Energy ministry seeking to avoid the worst in bailout talks

The energy ministry is seeking to avoid the sale of main power utility PPC lignite-fired and hydropower stations, a demand made by the country’s creditor representatives as an alternative should the state-controlled power corporation miss market share contraction targets specified in the bailout.

The country’s creditor representatives returned to Athens earlier this week to recommence negotiations for the bailout’s prolonged second review.

Energy ministry officials hope that the range of options provided by the lenders for PPC may widen and include alternatives such as the establishment and sale of new subsidiaries in the electricity supply sector. The subsidiaries would carry a slice of PPC’s existing clientele.

Though PPC’s leadership has been promoting this plan for quite some time now, energy ministry officials presented it to the country’s creditor representatives for the first time last night. Ministry officials believe that its adoption would eliminate the threat of PPC needing to sell lignite-fired and hydropower stations.

Until now, the creditor representatives have warned that 40 percent of the utility’s electricity generation facilities will need to be sold if PPC keeps missing its market share reduction targets, expected to gradually fall to less than 50 percent by 2020. PPC missed its end-of-2016 target and remains dominant with a retail electricity market share of just under 90 percent.

Reliable sources noted that a less harsh alternative plan for PPC, one that would carry less political cost for the government, could result from the latest bailout talks.

PPC clearly favors the establishment and sale of new electricity supply subsidiaries over the recently introduced NOME auctions, viewed as catastrophic by the utility. They were introduced last October in an effort to break the utility’s market dominance by providing independent traders access to PPC’s low-cost lignite and hydropower sources.

However, at this stage, there are no indications that the creditors may ease the pressure being applied for PPC to offer greater electricity amounts through the NOME auctions.

 

 

 

 

Work needed for convergence in energy bailout negotiations

Though the overall mood was reportedly positive during yesterday’s resumption of bailout review talks between Greece’s energy minister Giorgos Stathakis and the country’s creditor representatives on needed energy-sector reforms, the session’s developments were far from sufficient to warrant any imminent agreement.

Both sides presented their positions and, based on the proposals made, technical teams will continue examinations and talks with the objective of achieving some convergence by the end of this week when Stathakis and the creditor representatives are expected to meet again.

During yesterday’s session, the creditor representatives, back in Athens to resume the bailout’s prolonged second review, requested explanations for pending energy-sector matters.

The lenders sought details on the split and sale process of the power grid operator IPTO, a subsidiary of the state-controlled main power utility PPC, which faces a tough schedule. It appears to be on track.

On the low-cost lignite and hydropower electricity amounts PPC will need to offer independent traders through the recently introduced NOME auctions, the two sides, still far apart, essentially defended their positions which had been exchanged, in writing, prior to the meeting.

Both sides were also adamant on their views concerning structural reforms that would be demanded by the creditors if the NOME auctions fail to produce the desired results. PPC’s retail electricity market share must gradually drop to less than 50 percent by 2020. Intermediate target figures have been set. The utility’s dominant market share has remained resilient, persisting at just under 90 percent, despite the introduction of the NOME auctions about four months ago.

As expected, the creditor representatives pointed out the slow progress being made on the NOME front as the market shares of independent electricity suppliers have yet to make sufficient gains. The creditors want to conduct a review of the NOME plan’s progress in June. The government may be forced to sell 40 percent of PPC’s lignite and hydropower stations by July, 2018, if the NOME auction progress is deemed unsatisfactory.

The creditor representatives – especially the European Commission, which maintains a greater interest in EU energy market matters – believe that PPC’s production portfolio is a fundamental problem that is prompting a series of electricity market irregularities.

A recent raid by European Directorate for Competition officials of PPC and IPTO’s Athens headquarters, for the collection of data in response to market abuse complaints, including anti-monopoly law violations, by the dominant power utility, definitely boosts the negotiating position of the creditor representatives during this latest round of talks and increases the degree of difficulty faced by Greek officials.

 

 

Energy-sector bailout review talks restarting from scratch

Energy minister Giorgos Stathakis will today resume negotiations with the country’s creditor representatives, returning to Athens to continue working on the completion of the bailout’s second review, carrying a series of proposals that do not share common ground with energy-sector demands called for by the institutions.

The gap between the two sides essentially means that the energy-sector talks will recommence from scratch, or, at best, a long way back from the point reached in December, when the creditor representatives were here last.

The energy minister’s positions on a variety of issues, presented in writing as a reaction to demands forwarded by the creditor representatives, have already been delivered to the institutions. They have not responded.

Though Stathakis has offered reassurances claiming the bailout’s energy-related issues will not obstruct the second review’s conclusion, the current discrepancies suggest otherwise. Unless, of course, the tough demands being made by the lenders prove to be a negotiating tactic, or if the government softens up on the limits it has set.

The Greek side has already shown signs of mild compromise as indicated by an apparent willingness to accept a demand made by the creditors for an increase of the electricity amounts to be offered by the state-controlled main power utility PPC to the NOME auctions.

Introduced last October to break the utility’s market dominance by offering other traders access to PPC’s low-cost lignite and hydropower sources, the NOME auctions have yet to produce results.

The compounding system demanded by the creditors would require PPC to provide increasing electricity amounts to the auctions over the next few years. In 2017, besides a 12 percent proportion demanded by law for the year, Greek officials would need to also offer an 8 percent proportion that had been agreed to for 2016. By 2018, this compounding system would require PPC to make available 33 percent of its electricity to the NOME auctions –2016’s 8 percent, 2017’s 12 percent and 2018’s 13 percent.

In addition, the creditors want to conduct a review of the NOME plan’s progress in June. An alternative measure proposed by the creditors, if the NOME plan’s progress is deemed unsatisfactory, would require PPC to sell 40 percent of its lignite and hydropower stations by July, 2018. Should this route be taken, a consultant will need to be hired for the sale process by no later than this coming August.

Though the bailout requires PPC’s market share to drop to less than 50 percent by 2020, it has remained relatively firm and currently stands at just under 90 percent, supported by a series of discounts offers to clients by the utility since last summer.

On another pending energy sector matter, Stathakis is today expected to officially inform the creditors of the government’s intention to stage a new tender for the sale of a 66 percent stake of DESFA, the natural gas grid operator, following last December’s collapse of a previous long-running effort.

