LAGIE, the Electricity Market Operator, has eliminated two firms, OTE and Eunice, from tomorrow’s NOME auction for insufficient provision of electricity load data, sending a wider message to all participants that monitoring rights will be fully resorted to in order to combat various irregularities and problems.
Both OTE and Eunice described their eliminations as unfair and declared they would appeal.
Some pundits believe these eliminations also serve as warnings for traders believed to be preparing to bid aggressively at tomorrow’s auction for electricity amounts to be exported to markets where wholesale electricity prices are higher.
Aggressive bidding by export-minded traders would force local suppliers to purchase NOME electricity amounts at higher prices offering narrower profit margins for supply activity in the local market.
Besides the role of traders, officials also fear prices at tomorrow’s NOME auction could be boosted to higher levels as a result of the increasing cost of CO2 emission rights and elevated wholesale electricity prices around Europe.
A starting price of 36.34 euros per MWh has been set for tomorrow’s auction, up from the previous level of 32.05 euros per MWh.
Thoughts by officials to introduce new measures limiting NOME-acquired electricity exports, a planned phasing out of the auctions in accordance with the main power utility PPC’s bailout-required disinvestment of lignite units, as well as an uncertainty surrounding the auctions following the target model’s implementation, are all factors expected to impact tomorrow’s session.
Some pundits believe participants will stretch themselves to their limits to acquire the biggest possible electricity amounts tomorrow given the tougher, and uncertain, NOME conditions ahead.
As for industrial consumers, NOME price levels of between 42 and 43 euros per MWh tomorrow will enable independent energy firms to also enter the high-voltage market and supply small-scale customers. If prices rise to levels of around 47 euros per MWh, then the main power utility PPC’s price levels for industrial consumers will remain more competitive.