Key Performance Indicators to be introduced for IPTO earnings

Key Performance Indicators (KPIs) to prompt rewards and penalties determining earnings will be introduced for power grid operator IPTO, abolishing a current formula guaranteeing the operator’s earnings.

The KPI plan, expected to soon be forwarded for public consultation, applies for Europe’s major operators.

It will be used to assess services such as transmission line availability, loading forecast accuracy, and RES forecast accuracy.

The KPI system also promises to bring about changes for projects of major importance, among them the Crete and Cyclades grid interconnections.

Until now, the operator’s bonus arrangement for these projects was set at 2.5 percent of WACC over a period of up to 12 years, but, under the new system, the bonus rate will be trimmed to 2 percent, while the application period will be limited to between four and seven years instead of 12.