First auction of the PPC’s lignite and hydro-electric power production ended successfully

The first auction of the Public Power Corporation’s lignite and hydro-electric power production offering 4,029,600 MWh to suppliers was successfully completed on Tuesday, with bids surpassing demand and purchase prices rising from 37.37 (minimum set price) to 37.5 euros per MWh.

The offered quantity was 460 MWh per hour for one year (8,760 hours). Bids submitted totaled 12 suppliers for 473 MWh per hour, with 11 bids accepted covering 460 MWh per hour.

The proceeds of the auction – to be collected by PPC – totaled 150.5 million euros. These auctions were designed and are implemented with the aim to speed up the deregulation of the electricity power market and to limit PPC’s market share, replacing a plan envisaging the sale of PPC’s electricity production units. Under the plan, PPC’s market share will fall below 50 pct by 2020, with intermediate goals. Energy officials said the low prices set during the auction – as compared with wholesale market prices – allow suppliers to offer competitive electricity rates for households and enterprises, or to ensure lower prices for the supply of industrial units.