The main power utility PPC’s board, seeking to offer incentives that could generate higher sale prices in its bailout-imposed sale of lignite units, is considering a term that would require the corporation to share half of any losses incurred by its Meliti and Megalopoli power stations, both included in a sale package representing 40 percent of the utility’s overall lignite capacity.
The idea, which, if adopted, will be included in the procedure’s sale and purchase (SPA) agreement, is expected to be discussed at an extraordinary meeting of highly-ranked PPC officials on Monday.
PPC would share half the losses for a two-year period following the sale, while an upper limit equivalent to 10 percent of the sale price of power stations would be applied, according to sources. Supposing a power station is sold for 300 million euros, PPC would be liable for shouldering up to 30 million euros of losses.
The Greek power utility’s loss-sharing offer is below a 70-30 arrangement requested by prospective buyers. However, it does illustrate an understanding, by PPC, that investors will not be willing to dig too deep into their pockets for the acquisition of lignite units given the EU’s strict decarbonization policy, making such investments less attractive prospects.