ECONOMY

PPC and DEPA restructuring

The restructuring of energy companies Public Power Corporation (PPC) and Public Gas Corporation (DEPA) will determine the liberalization potential in the markets of electricity and natural gas that is already under way. The government has reportedly examined similar plans for the two corporations that have been frozen due to the elections and postponed until the government is sure of winning another term for after September 16. As far as PPC is concerned, the government has examined all possible options, with the favorite being that of a second set of shares going on sale along with looking for a strategic partner. This scenario, say competent government officials, serves two purposes at the same time: the restructuring of PPC and the liberalization of the market. With the entry of a large portion of shares on the stock market, they say, the greater spread of shares is secured, while the search for a strategic partner will bring the liberalization of the local electricity market closer, which is also a key objective in this government’s policy. Nevertheless, for the promotion of the plan for the further restructuring of PPC, a new legislative act is required to allow the reduction of the state’s stake in the company’s share capital to under 51 percent. For DEPA, it is certain that it will get listed on the Athens Exchange. The company already operates under its new form. The government plan provides for the flotation of the commercial arm of the company but the portion to go on sale is yet to be determined. Estimates put it at around 30-35 percent of the share capital. Among the issues the government recently discussed are PPC’s option of participating in DEPA with a 30 percent stake as well as its debt to DEPA which amounts to 80 million euros from natural gas supply at the state Phosphoric Fertilizers Industry. According to a recent statement by PPC President and CEO Takis Athanassopoulos, the company is at the moment examining the extent to which it would benefit from taking its option to participate in DEPA with a 30 percent stake. Hellenic Petroleum also owns 35 percent of DEPA.

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