 

Lenders to return with tough NOME and DESFA demands

The country’s creditor representatives, upon their imminent return to Athens in a bid to conclude the bailout’s second review, are expected to make new tough energy-sector demands seeking the provision of greater electricity amounts from main power utility PPC for the NOME auctions.

In the event that the availability of these increased electricity amounts to independent electricity suppliers fails to reduce the power utility’s still-dominant market share, the creditors, as a back-up demand, are expected to require PPC to sell 40 percent of its lignite-fired power stations and hydropower units. This is a new, additional demand.

Besides piling on the pressure to further liberalize Greece’s electricity market, the creditors, who will soon meet with the country’s energy minister Giorgos Stathakis, are also expected to apply relentless pressure for the swift privatization of DESFA, the natural gas grid operator, following the recent collapse of a long-running tender.

In comments offered to the Athens News Agency over the weekend, the energy minister contended that it is still too early to write off the NOME auction procedure as a failure. Introduced last October to break PPC’s market dominance by offering other traders access to PPC’s low-cost lignite and hydropower sources, the NOME auctions have yet to produce results. The utility’s electricity market has hardly moved and sits at just under 90 percent. It is expected to gradually fall to less than 50 percent by 2020.

Stathakis, in the Athens News Agency interview, noted that the NOME terms are clear-cut and do not require further clarification.

However, the creditors – responding to PPC’s stubborn market share stagnancy, fueled by a series of discount offers launched last summer – are expected to increase the pressure by calling for a compounding proportion of the utility’s electricity to the NOME auctions. In other words, in 2017, besides a 12 percent proportion demanded by law for the year, Greek officials will be pressured to also offer an 8 percent proportion that had been agreed to for 2016. By 2018, this compounding system would require PPC to make available 33 percent of its electricity to the NOME auctions –2016’s 8 percent, 2017’s 12 percent and 2018’s 13 percent.

Certain pundits believe that a compromise deal could eventuate from the talks. They believe the energy minister would accept the compounding electricity amounts for the NOME auctions in exchange for the withdrawal by creditors of the condition requiring PPC to sell 40 percent of its lignite and hydropower stations should the auctions fail to reduce the utility’s market share.

The part-privatization of PPC has not been included in the latest memorandum delivered by the creditor representatives to the energy ministry. Also, there is no mention of a PPC split-and-sale plan that would entail carving out a portion of its clientele and transferring it to a new subsidiary. PPC has presented this plan as a key alternative strategy that may satisfy the market share contraction demands made by the creditors.

As for DESFA, the energy minister contends that a new tender offering 66 percent of the gas grid operator will soon be launched. Stathakis told Athens News Agency that details have been finalized, enabling an imminent launch of the procedure. Between 16 and 18 months will be needed to carry out the entire process from the day the tender is announced. Last December’s collapse of the previous DESFA tender will leave a gap in this year’s budget concerning anticipated privatization revenues.

 

Market shares unchanged, PPC remains steady at around 90%

Latest retail electricity market data released for the month of January confirms a prevailing belief supporting that the market is on hold awaiting developments. The main power utility PPC’s market share remained virtually unchanged. This stagnancy threatens to incite devastating bailout-related action against the utility.

According to energypress sources, PPC, pursuing an aggressive discount-based policy since last summer despite a bailout obligation for a drastic market share contraction by 2020, is holding steady with a market share of around 90 percent.

PPC’s persistence would have been less crucial had the present period not been one of intense negotiations between the Greek government and the country’s creditors to conclude the bailout’s second review.

Pressure, by the creditors, for the sale of a 17 percent share of PPC controlled by the Greek State, has become a core issue of these negotiations as it is becoming increasingly apparent that measures taken for the utility’s market share contraction are not producing results. The creditors have also begun pressuring the government to sell 40 percent of PPC’s llignite-fired and hydropower units by the summer of 2018.

PPC missed the bailout’s end-of-2016 target of a market share reduction to 87.24 percent. The utility must gradually reduce its market share to less than 50 percent by 2020. Along the way, PPC is expected to lower its market share to 75.24 percent by the end of 2017 and 62.24 percent by the end of 2018 before hitting 49.24 percent by the end of 2019.

An assessment of the progress made is due this coming June. Though the bailout’s original plan had charged RAE, the Regulatory Authority for Energy, with this task, the creditors are pressuring to assume a greater role in the assessment.

Confusion over a RES-supporting electricity supplier surcharge, which was introduced recently but has struck levels well above expectations, has kept the market activity subdued. The board at RAE will address the issue at a meeting today. Its settlement is expected to encourage independent suppliers to relaunch promotional campaigns with renewed zest in a bid to make market share gains. Independent suppliers have held back as a result of the exorbitant supplier surcharge, which has affected budget plans and finances.

At this stage, it appears unlikely that the market momentum needed for PPC’s market share contraction to 75.24 percent by the end of the year will have been gained by June’s assessment.

According to the latest market data, PPC holds a market share of 89.83% – 59.67% in the low-voltage category, 18.82% in the medium-voltage category and 11.34% in the high-voltage category – a 1.17% increase.

Protergia follows with 2.69% – 1.11% low-voltage and 1.58% medium-voltage.

Elpedison is next with 2.42% – 1.19% low-voltage, 1.07% medium-voltage and 0.16% high voltage.

Heron holds 2.35% – 0.74% low-voltage and 1.61% medium-voltage.

Watt + Volt is at 0.76 percent – 0.65% low-voltage and 0.12% medium-voltage.

NRG Trading follows with 0.66% – 0.23% low-voltage and 0.43% medium-voltage.

Volterra holds 0.52%, all in the medium-voltage category.

Green trails with 0.35 percent – 0.22% low-voltage and 0.14% medium-voltage.

 

 

 

 

Lenders up pressure, PPC may need to sell 40% of stations

The country’s lenders have increased the bailout agreement’s energy-sector demands needed to complete the delayed second review. If conditions and targets are not met, this heightened pressure, which has troubled, if not shocked, local authorities, could ultimately force the state-controlled main power utility PPC to sell 40 percent of its lignite-fired and hydropower units by the summer of 2018.

The intensifying pressure underscores the fact that the longer it takes the government to complete the bailout’s second review the more burdensome the demands piled onto it will become. The government now faces a far tougher task than it did last December, when energy minister Giorgos Stathakis met in Athens with the creditor representatives.

