The main power utility PPC has filed a case at the Council of State, Greece’s Supreme Administrative Court, in an effort to cancel a transitional CAT mechanism remunerating electricity producers for providing grid flexibility, just days after the staging of an inaugural flexibility auction.

The power utility believes the mechanism is unfavorable for its hydropower and lignite-fired power stations, compared to the benefits offered to natural gas-fueled power stations.

PPC, which expressed its objections against the mechanism in a recent public consultation procedure for the flexibility remuneration plan, has also resorted to the Supreme Court in the past to tackle other temporary CAT mechanisms.

In addition, the power utility has described as unfortunate a decision by RAE, the Regulatory Authority for Energy, to establish a flexibility mechanism whose operation is directly linked to the balancing market instead of focused on ensuring that new markets operate in a timely manner and delivering a mechanism to protect energy sufficiency.