The main power utility PPC’s board is expected to approve, at a session today, a self-financed expropriation plan designed to ensure lignite quantity and quality standards are met for the sustainability of the utility’s Melti power station, included in a bailout-required disinvestment package.
PPC had reached an improved lignite price agreement with the operator of the Ahlada mine supplying the utility’s Melti power station, at 16.5 euros per ton between 2020 and 2025. However, lignite quality and quantity standards demanded by the sale’s participants were pending.
PPC’s decision to finance the expropriation of the village Giourouki promises the extraction of better and greater amounts of lignite from the Ahlada mine, an initiative expected to make the Meliti power station sustainable.
The Ahlada mine operator, citing high expropriation costs, stopped expanding its mining activities for better-quality lignite and instead dug deeper around Giourouki. The resulting lower-quality lignite affected yield rates at the Meliti power station.
A pre-contractual agreement signed by PPC and Giourouki village residents promises an immediate expropriation payment of 60 percent, while the remaining 40 percent, according to the agreement, will be provided as soon as the precise compensation amount is finalized.
Participants of PPC’s sale of lignite units, relaunched after an initial sale failed to produce a result, face a May 28 deadline for binding bids. PPC’s expropriation plan for the village Giourouki has raised hopes at PPC of a successful follow-up sale.
Meanwhile, the Meliti power station’s eligibility for CAT remuneration remains unclear. PPC has no control over this issue. It is being handled by the energy ministry. The European Commission will have the final say.