CAT mechanism talks next week, crucial for PPC units sale

Greek energy ministry officials and European Commission authorities are scheduled to meet November 14 and 15 in Brussels to discuss the country’s new CAT mechanism plan, crucial to the outcome of the main power utility PPC’s ongoing bailout-required sale of lignite units, including the Megalopoli and Meliti power stations.

The incorporation, into the mechanism, of CAT remuneration for lignite-based electricity generation, as is hoped for by Greek officials, would boost investor interest and the value of bids to be submitted for the PPC units.

The Greek delegation, to include RAE (Regulatory Authority for Energy) representatives, will be headed by the energy ministry’s secretary general Mihalis Veriopoulos.

The energy ministry has forwarded its CAT mechanism proposal but this will be the first face-to-face meeting with European Commission officials on the matter.

The uncertainty as to whether Greece’s new CAT mechanism plan will be approved by Brussels was a key factor behind the latest deadline extension for binding bids in the PPC disinvestment.