Greece: Competition increases in electricity supply business

, SEE Energy News

Independent electricity suppliers in the Greek retail market, whose market share currently stands at about 10 %, are eagerly awaiting the introduction of NOME-type auctions this fall in order to try to increase their market share.

This envisages the auction based mechanism in accordance with the mechanism implemented in France under the law NOME (Nouvelle Organisation du Marche de l’Electricite), which reformed the French energy market in late 2010. This mechanism regulated the third party access to nuclear power produced by state-owned EDF, which had dominant market position, in order to remove competition issues due to EFD’s exclusive access to low-cost electricity. In Greek case, NOME auctions will allow third party access to lowcost lignite and hydropower of the Public Power Corporation (PPC), which currently holds over 90 % of the Greek retail electricity market.

The first NOME auctions in September will offer the electricity volumes in the amount of 8 % of the total used in Greek electricity network in 2015 to the auction participants. Starting prices are expected to begin significantly below the current System Marginal Price (SMP) levels, which will enable the independent suppliers to efficiently battle with the PPC 15 % discount for customers with punctual electricity bill payment records, announced for 1 July.

According to the latest data, independent electricity suppliers held 9.46 % share in the Greek retail electricity market in May, which is an increase from 8.62 % market share in April, transmits