PPC plans partial sale of its customer portfolio

PPC plans partial sale of its customer portfolio

Athens, June 24, 2016/Independent Balkan News Agency

By Spiros Sideris

PPC plans to sell part of its customer portfolio, creating retail companies with other suppliers to reduce its stake under the terms of the third memorandum, albeit smoothly, said the head of the Corporation Manolis Panagiotakis speaking at the conference of the Economist.

The first company to be created will get as dowry approximately 400,000 electricity customers and will be available for sale to private competitors electricity suppliers. It is planned to be ready in September.

The aim, he said, is to smoothly decrease of PPC’s market share, which according to the memorandum must be reduced to 50% by 2020 (currently above 90%) and cancel any prospect of destabilization of the company and of the electricity market overall.

The first company to be created with 400,000 customers (equivalent to 6-7% of the market) is expected to be ready in September, with more to follow.

Customers will be selected in a representative manner, which will include the less profitable categories and borrowers with overdue obligations.

The incentives offered by the PPC to make the “package” attractive include the provision of fixed wholesale market price of energy to the company, for a reasonable period.

The proposal, Mr Panagiotakis said, is aimed at those involved in the market in the long term and with a strategic planning and will give to PPC the timeframe to develop new markets to compensate for the loss of electricity.

He said that customers who are fastened to PPC (Public, high voltage, farmers, consumers with overdue obligations) today account for 55% of the market. Therefore, there is a risk of reducing the share of PPC could lead to the loss of all profitable customers.

Mr Panagiotakis also called for the “liberation” of PPC from government bonds, noting that through the company the state made social, insular, agrarian and fiscal policy.

The Vice President of the Italian Edison, R. Poti, referred to the proposal as interesting, noting that taxes and charges administered in previous years diminished the advantage for the consumer from the reduction of the wholesale price of electricity.

The president of Elpedison, Spiros Andreas, raised on his part the question whether the discounts 15% of PPC’s tariffs and the prohibition of changing supplier if there are arrears with the previous one, serve the purpose of reducing the share of PPC.

The Chairman of TERNA, Giorgos Peristeris, said the market restructuring is slow, with half measures and setbacks, and stressed the need to exploit the potential of renewable energies and promoting the islands interconnections.

General Energy Secretary, Michalis Verroiopoulos, stressed that numerous distortions and mechanisms outside of the market led in recent years to an increase of the cost of electricity, and announced that it would soon enter into consultation the bill to reorganize the electricity market that restores transparency and link the Greek with the European market.

The CEO of DESFA Konstantinos Xifaras also announced that tomorrow at Sidirokastro will be signed the interconnection agreement between Greece-Bulgaria gas transportation systems that will allow for cross-border trade through gas pipeline.