HEDNO

‘Red status’ after two unpaid bills for debt-flagging system

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A debt-flagging system being prepared by the energy ministry for the retail electricity market as a means of countering roving consumers who switch suppliers and escape from unsettled electricity bills would relegate consumers with two successive unpaid bills into a red zone, entitling suppliers to take action by requesting power supply cuts from the operator, the ministry appears to have decided.

Energy minister Thodoris Skylakakis held a meeting yesterday with officials from RAAEY, the Regulatory Authority for Waste, Energy and Water, and distribution network operator DEDDIE/HEDNO to discuss details of the debt-flagging system.

Consumers in the red-zone category would only be allowed to switch suppliers if their existing supplier refrains from disrupting their power supply.

Also, consumers would be removed from the red-zone category if they settle overdue amounts or begin servicing them through installment-based payback plans, according to the ministry’s plan.

The ministry is striving to finalize the plan’s shape as soon as possible as it aims to present it within October.

Over 30,000 consumers are believed to owe electricity-bill amounts to more than one supplier, according to ministry estimates.

Unpaid receivables, market officials estimate, have ballooned to approximately one billion euros. The sum has risen sharply since July, 2022, when consumers were given the freedom to switch suppliers even if owing amounts to previous suppliers.

Debt-flagging system needs more work, ministry decides

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A debt-flagging system being prepared by the energy ministry for the retail electricity market as a means of countering roving consumers who switch suppliers and escape from unsettled electricity bills requires further development, the ministry has decided.

Details still needed to finalize the plan, part of wider revisions to the supply code, will be discussed at an energy ministry meeting on Thursday to involve representatives of RAAEY, the Regulatory Authority for Waste, Energy and Water, and distribution network operator DEDDIE/HEDNO, to manage the debt-flagging system.

DEDDIE/HEDNO has requested a limit to its responsibility for the system as the operator will have no way of cross-examining the validity of data posted by suppliers. This is one of the draft’s needed improvements that will be discussed at Thursday’s meeting.

The aim is to establish clear-cut rules on customer switching in order to protect suppliers, hit by a sharp rise in bad debt. Customer credibility will be signified through a color-based ranking system.

An additional meeting could be required next week. The energy ministry wants all revisions finalized within the next couple of weeks so that it can present an upgraded supply code before the end of October.

Debt-flagging system for electricity market ‘imminent’

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A debt-flagging system to be made available to electricity suppliers as part of an effort to counter serial electricity-bill defaulters could be ready imminently, within the next month or two, officials at distribution network operator DEDDIE/HEDNO and RAAEY, the Regulatory Authority for Waste, Energy and Water, agreed during a meeting on Wednesday that included electricity supplier representatives as observers.

RAAEY presented a comprehensive plan for the development of a debt-flagging system, which DEDDIE/HEDNO officials ascertained could be ready for launch one to two months from now, sources informed.

However, DEDDIE/HEDNO clarified that it cannot take any responsibility for data to be posted on the debt-flagging system as it has no way of verifying its validity, the sources added.

As this data will be provided by electricity suppliers, establishing a transparent formula is crucial to ensure the operator will not be held accountable in the event that a consumer is erroneously marked as delinquent in the system due to a supplier’s mistake, and, as a result, suffers unjust repercussions without actually having outstanding debts.

Electricity suppliers are facing a surge in bad debts resulting from customers who opt to switch companies and leave behind unpaid bills, while just one in ten non-punctual consumers who have been blacklisted by suppliers and subsequently resorted to the country’s universal electricity supply service – offered, by law, by the top five suppliers – are paying fees for this service.

HEDNO liability for universal service abusers considered

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The energy ministry is open to discussing further a proposal by ESAI/HAIPP, the Hellenic Association of Independent Power Producers, that calls for distribution network operator DEDDIE/HEDNO to take on the representation and cost of electricity consumers who abuse the country’s universal electricity supply service.

