The main power utility PPC is examining the prospect of reducing its 15 percent discount offered to customers for punctual payments of electricity bills in an effort to improve profit figures, especially its debt/EBITDA ratio, and secure loans at lower interest rates for new investments and company restructuring plans.
PPC appears to have informed the energy ministry of a plan to reduce this punctuality discount by half or even more to a level of around 6 or 7 percent.
The state-controlled power utility’s plan would need to be endorsed by the energy ministry. This could be tricky given the country’s gradual approach to the next elections. The government’s four-year mandate ends in October.
The power utility is also looking forward to the swift establishment of legal framework enabling the adoption of a CO2 emission right costs-related clause designed to increase electricity tariffs when CO2 costs exceed a certain limit and vice versa.
PPC has already reduced its net debt level and significantly restricted operating costs but revenue figures still need to be improved.
An improved debt/EBITDA ratio is necessary if PPC is to seek loans at competitive rates.