Stasis (PPC): New single price per kilowatt hour after the abolition of the adjustment clause

In its redesign pricing policy from the beginning the PPCin view of the implementation from 1 July of the new operating system of the electricity market with abolition of the adjustment clause and the establishment of a single price per kilowatt hour.

“We are called to set a price, we will apply the law and we will announce our tariffs before their implementation,” said the president and CEO of PPC, George Stassis answering questions at the general meeting of shareholders.

He added that with this reasoning, there is no question of discounts like the ones that were applied until now.

According to the relevant provision, all electricity suppliers will have until July 10 to announce the electricity tariffs that will take effect from August 1st.

The head of PPC pointed out that the new system allows PPC to have a normal profitability in production and also helps in marketing, with the difference that PPC will now assist all consumers (since the financial surplus of production will be transferred to the Energy Transition Fund) and not only its customers (now the surplus of production subsidizes the discounts to the customers of the company).

The president and CEO of PPC reiterated that the increased profits from the electricity generation activity in 2021 financed the reduction of retail tariffs with the discounts applied (total subsidies to customers reached 800 million euros). Referring to the extraordinary contribution estimated at 200 million euros, he noted that although it will have an impact on the final results (not on operating profitability), an effort is being made to cover the difference from other sources. He also added that the money from the special contribution will be used for subsidies to consumers and in this sense will improve the collection.

Regarding the possibility of interruption of the flow of Russian natural gas, Mr. Stassis pointed out that the company has made preparations by securing lignite reserves and alternative fuels, and limiting the use of hydroelectric plants so that there are water reserves. He stressed, however, that in the event of a disruption there would be a significant increase in prices and European countries would be called upon to limit consumption.

In the context of his position at the general assembly, the head of PPC also noted the following:

• If PPC had not taken steps to consolidate and had not faced the very difficult situation in 2019 that put its survival in doubt, it could not withstand the crisis, support its customers and implement the investments it makes. PPC today is strong and able to face the crisis.
• Next winter will be better than last year. We are going through a difficult energy crisis, we will reach the end with “scratches” but stronger.
• The PPC share is an excellent opportunity. Within a month, we will propose a share repurchase program to the general meeting of shareholders.
• One reason for the attacks on the company is the fact that it now has a stronger impact on the market.
• The recurring operating profitability this year, despite the crisis, will be maintained at the level of 2021, ie 872 million euros.

The general assembly approved the non-distribution of dividend for the year 2021, an issue on which Mr. Stassis underlined that according to the business plan the company has committed to distribute a dividend from the year 2023 onwards.

“It closes a cycle of restoring the health of the company and opens a new cycle of development with new perspectives. We continue our development and investment plan which is the only way out of the crisis “concluded Mr. Stassis.

The general meeting of shareholders approved today the re-election of Mr. Stassis as managing director of PPC for the next three years, until August 2022. The election of Messrs. Al. Fotakidis (head of CVC Capital Partners in Greece) and Gr. Dimitriadis (head of the super fund) on the company’s Board of Directors.

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