It is offered, by law, by the top five electricity suppliers, based on market share, as a last-resort service to non-punctual consumers who have been blacklisted by suppliers.

ESAI/HAIPP officials held talks last week with the energy ministry’s leadership on next-step measures that could be taken if a time-limit for the service, now being discussed, has been exhausted by universal service users.

Just one in ten consumers resorting to the universal electricity supply service are paying their fees, it was recently revealed.

The cost of these payment failures, along with the cost of electricity theft, is initially covered by electricity suppliers, who, in turn, pass on the financial damage to paying consumers.

Operator HEDNO fined €1m by RAAEY for PV auction issues

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Distribution network operator DEDDIE/HEDNO has been handed a fine of 1 million euros by RAAEY, the Regulatory Authority for Waste, Energy and Water, over irregularities at PV auctions offering connection terms for the networks of the Peloponnese and Crete, which, the authority noted, were caused by the operator’s failure to ensure bidders conditions of equality and transparency during the auction, held online between October 21 and 25 last year.

The operator has the right to appeal within a 30-day period of publication or notification of the decision.

The energy ministry now faces the task of needing to manage this potentially contentious issue, as investors are believed to be preparing to take legal action against the operator.

Electricity debt-flagging details discussed by officials today

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The technical details and preparation time for a prospective debt-flagging system to be made available to electricity suppliers as part of an effort to counter strategic electricity bill evaders will be discussed at a meeting today between RAAEY, the Regulatory Authority for Waste, Energy, and officials of distribution network operator DEDDIE/HEDNO, to manage the new system.

Representatives of independent suppliers and power utility PPC are anticipated to take part in today’s meeting, serving as a follow-up to a broader industry-wide discussion regarding electricity bill evasion that took place last week.

It was decided, during last week’s meeting, that RAAEY would provide  the energy ministry, by October 20, with a proposal for a revision to Article 42 of the supply code in the electricity market. This revision will aim to prevent strategic defaulters who owe unsettled amounts from switching to new electricity suppliers without addressing their outstanding bills.

RAAEY will use, as a template, a preceding plan it had prepared and delivered to the energy ministry in the spring of 2021, following three rounds of consultation.

ESPEN, the Greek Energy Suppliers Association, plans, this week, to submit to RAAEY a proposal seeking to allow electricity suppliers to discontinue supply to customers who have two overdue electricity bills, energypress sources informed.

Flexibility in terms to unblock subsidies for roof-mounted PVs

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Authorities are preparing more flexible terms that would free funds available through a subsidy program for roof-mounted photovoltaics, currently encountering blockages when the specifications of equipment installed are different to systems noted in subsidy applications.

Revisions to the pvstegi platform, accepting applications, are now being planned in order to offer applicants some degree of flexibility. The changes will enable small reductions in capacities of PV systems installed compared to capacities of PV systems specified in applications.

At present, the pvstegi platform, operated by distribution network operator DEDDIE/HEDNO, does not allow for any deviations. Subsidy procedures are immediately blocked if any discrepancies are identified.

Minor capacity deviations that may result from the time subsidy applications are submitted to the time photovoltaic systems have been installed are understandable as investors could end up opting for slightly different equipment, such as solar panels or batteries with different capacities, during stretched out time periods between application and installation, market officials pointed out.

A first wave of successful applicants is expected to soon receive subsidy amounts through the roof-mounted PVs program. Approximately 10,000 applications have been submitted to date. PV systems need to incorporate batteries to be eligible for subsidies.

RAAEY proposal tackling ‘energy tourism’ in a month’s time

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RAAEY, the Regulatory Authority for Waste, Energy and Water, commissioned by the energy ministry to prepare a proposal for revisions to the electricity market’s supply code as a means of countering a surge in bad debt faced by electricity suppliers as a result of roving customers who are switching suppliers and escaping from unsettled electricity bills, will put forward its plan for a five-day consultation period, October 9 to 13, before finalizing its text and forwarding a completed version to the ministry by October 20.