According to energypress sources, the latest list of conditions delivered by the lenders may well be too relentless – both in terms of deadlines and target figures – to facilitate the negotiation process.

The conditions for the NOME auctions – the process was introduced last October as a bailout-required measure aiming to break the main power utility PPC’s dominance by offering other traders access to the utility’s low-cost lignite and hydropower sources – have toughened. Though the target figures remain unchanged, the NOME schedule has tightened.

The latest memorandum of understanding conditions issued by the lenders require the creditor representatives, themselves, in collaboration with government officials, to assess the NOME-related progress – PPC’s market share contraction – this coming June. Previously, this task had been set aside for RAE, Greece’s Regulatory Authority for Energy.

This assessment’s results will determine the nature of restructuring measures to be taken if PPC’ s market share reduction targets are missed. This is where the sale of 40 percent of the utility’s lignite-fired and hydropower units, by June, 2018, would come into play. If so, a consultant for the sale process will need to be hired by this August, two months after the NOME assessment.

Lenders want PPC to cover additional NOME ground over the next few months to make up for its failure to meet a market share contraction target that had been set for the end of 2016.

The lenders also insist on a compounding system for the amount of electricity offered by PPC to rivals through the NOME auctions. In 2017, PPC will need to offer 12 percent of the previous year’s total demand, as agreed, plus an 8 percent amount that was offered in 2016. In 2018, the utility must offer 2016’s 8 percent, 2017’s 12 percent, plus that year’s 13 percent. No revisions have been made to the auction starting price.

 

Lenders blocking government bid to avoid sale of PPC’s 17%

The country’s lenders have raised strong objections to the government’s intention of transferring a 17 percent stake of the main power utility PPC from TAIPED, the state privatization fund, to the new super-privatization fund, a move that would prevent the direct sale of this utility stake, currently belonging to the Greek State.

The PPC issue represents one of the main stumbling blocks between the government and lenders amid the bailout’s troubled and ongoing second review.

A 34 percent stake of PPC that is owned by the Greek State has already been transferred to the super-privatization fund. The government is pushing to also have the Greek State’s other 17 percent stake in PPC transferred to the super-privatization fund, which would safeguard the Greek State’s 51 percent in PPC against any immediate privatization attempt.

Unlike TAIPED, whose sole task is to privatize Greek State assets under its control, the super-privatization fund, introduced recently by the current government, is seen as a reform service responsible for better utilizing the Greek State’s assets and interests in a bid to boost revenues and avoid their privatization.

Delays encountered with TAIPED’s Asset Development Plan, according to which a consultant was to be hired last September for the privatization of the Greek State’s 17 percent of PPC, have further soured the bailout review negotiations. Despite assurances by the Greek side, a consultant has yet to be hired.

In its attempt to delay the sale of the Greek State’s 17 percent share of PPC, the government argues that the utility’s bourse value is currently lying extremely low, meaning that any sale, at present, would offer little debt relief.

 

 

 

 

 

Lenders demanding PPC 17% sale, management surrender

The country’s lenders are demanding an acceleration of procedures leading to the sale of main power utility PPC’s 17 percent and surrender of the utility’s management to the strategic investor, latest developments have indicated.

According to sources, these demands, made yesterday during a teleconference between Greece’s alternate finance minister Giorgos Houliarakis and creditor representatives, will be included as yet another prior action needed for completion of the bailout’s second review.

Greek government officials contend that PPC’s low market capitalization serves as a hindrance for this plan. At this point in time, the sale of PPC’s 17 percent would rake in a mere 100 million euros, based on the utility’s current share price.

PPC’s market value, based on the share price, was worth 593.9 million euros yesterday, down from 684.4 million euros a month ago and 846.8 million euros a year earlier.

Highlighting how poor these figures are, as well as the severity of the utility’s financial state and how intertwined its fate is with the Greek economy, PPC – a corporation whose assets are worth a total 17 billion euros and which possesses 20 thermal units, 22 hydropower stations and 31 power stations on islands, while also holding an 89 percent electricity retail market share – is currently estimated to be worth 42 percent of a single new coal-fired power station investment, now being developed at a cost of 1.4 billion euros, in Ptolemaida, northern Greece.

At this stage, energy minister Giorgos Stathakis appears to be following in the footsteps of his predecessor Panos Skourletis and striving to have PPC’s 17 percent placed in the prospective super privatizations fund, which will include a subsidiary holding company avoiding direct privatization. Such a move does not necessarily mean that PPC will be spared of the part-privatization demanded by the lenders. Similar protective efforts in the past have failed to avoid privatizations, OLP, the Piraeus Port Authority, being a glaring example.

 

 

 

DESFA tender continuation being looked at to save time

The energy ministry appears to have not written off continuing the DESFA (natural gas grid operator) sale effort through its original international tender – offering investors a 66 percent stake of the operator – as such a course of action would save at least five months. A decision is expected soon, possibly within the current week.

The ministry is now examining a specific legal approach proposed by its legal team, according to which the initial tender may allow the seller to revise the sale’s regulations and procedures without affecting the tender’s legality, energypress sources informed.

The launch of a new tender from scratch would require at least five months of preliminary work, including the appointment of a consultant, the procedure’s announcement and the evaluation.

Overall, a new tender is expected to take no less than 16 months to complete from the moment it is announced to its finalization. Such a delay would derail Greece’s entire privatizations agenda, which the energy ministry, facing relentless pressure from the lenders, would rather avoid.

Though the option to continue the initial tender currently represents a borderline case in terms of legality, the fact that just one investor – Azerbaijan’s Socar – submitted an offer before dropping out greatly diminishes the likelihood of any legal challenge, on the grounds of regulation changes.

Revisions being considered include tax-related details and other problems identified in the initial tender by legal officials.

The energy ministry’s thoughts of continuing the initial tender were prompted by the pressure being applied by the country’s lenders on the government for an acceleration of the DESFA sale, which has turned into a saga.

This year’s national budget anticipates a 188 million-euro infusion from the Greek State’s sale of DESFA’s 66 percent to Socar. The Azerbaijani energy firm ended up withdrawing from the sale late last year after the government applied revenue-limiting measures to the operator.

