Alternative suppliers worry over abolition of electricity auctions

Now that it appears the power auctions (NOME) will be abolished, private electricity providers are waiting to hear what the government plans to introduce instead, amid uncertainty in the market.

Their demands have already been forwarded to the Energy Ministry, while certain suppliers are examining legal action they could take in case no transitional model is found to mitigate the impact of the abolition of the power auctions, as this is a shift the market could not have foreseen.

Federico Regola, chief executive at alternative supplier ZeniTH (formerly known as EPA Thessalonikis-Thessalias), stated: “We trust that the ministry will find the fairest solution in the context of healthy competition. We are open to meeting with the authorities to convey our own experience for the proper operation of the market to the benefit of consumers. We are monitoring developments and awaiting announcements, while certainly reserving the right to take legal action, as are all companies, as this issue is not only worrying ZeniTH but the entire sector.”

The ministry, however, is not backing down on abolishing the power auctions, a measure associated with saving Public Power Corporation. Aware of the problem that this has created, it is examining a transitional model to bridge the gap until the operation of the target model.

As Deputy Energy Minister Gerasimos Thomas told an energy conference in Thessaloniki last week, the ministry is considering the application of time-based transactions. “We shall see how the transitional period goes. For the transitional stage, it is important to have an organized market of time transactions operating among producers, suppliers and other market participants. The existing legal framework provides for these procedures that will have a complementary role until the target model is set in operation,” he stated.