RAE, the Regulatory Authority for Energy, is believed to be close to finalizing the details of an electricity export restriction on NOME-acquired amounts following the eventual approval by the European Commission.
The measure’s finalized shape is expected within the next few days, which should provide ample time for its implementation ahead of the next NOME auction, expected early in 2019.
The European Commission, in a letter forwarded to RAE late November, had left open the possibility of electricity export-restricting measures, but, at the same time, reminded of EU law forbidding the obstruction of trade.
Brussels ended up permitting the export restriction as part of a wider effort aiming to further intensify competition in Greece’s retail electricity market.
Driven by considerably higher wholesale electricity prices promised in other EU markets, Greek NOME auction participants, especially traders, have been exporting amounts acquired at these local sessions.
NOME auctions were introduced in Greece over two years ago to offer independent players access to the main power utility PPC’s lower-cost lignite and hydropower sources for more competitive pricing policies.
Considerably higher NOME prices generated at various auctions prompted RAE to investigate the matter.
A NOME electricity export limit plan presented by RAE in October proposed restrictions for all firms with respective levels determined by the amount of consumption represented in the retail market. Any electricity amounts found to exceed these export limits would be priced at the System Marginal Price (SMP), or wholesale price, not relatively lower prices secured at auctions, according to the RAE proposal.