Besides the continuation of the initial tender, a fast-track procedure for a new tender is another option. TAIPED, the state privatization fund, has already examined this course, which could be launched this month and rushed through an extremely tight schedule leading to completion in seven to eight months. Such a course would greatly restrict the tender’s stages, including the time available for prospective investors to express their interest and the deadline for binding offers.

 

PPC split approval for IPTO delayed by pending loan shifts

The transfer of loans worth a total of 120 million euros from the main power utility PPC to a new holding company concerning the utility’s subsidiary IPTO, the power grid operator, demanded by the country’s four main banks as part of the operator’s split and sale process from PPC, has yet to be made, meaning the operator’s breakaway from the parent company will not be discussed and endorsed at today’s PPC general shareholders’ meeting.

Certain legal and technical issues still need to be resolved before the transfer of loans to the new IPTO holding company can be performed, well informed sources told energypress.

The banks insist that PPC, minus its operator, will have trouble servicing these loans, the same sources noted. The loan transfers to the IPTO holding company has been set as a prerequisite by the banks if the IPTO split from PPC is to be endorsed.

The IPTO holding company will be able to service the loans through dividends to be received by the operator, the banks have stated.

Despite this banking complication, today’s PPC general shareholders’ meeting, already rescheduled, will be staged as company law forbids a second successive postponement. However, a representative for the Greek State, which holds a 34 percent stake in the utility, will request that the loans transfer issue not be discussed at the session. It will be discussed at the next meeting, expected to be held in about one week or possibly ten days, at most.

The government’s plan entails keeping 51 percent of IPTO under the Greek State’s control. If the country’s creditors deem that the procedure is not progressing as planned, PPC will be forced to sell IPTO in its entirety.

 

 

Foreign bank, SGCC positions unclear in IPTO sale plan scare

A threat that came close to derailing the government’s split-and-sale plan for IPTO, the power grid operator, a subsidiary of PPC, the main power utility, last Friday night, following concerns raised by the country’s four main banks over financial guarantees, now appears to be under control, but questions still linger.

The four banks reached an agreement with the government after deeming that the fulfillment of three guarantees set on Friday would not require the banks to block the IPTO split-and-sale procedure.

According to energypress sources, the four banks will be granted PPC contracts that promise to generate future cash flow; PPC loans will be transferred to IPTO’s SPV (Special Purpose Vehicle); and amounts owed by the Greek State to PPC will be swiftly settled in order to enable the utility to service its bank loans.

It is not yet clear whether other PPC creditors, including the European Investment Bank and funds, are satisfied with the agreement reached between the government and the country’s four main banks.

It is also unclear to what degree these guarantees set by the four main banks impact the 320 million-euro price tag of SGCC’s (State Grid Corporation of China) agreement with PPC for the acquisition of a 24 percent stake of IPTO.

The interest will now focus to PPC’s general shareholders meeting scheduled for tomorrow. Facing a tight schedule, set as part of the bailout, the government’s IPTO split-and-sale plan has developed into a more complicated project than originally anticipated.

The government’s plan entails keeping 51 percent of IPTO under the Greek State’s control. If the country’s creditors deem that the procedure is not progressing as planned, PPC will be forced to sell IPTO in its entirety.

 

 

 

PPC market share contraction aim missed following new gain

The main power utility PPC appears set to miss a bailout-required market share contraction target for the end of 2016 as a result of a market share gain measuring approximately one percentage point in December, early – still unofficial – market data has indicated. PPC had also added half a percentage point to its market share a month earlier.

The latest data showed that the utility’s market share for the end of December will rise to a level of just below 90 percent after ending November at 88.66 percent and October at 87.99 percent.

These gains suggests that PPC will miss the bailout-related market contraction target of 87.42 by the end of 2016 as part of a downward trajectory through which the utility’s market share is expected to drop to less than 50 percent by 2020. PPC’s market share is expected to fall to 75.24 percent by the end of 2017, 62.24 percent by the end of 2018 and 49.24 percent by the end of 2019.

The utility’s gain of nearly two percentage points over the last couple of months of 2016 will add weight to a demand by the country’s creditors for PPC to offer greater electricity amounts through the recently introduced NOME auctions, a bailout requirement seeking to break the utility’s dominance by offering other traders access to the utility’s low-cost lignite and hydropower sources.

The creditors want NOME electricity percentage amounts of previous years compounded to ensuing years.

Interestingly, PPC’s market share gains at the end of 2016 coincided with electricity amounts secured by independent suppliers at the inaugural NOME auction last October and promotional campaigns launched by these rival suppliers.

As was recently reported by energypress, PPC’s chief executive Manolis Panagiotakis has admitted that the utility is striving, through a series of discount offers to clients, to delay its market share contraction while it prepares to carve out and sell new supply subsidiaries as a means of reducing its market share. PPC is pushing for its split-and-sale plan as an alternative to the just-introduced NOME auctions, which the utility would like to have scrapped.

 

IPTO holding company mystery postponement sparks rumors

The state privatization fund TAIPED’s request yesterday for the postponement of a decision establishing a holding company that would take on a 51 percent share of IPTO, the power grid operator, as part of the operator’s complex sale procedure, strongly suggests that the sale effort has run into serious trouble, despite the fund’s attempt to play down the development by describing it as a procedural issue.

A series of meetings were held during the day between government, TAIPED, main power utility PPC officials, and advisers to resolve the issue. PPC is IPTO’s parent company.

The tight IPTO sale schedule gives officials until January 17, when a PPC shareholders meeting is planned, to resolve the issue, but, despite the alarm, a solution may be found as early as today.

Yesterday’s postponement, made during a PPC shareholders meeting, has sparked much speculation.

Though considerable progress has already been achieved in the IPTO sale – as highlighted by the choice of China’s SGCC as the winning bidder of an international tender offering a 24 percent stake in IPTO, and an agreement reached with the country’s lenders for the sale’s schedule – PPC appears to have certain doubts.

Even so, yesterday’s postponement is not believed to be linked to a counterproposal made by PPC’s chief executive Manolis Panagiotakis for the subsidiary IPTO’s split and sale plan.

According to an agreement reached by the government and the country’s lenders, PPC is expected to transfer a 51 percent share of IPTO to a holding company whose equity capital, based on a company estimate, will be worth 491.8 million euros.

