Power utility PPC appears set to cut its electricity supply to troubled Larco as the state-controlled nickel producer, PPC’s biggest debtor, has stopped making payments to the utility for quite some time now, breaching terms agreed to in February as a condition for sustained power supply.
The terms imposed on Larco by PPC had been approved by the nickel producer’s board at a meeting just four months ago.
PPC, also state-controlled, is expected to take action within the next few days that would result in a power cut for Larco if the producer stays put, power utility officials have indicated.
Though PPC would need to notify power grid operator IPTO, the supply cut could be implemented in a day, according to the agreement reached between PPC and Larco in February.
Other terms listed in the PPC-Larco agreement include a commitment for monthly cash payments of 2.5 million euros; Larco’s retreat from demand response mechanism (interruptability) rights; monthly supply of 24,000 tons of lignite from the Kozani area in northern Greece; as well as credit guarantees should Larco exceed specific consumption levels.
Larco’s debt to PPC was registered as having reached 309.8 million euros last December.