Acceleration of landmark privatization projects and opening of the Greek energy markets to competition

When state monopolies cannot be confined with purely regulatory means, another solution is their privatization. The government seems determined to accelerate the implementation of three major privatization projects in the energy sector.

• The government is determined to split the Public Gas Corporation (DEPA) to trading and infrastructure and proceed with the sale of a majority shareholding of both parts - that will require the amendment of the existing legislation.

• Furthermore, it is intended to accelerate the sale of the State shareholding in Hellenic Petroleum (ELPE), although it is not yet decided whether the State will maintain or not a minor stake in the company and whether the sale will be realized via the Stock Exchange. Hellenic Petroleum is a major player in the Greek oil and energy markets and operates one of the two refineries of the country, the other being owned and operated by Motor Oil.

• Finally, the government intends to move with the privatization of the subsidiary of PPC managing the electricity distribution network (DEDDIE), although this operation is in less advanced status. The government waits for the opinion of experts that PPC will hire in order to propose the most adequate privatization method. It is worth noting that it is not excluded, in view of the divestment, to split DEDDIE into several undertakings corresponding to the various geographical areas of Greece and thus create several local distribution networks that will be operated by the prospective investors.