The Hellenic Electricity Distribution Network Operator (HEDNO S.A.) is a public limited company, a subsidiary of PPC SA, which is its sole (100%) owner. Established by virtue of Law 4001/2011, which incorporated the provisions of Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 into Greek legislation “On common rules for the internal market in electricity and repealing Directive 2003/45/EC and Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 ". This Directive imposes the legal and operational separation of Transmission and Distribution operations from vertically integrated electricity companies such as PPC.
Pursuant to the above law, two distinct competencies are conferred to HEDNO SA: the competency relating to the management of the Hellenic Electricity Distribution Network (HEDN), and the competency concerning the management of the markets of non-interconnected islands.
Α. Regulatory Framework governing competencies concerning the management of the HEDN
HEDNO S.A. is responsible for the development, operation and maintenance of the HEDN under economically advantageous terms and in accordance with the Management License, so as to ensure its reliable, efficient and safe operation, taking due account of the environment and energy efficiency, as well as ensuring in the most cost-effective, transparent, direct and non-discriminatory way, access to the HEDN for Users (Consumers, Provider) and Suppliers in order to carry out their business operations.
The operation of distribution network management is a natural monopoly in the area where it runs as there is no competition. For this reason, these business operations are supervised and regulated by the independent Regulatory Authority for Energy (RAE). Regulating is achieved by approving the revenue that is allowed from such operation, while objectives are set for the improvement of both customer service and the efficiency of the company’s operation, providing incentives for their achievement.
In addition to Law 4001/2011, which outlines the operation, development, maintenance and access of users to HEDN, the main Regulatory text which defines the above is the "Hellenic Electricity Distribution Network Code", which was approved by virtue of Decision 395/2016 reached by RAE. 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.
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 Manuals already approved by the RAE, which have been published and are in force, are the "Manual of Power Theft", which was approved in pursuance of Decision 236/2017 and the "Manual on Measurement Management and Regular Clearing of Network Providers", which was approved by Decision 404/2015.
In the context of improving the services provided to Consumers by the Hellenic Electricity Distribution Network Operator, the RAE has approved a Program called “Guaranteed Services to Consumers” by virtue of HEDNO’s Decision 165/2014.
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:
- The "Management License of the Hellenic Electricity Distribution Network Operator (HEDN Management License)" granted to HEDNO S.A. by virtue of Decision 83/2014. This license also covers any future extension of the HEDN.
- The "Terms and limitations of the Exclusive Ownership License of the Electricity Distribution Network (Ownership License) of PPC S.A.” granted by virtue of Decision 82/2014 to PPC SA because the ownership of HEDN remains solely with PPC. This license also covers any future extension of the HEDN.
The "Approval of the Annual Cost 2017 for the Hellenic Electricity Distribution Network Operator” by virtue of Decision 454/2016.
The "Use Tariffs of the Hellenic Electricity Distribution Network (HEDN)" by virtue Decision 455/2016 approving Use Rates (Unit Charges) based on the 2017 Required Income.
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.
With regard to the implementation of the Non-Interconnected Islands Electrical System Management Code, RAE has approved the “HEDNO S.A. Infrastructure Implementation Action Plan in accordance with Decision 2014/536/EC/14.08.2014 of the European Commission”.
In addition, 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.
C. HEDNO S.A. Compliance Program
Pursuant to Law 4001/2011, HEDNO S.A. has drawn up and is implementing a Compliance Program, which has been approved by RAE by virtue of Decision 678/2014. This Program lists measures taken to exclude any discriminatory behavior, discriminatory corporate practices and distortion of competition in the exercise of its responsibilities.