Panagiotakis condemns CAT plan, warns against coal output fall

Local lignite production in Greece, at an all-time low, needs to be boosted, main power utility PPC chief executive Manolis Panagiotakis stressed during a news conference yesterday.

Panagiotakis disclosed that this year’s local lignite production will reach 15.5 TWh, down from 19.5 TWh last year and levels of around 30 TWh in the past.

He called for regulation revisions so that CO2 emission right costs concerning lignite-fired power stations are not factored into daily energy plan offers.

Panagiotakis said that a tax imposed on lignite should be scrapped following the elimination of the special consumption tax (EFK) on natural gas.

He reiterated the need for free carbon emission rights, as applies to other EU member states with relatively small economies, describing the initiative as a “strategic matter” and requirement for sufficient lignite-fired production levels in Greece, which the PPC chief noted is necessary for the next two decades.

Panagiotakis also condemned the temporary CAT mechanism as it excludes hydropower production and burdens PPC by roughly 80 million euros over a twelve-month period. This cost, he said, will wipe out PPC’s benefits from the elimination of the special consumption tax on natural gas, used by the utility at its gas-fueled power stations.

He stressed that RAE, the Regulatory Authority for Energy, needs to finally introduce a permanent CAT plan that is scientifically sound and based on market conditions. “We find ourselves in a position where PPC, facing criticism for not wanting to liberalize the electricity market, is supporting a market-based system while others are not,” Panagiotakis remarked.

 

Bailout measures, including energy issues, ratified Sunday

The draft bill submitted to Parliament yesterday for debate ahead of ratification this coming Sunday includes a number of measures of energy-related interest, such as a complex plan for power grid operator IPTO’s split from its parent company, PPC, the main power utility, the introduction of NOME-type auctions, as well as special consumption tax (EFK) revisions for electricity production.

The superbill needs to be legislated by the Greek government prior to the next Eurogroup meeting on May 24 as part of the effort to complete the first review of Greece’s third bailout package.

Natural gas-fueled power stations will be exempted from a special consumption tax on natural gas in an effort to boost domestic industrial sector competitiveness, as well as to adjust to EU directives. The special consumption tax will be imposed climactically on all other natural gas sub-categories, except for household use.

The NOME-type auctions, to provide third parties with access to PPC’s low-cost lignite and hydropower sources as part of the bailout-related obligation to help break the utility’s dominance, will be launched in 2016 by offering an electricity amount equivalent to eight percent of the total amount used in the retail market in the previous year. This percentage figure – applied to each previous year’s power consumption – will increase to 12 percent in 2017, and 13 percent in 2018 and 2019.

The auction regulations will allow for some flexibility of terms. If PPC’s resulting market share loss exceeds the target figure by more than two percent during a six-month period, then RAE, the Regulatory Authority for Energy, will reduce the percentage figures for electricity amounts offered and vice versa.

The first NOME auction will be held at the end of September this year, while actual electricity orders secured will be made available to independent traders during the year’s final quarter.

IPTO’s split from PPC, a long and complex process, will result in a transfer of no less than 51 percent of the operator to the Greek State and the rest to private investors. A strategic investor will be entitled to acquire a maximum of 24 percent through an international tender to be announced one month after an upcoming PPC shareholders meeting. The winning bidder, who must be a certified power grid operator in the EU, will need to be chosen within five months. The agreement for the transfer of the stake to the strategic investor will need to be signed within eight months of the tender’s announcement.

The superbill also includes the temporary CAT plan which will compensate electricity producing units at a rate of 45,000 euros per KW, the maximum payable amount for each unit being 15 million euros. The temporary CAT mechanism will cost a total of 225 million euros.

The draft bill just submitted to Parliament also nullifies older laws, ratified by country’s pre-Syriza administration, concerning a part-privatization plan for PPC, locally dubbed “Little PPC”, and the sale of a 66 percent share of IPTO.

 

IPTO split, NOME auctions, temporary CATs on superbill

Legislation amendments for the power grid operator IPTO’s split from parent company PPC, the main power utility, as well as the introductions of NOME-type auctions and a transitional CAT mechanism to compensate power stations for production, will be included in a bailout-related superbill headed to Greek Parliament today ahead of ratification this coming Sunday.

These measures need to be legislated prior to the next Eurogroup meeting on May 24 as part of the effort to complete the first review of Greece’s third bailout deal.

