State Grid Corporation of China (SGCC) has filed a complaint with the European Commission after being barred by Greek power utility PPC from the sale of a 49 percent stake in its subsidiary DEDDIE/HEDNO, the distribution network operator, over conflict-of-interest concerns.
The Chinese firm, a strategic partner of Greek power grid operator IPTO with a 24 percent stake, has forwarded a letter to Brussels claiming PPC’s block breaches EU law.
According to the sale’s terms and conditions, any company with direct or indirect control of IPTO or any of its subsidiaries cannot participate in the DEDDIE/HEDNO sale because of conflict-of-interest issues.
SGCC’s Brussels initiative highlights the Chinese company’s strong interest in acquiring a stake and role in the distribution operator’s network. The prospective installation of 7.5 million digital power meters at private properties around the country is the major draw for SGCC, sources noted. DEDDIE/HEDNO also plans to digitize and upgrade its outdated network.
PPC has extended its first-round expression of interest deadline to February 19. A considerable number of companies seem intent to participate.