The energy ministry has asked RAE, the Regulatory Authority for Energy, for a detailed assessment on how the planned termination of NOME auctions would impact Greece’s electricity market as well as a proposal for normalization measures during the transition period leading to the target model, if the authority deems measures will be necessary.

Energy ministry officials already appear convinced measures will be needed for the pre-target model transition period as a means of covering the electricity needs of independent suppliers, protecting smaller non-vertically integrated players against possible collapse, and avoiding sharp energy cost increases for industry, especially high-level consumers in the mid-voltage category.

Legislative measures obligating power utility PPC into offering short-term contracts to suppliers, possibly even major-scale electricity consumers, for prices slightly below the wholesale price level, will probably be needed as an imminent arrival of an organized futures market at the energy exchange does not appear feasible.

At a recent meeting with deputy energy minister Gerassimos Thomas, retail electricity market representatives requested an adequate NOME replacement tool – if the auctions are abolished – that would enable hedging at competitive prices until the target model’s implementation.

Independent electricity suppliers fear a cancellation of this year’s final NOME auction in October, as is wanted by the energy ministry, would expose them to high prices that could affect their sustainability.