PPC’s ‘uncertain future’ may require additional measures

A main power utility PPC annual report and certified auditor EY have both warned of an uncertain future for the utility that may require additional protective measures.

Reduced sales, as well as elevated losses and debt have increased the sustainability risk concerning PPC’s business activities, EY noted.

The auditor did not go as far as to warn of a bankruptcy risk at PPC but noted that various measures already taken will ensure the company’s future for the next twelve months. Additional measures, however, could be needed if CO2 emission right costs continue to rise, the auditor stressed.

The absence of cost-recovery mechanisms combined with a continued cash flow reduction and short-term liabilities that exceed short-term demands has left the company exposed to the possibility of sharp price increases, internationally, for CO2 emission right costs and wholesale electricity, PPC’s board noted in its annual report. Additional measures will be needed if such developments take place, the report added.

CO2 emission right costs yesterday struck a new high of 27.38 euros per ton.