According to energypress sources, no changes have been made to the drafts prepared for the IPTO and NOME auction plans, compared to the content leaked just days ago. Also, the temporary CAT mechanism’s draft is identical to the plan proposed by the Greek government and endorsed by the European Commission’s Directorate-General for Competition.

Previous laws for the IPTO and NOME auctions will be nullified along with the ratification of the amendments.

NOME auctions will provide third parties with access to PPC’s low-cost lignite and hydropower sources as part of the bailout-related obligation to help break the utility’s dominance.

As part of the IPTO breakaway plan, PPC shareholders will need to approve the sale of at least a 20 percent share to a strategic investor. A tender for strategic investor offers will need to begin this June, while the selection process must be completed a few months later, by October.

If Greece’s international lenders deem the IPTO plan’s progress in 2016 as unsatisfactory, especially on matters concerning the choice of a strategic investor, then the Greek State will need to set a date for the submission of binding offers pertaining to the sale of PPC’s entire stake in IPTO, in other words 100 percent.

The NOME plan, based on a French model, is expected to lead to a 20 percent reduction of PPC’s wholesale and retail market shares by 2017 followed by a further decline, below 50 percent, by 2020.

The temporary CAT mechanism approved by Brussels will be valid for 12 months and will not apply retroactively. The mechanism’s cost for the 12-month period is 225 million euros. Producers will be compensated 45,000 euros per MW. The mechanism’s one-year duration will only be fully utilized in the event that the permanent plan is not introduced sooner. Progress on the replacement plan is believed to be moving along slowly, meaning that the temporary CAT plan, once launched, will almost definitely run for its full one-year duration.

 

Legislation amendment for delayed new CAT plan pending

The country’s new CAT system has yet to be implemented roughly forty days after the European Commission’s Directorate-General for Competition endorsed the plan, based on a Greek proposal. Its delay has been caused by a pending legislation amendment required to specify the measure’s starting date, according to RAE, the Regulatory Authority for Energy.

The legislation amendment is necessary in addition to the authority’s approval and the signing of a ministerial decision, RAE noted.

According to the Environment and Energy Ministry, it intends to either include this required amendment to one of the draft bills it plans to soon submit to Greek Parliament or attach it to a draft bill to be introduced by one of the other ministries.

The entire process has developed into a saga as electricity production stations, already deprived of CAT payments for output in 2015, have remained unpaid for first-quarter production this year.

Based on the plan endorsed by the European Commission, the new CAT plan, a transitionary measure ahead of a fixed plan, will be valid for 12 months but will not apply retroactively.

Its cost for the 12-month period will total 225 million euros. Its one-year duration will only be fully utilized in the event that the permanent plan is not introduced sooner. However, the replacement plan is apparently also being developed at a snail’s pace, meaning that the initial temporary CAT plan, once launched, will almost definitely run for its full one-year duration.

The country’s new CATs are among the prerequisites for the completion of the ongoing first review of Greece’s third bailout package.

The European Commission is also expecting pre-notification, from the Greek government, of the country’s permanent CAT plan by next month.

The fixed CAT mechanism is expected to be launched no sooner than 2017 and is very likely to be based on a UK model geared by an auction capacity system, without pre-determined prices, as energypress has disclosed.

It is expected that all electricity production units that operate as a fundamental part of the grid – lignite-fired power stations, natural gas-fueled electricity stations, and hydropower facilities – will be able to participate in the auctions. Officials are believed to be currently examining the prospect of not offering payments to amortized facilities, or to significantly reduce compensation levels for older units.

Given that the system’s needs differ every year and that excess installed capacity exists at present, it is believed that an auction-based system will help achieve a balance.

Implementation of temporary CAT mechanism now imminent

The country’s temporary CAT mechanism, to apply non-retroactively for a 12-month period, is expected to be signed and made official by RAE, the Regulatory Authority for Energy, over the next few days, if not hours. It will then have immediate effect.

As has been previously reported, Greece’s temporary CAT mechanism, endorsed by the European Commission last month, has a total cost of 225 million euros and will be used to provide payment for participating electricity producing units at a rate of 45,000 euros per MW.

As has been agreed to with the lending institutions, its 12-month validity will be cut short if the permanent CAT mechanism, which RAE is believed to be preparing, is ready for introduction during this period. Such a prospect, however, is considered unlikely.

