By S. Zisimou
Continued liberalization of Greece’s energy sector, as per memorandum provisions, and especially the natural gas market and the future framework for NOME electricity auctions, dominated negotiations between creditors and the relevant minister through Monday evening.
The Greek side was led by Giorgos Stathakis, who was switched from the economy portfolio to energy and environment in a recent Cabinet reshuffle, taking over from Panos Skourletis, who was viewed as one of the more outspoken ideological opponents of free market reforms in the current leftist government.
Mandatory NOME auctions appeared as one of the still unresolved issues, according to a ministry source.
Creditors have pressed for the framework, known by its French-language acronym, in order to reduce the price of electricity for retail users and industries; given that up until recently the state-run utility (PPC) enjoyed a near monopoly in the sector and still retains a dominant share of the market. Creditors reportedly demanded a recalculation of opening bid prices, downward, based on new emission values and an increase in the tendered quantities for 2017.
Sources close to ministry also avoided commenting on the PPC’s recent recourse to the Council of State (CoS) to block the NOME auctions.
Creditors are also pushing for the withdrawal of state-owned DEPA, the natural gas supplier, from the retail sector, and especially in the greater Athens and Thessaly-Thessaloniki markets.
Meanwhile, an updated privatization master plan for Greece’s state-dominated energy sector again stipulates the sell-off of 17 percent of PPC, 65 percent of DE.PA and 35 percent of the Hellenic Petroleum (EL.PE) petrochemical group, as well as privatizations facing obstacles, such as the natural gas grid operator, DES.FA.
