authorisation conditions for: htso, suppliers, generators ... authorization/authorisations.pdf ·...

Establishment, Organisation and Pilot Operation of the HTSO

Authorisation Conditions for: HTSO, Suppliers, Generators, Transmission Owner and Distribution

Operator

FINAL DRAFT

17th October 2000

Introduction

INTRODUCTION

In our document of 19th July we submitted the second drafts of the HTSO authorisation and relevant authorisation conditions for generators, suppliers, and the transmission owner. This new paper contains the final drafts of these documents, and also includes a draft of the relevant conditions of a distribution operator authorisation.

We referred in the document containing the second drafts to uncertainty about how RAE and the Minister of Development will wish to approach the preparation of authorisations, in particular in regard to the issue of Authorisations Regulations. Work is now in hand on these Regulations, including drafting of standard general conditions for generators and suppliers. Though this work is not yet complete, it appears that the approach taken in the drafts presented in this document is consistent with the approach being taken in the Regulations.

The second draft document also referred to the issue of definitions. Following further consideration and discussion, the approach that has been taken in the draft HTSO authorisation is to prepare the authorisation as a self-contained document, relying only on definitions appearing in the Law. It does not refer to other definitions in a range of documents such as the Operating Code or the Power Exchange Code. We believe that this approach is consistent with the long-term nature of the authorisations, in contrast to the evolving nature of the Operating Code and the Power Exchange Code.

There remain some uncertainties in these drafts that it will only be possible to resolve in the light of policy decisions to be made by RAE and the Ministry. In particular, the precise definition of the generation ownership and capacity margin requirements in the supplier authorisation remains to be determined. However, on the basis of present information we believe that these drafts are in line with the versions that RAE and the Ministry would be likely to issue.

TABLE OF CONTENTS

HTSO AUTHORISATION 1

SUPPLY AUTHORISATION CONDITIONS 17

GENERATION AUTHORISATION CONDITIONS 23

TRANSMISSION OWNER AUTHORISATION CONDITIONS 27

DISTRIBUTION OPERATOR AUTHORISATION

CONDITIONS 32

REF: /18-OCT-00/C:\DENNIS\WINWORD\GREEK TSO\TASKS\TASK 4 AGREEMENTS AND CODES\LICENCES\001017 FINAL DRAFT AUTHORISATIONS DELIVERY COPY.DOC

1

HTSO AUTHORISATION

Final Draft

17 October 2000

2

Athens •••• 2000

HELLENIC REPUBLIC

MINISTRY OF DEVELOPMENT

SUBJECT: Granting to the Company “HELLENIC TRANSMISSION SYSTEM OPERATOR S.A.” an authorisation to operate and exploit the Transmission System

Having:

1. Considered Law 2773/1999 “Liberalisation of the Electricity Market - Energy Policy Matters Regulation and other Provisions” (the “Law”);

2. received the Application (the “Application”) of the Hellenic Transmission Systems Operator S.A. for authorisation to operate and exploit the Transmission System;

3. considered the opinion relating to the opinion issued by the Regulatory Authority for Energy (“RAE”) pursuant to Article 18.2 of the Law delivered by RAE on • ;

4. reviewed the Application in the context of the Authorisations Regulation (“Authorisations Regulation”) established by the decision of the Minister of Development issued on • according to paragraph 1 of Article 28 of the Law following the delivery of an opinion by RAE; and

5. considered the joint Ministerial Decision issued in accordance with paragraph 2 of Article 28 of the Law in relation to the fees payable for the issuing, the modification or the extension of authorisations, as well as the annual fees for the use of the authorisations.

The Minister of Development has decided, in exercise of the powers conferred by Article 18.2 of the Law and with effect from [ • 2001] and hereby authorises Hellenic Transmission System Operator S.A. (“Authorised Entity“) to operate and exploit the electricity Transmission System in Greece (excluding the non Inter-Connected Islands) subject to the Conditions set out in this Authorisation (hereinafter referred to as the “Conditions“). The date on which HTSO shall be obliged to comply with the provisions of the Power Exchange Code shall be [ • 2001].

3

The Conditions are subject to modification or amendment in accordance with their terms or with the Law. The Authorisation is further subject to the terms as to revocation specified in the Authorisations Regulation.

[Signature of Minister of Development.]

Minister of Development

• 2001

Condition 1: Interpretation

Unless otherwise defined in the Law or herein the terms used in this Authorisation shall have the meaning set out in Schedule 1.

Condition 2: Prohibited Activities

The Authorised Entity shall not own, operate, or hold any interest in any entity which generates electricity, owns transmission facilities, or distributes or supplies electricity to consumers.

Condition 3: General Obligations of the Authorised Entity

The Authorised Entity shall carry out its obligations under the Law, and in particular shall:

(a) ensure the maintenance of and implement the development of the Transmission System, as well as its inter-connections with other systems;

(b) endeavour to ensure that the energy supply of the Greece is provided in a sufficient, secure, economically efficient and reliable manner; and

(c) conduct the activities of operator of the Transmission System and the Power Exchange Code operator for the Transmission System.

Condition 4: Prohibition of Cross-Subsidies

The Authorised Entity may not receive any cross-subsidy from, or give any cross-subsidy to:

4

(a) an affiliate or related undertaking of the Authorised Entity; or

(b) any other company or entity for the time being holding (directly or indirectly) any shares in the Authorised Entity or any affiliate or related undertaking of the Authorised Entity.

