Public consultation procedures for a draft bill concerning the electricity market’s target model, a road map to guide Greece through a series of reforms needed as part of the EU’s wider effort to establish an integrated European energy market, are expected to be launched imminently, possibly today.
Ratification of the bill stands as an energy-sector bailout prior action. The next review by the country’s creditors begins today in Athens. Completion of the prior actions will pave the way for the disbursement of a subtranche of 2.8 billion euros.
As part of the European framework, the Greek draft bill will lead to the establishment of four markets, an Electricity Futures Market, a Day-After Market, an Intraday Market, and an Electricity Balancing Market.
According to officials at RAE, the Regulatory Authority for Energy, the Electricity Futures Market will concern trade conducted years in advance of actual delivery. This will offer traders the opportunity to handle risk management as a means of protecting consumers from real-time price fluctuations.
The Intraday Market will allow for trading during the day, just hours ahead of delivery, enabling traders to make corrective measures based on consumer demand and power-station output levels.
Trading in the Day-After Market will take place a day before actual delivery, offering traders the opportunity to cover remaining demand following orders placed in the Future Market.
Trading in the Electricity Balancing Market will primarily take place slightly prior to actual delivery. Its activity will be determined by real-time needs.