Swift target model action needed, impact on PPC

The government and RAE, the Regulatory Authority for Energy, need to make swift decisions on matters concerning the energy market’s shape and functioning given a commitment, by the government, for punctual completion of all preparations leading to the commencement of the target model’s implementation within the first half of 2020.

RAE will need to soon stage public consultation procedures for matters detailing how markets will function amid the new environment.

If, for example, a day-ahead contract limit is to be imposed on power utility PPC, as has been debated recently, then this dominant market player will need to partially cover portfolio needs through the intraday market. This is seen as an indirect way of offering serious incentive for PPC’s diminished presence.

According to sources, a drastic reduction of the day-ahead contract limit is being considered. This would again raise PPC sustainability concerns as a result of market participation limits that would result for the power utility’s lignite units.