The government’s agreement with lenders on pending energy sector issues, reached through fourth-review bailout negotiations, includes commitments for a continuation in the effort to open up the electricity and natural gas markets; completion of the main power utility PPC lignite units sale; the privatization of DEPA (public gas corporation); implementation of the new target model and launch of the energy exchange.
PPC’s sale of lignite units, representing 40 percent of the utility’s overall lignite capacity, will need to be completed by the end of 2018, according to the agreement.
NOME auctions, providing independent suppliers with access to PPC’s lower-cost lignite and hydropower sources, will continue based on revised terms. Penalties for PPC’s failure to reach retail electricity market share contraction targets will be reduced by 50 percent in June if the PPC lignite units sale is launched according to plan.
In 2019, electricity amounts to be offered to traders through the NOME auctions will be reduced to 13 percent of overall consumption in 2018.
Once the target model, envisioning market coupling, or harmonization of EU wholesale markets, is implemented, the NOME auctions will be incorporated into the new market model.
Further assessments of the energy market, effectiveness of lignite measures and NOME auctions will be made in September. Alternative measures intended to maximize consumer benefits may be required.
The supplier surcharge supporting the RES special account will be reduced by 50 percent in January, 2019 and a further 30 percent in January, 2020, according to the agreement.
At least 65 percent of CO2 emmission right revenues will be injected into the RES special account, it was agreed. The RES special account will need to maintain a 70 million-euro surplus as a safety net. In the case of a RES special account deficit, the RES-supporting ETMEAR surcharge paid by consumers will be increased, according to the agreement.
Natural gas auctions held by DEPA, the gas utility, are planned to continue. This year, DEPA is expected to auction off an amount equivalent to 17 percent of the company’s annual sales figure.
New RES auctions offering project installation capacities are scheduled for July, according to the agreement.
It also includes specific target dates leading to the launch of the energy exchange and the implementation of the target model. The model will need to be fully operational by April, 2019 and followed by the market coupling of the Greek-Italian and Greek-Bulgarian markets.