New temporary CATs on final stretch, awaiting EU approval

Following much delay caused by a series of postponements, the country’s new temporary CAT system, to be valid in 2016 from the date of its implementation onwards, appears to be on the final stretch.

According to energypress sources, the Greek CAT plan is now in Brussels following the provision of updated market data concerning 2015 by RAE, the Regulatory Authority for Energy.

As the next step, the European Commission’s Directorate-General (DG) for Competition will need to approve the plan, which is expected to be a brief procedure, before the CAT plan is implemented in Greece.

Local market officials engaged with the matter told energypress that the European Commission can be expected to act swiftly, assuming the updated market data has been provided, as is believed.

These officials noted that the time required to implement the plan in Greece will depend on what route the government chooses to take. If, for example, a legislative process through Greek Parliament is chosen for the temporary CAT plan, then the time required will be considerably greater than it would be if the plan is to be simply approved by the RAE board and then implemented.

The bailout-related plan’s long delay has deprived electricity production facilities of CATs for output in 2015. At present, producers have been left without a temporary CAT plan, while the ensuing permanent plan has yet to be presented.

There appears to be no chance, whatsoever, of any retroactive payments, judging by the exchange of views on the issue between Greece’s energy ministry and the Directorate-General (DG) for Competition. Besides the amounts lost for 2015, local producers can also expect to miss out on payments for production concerning the months of the current year without a temporary CAT plan.

The temporary CAT plan was originally scheduled to be implemented in 2015, based on 2014 market data. However, its delay prompted the Directorate-General (DG) for Competition to request updated 2015 data, to be used for the plan’s introduction this year.

Support mechanisms of other EU member states are currently being reviewed. The EU wants to base Greece’s anticipated temporary CAT plan on 2015 data to avoid any appeals by these fellow EU members whose mechanisms are being reviewed.