The Greek State and TAIPED control 51 percent of PPC – 34 percent and 17 percent respectively. The two will hold equivalent stakes in IPTO through the holding company.

The sale procedure will eventually lead to TAIPED taking control of an 8.5 percent of IPTO, a prospect that has raised the concerns of PPC union members and the administration. They fear that the government’s objective of retaining 51 percent of IPTO for the Greek State could easily be derailed.

 

 

 

New DESFA tender negotiated, 51% retainment indefinite

The Greek government is preparing to stage a new international tender for DESFA, the natural gas grid operator, following the recent collapse of a previous sale procedure offering 66 percent, but the stake to be offered this time around remains undecided, energy ministry officials informed today.

Negotiations concerning this detail are currently in progress with the country’s creditor representatives, the energy ministry officials informed, adding that no less than a 31 percent share, the stake now under the control of TAIPED, the state privatization fund, will go up for sale.

The government is seeking a formula that may enable it to retain a 51 percent stake of DESFA for the Greek State, along the lines of the ongoing sale of IPTO, the power grid operator.

Just weeks ago, energypress sources said the new DESFA sale would not be launched before the first quarter of 2017.

In keeping with EU regulations, the new procedure will need to forbid enterprises operating both as producers and traders of natural gas from acquiring a majority stake of DESFA. The buyer will also need to be a certified European network operator.

 

PPC makes slight retail market share gain, unconfirmed data shows

At a time when government officials are locked in negotiations with the country’s creditor representatives over revisions demanded by the latter to the NOME auctions, introduced in October as a tool to reduce the main power utility PPC’s market dominance, the utility has made a slight retail electricity market share gain, according to early unofficial figures covering November, sources have informed energypress.

The lenders want PPC to supply greater electricity amounts to the market through the NOME auctions.

Rather than lose ground since the NOME arrival, PPC gained about half a percentage point in November, the sources informed, following a month of virtual stagnancy in October, despite ambitious promotional campaigns launched by independent electricity suppliers seeking to increase their respective market shares.

PPC’s resilience has no doubt been backed by a 15 percent discount introduced last summer for customers paying their electricity bills on time. The measure appears to be maturing in the minds of consumers as one that is sufficient enough to keep them at PPC.

If the early electricity market data for November is confirmed, then Greece risks missing a bailout-related requirement demanding that PPC’s market share fall to 87.24 percent by the end of 2016 as a step towards an ultimate reduction to less than 50 percent by the end of 2019. The utility’s market share must fall to 75.24 percent by the end of 2017, 62.24 percent by the end of 2018 and 49.24 percent by the end of 2019.

According to official data, for October, published by LAGIE, the Electricity Market Operator, PPC held an 87.99 percent market share – 55.78 percent in the low-voltage category, 17.8 percent in the medium-voltage category and 14.62 percent in the high-voltage category,

As for the independent electricity suppliers, Heron held a 3.08 percent share in October – 0.79% low-voltage and 2.29% medium-voltage.

Protergia followed with 3.01 percent – 0.77% low-voltage and 2.24% medium-voltage.

Elpedison was next with 2.51 percent – 1.07% low-voltage, 1.42% medium-voltage and 0.02% high voltage.

NRG Trading held a 0.95 percent share – 0.23% low-voltage and 0.72% medium-voltage.

Volterra captured 0.83 percent, all in the medium-voltage category.

Watt + Volt held 0.66 percent – 0.57% low-voltage and 0.99% medium-voltage.

Green was next with 0.47 percent – 0.24% low-voltage and 0.23% medium-voltage.

 

DESFA action after festive season; new tender inevitable

No major decisions on the next steps to be taken in the DESFA (natural gas grid operator) sale, following the recent collapse of a long-running privatization attempt, are expected until after the festive season, according to officials linked to the process.

The failed international tender – which expired at the end of November after the Greek government and DESFA’s candidate buyers, Azerbaijani energy firm Socar and Italy’s Snam, which became a partner for the deal later on in the process, were unable to reach a deal – has not yet been officially declared void. Subsequently, a new tender has not been launched.

Following the tender’s collapse, the Greek government, pressured by the European Commission to not waste any time on the DESFA issue, examined the possibility of prolonging the existing tender as a means of avoiding a new procedure from scratch. However, keeping the original procedure alive is most probably not legally possible, it has become apparent.

At least two operators, Belgium’s Fluxys amd Romania’s Transgas, are expected to express interest in a new DESFA tender.

The recently appointed energy minister Giorgos Stathakis is currently in New York City on an official visit and not expected back until later this week. No DESFA-related decisions should be expected while he is away. Also, TAIPED, the state privatization fund, has not scheduled a board meeting this week to officially end the initial DESFA tender. It should be kept in mind that no DESFA action should be expected next week, the pre-Christmas period, meaning that any developments will not take place until after the festive season.

The delayed DESFA sale is holding up other bailout-required privatizations in the energy sector, specifically those of DEPA, the Public Gas Corporation (65%) and ELPE, Hellenic Pettroleum (35%). DESFA is a wholly owned DEPA subsidiary and ELPE holds a 35 percent stake in DEPA.

The DESFA matter needs to be cleared up before a privatization tender for DEPA can be launched as an accurate evaluation of DEPA is not possible the way things stand.

 

 

Lender NOME demands to sink PPC, energy minister warns

The recently appointed energy minister Giorgos Stathakis is convinced that a latest bailout-required plan calling for main power utility PPC to offer 46 percent of its electricity production to NOME auction participants by 2019 will swiftly lead the utility to bankruptcy and, therefore, cannot be accepted as “forceful solutions will not be tolerated,” the minister has announced.

Local officials and the country’s creditors failed to reach an agreement over the weekend on lender demands wanting PPC to offer increased electricity to independent suppliers through the NOME auctions, whose legal framework has already been ratified. The NOME auctions were introduced in October.

Talks between the two sides are scheduled to carry on in search of a compromise deal, possibly today or during the week. Energy Minister Giorgos Stathakis is scheduled to meet with the creditor representatives within the week in Athens for talks on the bailout’s energy sector issues.

The NOME auctions 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.

The lenders are pushing for PPC to offer – in January – an electricity amount equivalent to 12 percent of consumption in 2016 as well as a repeat of an amount offered in 2016 (8 percent of consumption) next September. This accumulative 8 percent may be split into two amounts, 4 percent for the end of 2017 and a further 4 percent in mid-2018.

