PPC insists on greater public service compensation sum

The main power utility PPC insists on receiving a greater Public Service Compensation (YKO) retroactive payment, for amounts concerning 2012 to 2016, than the sum set by RAE, the Regulatory Authority for Energy.

Earlier this week, Prime Minister Alexis Tsipras, in a televised address, announced that PPC would receive – through the budget’s primary suplus – a public service compensation lump sum of 360 million euros, as was determined by RAE and accepted by the energy ministry.

However, the power utility is insisting on a 735 million-euro sum, covering 2012 to 2016, which it originally demanded.

In an announcement released yesterday, PPC expressed its satisfaction for the YKO lump sum it stands to receive, describing it, however, as a “partial payment”.

PPC’s chief executive Manolis Panagiotakis, while presenting the utility’s first-half results in late September, noted that a solution would be pursued either through dialogue or legal action.

Meanwhile, PPC is preparing for a December 5 hearing at the Council of State, Greece’s Supreme Administrative Court, where its challenge against NOME starting prices set by RAE will be examined. PPC wants starting prices lowered. In the lead-up to this hearing, PPC has intensified its stance by adding new material to the portfolio of its legal challenge.

Commenting yesterday on the existing NOME terms, PPC’s deputy chief Giorgos Andriotis noted the utility is being forced to sell large electricity amounts below cost to independent suppliers so that the latter may compete against PPC.

NOME auctions were introduced in Greece just over a year ago to offer independent suppliers access to PPC’s low-cost lignite and hydropower sources.