The Ministry of Environment, Energy and Climate Change (YPEKA) presented a new energy bill, which incorporates into the Greek legal order the 3d Energy Package, as regards Directives 2009/72/EC and 2009/73/EC, concerning rules on the market of Electricity and Natural Gas respectively. The Greek energy bill regulates issues regarding the liberalization of electricity market, which fall within the framework of the privatisations’ program undertaken under the Memorandum of understanding on specific policy conditionality. In that respect, the new bill allows independent investors to participate, up to 49%, to the electricity transmission network owned by the Public Power Coorporation S.A.
Specifically, the bill provides for the establishment of a 100% subsidiary company (named ADESMIE S.A) of the Public Power Coorporation S.A (PPC), to which PPC delegates the Transmission Division and the staff of the respective division. The model chosen for the new body is that of the Independent Transmission Operator (ITO). Moreover, the bill provides the option of transferring minority shares from ADESMIE to third parties, who should not engage in energy activities, in order to raise assets necessary to operate, maintain or develop the transmission system. Furthermore, the daily operation of the electricity market is assigned to a new company, named L.AG.I.E. S.A. (ex DESMIE S.A.), with initially 100% state-owned share and the prospective of transferring shares to third parties in the future. Finally, it is created a 100% subsidiary of PPC (named ADDIE S.A.), assigned with the activities of the Distribution Division.
So far, the bill, as it was presented to the public by the Ministry, does not specify the terms and conditions as regards the participation of third parties to the transmission system operated by ADESMIE. According to the respective provision of Directive 2009/72/EC, concerning the network development and powers to make investment decisions (Art.22), ADESMIE is obliged to submit to the regulatory authority (RAE) a ten-year network development in order to guarantee the adequacy of the system and the security of supply. Consequently, the Directive provides RAE with the power to take actions in circumstances where ADESMIE does not execute an investment. Specifically, RAE is required to force ADESMIE to execute the investments in question, oblige the transmission system operator to accept a capital increase to finance the necessary investments and allow independent investors to participate in the capital, or organise a tender procedure open to any investors for the investment in question. In the latter case, RAE may oblige the transmission system operator to agree to one or more of the following: (a) financing by any third party; (b) construction by any third party; (c) building the new assets concerned itself; (d) operating the new asset concerned itself. Therefore, the development of the transmission system is operated by RAE and ADESMIE. As regards the participation of independent investors to the capital of ADESMIE, the Directive regulates, pursuant to article 18, the power of ADESMIE to raise money on the capital market, in particular through borrowing and capital increase.
By the end of the month the bill will be submitted to the Parliament for voting and is expected to clarify how the respective provisions of the Directive 2009/72/EC will be transferred into national law and how they will be applied within the required time limits, in order Greece to fully achieve the goal of the Directive, namely the liberalization of the electricity market.
Edited by Tina Koutsopoulou
Sources: Press release YPEKA; Directive 2009/72/EC; Newspapers: Hmerisia, Isotimia, Kathimerini; Websites: www.energypress.gr, www.capital.gr