According to energypress sources, Greek officials had originally accepted the terms but are now rejecting them.

 

 

Lenders pushing for NOME auctions beyond 2019

Greece’s lenders, especially the European Commission, are believed to be pushing for the continuation of the NOME auctions beyond 2019.

The energy-sector obstacles in the bailout’s second review – the electricity amounts main power utility PPC needs to offer to independent suppliers through the NOME auctions, as well as the progress of the overall plan intended to drastically reduce PPC’s retail market share – remain unresolved.

A teleconference held on Saturday night between the lenders and the Greek economic policy team, headed by the recently appointed energy minister Giorgos Stathakis, failed to provide solutions, which lowers the expectations of what can be achieved at today’s scheduled Eurogroup meeting.

The lenders insist that a roll out of electricity amounts offered through the NOME auctions needs to be continued every year until 2019, beginning with September, 2017, when PPC will need to include an amount representing 12 percent of consumption in 2016 as well as a repeat of an amount offered in 2016 (8 percent of consumption).

According to the lenders, this accumulative approach of NOME electricity amounts is expected to end up providing 46 percent of PPC’s electricity production to independent suppliers by 2019.

Greek officials oppose the compounding approach demanded by lenders, but are willing to accept its implementation just once, in 2017, sources have informed.

Local officials are pushing for an interpretation of the measure that offers 8 percent of the previous year’s consumption in 2016, 12 percent in 2017 and 13 percent in 2019, without any accumulation. Greek officials contend that these percentage figures are sufficient enough to ensure PPC’s reduced market share of less than 50 percent by 2020, the objective set.

Local officials argue that the bailout-linked agreement requiring market share losses at PPC should not be correlated with the electricity amounts offered through the NOME auctions.

As previous reported by energypress, the negotiating sides seem to have agreed to not revise the NOME starting price in January, factoring in latest CO2 emision allowance rights, which would lower the price level. Instead, the NOME starting price is expected to be revised in June and applied to ensuing auctions.

 

DESFA tender demise tempts gov’t to rethink energy sales

Last week’s end without a deal in Greece’s long-running effort to sell a 66 stake of DESFA, the natural gas grid operator, has tempted government officials to reconsider the privatization plans offering stakes in the energy firms PPC (Public Power Corporation), ELPE (Hellenic Petroleum) and DEPA (Public Gas Corporation).

Party officials at leftist Syriza, the coalition’s leader, have never really fully embraced the bailout-linked plans to privatize energy firms and would much prefer solutions retaining 51 percent stakes for the Greek State.

Since last week’s demise of the DESFA sale attempt, government officials have focused their intentions on a relaunch that would offer a minority stake of the operator. The DESFA sale collapse is sure to delay the sales of DEPA (65%) and ELPE (35%).

The effort to privatize DEPA would previously require finalization of the sale of any stake in DESFA, currently a wholly owned DEPA subsidiary. This would allow the seller and any prospective DEPA buyers to know exactly what is being sold. The same goes for the Greek State’s stake in ELPE, which, in turn, holds a 35 percent stake in DESFA. The state’s share in ELPE would be expected to be placed for sale once the DEPA privatization has been completed.

The subsequent delays of the DEPA and ELPE sales, combined with a series of obstacles in the bailout’s unfinished second review, have offered Greek officials time to reconsider the country’s energy-sector privatization plans.

Questions concerning the national energy policy that needs to be pursued, the country’s strategic direction, and how the Greek State could maintain control over networks and pivotal firms are some of the issues preoccupying the minds of Greek government officials.

Given the country’s bailout requirements, the actualization of such thoughts cannot be taken for granted. Greek government officials know well that the country’s creditors would not easily allow the already-endorsed privatizations program to be dismantled. The creditors have already voiced strong objections to any changes.

The creditors expect a total of 2.2 billion euros to be raised through Greece’s privatizations agenda in 2018.

Whatever the outcome, the Greek government has certainly gained additional time for the DESFA sale and other energy-sector firms, which can be regarded as a success in itself. If the country is led to early elections in 2017, then the hot potato of an issue will need to handled by the next government.

 

NOME talks supporting PPC client split-and-sale plan

The ongoing negotiations between government officials and the country’s lenders for revisions to the just-introduced NOME auctions can, as they stand, be interpreted in different ways.

From one vantage point, the lenders appear to be winning a roll out of electricity amount percentages for auctions to be staged in 2017. In this case, next year’s auctions, staged by main power utility PPC, will need to include an amount representing 12 percent of consumption in 2016 as well as a repeat of an amount offered in 2016 (8 percent of consumption).

According to PPC, this amount represents a disproportionately high percentage of lignite and hydropower production.

From another perspective, the negotiations seem positive for PPC as it looks like Greek government officials will gain the right to revise electricity amount percentages offered through the NOME auctions in the event that PPC exceeds its market share contraction targets.

Practically speaking, if PPC carves out and places for sale, by March, through a tender, at least one subsidiary firm carrying a percentage of the utility’s clients, then a downward revision of the NOME auction electricity amounts will be feasible in June. RAE, the Regulatory Authority for Energy, is expected to assess the NOME data annually, every June.

In this sense, the NOME auction negotiations are keeping alive the prospect of PPC’s split-and-sale plan offering a share of its clients to rivals. The utility’s CEO Manolis Panagiotakis has said the plan will be carried out only if suitable provisions are offered though the bailout talks.

The NOME auctions, introduced in October, 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.

Gov’t expected to announce DESFA plans next week

The Greek government is expected to announce, next week, the details of its future plan for DESFA, the natural gas grid operator, following this week’s collapse of a long-running privatization attempt.

Athens will also need to start work on anticipated legal issues as a result of the failed sale to Azerbaijani energy firm Socar, the winning bidder of an international tender in 2013, offering a 66 percent stake, and Italy’s Snam, an eventual partner in the deal.

According to sources, government officials have already begun exploring the prospect of whether the tender could be kept alive as a means of avoiding the launch of a new procedure from scratch.

Legal experts contacted by energypress informed that a new tender is legally inevitable as a result of Socar’s refusal, on November 30, to extend its letter of guarantee following two successive one-month extensions.

