Large tariff increases Needed (10-15%) for the rescue of PPC

A highway to ensure the viability of PPCs consider the increase in the company’s invoices. Indeed, they stress in the economistas that the increases should be made as soon as possible and be significant, 10% – 15%, in order to effectively address the financial problem of PPC.

“The new government that will emerge from the 7 July elections will have to deal with PPC for at least a month seriously,” says a senior official, who points out that, in addition to the known economic problems, bleeding “of medium-voltage customers to private suppliers, which has reached 50% of the clientele of commercial and industrial customers.

The increase in tariffs, the same source notes, will not seriously affect PPC’s competitive position in the market, as alternative providers will go on increases.

According to the recent Commission report, PPC’s financial results for 2018 have shown a sharp drop in profitability and a worsening of cash flow problems, which means that decisive efforts are needed to address structural problems, including adjusting pricing policy and the collection of arrears.

The issue of raising tariffs is a matter that has been raised several times by PPC’s administration, but so far it has met the government’s denial.

At the beginning of the year PPC chairman and CEO Manolis Panagiotakis once again called for the need to raise tariffs, albeit at a one-digit rate, noting that “the company can not afford any more without passing on part of the increased operating costs its consumption. “

“Safari” for debts

Meanwhile, a “safari” for the collection of overdue debts from electricity consumption has begun by PPC, with the dispatch of extras to those who have debts of more than 3,000 euros and with the first target of repaying debts of so-called final customers amounting to 1,05 billion. euro. By the end of the summer a target of at least EUR 400 million has been set.

In detail, in respect of DEH due arrears, the data is as follows:

  • The total debt, together with the debts of the large (High Voltage) industries and the debts settled, amounts to € 2.7 billion.
  • Of the 2.7 billion, 1.05 concerns the 890.000 final customers, which include four categories of consumers: closed and non-electrified cottages, consumers who have switched to electricity, businesses that continue to operate with a new VAT and consumers who have switched to the universal service (PPC cut their electricity, found no other supplier and electrified with an increased tariff), which are estimated at 200,000.

According to the figures, the 65,000 to 70,000 final customers owe more than € 3,000 each and total more than € 700 million. In this category, the emphasis will be placed on the collection of debts by the creation of a special mechanism, which is under way. In particular, approximately 40 contract workers will be recruited to prepare the debt files by region (Athens, Thessaloniki, rest of Greece), and the cases will be assigned to law firms that will be required to sue their debts by any means.

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