Main power utility PPC is waiting for the outcome of negotiations between the Greek government and creditor representatives on the former’s effort to contain the amounts of electricity the utility must offer to the local market through the just-introduced NOME-type auctions before it places for sale subsidiaries carrying a share of its clients.
“We have prepared a model for the establishment of two electricity supply subsidiaries that will carry client mixes proportionate to that of PPC and may offer them for sale to competitors, either in their entirety or as majority stakes. But we will only do this to offset restrictions to the NOME auctions, which are catastrophic for the corporation,” a highly-ranked PPC official told energypress.
If PPC goes ahead with the supply subsidiary sales it should expect less pressure from the country’s lenders for future electricity amounts it will need to offer through the NOME auctions. Existing law requires the NOME auction amounts to be reviewed and revised annually, every June.
The NOME auctions, introduced last month, are intended to provide third parties with access to PPC’s low-cost lignite and hydropower sources as a measure to help break the utility’s market dominance.
For the time being, PPC has made clear it will not sell a share of its client base to rivals without having first been given official confirmation that such an initiave will lead to a relaxation of the electricity amounts the corporation must offer through the NOME auctions.
Though no news has yet to emerge on the NOME negotiations, the two sides are expected to reach a compromise deal.