All questions

Regulation

i The regulators

The Greek energy market is regulated by the Ministry of Environment and Energy (MEE) and the Regulatory Authority for Energy (RAE).

The MEE is in charge of setting the country's energy policy and issuing secondary legislation, whereas RAE is an independent administrative authority, established on the basis of the provisions of Law 2773/1999, transposing Directive 96/92/EC on the liberalisation of the electricity market.

Although initially limited, compared with other jurisdictions, RAE's role was enhanced notably following the implementation of the third EU Energy Package by Law 4001/2011 (and Law 4425/2016). Following this reform, RAE is designated as the competent authority responsible for the security of energy supply and the granting, modification and revocation of all producer certificates and licences (although the authority to issue producer certificates will eventually be transferred to another administrative body pursuant to Law 4685/2020) required for the undertaking of energy activities, including the production, transmission, distribution, supply and trading of electricity and natural gas. RAE's other areas of competence include the approval of tariffs for non-competitive activities, the granting of exemptions to the third-party access regime, the certification of transmission system operators for both electricity and gas and the certification of distribution system operators for gas. When transposed into Greek law, the provisions of the EU Electricity Market Directive2 will further expand RAE's role and tasks.

Finally, RAE is entitled to conduct studies, publish reports and resolve on or propose the enactment of measures, especially with respect to the observance of competition rules. RAE cooperates closely with the Hellenic Competition Commission where this is necessary and it is accountable to the Hellenic Parliament. Its decisions and actions each year are reported in an annual report submitted to the Hellenic Parliament, the Minister for Environment and Energy, the Agency for the Cooperation of Energy and the European Commission.

ii Regulated activitiesElectricity

Under the Greek electricity sector legislation, the development, construction, commissioning and operation of any type of RES power plant (e.g., wind, solar photovoltaic, hydro, biomass) is governed by numerous and extensive administrative decisions and acts. More specifically, Law 3468/2006, as in force provides for a broad procedural framework for the licensing of renewable power production units in Greece. For a RES station to be constructed and operate, the following main licences need to be issued (unless exempted by a specific law provision):

  1. an electricity production licence or a producer's certificate;
  2. an approval of environmental terms (or an exemption therefrom);
  3. an installation licence; and
  4. an operation licence.

Several amendments to the RES licensing process are expected to follow the implementation of a draft law currently under public consultation.

Finally, for the supply and trading of electricity, a separate licence is required to be issued by RAE.

Conventional power plants (producing energy from coal, oil or natural gas) are also subject to a specific licensing process supervised by RAE.

Natural gas

Operations in the natural gas sector are heavily regulated in Greece and licences are required to own and manage an independent natural gas transmission system and carry on the activities of distribution and supply of natural gas. These licences are issued by RAE upon application by the interested party. In certain situations (e.g., if a transmission system serves a public interest, a distribution grid is subsidised by domestic or EU sources, or multiple applications are to be submitted for a particular area), a tender process may need to be launched by RAE to grant the necessary licence.

The Licensing Regulation3 covers the type and the content of applications for the grant, amendment and revocation of the following licences, which are required to conduct the relevant natural gas activity:

  1. an independent natural gas system licence;
  2. an independent natural gas system operator licence;
  3. a natural gas distribution network licence;
  4. a natural gas operation licence; and
  5. a natural gas supply licence.
iii Ownership and market access restrictionsElectricityPower supply and trading

Trading and supply licences can only be granted to persons:

  1. seated in the EU or the European Economic Area;
  2. seated in a Member State of the Energy Community;
  3. seated in a country that is party to bilateral agreements with either the European Union or Greece; or
  4. that are legal entities with a branch in Greece.
Natural gas

The National Natural Gas Transmission System (NNGTS) Users Registry Regulation4 and the Natural Gas Licensing Regulation5 allow legal entities to apply for registration with the NNGTS users registry and to be granted gas supply licence respectively, provided that they are:

  1. seated in the EU or in the European Economic Area;
  2. a Member State of the Energy Community;
  3. a country that is party to bilateral agreements with either the EU or Greece; or
  4. a legal entity with a branch in Greece.
iv Transfers of control and assignmentsElectricity

According to Law 4685/2020, important changes in the shareholding structure of a licence or certificate holder, even if they result in a change of the entity designated for the funding of a project, will be subject to mere notification requirements, without triggering an obligation to amend the producer certificate or the production licence.

Natural gas

Changes in the legal form or the shareholding structure of a holder of a gas supply licence need to be notified to RAE for the purposes of amending the corresponding licence. As regards listed companies, the aforementioned requirement applies only in cases of a change of control.

Transmission system operators and distribution system operators

In compliance with the ownership unbundling rules for natural gas distribution system operators (DSOs) and gas transmission system operators (TSOs), any intended change in their shareholding structure needs to be notified and further approved by RAE, and the unbundling certification provisions of Law 4001/2011 shall apply. RAE has to be informed and grant its prior approval if:

  1. a person (individual or legal entity) acquires a shareholding in a DSO or TSO;
  2. the participation of an existing shareholder reaches or exceeds 20, 33 or 50 per cent;
  3. the DSO or TSO becomes a subsidiary of a shareholder because of a change of a shareholding participation or change of control; or
  4. there is a change in its legal form.

For listed companies, an amendment application shall be submitted in the case of a change of control within the meaning of Article 3 of the EC Merger Regulation.6 If the change in the corporate or shareholding structure results in a change of control that falls under the procedure of preventive control of concentrations under Article 5 of Law 3959/2011, the licensee shall also submit to RAE a copy of the decision of the Hellenic Competition Commission on the notified concentration.

Similarly, the electricity transmission system operator (ADMIE)7 has the obligation to notify RAE, in compliance with the applicable ownership unbundling rules, any intended change in its shareholding structure or a change of control, underpinned also by adequate reasoning for continuous compliance with a number of other obligations, including those related to the security of supply.