This schedule was established at a RAAEY meeting yesterday with energy ministry officials and representatives of the country’s electricity suppliers.

RAAEY will use, as a template, a preceding plan it had prepared and delivered to the energy ministry in the spring of 2021, following three rounds of consultation.

At yesterday’s meeting, electricity supplier representatives raised objections to certain aspects of the existing plan and, it was agreed, will deliver proposed amendments by the beginning of next week. These concerns will be taken into consideration by RAAEY before it finalizes its proposal for the energy ministry.

Power utility PPC and independent suppliers are expected to forward their concerns through ESPEN, the Greek Energy Suppliers Association.

Revisions to the electricity market’s Article 42 of the supply code, which would stop strategic defaulters from fleeing to new electricity suppliers, will include a debt-flagging system, a key part of the previous proposals. This system will be managed by distribution network operator DEDDIE/HEDNO.

Under current market rules, consumers with unpaid electricity bills remain free to switch suppliers. Resulting bad debt is estimated to have reached at least 300 million euros and may have even exceed 400 million euros.

Second round bids for smart meters tender due November

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Final-round qualifiers, four in total, in a tender being staged by Greek electricity distribution network operator DEDDIE/HEDNO to offer a lucrative contract for the installation of approximately 7.5 million smart meters throughout the country have received all relevant information, including notification on their technical and financial offers, which will need to be submitted in the second week of November.

Greek company Protasis, partnering with France’s Sagemcom Energy & Telecom SAS; US corporation Itron’s Spanish subsidiary; fellow US firm Elster Rometrics’ Romanian subsidiary; and Slovenia’s Iskraemeco have qualified for the tender’s final round.

The four qualifiers have been provided all details concerning the technical requirements of the project, budgeted at 1.2 billion euros, up from an initial estimate of 800 million euros.

Meanwhile, the Council of State, Greece’s Supreme Administrative Court, has, according to sources, rejected a case filed by Swiss-headquartered group Landis+Gyr, challenging DEDDIE/HEDNO for its disqualification from the tender in the first round.

The court, sources informed, ruled that the distribution network operator was right to disqualify Landis+Gyr from the procedure as the company declared, as a sub-contractor, a production facility other than its Corinth plant, west of Athens, which serves as an international hub for Europe, the Middle East and Africa.

 

Delayed operator settlements troubling power suppliers

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Payment delays by distribution network operator DEDDIE/HEDNO and power grid operator IPTO to electricity suppliers for finalized amounts regarding transactions between them, and which cannot be recovered through customer billing, are developing into a major concern that has sparked a response.

ESPEN, the Greek Energy Suppliers Association, intends to soon forward a letter of protest concerning these payment delays to RAAEY, the Regulatory Authority for Waste, Energy and Water, and the energy ministry.

Apart from the payment delays, charges suppliers end up needing to cover are significantly higher than amounts calculated by them based on preliminary figures.

ESPEN, in its letter, is also expected to highlight the need for an improvement of formulas applied by IPTO and DEDDIE/HEDNO, so that such discrepancies can be restricted.

Due to long periods that have elapsed, delayed finalized amounts anticipated by suppliers cannot be recovered through customers who have consumed corresponding amounts of energy and, in addition, may have switched suppliers in the process.

Ministry preparing to toughen up on electricity theft

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The energy ministry is preparing to take strict action in an effort to combat electricity theft, a rising concern now estimated to represent 5 percent of electricity market revenue. Some 13,000 power meter breaches were reported last year by DEDDIE/HEDNO, the distribution network operator.

Energy ministry officials held talks yesterday with representatives of RAAEY, the Regulatory Authority for Energy, Environment, and Water, DEDDIE/HEDNO and electricity suppliers to discuss an action plan.

Besides tougher rules resulting in stricter penalties for electricity theft, energy market authorities also aim to take further action on two fronts.

