Mechanism for return of part of proceeds on intraday market

(Article by Athina Zoi, Associate published in the Energy & Natural Resources Newsletter of the ILO on April 24, 2023)

On 20 January 2023, a decision by the Greek Ministry of Environment and Energy(1) was published in the Government Gazette.(2) The decision extends the application for the temporary mechanism for the refund of part of the day-ahead market (DAM) revenue to the intraday market. Before then, the temporary mechanism applied only to the DAM, thus enabling some producers to partially avoid its application by declaring increased loads on the intraday market. To avoid this distortion, the same mechanism has been applied to the intraday market. The amounts collected through this mechanism are a source of revenue and enable the energy transition fund to continue providing subsidies for households and businesses.

In 2022, Law 4951/2022 amended article 12A of Law 4425/2016, which introduced the temporary mechanism to refund part of the DAM and which was applicable from 1 July 2022 to 1 June 2023. Law 4951/2022 authorised the ministry to decide on the application of this measure to the intraday market. Pursuant to this temporary mechanism, part of the revenues above the regulated revenue, to which participants from the DAM and intraday markets are entitled, is withheld by the clearing house and forwarded directly to the energy transition fund.

The amount remaining after withholding these revenues is the revenue of the DAM producer and intraday auctions producer. The Regulatory Authority for Energy publishes the amounts of the regulated revenue on its website monthly. The regulated revenue for February 2023 was:

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