The main power utility PPC has reached a deal with the Greek State for the settlement of electricity consumption arrears owed by the latter as well as reduced tariffs to be offered by the utility for civil sector electricity consumption in the current year.

According to sources, the Greek State has already paid PPC a sum of between 60 and 65 million euros, which covers roughly half the 120 million-euro total owed to the power utility.

The outstanding Greek State amount, concerning various public sector divisions, is expected to be delivered once details concerning each individual debtor have been inspected and verified.

The power utility and the finance ministry, representing the Greek State, also agreed on an advance payment for consumption in 2018 in exchange for reduced tariffs. This arrangement will also provide some cash flow relief to the power utility.

Besides a 15 percent discount offered by PPC to all punctual customers and a 6 percent discount offered to customers making advance payments, the Greek State will also benefit from a discount offered to industrial consumers for major-scale electricity consumption.

The arrangement agreed to will offer the Greek State a total discount of around 25 to 26 percent.

This means that the Greek State will be expected to make an advance payment of approximately 480 million euros for consumption in 2018, based on its consumption level in 2017.