Gov’t to seek milder PPC market share reduction targets

The energy ministry will seek to soften the main power utility PPC’s bailout-required retail electricity market share contraction targets as part of upcoming negotiations for the program’s fourth review, energypress sources have informed.

A joint appraisal, by the Greek government and country’s lenders, detailing the impact on the local retail electricity market of NOME auctions is, according to third review terms, expected to be finalized by the end of this month.

The appraisal can be expected to render the NOME auctions – introduced nearly a year and a half ago to offer independent suppliers access to PPC’s low-cost hydropower and lignite sources – as an ineffective tool. PPC’s retail market share has shed just a few percentage points and remains dominant at 85 percent.

The power utility’s resilience is expected to trigger new developments and demands for additional measures, by the lenders, concerning the effort to reduce PPC’s market share.

Given the government’s intention to try and soften PPC’s market share contraction targets, fierce negotiations can be expected.