ECONOMY

Electricity suppliers shock market

The plug is about to be pulled on alternative power suppliers Hellas Power and Energa as they owe more than 200 million euros between them.

Not only did their acquisition by Russian-Arab fund Worldwide Energy Ltd fail to save them, but their possible default will jeopardize the opening up of the power market.

The two main alternative companies to giant Public Power Corporation (PPC) owe more than 120 million euros to grid operator DESMIE for the electricity they had acquired for their 200,000 clients, while their outstanding debts to PPC come to 67 million euros.

The firms? new owners, whose credibility is being scrutinized by the country?s competition and energy authorities, failed to honor their gentlemen?s agreement to pay the debts, made with the Energy Ministry. This has led to a number of emergency meetings with the participation of the Regulatory Authority for Energy since Wednesday.

There has also been widespread criticism in the industry regarding the authorities? belated response.