Greece: PPC’s lignite packages second market test

, SEE Energy News

In order to measure the level of interest of independent suppliers in power utility PPC’s lignite-generated electricity packages, has launched a second market test. Suppliers have received a questionnaire as part of the procedure, staged following a subdued response to a first test in which participants more or less wrote off PPC lignite-generated electricity packages as a measure that could intensify competition in the electricity market. Participants have until 14 July to forward their responses.

Some revisions have been introduced to the lignite-based electricity package solution now being tested. The PPC packages would be offered through the energy exchange futures market, not through bilateral contracts with independent suppliers, as was originally proposed. Another important revision concerns the pricing formula for these packages. It will now be determined through direct negotiation between the buyer and PPC through the futures market, without a market prices floor. Under the previous model, the price of the packages was based on the wholesale price minus a discount.

According to sources, the mechanism offering lignite electricity packages will remain valid until December 2024, or it will expire as soon as the country’s final lignite-fired power station has been withdrawn, if this precedes the aforementioned date.