DEDDIE/HEDNO, it has been decided, will install smart meters at all shops, especially in sectors where a greater number of electricity-theft cases have been observed, such as hospitality.

Smart meters provide real-time data on electricity consumption, making it easier to detect any unusual or unauthorized usage patterns.

Officials have also agreed to take action at Roma camps, where electricity theft has been rampant, by converting overhead power line crossings into underground networks.

Framework to offer investors RES grid-injection cut support

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The energy ministry is preparing to form a working group that will be tasked with establishing a sustainable framework to support essential reductions in renewable energy source (RES) grid injections, for the prevention of grid overloads.

This working group will also shape incentives for ongoing RES projects, so that batteries may be integrated into these investments.

Energy ministry officials as well as representatives of all the country’s market operators – Regulatory Authority for Energy, Environment, and Water; power grid operator IPTO; distribution network operator DEDDIE/HEDNO; RES market operator DAPEEP – are expected to participate in the working group.

In addition, market players will be invited to offer regular views on the work being carried out by the working group, to ensure that the investment community’s positions have also been taken into consideration.

The working group’s interventions are planned to mitigate the impact of RES grid-injection cuts on investors, and also to ensure that investments in new RES plants will possess the required predictability in terms of project cash inflow.

Operator prioritizing grid projects for RES penetration

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Distribution network operator DEDDIE/HEDNO, driven by the necessity to accommodate for increased penetration of renewable energy sources, is currently engaged in a comprehensive evaluation process to identify the segments of the network that should be prioritized for reinforcement work.

As noted by the operator in its response to a related comment submitted during consultation of its development plan for 2022 to 2026, prioritization of grid reinforcement projects aimed at increasing RES penetration has been based on the level of activity at respective substations, technical feasibility of infrastructure reinforcement, and the possibility of connecting additional RES units to the grid, in cooperation with the System Operator.

The most mature reinforcement projects are being promoted for immediate implementation and financing through the Recovery Fund, the operator added.

DEDDIE urged to plan projects for island interconnections

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RAAEY, the Regulatory Authority for Energy, Environment, and Water, has urged distribution network operator DEDDIE/HEDNO to prepare essential network development initiatives required to facilitate the progression of interconnections concerning Dodecanese island Astypalea, as well as islands situated in the Aegean Sea’s northwest and south.

The request accompanied RAAEY’s approval of the operator’s development program covering 2022 to 2026, which did not include these needed projects.

The authority has requested an update from DEDDIE/HEDNO on the necessary network development projects that have not been included in the operator’s network development plan but are related to the interconnections within a month of the approval’s publication in the government gazette.

The operator will need to incorporate these necessary network development projects into the next revision of its development plan.

RAAEY green light for network upgrade, five projects rejected

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RAEEY, the Regulatory Authority for Waste, Energy and Water, has approved distribution network operator DEDDIE/HEDNO’s network development plan for 2022 to 2026, but, in doing so, has rejected some of the plan’s projects.

DEDDIE/HEDNO submitted a 2.2 billion-euro development plan comprising 139 projects, its objective being to develop “a modern network for all”.

RAAEY rejected five projects, budgeted at a total of 143.9 million euros, from the operator’s five-year development plan, including a 110 million-euro archive digitization project, as well as a 19.8 million-euro cyber security plan.

 

RAAEY to avoid clear-cut view on small PV RES auction issues

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RAAEY, the Regulatory Authority for Waste, Energy and Water, is not expected to deliver a clear-cut decision on whether the results of two RES auctions for small-scale PVs of up to 400 KW in the Peloponnese and Crete should be confirmed or annulled, but, instead, will offer a report detailing how these auctions proceeded and what kind of issues arose.

Decisions will then need to be taken at a political level as to whether the results of these RES auctions remain valid.

There have been indications of some issues concerning distribution network operator DEDDIE/HEDNO’s online platform used for these auctions, but, overall, the platform, to which applications were submitted, ran smoothly, according to the authority.

