Power sector deregulation, PPC discussed by ministers

A meeting between Finance Minister George Papaconstantinou and Environment, Energy and Climate Change Minister Tina Birbili on Wednesday focused on the further privatisation of the listed Public Power Corp. SA (PPC SA) as well as power sector deregulation. The finance ministry’s medium-term fiscal policy framework provides that up to 17 pct of the PPC shares will be sold in 2012 (limiting the shares owned by the state from 51 to 34 pct). However, public control and management of the PPC will be maintained. Details will be unveiled by May 15.

Meanwhile, the process for the deregulation of the country’s power market is underway, providing for electricity exchange between PPC and private companies, allowing PPC competitors to have access to 40 pct of lignite-produced electricity.

Birbili has previously expressed a view that the two procedures (lignite-fired power generation and privatization) cannot take place simultaneously, considering that access to lignite electricity production will lead to a depreciation of PPC share prices.