Wholesale market reforms demanded for CAT approval

The European Commission’s Directorate-General for Competition wants a series of reforms in Greece’s wholesale electricity market to be implemented as a condition before endorsing the new CAT mechanism plan.

The most striking of these demands concerns the immediate increase of the upper limit imposed on the current System Marginal Price (SMP), currently at 150 euros per MWh. The Directorate-General for Competition wants this upper limit to be aligned with that of Italy’s.

Other measures include increasing the upper limit for supplementary services, currently at 10 euros per MWh, and abolishing all additional charges for electricity exports.

As has been previously reported, the EU executive body has rejected Greece’s temporary CAT plan, intended to retroactively compensate producers for output in 2015.

According to the Directorate-General for Competition, the wholesale market measures now being demanded were originally proposed by Greek officials and need to be adopted. It remains unclear whether they were forwarded by the current coalition or initiated by the pre-Syriza administration, whose tenure was ended by last January’s snap elections.