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PPC’s restructuring on November 3, 2007

Posted by grhomeboy in Business & Economy, Energy.
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Electricity utility Public Power Corporation (PPC) yesterday denied media reports that it was shelving restructuring plans to become more competitive.

PPC has seen its market share and profit drop since Greece liberalized its energy market earlier this year under EU guidelines. PPC has said it plans to divide operations into separate units to stem the decline in earnings. “We categorically deny reports about withdrawing our business plan,” a senior official who declined to be named told Reuters.

The reports said the business plan, to be presented November 13, was being withdrawn for six months after protests from labor unions. PPC was set to detail its plan in October but delayed the announcement in the face of union protests.

PPC’s plan calls for the splitting of the company into units focused on power production, distribution and trading. The changes will streamline operations and help boost profits, the group says.

Union GENOP says such moves would be a prelude to the complete privatization of the state-controlled company, which they oppose. GENOP has called for a 24-hour strike on November 5 to protest against the plan. Rolling strikes will follow at later dates.

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