HEDNO S.A.

The Hellenic Electricity Distribution Network Operator (HEDNO S.A.) is a public limited company, a subsidiary of PPC SA. It was set up under Law 4001/2011 (GG 179/Α’/22-08-2011, as in force), which incorporated into Greek Law the provisions of Directive 2009/72/EC of the European Parliament and of the Council. This Directive imposes the legal and operational separation between Transmission and Distribution from Vertically Integrated Electricity Companies, such as PPC. Directive 2009/72/EC has been replaced by Directive  2019/944/ΕΕ of the European Parliament “on common rules for the internal market for electricity”, which was incorporated into Greek Law with laws 4986/2022 (GG 204/Α΄/22-10-2022, as in force) and 5037/2023 (GG 78/Α’/28-03-2023).

Pursuant to the Law 4001/2011, two distinct responsibilities are given to HEDNO SA:

  • Operating the Hellenic Electricity Distribution Network (HEDN) and
  • Managing the Markets of the Non-Interconnected Islands (NII).

According to Law 4508/2017 (GG 200/Α’/22-12-2017, as in force), HEDNO SA is also appointed as the single operator of the Utility Services Special Account for the entire country.

From 30/11/2021 onwards, the Distribution Branch of PPC SA was absorbed by HEDNO SA and the latter undertakes a capacity as both an Owner of the Hellenic Electricity Distribution Network (Article 129 Law 4819/2021, as in force), and an Operator of the Hellenic Electricity Distribution Network (Articles 123 and 127 Law 4001/2011, as in force). The shared capital of HEDNO SA is owned at 51% by PPC SA and 49% by Macquarie Asset Management.

 

Α. Regulatory Framework governing the management of the HEDN

The operation of distribution network management is a natural monopoly in the area where it is performed as there is no competition. For this reason, these operations are supervised and regulated by the independent Regulatory Authority for Energy (RAE), now Regulatory Authority for Waste, Energy and Water (RAAEY). Regulating is achieved by approving the Allowed Revenue from such operation, while objectives are set for the improvement of both customer service and the efficiency of the company’s operation and the optimization of the quality of the delivered energy, providing incentives for their achievement.

In addition to Law 4001/2011, which makes provisions for the operation, development, maintenance and access of users to the HEDN, the main Regulatory text which defines the above is the “Hellenic Electricity Distribution Network Code”, which was approved with RAE decision  395/2016 (GG 78/Β’/20-01-2017). The content of the Code regulates the rights and obligations of the Hellenic Electricity Distribution Network Operator, as well as the rights and obligations of Network Users and Providers in addition to issues related to the development, operation, Network access, the services provided by the Network Operator and the financial reward thereof.

HEDNO S.A. is responsible for the development, operation and maintenance of HEDN under economically advantageous terms to ensure its reliable, efficient and safe operation, taking due care of the environment and energy performance, as well as securing the cost-effective, transparent, direct and non-discriminatory access of Users (Consumers, Providers) and Suppliers to HEDN for carrying out their business operations, in accordance with the Management License of HEDN (RAE Decision 83/2014) and the Ownership License of HEDN (RAE Decision 82/2014) as granted on the basis of the provisions of Laws 4001/2011 and 4819/2021 as in force and in accordance with HEDN’s Management Code.

The details of the implementation of the provisions of the above Code, as well as the necessary procedures and calculation methodologies required for its implementation, are set out in the Application Manuals which are an integral part of the Code. The published manuals that have been approved by RAE and are in force are:

As pert of the improvement of the HEDNO SA services provided to the Consumers, RAE approved with Decisions 1151Α/2019 (GG 1339/Β’/13-04-2020) and 1593Α/2020 (GG 2925/Β’/05-07-2021), the “Guaranteed Services to Consumers” of the Hellenic Electricity Distribution Network Operator.

At the same time, the regulatory framework is also governed by other important regulatory texts issued by the Regulatory Authority for Energy by means of relevant Decisions:

 

Β. Regulatory Framework governing the responsibilities of HEDNO SA as Non-Interconnected Islands Operator (NII)

Non-Interconnected Islands (NIIs) are the islands of Greece whose Electricity Distribution Network is not connected to the Transmission System or the Distribution Network of the Mainland.

The management of the Electricity Systems of the Non-Interconnected Islands, which includes the management of the production, market operation and the systems of these islands, is the responsibility of HEDNO S.A. and is carried out in accordance with the “Non-Interconnected Islands Electrical System Management Code”, provided for in Article 130 of Law 4001/2011, as in force.

For the implementation of the NII Electrical Systems Management Code, RAE approved with Decision 389/2015 the “Infrastructure Implementation Action Plan in accordance with Decision 2014/536/ΕΚ/14.08.2014 of the European Commission”.

The regulatory framework is also governed by other texts issued by the Regulatory Authority for Energy concerning the average variable cost of conventional production units in the NIIs, Utilities in the NIIs, Prices of hybrid power stations in the NIIs, etc.

For more information on the Regulatory Framework governing the management of NIIS please click here.

 

 C.European Regulatory Framework

The European Framework with which the Electricity Distribution System Operators must comply mainly includes the Regulations and Directives of the Package “Clean Energy for all Europeans” (Clean Energy for all Europeans package). This package was completed in May 2019 and contains 8 legal texts which aim at modernizing the European Framework on Energy Policy for facilitating the transition from fossil fuels to clean energy and to achieve the goals relating to less greenhouse gas emissions, as these were specified with the 12 December 2016 Paris Agreement.

The legal texts of the package concerning the operation of HEDNO SA are:
• Regulation 2019/943/ΕU,
• Directive 2019/944/ΕU on common rules for the internal market for electricity which was incorporated into Greek Law with laws 4986/2022 (GG 204/Α΄/22-10-2022, as in force) and 5037/2023 (GG 78/Α’/28-03-2023).
• Directive 2018/844/ΕU on the energy performance of buildings which was incorporated into Greek Law with law 4685/2020 (GG 92/Α΄/07-05-2020, as in force).
• Directive 2018/2001/ΕU on renewable energy sources which was incorporated into Greek Law with law 5037/2023 (GG 78/Α΄/28-03-2023) and
• Directive 2018/2002/ΕU on energy performance which was incorporated into Greek Law with law 4843/2021 (GG 193/Α΄/20-10-2021, as in force).

 

D. HEDNO S.A. Compliance Program

Pursuant to Law 4001/2011, as in force, HEDNO S.A. has drawn up and is implementing a “Compliance Program”, which has been approved by RAE with Decision 678/2014. This Program includes measures taken to exclude any discriminatory behavior, discriminatory corporate practices and distortion of competition in the exercise of its responsibilities.