Power utility PPC’s next major challenge, following a second securitization package of unpaid receivables, will be the privatization of fully owned subsidiary DEDDIE/HEDNO, the distribution network operator, a procedure expected to be pitched to prospective bidders towards the end of the year before a tender is launched in the first quarter of 2021.
A plan to sell a 49 percent stake with increased managerial rights remains intact, but officials are also considering to lower the stake. In addition, some thought is being given to offering DEDDIE/HEDNO buyers the stake through two rounds, but the basic plan, to offer 49 percent as one sale package, remains likeliest.
A new regulatory framework for DEDDIE/HEDNO will need to be approved over the next few months, and, in addition, the government must also fine-tune the privatization’s details.
A leadership renewal at RAE, the Regulatory Authority for Energy, responsible for the operator’s new regulatory framework, has, not unexpectedly, delayed a series of matters on the authority’s agenda, including the new regulatory framework for DEDDIE/HEDNO. It was forwarded for consultation until June 19.
Revisions concerning the operator’s permitted earnings were proposed, while a four-year period is planned for the new framework, from 2021 to 2024, with an option for a four-year extension until 2028.
The new framework is expected to include bonuses for objectives achieved at the distribution network operator and vice versa. The DEDDIE/HEDNO business plan includes goals such as the replacement of conventional power meters with smart meters, as well as operating cost and electricity theft reductions.