The level of debt owed by the main power utility PPC to contractors working the utility’s mines in northern Greece has fallen to roughly 40 million euros from a level of 85 to 90 million euros not too long ago.

Though this decline is encouraging, PPC, facing major financial issues, still has a long way to go before resolving its debt issue with contractors.

The utility owes a total amount of between 100 and 120 million euros to market associates. Adding to this estimate the amounts owed by PPC to IPTO, the power grid operator and HEDNO, the Hellenic Electricity Distribution Network Operator, both utility subsidiaries, cranks up the utility’s debt level to 900 million euros, as PPC’s deputy chief Stavros Goutsos recently informed.

The increased electricity demand amid the recent energy crisis helped lessen the utility’s overaccumulation of lignite stock, offering some cash flow relief.

PPC’s ability to pay mine contractors struck a low about seven to eight months ago. Payment delays grew from three months to six months. By extension, these enterprises, based in the Ptolemaida and Florina regions, were unable to pay employees, which negatively impacted the local economies.