A far more competitive bidding contest is expected at tomorrow’s second NOME auction following a subdued inaugural session last October when a total of eleven companies acquired an electricity amount of 460 MWh at prices that reached 37.50 euros per MWh, just slightly above the starting price of 37.37 euros per MWh.
Electricity package amounts at the first NOME session, which brought into play a bailout-required measure aiming to break the main power utility PPC’s dominance by offering other traders access to the utility’s low-cost lignite and hydropower sources, ranged from 1 MWh to 108 MWh.
Market sources have identified and pointed out decisive factors that lead them to the conclusion of a different type of session tomorrow.
Firstly, the small amount to be offered, measuring 145 MWh, is not expected to satisfy the market’s needs. “There is a need for a greater amount, so it looks like we’re going to have to squeeze in,” remarked one company official.
Secondly, the System Marginal Price (SMP) increase as well as the rising wholesale prices will possibly apply upward pressure on the auction prices as buyers will have some leeway to raise their offers.
Thirdly, the acquisition of electricity amount purchases through the NOME auctions provides some security amid an unstable environment.
Sector officials noted that the electricity amount to be offered at tomorrow’s auction does not suffice to propel customer growth. Subsequently, tomorrow’s session will be more about offering some security to electricity suppliers rather than a tool that may lead to any drastic market share shifts among the independent electricity suppliers.