Sunday, 16 October 2016 10:46

Decision 631/2016

Acceptance by the Competition Commission of the proposal of DEPA SA amending the commitments adopted by Decision no. 551/2012, as amended and in force with Decisions nos. 589/2014, 596/2014, and 618/2015.

 

Decision 631/2016
File (PDF) Decision 631/2016
Date of Publication of Decision October 13th, 2016
Issue Number of Government Bulletin  
Relevant Market  Purchase of natural gas, supply in the secondary market for access to the natural gas network.
Proceedings  Amendment of the commitments adopted by previous decisions (Decisions nos. 551/2012, 589/2014, 596/2014, 618/2015) of the Competition Commission.
Legal Framework   Articles 1, 2, and 25 par. 1 of the Greek Competition Act 3959/2011
Decision  Acceptance of DEPA proposal for amendments of the commitments.
Notifying Company  
Company Under examination  DEPA S.A. 
Summary of Decision  The Competition Commission in Plenary decided unanimously and accepted the proposal of DEPA S.A. amending the commitments adopted by previous decisions (nos. 551/2012, 589/2014, 596/2014, 618/2015), and in particular:

(a) the increase in the quantities of natural gas available through the electronic auction program and the modification of individual operating parameters of that program, in view of the forthcoming annual auction; and

(b) the modification of the individual conditions set out in DEPA regarding capacity commitment at the ESFA entry points and, subsequently, the review of the relevant commitment package, with a view to completing all procedures for the transition to the new regulatory framework for capacity allocation at the interconnection points and for the management of contractual congestion (based on European Regulations 984/2013 and 715/2009 respectively).

In particular, based on 0the amended commitments undertaken by DEPA:

Regarding the disposal of quantities of F.A through online auctions

  • The new tenders, through the electronic auction system, increase in stages as follows: 16% in 2017, 17% in 2018, 18% in 2019 and 20% in 2020.
  • Each additional auctioned quantity, i.e. in addition to the current quantity corresponding to 10% of the total quantity that DEPA supplied to its customers during the previous calendar year, will be distributed to suppliers.
  • In the current 10% share of the auctioned quantity, the maximum quantitative participation per potential buyer increases from 15% to 20%.
  • In the share of the additional auctioned quantity, there is no maximum participation limit per potential buyer.
  • DEPA Suppliers and Customers will be treated equally in terms of the flexibility of using the gas purchased.
  • Each modification is made under the current gas procurement program through electronic auctions, which lasts until 2022 (based on the commitments made).
  • From the calculation of the above auctioned quantities, the natural gas sales of DEPA outside Greece will be excluded.
  • DEPA is committed that, after the establishment of the Single Gas Market (EAFA), it will continue to offer for sale on an annual basis, through EAFA, a quantity of natural gas at the above percentages, based on the regulatory framework its further involvement in auction procedures and costs. For the period until the establishment of EAFA, the cost of conducting auctions will be reviewed, in cooperation with RAE, to include any costs arising from the revised auction procedure.
  • The program for the distribution of natural gas quantities through electronic auctions will be reviewed, at the request of DEPA, by the Competition Commission, in cooperation with RAE, when DEPA's market share falls below 60%.

Access to interface points - capacity commitment

  • By previous decision (no. 551/2012), DEPA has committed to give priority to third parties actual or potential competitors or customers, in terms of any future additional capacity at the points of entry of ESFA and, in this regard, not to participate in the commitment of new capacity will result from any capacity upgrade at these points of entry, as well as to conditionally assign reserved capacity without consideration to its customers, until the capacity reserved by DEPA per point of entry is limited to specific quantitative limits. In addition, DEPA has committed that from 30.06.2017 the total capacity that binds at the entry points of the ESFA, as in Agia Triada (LNG-Revythousa), will not exceed specific quantitative limits. With the revised commitments, this quantitative maximum in relation to the point of entry in Sidirokastro is adjusted to 67% of the current total capacity (121.608MWh) of the point, while the quantitative maximum in relation to the other points of entry of Kipi and the Holy Trinity (LNG-Revythousa) remain at the same levels, ie at 55% and 40% of the total capacity of the point, respectively. Furthermore, the possibility of reserving unallocated capacity beyond the above-mentioned quantitative limits per point of entry is maintained, provided that no relevant interest is expressed by a third party, within a shorter period of ten (10) days. Finally, the case of commitment of unallocated capacity to cover emergency (unforeseen) needs (peak demand or insufficiency of supply sources) for a period of up to ten (10) days is also provided.
  • The relevant package of commitments, in the area concerning the access to the entry points Sidirokastro and Kipi, will be reviewed, following a proposal of DEPA, provided that the procedures and the operation of the new regulatory framework regarding the access to the points have been completed, based on the European Regulations 984/2013 and 715/2009 on Capacity Allocation at the interconnection points and on Contractual Congestion Management respectively, and provided that DEPA complies with the relevant formalities and conditions provided in this new regulatory framework.

Regarding the conclusion of contracts with Customers

  • The revised commitments also clarify individual conditions for the conclusion by DEPA of new contracts or the renewal of contracts with its customers, within the package of measures agreed in a previous decision (551/2012) in order to reduce the dependence of customers and provide them with increased flexibility. In this regard, DEPA (a) will give each potential counterparty the opportunity to enter into a one-year contract, and (b) will not enter into contracts lasting more than 2 years with customers covering more than 75% of the actual, according to the customer statement about not exceeding this limit, their annual needs by DEPA.
For the rest, the previous decisions nos. 551/2012, 589/2014, 596/2014, and 618/2015 are still valid. The Competition Commission will continue to work with the Energy Regulatory Authority to more effectively implement (and/or adapt) the commitments undertaken by DEPA.
Judicial Means Final. Decision has not been appealed.
Decisions by the Court of Appeal of Athens(Administrative Division) -
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