PPC takes legal action against NOME auctions

Public Power Corporation (PPC) recoursed to the Council of State against the starting price of so called NOME auctions of lignite and hydro generation power, saying that the average price of the auctioned energy was clearly below its generation cost and close to the starting price and as a result the company suffers a loss.

In NOME auctions energy producers-competitors of PPC are participating to gain access to cheaper electricity production sources and to boost competition in the domestic electricity energy market. The first auction was held with a starting price of 37.37 euros/MWh and the highest bid was 37.50 euros/MWh and was successful.

GENOP -PPC workers’ trade union- in an announcement said it was supporting PPC’s legal reaction with the expectation and aim to avert any worse developments that could lead the company to a collapse. GENOP said a recourse to the Council of State “is and must be towards a better operation of an auction process.