PPC to miss €250m public service return, a new setback

The energy ministry, working overtime to prepare a series of legislative revisions it will seek to have ratified in parliament tomorrow, ahead of the July 7 snap elections, does not, at this stage, intend to include in its package an amendment that would enable the main power utility PPC to claim an older public service compensation (YKO) amount concerning 2011, sources have informed.

This development comes as a major concern for PPC both in terms of its cash flow and financial results.

The power utility had initially sought an amount of between 650 and 700 million euros but authorities have planned to return a sum of about 200 to 250 million euros, which would offer a major financial boost to PPC, facing various challenges.

Over the past few days, the state-controlled power utility’s administration has urged finance ministry and other government officials for a solution ahead of tomorrow’s parliamentary discussion of the energy ministry’s amendments.

As its next step, PPC will seek to convince RAE, the Regulatory Authority for Energy, the matter can skip parliament. PPC officials believe the authority is legally entitled to reach a decision on the matter without legislative backing.

RAE has already recognized PPC’s right to an amount stemming from YKO returns between 2008 and 2011, as the power utility was deprived of a year’s worth of money.