PPC hit with EU antitrust charges of selling below-cost electricity (updated)

Public Power SA

07/02/2024 14:44

(Adds PPC comments, details)
    By Foo Yun Chee
       BRUSSELS, Feb 7 (Reuters) - Greece's largest power
utility Public Power Corp  DEHr.AT  was charged by EU antitrust
regulators on Wednesday with selling electricity in the
wholesale market below cost to thwart rivals, a move which could
lead to a hefty fine for the company.
    The European Commission said the anti-competitive practice
took place between 2013 and 2019 when PPC abused its dominance
in the Greek wholesale electricity market by selling electricity
generated by its thermal plants at prices below their variable
costs.
    It sent a statement of objections outlining its charges to
PPC on Wednesday. The charge sheet followed an investigation
opened in March 2021 into the company, in which the Greek
sovereign wealth fund HCAP holds a 34% stake. 
    "The suspected effects of this alleged conduct on the Greek
wholesale market for electricity were that independent power 
providers were marginalized and investment into more 
environmentally friendly energy sources was deterred," the EU
competition enforcer said in a statement.
    It said such action could have prevented independent power
providers from expanding at the retail level. 
    "Therefore, PPC's conduct may have led to higher prices for
Greek consumers, as well as higher emission levels of local
pollution," it said.
    PPC said the allegations were related to a period before 
Greece's power market revamp and the utility's transformation
into a modern company.
    In a bourse filing, it said: "PPC will continue to cooperate
with the Commission and take all appropriate and necessary steps
to defend its rights."
    Companies can face fines as much as 10% of their global
turnover for breaching EU antitrust rules.

 (Reporting by Foo Yun Chee; Additional reporting by Angeliki
Koutantou in Athens; Editing by Jan Harvey)
 ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters
Messaging: foo.yunchee.thomsonreuters.com@reuters.net))