A delay by the European Commission in endorsing the country’s permanent CAT capacity mechanism is jeopardizing the main power utility PPC’s new Ptolemaida V power station from being included in this mechanism.
A mechanism induction agreement for Ptolemaida V needs to be signed by the end of the year if this new lignite-fired unit is to be eligible.
A rigid interpretation by Brussels of regulations and directives concerning the matter has market officials already believing the deadline will be missed.
The European Commission has set the implementation of the target model as a prerequisite for the CAT mechanism to be approved. This practically means that participants cannot sign mechanism agreements before January of February, at best, when the dry run begins.
PPC’s position on the transitory flexibility remuneration mechanism (TFRM) is also crucial to the matter.
The power utility has taken European Court action against the TFRM seeking its non-implementation and, instead, a direct transition to the permanent mechanism by contending, amongst other things, that market reforms are in progress through target model requirements. PPC has also questioned the necessity of the TFRM.
A withdrawal of PPC’s legal action would lead to a more flexible interpretation of regulations by the European Commission on the permanent CAT capacity mechanism, pundits believe.