Power utility PPC’s decision to further extend its negotiating period with industrial producers for new high-voltage tariff agreements is futile, EVIKEN, the Association of Industrial Energy Consumers has suggested in a statement, indicating the utility has no interest to compromise.
EVIKEN contended PPC’s reluctant tactics are stalling its negotiations with high-voltage customers.
PPC officially informed industrial customers of its decision to extend the negotiating period for new high-voltage tariff agreements until June 15, but, even so, as of today, has unilaterally revised existing terms, greatly reducing punctuality and advance-payment discounts offered to this consumer category.
These revisions promise to increase energy supply costs for PPC’s industrial customers by levels of between 4 to 12 percent, depending on respective profiles, according to estimates.
A preceding PPC extension for its negotiations with high-voltage customers, offering an additional two months, expired on February 28.
The power utility’s demands include increases that would result in energy-cost hikes of up to 40 percent, the cancellation of nighttime tariffs for steel industries, imposition of a clause linked with balancing market cost, as well as restrictions effectively obstructing industrial loads from market participation, the industrial energy consumers association noted in its announcement.
Despite the impasse prompted by its demands, PPC is now offering its industrial customers a new ultimatum in an effort to force them to accept unfavorable terms for new supply contracts, EVIKEN stated.
The key question is whether PPC ultimately wants constructive dialogue with industry to avoid a negotiation deadlock, which would be detrimental to all parties involved, EVIKEN noted.
The sector’s prolonged uncertainty over energy costs is hampering plans for production increases and new investments, greatly impacting the competitiveness of the country’s major producers, the association stressed.