On 1 November 2020 Greece reached a significant milestone by launching the European Target Model for the operation of its wholesale electricity market. Initial implementation was reported as being successful. However, as early as December 2020 the Regulatory Authority for Energy (RAE) announced it would investigate the prospect of setting a cap and floor for the balancing market after observing especially volatile and high prices. Price spikes are not necessarily a reason for concern. While regulatory interventions have been required in the wholesale electricity markets of other EU countries and the UK, these need to be carefully evaluated because they have the potential to hinder competitive and smooth market operation, especially in a newly established market. READ ECA’s INSIGHT HERE