Condition 5: Economic Purchasing of Ancillary Services

1. The Authorised Entity shall procure such quantities and types of Ancillary Services at any time available as may be appropriate to enable the Authorised Entity to discharge its obligations under the Law and this Authorisation.

2. In procuring Ancillary Services pursuant to paragraph 1, the Authorised Entity shall purchase or otherwise acquire Ancillary Services from the most economical sources available to it, having regard to:

(a) the quantity quality and nature of the Ancillary Services required to enable discharge of its obligations under the Law and this Authorisation; and

(b) the diversity, number and reliability of such Ancillary Services at that time available for purchase or other acquisition.

Condition 6: Responsibility for the System Trading Arrangements

1. The Authorised Entity shall be responsible for the development and operation of system trading arrangements and for the preparation and modification of the Power Exchange Code that governs them.

2. The Authorised Entity’s development and implementation of the Power Exchange Code shall be in accordance with the Law and this Authorisation.

Condition 7: Preparation and Implementation of a Power Exchange Code

1. Within three (3) months of the commencement of this Authorisation, the Authorised Entity shall prepare and submit to the Minister of Development for approval a draft Power Exchange Code designed to facilitate the development, maintenance and operation of efficient, co-ordinated and economical system trading arrangements. In preparing the draft Power Exchange Code, the Authorised Entity shall consult with any Authorised Suppliers, Authorised Generators, the Authorised Transmission

5

Owner, the Authorised Distribution Operator, and any other parties that it considers appropriate.

2. Following approval of the Power Exchange Code by the Minister of Development, or any modification of the Power Exchange Code approved by the Minister of Development under the terms of this Authorisation, the Authorised Entity shall be responsible for ensuring prompt publication of a notice in two daily newspapers with wide circulation in Greece with details of the Power Exchange Code or its modification. Such notices shall include references to the fact that the Power Exchange Code will be available for inspection at the offices of the HTSO, and that copies are available to the public at a price that reflects the costs of duplication and despatch.

3. The Power Exchange Code prepared by the Authorised Entity under the terms of paragraph 1 of this Condition shall deal with all material commercial aspects relating to the purchase and sale of bulk power necessary for the participation on a non-discriminatory basis of all Authorised Generators and Authorised Suppliers in the Transmission System.

4. Where the Authorised Entity considers it appropriate, or where [Minister of Development] so requests, the Authorised Entity shall, in consultation with Authorised Suppliers, Authorised Generators, the Authorised Transmission Owner, the Authorised Distribution Operator, and any other parties that it considers appropriate, review the Power Exchange Code and its implementation. Such review shall be carried out in accordance with any review procedure laid down in the Power Exchange Code. Following any such review, the Authorised Entity shall send to the Minister of Development:

(a) a report on the outcome of such review, including details of representation received by the Authorised Entity during the course of the review; and

(b) any proposed revisions to the Power Exchange Code that the Authorised Entity considers appropriate for the achievement of the objectives referred to in this Authorisation and the Law.

5. The Authorised Entity shall only implement any revisions to the Power Exchange Code where:

(a) it has received the written approval of the Minister of Development to the proposed revisions; and

(b) it has published details of the revised Power Exchange Code approved by the Minister of Development at least 28 days before the proposed date of its implementation.

6

6. In preparing, implementing and complying with the Power Exchange Code, the Authorised Entity shall act transparently and shall not unduly discriminate among users.

7. The Authorised Entity shall make available a copy of the Power Exchange Code that is for the time being in force to any person requesting it at a price not exceeding the reasonable cost of duplicating it and despatching it to that person.

Condition 8. Conduct of the System Trading Arrangements in Accordance with the Power Exchange Code

The Authorised Entity shall be responsible for ensuring that it complies with the Power Exchange Code and for promoting compliance by all persons participating in the Power Exchange Code.

Condition 9: Regulation and Recovery of the Authorised Entity’s Administration Costs

1. Not less than three (3) months before the commencement of each financial year, the Authorised Entity shall prepare and submit to the Minister of Development a report in a form prescribed by the Minister of Development, detailing the reasonable operating expenses it expects to incur during the next succeeding year to carry out its obligations under this Authorisation, including depreciation and a reasonable rate of profit as provided in the Law.

2. The Authorised Entity shall be permitted to recover through the operation of the Power Exchange Code in any financial year the reasonable operating expenses determined under paragraph 1 of this Condition and approved by the Minister of Development. The Authorised Entity shall also be permitted to recover any part of the operating costs in respect of any previous financial year where those operating expenses were not fully recovered in that year, and shall take account of any over-recovery of operating expenses in any other financial year.

[Note: The Minister of Development may also wish to consider alternative formulations of this cost recovery mechanism, but possible alternative methods are not dealt with here.]

Condition 10. Preparation and Implementation of the Operating Code

1. Within three (3) months of the commencement of this Authorisation, the Authorised Entity shall prepare and submit to the Minister of Development for approval a draft

7

Operating Code designed to facilitate the development, maintenance and operation of an efficient, co-ordinated and economical Transmission System. In preparing the draft Operating Code, the Authorised Entity shall consult with Authorised Suppliers, Authorised Generators, the Authorised Transmission Owner, Authorised Distribution Operator, and any other parties that it considers appropriate.