For example, although bidders from abroad were not blocked from participating in these RES auctions, this does not appear to have affected the auctions as, in practice, no bids were lodged from outside Greece.

Also, evidence suggests that robotic software for automated bidding was used. However, any investors who may have employed such a method did not gain an advantage over rival bidders as very few applications appear to have been successfully submitted in such fashion.

It is also important to note that data concerning the platform’s operation for the two auctions is no longer available as it was deleted by the operator three months after the two RES auctions were staged, which makes it impossible to ascertain, with precision, how they fared.

 

Non-interconnected island gains for independent players

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A sizeable chunk of electricity users on the non-interconnected islands signed up with independent suppliers, primarily Elpedison, in the first half of 2023, a latest monthly report released by distribution network operator DEDDIE/HEDNO has shown.

Power utility PPC’s market share on the non-interconnected islands contracted from 68.4 percent in January to 60.3 percent in June, mostly to the benefit of Elpedison, whose market share on these islands rose from 7.33 percent in January to 13.8 percent in June, the DEDDIE/HEDNO figures showed.

Fellow independent power suppliers Heron, Mytilineos, NRG, Volterra, Aerio Attikis and Zenith also achieved market share gains over the six-month period.

Heron’s market share rose to 7.73 percent from 6.96 percent; Mytilineos increased its share to 6.22 percent from 4.16 percent; Watt + Volt’s market share contracted to 3.78 percent from 4.9 percent; NRG increased its share to 3.54 percent from 2.71 percent; Aerio Attikis made a marginal gain to 1.7 percent from 1.68 percent, as did Zenith with a rise to 0.83 percent from 0.76 percent and Volterra, whose market share rose to 0.26 percent in June from 0.2 percent in January.

Further step taken for roof-mounted solar panel licenses

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Distribution network operator DEDDIE/HEDNO has taken a further step towards completing a licensing framework for roof-mounted solar panels by enabling such systems that have qualified for subsidy support to engage in net-metering at a capacity of up to 10.8 kW.

DEDDIE/HEDNO has underlined that PV units need to be electrified before supporting documents for subsidies can be submitted.

Subsidy amounts may be lowered or even cancelled if, following initial approval, discrepancies are found during inspections of data and supporting documents.

Some 12,500 grid-capacity reservation applications have been submitted by PV investors for small-scale systems with generation capacities of up to 10 kW.

Of these 12,500 applications, 7,500 combine batteries and, as a result, have secured subsidies. The other 5,000 or so grid-capacity reservation applications, submitted for standard residential solar panels, have been lodged by private owners not interested in qualifying for subsidy support.

RAAEY reaches decisions on WACC levels for IPTO, HEDNO

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Following months of deliberation, RAAEY, the Regulatory Authority for Waste, Energy and Water, has reached decisions on WACC levels for power grid operator IPTO and distribution network operator DEDDIE/HEDNO, setting the former’s at 7.51 percent, for 2023 to 2025, and the latter’s at 7.66 percent for 2023 and 2024, energypress sources have confirmed.

Based on these decisions, IPTO’s average WACC level for the four-year regulatory period, covering 2024 to 2027, works out to 7.16 percent, while the four-year regulatory period average for DEDDIE/HEDNO is 7.11 percent.

The discrepancy in WACC levels resulted from different borrowing-cost coefficients applied to a WACC formula used by RAEEY. All other factors that were taken into account, including country risk and cost of capital, were identical.

IPTO initially sought a higher WACC rate, pushing for its cause from as far back as last year, citing unfavorable changes in the economic environment, including inflation and interest rate increases.

Just recently, RAAEY set a WACC rate of 7.85 percent for gas grid operator DESFA, covering the entire four-year regulatory period (2024-2027), and an 8.57 percent WACC rate for DEPA Infrastructure, limited to 2023.

