PPC boss term to be renewed, industrial tariff ambiguity grows

The tenure of main power utility PPC’s chief executive Manolis Panagiotakis, recently temporarily extended for a few months, will be given a full-term extension to offer stability and clarity at the firm’s helm and facilitate the endorsement of big decisions, namely the imminent establishment of two new subsidiaries to carry lignite assets in the north and south for the utility’s bailout-required sale of lignite power stations and mines.

The decision, a surprise development, was announced yesterday along with the agenda of the next PPC general shareholders’ meeting, rescheduled for an earlier date, June 7. The CEO’s new term is planned to be endorsed at this meeting, according to sources.

On the contrary, the situation remains unclear for industrial sector tariffs. The endorsement of new tariffs negotiated between PPC and high-voltage industrial consumers was originally planned for the next shareholders’ meeting, on June 7, but has now been postponed for  a subsequent PPC shareholders’ meeting, to he held in late June.

The new subsidiaries linked to the sale package of lignite units are also planned to be endorsed at the late-June session.

As a result of this delay, energy costs consumed by the industrial sector from March onwards are unclear.

It is feared this uncertainty will have a wider impact on production planning, orders and industrial-sector investments.

Industrial sector officials have questioned the need for bilateral electricity tariff agreements to be approved at PPC shareholders’ meetings, seen as a code violation. Industrial sector officials have reacted and threatened to take action against PPC.