PPC retail subsidiary offer to be ready around June, chief says

The main power utility PPC will be ready to stage a tender next month, or no later than July, offering investors a new subsidiary representing approximately 7 percent of the utility’s existing clientele, which works out to roughly 400,000 to 450,000 customers, the corporation’s chief executive Manolis Panagiotakis revealed during a discussion with journalists on the sidelines of a general shareholders’ meeting today.

“Issues that could arise are currently being examined,” Panagiotakis noted. “The procedure is progressing very well as most matters have been resolved,” he continued.

If the plan succeeds, then this will be the first new retail subsidiary to be offered and sold by PPC. The utility chief implied that more new subsidiaries could be offered as part of the utility’s bailout-required effort to reduce its still-dominant retail market share.

Panagiotakis contended that the market share contraction targets cannot be attained without the sale of such subsidiaries.

“Should we presume that high-voltage consumers, the public sector and underprivileged customers all remain with PPC, then the targets set for the country require the transfer of 4.7 million consumers [to independent electricity suppliers] over two-and-a-half years,” the utility’s chief pointed out.

Rival independent suppliers have not anticipated such an outflow of PPC clients in their business plans.

PPC has yet to finalize the incentives it intends to offer to prospective investors for the retail subsidiary sale.

Panagiotakis noted that a steady tariff over a period of two to three years, including a relative discount, compared to the System Marginal Price (SMP), is being considered as one of the incentives to be offered.