Officials at RAE, the Regulatory Authority for Energy, will most likely run out of time to prepare and introduce a NOME restriction by the next auction, on October 18, the year’s final session, requiring buyers to supply at least 80 percent of electricity amounts purchased at the auctions to the local retail electricity market. However, the measure should be ready for the first auction in 2018.
According to the measure, based on a proposal forwarded by LAGIE, the Electricity Market Operator, NOME participants will face elimination from the next session if they do not meet this supply condition.
“The purpose of NOME auctions is to open up the retail electricity market to competition rather than create fabricated conditions enabling cross-border transactions,” noted Nektaria Karakatsani, a RAE official.
Traders have acquired supply licenses in order to take part in NOME auctions before selling electricity amounts in foreign markets, where electricity price levels are higher.
This practice contravenenes the intention of the NOME auctions, introduced around a year ago to offer independent suppliers access to the main power utility PPC’s lower-cost lignite and hydropower sources.
In addition, bidding process revisions implemented for the previous session are set to be removed in time for the next auction. These changes proved troublesome and prompted one supplier to take legal action. As a result, bidders will regain the right to make bidding amount changes during the auction without any descalation of their existing bid levels.