PUBLIC POWER CORPORATION S.A.
FINANCIAL REPORT
(January 1
st
2021– December 31
st
2021)
The attached Financial Report of the fiscal year 2021, has been prepared according to article
4 of Law 3556/2007 and the executive Decisions of the Board of the Hellenic Capital
Market Commission, has been approved by the Board of Directors of “Public Power
Corporation S.A.” on April 5
th
2022, and is available for the investors, on the internet, at the
web site address www.dei.gr.
Public Power Corporation S.A.
General Commercial Registry: 786301000
Chalkokondyli 30 - 104 32 Athens
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PUBLIC POWER CORPORATION S.A.
ANNUAL FINANCIAL REPORT
INDEX
A. STATEMENT OF MEMBERS OF THE BOARD OF DIRECTORS ..................................................................... 4
B. EXECUTIVE SUMMARY OF THE BOARD OF DIRECTORS ............................................................................ 7
NON-FINANCIAL REPORT .................................................................................................................................. 45
C. AUDITOR’S REPORT ..................................................................................................................................... 142
D. NOTES ΤΟ THE FINANCIAL STATEMENTS ................................................................................................ 162
1. CORPORATE INFORMATION ................................................................................................................... 163
2. LEGAL FRAMEWORK ............................................................................................................................... 163
3. SIGNIFICANT EVENTS .............................................................................................................................. 171
4. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES................................................. 173
4.1. BASIS OF PREPARATION ........................................................................................................................ 173
4.2. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES ............................................................... 174
4.3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES ............................................................... 178
4.4. PRINCIPAL ACCOUNTING POLICIES ...................................................................................................... 181
5. DISCONTINUED OPERATIONS (DISTRIBUTION NETWORK) ................................................................ 197
6. REVENUES................................................................................................................................................. 200
7. PAYROLL COST ........................................................................................................................................ 201
8. ENERGY PURCHASES AND RELATED FEES ......................................................................................... 202
9. DEPRECIATION AND AMORTISATION .................................................................................................... 203
10. EMISSION ALLOWANCES (CO
2
) .............................................................................................................. 203
11. FINANCIAL EXPENSES ............................................................................................................................. 204
12. FINANCIAL INCOME .................................................................................................................................. 204
13. OTHER (INCOME) / EXPENSE, NET ......................................................................................................... 205
14. INCOME TAXES (CURRENT AND DEFERRED) ....................................................................................... 206
15. PROPERTY, PLANT AND EQUIPMENT, NET ........................................................................................... 211
16. INTANGIBLE ASSETS, NET ...................................................................................................................... 218
17. INVESTMENTS IN SUBSIDIARIES ............................................................................................................ 219
18. INVESTMENTS IN ASSOCIATES................................................................................................................. 222
19. BALANCES AND TRANSACTIONS WITH RELATED PARTIES ................................................................ 225
20. INVENTORIES .............................................................................................................................................. 230
21. TRADE RECEIVABLES, NET ....................................................................................................................... 231
22. CONTRACT ASSETS ................................................................................................................................. 233
23. OTHER RECEIVABLES, NET .................................................................................................................... 233
24. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE
INCOME .............................................................................................................................................................. 236
25. CASH AND CASH EQUIVALENTS .............................................................................................................. 236
26. SHARE CAPITAL AND SHARE PREMIUM .................................................................................................. 236
27. LEGAL RESERVE......................................................................................................................................... 237
28. OTHER RESERVE ........................................................................................................................................ 237
29. DIVIDENDS ................................................................................................................................................. 238
30. LONG-TERM BORROWING ....................................................................................................................... 239
31. POST-RETIREMENT BENEFITS ............................................................................................................... 243
32. PROVISIONS .............................................................................................................................................. 247
33. SUBSIDIES ................................................................................................................................................. 251
34. LONG-TERM CONTRACT LIABILITIES .................................................................................................... 251
35. IMPAIRMENT LOSS ON ASSETS ................................................................................................................ 252
36. TRADE AND OTHER PAYABLES ............................................................................................................. 252
37. SHORT-TERM BORROWINGS .................................................................................................................. 252
38. SHORT-TERM CONTRACT LIABILITIES .................................................................................................. 253
39. ACCRUED AND OTHER CURRENT LIABILITIES .................................................................................... 253
40. COMMITMENTS, CONTINGENCIES AND LITIGATION............................................................................ 254
41. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT ..................................................... 270
42. LEASES ........................................................................................................................................................ 274
43. DERIVATIVE FINANCIAL INSTRUMENTS .................................................................................................. 277
44. AMENDMENTS ........................................................................................................................................... 280
45. SECURITIZATION OF TRADE RECEIVABLES FROM ELECTRICITY SALES ........................................ 282
46. SUBSEQUENT EVENTS ............................................................................................................................ 284
APPENDIX I ....................................................................................................................................................... 285
NOTES TO THE UNBUNDLED FINANCIAL STATEMENTS ............................................................................. 296
1. GENERAL INFORMATION ..................................................................................................... 296
2. ACCOUNTING UNBUNDLING METHODOLOGY .............................................................. 296
E. USE OF PROCEED ........................................................................................................................................ 301
A. STATEMENT OF MEMBERS OF THE BOARD OF DIRECTORS
5
STATEMENT OF MEMBERS OF THE BOARD OF DIRECTORS
(According to article 4, par.2 of Law 3556/2007)
