Losses in the Transmission System occur due to the conversion of electricity into heat on account of both the electrification of the equipment and the distance which energy must cover. As a result, more electricity is required to be generated than is ultimately absorbed by consumers.

Pursuant to Chapter 17 of the amended Balancing Market Regulation, which was approved by RAE Decision 1357/2020 (Gazette Β’ 4516/14.10.2020 (in Greek)),  the coverage of these quantities of energy through the deposit of “Orders with Price Acceptance and Priority of Execution” in the Day-Ahead Market and/or in the Intraday Market and/or through the Energy Forward Market and/or through contracts concluded after a tender.

The Greek TSO calculates the real ESMIE Losses and calculates the charge/credit for the Clearance of Deviations of these Losses. Then recovers the total cost of the ESMIE Losses through the separate Premia Account as defined in Article 93 of the Balancing Market Regulation.

The Losses of ESMIE are estimated based on the “Methodology for Calculation of ESMIE’s Losses”, which was approved by RAE Decision 953/2020 (Gazette Β’ 2926/17.07.2020 (in Greek)). The Greek TSO uses the above methodology to calculate the hourly forecast of ESMIE Losses to be purchased in accordance with the above.