PPC right to negotiate custom industrial tariff deals imminent

Main power utility PPC’s administration will need to soon resolve a pending issue concerning electricity tariffs for the industial sector, an additional requirement included in Greece’s third bailout.

According to sources, the issue will be addressed at an upcoming PPC shareholders meeting on June 30, when the Greek State – the utility’s majority shareholder with a 51 percent share, including a 17 percent share held by TAIPED, the State Privatization Fund – is expected to grant PPC’s administration the right to negotiate flexible, cost-based agreements with its industrial consumers, taking into account their respective profiles for custom deals.

In another bailout obligation, PPC also needs to launch procedures for the breakaway of its wholly owned subsidiary firm IPTO, the power grid operator. The plan will provide the Greek State with a 51 percent share and private-sector investors – strategic investor and bourse investors – with 49 percent.

PPC must launch the procedure by July, initially offering 20 percent of IPTO to private-sector investors before a prefered strategic investor is chosen by October. Should a strategic investor for IPTO not be found then the operator will need to be sold entirely to the private sector in 2017.

In another development also intended to reduce PPC’s electricity market dominance, the first NOME auction, to provide third parties with access to the utility’s low-cost lignite and hydropower sources, is scheduled for September. An electricity amount equivalent to eight percent of the total amount used in the grid in 2015 will be offered.