The main power utility PPC’s insistence on maintaining a dominant market position through performance-affecting strategies that have stifled the growth of independent rivals – including sizable electricity bill discounts offered to punctual customers – will be highlighted tomorrow when the utility posts some of its worst ever financial results, a common secret among market officials.
The government’s recent decisions to provide cash injections to make up for state-controlled PPC’s postponement of a bond issue plan for an indefinite period merely offer temporary relief for the next few months.
PPC has secured a cash injection of approximately one billion euros through the Greek State’s prepayment of the year’s electricity consumption, for a discount; a government decision in favor of a public service compensation (YKO) amount return to the utility for 2011; as well as a 200 million-euro bank loan. PPC needs to soon cover a five-year bond issued in 2014, to cost 350 million euros.
Tomorrow’s results will underline PPC’s falling revenue figures, market share losses, and need for swift business adjustments, even though the utility does not possess the appropriate tools to do so. They will also reiterate the Greek electricity market’s precarious situation and need for big decisions concerning PPC and the wider market.