Lenders favor end to variable cost lower limit for producers

The country’s lenders favour the scrapping of a variable cost lower limit imposed on electricity producers for sale prices of their output, but the prospect has raised concerns among Greece’s independent producers who regard the lower limit as a safety net, energypress sources have informed.

Greece’s independent producers fear that the main power utility PPC could go as far as to offer electricity production for zero amounts, in order to sideline the independent producers, if the existing cost lower limit is abolished.

Talks are currently in progress for the shaping of new energy exchange-related markets – day-ahead market, intraday market, balancing market and term products market.

The independent producers have proposed that the cost lower limit be maintained until the market begins operating in accordance with European standards.

The lenders also favor offers to the intraday market by entire portfolios of producer units, not just individual electricity production units, as has been planned until now by RAE, the Regulatory Authority for Energy.

The troika is also aiming to introduce strict market monitoring measures to keep a close watch, on a daily basis, of market player moves.