Power utility PPC may seek a loan from the European Bank for Reconstruction and Development (EBRD) worth between 100 and 200 million euros to cover extraordinary needs seen emerging for both the utility and its subsidiary firm DEDDIE/HEDNO, the distribution network operator, as a result of the pandemic and consequent recession, still in the making.
The extent of the pandemic-related recession cannot yet be determined. Financial support from the EBRD, which has extended loans to PPC in the past, would bolster the power corporation’s cash flow and also provide a safety net for its subsidiary during these uncertain times.
PPC fears the distribution operator’s earnings, resulting from surcharges included in electricity bills, will drop by approximately 30 percent. A growing number of consumers are not meeting payment deadlines for electricity bills.
PPC is also preparing to launch a securitization initiative for unpaid receivables.