The Public Power Corporation (PPC), Greece's power utility, is open
to cooperation with third parties for the production of power apart
from the 3,500 megawatts provided by its business plan.
PPC will
also seek at all cost penetration into the natural gas market, even if
the state, the main shareholder, vetoes its acquisition of 30 percent
of the Public Gas Corporation (DEPA).
As far as the proposed
electricity rate hikes are concerned, which average 21.7 percent, the
corporation expects additional revenues of -900 million per year over
the next seven years, which will fund part of the investment that is to
total -11 billion in the 2008-2014 period. The rest will come from new
client connection charges and from borrowing.
The above emerged
from yesterday's presentation of the PPC business plan for the next
seven years. The corporation's president and CEO, Takis
Athanassopoulos, reiterated at that meeting that he is not resigning
and that if the state rejects his proposals, he will produce some
better ones, always looking out for PPC's best interests. He added that
he has excellent relations with the Economy and Development ministries.
Regarding
the company's strategy for entry into the natural gas market,
Athanassopoulos did not rule out the possibility of PPC's exclusion
from the share capital of DEPA. He did add though that the clause of
PPC's entry for a 30 percent stake in DEPA should have been activated
years ago, as natural gas holds a significant part of the company's
energy balance, while PPC contributes 80 percent of DEPA's turnover. He
said that if the state decides PPC can not buy into DEPA, then PPC will
turn to alternative options it has already examined and are associated
either with its participation in a third natural gas company or with
the start of an independent activity. He also announced PPC's interest
in the development of city networks, with its possible participation in
tenders for the operation of new gas supply companies in central and
northern Greece.
On the rise in rates, Athanassopoulos
acknowledged that the increases are big but said: «I feel sorry that
for decades PPC had not taken a stance about the serious structural
problems this country has in its electricity production. Now PPC is
forced to act. The rate rises we have proposed are the slowest possible
in order to secure the investment in production and upgrade the network
to ensure power supply without problems for all Greeks.»
Union
representatives on the PPC board appeared vehemently opposed to the
proposals for rate rises. The representatives of the two union
factions, affiliated with the two main parties, said in a joint
statement that they disagree with the increases particularly for
domestic consumption and qualified Athanassopoulos's proposals as
«personal views,» as they have not been approved by the PPC governing
board.
Key points of the Public Power Corporation's new strategy
- Electricity rates that reflect the cost.
- Change in the
fuel balance by reducing lignite to 31.1 percent and the introduction
of coal up to 7.5 percent, as well as an increase in hydroelectric and
renewable energy source production at the expense of oil production.
-
Withdrawal of the old and low-output units with a total capacity of
2,400 megawatts and inclusion of new ones with a total capacity of
3,500 MW in the 2010-2014 period.
- Investment of 1.3 billion euro on
islands by which operational costs will drop by 35 percent, investment
of 2.8 billion euro in distribution networks and 1.4 billion euro in
transmission networks.
- Investment of 1.95 billion euro in renewable energy sources so that they obtain a 20 percent share by 2012.
- Foundation of six subsidiaries and separation of the transmission and distribution domains.
- Entry into the natural gas market with the acquisition of 30 percent of the Public Gas Corporation (DEPA).
-
Entry into the real estate market with the utilization of the
corporation's property, which is worth an estimated 1.4 billion euro.