The decision by authorities to offer an electricity amount of 460 MWh at Greece’s inaugural NOME auction yesterday seems to have played a key role in keeping prices close to the starting price level, a development that satisfied all participants, except for the main power utility PPC.
The introduction of the NOME auctions is intended to provide third parties with access to PPC’s low-cost lignite and hydropower sources as a measure to help break the utility’s market dominance, steering it towards bailout-required market share reductions.
The 460 MWh amount offered at yesterday’s debut NOME session proved sufficient to cover the needs of the market and independent suppliers at this point in time.
Another conclusion drawn from yesterday’s outcome is that all of the auction’s participants, especially the major players, showed no intention to dominate, but, instead remained subdued, allowing space for all bidders to benefit.
The auction was a closed session. Requests were made for full details of purchases made to remain under wraps for reasons concerning the respective market strategies of participants.
The three major independent suppliers secured price levels that differed only slightly. Two of these made purchases at the same price of 37.38 euros per MWh but bought different amounts, 108 MWh and 87 MWh. The other major player benefited most, purchasing an electricity amount of 105 MWh at 37.37 euros per MWh, the starting price.
The auction’s outcome was also satisfactory for the smaller players, the difference in price levels secured reaching 13 cents per MWh for amounts of 15 MWh.
According to sources, the session’s highest bid was submitted by ELTA (Hellenic Post), this being 37.50 euros per MWh for an order of 15 MWh.
The commercial arms of industrial enterprises that took part in the auction also moved conservatively, acquiring small amounts ranging between 1 and 2 MWh. At least one of these bidders is believed to have paid a price of 37.39 euros per MWh.
In an announcement released yesterday, PPC described the auction process as unfair, noting that the starting price is below the corporation’s production cost level. The utility’s announcement was also critical of energy minister Panos Skourletis.