Unchanged public service surcharge, budget sum boost for special account

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Distribution network operator DEDDIE/HEDNO has proposed keeping a public service compensation (YKO) surcharge unchanged but bolstering its special account with a cash injection of between 90 and 110 million euros from the state budget as a means of ensuring its sustainability in coming years.

The operator offered its proposal in response to a question on the matter by RAAEY, the Regulatory Authority for Waste, Energy and Water.

DEDDIE/HEDNO, in its response, forecast a 37 million-euro deficit for the country’s public service compensation special account at the end of 2023, followed by a surplus of more than 17 million euros at the end of 2024.

The operator recommended keeping the YKO surcharge – included in electricity bills – unchanged and bolstering its special account with an injection from the state budget based on forecasts for 2023 and 2024 as well as the need for a safety reserve of between 50 and 60 million euros.

RAAEY, which, according to energypress sources, appears to have agreed with the operator’s recommendation, is expected to approve and adopt the proposal at its plenary session on Thursday.

This approval would pave the way for RAAEY to proceed with a request to the government for an extraordinary grant to the YKO special account from the state budget.

The YKO special account, nowadays managed by DEDDIE/HEDNO, recorded a deficit of 5 million euros in April. It grew to approximately 25 million euros at the end of May.

 

New minister outlines sector issues ahead of policy speech

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The reelected conservative New Democracy party government’s newly appointed energy minister Theodoros Skylakakis has, in recent days, been preparing a list of energy market problems and pending matters, with emphasis on major issues, such as new tariffs, RES production cuts – needed during periods of low demand to avoid grid overloading – as well as development plans for offshore wind farms and hydrocarbon exploration, ahead of his parliamentary speech in Parliament tomorrow, when key policies by the new government will be outlined by Prime Minister Kyriakos Mitsotakis and his associates.

In the lead-up, Skylakakis has held meetings with top officials representing key market players such as RAAEY, the Regulatory Authority for Waste, Energy and Water; power utility PPC; power grid operator IPTO; distribution network operator DEDDIE/HEDNO; gas grid operator DESFA; RES market operator DAPEEP; and EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, to discuss and take note of energy-sector problems and pending issues ahead of tomorrow’s speech in parliament.

The energy minister has also noted views expressed by RES sector officials on the new National Energy and Climate Plan. According to sources, Skylakakis’ predecessor, Pantelis Kapros – who served a short stint as energy minister in the caretaker government that held office between two rounds of voting, in May and June – has passed on a RES mix plan entailing a 60-40 share between wind and solar energy units, respectively.

Also, the new energy minister prefers to stick to a schedule that would terminate energy-crisis support measures at the end of September, rather than offer extensions, sources added.

 

RAAEY decides on WACC levels for DESFA, DEPA Infrastructure

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RAAEY, the Regulatory Authority for Waste, Energy and Water, has decided, after lengthy consideration, on WACC levels for two gas companies, DESFA, Greece’s gas grid operator, and DEPA Infrastructure.

The WACC level set for DESFA, 7.85 percent, will apply for a four-year period covering 2024 to 2027, while DEPA Infrastructure’s rate, 8.57 percent, applies for 2023.

The discrepancy between the two WACC levels resulted from different borrowing-cost coefficients applied to a WACC formula used by RAEEY. All other factors that were taken into account, including country risk and cost of capital, were identical.

DESFA is now expected to set tariffs ahead of tenders for three grid interconnection projects.

As for DEPA Infrastructure, the company’s new owner, Italgas, Europe’s second largest gas distributor, was expecting a WACC level of between 8 and 9 percent over the next four-year regulatory period in order to carry out its Greek investment plan through DEPA Infrastructure and its three gas distribution subsidiaries, EDA Attiki, EDA Thess and DEDA.

Decisions on WACC levels for power grid operator IPTO and distribution network operator DEDDIE/HEDNO are expected by the end of July.

IPTO has requested a revised WACC level for the regulatory period covering 2022 to 2025, while DEDDIE/HEDNO is awaiting a revision for 2023 and 2024.

