PPC renews €700m public service compensation quest

The main power utility PPC has once again tabled an older unsatisfied demand for the return of a big public service compensation (YKO) amount worth about 700 million euros and concerning the year 2011 at a series of meetings with RAE, the Regulatory Authority for Energy, energypress sources have informed.

PPC’s effort to convince the authority of a return of this amount, which the power company has been deprived of based on a related law, is being considered by the authority. Officials at RAE are now apparently admitting PPC has been treated unfairly on this claim in the past.

The energy authority’s endorsement alone would not be enough for PPC to have the YKO amount returned. The government would have to push through a legislative amendment.

A return of this YKO amount to PPC would serve as a lifeline for the utility, currently seeking a cashflow boost.

Any YKO entitlement for PPC would need to be covered by consumers via electricity bills, as public service compensation is a regulated charge. This could bring the national budget into the picture for a lump sum payment to PPC.

Such a development would make life easier for PPC, facing a 350-million euro bond payment in May.