PPC seeking consultant for collection of debt, at €2.4bn

Feeling the pressure of its alarming unpaid receivables situation, the main power utility PPC, unable to implement an effective debt collection effort, has resorted to seeking a consultant for specialized services. A tender announced by the utility earlier this week highlights that overdue amounts owed remain at “unusually high levels of approximately 2.4 billion euros.”

The consultant to take on the PPC project will be required to design a detailed plan for improvement of PPC’s clientele management, with emphasis on clients owing overdue amounts. Besides preparing a plan, the consultant will also assume the task of supporting PPC’s collection effort, meaning it will need to operate as a debt collection company. The consultant will be granted access to the utility’s data bank and expected to seek further details, including debtor profiles.

The consulting firm will be awarded a 12 million-euro sum for its efforts – if objectives are achieved. A commission, ranging from 8 to 12 percent, on debt amounts collected will also be included in the remuneration package.

The consultant will be expected to resort to extrajudicial action as a first step in the collection strategy, setting two-month deadlines, before legal action is taken, if needed, following PPC approval.