Independent electricity suppliers

PPC variable green tariff for March down to 9.4 cents/KWh

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A further reduction in wholesale electricity prices in February, down to an average of 72.2 euros per MWh, from 93 euros per MWh a month earlier, has created conditions for lower retail electricity prices in March.

Power utility PPC’s variable green tariff has been set at 9.4 cents per KWh for March, not including any discount the supplier will decide to offer.

Rival power suppliers are expected to follow suit and lower their prices for March, down to roughly 8 cents per KWh, based on formulas applied.

Sliding natural gas prices at the TTF in recent times could lead to a further decline in electricity prices in April, assuming the TTF index remains at its currently low level of around 24 to 25 euros per MWh.

Besides variable green tariffs, the country’s new color-coded tariff system, introduced January 1 to simplify price comparisons, also offers variable yellow tariffs, a lesser risk for suppliers, as their levels are set at the end of each month. In addition, consumers may opt for fixed blue tariffs.

 

PPC rivals fear low gas prices may sustain pricing aggression

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Power utility PPC, the domestic market’s dominant and influential player, clearly subdued its new variable green tariffs – introduced January 1 by all suppliers – to the greatest degree possible, setting a lower-than-expected rate of 13.63 cents per KWh for January that forced most rivals to respond with green tariffs that averaged 15.4 cents per KWh, overall for independent suppliers, rather than levels of between 16 and 17 cents per KWh, which they would have preferred.

Natural gas prices in international markets have been on a downward trajectory over the past few days, a trend that may encourage PPC to maintain its aggressive pricing policy for a second consecutive month when it sets green tariff levels for February in three-and-a-half weeks’ time.

The prospect has raised concerns among independent suppliers, fearing they may not be able to endure suppressed profit margins for a second month running and, instead, set tariffs at between 16 and 17 cents per KWh to avoid sacrificing profit once again.

Independent suppliers will be keeping a close watch on any consumer shifts this month before deciding on their tariff levels for February.

Besides variable green tariffs, the newly introduced tariff system, also includes fixed blue tariffs and variable yellow tariffs.

Consumers had up until December 31 to express preferences or be automatically transferred to the green-tariff category by their suppliers.

Consumers automatically transferred to green tariffs represented at least 70 percent of the respective client bases of all suppliers.

 

1.6m customers owe €1.2bn in low-voltage electricity bills

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Electricity suppliers are burdened by 1.2 billion euros in unpaid receivables owed by 1.6 million active household and business customers on their customer lists.

Under existing market rules, consumers with unsettled electricity bills remain free to switch suppliers, making legal discourse, a costly and time consuming option, the only option available to suppliers seeking to recover unpaid energy-bill amounts from customers who have fled to rival suppliers.

Energy tourism, as the phenomenon has been dubbed locally, has played a big role in the accumulation of unpaid receivables, and, worse still, bad debt estimated at 1.64 billion euros and accumulated by 1.3 former customers.

The energy ministry is preparing tougher rules, including the introduction of a debt-flagging system, to restrict consumers from switching suppliers if they owe amounts.

According to data provided by RAAEY, the Regulatory Authority for Waste, Energy and Water, an average of 21.5 percent of consumers – from the pool of suppliers –  owe electricity bill amounts to their respective suppliers.

A 20.83 percent share of power utility PPC’s low-voltage customers currently face overdue electricity bills. The percentage of debt-owing customers is even higher for independent suppliers, at 23.66 percent, or 445,000 of 1.88 million customers.

In the medium-voltage category, 10.66 percent of PPC’s 9,600 customers face overdue electricity bills, compared to 20.67 percent of 1,520 customers represented by independent suppliers.

In the high-voltage category, 23 of 210 consumers (10.95%) represented by PPC are behind on their electricity bill payments, compared to 50 of 145 customers (34.25%) represented by independent suppliers.

 

Higher gas prices to push up September electricity tariffs

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Significantly higher natural gas prices in international markets over the past few days will lead to wholesale electricity price increases of between 10 and 15 percent next month, compared to August, in Greece’s day-ahead market, market officials anticipate.

The country’s electricity retailers will be announcing their nominal tariffs for September on the 20th of this month, a monthly procedure required by market rules.

