The Ministry of the Environment, Energy and Climate Change unveiled its plan for the restructure and privatization of state electricity company DEI. The deregulation of the energy market was one of the prerequisites for the June loan installment of 3.3 billion euros.
According to the Ministry the restructure plan will prepare the company of privatization and create the necessary circumstances for the development of healthy competition in a deregulated energy market. The restructure plan is comprised of three basic steps: unbundling the ownership of independent power transmission operator ADMIE, creating of a new subsidiary electricity company to be privatized and privatizing the parent company DEI.
The ownership unbundling of ADMIE will take place over two phases; the first one, which will take place in 2013, involves the introduction of a private investor through a capital increase who will also take over company’s management. The second phase will take place in the first trimester of 2014 and will require the investor to buy out the State from its involvement with ADMIE.
The next step will involve creating a new power company that is viable and competitive to DEI, which will “inherit” about 30% of electricity production units from DEI. This will include everything from lignite mines to hydroelectric plants and natural gas units. The new electricity company is expected to be fully operation by the first trimester of 2015.
Finally, TAIPED will assist in the privatization of the Greek state’s 17% stake in DEI (49% of shares are already available through the stock market). Preparations for this step will begin as soon as the new company’s rates are finalized. The competition for the privatization will begin in mid 2015, with the privatization estimated to be complete by the end of 2015 or early 2016.
