IPTO, “Little PPC” sales assisted by terms in gas reforms bill

A series of revisions to facilitate the privatization of IPTO, Greece’s Independent Power Transmission Operator – locally referred to as ADMIE – and part-privatization of PPC, the Public Power Corporation, have been included in a draft bill for gas market reforms, now forwarded for public consultation.

The revisions primarily concern tax matters and processing issues for the sales, which could be interpreted as an effort being made by the government to accelerate the privatization of IPTO through the sale of a 66 percent equity share.

Among the issues included in the revisions with the aim of clearing the sale processes of obstacles, is the lifting of a ban on real estate transactions in areas bordering IPTO and PPC facilities. This measure also applies to shares or company stakes linked to real estate in areas concerning IPTO and PPC.

A PPC special reserve fund will also be established, which may be used to deposit funds raised by the IPTO privatization. The fund will not be taxed until distributed or capitalized.

Also, based on the revisions, the capital equity increase of any existing company or new company to take over PPC’s privatized 33 percent, dubbed “Little PPC”, will not be subject to capital gains tax.