Greece: Energy company PPC considers excluding production facilities from privatization

, SEE Energy News

According to the agreement with the country’s creditors, Greek state-owned Public Power Corporation (PPC) is obliged to enter a series of partnerships with private companies in order to reduce the company’s market share. But PPC’s management currently considers to exclude any production facilities from such partnerships and limit them to trade and supply activities only.

The bailout agreement envisages the reduction of PPC’s market share in electricity production below 50 %. As it is currently at about 60 %, the officials are considering the option of reducing the market share by closing down some of its old and obsolete production facilities.

However, PPC’s market share in the domain of electricity supply is almost 98 %, thus the company cannot avoid establishing partnerships, in which it would have minority stakes of between 30 and 40 %. The aim is to reduce the company’s market share in electricity supply below 50 % by 2020.

According to the bailout agreement, Greece’s creditors want that PPC offer at least 40 % of its electricity generation facilities to a prospective partnerships with one or two private companies, in which state-owned power utility would hold a minority 49 % stake and no management rights. The initial proposal included TPP Amyndeo 1 and 2, TPP Florina 1, TPP Komotini, several hydropower plants: Platanovrysi, Thisavros, Agra, Edessa, Pournari and five coalmines. The latest proposal by creditors include these assets and additional 10 % of electricity production facilities. The creditors also requested that all sales must be completed by 2017 and that PPC should begin its assets separation process by hiring a consultancy company by June 2016 at latest.

Elpedison and Mytilineos have previously expressed interest in establishing partnerships with PPC in both electricity production and electricity supply, transmits