Capacity insufficiency plan for 11 non-interconnected islands

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Distribution network operator DEDDIE/HEDNO has forwarded a plan to RAAEY, the Regulatory Authority for Waste, Energy and Water, detailing how capacity insufficiencies on 11 non-interconnected islands are intended to be covered this summer.

The operator attached its proposed solution to a wider development plan for the non-interconnected islands between 2023 and 2029.

DEDDIE/HEDNO’s plan includes proposals for Rhodes, Santorini, Samos, Lesvos, Chios, Karpathos, Limnos, Ikaria, Kythnos, and Kastellorizo (officially named Megisti), as well as the Kos-Kalymnos grid.

Emergency measures have been required in recent years as a result of prolonged heatwave conditions combined with increased tourism.

DEDDIE/HEDNO’s proposals include a wind-energy facility purchase or long-term rental plan to cover Rhodes’ capacity insufficiency of 17.51 MW.

In addition, long-term rental plans have been proposed by the operator for Santorini’s capacity insufficiency, estimated at 20 MW, Samos’s 12-MW insufficiency, Lesvos’ insufficiency of 14 MW, and Chios’ shortage of 24.5 MW.

IPTO formula for RES grid-injection cuts up for consultation

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Power grid operator IPTO has offered a description of its temporary RES grid input-curtailing formula it applies, whenever necessary, to ensure grid stability by preventing overloading during periods of lower electricity demand, for consultation on the matter staged by RAAEY, the Regulatory Authority for Waste, Energy and Water.

Based on the operator’s formula, RES output cuts are currently conducted across the board and proportionately. The operator issues orders for RES grid-injection cuts to individual units, groups of units, as well as to private medium-voltage networks through which green-energy plants are connected to medium and high-voltage substations.

The IPTO formula forwarded for consultation is essentially serving as a transitional framework until a permanent set of rules are established. They are expected to feature criteria prioritizing the order of RES units curtailing their grid injections.

IPTO, according to its formula, is also entitled to issue orders to distribution network operator DEDDIE/HEDNO so that the latter may curtail grid injections at projects linked to the distribution network. The two operators have signed a Memorandum of Understanding concerning this matter.

The IPTO text forwarded for consultation also describes an inspection procedure for RES units as well as a penalty system for units not adhering to curtailment orders.

 

DEDDIE staging tender to upgrade 10 distribution system substations

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Distribution network operator DEDDIE/HEDNO is staging a tender for projects to digitally upgrade and reinforce ten of the network’s substations. The projects are budgeted at 7.16 million euros, including VAT, while bidders face a July 11 deadline, following an extension that has been granted.

More specifically, the project concerns the upgrade of circuits and implementation of a digital communication network at ten 150kV/MT substations.

Project details to be taken on by the winning bidder will range from provision of new digital control and protection units, plus a variety of other equipment, for the upgrade of control and protection panels at power supply units, to system trial runs.

DEDDIE/HEDNO has increased its investments by three-and-a-half times over recent years to upgrade the distribution network and make it more resilient, the operator’s CEO Tasos Manos pointed out in a recent article published by energypress.

 

 

Public service compensation account in deficit territory

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The public service compensation (YKO) special account has been in deficit territory since April, latest data has shown, despite a previous official forecast projecting it would record a surplus of approximately 510 million euros in 2023.

The issue was raised by Dimtris Fourlaris, energy-division deputy at RAAEY, the Regulatory Authority for Waste, Energy and Water, in a letter to distribution network operator DEDDIE/HEDNO.

In the letter, leaked yesterday, the authority’s deputy has requested an update from the operator that would include an extended forecast on the public service compensation special account’s figures for 2023 and 2024, as well as an estimate on what the contribution, into the special account, should be from the budget or consumers, through increased charges.

RAAEY will use DEDDIE/HEDNO’s updated information to prepare a proposal for the energy ministry concerning an adjustment of public service compensation surcharges included in electricity bills.

