ECONOMY

Deal foresees energy market competition

deal-foresees-energy-market-competition

A part of the new memorandum with Greece’s creditors comprises the liberalization of the retail electricity market by January 1, 2020, and the natural gas market by 2018.

The aim of the measures is to allow new players to enter the market, thereby offering a wider choice for energy consumers.

Regarding the natural gas market, by May 30, 2016, the Public Gas Corporation (DEPA) and the gas distribution companies (EPA) of Attica, Thessaloniki and Thessaly are required to submit plans for unbundling their activities for approval to the Energy Regulatory Authority to allow for a decision within three months from the submission date.

The process for the liberalization of the electricity market will require the Public Power Corporation (PPC) to sell quantities of the lignite and hydro energy produced in its factories to private competitors via auction. A suitable alternative providing the same outcome must be agreed by the Greek authorities if this approach is not possible.

By 2020, no one power company must produce or import – directly or indirectly – more than 50 percent of the total electricity sold in Greece, according to the terms of the country’s new bailout agreement.