PPC sides with operators against RES producers on new deal

LAGIE, the Electricity Market Operator responsible for the wholesale electricity market, and HEDNO, the Hellenic Electricity Distribution Network Operator, appear to be resorting to delay tactics and other means to avoid court action initiated by renewable energy source (RES) producers, reacting against onerous provisions included in the new deal, sector sources have told energypress.

The measures included in the new deal, aiming to solve LAGIE’s deficit problem, include feed-in tariff cuts for producers in exchange for bank loan extensions and interest rate reductions.

The main power utility PPC appears to have sided with the state, LAGIE, and HEDNO against an effort by RES producers to have the new deal nullified by the Council of State, Greece’s supreme administrative court, in cases filed by the law firm Metaxas & Associates on behalf of RES producers.

RES producers argue the RES special account deficit was caused by structural market distortions from which suppliers – meaning PPC primarily, in practical terms – have benefited. RES producers contend suppliers have been purchasing electricity from RES producers at low prices, leading to the creation of a RES special account deficit.