PPC cites unpaid receivables for delayed operator payments

The leadership of main power utility PPC, summoned to a hearing yesterday by RAE, the Regulatory Authority for Energy, has attributed its payment delays to electricity market operators, needed by the operators to cover RES production payments, to a cash flow problem prompted by the enormous amount of unpaid receivables owed to the utility by consumers.

PPC is behind on its payments to the IPTO and HEDNO operators, both utility subsidiaries, who, in turn, are unable to relay amounts to LAGIE, the Electricity Market Operator, which distributes payments to RES producers for their electricity output.

HEDNO, locally acronymed DEDDIE, which handles payments to RES producers on the non-interconnected islands, has been summoned to a hearing by RAE next week, while IPTO is expected to follow suit soon after.

RAE suspects that PPC may be withholding RES-supporting surcharges collected through electricity bills to finance its own concerns, including investment programs and payments to suppliers.