EC: PPC tariff hikes needed for cost recovery, competition

The still-dominant main power utility PPC needs to increase electricity tariffs to improve cost recovery and its financial standing and also enable rivals to make market share gains, the European Commission has noted in its third post-bailout report on the Greek economy.

The report questions how long PPC can maintain its company size based on its current pricing policy.

It also condemns PPC’s lower-priced tariffs for underprivileged households, noting these are leading to market distortions.

The Brussels report salutes PPC’s recent decision to reduce its punctuality discount for consumers paying their electricity bills on time, noting this decision will boost the utility’s earnings and help open up the market for competitors.

It also makes note of a 20 percent increase in unpaid electricity bills by PPC customers switching suppliers.