2. Following approval of the Operating Code by the Minister of Development, the Authorised Entity shall be responsible for ensuring the prompt publication in 2 daily newspapers with wide circulation in Greece a notice stating that the Operating Code has been approved and that copies of the Operating Code are available for inspection at the offices of the Authorised Entity and that copies are available to the public at a price that reflects the costs of duplication and despatch.

3. The Operating Code prepared by the Authorised Entity under the terms of paragraph 1 of this Condition shall deal with all material technical aspects relating to connections to and the operation and use of the Transmission System, and shall include, but not be limited to, connection conditions specifying the technical, design and operational criteria to be complied with by the Authorised Entity and by any person connected or seeking connection with the Transmission System. The Operating Code shall include all matters specified in Article 19 of the Law.

4. Where the Authorised Entity considers it appropriate, or where the Minister of Development so requests, the Authorised Entity shall, in consultation with Authorised Suppliers, Authorised Generators, the Authorised Transmission Owner, Authorised Distribution Operator and any other parties that it considers appropriate, review the Operating Code and its implementation. Such review shall be carried out in accordance with any review procedure laid down in the Operating Code. Following any such review, the Authorised Entity shall send to the Minister of Development:

(a) a report on the outcome of such review, including details of representation received by the Authorised Entity during the course of the review; and

(b) any proposed revisions to the Operating Code that the Authorised Entity considers appropriate for the achievement of the objectives referred to in this Authorisation and the Law.

5. The Authorised Entity shall not implement any revisions to the Operating Code until it receives the written approval of the Minister of Development to the proposed revisions.

6. In preparing, implementing and complying with the Operating Code, the Authorised Entity shall act transparently and shall not unduly discriminate among users.

8

7. The Authorised Entity shall make available a copy of the Operating Code that is for the time being in force to any person requesting it at a price not exceeding the reasonable cost of duplicating it and despatching it to that person.

Condition 11. Transmission System Development and Connection

1. The Authorised Entity shall be responsible for planning and ensuring the implementation of the expansion and development of the Transmission System in Greece in order to ensure that all requirements for transmission are met as fully, efficiently, and economically as possible, and to meet all its obligations under the Law.

2. The Authorised Entity shall prepare and publish by [March 2001], and not less than every [one] year thereafter, estimates for the following five (5) years of the generating capacity that is likely to be connected to the Transmission System, the inter-connection needs to the other systems or the Network, the potential transmission capacity of the Transmission System and the volumes of electricity demanded from the Transmission System.

3. On the basis of the estimates prepared under paragraph 2 of this Condition, the Authorised Entity shall prepare annually, publish, and submit for approval of the Minister of Development its plans for the growth and development of the Transmission System that it considers necessary to meet the growth in demand and the needs of users.

4. Where such plans are approved by the Minister of Development, they shall form the basis for the Authorised Entity’s development responsibilities set out in paragraph 1 of this Condition. The Authorised Entity’s responsibility for development of the Transmission System shall include the provision of new connections to the Transmission System, in accordance with Condition 13.

Condition 12. Non-Discrimination in the Provision of Use of Transmission System and Connections to Transmission System

1. In the provision of access to the Authorised Entity’s Transmission System or in the carrying out of works for the purpose of connection to the Transmission System, the Authorised Entity shall not discriminate as between any persons or class or classes of persons.

2. In the setting of its charges, the Authorised Entity shall not restrict, distort or prevent competition in the generation or supply of electricity.

9

Condition 13. Obligation to Offer Terms for Connections

1. Within [three (3) months] of the granting of this Authorisation the Authorised Entity shall prepare and publish a statement in a form approved by the Minister of Development setting out the basis on which it will levy charges for new connections to the Transmission System. Such charges shall reflect the costs of providing the facilities required and shall be non-discriminatory in their application to different users. Where the Authorised Entity considers it necessary, or the Minister of Development requests it, the Authorised Entity shall review the statement and submit it to the Minister of Development for approval prior to publication.

2. Where any Authorised Generator, Authorised Distribution Operator, or Directly Connected Customer applies to the Authorised Entity for a new connection to the Transmission System, or for modification of an existing connection, the Authorised Entity shall as soon as possible and not later than [3 months] from the date of request, provide the applicant with details of the charges and other terms that will apply to the new connection. Such charges and terms shall not differ from those indicated in the statement referred to in paragraph 1 of this Condition. If the applicant for the new connection considers the terms offered by the Authorised Entity to be unreasonable and the Authorised Entity is unwilling to modify the terms to the satisfaction of the applicant, the applicant may apply to the Minister of Development to have the terms reviewed, and Minister of Development’s decision will be binding on both parties.

3. Where, following an offer of terms under paragraph 2 of this Condition, any applicant requests the Authorised Entity to provide a new connection, the Authorised Entity shall ensure that the connection is provided in accordance with the offer of terms promptly and without discrimination.

Condition 14. Obligation to Offer Terms for Use of Transmission System

1. The Authorised Entity shall as soon as practicable and in any event within [three (3) months] after this Authorisation has come into force prepare a statement in a form approved by the Minister of Development setting out the basis upon which the charges for use of the Transmission System will be made in each case. This statement should enable any person to make a reasonable estimate of the charges to which he would become liable and should include details of charges for the transport of electricity, any charges which may be made for entry or exit from the Transmission System, and any other charges.

