PPC overhaul foresees partial sale of DEDDIE | Business

The new government’s strategic plan for streamlining and restructuring Public Power Corporation will start with the part-privatization of the Hellenic Electricity Distribution Network Operator (DEDDIE).

The plan, which forms part of the prime minister’s announcements in Parliament, will bring about the necessary transfer of grid-related assets from PPC to DEDDIE, so as to attract investors to the partial concession of the latter. A positive response would lead to an inflow of much-needed revenues into PPC that would, in turn, ensure its continued operation.

The distribution network currently belongs to PPC and will be transferred to DEDDIE before the part-privatization process, which will likely follow the same model as that used for the Independent Power Transmission Operator (ADMIE).

The realization of the plan requires the consent of banks, given that PPC assets also constitute collateral for the country’s credit system that over the last few years has been the main source of funding for the troubled corporation.

DEDDIE is currently the sole profit-making asset in PPC’s portfolio and contributes some 350 million euros in operating profits (EBITDA) per year.

Article source: http://www.ekathimerini.com/242834/article/ekathimerini/business/ppc-overhaul-foresees-partial-sale-of-deddie