Finalization and implementation of the temporary CAT mechanism is one of the conditions demanded by the country’s lenders for completion of the ongoing first review of Greece’s third bailout package.

As for the permanent CAT mechanism, the lenders have asked the Greek government to pre-notify the European Commission about the plan by June.

The permanent mechanism, as disclosed by energypress, is expected to be introduced as of 2017 and will be based on the UK model, shaped as an auction capacity system without pre-determined prices. The need for a model offering stability and knowledge of terms to apply in advance for all parties involved, and which can be implemented for as many years as is necessary, is the main reason why this approach is being worked on.

Given that the system’s needs differ every year and that excess installed capacity exists at present, it is believed that an auction-based system will help achieve a balance.

It is expected that all electricity production units that may operate as a fundamental part of the grid – lignite-fired power stations, natural gas-fueled electricity stations, and hydropower facilities – will be able to participate in the auctions.

Officials are believed to be currently examining the prospect of not offering payments to amortized facilities, or to significantly reduce compensation levels for older units. The European Commission has made such a request and the Greek government is obligated to take it into account. The Greek government is seeking to ensure that unit flexibility plays a greater role in the process determining payment levels, as is the case in other countries, based on EU guidelines adopted. Also, the operator will be fully responsible for monitoring the mechanism and making payments.

 

CATs, high-voltage tariffs included in bailout review talks

Besides issues that drew wider attention over the past few days in the negotiations between local officials and the country’s creditor representatives for the first review of Greece’s third bailout package, such as the IPTO (power grid operator) and NOME auction plans, other crucial fronts were also tackled. According to energypress sources, agreements were reached on CATs and high-voltage tariffs.

The lenders, sources informed, demanded that the main power utility PPC reach agreements with its high-voltage customers for the establishment of cost-based prices that take into account respective consumer profile characteristics influencing production costs. It appears that this demand has been accepted.

Establishing a transitional CAT system, as it had been recently approved by the European Union, was also set as a prerequisite for the review’s completion. It was also agreed that a fixed CAT system agreed to between the lenders and the Greek government must be forwarded to the European Commission by June.

The agreement between lenders and Greek officials also includes obligations to legislate a new renewable energy source (RES) support framework that is sustainable and adheres to EU directives; revise the RES-supporting ETMEAR surcharge included on electricity bills with the objective of wiping out the RES special account deficit within 12 months; double the natural gas quantities made available at DEPA (Public Gas Corporation) auctions; and complete energy-sector tax revisions based on terms agreed to with the lender insttutions.

DG Comp approves temporary CAT plan, starting in May

The European Commission’s Directorate General for Competition has approved a new transitional CAT system for Greece’s electricity production facilities, based on a proposal submitted by local officials, according to information obtained by energypress.

The Greek government was informed of the decision yesterday following a series of postponements and delays that deprived local electricity producers of CAT-related payments for the entire 2015 and will do likewise for most of the first half of 2016.

RAE, the Regulatory Authority for Energy, is likely to decide today on the next moves leading to the CAT plan’s implementation, especially whether the procedure will need to be channeled through Parliament or RAE approval, alone, could suffice.

Any chance of the plan being applied retroactively has already been ruled out. According to prevailing opinion, the transitional CAT mechanism could come into effect in early May. Greek government sources have ascertained that no further delays will be made, a pledge that remains to be seen.

Based on the bailout agreement reached with the country’s creditor representatives, the temporary CAT mechanism will be valid for one year, unless the permanent CAT mechanism already being worked on by RAE is introduced prior to this twelve-month period. Such a development, which could lead to the implementation of the permanent CAT mechanism by the end of the year, has not been ruled out.

The temporary mechanism’s total cost for the twelve-month period is 225 million euros and will provide payment for electricity unit production at a price level of 45,000 euros per MW.

As for the fixed CAT mechanism, energypress sources informed that it could be based on the UK model, shaped as an auction capacity system without pre-determined prices. The main reason for such an approach is the need for a model offering stability for all parties involved and which can be implemented for as many years as is necessary.

All electricity production units – lignite-fired power stations, natural gas-fueled facilities, and hydropower plants – will be able to take part in the auctions. Consideration is being given to not offering CAT payments for units whose investment costs have been amortized, or significantly reducing CAT payments for older units. The European Commission has made these requests, which Greek authorities are obliged to take it into account.

