The main opposition New Democracy party has informed the European Commission of a three-stage rescue plan it has prepared for troubled power utility PPC and intends to implement if victorious in the July 7 snap elections, as was strongly indicated by the results of the recent European elections.
Losses incurred by PPC in 2018, followed by further losses in the first quarter this year, have placed the utility under the microscope at the DG Finance.
PPC’s broad debt exposure, the prospect of operating profit capsizing into losses, combined with the utility’s dominant market position, have sounded off the warning alarm in Brussels.
The first stage of the ND party’s rescue effort entails a revenue boost campaign through the collection of unpaid receivables, combined with cost cuts, and, primarily, the sale of lignite and hydropower units to private-sector enterprises through international auctions.
The second stage of the plan involves job cuts as part of PPC’s contraction into a smaller company that will end up holding less than 50 percent of the market. Voluntary exit and early pension plans will be offered to drastically shorten the payroll.
The rescue plan’s third stage entails the incorporation of a strategic partner, the objective being to steer PPC towards growth through broadened entrepreneurial activities, including expansion abroad and investments in the renewable energy and electric vehicles sectors.