NOME participants fear high prices again at next auction

The majority of market players preparing to take part in the country’s next NOME auction, expected to take place within the next two to three weeks after an intial January 17 date was postponed, fear auction electricity prices will again surge to levels of around 45.2 euros per MWh reached at the previous session, last October, and consequently negatively impact their business plans, they have admitted in comments to energypress.

These participants fear limited electricity amounts to be offered at the next NOME auction will generate intensified bidding and drive up prices.

New electricity market players hailing from the natural gas market and possessing insufficient electricity amounts from previous NOME auctions are expected to add to the bidding competition. These newer players need to acquire additional electricity amounts to cover their dynamic entries into the electricity market.

The specific date of the next NOME auction, the first of four planned to take place this year, will be included in a multi-bill of bailout prior actions, expected to be ratified in Greek parliament today.

The upcoming NOME auction was delayed so that authorities could revise terms for participants, who will need to cover supply quotas for the domestic market. Separate conditions will apply for older and newer electricity market suppliers. Newer players will be offered greater leniency.

These revised terms will undergo a short consultation process, to last a few days, before RAE, the Regulatory Authority for Energy, makes a final decision to implement the required changes. LAGIE, the Electricity Market Operator, will then officially announce the revised terms.

The terms will need to be swiftly implemented as deliveries of electricity purchases made at the next auction must begin no later than March 1.

NOME auctions were introduced in Greece a little over a year ago to offer independent suppliers access to the main power utility PPC’s lower-cost lignite and hydropower sources.