If permitted by the country’s lenders, the Greek government is expected to try and retain 51 percent of DESFA for the Greek State and offer a smaller stake to investors. A plan through which the government is expected to offer between 25 and 30 percent of DESFA to a strategic investor, as well as shares through the bourse, all of which will not exceed 49 percent, is seen as the government’s prefered route. This approach would be based on the model being carried out for IPTO, the power grid operator.

Insiders informed that Socar had wanted to abandon the DESFA deal long ago, from the time the European Commission intervened, in 2015, demanding that the Azerbaijani firm surrender at least 17 percent to a certified European operator, which limited Socar’s share to no more than 49 percent.

 

 

Gov’t to try and retain 51% of DESFA for state in new tender

The coalition and energy ministry will battle to retain a 51 percent stake of DESFA, the natural gas grid operator, for the Greek State in the new tender to be launched as a result of yesterday’s collapse of a long-running sale attempt offering 66 percent of the operator, sources have informed energypress.

“We did all that we could to finalize the sale and are now carrying on based on new conditions,” a ministry official commented.

For the time being, the coalition’s economic policy team will focus on reaching a decision next week on the percentage of DESFA to be offered in the follow-up sale attempt, which is considered certain as the operator’s sale is a bailout requirement.

Yesterday’s agreement collapse signaled the end of a marathon effort to sell DESFA’s 66 percent. The Azerbaijani energy firm Socar had emerged as the winning bidder for 66 percent of the operator in 2013. The European Commission eventually intervened over competiton concerns and demanded that the candidate buyer surrender at least 17 percent to a certified European partner, which brought Italy’s Snam into the picture as a partner in the deal.

The failed sale attempt creates a hole in the budget at TAIPED, the state privatization fund. The next set-up for the DESFA sale will need to be decided in conjunction with the country’s lenders. The details remain to be seen.

Lender demands for NOME auctions to prevail with some concessions

A demand by Greece’s lenders for an increase in the amount of electricity the main power utility PPC must offer to the market through the just-introduced NOME auctions appears to have prevailed in negotiations with Greek officials. However, it is believed that certain concessions have been provided to satisfy the Greek side.

The latest draft of the agreement, obtained by energypress, states that NOME auctions to be staged next year must include an amount representing 12 percent of consumption in 2016 as well as a repeat of an amount offered in 2016 (8 percent of consumption) at an auction to be held next September.

The Greek side seems to have gained the entry of RAE, the Regulatory Authority for Energy, into the procedure determining the NOME auction electricity amounts, which will facilitate revisions should PPC’s market share contraction exceed targets set.

The NOME auctions, introduced in October, 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.

The Greek side, according to the latest draft, also appears to have avoided a demand by lenders calling for a resetting of the NOME auction starting price as of January. This would have factored in the CO2 emissions allowance price for 2016 and prompted a lower starting price. The starting price will be revised annually, every June.

As for the ongoing sale of a stake in PPC’s subsidiary firm IPTO, the power grid operator, a revision made to the schedule will require PPC to sign an agreement with China’s SGCC, the strategic investor acquiring a 24 percent stake of IPTO, before the transaction is finalized.

 

 

PPC waits for NOME outcome to launch client-portion sale

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.

Gov’t exploring options as it waits for DESFA buyer reply

The Greek government is anxiously awaiting a response from Azerbaijani energy firm Socar to its slightly improved offer concerning the 66 percent privatization of DESFA, Greece’s natural gas grid operator, while also exploring alternative options should the procedure sink, a prospect the government does not wish but which is highly likely.

The deadline, determined by a letter of guarantee provided by Socar, expires later today.

According to energy ministry sources, Greece’s new proposal forwarded to Socar and Snam, the Italian firm which has joined Socar as a partner for the deal, improves the market value of DESFA and places emphasis on recoverable amounts concerning investments made between 2006 and 2015. It remains unclear whether the improvement has satisfied the prospective buyers and to what extent.

An answer is expected within the next few hours. Rumors which floated about late last night gave the DESFA sale attempt little hope, which is why the government is already preparing alternatives.

The long-running DESFA sale attempt’s failure would affect the government’s second-review bailout negotiations with the lenders. The DESFA sale is a pending issue from the bailout’s first review. Failure to privatize now would also harm the country’s credibility in the eyes of investors. The tender’s failure would also negatively impact Greece’s wider relations with Azerbaijan and a number of energy project prospects such as the TAP natural gas pipeline, now under construction. Both Socar and Snam hold stakes in the TAP consortium. In addition, the country’s privatizations revenue coffer would be deprived of 180 million euros, which is the Greek State’s share of the 400 million sale price. The other 220 million would end up at ELPE (Hellenic Petroleum).

To minimize the fallout of a failed sale attempt, the government will need to relaunch a new DESFA tender as soon as possible. Government officials are already exploring plans to once again offer a 66 percent stake of DESFA or, alternatively, retain 51 percent for the Greek State and offer a total of 49 percent to a strategic investor and investors via the bourse. This latter option is based on the sale plan currently being carried out for IPTO, the power grid operator.

According to sources, other prospective investors seem ready to surface should the tender be relaunched from scratch.

Belgian natural gas grid operator Fluxys, also a TAP project shareholder, is likely to emerge as a potential buyer in association with Romania’s Transgas. Last week, representatives of these two firms, accompanied by their respective ambassadors to Greece, appear to have held talks with officials at ELPE, selling its 35 percent stake of DESFA as part of the 66 percent on offer. Fluxys and Transgas are believed to be interested in acquiring a 30 percent share of DESFA if Greece fails to reach an agreement with Socar and Snam.

The recently appointed energy minister Giorgos Stathakis appears to favor keeping grid management under the Greek State’s control. He is expected to promote the option based on the aforementioned IPTO plan and seek to sell 49 percent of DESFA.

Prime Minister Alexis Tsipras will need to decide on the next step should the current DESFA sale attempt sink.

NOME revision still unresolved, negotiations continuing

A Greek compromise proposal seeking to contain the amounts of electricity main power utility PPC must offer to the local market through the just-introduced NOME-type auctions was not discussed in detail during last night’s crucial Euro Working Group session, leaving the matter unresolved, sources told energypress.

Though included in the bailout’s second review, the matter is not expected to bring the review to a standstill, the sources noted.

