PASOK’s power play
A crucial ministerial meeting will take place today to decide the government’s strategy as regards the opening up of the electricity market after an aide to Prime Minister George Papandreou suggested yesterday that despite vehement union opposition, the liberalization scheme would go ahead. Environment, Energy and Climate Change Minister Tina Birbili is due to present the various options available to the government at a meeting of a special committee that will be chaired by Deputy Prime Minister Theodoros Pangalos. Birbili appears to have ruled out the possibility of selling off any of the Public Power Corporation’s electricity plants as a way of allowing private companies into the market, currently monopolized by PPC. Among the alternatives being considered to selling off power stations are letting private companies buy electricity from PPC at wholesale prices and then sell it on to consumers and allowing private firms to become involved in the construction and management of new units. The government is under pressure from European Union and International Monetary Fund officials to increase competition in the electricity supply market and has suggested selling off 40 percent of PPC’s production units. PPC’s powerful workers’ union, GENOP, has threatened to cause blackouts if the government decides to go ahead with this option. Yesterday, unionists suggested that PPC raise its prices in order to stave off any privatization plans. However, the government appears determined to liberalize the market and one of Papandreou’s aides, who preferred to remain anonymous, told reporters yesterday that «the unionists have not realized yet what needs to happen.» Perhaps emboldened by seeing off striking truck drivers, the government now seems ready for a showdown with GENOP unionists as well if necessary. «The kind of attitude they are showing belongs in the past,» said Papandreou’s aide. Sources said that the EU-IMF inspectors have given the government until the end of the year – not until next month as previously expected – to finalize its plans for the energy sector.
