Independent suppliers set for NOME’s new market conditions

Main power utility PPC’s gradual electricity market share decline, now down to a level of less than 90 percent for the first time – as was announced by LAGIE (Electricity Market Operator) boss Mihalis Filippou at a recent information day held by RAE (Regulatory Authority for Energy) on the upcoming NOME auctions and confirmed yesterday by LAGIE’s latest monthly market report covering August – sets the scene for even greater market share changes expected to be prompted once the auctions are launched, possibly at the end of October.

Independent electricity suppliers operating in Greece are at work on their next moves, including pricing revisions that will be influenced by the price levels to emerge from the imminent NOME auctions.  The auctions are 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.

The price levels at the NOME auctions will be crucial for the initiative’s success. If they reach too high then the effort will not produce the desired results.

The NOME auctions will provide suppliers the opportunity to design and offer new competitive products that may attract a wide range of customers, especially in the low-voltage category. Company officials are on stand-by to take action while a new round of promotional campaigns to support new offers is in the making.

Pundits are currently debating whether the electricity amount to be offered through the first NOME auction, set at 350 MW, will suffice to cover the needs of independent suppliers. Their overall market share, estimated at 10 percent in LAGIE’s August report, equates to a total electricity amount of 600 MW. Some officials contend the amount will be enough as a first-round offer.