 

 

New temporary CATs on final stretch, awaiting EU approval

Following much delay caused by a series of postponements, the country’s new temporary CAT system, to be valid in 2016 from the date of its implementation onwards, appears to be on the final stretch.

According to energypress sources, the Greek CAT plan is now in Brussels following the provision of updated market data concerning 2015 by RAE, the Regulatory Authority for Energy.

As the next step, the European Commission’s Directorate-General (DG) for Competition will need to approve the plan, which is expected to be a brief procedure, before the CAT plan is implemented in Greece.

Local market officials engaged with the matter told energypress that the European Commission can be expected to act swiftly, assuming the updated market data has been provided, as is believed.

These officials noted that the time required to implement the plan in Greece will depend on what route the government chooses to take. If, for example, a legislative process through Greek Parliament is chosen for the temporary CAT plan, then the time required will be considerably greater than it would be if the plan is to be simply approved by the RAE board and then implemented.

The bailout-related plan’s long delay has deprived electricity production facilities of CATs for output in 2015. At present, producers have been left without a temporary CAT plan, while the ensuing permanent plan has yet to be presented.

There appears to be no chance, whatsoever, of any retroactive payments, judging by the exchange of views on the issue between Greece’s energy ministry and the Directorate-General (DG) for Competition. Besides the amounts lost for 2015, local producers can also expect to miss out on payments for production concerning the months of the current year without a temporary CAT plan.

The temporary CAT plan was originally scheduled to be implemented in 2015, based on 2014 market data. However, its delay prompted the Directorate-General (DG) for Competition to request updated 2015 data, to be used for the plan’s introduction this year.

Support mechanisms of other EU member states are currently being reviewed. The EU wants to base Greece’s anticipated temporary CAT plan on 2015 data to avoid any appeals by these fellow EU members whose mechanisms are being reviewed.

New CAT plan still not endorsed by the European Commission

The long delay in the introduction of Greece’s new CAT mechanism, a bailout agreement obligation, has left the temporary CAT plan unimplemented, while, in addition, the permanent plan has yet to be presented.

The most recent causes of the CAT plan’s delay may be attributed to the four vacancies on the seven-seat board at RAE, the Regulatory Authority for Energy, currently limited in its operational capacities, as well as the European Commission’s pending approval of Greece’s proposal for the temporary CAT plan to be implemented in 2016.

Amid the ongoing exchange of views between the energy ministry and the European Commission, it has become apparent that the latter will not permit any retroactive payments. Subsequently, producers can already forget about receiving payments for production in 2016 related to the months that have already elapsed without a temporary CAT plan in place.

The Greek government also needs to deliver updated data concerning the country’s grid in 2015, not 2014, to the European Commission.

The Greek CAT plan, originally intended for implementation in 2015, was based on electricity system data concerning 2014. However, as a result of the delay, the European Commission is now demanding 2015 data in order to proceed with the 2016 plan. The ministry has instructed IPTO, the power grid operator, LAGIE, the Electricity Market Operator, and RAE, to gather the required updated data concerning 2015.

According to the EU, if Greece’s new CAT mechanism were to be based on data concerning 2014, and not 2015, then this could prompt appeals from fellow EU member states whose CAT systems are currently being reviewed.

Offering comments at yesterday’s Athens Energy Forum, market officials closely linked to the CAT matter noted that the updated data could be promptly delivered to the European Commission, as long as no other problems emerged, meaning that EU’s approval of the temporary Greek CAT plan could soon be granted.

The officials noted that the main issue at this stage concerns how fast the Greek government will choose to act once its temporary plan has been endorsed. If, for example, the government opts to ratify a draft bill for the temporary CAT plan rather than seek approval from the RAE board – once the operator’s posts are filled – then the process will be extremely long.

The bailout obligation’s pressure is expected to swiften the CAT procedures. Market officials believe a repeat of 2015 will be avoided. The CAT plan failed to be implemented as a result of various delays.

 

RAE’s older 225m-euro CAT plan to be used for 2016

An older CAT plan prepared by RAE, the Regulatory Authority for Energy, under its former president Nikos Vassilakos, whose five-year term expired in February, has been used as the basis for a temporary CAT plan to cover 2016. The European Commission has received notification from energy minister Panos Skourletis of the plan, which had been previously endorsed and, as a result, is expected to swiften progress towards implementation.

