Sharp rise in NOME starting price, to €55 per MWh from €36, forecast

The new starting price for the country’s NOME auctions, currently being worked on by RAE, the Regulatory Authority for Energy, based on various data being collected, will increase considerably to a level of about 55 euros per MWh, up from the current price of 36.34 euros per MWh, primarily as a result of the sharp rise in CO2 emission right costs, market sources have projected.

The authority has requested cost-related data from the power utility PPC, to be factored into its NOME starting-price calculations.

RAE takes into account the variable costs of PPC’s lignite-fired power stations and hydropower units as well as the production mix of these two.

The new starting price, expected to be announced within the next few days, will be applied to a NOME auction scheduled for July 17, offering 500 MWh, followed by a session on October 16, to offer 767 MWh.

NOME auctions were introduced about three years ago as a means of offering independent players access to the main power utility PPC’s lower-cost lignite and hydropower sources for more competitive pricing policies.