Greece’s System Marginal Price (SMP), representing the wholesale electricity price, has risen by as much as 18 euros per MWh during a market test held as a prelude to PPC’s bailout-required sell-off of lignite units. The rise was determined by the utility’s Meliti unit, included in the sale package.

This increase is not expected to bode well with investors contemplating the upcoming PPC sale of lignite units.

On December 1, at 2am, the SMP, shaped by the Meliti unit, registered at 40.421 euros per MW. Today, at 10am, the SMP, once again shaped by the Meliti unit, reached 58.087 euros per MWh.

Responses by prospective investors to a market test questionannaire prepared by the European Commission’s Directorate-General for Competition and concerning the PPC sale have now been collected by Brussels authorities and are currently being processed. The feedback is believed to be unfavorable.

The major price fluctuation caused by PPC’s Meliti unit could simply be technical. For example, maintenance costs over the past month may have been factored into calculations. However, this SMP rise could also be related to the market test and overall sale procedure.