Regulatory Framework governing

Regulatory Framework governing the management of the HEDN

The operation of distribution network management is a natural monopoly in the area where it is performed as there is no competition. For this reason, these operations are supervised and regulated by the independent Regulatory Authority for Energy (RAE), now Regulatory Authority for Waste, Energy and Water (RAAEY). Regulating is achieved by approving the Allowed Revenue from such operation, while objectives are set for the improvement of both customer service and the efficiency of the company’s operation and the optimization of the quality of the delivered energy, providing incentives for their achievement.

In addition to Law 4001/2011, which makes provisions for the operation, development, maintenance and access of users to the HEDN, the main Regulatory text which defines the above is the “Hellenic Electricity Distribution Network Code”, which was approved with RAE decision 395/2016 (GG 78/Β’/20-01-2017). The content of the Code regulates the rights and obligations of the Hellenic Electricity Distribution Network Operator, as well as the rights and obligations of Network Users and Providers in addition to issues related to the development, operation, Network access, the services provided by the Network Operator and the financial reward thereof.

HEDNO S.A. is responsible for the development, operation and maintenance of HEDN under economically advantageous terms to ensure its reliable, efficient and safe operation, taking due care of the environment and energy performance, as well as securing the cost-effective, transparent, direct and non-discriminatory access of Users (Consumers, Providers) and Suppliers to HEDN for carrying out their business operations, in accordance with the Management License of HEDN (RAE Decision 83/2014) and the Ownership License of HEDN (RAE Decision 82/2014) as granted on the basis of the provisions of Laws 4001/2011 and 4819/2021 as in force and in accordance with HEDN’s Management Code.

The details of the implementation of the provisions of the above Code, as well as the necessary procedures and calculation methodologies required for its implementation, are set out in the Application Manuals which are an integral part of the Code. The published manuals that have been approved by RAE and are in force are:

• “Power Theft Manual” (RAE Decision 236/2017 – GG 1871/Β’/30-05-2017),
• “Metering Devices and Metering Manual” (RAE Decision 30/2020 – GG 370/Β’/7-2-2020),
• “Network Operation Manual” (RAE Decision 779/2020 – GG 1891/Β’/18-5-2020),
• “Metering Devices Representation and Regular Clearing Manual” (RAE Decision 1443/2020 – GG 4737/Β’/26-10-2020),
• “Network Usage Rates Manual” (RAE Decision ΡΑΕ 707Α/2021 – GG 5427/Β’/22-11-2021).

At the same time, the regulatory framework is also governed by other important regulatory texts issued by the Regulatory Authority for Energy by means of relevant Decisions:

• The “Terms and limitations of the Exclusive Ownership License of the Electricity Distribution Network (Ownership License) of PPC S.A.” which was given with Decision 82/2014 to PPC SA and is granted to HEDNO SA as per Law 4819/2021 (GG 129/Α’/23-07-2021, as in force).
• The ”The Required Income Calculation Methodology of the Hellenic Electricity Distribution Network Operator”, which is specified according to Decision 1431/2020 (GG 4740/Β’/23-10-2020), for a Regulatory Distribution Period of 3-5 years (RDP), with the first RDP having a duration of four years (2021-2024).
• The “The Incentive Mechanism Regulation for the limitation of losses at HEDN – Specifying the details regarding the implementation of the Network Management Code (NMC) for calculating network loss factors”, which was established with Decision 1432/2020 (GG 4741/Β΄/26-10-2020).
• The “Calculation Methodology for Network Usage Rates for the Consumers of the Interconnected HEDN Network”, which was established with Decision 534/2021 (GG 3292/Β’/26-07-2021).