Greek state-controlled Public Power Corporation (PPC) has chosen to offer lignite-fired electricity packages to independent suppliers through the Greek energy exchange (HEnEX) and not the European energy exchange (EEX).
This main reason for this decision is that PPC sees the forthcoming mechanism as a good opportunity for the domestic futures market to gain momentum and help improve its cash flow. The first lignite-fired electricity packages are expected to offered through HEnEx in the fourth quarter of the year.
Last week, The European Commission (EC) has approved the measures allowing independent suppliers in the Greek market access to electricity produced by PPC, after an investigation found that the power utility’s exclusive access to lignite-fired generation gave it an unfair advantage.
EC said PPC will sell quarterly forward electricity products on the European Energy Exchange (EEX) and Hellenic Energy Exchange (HEnEx), allowing rivals to source wholesale electricity on the forward market and hedge against price volatility. PPC will obtain a net seller position on EEX and/or HEnEx, ensuring that sufficient volumes of wholesale electricity are made available to competitors.
The proposed remedies will lapse when existing lignite-fired power plants stop commercial operation, which is currently expected by 2023 or at the latest by the end of 2024.
