Reserved hopes of NOME price containment this Wednesday

New NOME auction-related export disincentives are expected to subdue – at the next session, this Wednesday – the aggressive approaches of certain auction participants buying considerable electricity amounts with the intention to export to higher-price markets.

However, expectations of the measure’s effectiveness remain reserved as other factors could still drive up prices and once again deprive independent electricity suppliers of lower-cost wholesale electricity as a tool to compete against the main power utility PPC in the retail market.

Wholesale electricity prices are currently flying high in European markets but Greece’s SMP, relatively lower at levels of around 70 euros per MWh, has only partially reflected this trend.

Market fears fueled by rising CO2 emission right prices could prompt aggressive bidding among auction participants this Wednesday.

Such factors have raised fears of a repeat, if not deterioration, of results at Greece’s previous auction, which generated a record price level of 48.8 euros per MWh, approximately 3.5 euros over the previous record set at the end of 2017.