News brief of 12.12.2016

News from the Greek energy market:

1. RAE has submitted to public consultation a draft decision on approval of Grid Loss factors. This was a follow up action to an updated study and recommendation on the setting of Grid loss factors referencing the years 2015-2015, which the Network Operator submitted to RAE. According to this study, total loss on the Interconnected Grid is estimated at 8.5% on the total incoming energy (mean value for years 2014 and 2015). From the above total loss, 2.4% (on the total energy coming in the Grid) corresponds to loss on the Medium Voltage (MV) Network, 2.9% (on the total energy coming in the Grid) to loss on the Low Voltage (LV) Network, and 3.2% accounts for loss not pertaining to technical factors (Α1).
Consultation will end on Friday, December 16, 2016 at 12:00 hours.

2. RAE has submitted to public consultation a recommendation by HEDNO, NII Operator, on the "Standard Operating Aid Contract for the Reinforcement of the Establishment of Fixed Value for Hybrid Stations on the Non-Interconnected Islands Networks", aiming to submit an opinion on the matter to the Minister of Environment and Energy, as per para. 4 of Article 21 in Ν.4414/2016 (Α2).
Consultation will end on Monday, December 19, 2016 at 13:00 hours.

3. RAE has released six opinions following issuance of Ministerial Decisions relating to operating aid contracts for the reinforcement of incremental augmentation (S.E.D.P. - Σ.Ε.Δ.Π.) as well as operating aid contracts for the reinforcement of the establishment of fixed value (S.E.S.T - Σ.Ε.Σ.Τ.) for RES and CHP-generated energy, and on the outcomes of the public consultation on the contract drafts (Α3).
During the consultation process the below companies provided their comments: NUR-MOH A.E, ELETAEN and ESIAPE (Hellenic Association of RES Producers - ΕΣΗΑΠΕ). The comments/suggestions on the above contracts were the following:
- Where there is a provision for an automatic termination of contract, this should be replaced by suspension of contract and obligations provided therein;
- Any references to additional charges, sanctions and fines should be clarified as to the conditions under which they would be applied;
- The time frame for payments should remain as is, i.e., at 20 days from invoicing, instead of 60 days, as provided for in the Contracts in consultation, and late-payment interest should be provided for by the competent body where there are overdue payments;
- There should be a provision for concession of contract to factoring companies;
- Reference Value should be established by NII-SEST during the process of switching to NII-SEDP;
- In case of force majeure events, there should be a provision for extension to the term of contract for a time equal to the duration of such events;
- Final calculation of fee regarding Guaranteed Absorption should not depend on availability of readings and data or supporting systems;
- There should be a clear definition as to the type of cable connection considered as "Interconnection", because a relatively low-power connection does not fully release operation of local plants, hence the confusion about when a NII RES project falls within the framework supporting the Interconnected System.

4. Under provisions in para. 5 of Article 5 in L.4414/2016 on the appointment of Last Resort Cumulative Representation Body (Fo.S.Ε.Τe.Κ.), RAE has submitted the matter to public consultation. The appointment of such Body, which will represent the RES and CHP energy producers who have entered into SEDP contracts and are not represented, for whatever reason that may be, by any other such Cumulative Representation Bodies, is initially an Interconnected System matter (Α4). 

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