Safety measures vital for target model markets, producers stress

The introduction of energy exchange spot markets, in September, when they are scheduled to begin operating, without the adoption of safety measures facilitating competition and preventing manipulative methods, primarily by power utility PPC, the market’s dominant player, could lead to undesired results and strengthen the market’s monopolistic character, independent electricity producer representatives have told energypress.

The officials expressed their concerns as a monitoring mechanism being prepared by RAE, the Regulatory Authority for Energy, with consultancy support, may not be fully functional at the time of the target model’s launch.

The monitoring mechanism is considered the basic tool in the effort to ensure healthy competition in electricity markets as it will be used to collect data from power grid operator IPTO and the Greek energy exchange and identify any manipulative practices in the wholesale market.

Interventions needed, according to independent electricity producers, include restricting PPC’s ability to establish two-way agreements; offering support to the new target model market with a supplementary market offering capacity availability; and protecting markets, overall, through powerful, consistent and independent monitoring mechanisms.

 

Monitoring mechanism ‘needed prior to target model markets’

A monitoring mechanism enabling RAE, the Regulatory Authority for Energy, to protect target model electricity markets from abusive, non-competitive behavior by electricity producers, must be ready before target model markets are launched, the European Commission has stressed in its latest post-bailout report on the Greek economy.

Legislation ratified by the Greek government late in 2019 strengthened RAE’s powers by giving it authority to raid company offices and impose fines for abusive behavior.

The crucial role of the monitoring mechanism has also been pointed out in Greece’s revised National Energy and Climate Plan.

The monitoring mechanism, to collect data from power grid operator IPTO and the Greek stock exchange, will be able to identify wholesale trade irregularities.

The European Commission report projects Greece’s target model will be launched in the third quarter of this year, beyond a June 30 target date. The pandemic has negatively impacted the delivery date of a trading platform by General Electric.

Earlier this week, market officials contended that a launch of spot markets at the Greek energy exchange is not possible until September, rejecting IPTO claims of an earlier target model start within August.