It is estimated that most electricity suppliers will use better-than-expected revenues in August to subdue their tariff increases for September.

Even so, if the price-rise projection is confirmed, then electricity retailers can be expected to announce residential tariffs starting from 10 cents per KWh, including punctuality discounts, and reaching as high as 19 cents per KWh.

Power utility PPC’s pricing policy for next month will be pivotal in shaping the decisions of rival suppliers given the influence the energy company maintains over the market as a result of its dominant market share.

Also, the price levels set by PPC for September will hold significant sway in the government’s determination of whether to provide subsidies and, if so, the extent of such financial support.

Suppliers spared of €10/MWh cost on electricity producers

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Electricity suppliers will no longer be factoring into their tariffs a special surcharge of 10 euros per MWh on natural gas used for generation purposes following a recent revision to this extraordinary measure.

The country’s power retailers are currently working on their tariffs for April, due to be announced on Monday, based on a recent law requiring suppliers to announce price levels for every forthcoming month by the 20th of each preceding month.

Though the aforementioned flat-rate surcharge no longer applies, electricity producers have not been entirely spared of special contributions. An amendment that came into effect this month now requires electricity producers to contribute to the state a monthly surcharge that is equivalent to 5 percent of the TTF natural gas index.

The now-terminated special surcharge of 10 euros per MWh on natural gas used by producers for generation purposes is estimated to have increased retail electricity bills by 18 to 20 euros per MWh.

Though the eventual cost – for consumers – of the new TTF-based surcharge remains unknown, it will definitely be lower than costs resulting from the flat-rate formula. Lower TTF levels will mean lower related costs for electricity producers, which, by extension, will enable suppliers to offer reduced retail prices.

Suppliers are expected to announce reduced tariffs for April on the 20th of this month as wholesale electricity prices and the TTF index have been on  downward trajectories.

Independent suppliers are forecast to offer tariffs of around 0.20 euros per kWh, a reduction of 0.02 to 0.03 euros per kWh compared to levels for March. Power utility PPC may lower its prices below 0.20 euros per kWh, according to unconfirmed reports.

These lower prices will essentially not offer reduced prices for consumers, but the government’s subsidy support policy, keeping retail power prices at levels of between 14 to 16 cents per KWh, will cost the administration less.

 

PPC maintains its low-voltage customer base in 2022

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Power utility PPC managed, more or less, to maintain its low-voltage customer base in 2022, whereas private-sector electricity suppliers made limited gains, fourth-quarter data on Greece’s retail electricity market published by distribution network operator DEDDIE/HEDNO has shown.

PPC ended 2022 with approximately 4.96 million customers in the low-voltage category, just 53,000 less than its number of customers at the end of 2021, the operator’s data showed.

Private-sector electricity suppliers ended 2022 with just under 1.69 million customers in the low-voltage category, increasing their overall portfolio by only 31,000 compared to the end of 2021, according to the DEDDIE/HEDNO data.

In 2021, PPC lost a far greater number of low-voltage customers, an exodus numbering 255,000, while private-sector suppliers had gained approximately 305,000 customers, nearly ten times more than their marginal gain in 2022.

Universal supply service takes on 50,000 extra meters in 2022

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An estimated 50,000 low-voltage consumers around the country resorted, in 2022, to the universal electricity supply service, covering the needs of black-listed consumers who have been shunned by suppliers over payment failures, latest electricity market figures have shown.

The number of households and businesses now being supplied low-voltage electricity via the universal electricity supply service – provided collectively, by law, by the electricity market’s top five suppliers, based on market share – rose to a level of approximately 198,000 at the end of 2022, up from roughly 148,000 a year earlier, a sharp rise highlighting the troubles consumers are having covering electricity bills amidst the energy crisis.

Given these figures, the universal electricity supply service, charging consumers higher tariffs, is ranked sixth in terms of power meters represented, essentially meaning that only power utility PPC, the dominant retail market player, and four other electricity suppliers hold greater market shares.

PPC ended 2022 with 80,000 fewer low-voltage customers, after losing some 255,000 customers in this category in 2021.

February power tariffs to be lowered, conditions favorable

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Sliding electricity prices on the energy exchange, since mid-January, and the continuing drop in natural gas prices at the TTF index are creating favorable conditions for lower retail electricity prices.

