Hellenic Petroleum (ELPE), until now receiving its high-voltage electricity from power utility PPC, appears set to end this association to establish a new supply deal with energy firm Elpedison, the petroleum group’s own 50-50 joint venture with Italy’s Edison.
If this move is confirmed, Elpedison’s retail market share will make a gain to nearly 1.5 percent.
PPC, currently involved in talks with industrial consumers for new high-voltage supply deals until 2023, is likely to lose another big producer, sources informed, without elaborating.
Last month, the power utility officially reached a supply agreement with Aluminium of Greece, a member of the Mytilineos group, the final deal between the two enterprises following a 60-year association.
Barring one case, in which considerable ground still needs to be covered, PPC’s other negotiations will industrial consumers are believed to be nearing agreements, sources informed.
PPC and the industrial consumers still need to agree on the extent of a tariff increase, expected to be set at approximately 20 percent. The new agreements are not expected to offer consumers discounts for punctual payments.
Other details being discussed include how the respective profiles of industrial consumers will influence tariff agreements. Take-or-pay clause details are also still being negotiated.
This round of deals between PPC and industrial consumers will be the last involving fixed tariff agreements. From 2023 onwards, industrial consumer supply agreements with PPC will be subject to floating rates pegged to wholesale market costs.
Conditions for power purchase agreements (PPAs) between industrial consumers and RES producers are expected to have ripened by 2023. A related energy exchange platform facilitating such agreements is expected to be ready within 2022.