PPC set to cut 15% punctuality discount to 10%, €60m boost expected

PPC appears to have decided to reduce a 15 percent discount offered over the past two-and-a-half years to customers paying electricity bills on time to 10 percent for an annual revenue boost estimated at 60 million euros, energypress sources have informed.

The state-controlled power utility is keen to send out favorable news to investors before heading to capital markets. Ideally, PPC would want to reach out to capital markets this month but the energy ministry is mindful of endorsing any tariff hikes ahead of elections, due later this year.

Besides the punctuality discount reduction, PPC also wants to introduce a CO2 -related clause enabling electricity tariff hikes when emission costs reach certain levels.

The power utility’s chief executive Manolis Panagiotakis, who, earlier this week, stressed the corporation’s need for a return to profitability, has yet to be given the green light for the CO2 clause measure by energy minister Giorgos Stathakis, currently weighing its political cost.

PPC’s decision to cut its punctuality discount to 10 percent carries risk as it could prompt the departure of reliable customers to other suppliers.