PPC's dominant position in local market returns to the spotlight

Greece's creditors have raised the issue of Public Power Corporation's dominant position in Greece's wholesale and retail markets, sources said after staff-level meetings conducted in Athens this week.

This appears to point to negative developments for Greece's electricity giant: These may range from the renegotiation of power auctions on the basis of the obligation to concede even larger quantities of cheap energy to PPC's competitors, so that they can compete with the utility on more favorable terms, to the imposition of new measures, such as the obligation for it to sell hydroelectric units too.

The creditors suggest that PPC's abuse of its dominant position in the retail market is evident in the utility's pricing policy, which does not fully reflect the various costs of electricity, and the 15 percent discount offered to customers who pay their bills on time. The...

Continue reading on: