PPC to set up and sell two firms with its unpaid bills

Public Power Corporation is considering a plan for the securitization of customers’ expired debts to the company in a bid to fill its empty coffers.

After its "prepaid bill" program – offering consumers who pay a year’s worth of bills in advance a 6 percent discount – the power giant is resorting to a particularly expensive tool to bolster its liquidity.

Its unpaid bills add up to 2.5 billion euros – about half its annual turnover – and its total obligations to third parties exceeded 1.6 billion euros at end-2016.

Now PPC has asked PricewaterhouseCoopers to set up two retail firms to take on the expired debts, which will then be sold to investors.