10

2. Where any Authorised Generator or Authorised Supplier applies to the Authorised Entity for a specific use of the Transmission System service, the Authorised Entity shall as soon as possible and not later than [3 months] from the date of request, provide the applicant with details of the proposed charges and other terms for the specified service. Such charges and terms shall not differ from those indicated in the statement referred to in paragraph 1.

3. If the Authorised Entity does not provide the applicant with proposed charges within the time limit specified in paragraph (2), or the applicant considers the terms offered by the Authorised Entity to be unreasonable, it may apply to the Minister of Development to require that terms be offered or to have the terms reviewed, and the Minister of Development’s decision will be binding on both parties.

Condition 15: Regulation of Charges for Use of the Transmission System

1. Not less than three (3) months before the commencement of each financial year, the Authorised Entity shall prepare and submit to Minister of Development a report in a form prescribed by Minister of Development detailing:

(a) the expected aggregate revenues from its provision of transmission use of system services for the next succeeding financial year; and

(b) the expected fees that it will pay to the Transmission Owner under the terms of the Transmission Control Agreement, but excluding the Authorised Entity’s own operating expenses.

2. If the report submitted under the terms of paragraph 1 of this Condition indicates a significant difference between its expected aggregate revenues and the expected fees payable to the Transmission Owner, the Authorised Entity shall also submit with its report an explanation of the measures it proposes to take, including any proposed changes to the use of system charges, to eliminate the difference.

3. Where the Authorised Entity wishes to change any tariff or charge for use of system services provided under the terms of this Authorisation, it shall submit to Minister of Development at least [three (3) months] before the proposed date of the change full details of the change, in a form to be prescribed by Minister of Development. The Authorised Entity shall not implement any such change until it has received in writing the approval of Minister of Development.

4. Minister of Development may require the Authorised Entity to amend tariffs and charges for the services provided under the terms of this Authorisation, where the Minister of Development considers it necessary in order to ensure that the Authorised Entity’s expected revenue corresponds to its costs.

11

Condition 16. Obligation to Enter into a Transmission Control Agreement

The Authorised Entity shall, within three (3) months of the issue of this Authorisation prepare and submit for approval to the Minister of Development an agreement (“the Transmission Control Agreement”) to be entered into by the Authorised Entity and the Transmission Owner. The Transmission Control Agreement shall:

(a) provide the detailed terms on which the Authorised Entity shall operate the Transmission System to ensure that the Authorised Entity is able to meet its obligations under the Law and this Authorisation;

(b) provide for the method of payment through which the Authorised Entity reimburses the Transmission Owner for the reasonable cost of ownership, maintenance, and physical operation, including depreciation and a reasonable rate of profit.

Condition 17: Transmission System Security Standard and Quality of Service

1. The Authorised Entity shall within three (3) months after this Authorisation enters into force draw up and submit to the Minister of Development for his approval a statement setting out criteria by which the performance of the Authorised Entity in maintaining Transmission System security and availability and quality of service may be measured.

2. The Authorised Entity shall within two (2) months after the end of each financial year submit to the Minister of Development a report providing details of the performance of the Authorised Entity during the previous financial year against the criteria referred to in paragraph 1.

Condition 18: Health and Safety of Employees

It shall be the duty of the Authorised Entity to consult with appropriate representatives of the employees for the purpose of establishing and maintaining an appropriate machinery or forum for the joint consideration of matters of mutual concern in respect of the health and safety of persons employed by the Authorised Entity, or other authorised entities to the extent that they are affected by the operation of the Transmission System.

12

Condition 19: Disposal of Relevant Assets

1. The Authorised Entity shall not dispose of or relinquish operational control over any relevant asset otherwise than in accordance with the following paragraphs of this Condition.

2. Save as provided in paragraph 3, the Authorised Entity shall give to the Minister of Development not less than two (2) months’ prior written notice (the “Notice Period”) of its intention to dispose of or relinquish operational control over any relevant asset. The Authorised Entity shall also give to the Minister of Development such further information as the Minister of Development may request relating to such asset or the circumstances of such intended disposal or relinquishment of control or of the person proposing to acquire such asset or operational control over such asset.

3. Notwithstanding paragraphs 1 and 2 of this Condition, the Authorised Entity may, upon the expiry of the Notice Period, dispose of or relinquish operational control over any relevant asset

(a) where:

(i) the Minister of Development has issued directions for the purposes of this Condition containing a consent to the disposal or relinquishment of operational control over such relevant assets; and

(ii) the transaction or the relevant assets are of a description to which such directions apply and the disposal or relinquishment is in accordance with any conditions to which the consent is subject; or

(b) where the disposal or relinquishment of operational control in question is required by or under any enactment or subordinate legislation or by or under the transfer scheme.

4. Notwithstanding paragraph 1 of this Condition, the Authorised Entity may dispose of or relinquish operational control over any relevant asset as is specified in any notice given under paragraph 2 of this Condition in circumstances where:

(a) the Minister of Development confirms in writing that he consents to such disposal or relinquishment (which consent may be made subject to the acceptance by the Authorised Entity or any third party in favour of whom the relevant asset is proposed to be disposed or operational control is proposed to be relinquished of such conditions as the Minister of Development may specify); or

13

(b) the Minister of Development does not inform the Authorised Entity in writing of any objection to such disposal or relinquishment of control within the notice period referred to in paragraph 2 of this Condition.

5. In this Condition:

“disposal“ includes any sale, gift, lease, authorisation, loan, mortgage, charge or the grant of any other encumbrance or the permitting of any encumbrance to subsist or any other disposition to a third party, and “dispose “ shall be construed accordingly. “relevant asset” includes any land, equipment, or other physical asset used in the course of the business authorised by this Authorisation, where the asset has a replacement value in excess of [Drachmas X Million].

Condition 20: Provision of Accounting and Other Information to the Minister of Development and Publication

1. Subject to paragraph 4 of this Condition, the Authorised Entity shall furnish to the Minister of Development, in such manner and at such times as the Minister of Development may require, such information and shall procure and furnish to him such reports, as the Minister of Development may consider necessary in the light of the Conditions or as he may require for the purpose of performing the functions assigned to him by or under the Law.

2. The Authorised Entity shall promptly publish in 2 daily newspapers with wide circulation in Greece a copy of the accounts that it submits under the terms of legislation on submission of company accounts, and copies of such accounts shall also be made available for inspection at its offices.

3. Without prejudice to the generality of paragraph 1 of this Condition, the Minister of Development may call for the maintenance of accounts and the furnishing of accounting information which is more extensive than or differs from that required to be prepared and published by the Authorised Entity under the Law or other Laws in Greece. Such a requirement for additional accounting information may include separate accounts for separate activities of the Authorised Entity, in whatever form the Minister of Development may require.

4. The power of the Minister of Development to call for information under paragraph 1 of this Condition is in addition to the power of the Minister of Development to call for information under or pursuant to any other Condition.

5. In paragraphs 1 to 4 of this Condition, “information“ shall include any documents, accounts, estimates, returns or reports (whether or not prepared specifically at the

14

request of the Minister of Development) of any description specified by the Minister of Development.

Condition 21: Payment of Fees

1. The Authorised Entity shall, at the times stated hereunder, pay to the Minister of Development fees of the amount specified in, or determined under, the following paragraphs of this Condition.

2. Within 30 days after the grant of this Authorisation, the Authorised Entity shall pay to the Minister of Development an initial fee of [• Drachmas].

3. In respect of the year beginning 1st April 2001, and on the 1st April each year thereafter, the Authorised Entity shall pay to the Minister of Development an annual fee of [• ].

Condition 22. Admission of Participants to the Power Exchange Code

The Authorised Entity shall ensure that admission to the Power Exchange Code is available on a non-discriminatory basis to all Authorised Generators or Authorised Suppliers. The Authorised Entity shall be responsible for preparing and publishing:

(a) the procedure for submission of applications for admission; and

(b) the method by which it deals with applications and the criteria used to determine applications.

Condition 23. Register of Eligible Customers

1. The Authorised Entity shall maintain a register of Eligible Customers (the “Register”), in which will be recorded the following information in respect of each Eligible Customer:

(a) the maximum demand in respect of that Eligible Customer, as determined by the HTSO in accordance with its Authorisation;

(b) the reference number or other identification of the meter through which that Eligible Customer is supplied; and

15

(c) the Authorised Supplier that is for the time being responsible for the metered off-take from that Eligible Customer under the terms of the Power Exchange Code.

2. The contents of the Register prepared under the terms of this Condition shall be confidential, except that the Authorised Entity shall provide to each Authorised Supplier details of any entry in respect of which the Authorised Supplier is shown as responsible for the metered off-take under the terms of the Power Exchange Code.

Condition 24. Monitoring of Supplier Generating Capacity and Reserve Margins

The Authorised Entity shall regularly monitor the compliance of each Authorised Supplier with its obligations under the terms of the Law and its authorisation in respect of the generating capacity its owns or its generating capacity margin. The Authorised Entity shall promptly notify the Ministry of Development and RAE where it has indications or believes that any Authorised Supplier participating in the Power Exchange Code is in breach or is likely to be in breach of such obligations.

Condition 25. Monitoring of Generator Offer Behaviour

The Authorised Entity shall promptly notify the Ministry of Development and RAE where it has indications or believes that an Authorised Generator or Authorised Supplier participating in the Power Exchange Code is:

(a) in breach of the Law or its authorisation in respect of the level of any offer that it submits under the Power Exchange Code or Operating Code; or

(b) behaving in a way which is anti-competitive or is attempting in some other way to exploit or abuse a dominant market position.

16

SCHEDULE 1 Definitions Authorised Supplier means a party authorised pursuant to Article 24 of the Law..

Authorised Generator means a party authorised pursuant to Article 9 of the Law..

Authorised Transmission Owner means a party authorised pursuant to Article 12 of the Law.

Authorised Distribution Operator means a party authorised pursuant to Article 21 of the Law.

Directly Connected Customers means Customers connected directly to the Transmission System.

.

17

DRAFT AUTHORISATION CONDITIONS

relating to inter-action with the HTSO for an

AUTHORISED SUPPLIER

Final Draft

17th October 2000

Supply Authorisation Conditions

18

Note: This draft contains only those Authorisation conditions that are considered necessary to ensure compliance by the Authorised Supplier with the System Trading Arrangements and ensure its compliance with all associated obligations, and the final form of these will be dependent on decisions of RAE and the Ministry. In addition, RAE and the Ministry may wish to include additional conditions covering other matters.

