Annual Report 2010 - Enel.com

distribution rates. The proposed amendment establishes
an annual correction mechanism for distribution rates
based on the difference between investments carried out
during the year and those planned and remunerated ex
ante in rates in the investment plan agreed with the regulator
at the start of the regulatory period. The existing
rules provided for the adjustment to be made at the end
of the regulatory period. The new measure was published
on September 2, 2010.
Bulgaria
2008-2012 national allocation plan
In December 2009, the Bulgarian government approved
a revised version of the national allocation plan for 2008
through 2012. The plan was sent in early January to the
European Commission and approved on April 26, 2010.
It is expected that the cumulative emissions produced by
Enel Maritza East 3 (EME3) during the 2008-2012 period
will match the allowances allocated for the same time period.
On February 10, 2010, EME3 signed an agreement with
NEK to pass through the cost of purchasing CO allow-
2
ances in the event such a purchase is needed to comply
with the national allocation plan. On September 20, 2010,
the Bulgarian regulator SEWRC declined to approve the
agreement between EME3 and NEK. EME3 subsequently
appealed the regulator’s decision to the Supreme Court.
The hearing is scheduled for May 9, 2011.
In June 2010 the Ministry for the Economy and Water announced
that trading on the CO market might be not
2
be allowed, owing to a preliminary decision taken by the
body responsible for implementing the Kyoto Convention.
The final decision was taken on June 28, confirming the
non-compliance of Bulgaria and the decision to suspend
trading in accordance with the Kyoto mechanisms.
Greece
Network Code
The Network Code was amended as provided for by the
Ministerial Decision of December 30, 2009 as follows:
> it grants priority access to the organized market for
major cogeneration plants (dispatching at zero cost
for total electricity “co-generated” by the cogeneration
plant);
> it gives the Hellenic Transmission System Operator
(HTSO) the option of receiving short-term financing to
64 Enel Annual Report 2010 Report on operations
cover the deficit in the fund for financing renewable
energy incentive mechanisms;
> for traders that have not purchased physical capacity
rights, the Code prohibits bids for the sale or purchase
relating to electricity imports and exports (which had
been previously permitted);
> it imposes penalties on traders in the event there is a
mismatch between the market price and the import
and export program submitted to the HTSO.
Wholesale market rules
On April 28, 2010, the regulator, in an effort to respond
to accusations that prices on the Pool are not sufficiently
transparent, invited all operators to submit proposals for a
comprehensive reform of the wholesale market, addressing
a number of specific issues:
> offers regarding hydroelectric plants;
> incentives/penalties for the accurate transmission of
buy and sell offers;
> a floor for purchase offers.
In the wake of the comments received, on June 12 the regulator
published the following proposed amendments:
> mandatory inclusion of the cost of CO in generators’
2
offers on the wholesale market, taking the EU ETS prices
as a reference;
> elimination of possibility for generators to offer more
than 30% of a plant’s available capacity below the marginal
cost;
> establishment of a monthly (instead of annual) minimum
offer price for large hydroelectric plants;
> establishment of stricter rules and penalties for generators
who do not comply with the generation programs
of the day-ahead market and the instructions of the
dispatching market.
Following a consultation process with electricity sellers
and generators and based on comments received from
the Greek Transmission System Operator (TSO), in September
2010 the Greek regulator RAE announced its final
position on the changes in the wholesale market rules
meant to counter alleged gaming by the dominant operator.
The proposal provides starting from January 1, 2011:
> the mandatory inclusion of opportunity costs for CO in 2
the bids of generators on the electronic market, only as
to the portion not freely assigned;
> the imposition of close monitoring and penalties for
false statements of availability;
> more stringent rules governing offers of mandatory