The Mytilineos corporate group has announced it will sign a seven-year agreement (2014-2020) with PPC, the main power utility, for electricity supply to the corporate group’s Aluminium of Greece, following a proposal’s approval by the power utility board. The agreement ends a long battle, including legal action, between the two sides over industrial tariff levels.
The agreement is the result of intensive negotiations over many months by both sides and ends, for good, a long-running confrontation between PPC and Aluminium of Greece over electricity tariff levels for the industrial enterprise, the Mytilineos group announced in a statement.
Negotiations were held amid a constructive and positive climate that sought to ensure the financial interests of both corporations, reach a consensual settlement for energy market problems, and enhance Greek industry’s level of competitiveness, the statement added
The Mytilineos corporate group, in the statement, expressed its satisfaction for the specific agreemement, noting it recognizes the unique high-level consumption patterns of Aluminium of Greece, while also bolstering PPC’s cash flow situation amid difficult times.
The corporate group has been committed to supporting PPC as an electricity market would not exist without the utility, the corporate group’s statement added.
The Mytilineos corporate group will soon provide PPC with a 100 million amount, without any interest charges, for electricity consumption, as has been repeatedly made clear by the Mytilineos group’s leadership at shareholder meetings and in public remarks.
The agreement also specifies that Aluminium of Greece will provide PPC with a 30 percent deposit of annual electricity amounts as a deposit payment at the beginning of each year.