The European Commission has rejected a sale and purchase agreement (SPA) term entailing a 50-50 share of profits or losses with buyers of lignite units included in the main power utility PPC’s bailout-required disinvestment of lignite units, noting the arrangement does not comply with Greece’s commitments and European Commission Directorate-General for Competition regulations.

PPC’s board was set to stage an extraordinary meeting yesterday to approve the disinvestment’s SPA terms but needed to cancel the session as a result of the rejection by Brussels of the profit and loss sharing proposal.

The European Commission has now given Greece’s energy ministry a few more days, until November 30, to find a solution. The PPC board was notified of the news in a letter delivered yesterday by energy minister Giorgos Stathakis, who requested the planned session’s postponement until the matter is resolved with the Directorate-General for Competition.

The profit and loss sharing plan, envisaged for a six-year period following the sale of lignite units, was incorporated into the sale package as an incentive for higher prices by bidders.