In a joint effort with the Government to reduce industrial energy costs, Greek Public Power Corporation (PPC) plans to offer discounted electricity prices to industrial consumers. PPC’s ability to fulfill this plan will mainly depend on its compensation request forwarded to the European Commission for the company’s gradual withdrawal of its lignite-fired power plants between 2021 and 2023.
PPC has requested compensation of 200 million euros per year. However, the Commission’s decision on this matter is not expected before the end of November.
According to experts, Greece cannot be expected to adopt a mechanism offering state-controlled PPC’s rivals access to lignite-based output if the European Commission refuses to approve cost-offsetting measures for the company, as has been the case in other EU member states.
Whatever the outcome, state-controlled PPC seems determined to support the industrial sector by minimizing its profit margin for new electricity supply contracts, which will come into effect in January 2021. However, PPC was adamant that it will not sell electricity below production cost to any industrial consumer.
