Market opposes Yankee Auction model for NOME plan

The country’s electricity supplier and producer associations have both expressed their opposition, through a public consultation procedure that ended last Friday, to a Yankee Auction model for the upcoming NOME auctions.

Through the Yankee Auction process, successful bidders do not just pay the amount of the final bid but all top bids made by all participants. Fears that this model could lead to unfair conditions were expressed.

According to sources, HAIPP, the Hellenic Association of Independent Power Producers, locally acronymed ESAI, expressed preference for a method making available transfer ability to international interconnections as it offers transparency to participants.

Elecricity producers also asked for an upper limit to the electricity amount that may be awarded to each auction participant as well as a reduction in the percentage that may be exported.

The upcoming NOME auctions, intended to provide third parties with access to main power utility PPC’s low-cost lignite and hydropower sources as a measure to break the utility’s dominance, may be launched towards the end of October, not in September as has been originally anticipated.