PPC announces tender to hire debt collection consultant

The main power utility PPC has announced a tender seeking a consultant to offer specialized services for the utility’s collection of unpaid receivables, estimated to be worth 2.2 billion euros, according to data provided by PPC last month.

Affected by a poor cash flow, PPC is looking to implement an ambitious debt collection effort and possibly establish securitization arrangements for part of the debt. The utility has prepared a 12 million-euro budget for the endeavor.

Tasks to be taken on by the winning bidder include developing an unpaid receivables management strategy, examining securitization prospects, designing an implementation, monitoring and assessment plan for the collection effort, supporting its activation, and taking on a selected category of PPC customers with arrears.

Though collection methods to be applied are not detailed in the tender’s announcement, as these will be designed by the winning bidder, they are expected to include a focus on larger-scale consumers, to be subject to more aggressive collection practices; the establishment of specialized call centers; as well as increased pressure, including electricity supply cuts for debtors owing amounts of over 3,000 euros, a category concerning over 500,000 customers, according to state-controlled PPC chief executive Manolis Panagiotakis.

Attempting to collect unpaid receivables from debtors owing smaller amounts of about 500 euros will be a trickier task entailing more political cost. Some 1.2 million PPC customers belong to this category and owe a total amount of 120 million euros.

Tender participants must submit their offers, accompanied by letters of guarantee worth 240,000 euros, by June 16. Bids will be opened for assessment ten days later.