Condition 1. Definitions

The words, terms and expressions to which meanings are assigned by the Electricity Law shall have the same meanings in this Authorisation. Other words, terms and expressions used in this Authorisation which are not defined in the Law shall have the meaning given to them in this Authorisation and Schedule A.

Condition 2. Information Provisions and Accounts

1. It is a condition of this Authorisation that the Authorisation Holder shall provide to the Minister of Development any documents or other information that it may require to carry out its functions and obligations under the Law and this Authorisation.

2. It is a condition of this Authorisation that the Authorisation Holder shall comply with its obligations under Article 30 of the Law for the maintenance of accounts, such accounts to be kept available to the public if the Authorisation Holder is not otherwise obliged to publish its accounts.

Condition 3. Scope of the Authorisation

1. [XYZ Person] (the Authorisation Holder) is hereby authorised under the terms of the Law to supply electricity to [this could be specified as one or more of the following:

(a) any customers in Greece, up to an aggregate Maximum Demand not exceeding X MW; or

(b) any Eligible Customers with Maximum Demand that in total does not exceed X MW; or

(c) the following Eligible Customers [list of consumers and premises] with Maximum Demands that in total do not exceed X MW

2. For the purposes of this Condition, “Maximum Demand” in respect of any customer or group of customers shall be the peak demand figure as determined by the HTSO.


19

Condition 4. Relevant Generating Plant

1. This Authorisation has been issued on the condition that the Authorisation Holder is the owner of the generating plant located in Greece or another EU Member State that are listed in Schedule B (the Relevant Generating Plant), and that:

(a) the Relevant Generating Plant have a total net capacity of not less than [X MW] ;

(b) the total net capacity of not less than [X MW} is not contracted, dedicated, or in any other way committed to supplying customers or purchasers other than those covered by this Authorisation in Greece or elsewhere in such a way that would prevent the plant supplying the customers that the Authorisation Holder is authorised to supply under this Authorisation;

(c) the Relevant Generating Capacity has not been taken into account in respect of any other supply arrangements, authorisation, permit, or licence issued in Greece or elsewhere; and

(d) the Authorisation Holder has made suitable arrangements for the necessary transmission capacity as required by Article 24 of the Law.

2. Where the Authorisation Holder acquires replacement or additional generating plant, it shall notify the Minister of Development in writing and request an appropriate amendment to Schedule B. The Authorisation Holder shall provide such additional information about the plant as the Minister of Development may request.

3. If the Authorisation Holder fails to comply with the conditions set out in paragraph 1 of this Condition, the Authorisation Holder shall be in breach of the terms of this Authorisation.

Condition 5. Reserve Generating Capacity

1. This Authorisation has been issued on the condition that the Relevant Generating Capacity, taken together with any other generating capacity located in the European Union that the Authorisation Holder has contracted on an exclusive basis to provide reserve capacity (and details of which have been provided to the Minister of Development), have a net generating capacity of not less than [X+a MW].


20

2. The Authorisation Holder shall submit to the HTSO and the Minister of Development written notice of any change that it proposes to these arrangements for reserve generating capacity at least [2 months] prior to the date on which the change is to take effect. The Authorisation Holder shall provide such additional information about the proposed changes as the Minister of Development may request.

Condition 6. Balance Between Maximum Demand and Relevant Generating Capacity

Where, due to growth in demand or any other factors, the actual or expected Maximum Demand of the customers supplied by the Authorisation holder together exceed X MW, the Authorisation Holder shall notify the Minister of Development of the increased figure. Such notification shall also specify the steps that the Authorisation Holder proposes to take to ensure that its Relevant Generating Capacity remains equal to or greater than the total of the Maximum Demands of its customers. The steps to be taken must consist either of:

(a) arrangements to achieve an increase in its Relevant Generating Capacity, including where necessary transitional arrangements approved by Minister of Development for contracting with generators to ensure that there is an immediate increase in capacity to serve the costumers s; or

(b) arrangements to reduce the total of the Maximum Demands of its customers, either through demand management measures or transfer of customers to other Authorised Suppliers.

Condition 7. Disposal of Assets and Closure of Plant

1. The Authorisation Holder shall give the Minister of Development not less than [one year] prior written notice of its intention to dispose of, relinquish operational control over, or close any generating plant referred to in Condition 4. Any further information must be provided by the Authorisation Holder if required by Minister of Development.

2. For the purposes of this condition, “disposal” includes any sale, gift, lease, licence, loan, security, mortgage, charge or the grant of any other encumbrance on the asset.

3. The Authorisation Holder may dispose of, relinquish operational control over, or sell any relevant generating plant if:


21

(a) the Minister of Development confirms in writing that it consents to such disposal, relinquishment or closure, subject to such conditions as the Minister of Development may impose; or

(b) the Minister of Development does not inform the Authorisation Holder in writing of any objection to such disposal, relinquishment of control or closure within the notice period.

Condition 8. Compliance with Other Codes

The Authorisation Holder shall ensure that it complies with all codes relevant to its role as a supplier, and shall in particular:

(a) remain a participant in, and comply with, the Power Exchange Code from [ • 2001] (the Effective Date for the purposes of the Power Exchange Code) and with any other code or arrangement that may replace it by process of law;

(b) comply at all times with all relevant provisions of the Operating Code and the Distribution Code.

