PPC power plant rental to come with full control

Greece’s creditors are pressuring the government to improve the terms on which private sector firms lease some of the power production plants of Public Power Corporation (PPC) as a part of the state’s commitment to open up the local electricity market to competition.

Following the deal on the concession of stakes in the grid operator (ADMIE), the next major issue in negotiations with the creditors concerns the reduction of PPC’s market share by 25 percent up to 2018 and by 50 percent up to 2020. The August agreement provides for lignite and hydroelectric power capacity auctions by PPC, while the scenario of a PPC offshoot known as “Small PPC” (complete with plants, transmission network and clients) remains on the table.

PPC and the energy market in general realize that hopes for a separated and privatized Small PPC remain, but they all estimate that the auction model will not lead to the attainment of the liberalization targets set by itself. The creditors are saying that for the auctions to meet the targets, they must also offer investors full control over those plants owned and staffed by PPC.