A first retail market sign of these improved conditions is expected tomorrow, when suppliers post their February prices based on a recently introduced market rule requiring them to announce their prices for each forthcoming month by the 20th of the previous month.

Suppliers are expected to drop their nominal price levels for next month as low as 0.20 to 0.25 euros per KWh, not including anticipated state subsidies.

According to sources, power utility PPC, the dominant market player, is not prepared to drop its retail electricity price so low for next month, but it will offer a significant cut on its January offer.

Once retail electricity prices for February are out, the energy ministry will set subsidies so that finalized retail prices drop to a level of 0.09 euros per KWh.

The day-ahead market’s average price for electricity has set a new low, falling, today, to 58.44 euros per MWh, from 204.40 euros per MWh just days ago. It should be noted that suppliers take into account a broader time period when calculating their prices for each forthcoming month.

The TTF gas index has also plunged in recent weeks to levels of between 55 and 60 euros per MWh, well below levels of 150 euros per MWh in December.

 

No essential market share changes for suppliers after some mobility

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Consumer switches from one electricity supplier to another appear to be stabilizing following some month-to-month mobility between January and October, a reflection of the unease felt by consumers amid the energy crisis.

Power utility PPC, the dominant market player and key source of new customers for independent suppliers, has virtually regained mild market losses experienced since January.

PPC began the year with a 43.37 percent market share, at the end of January, in the mid-voltage category, before dropping as low as 35.35 percent in March, only to eventually rebound to 41.73 percent by August.

In the low-voltage category, PPC began the year with a market share of 65.16 percent, achieving marginal gains in ensuing months for a market share of 66.78 percent by August.

Overall, PPC’s market share was 64.50 percent in January, experienced a slight dip to no less than 63.36 percent in May, and ended August at 64.41 percent, virtually unchanged from the beginning of the year.

 

 

Applications for installment-based electricity bill payments doubled

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The number of electricity consumers applying for installment-based settlement of electricity bills has doubled over the past four months, market officials have informed.

Households are now needing to deal with electricity bills representing the late-winter period of what was a long winter. Low temperatures persisted throughout March, prompting high electricity consumption levels amid a market of exorbitant tariff levels.

Independent electricity suppliers are reported to be offering troubled consumers installment-based payback arrangements of between three to five monthly installments.

Power utility PPC is offering customers monthly installment payback plans over as many as 24 months, depending on the amount owed.

 

PPC low-voltage customer loss continues slowdown in 4Q ’21

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Power utility PPC’s number of departing household and business consumers slowed down in the fourth quarter of 2021 to a total of 37,000, from 47,000 in the previous quarter, market data released by DEDDIE/HEDNO, the distribution network operator, has shown.

PPC’s decreased number of departing customers in the low-voltage category, a trend that was sustained throughout 2021, especially since the beginning of the energy crisis, highlights the power utility’s pricing policy, which includes discounts.

During the second quarter of 2021, PPC lost 70,000 low-voltage customers, while the company’s customer loss in the first quarter of last year was approximately 100,000.

As a result, independent electricity suppliers attracted a diminishing number of new customers from quarter to quarter last year.

The country’s independent electricity suppliers attracted a total of 67,500 low-voltage customers in the third quarter of 2021, down from 85,000 in the second quarter and 103,000 in the first quarter.

PPC’s low-voltage customers totaled 5.02 million at the end of 2021, down from 5.06 million at the end of the third quarter. Independent suppliers represented 1.66 million suppliers at the end of 2021, up from 1.61 million at the end of the third quarter.

Supreme Court ruling vindicates IPTO in €120m payment dispute

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The Supreme Court of Greece has issued a verdict in favor of power grid operator IPTO, sparing the operator of the need to proceed with a delayed payment of a 120 million-euro sum concerning older clearances, made by the operator and sought by independent electricity suppliers, who have not been able to receive this money as power utility PPC, the market’s biggest player and contributor, has yet to deliver its related share to the operator.

IPTO is neither a buyer nor seller of electricity and cannot be embroiled in financial differences involving energy companies, according to the court decision. This legal development promises to trigger new cases pitting energy-company creditors and debtors against each other.

