Dagoumas (RAE): Data in the Competition Commission for a dominant position in electricity

By Harry Floudopoulos

The Energy Regulatory Authority has submitted data on the purchase of electricity to the Competition Commission with the question of the possible abuse of a dominant position, as revealed today by the president of the independent authority Th. Dagoumas.

According to Mr. Dagoumas, RAE is in close cooperation with the Competition Commission and in this context consumer pricing issues have been notified for evaluation at all levels of trends. He added that EPANT will be called upon to consider whether there is abuse of a dominant position or concerted practices, implying that vertically integrated companies in the sector are in a position to have a dominant position.

Referring to market surveillance and retail actions for the empowerment and protection of consumers, Mr. Dagoumas noted that sanctions of 3.5 million euros have been imposed on 5 suppliers for overdue debts to managers for 2020 and have been summoned to a hearing. another 12 suppliers for overdue debts of 2021.

For issues related to consumer rights, RAE has proceeded to hearings of 11 suppliers on issues of providing fixed tariffs and standardization of the adjustment clause, while with decisions of 2022 it proceeds again to hearings of 12 suppliers. The issues that the Regulator is examining concern the forecasting and the individual notification of the consumers and as Mr. Dagoumas said, the goal of RAE is to return money to the consumers.

Account templates

Regarding consumer issues, Mr. Dagoumas stated that after a series of consultations, RAE adopted the final standards of the bills that suppliers will have until June 29 to answer if they will adopt them and send the application for the standard contract. will also be posted on their website. In this context, positive reports will be made for those companies that will adopt the standard account proposed by RAE. It is recalled that RAE with decisions 967/2021 and 389/2022 adopted a standard for the application for the supply of electricity supply and a model for the electricity consumption account.

However, the competence of the supply code is not in RAE, something that the Regulator has requested to change as is the case in other European countries.

IPTO

In relation to IPTO’s objections to the decision to determine the Wacc of the administrator, Mr. Dagoumas defended the decision of RAE, speaking in defense of the public interest and the interests of the consumer. He clarified that there is no question of changing the yield unless there is an additional request from IPTO if there are objective conditions (increase of IPTO borrowing costs). Mr. Dagoumas mentioned that there is misinformation in the numbers and mentioned as an example the reduction of the tax to 22%, which translates into an automatic reduction of the Wacc by 0.5%. For the borrower cost of the manager, he added that if this is higher then IPTO can apply for a review and then there will be an adjustment. IPTO wanted a 39% increase in system usage charges, we gave 24% because we limited the Wacc and did not approve what we did not consider reasonable, said Mr. Dagoumas. He added that an increase of 50m euros was approved instead of the 80m euros requested by IPTO, with the allowed revenue being set at 262m euros instead of the 294m euros requested by the manager. “The story is over,” said Mr. Dagoumas when asked if RAE intends to reconsider its decision.

Certification of administrators

Mr. Dagoumas also stressed that RAE will appeal to the European Commission to determine whether the regulation submitted to the parliament for the removal of decisive responsibilities of RAE regarding the certification of gas network operators is compatible with European law. We will ask the European Commission why the decisions of the Energy Regulatory Authority are repealed, said Mr. Dagoumas, explaining that it is the right of the country to change the model of separation, which is done in the case of gas distribution networks in the context of privatization of DEPA Infrastructure and sale. in Italgas. It is noted that the change decided concerns the model of the legal and operational tender versus the property separation that was valid until today.