All natural gas-fueled power stations and certain hydropower stations will be paid 45,000 euros per MW for ensuring the grid’s flexibility, according to energypress sources. It seems that the CAT mechanism will not cover capacity availability, meaning lignite-fired stations will not be entitled to any support from the mechanism.

The total cost of payments through the CAT mechanism in 2016 is estimated to reach 225 million euros, 55 percent of which will be channeled to the main power utility PPC and the other 45 percent to independent producers.

The previous CAT system, which expired at the end of last year, cost 570 million euros annually. Electricity producers will not receive any amounts for 2015 as the country’s lenders did not approve retroactive CAT payments for the year.

The demand for greater flexibility of the country’s power grid is the result of the increased penetration of renewable energy source (RES) production, especially photovoltaic and wind-energy systems. This has created a need to cover fluctuating capacities and an inability to forecast production levels, which are determined by weather conditions.

The energy ministry and lenders agreed to implement a temporary CAT mechanism for 2016 as more time is needed for wholesale market revisions.

As for the fixed CAT mechanism, procedures are progressing. Energypress sources have reported a plan based on the UK-model may be used. RAE has already hired a UK consultant.

 

Unchanged ‘disruption’ plan, temporary CAT model signed

Greece’s energy minister Panos Skourletis signed ministerial decisions on Friday for the adoption of a “disruption management” plan – to enable energy cost savings for major-scale industry in exchange for shifting energy usage to off-peak hours whenever required by IPTO, the power grid operator – as well as a new CAT mechanism, according to energypress sources.

The “disruption management” plan will be implemented without changes to an older format that had been prepared by the pre-Syriza coalition, despite efforts for revisions by Skourletis and his team during negotiations with the country’s creditor representatives, the sources informed.

This means that all photovoltaic system producers, except for the household sub-category, will contribute 3.6 percent of their total turnover to the “disruption management” plan, wind-energy facility operators will contribute 1.8 percent of turnover, and small-scale hydropower stations 0.8 percent of turnover. This plan had been endorsed by the European Commission during the pre-Syriza coalition’s tenure.

The planned contributions to the “disruption management” plan by renewable energy source (RES) producers have  been the cause of protest by the sector, which has contended it is being burdened to support the industrial sector.

Based on the aforementioned percentage figures, a total of about 48 million euros will be raised annually for the “disruption management” plan, although it is believed that no more than 30 million euros is required.

RES sector producers have suggested they should register to fund the plan but only contribute amounts gradually, based on real needs.

As for the new CAT mechanism, the energy ministry and creditor representatives agreed to implement a temporary mechanism until the end of 2016 as there is insufficient time to make required revisions to the wholesale market for the introduction of a permanent model.

Independent RES producers will not receive any CAT-related payments for production in 2015 as a result of the European Commission’s prohibition of retroactive payments through the temporary CAT plan.

 

 

Energy Ministry to update sector officials on key reforms

The Environment and Energy Ministry will host a meeting today to update sector officials on bailout-related developments concerning the power “disruption management” plan, the country’s new CAT mechanism, as well as a Variable Cost Recovery Mechanism, locally acroymed MAMK.

The power “disruption management” plan will enable energy cost savings for major-scale industry in exchange for shifting energy usage to off-peak hours whenever required by IPTO, the power grid operator. The Variable Cost Recovery Mechanism, to help cover power station start-up costs, is expected to burden the renewable energy source (RES) sector.

Officials representing RAE, the Regulatory Authority for Energy, IPTO, the power grid operator, LAGIE, the Electricity Marker Operator, PPC, the main power utility, PPC Renewables, SEV, the Hellenic Association of Industrialists, EVIKEN, the Association of Industrial Energy Consumers, ESIAPE, the Greek Association of Renewable Energy Source Electricity Producers, HAIPP, the Hellenic Association of Independent Power Producers, ELETAEN, the Greek Wind Energy Association, HELAPCO, the Hellenic Association of Photovoltaic Companies, SPEF, the Hellenic Association of Photovoltaic Energy Producers, as well as other associations, will attend the meeting.

Temporary CAT mechanism to be extended through 2016


A temporary CAT mechanism initially intended for the current year will now be extended to cover 2016 as a result of the government’s admission that it cannot deliver a finalized permanent CAT plan by the new year as a result of revisions required in the wholesale market.

