News from HAEE | June 2018
News from HAEE | June 2018

Utilities are in need of a new model (Financial times) 

Around the world, the energy sector is suffering from chronic underperformance. Over the past 10 years, energy utilities across the world have delivered average cumulative shareholder returns of just 1%. The figure comes from an interesting new paper from McKinsey, which looked into 50 publicly listed utilities. By comparison, the performance of a global index of overall corporate performance showed a gain of 55%. 

Investors have had a tough time. Many of the companies in the survey have lost value, some considerably. Centrica of the UK has seen its share price fall 50% over the past four years. French EDF has lost 65% of its value since the 2005 initial public offering. Despite some recent recovery, the German utility RWE is worth slightly more than a fifth of its peak value 10 years ago.

 

PPC: 6 expressions of interest 

Public Power Corporation (PPC), Greece’s dominant power utility, has received six expressions of interest for about 40% of its coal-fired capacity that is being sold under Greece’s international bailout.

The groups which submitted interest for three coal-fired units and a licence to build a new one are the folloing:

  • GEK-Terna
  • Mytilineos
  • Elvalhalkor
  • Damco in a joint venture with China’s Beijing Guohua power Company
  • Two Czech companies - Indoverse Coal Investments and Energeticky Prumyslovy Holdings

 

Motor Oil buys 90% of NRG

Motor Oil Hellas has reached a takeover agreement with the independent power supplier NRG, one of the retail electricity market’s smaller players, entailing the acquisition of a 90% stake, as the energy group has announced. The acquisition will enable Motor Oil Hellas to enter Greece’s retail electricity market and broaden its overall presence in the country’s energy sector.

DEPA (wholesale and retail supply) sale on November 2018 

Greece will launch a tender in November of 2018 to sell a majority stake in gas company DEPA’s commercial operations, according to the country’s privatization agency (HRADF).

Greece has agreed with its foreign creditors on DEPA’s privatization plan, which involves splitting DEPA into two entities, one covering its wholesale and retail gas supply business and the other one its distribution network and international activities.

 

Gastrade presents LNG project in Alexandroupolis 

Gastrade presented the LNG Project in Alexandroupolis during the International Exhibition "Posidonia 2018" in Athens. The Project will ensure new gas quantities for the Greek and regional markets of Southeastern Europe, contributing at the same time to the expansion of gas supply sources and routes, the promotion of competition for the benefit of the final consumers, security of supply in Greece and the Balkan countries as well as to improve the reliability and flexibility of the National Natural Gas System and the regional and trans-European systems.

 

Foundation of the Greek Energy Exchange 

The Greek Energy Exchange Company has been founded in June. LAGIE, the Electricity Market Operator, was scheduled to hold a general meeting last week to formalize decisions concerning the energy exchange company’s establishment.

LAGIE, IPTO, the Power Grid Operator and DESFA, the Natural Gas Grid Operator, participate in the new company with an overall 49%, while private-sector enterprises, including the European Bank for Reconstruction and Development (EBRD) and the Athens Stock Exchange, the new exchange’s main shareholder, will control a majority of 51% stake.

 

Eurogroup reaches agreement on final loan tranche and Greek debt relief

The Eurogroup ministers reached an agreement on the size of the last loan tranche to Greece and debt relief measure, early on last Friday morning, according to a Eurozone source in Luxembourg. Privatizations, the financing of the Renewable Energy Sources support fund and the auctions of the PPC’s lignite and hydroelectric production units are some of the main targets of the Greek policy from now on.