Industrial consumers, PPC set for legal battle over pricing policy

An ongoing dispute between medium-voltage industry and PPC, the Public Power Corporation, over the former’s push for lower electrity rates, appears set to develop into a lengthy legal process.

The long battle can be expected as, firstly, law suits filed by PPC against RAE, the Regulatory Authority for Energy, for older industry-related decisions imposed by the authority on the utility, remain pending and still need to be resolved. Industrial consumers will support RAE in these cases. Secondly, law suits filed by large-scale industrial consumers against PPC over a series of bilateral issues concerning the utility’s pricing policy, such as Public Service Compensation surcharges (YKO) levied on their bills over recent years, are expected to soon proceed in court.

Industrial consumers appear set to intensify their actions, through legal procedures, against PPC as recent negotiations are not expected to produce results. As energypress has reported, the majority of major industrial consumers have forwarded written requests to PPC in a bid to secure one-on-one invoicing policies based on the individual energy profiles of companies. The industrial consumers are also pushing for lower power rates, based on the lower production costs currently enjoyed at PPC as a result of recent wider sector developments, such as the plunge in crude oil prices. PPC’s initial reaction strongly suggests that the utility does not plan to take any immediate action.

As for the legal dispute between PPC and RAE, it should be reminded that PPC has questioned, in court, the legality of a series of decisions imposed on the utility by the energy authority. RAE had distinguished regulatory violations by PPC in matters concerning the latter’s pricing policy for industrial consumers. RAE, as a result, obligated PPC to revise its pricing policy and issue one-on-one invoices to major industrial consumers, while also imposing a hefty 4.4 million euro fine on the power utility for its violation of regulatory obligations and abusing its dominant position in matters concerning electricity supply. The action was taken by RAE after the law office Metaxas & Associates, representing industrial consumers, filed charges against PPC.