PPC uploads improved Meliti lignite supply deal to VDR

The main power utility PPC has uploaded to its virtual data room an improved lignite supply agreement reached with the operator of the Ahlada mine feeding the Meliti power station, thereby resolving one of the biggest ambiguities that has shadowed the utility’s bailout-required sale package of lignite units for prospective buyers. The Meliti unit is included in this disinvestment package.

The agreement guarantees the Meliti power station a minimum annual amount of 2 million tons of lignite at a cost of 16.5 euros per ton over a five-year period beginning in 2020. These terms are based on the condition that the village Giourouki, in the Meliti area, will undergo expropriation procedures by the end of this year.

In the lead-up, a price of 21 euros per ton has been set for 2019.

The Meliti agreement’s annual lignite output of 2 million tons could be increased by 25 percent if certain requirements are met.

The Meliti unit’s high operating cost was a key factor behind PPC’s failure to attract investors to its initial sale effort offering the same package of lignite units.