No new NOME surprises seen Wednesday, supply ample

Participants at this coming Wednesday’s NOME auction, the third session for the year, do not expect any new surprises in terms of price levels and bidding competition following a considerable starting-price increase to 58.12 euros per MWh, taking effect as of this week’s auction, and ample supply.

The revised starting-price level is just under the highest price of 58.74 euros per MWh reached at the previous auction in April.

Market officials have already factored these latest levels into their calculations as a result of higher wholesale electricity prices.

Intensified bidding competition, which would drive prices higher, is not expected as the electricity quantity to be supplied this Wednesday exceeds demand, a study conducted by industry expert E-intelligence has shown.

A total of 763 MW will be offered to NOME auction participants on Wednesday, comprised of a predetermined 500-MW amount plus a 263-MW penalty triggered by power utility PPC’s failure to reach a first-half retail electricity market share contraction target included in the country’s bailout terms.

A further penalty amount will be added down the road, at an ensuing October 10 NOME auction, which will increase the total offer on offer to a mammoth 1,029 MW.