PPC persisting with proposal for sale of new retail firms

Despite certain legal complexities, the main power utility PPC has not abandoned a plan entailing the establishment and sale of new retail electricity firms as a means of reducing its still-dominant market share.

The utility’s legal team has forwarded a proposal to the energy ministry which, in turn, will decide whether this PPC plan will be further pursued.

PPC views this plan as a tool that could replace the NOME auctions, introduced last October, as an alternative tool for lowering its market share. This route has already been shunned by the country’s lenders but PPC insists on its validity as a way of contracting the utility’s market share to the extent required by the bailout terms.

Greece and the country’s lenders have agreed on a term that would reduce electricity amounts offered through the NOME auctions if the bailout’s market share contraction targets set for PPC are exceeded.

NOME auctions were introduced in Greece as a means of offering third parties access to PPC’s lower-cost lignite and hydropower sources.

Price change protection for customers belonging to any of the new PPC retail firms that could be carved out and offered to rival companies is one issue concerning officials. Also, it remains unclear as to how customers belonging to these new firms could be stopped from switching to suppliers of their choice during the sale procedure, which would leave buyers with fewer than expected clients.