The country’s three independent electricity producers, Elpedison, Mytilineos and Heron, stand to receive the majority of the pending 120 million-euro sum, while smaller non-vertically integrated suppliers are also entitled to smaller shares.

Paradoxically, RAE, the Regulatory Authority for Energy, has been pressuring electricity suppliers and issuing fines for amounts they owe to the operators, even though IPTO has not been able to deliver the 120 million-euro amount to suppliers as a result of PPC’s failure to contribute its share.

PPC’s returning customers still rising, up 44% in November

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The number of customers returning to power utility PPC continued to grow in November,  7,500 customers leaving independent suppliers for the switch, a 44 percent increase compared to a month earlier, when 5,200 customers returned to the power utility.

Despite the rising number of customers returning to PPC, the outflow to independent suppliers still remains greater, meaning the power utility’s customer base is shrinking, but at a slower rate.

According to data covering the market from January through November, approximately 29,800 customers left independent suppliers to return to PPC, nearly fivefold the figure registered for the equivalent period last year, or 490 percent higher.

It remains unclear if December will produce a similar pattern. PPC, since the beginning of the month, has introduced a fixed-tariff offer of 18 cents per KWh (17 cents per KWh for online applications).

PPC chief executive Giorgos Stassis recently denied that competition in Greece’s electricity market is eroding. He stressed the market has been fully liberalized, noting the power utility’s retail market share will gradually fall to nearly 50 percent over the next few years.

 

PPC cuts operator, contractor debt by €800m in 2 years

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Power utility PPC has settled most of its outstanding debt owed to operators and contractors, reducing the amount from 900 million euros in 2019 to 70 million euros at present, the figure with which the corporation expects to end the year, energypress sources have informed.

During the country’s ten-year recession, prior to the pandemic, PPC’s debt owed to operators and contractors had peaked at nearly one billion euros.

The corporation now owes 50 million euros to contractors and 20 million euros to the three market operators – DAPEEP, the RES market operator; IPTO, the power grid operator; and DEDDIE/HEDNO, the distribution network operator – latest company data has shown, the sources noted.

Besides benefitting PPC, which, for years, was embroiled in a series of legal battles with operators, contractors and equipment suppliers, the debt reduction is also helping offer market stability.

Other suppliers have had difficulties keeping up with payments to operators during the energy crisis and its narrower profit margins. If PPC, the dominant supplier, was also delaying its payments to operators at present, the energy market may have been in an unstable condition.

The total amount currently owed by electricity suppliers to the market operators is estimated at 350 million euros, making PPC’s 20 million-euro owed just a fraction of the sum.

 

Power suppliers following up bloated bills with installment payback offers

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Electricity suppliers are following up their delivery of greatly increased energy bills to household customers with telephone calls offering installment-based payment terms as a preemptive move to avoid a new wave of unpaid receivables amid the energy crisis and loss of customers.

These suppliers, mostly companies that are part of vertically integrated energy groups, are contacting customers who have received monthly electricity bills at unprecedented levels of 200 euros or more, still not overdue, to offer installment-based terms, energypress understands, following feedback from consumers.

Customers are being offered a choice in the number of installments they prefer for their payback programs, while some suppliers are also offering interest-free credit card payments, energypress was informed.

 

 

Electricity consumers unsettled, greatly increased return to PPC

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An increased number of electricity consumers are switching suppliers, unsettled by the rising energy prices of recent months, the biggest gainer of this activity being power utility PPC, latest market data made available to energypress has shown.

The number of electricity consumers shifting suppliers increased by 50 percent in September, compared to the level in April. Specifically, 1.5 percent of the country’s electricity consumers changed supplier in September, up from one percent in April, the data showed.

Interestingly, the number of consumers returning to PPC, still the dominant player, more than doubled in September, compared to April. This trend is believed to have gained even further momentum in October.

The government’s role in presenting PPC as a safer, more socially conscious enterprise, as well as the company’s pricing policy, offering fixed tariffs, have been identified as the main factors behind this increased return of customers to PPC, market officials noted.

 

Supplier overdue payments to operators reaches €350m

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Overdue payments owed by energy suppliers to the country’s market operators have been on the rise since summer, now exceeding 350 million euros, a development that has prompted the government to consider implementing an installment-based payment schedule as part of the solution.

