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National Report 2020 Regulation and performance of the electricity market and the natural gas market in Greece, in 2019. Regulatory Authority for Energy (RAE) Athens, June 2020. REGULATORY AUTHORITY FOR ENERGY 132, Piraeus str., 118 54 Athens, Greece Tel.: +302103727400, Fax: +302103255460 E-mail : [email protected], Website: www.rae.gr The Board of The Regulatory Authority for Energy (RAE): President Nickolaos G. Boulaxis (since 23-6-2015) A’ Vice President Sotirios Manolkidis (since 23-6-2015) B’ Vice President Michaella Latta (since 18-2-2016) Member Nektaria Karakatsani (since 22-6-2015) Member Ioannis Anagnostopoulos (since 19-2-2016) Member Apostolos Gotsias (since 19-2-2016) Member Theodoros Zervos (since 19-2-2016) 1. Foreword _________________________________________________________ 6 2. Main developments in the electricity and gas markets ________________ 7 2.1 Electricity __________________________________________________________ 7 2.2 RES _______________________________________________________________ 9 2.3 Natural Gas _______________________________________________________ 10 2.4 Consumer Protection ______________________________________________ 13 2.5 Other important actions of RAE _____________________________________ 14 3. Regulation and Performance of the Electricity Market _______________ 16 3.1 Network Regulation __________________________________________________ 16 3.1.1. Unbundling_____________________________________________________________ 16 3.1.1.1. Certified Transmission System Operator - ADMIE S.A. ___________________ 16 3.1.1.2. Distribution System Operator - DEDDIE S.A. ____________________________ 16 3.1.1.3. Accounting unbundling _______________________________________________ 16 3.1.2. Technical functioning and network development ____________________________ 17 3.1.3. Security and reliability standards, quality of service and supply _______________ 19 3.1.4. Network Tariffs for connection and access _________________________________ 20 3.1.5. Transmission Network operation __________________________________________ 20 3.1.6. Distribution Network operation ____________________________________________ 23 3.1.7. Transmission network connection tariffs ___________________________________ 25 3.1.8. Distribution network connection tariffs _____________________________________ 26 3.1.9. Cross-border issues _____________________________________________________ 26 3.1.9.1 Interconnection auction rules and access rights __________________________ 31 3.1.9.2 Implementation of European Network Codes and Guidelines ______________ 32 3.1.9.3 Monitoring of electricity PCIs __________________________________________ 36 3.2 Promoting Competition _______________________________________________ 37 3.2.1. Wholesale market _______________________________________________________ 37 3.2.1.1. Description of the wholesale market ____________________________________ 37 3.2.1.2. Installed Capacity and Generation______________________________________ 39 3.2.1.3. Auxiliary and Generation capacity reserves mechanisms (market) _________ 42 3.2.1.4. Market Size _________________________________________________________ 43 3.2.1.5. Monitoring market shares _____________________________________________ 45 3.2.1.6. Price Monitoring _____________________________________________________ 48 3.2.1.7. Monitoring of transparency ____________________________________________ 52 3.2.1.8. REMIT (EU Regulation 1227/2011) _____________________________________ 53 3.2.1.9. Monitoring the effectiveness of market opening and competition ___________ 54 3.2.1.10. NOME Auctions (Nouvelle Organisation du Marché de l’Electricité)_________ 55 3.2.2. Retail market ___________________________________________________________ 58 3.2.2.1. Description of the retail market _________________________________________ 58 3 3.2.2.2. Competition and market shares ________________________________________ 61 3.2.2.3. Price Monitoring _____________________________________________________ 64 3.3 Security of supply ____________________________________________________ 66 3.3.1. Monitoring the balance of supply and demand – interconnected system _______ 67 3.3.2. Monitoring investment in generation capacities _____________________________ 69 3.3.3. Measures to cover peak demand or shortfalls of suppliers ___________________ 70 3.4. The Non-Interconnected islands system (NIIs) _______________________ 73 3.4.1. Electricity Supply Structure_______________________________________________ 74 3.4.2. Electricity Generation Capacity and Electricity Demand ______________________ 78 3.4.3. Other regulatory developments in NIIs _____________________________________ 81 3.4.4. Security of supply in Crete _______________________________________________ 83 3.5. RES ______________________________________________________________ 84 3.5.1. RES Installed capacity and generation ____________________________________ 84 3.5.2. RES and the electricity Market ___________________________________________ 86 3.5.3. RES projects’ licensing __________________________________________________ 87 3.5.4. RES Financial Support Scheme __________________________________________ 88 3.5.5. RES Financing _________________________________________________________ 93 3.5.6. New RES Legislation and Regulatory Development _________________________ 96 3.5.7. Other developments in the RES sector ____________________________________ 98 3.6. Consumer Protection ______________________________________________ 99 3.6.1. Compliance with Annex 1 of Directive 2009/72/EC __________________________ 99 3.6.2. Ensuring access to consumption data ____________________________________ 102 3.6.3. Consumer empowerment - The Price Comparison Tool (PCT) ______________ 102 3.6.4. Quality of DSO Services ________________________________________________ 103 3.6.5. Vulnerable customers and Energy poverty ________________________________ 105 3.6.6. Handling of consumer complaints ________________________________________ 106 3.6.7. Dispute Settlement _____________________________________________________ 110 3.6.8. Regulatory Decisions and Opinions of RAE _______________________________ 110 4. Regulation and Performance of the Natural Gas Market ____________ 115 4.1. Network Regulation _______________________________________________ 115 4.1.1 Unbundling____________________________________________________________ 115 4.1.2 Technical functioning ___________________________________________________ 117 4.1.3 Network and LNG Tariffs for Connection and Access _______________________ 125 4.1.4 Cross-border issues ______________________________________________________ 128 4.2. Promoting Competition ___________________________________________ 134 4.2.1. Wholesale Markets_____________________________________________________ 134 4.2.2. Monitoring the level of transparency ______________________________________ 137 4.2.3. Description of the Gas retail market ______________________________________ 138 4.3. Consumer Protection ________________________________________________ 143 4.3.1. Compliance with Annex 1 of EU Directive 2009/73/EC _____________________ 143 4.3.2. Definition of Vulnerable Customers ______________________________________ 143 4.4. Other regulatory developments ____________________________________ 144 4.4.1. The regulatory framework for Remote Distribution Networks ________________ 144 4 4.4.2. Methodology for setting typical consumption curves ________________________ 145 4.4.3. Metering Code for the Distribution Networks ______________________________ 145 4.5. Security of Supply ________________________________________________ 146 4.5.1. Monitoring Balance of Supply and Demand _______________________________ 150 4.5.1.1. Current demand ____________________________________________________ 150 4.5.1.2. Projected demand ___________________________________________________ 152 5. International cooperation_________________________________________ 153 Lists _____________________________________________________________ 157 List of figures ______________________________________________________ 157 List of tables _______________________________________________________ 158 5 1. Foreword Dear Readers, In 2019, in view of its institutional role and its statutory competences, RAE remained firmly committed to its core values and actively pursued its mission towards the creation of a secure, competitive and sustainable energy market at national, regional and EU level. Throughout the year, RAE paid particular attention to the timely execution of the operators’ network plans and the development of strategic infrastructures and interconnections, the establishment of the new electricity market design as per the EU Target Model and the market coupling process, the successful implementation of the RES auctions, the effective monitoring of the energy markets and the empowerment of the final consumers. Ahead of the transformative energy transition process in the EU and worldwide, by implementing these reforms, Greece ensures its adequate participation in the integrated European energy market in a gradual, organized and efficient way, while safeguarding the country’s security of energy supply, and securing the lowest prices for both households and businesses that is a key driver of growth for the national economy. In this framework, and in compliance with the responsibilities assigned to it by the Greek legislation (in particular Energy Law 4001/2011), RAE proceeded in 2019 with the adoption of a set of key regulatory decisions, opinions, and recommendations,
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