Condition 9. Transmission Use of System Agreement and Other Agreements

The Authorisation Holder shall be required to enter into with the HTSO such transmission use of system agreements and connection agreements as may be required for the activities authorised by this Authorisation, and shall comply with the terms of those agreements.


22

SCHEDULE A: Definitions

SCHEDULE B: List of Relevant Generating Plant

23


relating to inter-actions with the HTSO for an

AUTHORISED GENERATOR

Final Draft

17th October 2000

Generator Authorisation Conditions

24

Note: This draft contains only those Authorisation conditions that are considered necessary to ensure compliance by the Authorised Generator with the System Trading Arrangements and ensure its compliance with all associated obligations, and the final form of these will be dependent on decisions of RAE and the Ministry. In addition, RAE and the Ministry may wish to include additional conditions covering other matters.






Condition 3. Scope of Authorisation

[XYZ Generator] (the Authorisation Holder) is hereby authorised under the terms of the Law to generate electricity at the [name] generating plant, located at [location], fuelled by [fuel], and with a maximum capacity of [ ] MW.

Condition 4. Disposal of Assets

1. The Authorisation Holder shall give the Minister of Development not less than [one years] prior written notice of its intention to dispose of or relinquish operational control over any asset. Any further information must be provided by the Authorisation Holder if required by the Minister of Development.


25

2. For the purposes of this condition, a disposal includes any sale or transfer to another party or creation of any encumbrance of any asset.

3. The Authorisation Holder may dispose of or relinquish operational control over any asset if:

(a) The Minister of Development confirms in writing that it consents to such disposal or relinquishment subject to such conditions as the Minister of Development may impose; or

(b) The Minister of Development does not inform the Authorisation Holder in writing of any objection to such disposal or relinquishment of control within the notice period.

4. For the purposes of this condition, “asset” includes any land, equipment, or other physical asset used in the course of the business authorised by this Authorisation, where the asset has a replacement value in excess of [Drachmas X Million].

Condition 5. Construction, Extension, and Closure of Plant

Where the Authorisation Holder intends to make an investment in the construction, or extension of significant plant, or plans to close significant plant, he must first obtain the approval of the Minister of Development, and such approval is not to be unreasonably withheld. “Investment” shall mean a planned investment in assets, including the acquisition of the right to use or control assets through a contract, lease or other similar arrangement. “Significant” shall mean any generating plant with a capacity of [10 MW] or more.

[Note: The exact wording of this condition will depend on whether authorisations are issued for individual power stations or as a more general authorisation.]


The Authorisation Holder shall ensure that it complies with all Codes relevant to its role as a generator, and shall in particular:

(a) remain a participant in, and comply with, the Power Exchange Code from [ • 2001] (the Effective Date for the purposes of the Power Exchange Code) and any other code or arrangement that may replace it by process of law, to the full extent of the capacity of its authorised plant;


26


Condition 7. Transmission Use of System Agreement and Other Agreements

The Authorisation Holder shall be required to enter into with the HTSO such transmission use of system agreements and connection agreements as may be required for the activities authorised by this Authorisation. The Authorisation Holder shall use its best endeavours to comply with the terms of those agreements, and shall promptly remedy any breach of which it becomes aware.

Condition 8. Behaviour in Connection with the Power Exchange Code

The Authorisation Holder shall ensure that in its activities covered by this Authorisation it does not:

(a) act in breach of the Law or its Authorisation in respect of the level of any offer that it submits under the Power Exchange Code or Grid Code; or

(b) behave in a way which is anti-competitive or seeks in some other way to exploit or abuse a dominant market position.

27


relating to the inter-actions with the HTSO for the

TRANSMISSION OWNER

Final Draft

17th October 2000

Transmission Owner Authorisation Conditions

28

Note: This draft contains only those Authorisation conditions that are considered necessary to ensure compliance by the Transmission Owner with the Transmission Control Agreement, the Operating Code and its other associated obligations, and the final form of these will be dependent on decisions of RAE and the Ministry. In addition, RAE and the Ministry may wish to include additional conditions covering other matters.







[PPC Transmission SA] (the Authorisation Holder) is granted exclusive rights of ownership and development of the Transmission System under the terms of Article 12 .

Condition 4. Confidentiality

The Authorisation Holder shall ensure that any information that it collects or has access to during the course of activities covered by this Authorisation is not published or made available to any other party where the Authorisation Holder has reason to believe that the information is confidential. The Authorisation Holder shall in particular ensure that information on the use or intended use of the Transmission System by Generators or


29

Suppliers is not provided to any other Generator or Supplier, including [PPC Generation, PPC Distribution, or PPC Supply/its Related Companies].

Condition 5. Obligations to Maintain and Develop the System

The Authorisation Holder shall be responsible for:

(a) undertaking the implementation of the development of the Transmission System promptly, efficiently, and in accordance with the plans of the HTSO and the Transmission Control Agreement

(b) the maintenance and physical operation of the Transmission System so as to ensure its operational and technical integrity, and in accordance with this Authorisation and the Transmission Control Agreement.

Condition 6. Disposal of Assets

1. The Authorisation Holder shall give the Minister of Development not less than [twelve months] prior written notice of its intention to dispose of or relinquish operational control over any asset. Any further information must be provided by the Authorisation Holder if required by the Minister of Development.

