Non-interconnected island markets not luring suppliers

Though the electricity markets of 30 non-interconnected islands are now fully liberalized as of January 1 – following the opening up of the electricity markets of Rhodes, last January, and Crete in August, 2016 –  independent suppliers, facing various obstacles, especially elevated wholesale prices, are hesitating to enter these new markets.

Negative factors affecting conditions in the thirty new island markets have also impacted independent electricity suppliers seeking to penetrate the markets of Rhodes and Crete. At present, independent suppliers on these two islands are moving conservatively in an effort to keep their ventures afloat rather than pursue more aggressive, and costly, marketing policies.

Independent electricity suppliers opting to enter the markets of non-interconnected islands have no choice but to purchase power directly from the grid at a high cost as no other alternatives, such as NOME auctions, exist. NOME electricity amounts acquired by independent suppliers are currently not being utilized for non-interconnected islands as these amounts concern demand in other markets.

In addition, Public Service Compensation (YKO) payments to independent suppliers are being delayed, which is forcing firms to rely on company resources for financing their actions.