(Updates with minister’s comment in third paragraph.)
Dec. 29 (Bloomberg) -- Greece announced tariff increases of as much as 9.2 percent for Public Power Corp SA, to help the country’s biggest electricity company service its debt and remain profitable.
In exchange for the increases, PPC, as the company is called, must take actions including cutting operating expenses by an additional 10 percent to 15 percent and further reducing labor costs, the Energy Ministry said in an e-mailed statement today.
Without the increases and the cost cuts, “soon Public Power won’t be able to meet its loan obligations and its profitability is at risk,” Energy Minister George Papaconstantinou told a cabinet meeting in Athens today, according to the e-mail.
Public Power’s net income in the first nine months of the the year dropped to 90.8 million euros ($117.5 million) from 520.2 million euros a year earlier as expenses for fuel, natural gas and energy purchases rose 22 percent, the company said on Nov. 25. Public Power’s debt now stands at 4.5 billion euros, the Energy Ministry said today.
--With assistance from Tom Stoukas in Athens. Editor: Jim Silver
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