RAE, the Regulatory Authority for Energy, plans to take firm action against the main power utility PPC for accumulated debt owed to IPTO, the power grid operator, and HEDNO, the Hellenic Electricity Distribution Network Operator, which the utility contends it has not been able to pay as a result of a cashflow problem caused by the large amount of unpaid electricity bills owed by consumers to PPC.

RAE is being forced to intervene as PPC’s debt to IPTO and HEDNO, both PPC subsidiaries, threatens their operational ability and, consequently, the energy market as a whole.

Both operators have forwarded protests, while IPTO has also taken legal action, prompting RAE to closely monitor PPC’s overall payment activity in search of a solution.

RAE has been investigating whether PPC is retaining surcharges meant to be relayed to HEDNO, locally acronymed DEDDIE, and IPTO, and using these withheld amounts to cover other needs, such as its own investment program.

Energypress sources have informed that the regulatory authority has detected improper actions by PPC, based on data provided by the utility at the request of RAE.

The same sources informed that PPC’s overdue amounts owed to HEDNO amount to around 200 millon euros. Island-based RES producers are consequently being deprived of payments for electricity provided to the grid.

The utility is believed to owe roughly 300 million euros to IPTO, but the operator also owes an amount to PPC, which, if offset, reduces the amount owed by PPC to IPTO to approximately 150 million euros. PPC’s failure to pay IPTO is, by extension, depriving LAGIE, the Electricity Market Operator, which, in turn, is being forced to drastically delay payments to RES producers.