RAE, the Regulatory Authority for Energy, has forbidden the operating-expense inclusion of bonus amounts offered by distribution network operator DEDDIE/HEDNO to its executives, a decision reached through the authority’s approval of the operator’s allowed regulatory income for 2021 to 2024 and required revenue for 2021.
The bonus amounts set aside by the operator for executives are worth a total of one million euros, for one year.
RAE rejected the inclusion of this amount in HEDNO’s operating expenses by pointing out that bonus payments for executives do not offer any benefits to users of the distribution network.
Distribution network operator DEDDIE/HEDNO will use Recovery and Resilience Facility (RRF) funds to cover a considerable proportion of an investment for capacity boosts at certain existing low and medium-voltage substations around the country to facilitate the entry of new RES units.
The capacity boost at these substations, it is estimated, will enable grid entry for new RES units with a total capacity of approximately 1,755 MW.
This prospective RES addition represents nearly 40 percent of the 4,640 MW in new RES unit entries planned for the achievement of National Energy and Climate Plan (NECP) RES penetration goals.
This DEDDIE/HEDNO investment will cost close to 30 million euros, of which 12 million euros will stem from the RRF.
Substations in the Peloponnese and Epirus, northwestern Greece, will be boosted by 250 MVA. Substations in the wider Athens area will be boosted by 100 MVA, such facilities in central Greece will be boosted by 200 MVA, and Macedonia and Thrace units in the north will be boosted by 250 MVA.
All project contracts are expected to have been finalized by the fourth quarter of 2023, while the projects are scheduled to be completed by the fourth quarter of 2025.
The energy ministry is preparing a legislative revision for the transfer of power utility PPC’s distribution network-related assets to subsidiary DEDDIE/HEDNO, the distribution network operator, required for the sale of a 49 percent stake in the latter.
The board at PPC recently reached a decision on the matter, paving the way for the energy ministry to prepare the legislative revision.
As previously reported, PPC has commissioned professional services company Grant Thorton for the asset evaluation, expected in August.
The legislative revision for the transfer of distribution network-related assets to HEDNO/DEDDIE is required as, until now, PPC, by law, has been permitted to incorporate the subsidiary’s financial results into the group results and also make balance-sheet entries of EBITDA figures concerning the operator.
According to the privatization’s schedule, the nine participating bidders, leading international funds, will submit binding offers within the first week of August.
Dates will then immediately be set for a general shareholders’ meeting for approval of the transfer of assets and the board’s approval of the preferred bidder.
Assuming procedures are not delayed, the sale of DEDDIE/HENO’s 49 percent should be completed within the third quarter of this year.
PPC’s board plans to focus on its international expansion strategy once this sale has been completed.