The sharp increase in wholesale electricity prices over recent months has had a severe affect on the cash flow of suppliers, putting them under major financial pressure.

However, it should be pointed out that the majority of this 350 million-euro amount owed by suppliers to operators concerns the power utility PPC and includes a considerable amount owed from long before the current energy crisis.

Power grid operator IPTO, distribution network operator DEDDIE/HEDNO, and RES market operator DAPEEP are all owed sums by the country’s suppliers.

RAE, the Regulatory Authority for Energy, is now considering a three-part solution entailing:  provision of letters of guarantee by suppliers to the operators, to prevent any further rise of the debt owed; immediate deposits covering 50 percent of amounts owed, either in cash or through bank guarantees representing equivalent amounts; and settlement of the remaining 50 percent through an installment-based schedule of between 8 to 12 payments, depending on respective agreements.

PPC lignite-fired electricity package sales to rivals for ’22 progressing fast

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Power utility PPC is moving ahead at full speed with its offering of lignite-fired electricity packages to rival suppliers as part of a recent antitrust agreement reached between the energy ministry and the European Commission.

Lignite-fired electricity packages offered by PPC to rivals, covering all four quarters in 2022, have so far resulted in sales amounting to 1,740 GWh for next year.

PPC will need to sell, to rival suppliers, lignite-fired electricity packages estimated at a little over 2,100 GWh for the first, second and third quarters of 2022.

Sales have so far reached 475 GWh for the first quarter, 382 GWh for the second quarter, 386 for the third quarter and 497 GWh for the fourth quarter.

Transactions for most of the 1,740 GWh in lignite-fired electricity sales completed have taken place through the European energy exchange, reaching 1,697 GWh.

Transactions through the Greek energy exchange were limited to 43 GWh, for quantities concerning 1Q in 2022. PPC made available bigger quantities without attracting buyers.

Analysts partially attributed this reservation to the adverse conditions currently faced by domestic suppliers, who, as a result of exorbitantly higher wholesale electricity prices, are being forced to spend far greater proportions of cashflow on electricity purchases covering the current needs of customers, which has prevented them from considering futures contracts.

 

PPC must market over 2,100 GWh in lignite-fired power by end of month

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Power utility PPC needs to move fast this month with its offering of lignite-fired electricity packages to rival suppliers as part of a recent antitrust agreement reached between the energy ministry and the European Commission.

According to the agreement, PPC must market lignite-fired electricity packages for the first, second and third quarters of 2022 by October 31, either through the European or Greek energy exchange.

The three packages also face imminent sale deadlines. All transactions for electricity quantities offered to PPC’s rivals through the first package will need to be completed by the end of November, while transactions for the 2Q and 3Q packages must be done and dusted by December 31.

As for the quantities to be offered, PPC’s 1Q and 2Q lignite-fired packages must total 872 and 515 GWh, respectively. The power utility’s 3Q package will need to offer rivals 50 percent of the company’s lignite-fired power generated in the third quarter this year.

According to data provided by power grid operator IPTO, PPC’s lignite-fired power stations produced 1,081 GWh in July and August, while September’s output has been estimated at 370 GWh.

Given these figures, totaling 1,451 GWh, PPC will need to offer a lignite-fired package of 725 GWh for the third quarter next year, taking the total offering for 1Q, 2Q and 3Q in 2022 to just over 2,100 GWh in futures contracts that must be marketed through either of the two aforementioned exchanges by the end of this month.

 

PPC fulfils 4Q antitrust lignite obligation for supply to rivals

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Power utility PPC has fulfilled its fourth quarter antitrust obligations concerning the supply of lignite-fired electricity packages to third parties by securing futures contracts through the Greek and European energy exchanges for an electricity amount that exceeds the quantity stipulated in the government’s agreement with the European Commission, energypress sources have informed.

According to the agreement, which has resolved a long-running antitrust case concerning PPC’s monopoly in the lignite sector, the power utility, in the fourth quarter, needed to offer third parties a total electricity amount representing at least 50 percent of lignite-fired generation recorded for the equivalent period last year.

PPC’s lignite-fired power stations generated 1,785 GWh in the fourth quarter last year, meaning the amount the utility was expected to provide for the corresponding period this year was approximately 893 GWh.

