Energy market info

The Electricity Market in Greece

In Greece, today, the electricity market operates according to the mandatory pool system model.

Οn the basis of this model, all transactions of electricity & complementary products thereof carried out by participants, relate to the day-ahead market. In addition, all participants are required to participate in the pool system, whereas physical bilateral transactions between participants are not permitted.

The participants are the following:

Producers & Self-producers

Producers are holders of a production license for production plants registered in the register of plants. Self-producers are holders of a production license, who produce electricity for their own use and inject excess energy into the system.

Suppliers

Suppliers are holders of a supply license, purchasing energy directly through the Day-Ahead Scheduling*, in order to meet the requirements of their customers.

Importers

Importers are holders of a supply license or a marketing license, procuring quantities of energy from external producers or suppliers and inject these quantities into the Day-Ahead Scheduling.

Exporters

Exporters are holders of a supply or production or marketing license, procuring quantities of energy from the Day-Ahead Scheduling, in order to export them to other countries.

Customers

The selecting customers are electricity consumers, having the right to choose their Supplier.

In summary, the producers & importers sell the produced & their imported energy, respectively, in the wholesale market, while suppliers & exporters buy energy from the Day-Ahead Scheduling, which they resell in the retail market (customers) or export it, respectively.

*Day-Ahead Scheduling (short-term/day-ahead wholesale market): Includes the daily market of energy and ancillary services, from which results the Dispatch Schedule for the system plants.

Source: www.admie.gr/agora/genika/perigrafi

ELPEDISON, being a complete & full Vertically Integrated Producer & Energy Supplier, supplies the system with electricity produced in its two privately owned factories, while, simultaneously, trading energy in thousands of homes & businesses that comprise its customer base. Operating in the context of the current model of the Electricity Market, as analysed above, ELPEDISON supplies energy through the Day-Ahead Scheduling, in order to satisfy the needs of its customers. Energy cost and other related costs are subject to fluctuations. As a result, ELPEDISON readjusts the Supply Fee of its customers, in line with the fluctuations in the Supplier's Electricity Purchase Cost in the Interconnected System (hereinafter referred to as “Reference Size x”) and the Regulatory Authority for Energy (RAE) Decision no 409/2020, within the framework of compliance with the principle of transparent, accurate and understandable provision of information in ELPEDISON' s communication with Consumers (Article 17, par. 1b ESCC) and the promotion of its products in general (Annex 1, Articles 1 and 3 ESCC).

Elpedison' s tariff readjustment mechanism follows the basic RAE directive, in order to : a) be transparent, with a clearly defined method of activation and calculation, which shall be known to the Customer in advance, b) aim to avoid excessive volatility in the amount of consumption, c) offer, as far as possible, adequate options as regards risk management capability for price fluctuation over time, and d) be part of the Supply Contract. It is, therefore, determined by: i) The Market Clearing Price (MCP), i.e. the clearing price of the Day Ahead Market of the Greek Energy Exchange, which is a combination of the daily Sales and Purchase orders, ii) The Surcharges Accounts, iii) The Weighted Variable Cost of Thermal Conventional Plants (WVCTCP), iv) The cost associated with the Transitional Flexibility Compensation Mechanism or the Long-term Power Adequacy Compensation Mechanism or any other national long-term or short-term measure to ensure the availability of sufficient power supply or to address problems caused by the lack of flexible production capacity, v) Any additional wholesale costs that may result from the entry into operation of the Electricity Markets of Law 4425/2016 (Wholesale Market for Forward Market, Day-Ahead Market, Intraday Market and Balancing Market). The above indices consist Monthly Reference Index x.

Since Monthly Reference Index x remains within the fluctuation range L_i - L_u, the Supply Fee paid by the Customer will not change. In the event that the above-defined sum is above the aforementioned range, the Supply Fee will be increased, according to the following formula a* (x-L_i)+b. If the above-defined sum is below the aforementioned range, the Supply Fee will be reduced, according to the following formula a* (x-L_u)+b. The above coefficients are currently defined as follows: a=1,1999 , b=1€/MWh, Li=30 €/MWh, Lu=40€/MWh. The MCP is published on the website of the Energy Exchange (http://www.enexgroup.gr/agores/analysi-agoras/deltia-iep/), while the items’ costs (ii) up to (including) (v) are published on the Independent Power Transmission Operator website (http://www.admie.gr/deltia-agoras/mesostathmiki-timi-agoras-sto-diasyndedemeno-systima/). With respect to the fluctuation range of the values of size x, for which no activation of the readjustment mechanism (safety area) is envisaged, this shall be set to be reasonably compatible with the fluctuation in values of size x, based on historical data and reasonable admissions-assumptions, with the aim of minimising, as far as possible, the need to activate the readjustment mechanism. Any readjustment of the Supply Fee will appear as a credit or debit in the Consumption Clearance Account, issued after the consumption month, in which the readjustment was applied.