RAE, the Regulatory Authority for Energy, is moving to limit, or even abolish, restrictions imposed on bilateral physical delivery contracts in Greece’s electricity market as a step towards further liberating the market for price de-escalation.
RAE, in a letter forwarded to the country’s energy exchange, has requested a study examining all scenarios that would further facilitate bilateral physical delivery contracts.
The energy exchange intends to have completed its study in three months so that RAE can proceed with related legislative initiatives.
The issue of whether bilateral contracts in Greece’s wholesale electricity market could contribute to a de-escalation of electricity prices in the retail market has preoccupied local authorities for quite some time.
In recent months, wholesale electricity market price increases in Greece have been almost fully passed on to the retail market, contravening the pattern of more mature European markets.