Leading figures in the electricity market paint a bleak picture of the industry, sounding the alarm about the sustainability of Public Power Corporation and the future of the sector.
PPC has failed to collect debts in excess of 2.5 billion euros from unpaid electricity bills, while its rates do not reflect production costs, the market professionals observe.
Therefore the dominant player in the market is operating on losses and withholding cash from the network operators at the same time, thereby spreading its liquidity problems to the whole electricity market.
If that is not resolved, and if PPC cannot stop being loss-making, the market cannot open up, the industry’s leaders warn.
That issue, combined with the absence of a stable regulatory framework for the operation of the market as envisioned, could evolve into a time bomb for the entire power industry, they say.
This was the worrying conclusion that the representatives of private electricity producers and suppliers as well as PPC itself reached during their participation in a panel discussion about the liberalization of the electricity market on Thursday in Athens.
The panel further agreed that power auctions do not assist in the strengthening of competition, while the issue of alternative suppliers’ access to hydroelectric plants was also raised.