Negotiations for the NOME auction’s details will continue via teleconferences and emails between Greek government officials and the creditor representatives.

The two sides will push for a solution over the next few days, on time for the next Eurogroup meeting of EU finance ministers on December 5.

It remains unknown whether Greece’s compromise offer will be accepted. The lenders have called for 46 percent of PPC’s overall electricity production – meaning roughly 80 percent of the utility’s lignite-fired and hydropower output – to be offered to the market through NOME-type auctions by 2019.

The Greek side has not accepted this request, which would lead to the supply of greater electricity amounts through the NOME auctions. Local officials argue that a bailout-related agreement requiring market share losses at PPC should not be linked with the electricity amounts offered through the NOME auctions.

Greek government officials contend that the amounts offered through the auctions should only partially cover the total amount of electricity traded by independent suppliers.

 

All possible with DESFA sale deadline just two days away

The level of urgency surrounding the DESFA sale attempt has intensified now that it has become known that the country’s lenders have elevated the matter by noting the sale needs to be kept alive if the Greek bailout’s second review is to be completed.

Just two days remain before the November 30 deadline, determined by a letter of guarantee provided by Socar, the Azerbaijani energy company which has been joined by Italy’s Snam for a 66 percent stake of DESFA. All is possible at this stage.

Certain officials closely associated with the negotiations have expressed strong doubts about the chances of an agreement following the rejections, by both sides, of various proposals made.

Socar has kept the sale process alive by offering two successive one-month extensions to its letter of guarantee.

Troubled by the lack of progress, the Greek side appears to have asked for a further deadline extension, which indicates that convergence is still a long way off.

Should the prospective buyers reject an extension request, the current international tender, from which Socar emerged as the winning bidder in 2013 with a 400 million-euro offer for 66 percent of DESFA, will be terminated, creating the need for a new tender to be launched. This would create problems for the Greek bailout’s second review.

The Greek side appears to be discussing a further concession by increasing the operator’s long-term revenue potential. This would be created by adding interest to recoverable amounts concerning investments made between 2006 and 2015, which, in turn would increase tariffs and revenues for the operator’s shareholders.

 

Decision on NOME compromise proposal likely today

A decision on Greece’s compromise proposal for the amounts of electricity main power utility PPC will need to offer to the local market through the just-introduced NOME-type auctions may be reached at a crucial Euro Working Group meeting today following the failure by government officials and lenders to reach an agreement during talks yesterday that went on until late last night.

Greek officials are seeking a compromise solution to a proposal forwarded by the lenders that calls for 46 percent of PPC’s overall electricity production – meaning roughly 80 percent of the utility’s lignite-fired and hydropower output – to be offered to the market through NOME-type auctions by 2019.

The NOME issue is not expected to pose a threat to the bailout’s second review if the negotiating sides fail to reach an agreement at this stage.

The Greek side has not accepted the request by lenders for greater electricity amounts through the NOME auctions. Local officials argue that a bailout-related agreement requiring market share losses at PPC should not be linked with the electricity amounts offered through the NOME auctions. Greek government officials contend that the amounts offered through the auctions should only partially cover the total amount of electricity traded by independent suppliers.

Greek officials are looking to secure a compromise deal that would secure sufficient electricity amounts through reasonable production quotas.

The objective of the just-introduced NOME auctions is 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.

 

 

 

Gov’t, PPC seeking compromise on NOME auction amounts

Energy ministry officials are seeking a compromise solution to the higher electricity amounts the country’s lenders want offered through Greece’s NOME-type auctions, a pending energy-sector prior action in the bailout’s ongoing second review.

A proposal forwarded to the Greek government by the lenders calls for 46 percent of main power utility PPC’s overall electricity production  – meaning roughly 80 percent of the utility’s lignite-fired and hydropower output – to be offered to the market through NOME-type auctions by 2019.

The objective of the just-introduced NOME auctions is 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.

The Greek side has yet to accept the request by lenders for greater electricity amounts through the NOME auctions. Local officials argue that a bailout-related agreement requiring market share losses at PPC should not be linked with the electricity amounts offered through the NOME auctions. Greek government officials contend that the amounts offered through the auctions should only partially cover the total amount of electricity traded by independent suppliers.

At present, Greek officials are pushing for a compromise solution that may satisfy all sides involved.

The bailout’s terms, requiring electricity auction amounts to be offered as a percentage of last year’s total consumption in Greece, set the annual proportions at 8 percent for 2016 (460 MWh) and 12 percent for 2017 (675 MWh).

However, the lenders are interpreting these terms differently. They are now demanding that a 20 percent proportion, the total of 2016 and 2017, or 1,135 MWh, be offered through the auctions next year. This essentially means that this year’s amount of 460 MWh, made available and absorbed last month through the inaugural NOME auction, will need to be offered for a second time in 2017, as an additional amount to the 675 MWh PPC must auction off in 2017.

Regardless of the finalized NOME electricity amount, PPC officials, convinced that the auction process will severely affect the corporation’s financial figures, are forging ahead with a plan to try and split and sell a new splinter company with existing clients on board, as a way of achieving bailout market share reduction targets set for the utility.

“We continue to believe this proposal is sustainable and are pursuing its actualization,” a PPC official told energypress.

Gov’t officials deny claims of lender push to sell PPC’s 25%

Government officials have denied reports claiming the country’s lenders are pushing for the sale of a 25 percent share of main power utility PPC, which strongly suggests that the privatization of a 17 percent stake is in the making.

“At no point during negotiations with the lenders was the sale of a 25 percent share raised,” remarked one highly ranked energy ministry official in comments to energypress, who ruled out that such a prospect was raised during Tuesday’s late-night negotiations, held as part of the bailout’s second review.

TAIPED, the State Privatization Fund, currently preparing its latest Asset Development Plan (ADP), which is updated every six months, is not expected to unveil any surprises.

This means that roughly 17 privatizations will be included on the updated ADP list, including a 17 percent share of PPC, 65 percent of DEPA (Public Gas Corporation) and 35 percent of ELPE (Hellenic Petroleum), as listed in the most recent ADP list, released last May.

The updated ADP list is not expected any sooner than next week. It still needs to be approved by the TAIPED board. This will then be followed by the announcement of tenders for the hiring process of consultants to oversee pending privatizations.