Various PPC unit sell-off issues holding back local players

As the market test held for the main power utility PPC’s bailout-required sell-off of lignite units, representing 40 percent of ts lignite capacity, gradually approaches completion, the reactions of major Greek energy groups should be interpreted as firm positions.

The market test, supervised by the European Commission’s Directorate-General for Competition, is intended to measure the level of investor interest and clarify queries.

Two major local players indicated they are considering taking part in the sale but are remaining cautious as a result of concerns.

A source at an independent electricity producer expressed concerns over mines and licenses of units included in the sale package, noting that, in the country’s north, three mines linked to the Meliti 1 power station and a construction permit for Meliti II, these being Vevi, Klidi and Lofi, are currently closed.

As for the Megalopoli III and IV units in the Peloponnese, prospective investors have expressed concerns over license issues at associated facilities.

Production capacities, existing payrolls and financial data concerning units included in the sale are also being closely examined by prospective investors.

Some market sources noted that investors are being called upon to make crucial entrepreneurial decisions despite a lack of clarity on the Greek electricity market’s future look.