Cred­i­tors: Sell 40 pct of PPC plants

Kathimerini English - - Focus - BY CHRYSSA LIAGGOU

A pro­posal pre­sented to the Greek gov­ern­ment by its in­ter­na­tional cred­i­tors for open­ing up the elec­tric­ity mar­ket pro­vides for the sale of 40 per­cent of Public Power Corporation’s lig­nite and hy­dro­elec­tric plants, on a tight sched­ule that sees a con­sul­tant be­ing hired by Au­gust and com­ple­tion of the process by July 2018.

The pro­posal is in­cluded in a draft mem­o­ran­dum of un­der­stand­ing sent by Greece’s cred­i­tors as an al­ter­na­tive mea­sure for open­ing up the field of en­ergy if the set tar­get is not met through power auc­tions. An as­sess­ment of the power auc­tion’s ef­fi­ciency is be­ing rec­om­mended for June, though not by the Reg­u­la­tory Au­thor­ity of En­ergy (as the bailout agree­ment pro­vides) but by the cred­i­tors them­selves, in co­op­er­a­tion with the Greek au­thor­i­ties.

The cred­i­tors are de­mand­ing that when an agree­ment is reached on the sec­ond bailout re­view, this should de­scribe the mea­sures needed. It also wants to see th­ese mea­sures leg­is­lated by the sum­mer. In re­gards to the power auc­tions, the cred­i­tors re­main adamant in their tar­gets for the PPC lig­nite and hy­dro­elec­tric power that needs to be auc­tioned: There­fore, 20 per­cent of out­put has to be auc­tioned off this year, against 8 per­cent in 2016, ris­ing to 33 per­cent in 2018 and 2019.

The doc­u­ment sent by the cred­i­tors also can­cels PPC’s plans for part­ner­ships with pri­vate in- vestors, as it stip­u­lates that the buy­ers of the units that will be put up for sale should have no con­nec­tion to the state. It also says noth­ing about the sale of part of PPC’s clien­tele as an al­ter­na­tive struc­tural mea­sure, which means the cred­i­tors have re­jected the main PPC strat­egy for open­ing of mar­ket re­gard­ing the set-up and con­ces­sion to third par­ties of two com­pa­nies with a clien­tele rang­ing from in­dus­tries down to do­mes­tic con­sumers.

As for the 17 per­cent stake in PPC, the cred­i­tors are re­ject­ing the gov­ern­ment’s idea for its trans­fer from state sell­off fund TAIPED to the new hy­per­fund for pri­va­ti­za­tions; in­stead they pre­fer the im­me­di­ate procla­ma­tion of a ten­der for its sale.

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