Until yesterday, a day ahead of today’s deadline of its futures contracts, PPC had already secured deals for electricity packages representing a total of 978 GWh.

A first package of futures contracts was exclusively offered through the European energy exchange in Leipzig on September 17 at an average price of 153.75 euros per MWh, followed by three more packages, on September 23, 24 and yesterday.

PPC equity capital increase to reshape market, rivals on alert

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Power utility PPC’s plan, announced late last week, to proceed with a 750 million-euro equity capital increase, effectively a partial privatization that will result in a decrease of privatization fund TAIPED’s current stake in the company from 51 percent to 34 percent, promises to free the utility from restrictions imposed on state-controlled companies, boost its finances and enable the company to further consolidate its position as the dominant market player.

Rival players in the electricity and RES markets are closely following the developments, realizing the energy market map is headed for a major reshape if PPC’s equity capital increase is successfully completed.

PPC, as a transformed, independent corporation without state-company restrictions will be a much harder force to reckon with as it can be expected to charge ahead with an aggressive investment strategy in Greece and the Balkans, market players have commented.

Also, PPC, reshaping for a focus on green energy, will benefit from many advantages in the RES market, including the right to utilize its outgoing lignite areas for renewables, as well as priority grid dispatch rights given the strategic importance of its investments for the country, market officials have noted.

In response, rival players will now need to strengthen their capital standing and also consider strategic partnerships.

 

State subsidies for electricity bills, additional discounts concealed

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Power utility PPC and the country’s independent suppliers are set to include state electricity subsidies into electricity bills in ten days’ time, while, from October 1, they plan to follow up with additional discounts to ease the burden of increased energy costs for consumers.

Electricity suppliers are now finalizing adjustments to their information systems for the inclusion of these state subsidies, worth 9 euros per electricity bill and retroactively effective as of September 1.

However, all suppliers are keeping under wraps the details of their additional discounts to be offered.

Market sources expect suppliers to offer discounts with the intention of retaining customers and also capturing greater retail electricity market shares.

Meanwhile, the energy ministry is expected, any day now, to submit a draft bill to parliament for the establishment of an Energy Transition Fund, its purpose being to gather amounts from CO2 emission right auctions for distribution as electricity-bill subsidies.

As a first step, the Energy Transition Fund is expected to collect between 180 and 200 million euros to support households and businesses in the low-voltage category, all facing additional pressure as a result of the sharp increase in energy costs.

 

 

Independent suppliers react to gov’t handling of subsidy plan

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Independent electricity suppliers, especially the non-vertically integrated, have expressed strong disapproval of the manner in which the government presented a subsidy plan aiming to offer energy-cost relief to consumers, noting the presentation of the measures offered promotional support to state-controlled power utility PPC, the market’s dominant supplier.

The complaints, which focused on the subsidy plan’s presentation, not the actual measure, were expressed at a meeting yesterday between energy minister Kostas Skrekas and representatives of the country’s electricity suppliers.

During the government’s presentation of subsidies to be offered to counter rising electricity costs – wholesale and retail – pushed up by a combination of unfavorable factors in international markets, attention was also placed on an additional discount to be offered by PPC, to supplement the subsidies.

Independent suppliers perceived this latter detail as inappropriate market intervention by the government and an effort to give PPC a competitive edge over rival suppliers.

At the meeting, the energy minister called upon electricity suppliers to contribute to the energy-cost containment effort by utilizing the subsidy plan and offering discounts. Independent suppliers stressed they are currently operating with the slightest of profit margins.

The subsidies, to offer suppliers 30 euros per MWh, will be distributed by November, the minister informed.

Vertically integrated independent suppliers, which now have a clearer picture on PPC’s latest pricing policy, have already begun shaping strategies of their own, sources informed.

 

 

 

Independent players set to offer discounts, awaiting PPC clarity

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Independent suppliers are set to offer discounts and tariff reductions to consumers, their effort focusing on consumption levels ranging between 300 and 600 kWh, not covered by state subsidies, according to latest updates.

Independent suppliers are awaiting the outcome of a meeting today involving energy minister Kostas Skrekas, during which state-controlled power utility PPC’s discount strategy will be clarified, before they take specific decisions, including for the consumption category of up to 300 kWh, applying to the majority of households.

