ocp192_en

Memorandum of Understanding on Specific Economic Policy Conditionalityiii.iv.Market based provision of ancillary and balancing services.Deep market integration of demand side response.v. Ensuring that implementation of NOME-type products is compatible and coherentwith the privatization process of PPC and the creation of small PPC. The NOMEauctionsand products will remain until the Greek electricity retail markets are fullycompetitive. The creation of a fully operational small PPC will constitute anecessary milestone in this regard.6.1.5.2. Gas market1. The timeline and list of actions to be taken in order to facilitate the transition to a moremature gas market model, increasing the degree of competition at all levels, and transferringthe advantages to the broadest possible set of consumers will include, at a minimum, thefollowing actions:i. The transition from a bilateral contracts-based market to a competitive and liquidgas market.ii.iii.iv.A review and improvement of LNG regulation to further favour third-party access,with cost-based tariffs, including if appropriate, complementary measures tofacilitate its usage (gas swaps).A review of the current gas release programme in order to increase its effectiveness.A review of whether complementary measures pursuant to Article 83 of Law4001/2011 are requiredv. Further development of storage legislation and regulation, and foster availability ofstorage sites, in order to improve flexibility in the market.vi.vii.viii.ix.A plan for promoting the adoption of gas as heating fuel for households, for reasonsof efficiency and emissions reduction, inter alia through the use of EU structuralfunds and possibly accompanied by a fiscally neutral revision of the excise on gas,thus simultaneously stimulating more competitive conditions in the electricitymarkets.The transition of supply and distribution (including for the existing and projectedso-called EPAs), to a regulated model, with separation of supply from networkactivities. In line with what is bound to happen in the electricity market, this shouldinclude the phase-in of incentive-based regulation for distribution (and fortransmission) in order to favour network development.The transition to full eligibility for all gas customers.The phase out of the derogation under the Third package.2. As far as the distribution segment is concerned, the minimum result of the above reformswill be:i. The adoption of legal provisions to provide the legal and functional unbundling(Chapter V of Directive 2009/73/EC) and relevant corresponding duties andpowers to RAE (Chapter VIII of Directive 2009/73/EC) of EPAs supply andnetwork businesses, to be effective 1 st October 2015 (September 2014).ii.iii.The adoption of legal provisions to make all gas industrial consumers in Greeceeligible effective 1st October 2014, and all other gas customers eligible according tothe schedule identified in point 1.viii above (June 2014).EPAs will make their supply and network business legally and functionallyunbundled by 30 th September 2015.208