Power utility PPC is applying pressure on all fronts to secure a public service return from 2011 following an energy ministry decision to not include a related amendment in a draft bill, causing confusion as to if and how the payment, estimated at 250 million euros, can proceed.
The energy ministry excluded a related amendment from a draft bill submitted to parliament late last week, ahead of Parliament’s unexpected early closure ahead of snap elections on July 7, spreading panic at the power utility.
PPC is now urging RAE, the Regulatory Authority for Energy, to bypass Parliament on the matter, stressing the authority is legally covered to proceed with the YKO payment without legislative backing.
RAE has recognized PPC’s right for an YKO return, but has slashed an initial power utility demand for an amount of between 650 to 700 million euros to about 250 million euros.
The prospective loss of this payment is a major cause for concern at PPC, whose cash flow and financial results will be negatively impacted. PPC is preparing its first half results, which must be published by law.
This development also promises to have a knock-on effect on the wider energy market. Other market players are waiting for PPC to make payments for various obligations so that, by extension, they may receive amounts owed by operators.