PPC lignite units sale to await country’s next administration

Prime Minister Alexis Tsipras’ announcement last night of a pre-election period leading to national elections expected on June 30 effectively ends any hope of an on-schedule completion of power utility PPC’s sale of lignite units.

Participants of the bailout-required disinvestment, which had been relaunched after an initial sale attempt failed to produce a result, were due to submit binding bids by tomorrow. But, given the political developments, the process will now need to be taken on by the country’s next administration.

Political landscape aside, the sale’s participants, troubled by unfavorable conditions,  have appeared unwilling to offer sizable amounts for the PPC units.

Had the PPC sale process not been interrupted by last night’s election announcement, its success would have depended on the government’s ability to handle the political cost of a low-priced sale.

The ongoing effort aiming to liberalize Greece’s electricity market will now most likely need to be re-examined along with a restructuring plan for PPC’s rebound as a sustainable enterprise.