The main power utility PPC’s retail electricity market share fell to 82.8 percent in March, according to energypress sources, from 84.08 percent in February, 84.9 percent in January and 85.4 percent in December.
Though PPC has lost 2.6 percent of its market share in three months, the rate is too slow if the power utility is to reach its bailout market share contraction target of 62.24 percent by the end of the year.
If this contraction target is to be achieved, then PPC’s market share loss will need to average 2.28 percent per month from here on. The utility’s 2.6 percent loss over the year’s first quarter is way too slow.
Looking further ahead, PPC’s bailout target of a market share contraction to 49.24 percent by the end of 2019 seems a highly unlikely prospect.
PPC’s introduction, in July, 2016, of a 15 percent discount for customers paying their electricity bills on time has been a major factor in slowing down the dominant power utility’s market share loss. This move forced other electricity suppliers to offer similar discounts, despite contravening their business plans.
For quite some time now, PPC has prefered to incur losses, as reflected by the company results, and stop independent suppliers from gaining ground. PPC has been successful in doing so, but it remains to be seen what the consequences will be should the power utility fail to reduce its market share to less than 50 percent by 2020. As the representative of the state-controlled power utility, the government will also be responsible for failing to meet this bailout term.
Without a doubt, new solutions will need to be adopted, even if these hail from the past.
Greece’s new super privatization fund, which now controls the Greek State’s stake in PPC, is considering selling a package of existing customers. The power utility’s CEO, Manolis Panagiotakis, whose term at the helm was renewed just days ago, has been asked to examine this alternative, energypress has been informed.
Also considered in the past, this option would entail selling a package containing 7 percent of existing PPC customers. The plan had been rejected by the energy ministry.