The main power utility PPC plans to have hired a team of legal advisers by the end of this month for support in the utility’s plan to carve out and sell 7 percent of its clientele – roughly 400,000 to 500,000 customers – to rival electricity suppliers.
The power utility’s objective, through this initiative, is to meet bailout-required market share contraction targets on its own terms, not those specified by the bailout-required NOME auctions, and also offer needed support for the troubled corporation’s sustainability.
The recently introduced NOME auctions aim to break PPC’s dominance by offering other traders access to the utility’s low-cost lignite and hydropower sources.
In its own words, the utility has described its split-and-sale initiative as “urgent and imperative for PPC’s sustainability” and therefore a “swift procurement procedure [for the legal advisers] needs to be pursued.”
The legal team will play a crucial role in the overall process as it will be charged with identifying possible legal issues and proposing legislative and regulatory revisions that could be brought forward by PPC.
In addition, the legal advisers will be expected to draft the agreements to be signed between PPC and prospective investors and also offer support to the corporation in negotiations with the energy ministry, market authorities and the European Commission. The legal team will also need to provide guidance to the utility on details concerning the stock exchange and capital market commission.
According to PPC, the split-and-sale initiative will require at least eight months to be completed, once a legal team has been appointed. PPC has budgeted 140,000 euros for the legal team’s services.
Speaking just days ago at a ceremonial event for the New Year, PPC’s chief executive Manolis Panagiotakis noted the utility’s intention is to establish two new companies that will include clients of all categories.