Independent electricity suppliers, who have gradually gained several percentage points over the past year or so to capture nearly ten percent of Greece’s retail electricity market, are essentially waiting for September when the introduction of NOME auctions is expected to prompt major developments in the market.
The NOME auctions will provide third parties with access to main power utility PPC’s low-cost lignite and hydropower sources as part of bailout-related obligations intended to break the utility’s perennial dominance.
Latest official data showed that independent suppliers held a 9.46 percent share, combined, of Greece’s retail electricity market in May, up from 8.62 percent in April.
The overall ten percent market share held by independent power suppliers is not expected to shift until September. Independent suppliers have extended their various respective offers until the end of June, but they are likely to reexamine their positions and sustain these offers in light of PPC’s imminent discount offer.
PPC is scheduled to launch a 15 percent discount on July 1 for customers with punctual electricity bill payment records. The offer is expected to help the utility more or less maintain its current share of the market and also temporarily prevent the outflow of customers to rival suppliers.
It is presumed that the retail electricity market battle will begin with independent suppliers holding a market share of roughly ten percent, overall.
The first NOME auction in September will offer participants an electricity amount measuring eight percent of the total used in the country’s grid in 2015. Orders will be made available to bidders during the fourth quarter.
NOME auction starting prices are expected to begin well below current System Marginal Price (SMP) levels, which will enable independent suppliers to compete against PPC’s 15 percent discount offer.