Greece unveils plan to privatise Public Power Corporation

16:19 15/5/2013 - Πηγή: Matrix24

The plan, presented by the ministry of Environment, Energy and Climate Change, has a timetable of completion by 2015 and is included in a memorandum of economic policy agreed with the troika. Ministry officials said the plan will raise revenue for the state through the privatisation of PPC, while it will also ensure the creation of healthy competition in the market and

the liberalisation of the electricity market in Greece.

More analytically, the plan envisages:

1. The separation and privatisation of the System Administrator paving the way for PPC’s exit from energy grid networks. In the first phase, to be completed this year, the plan envisages the entry of an investor through a share capital increase scheme offering up to 49 pct of the equity capital and the management. In the second phase, to be completed in the second quarter of 2014, the investor will be able to acquire at least 51 pct of the equity capital, with the state holding a statutory minority stake.

2. Creating a new vertical electricity company, which will own around 30 pct of PPC’s existing production capacity and new units, along with a relative percentage of PPC’s commercial activities. It will include lignite, hydro-electric and natural gas units. This project will be agreed on in consultation with the European Commission by the end of 2013, although early estimates are for 1,400 MW of lignite units, 500 MW of hydro-electric and 500 MW of natural gas units. The tender to sell the so-called “small PPC” will be made with the Hellenic Republic Asset Development Fund. These procedures are expected to be completed in the first quarter of 2015.

3. Privatization of PPC. Under the plan, the state will offer 17 pct of the company’s equity capital to a strategic investor – from 51 pct currently owned by the state. This process is expected to be completed by the end of 2015 or early 2016.

The plan for the restructuring and privatization of Public Power Corporation was presented by the government to the European Commission.

In a letter to the representative of the European Commission in the troika, Matthias Morse, Finance Minister Yiannis Stournaras and Environment, Energy and Climate Change Minister Asimakis Papageorgiou, underlined the benefits of the plan both to the Greek economy and the country’s energy market.

The two government ministers stressed that the plan was a very significant step towards improving competition of the Greek economy.

source: ΑΜΝΑ