The Greek government and state-controlled main power utility PPC are extremely close to reaching an agreement with the country’s lenders on the content of the utility’s bailout-required sale package of lignite units, sources have informed.
A finalized list needs to be established so that a market test, to measure investor interest, is officially launched.
At this stage, it appears the finalized list could be established on Thursday during a teleconference to be held between Greek officials and lender representatives, its purpose being to resolve pending issues.
PPC’s two ageing Amynteo lignite-fired power stations appear to be out of the picture. Taking this into consideration, the European Commission’s Directorate-General for Competition believes Megalopoli III and IV need to be included in the PPC sale package. PPC has strongly reacted against the prospect of selling Megalopoli IV, one of the corporation’s most modern and newest units. However, the utility appears willing to let go of Megalopoli III, whose lifespan is shorter.
PPC’s reactions are believed to be the main reason why the negotiating sides have yet to deliver a finalized sale list.
Despite the utility’s objections to the inclusion of Megalopoli IV on the sale list, the government, judging by the latest developments, appears willing to accept the inclusion of both Megalopoli units.
Finalization of the PPC sale list stands as a key energy sector issue that needs to be resolved if the bailout’s third review is to be concluded.