Role & Initiatives

DESCRIPTION OF THE MARKET

After a long period of researches, preparations, studies and organization steps not only in European level but in national level as well, a free market is being created, gradually, related to the field of electric energy. This will allow customers to choose their provider and new producers to compete P.P.C., being nowadays the unique producer. It is a kind of revolution in the field of electric energy that traditionally and in international level was dominated by monopolies and absolute operation. These changes are totally new for our country but internationally speaking as well, the experience deriving from the liberation of the electricity market is not enough.

In Greece the Law 2773/99 constitutes the basic legal background. Also two companies the Regulatory Authority of Energy (RAE) as well as HTSO S.A. (or the so-called “Hellenic Transmission System Operator” or even simpler ”Operator”) have been created. HTSO is the company that handles the Hellenic Transmission System of Electric Energy. These two companies are the basic factors of the free electricity market.

It is important the aims of the several Greek Electricity Market factors, to be clarified since the last 50 years P.P.C. is the only familiar authority and indeed very often P.P.C. is confused with HTSO S.A. and HTSO S.A. with RAE.

  • RAE is an independent authority that manages, suggests and promotes the existence of equal opportunities and fair competition and gives the operation license to producers, providers and all the rest, related to the market.
  • HTSO S.A. is a company with a double role
    • The first role is the one being played by P.P.C. in respect to the Transmission System: it always looks after for the existence of a balance between production and consumption and the electric energy to be provided in a reliable, safe and in terms of quality acceptable way.
    • The second role of HTSO is to settle the market, in other words to act like an energy stock market that arranges on a daily basis who owns to whom. HTSO does not provide electric energy and whatever basic exchanging relations exist they are bilateral ones between producers/providers and their customers.
  • P.P.C. is one among a number of companies that will be created in the field of electric energy. A stock market pictorial description of the roles could be, P.P.C. is an admitted company, HTSO is the Stock Market and RAE is the Capital Market Committee.

HTSO is a S.A. company the 51% of which belonging to the Public Sector, and the 49% belonging to the electricity production companies existing in Greece. This means that P.P.C. today owns this 49% but its share will be decreasing giving the opportunity to whatever new producers may appear. The company today is composed of 160 employees approximately (that are going to become double in number during its final growth) and its annual budget estimated to be at the rate of about € 15 millions.

The Operator is responsible for a number of procedures:

  • At the beginning the produced, transmitted and consumed energy has to be calculated in a reliable, accurate and indisputable way by the market notables. First procedure of the Operator’s responsibility is the existence of a metering system being officially certified.
  • Second procedure that consists the heart of the system is the Dispatching Center. It is well known that electric energy is an idiomorphic commercial good that can not be stored and thus at any time the production will have to be analogous to the consumption. So it is the Dispatching Center that has to settle the schedules of which station is going to produce in what quantity. The Dispatching Center dispatches each station in such a way so that the quality characteristics (currency, tension) are maintained, the operational cost is the minimum one and the bilateral commercial relations between consumer-providers are respected.
  • In order to maintain the reliability of the system and the quality characteristics of the delivered electric energy to the consumer, the Operator needs specific, the so called auxiliary services, capability of special regulations etc that are going to be obtained through transparent procedures by market producers, in the first stage the only provider is P.P.C.
  • The settlement, in other words who owns to whom, is a procedure related to the free purchase of electric energy. As far as the Greek market goes, basically a system of bilateral commercial relations between consumer and provider-producer has been chosen. The Operator does not interfere in these bilateral agreements that are under the absolute authority of the contracting parties. But during the daily operation and for several reasons a provider’s production is not completely analogous to a client’s consumption. This deviation is been calculated and invoiced by the Operator who dictates to any incomprehensive producer the amount he is going to pay through the Operator to an other active producer. This procedure is called clearing of the market and is been arranged in such a way that the economic operation of the System to be encouraged.
  • An other basic obligation of the Operator is the maintenance of the system and its further development in order to accept new producers and new customers. This maintenance will be implemented by P.P.C. ( as the owner of the grid) while the expansions will be charged according to very specific rules being included in the norms of interaction governing the market. P.P.C. is compensated.
  • Finally, one of Operator’s duties is the support and further development of the market and the updating of the interested parties. The Operator makes short, mid and long term forecasts for the needs of the system, publishes estimations, proposes improvements to the market rules and to the operation of the system and obtains a high degree transparency of the market, of System Operation including the operation of the company. Basically, all actions taken by the Operator are done via Internet and they can be obtained through Internet.

HTSO aim is to achieve a reliable and impartial operation of the Hellenic Transmission System Operation as well as of the market that depends on it so that the new producers, the selected customers and all consumers to have the traditional reliability of the system that is being serving Greece the last 50 years, characterized by the transparency and impartiality that the rules of the new market demand.