On Tuesday 17 April, the European Commission decided to make the measures proposed by Greece to guarantee competitors of Public Power Corporation (PPC) fair access to the production of electricity from lignite, which fall partially within the framework of the third monitoring mission of the third bailout plan, legally binding.
On 5 March 2008, the European Commission returned a decision in which it considered that Greece had granted PPC, the incumbent public electricity operator, privileged access to lignite, thereby breaching EU competition rules (see EUROPE 9616). Following an initial judgment of the General Court of the EU, a judgment of the Court of Justice of the European Union and a second judgment of the General Court of 2016, these decisions were made binding.
On 19 January of this year, Greece therefore proposed corrective measures to remedy this breach of EU law. Amongst other things, these measures involve PPC divesting certain lignite-powered units. This will also concern the necessary employees and lignite mines. The operation was proposed to the institutional creditors of Athens (European Commission, European Stability Mechanism, European Central Bank) in the framework of the conclusion of the third monitoring mission of the third bailout plan (see EUROPE 11944).
Having consulted the market players, the Commission considered that the measures proposed respond to its concerns, as they promote competition on the wholesale electricity market in Greece. It also considered that they comply with the environmental objectives of the EU on the reduction of CO2 emissions up to 2020.
The institution has therefore decided to approve the measures. PPC now has until the end of May 2018 to launch a tendering procedure concerning its assets, in order to bring the measures into being. (Original version in French by Lucas Tripoteau)