Besides an across-the-board discount of 30 percent for all consumers, including the category up to 300 kWh, PPC has also promised an additional discount of between 3 and 4 percent for the 301-600 kWh category.

It still remains unclear how much the price gap between PPC and independent consumers offering lower tariff prices could be narrowed by this move.

Independent suppliers know well that they will need to keep offering lower tariffs than PPC, the dominant player, to remain competitive.

The government plans to adopt an Energy Transition Fund to offer electricity subsidies to households and small and medium-sized enterprises, heating fuel subsidies, and a range of other initiatives as a tool to contain the surge in wholesale energy costs, prompted by a combination of factors in international markets.

 

PPC chooses Greek energy exchange for lignite-fired electricity packages

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Power utility PPC has chosen to offer lignite-fired electricity packages to third parties through the Greek energy exchange, not the European energy exchange, as it was also entitled to, sources have informed.

This main reason behind this decision, part of an imminent mechanism to be implemented as a remedy to a long-running antitrust case concerning PPC’s monopoly in the lignite sector, is that PPC sees the forthcoming mechanism as a good opportunity for the domestic futures market to gain momentum and, by extension, help improve the utility’s cash flow.

The mechanism’s launch, coming at a time of elevated wholesale electricity prices, will help PPC’s rivals offset the period’s price volatility, which is crucial support that will enable independent players to compete more effectively in the retail electricity market and offer stable prices to consumers, the European Commission’s Vice-President Margrethe Vestager, also Brussel’s Commissioner for Competition, noted in an official announcement.

A legislative revision for the mechanism offering lignite-fired electricity packages to third parties is likely to be submitted to parliament today by the energy ministry.

The plan is expected to begin offering lignite-fired electricity packages to third parties by the fourth quarter.

 

PPC attachment to gov’t power cost measures angers rivals

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The country’s independent electricity suppliers have deemed as necessary government support measures just announced to help combat rising wholesale, and by extension retail, electricity prices pushed up by a combination of unfavorable factors in international markets, but, even so, feel betrayed by the manner in which these measures were presented, perceived as an indirect boost for the state-run power utility PPC.

Officials at independent electricity supply companies, in comments to energypress, pointed out that PPC was incorporated into the government’s announcement for support measures, creating an impression that the dominant player’s pricing policy is a part of the government measures for lower-cost electricity. In other words, PPC was made to look as if it is providing social policy on behalf of the government, the independent supply company officials protested.

This ultimately sends out a message promising consumers protection and lower-cost electricity at PPC, marring the image of independent players as relentless, profit-seeking enterprises, the representatives complained.

Such initiatives threaten to confuse consumers and stifle market competition, the representatives added.

 

PPC local, European exchange option for lignite packages

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Power utility PPC will be entitled to choose whether to offer lignite-fired electricity packages to third parties through the Greek energy exchange or European energy exchange, according to details of an upcoming mechanism to be implemented as a remedy to a long-running antitrust case concerning PPC’s monopoly in the lignite sector.

PPC preference for the domestic energy exchange would keep open the option of physical delivery of these lignite electricity packages and ensure the company greater flexibility in its portfolio management. Opting for the European energy exchange would not permit physical delivery, making the deals purely financial transactions.

All that remains for the implementation of the mechanism, whose details have been agreed to by the government and European Commission, is a decision by the energy ministry on when to submit a related legislative revision to parliament, according to sources.

The legislative revision has been completed and the ministry is believed to be on standby for an appropriate date, the objective being to make a first round of lignite-fired electricity packages available to third parties by the fourth quarter this year.

All electricity suppliers will be entitled to purchase these packages, to have three-month durations.

As previously reported by energypress, the electricity quantity planned to be offered to suppliers through the mechanism in the fourth quarter this year will represent 50 percent of lignite-fired output in the equivalent period of 2020.

Then, for every quarter in 2022 and 2023, lignite-fired electricity packages to be offered to PPC’s rivals will represent 40 percent of lignite-based production in equivalent quarters of the respective previous years.

According to the country’s decarbonization plan, all existing lignite-fired power stations will cease operating by the end of 2023.

 

PPC retail market share remains high, 64.37% in August

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Power utility PPC’s retail electricity market share remains high, capturing 64.37 percent in August, down slightly from the previous month’s 65.25 percent, a latest report issued by the Greek energy exchange has shown.

