PPC looking for new ways to collect unpaid receivables

The main power utility PPC’s follow-up payback program offer made last year to clients who missed paying installments through initial payback programs and, as a result, were disqualified, is due to expire this coming Tuesday with little success as few clients re-registered.

The upcoming expiry date for the follow-up offer, made by the utility in a bid to tackle its worrisome unpaid receivables problem, coincides with a maturing 100 million-euro bond.

It remains unclear whether PPC will renew the payback offer or resort to a more relentless approach and begin cutting electricity supply to consumers. To date, PPC has shown tolerance for overdue amounts not exceeding 1,000 euros.

Not too long ago, PPC’s chief executive Manolis Panagiotakis had noted the utility is neither trumpeting a plan to start cutting electricity supply nor engaging in social policy.

Driven by the maturing 100 million-euro bond, PPC recently made arrangements with the country’s four main banks to receive a 200 million-euro loan. However, its endorsement has been repeatedly postponed.

Should this loan not come through, PPC will most likely not be able to service the 100 million-euro bond maturing next Tuesday as well as another 400 million-euro bond that is set to mature in April.

According to data released by PPC last September, a total of 298,000 clients owing between 500 and 1,000 euros each, representing a total of 153 million euros, did not register for the payback program, offering settlement over 36 monthly installments.