2. For the purposes of this condition, a “disposal” includes any sale or transfer to another party or the creation of any other encumbrance on the asset.

3. The Authorisation Holder may dispose of or relinquish operational control over any asset if:

(a) the disposal is in accordance with the Transmission Control Agreement; and

(b) The Minister of Development confirms in writing that it consents to such disposal or relinquishment subject to such conditions as the Minister of Development may impose; or

(c) The Minister of Development does not inform the Authorisation Holder in writing of any objection to such disposal or relinquishment of control within the notice period.

4. For the purposes of this condition, “asset” includes any land, equipment, or other physical asset used in the course of the business authorised by this Authorisation, where the asset has a replacement value in excess of [Drachmas X,000].


30

Condition 7. Construction, Extension, and Closure of Plant

1. Before making any investment in the construction or extension of significant network assets, or closing part of any network, the Authorisation Holder shall obtain the written confirmation of the HTSO that it is in compliance with obligations under the Transmission Control Agreement.

2. “Investment” shall mean a planned investment in assets, including the acquisition of the right to use or control assets through a contract, lease or other similar arrangement.

Condition 8. Obligation to Enter a Transmission Control Agreement

Within [3] months of the issue of this Authorisation, the Authorisation Holder shall enter an agreement (the “Transmission Control Agreement”) with the HTSO, in terms approved by the Minister of Development. The Authorisation Holder shall so conduct its activities under this Authorisation to ensure that it complies with the terms of the Transmission Control Agreement, and promptly act to remedy any breach of which it becomes aware.

Condition 9. Use of the System Assets for Non-energy Related Purposes

In accordance with the provisions of Article 13 of the Law, the Authorisation Holder may, subject to the terms of this Authorisation, be permitted to operate and exploit the Transmission System for other non-energy related purposes, providing that such activities:

(a) are in accordance with the Transmission Control Agreement

(b) are approved by the Minister of Development; and

(c) do not impede the secure, and reliable, and economically efficient operation of the Transmission System.

Condition 10. Provision of New Connections

Where required under the provisions of the Transmission Control Agreement and in response to a request from the HTSO, the Authorisation Holder shall promptly and without discrimination:


31

(a) prepare and submit to the HTSO plans for new connection or modifications to existing connections, including details of the costs of carrying out the work;

(b) if instructed to do so, carry out the work necessary to provide the connection, or commission the work to be carried out in accordance with the plans submitted or any revisions to the plans agreed with the HTSO.

Condition 11. Permitted Revenue Recovery Under the TCA

1. Not less than [3] months before the commencement of each financial year, the Authorisation Holder shall prepare and submit to the Ministry of Development a report in a form prescribed by the Ministry detailing the estimated costs of its physical operation and maintenance of the Transmission System over the following financial year, including the cost of depreciation and a reasonable rate of return on the assets, as specified in Article 18 of the Law.

2. The Ministry of Development shall ensure that the Authorisation Holder is able to recover under the terms of the Transmission Control Agreement revenues sufficient to cover the costs specified in paragraph 1 of this Condition, taking account of such reasonable improvements in efficiency of operation as may be determined by the Ministry.

3. Where provided for in the Transmission Control Agreement, or where the Minister of Development considers it appropriate, the Ministry of Development may adjust the revenue recoverable under this Condition during a financial year to take account of changes in the costs of operation or of construction and the commissioning of new assets.


The Authorisation Holder shall ensure that in it complies with all codes relevant to its role as a transmission owner, and shall in particular:

(a) remain a participant in, and comply with, the Power Exchange Code from [ • 2001] (the Effective Date for the purposes of the Power Exchange Code) and any other code or arrangement that may replace it by process of law;

(b) comply at all times with all relevant provisions of the Operating Code and the Distribution Code

32


relating to the inter-actions with the HTSO for the

DISTRIBUTION OPERATOR

Final Draft

17 October 2000


33

Note: This draft contains only those Authorisation conditions that are considered necessary to ensure compliance by the Distribution Operator with the Operating Code and other relevant obligations to the HTSO, and the final form of these will be dependent on decisions of RAE and the Ministry. In addition, RAE and the Ministry may wish to include additional conditions covering other matters.







[PPC Distribution SA] (the Authorisation Holder) is hereby authorised to operate the Network and distribute electricity in Greece, and is granted exclusive rights of ownership and development of the Distribution System under the terms of the Law.

Condition 4. Confidentiality

The Authorisation Holder shall ensure that any information that it collects or has access to during the course of activities covered by this Authorisation is not published or made available to any other party where the Authorisation Holder has reason to believe that the information is confidential. The Authorisation Holder shall in particular ensure that information on the use or intended use of the Distribution System by Generators or


34

Suppliers is not provided to any other Generator or Supplier, including [PPC Generation, PPC Transmission, or PPC Supply/its Related Companies].


The Authorisation Holder shall ensure that it complies with all codes relevant to its role as a distribution operator, and shall in particular:

(a) remain a participant in, and comply with, the Power Exchange Code from [ • 2001] (the Effective Date for the purposes of the Power Exchange Code) and any other code or arrangement that may replace it by process of law;


authorisation conditions for: htso, suppliers, generators ... authorization/authorisations.pdf ·...

Documents