The slight contraction does not represent a wider change in the overall market, but, instead, has been attributed to a market share gain by one supplier, Elpedison, a joint venture involving petroleum group ELPE (Hellenic Petroleum) and Italy’s Edison, following ELPE’s decision to stop receiving high-voltage electricity from PPC for supply from Elpedison. As a result, Elpedison’s retail electricity market share increased to 5.69 percent from 4.44 percent, placing the company in third place among the independent electricity suppliers.

PPC has essentially maintained recent market share gains in the retail market’s low and medium-voltage categories following power bill hikes made by independent suppliers as a result of their decisions to trigger wholesale cost-related clauses included in their electricity bills.

The entire field of independent electricity suppliers increased their overall share to 35.63 percent in August from 34.75 percent in July.

Protergia, a member of the Mytilineos group, led the pack of independent suppliers with a 7.67 percent market share in August, marginally below July’s 7.85 percent. Heron followed in second place with 6.4 percent in August from 6.77 percent in July and Elpedison was ranked third with aforementioned figures. NRG ranked fourth with 4.42 percent from 4.26 percent, while Watt and Volt was ranked fifth with an unchanged market share of 2.67 percent. Volterra was sixth with 2.05 percent from 2.07 percent, Fysiko Aerio Attikis seventh with 1.87 percent from 1.94 percent, Zenith eighth with 1.56 percent from 1.55 percent, Volton ninth with 1.46 percent from 1.43 percent and KEN tenth with 0.75 percent, unchanged from July to August.

Lignite-fired electricity packages to PPC rivals by fourth quarter

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The energy ministry plans to soon submit to Parliament a legislative revision for a mechanism offering third parties access to power utility PPC’s lignite-fired electricity production. This move will enable the implementation of an agreement on the matter between the government and the European Commission as a remedy to a long-running antitrust case concerning PPC’s monopoly in the lignite sector.

Officials are aiming for a first round of lignite-produced electricity packages to become available to third parties imminently, by the fourth quarter of this year.

All electricity suppliers will be entitled to purchase these packages, to have three-month durations.

Electricity quantities planned to be offered to suppliers through the mechanism in the fourth quarter this year will be calculated to represent 50 percent of lignite-fired output in the equivalent period of 2020. Then, for every quarter in 2022 and 2023, lignite-fired packages to be offered to PPC’s rivals will represent 40 percent of lignite-based production in equivalent quarters of the respective previous years.

According to the country’s decarbonization plan, all existing lignite-fired power stations will cease operating and no longer participate in the electricity market by the end of 2023.

A prospective PPC facility, Ptolemaida V, is planned to be launched as a lignite-fired power station early in 2023 before it is withdrawn in December, 2024 for a fuel conversion and reintroduction.

 

 

PPC to partially absorb power costs, Brussels action imminent

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Power utility PPC has decided to pursue a policy that will partially absorb electricity market price increases prompted by a volatile combination of unfavorable factors.

The utility plans to limit the impact of carbon emission costs and not pass on the entirety of their effect to consumers.

Competitors will either have to follow suit and subdue price hikes, which will hurt their financial results, or risk suffering market share losses.

The response of PPC’s rivals remains unclear at this stage. Marker players are now trying to estimate the duration of this unfavorable period of elevated prices.

Natural gas prices have surged, driven by Russia’s decision to slow down gas supply to Europe, presumably to pressure Brussels into brushing aside its reservations about a new Nord Stream pipeline from Russia to Germany. Also, CO2 emission costs have continued to rise.

CO2 emission cost futures contracts for December are stuck at levels of between 61 and 62 euros per ton, while analysts forecast levels of 65 euros per ton over the next few months, or possibly longer.

Given these factors, analysts believe it is a matter of time before the European Commission intervenes in an effort to deescalate market price levels by subduing CO2 emission costs and increasing its pressure on Moscow for a return to normal gas supply levels to Europe.

Otherwise, market conditions will become increasingly volatile with social repercussions, especially in countries experiencing extreme price increases that have been even greater than those in Greece.

In Bulgaria, for example, wholesale electricity prices have skyrocketed to more than 100 euros per MWh, well over the country’s usual levels of about 30 euros per MWh.