The Greek Electricity Market Reforms: Political and Regulatory Considerations

• Published in: Energy policy Vol. 62; pp. 1040 - 1047
• Main Authors: Danias, Nikolaos, Kim Swales, John, McGregor, Peter
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.11.2013; Elsevier; Elsevier Science Ltd
• Subjects: Applied sciences; Decision making; Domestic; Eastern Europe; Economic conditions; Economic crisis; Economic data; Electric energy; Electric power; Electric power generation; Electric utilities; Electricity; Electricity market reforms; Energy; Energy economics; Energy policy; European Union; Evolution; Exact sciences and technology; General, economic and professional studies; Governments; Greece; Greeks; issues and policy; Liberalization; Markets; Politics; Public enterprise; Public sector; Regulation; Regulators; Regulatory policy; Studies; Greece; Europe; Regulatory policy; Electricity market reforms; Liberalization; Electricity; Liberalisation; Benchmarking; Markets
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2013.08.010

The paper tracks the evolution of the Greek electricity market since the beginning of the liberalization process. Its progress is benchmarked against the criteria suggested by Littlechild (2006b). The Littlechild framework highlights key remaining deficiencies in the stances and policies adopted which need to be resolved in order for liberalization to proceed successfully. The focus is on the agendas of the Greek government, other domestic political forces and the European Union. A central requirement is the clear commitment to liberalization by the Greek government. In particular the government needs to give up political control over the previous vertically integrated, state-controlled electricity firm, Public Power Company (PPC), and allow more decision making powers and genuine independence to the market regulator. Liberalization is rendered more difficult by the present financial and economic crisis in Greece. •Greek electricity market liberalization is benchmarked against the Littlechild standard electricity market reform model.•Although the majority of the model requirements are met, liberalization in Greece is only partially successful.•Some elements of liberalization are qualitatively more significant than others.•More fundamental political economy issues need to be addressed in order for the liberalization to progress.•Financial crisis in Greece adds extra challenges.