Greece, Due to preparations for signing a supply contract with Elpedison, ELPE is leaving PPC

, SEE Energy News

Greek oil refiner Hellenic Petroleum (ELPE), is preparing to end electricity supply contract with state-controlled Public Power Corporation (PPC) and to establish a new supply deal with Elpedison, its 50-50 joint venture with Italian Edison.

If this move is confirmed, Elpedison’s retail market share will make a gain to nearly 1.5 %. ELPE has a contract with PPC valid until 2023.

Last month, PPC signed supply agreement with Aluminium of Greece, a member of the Mytilineos group, which would be the final deal between the two companies following a 60-year association.

PPC and the industrial consumers still need to agree on the extent of a tariff increase, expected to be set at approximately 20 %. The new agreements are not expected to offer consumers discounts for punctual payments. Other details being discussed include how the respective profiles of industrial consumers will influence tariff agreements. Take-or-pay clause details are also still being negotiated.

This round of deals between PPC and industrial consumers will be the last involving fixed tariff agreements. From 2023 onwards, industrial consumer supply agreements with PPC will be subject to floating rates pegged to wholesale market costs.