PPC cash flow stops due to freeze in bill payments

Electricity customers have stopped paying their bills, resulting in a cash crunch for Public Power Corporation. Daily incomings have shown a rapid decline dropping close to zero, depriving the country’s main energy company of 20 million euros per day in revenues.

The situation is deteriorating with every day that passes, making it immediately necessary to use cash reserves to cover everyday financial obligations to contractors, suppliers, the grid operator etc.

Sources add that PPC’s management is contemplating withholding a 200-million-euro advance payment that is due for the new power production unit at Ptolemaida, in order to aid the smooth operation of the company.

The dilemma is said to be serious and there can be no definitive decision for the disbursement of the advance payment without political support from the government. In fact, the contractor responsible for the plant’s construction is also facing funding problems due the credit controls in Greece.