RAE, the Regulatory Authority for Energy, is pressing ahead with preparing and processing Greece’s electricity market reforms agreed to in the country’s third bailout agreement, according to energypress sources. RAE working groups are currently preparing comprehensive proposals on matters such as the NOME-type auctions plan and new CATs (Capacity Availability Tickets).

The new NOME-type auctions plan stands as a key part of RAE’s overall effort. RAE officials intend to have completed the new proposal on time for the post-elections (September 20) period, which would allow the new Production Reconstruction, Environment and Energy Ministry to not waste time and submit a related bill to Parliament for ratification by October.

RAE’s previous NOME-type auctions plan, which had been forwarded for a second round of public consultation at the end of 2014, will serve as the basis for the new proposal.

However, two key issues will need to be resolved. One of these concerns creditor representative objections to the plan’s extent of support for the industrial sector. The country’s creditor representatives, especially European Commission officials, believe NOME-type auctions represent a tool for intensifying competition in the retail electricity market and not a means of reducing industrial sector energy costs.

At this stage, it remains unknown which consumer groups will need to be served by the plan’s envisaged alternative supplier, who will be able to purchase lower-priced electricity at the auctions. As part of the plan, PPC is expected to drastically decrease its market share.

The second – and most crucial – aspect concerns the starting price of NOME-type auctions, which are expected to begin at a base price reflecting production costs at PPC’s lignited-fired power stations.