Independent electricity producers, affected by a poor year, should not expect to receive any retroactive payments covering output in 2015, following European Commission opposition to retroactive payments through the temporary CAT system.

An amount ranging between 200 million and 250 million euros is expected to be provided for the temporary CAT mechanism in 2016, to be paid out to gas-fueled power stations, both independent units and ones operated by PPC, the main power utility.

The permanent CAT mechanism is expected to be implemented in 2017, assuming certain required revisons are made in the wholesale market, such as the abolishment of a 150-euro per MWh limit, as well as measures to  facilitate imports.

Once in place, the permanent CAT mechanism is expected to compensate power stations offering flexibility to the grid with an amount that could reach as much as 500 million euros per year. Besides gas-fuled power stations, hydropower stations will also qualify for the permanent CAT mechanism, following a European Commission proposal. Lignite-fired power stations will be excluded as it has become apparent the country’s grid will need to manage greater fluctuation in production levels as a result of the renewable energy source (RES) sector’s increased role being anticipated. The new CAT mechanism is expected to be applied for a period of either two or three years.

The energy ministry is planning a seminar for next Friday to present the latest electricity market developments.

 

 

Greek CAT proposal includes UK-type auction capacity system

Greek officials have finalized their proposals for the country’s two new CAT mechanisms, one serving as a temporary model and the other as a fixed plan to be activated once a number of required electricity market reforms have been implemented. According to local officials, this stage could be reached by the end of 2016.

Prior actions required as part of Greece’s bailout agreement are intended to make the Greek electricity market competitive and pave the way for the adoption of the fixed CAT mechanism, an auction-based system.

The prior actions needed include liberalizing the upper limit imposed on the current System Marginal Price (SMP), currently at 150 euros per MWh, increasing the price for supplementary services, and abolishing all additional charges for electricity exports.

The transitional CAT mechanism is expected to be valid only for production units offering flexibility, namely natural gas-fueled power stations and hydropower stations, as had been planned by the previous administration at RAE, the Regulatory Authority for Energy.

The fixed CAT mechanism will be shaped as an auction capacity system based on the UK model, without pre-determined prices. The intention is to achieve an improved balance amid a system whose needs may differ each year.

Officials are pushing to soon have acquired a clear picture on how the market will operate over the next two to three years so as to introduce a plan that will not require any revisions or intervention, while also avoiding market distortions that may prompt loss-incurring operations at some production units or overpayment at others.

Temporary CAT plan the only reform causing lender problems

Greek government officials are awaiting responses on proposals submitted to the lender institutions, including the European Commission, for demands in the energy domain, primarily electricity sector revisions.

Although there appear to be no major problems with Greece’s proposals concerning the NOME auctions, the permanent CAT mechanism, the “disruption management” plan, to enable energy cost savings for major-scale industry in exchange for shifting energy usage to off-peak hours whenever required by IPTO, the power grid operator, the Variable Cost Recovery Mechanism, to prevent certain power stations from operating below cost by helping cover their start-up costs whenever they are called into action to help meet the grid’s needs, and new industrial sector tariffs, a problem has emerged on the temporary CAT plan, intended to offer retroactive pay to producers for output in 2015.

This is how energy minister Panos Skourletis described the latest picture on reforms yesterday.

As energypress has previously reported, lenders disagree with the temporary CAT plan’s retroactive payments, claiming these will be regarded as state aid.

However, solid progress is reportedly being made for the permanent CAT mechanism. It is believed the entire month of November will be needed to complete this reform, a time-consuming one.

As for the NOME auctions plan, intended to offer wholesalers access to main power utility PPC’s low-cost lignite-fired electricity production as a means of reducing the vertically integrated utility’s market dominance, lenders appear to have accepted Greece’s proposal of skipping a near-term objective of reducing PPC’s market share by 25 percent and instead focusing on the plan’s longer-term target of reducing the utiliy’s share to below 50 percent by 2020, from 94 percent at present.

Public consultation procedures for the Variable Cost Recovery Mechanism plan were launched by RAE, the Regulatory Authority for Energy, last Friday.

A ministerial decision is reportedly ready for the “disruption management” plan and will soon be delivered. As has been reported, renewable energy sector (RES) producers will be greatly burdened by this mechanism. However, household and small-scale PV systems may be given preferential treatment.