Greece’s electricity market is not an appealing prospect for traders as a result of a series of imperfections and restrictions, the European Federation of Energy Traders (EFET) has noted, informing the Greek energy exchange of an urgent need for a clear-cut schedule leading to solutions as soon as possible.
The EFET observations on the Greek market were part of a wider report covering markets of EU member states in southeast Europe.
The existing model applied in Greece does not allow market participants to trade freely in the country’s electricity market, EFET pointed out, noting, for example, that over-the-counter contracts are only partially permitted as traders cannot buy and resell electricity quantities in Greece, but, instead, need to export quantities they have purchased.
A rule forbidding market participants to switch from forward to day-ahead or intraday markets was another issue identified by EFET.
EFET also made note of rigid market rules conditions for transboundary trading that require imports and exports to be scheduled separately.
Traders who have secured year-long physical transmission rights (PTRs) through the Greek-Turkish grid interconnection stand to lose over 150 euros per MWh, according to the European Federation of Energy Traders (EFET), as a result of a change in the annual maintenance schedule for the link made by the operators of the two countries, subjecting traders to unanticipated higher wholesale electricity market prices in both markets at present.
Greek power grid operator IPTO and its Turkish counterpart, TEIAS, have reset this year’s annual maintenance period for the grid link to November 8-14, instead of the initial, and customary, September 13 to 19 period.
EFET has underlined that holders of PTRs will be compensated based on the initial marginal price of the annual auction, 15.38 euros per MWh.
EFET has forwarded a letter to IPTO, TEIAS and other related bodies calling for a further deferral of November’s planned maintenance work at the the Greek-Turkish grid interconnection until early next year, so that traders making annual PTR offers can take into account the maintenance period.
Regulating retail prices impedes the successful implementation of the Clean Energy for All Europeans Package, a unique opportunity that would empower European energy consumers, Eurelectric, Europex, WindEurope and EFET (European Federation of Energy Traders) have warned in a joint statement.
The package promises to empower consumers through a combination of measures, such as efficient price signals, certified comparison tools and easy switching, the four associations noted. Should retail prices continue to be regulated in some member states, the benefits brought by the Clean Energy Package would be severely weakened, they stressed.
Retail price regulation is also a serious obstacle to competition among electricity supply companies, the groups noted, as this reduces the incentive of companies to become more efficient and discourages the emergence of new market participants, they explained.
In addition to their negative impact on retail markets, regulated prices also distort the functioning of the wholesale markets, limiting and partly undermining the price formation process, ultimately leading to higher electricity costs for all consumers, the associations noted.
Regulated end-user prices aim to protect household – even non-household – consumers from energy costs increases but the pricing methodology often lacks transparency and can prove counterproductive, the associations stressed.
Also, the phasing-out of regulated prices does not imply the end of fixed-price contracts, the associations specified, adding that electricity suppliers will continue to offer such contracts.
The European Federation of Energy Traders (EFET) has filed a complaint to the European Network of Transmission System Operators (ENTSO-E) against the Greek and Bulgarian power grid operators, noting that the two are restricting trans-boundary trade between the two countries.
EFET described the conduct of IPTO, Greece’s power grid operator, and ESO, its Bulgarian counterpart, as abuse of their dominant positions in natural monopolies.
The complaint filed by EFET was prompted by IPTO’s decision to ban electricity exports on January 11 and 12 and ETO’s ensuing electricity export ban, which began on January 13.
EFET noted that the trans-boundary trade restrictions imposed led to the violation of guaranteed rights concerning interconnection access.
In its complaint, the federation also pointed out that the export ban negatively impacted market players who do not have access to alternative electricity sources, prompting significant financial damages for certain producers.
This EFET complaint is the first to be filed as a result of the developments prompted by the energy crisis in early January. As a result, both IPTO and ETO are now both being closely watched by European authorities.