctions, introduced in Greece roughly two years ago to offer third parties access to the main power utility PPC’s lower-cost lignite and hydropower sources, have not succeeded as appropriate conditions were not established, according to industrial consumers, who consider PPC partially responsible.
The maintenance of a mandatory pool, which has enabled PPC to shape electricity prices in both the wholesale and retail markets, has been a key factor behind the failure, industrialists have asserted.
As a result, the industrial sector believes the codes to be implemented for the futures market will be crucial. Industrialists are expected to forward three key proposals to RAE’s public consultation procedure.
According to sources, one of these will entail requiring PPC to satisfy a lower limit of production sales to third parties in the futures market. Industrialists will also request the exclusion of PPC’s trading division from futures markets products offered by the utility’s production division as this is expected to restrict PPC’s retail market dominance and lead to a market share contraction, not achieved by the NOME auctions. Industrialists are also expected to request a term preventing PPC from having access to futures markets products linked with lignite units included in the utility’s bailout-required lignite disinvestment.