Energy News – 75th Issue-Temporary mechanism for return of parts of the proceeds on the intraday energy market
1. Editor’s note
2. Temporary mechanism for return of parts of the proceeds on the intraday energy market
On 20 January 2023, Decision of the Greek Ministry of Environment and Energy ΥΠΕΝ/ΔΗΕ/138775/4768 extending the application of the Temporary mechanism for the refund of part of the Day-Ahead Market (DAM) revenue to the Intraday Market, was published in the Government Gazette B’ 275/20.1.2023. Until now the Temporary mechanism applied only to the DAM thus enabling some producers to partly avoid its application by declaring increased loads on the Intraday Market. A way to avoid the distortion was to apply the same mechanism with the same price
limitations to the Intraday market as well. The amounts collected through this mechanism are a source of revenue for the Energy Transition Fund to continue providing electricity subsidies for households and businesses.
First, in 2022, article 12A of Law 4425/2016, which introduced the Temporary mechanism for refunding of Part of the DAM, applicable from July 1, 2022, to June 1, 2023, was amended by Law 4951/2022 authorizing the Ministry to decide on the application of the same measure to the Intraday Market as well. Pursuant to this Temporary mechanism, part of the revenues above the regulated revenue to which the Participants are entitled from the DAM and Intraday Markets is withheld by the clearing house and forwarded directly to the Energy Transition Fund. The amount remaining after the withholding of the aforementioned revenues is the revenue of the DAM producer and the revenue of the Intraday auctions producer. RAE publishes on its website on a monthly basis the amounts of the regulated revenue. For example, the regulated revenue for February 2023 was €85/MWh for RES Portfolios, €112/MWh for big hydro, €291.96/ MWh for open cycle gas turbine, €210.44/MWh for Combine Cycle Gas Turbine and €205.61/MWh for Lignite. For each transaction of electricity sale on the above two Energy Exchange markets (including electricity from RES):
a. If the transaction price is less than or equal to the administratively determined unit price there will be no withholding.
b. If the transaction price is above the administratively determined unit price the amount equal to the amount of energy sold multiplied with the administratively determined price per unit is paid to the producers in the clearing procedure, while anything above received from the electricity sale is paid to the Energy Transition Fund.
3. Sharing the extension of the electricity transmission system costs among its users
4. Amendments to the priorities for the granting of access to the grid
5. Public consultation on the reform of the European Union’s electricity market design
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