According to the RAAEY deputy, the public service compensation special account recorded a deficit of approximately 5 million euros at the end of April.

No changes to RES, energy storage grid injection limit plan

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The energy ministry has completed work on a ministerial decision designed to restrict injections into the grid by new RES and energy storage units and plans to sign it off within the next few days as the matter is one of the energy sector’s pending issues the ministry wants to have settled ahead of the May 21 legislative election.

According to sources, formulas proposed by power grid operator IPTO and distribution network operator DEDDIE/HEDNO have been maintained for the ministerial decision.

The ministry’s decision to impose grid injection restrictions was taken in order to make optimal use of available electrical capacity in the transmission and distribution system and ultimately maximize the number of green-energy power plants.

According to the legislative revision, the energy injection restrictions will not be able to exceed 5 percent of the respective annual capacities of units subject to the limit.

The measure will apply to all RES plants under development and possessing finalized connection offers, as well as to green-energy projects for which connection requests have been submitted to either DEDDIE/HEDNO or IPTO. Batteries will also be subject to the injection restriction, regardless of whether they have been incorporated into RES systems or not.

Grid overcomes Easter’s grid overload scare with little action

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The country’s grid emerged untroubled by an overload scare concerning the Greek Easter long weekend, a situation prompted by the combination of high RES output, a lower-cost energy strategy planned by the grid operators, and low demand.

Overcast weather in most parts of the country restricted solar energy output, sparing power grid operator IPTO of the need to intervene in order to protect the grid from being overcharged amid low-demand conditions.

Had action been necessary, IPTO planned to orchestrate a highly complex combination of moves that would have included restricting electricity imports, deactivating as many power stations as possible and significantly cutting RES input.

As it turned out, Good Friday was the most challenging day for the grid, as cloudy weather on Easter Saturday and Easter Sunday proved pivotal in helping authorities overcome the overcharge threat.

IPTO, coordinating with distribution network operator DEDDIE/HEDNO, only needed to make limited RES cuts.

RAE to approve compensation plan for outage-affected users

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RAE, the Regulatory Authority for Energy, is expected to finalize a proposal this week for the country’s first ever framework offering compensation to electricity users affected by lengthy power cuts as a result of extreme weather conditions.

According to sources, RAE officials could approve the authority’s proposal for a compensation package at a plenary session tomorrow, bringing the framework a step closer to being legislated.

As previously reported by energypress, distribution network operator DEDDIE/HEDNO will be responsible for the compensation system.

Compensation amounts to be paid out to affected electricity users will be many times over their distribution network fee payments, but will not exceed 2,000 euros, sources have informed.

Also, compensation payments will be limited to lengthy power disruptions, defined as over 72 hours long, and to areas with up to one million power meters.

During consultation staged last December, DEDDIE/HEDNO officials noted the operator faces challenges to swiftly repair network faults as a result of a lack of automated systems that enable instant identification of grid spots experiencing issues.

RAE increases distribution usage fee, demand fall a factor

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A distribution network usage fee included in electricity bills is set for an increase to cost typical households an additional 76 euros or so per year, following a decision reached by RAE, the Regulatory Authority for Energy.

RAE took this decision based on two factors, firstly after opting to offer distribution network operator DEDDIE/HEDNO a regulated revenue increase, its first in many years, which will lift the operator’s required revenue to 981 million euros in 2023 from 744 million euros last year.

The second factor behind the increase is the significant decrease in electricity demand compared to 2019 levels, a decline linked to the pandemic’s lockdown periods as well as the ensuing energy crisis. This decrease in electricity demand has forced RAE to increase the operator’s revenue per KWh.

Ordinary households, using up to 3,750 kWh of electricity per year, can now expect to face annual distribution network usage surcharges totaling 174 euros, up from 98 euros at present, according to calculations conducted by local energy market price-comparison website allazorevma.gr.