Troubled state mining company Larco will continue to operate, at the expense of Public Power Corporation, as the pre-election mood dominating local politics means it is unlikely the utility will secure terms for the payment of its dues that currently exceed 300 million euros.
This is despite PPC’s previous threats to cut Larco’s supply and terminate their contract.
The political cost in what is a sensitive period has prevailed over the interests of PPC, its shareholders and consumers who pay their bills, as at last Tuesday’s board meeting the utility’s management proposed a new two-year contract to supply Larco with electricity at a generous 24 percent discount.
This is only covered by guarantees that secure no more than the payment of current bills.
An agreement regarding most of the more than 300 million euros that Larco owes PPC is seen being reached at some point this year.
At the moment there is only the provision for the offsetting of 88.69 million euros of debts for the period from January 2017 to November 2018 through monthly deliveries of 16,000 tons of lignite from the Servia mine in Western Macedonia to the power plants at Kardia and Amyntaio.