1. Georgios Stassis, Chairman and C.E.O. of P.P.C. S.A.
2. Maria Psillaki, Member of the Board of Directors,
3. Stefanos Kardamakis, Member of the Board of Directors
hereby
WE DECLARE
that, to the best of our knowledge:
a) the accompanying Financial Statements of the Parent Company and the Group, for the year ended December 31
st
2021,
which were prepared according to the International Accounting Standards – currently in effect- as adopted by the
European Union, truthfully depict assets, liabilities, equity and the statement of income of Public Power Corporation S.A.,
as well as the companies included in the consolidation, according to the provisions of article 4 of Law 3556/2007 and,
b) the accompanying Board of Directors’ Report truthfully depicts the evolution, performance and position of “Public Power
Corporation S.A.” and the companies included in the consolidation, as well as a description of the major risks and
uncertainties they face.
Athens April 5
th
2022
Chairman and C.E.O.
Member of the Board.
Member of the Board.
Georgios Stassis
Maria Psillaki
Stefanos Kardamakis
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B. EXECUTIVE SUMMARY OF THE BOARD OF DIRECTORS
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PUBLIC POWER CORPORATION S.A.
EXECUTIVE SUMMARY OF THE BOARD OF DIRECTORS
FOR THE FISCAL YEAR 2021
Dear Shareholders,
Following the end of the Public Power Corporation’s twentieth fiscal year as a Societe Anonyme, we have the honor to submit
for approval, according to the Company’s statutes, the financial statements for the year ended December 31
st
2021, as well
as, our comments on the respective statements. Furthermore, we submit for approval the unbundled financial statements for
the year 2021 (Appendix I of the Annual Financial Statements) according to the provisions of L. 4001/2011 art. 141 and the
approved by the Regulatory Authority of Energy, methodology of accounting unbundling.
The Group’s subsidiaries which are consolidated in the Group’s financial statements are the following : “PPC Renewables
S.A.”, “HEDNO S.A.”, “Arkadikos Ilios 1 S.A.”, “Arkadikos Ilios 2 S.A.”, “Iliako Velos 1 S.A.”, “Amalthia Energiaki S.A.”,
“SOLARLAB S.A.”, “Iliaka Parka Ditikis Makedonias 1 S.A.”, “Iliaka Parka Ditikis Makedonias 2 S.A.”, “PPC FINANCE PLC”,
“PPC Bulgaria JSCo”, “PPC Elektrik Tedarik Ve Ticaret A.S.”, “PHOIBE ENERGIAKI S.A”, “PPC ALBANIA”,
“GEOTHERMIKOS STOCHOS SOLE SHAREHOLDER S.A.”, “AMYNTAIO PV PARK ONE SOLE SHAREHOLDER SA”,
“AMYNTAIO PV PARK TWO SOLE SHAREHOLDER SA”, “AMYNTAIO PV PARK THREE SOLE SHAREHOLDER SA”,
“AMYNTAIO PV PARK FOUR SOLE SHAREHOLDER SA”, “AMYNTAIO PV PARK FIVE SOLE SHAREHOLDER SA”,
“AMYNTAIO PV PARK SIX SOLE SHAREHOLDER SA”, “AMYNTAIO PV PARK SEVEN SOLE SHAREHOLDER SA”,
“AMYNTAIO PV PARK EIGHT SOLE SHAREHOLDER SA”, “AMYNTAIO PV PARK NINE SOLE SHAREHOLDER SA”,
“WINDARROW MOUZAKI ENERGY S.A.”, “EDS AD Skopje”, “EDS DOO Belgrade”, “EDS International SK SRO”, “EDS
International KS LLC “, “LIGNITIKI MELITIS SOLE SHAREHOLDER S.A.”and “LIGNITIKI MEGALOPOLIS SOLE
SHAREHOLDER S.A”.
Based on L. 4548/2018, as applies, PPC S.A. prepared the financial statements for the year ended December 31
st
2021
(twentieth fiscal year), in accordance with the International Financial Reporting Standards (IFRS), as endorsed by the
European Union.
This report also refers to Alternative Performance Measures. For details on the purpose and calculations refer to ANNEX -
Definitions and reconciliations of Alternative Performance Measures (“APMs”)
The annual Report of the main Subsidiaries for the year 2021, are available on the internet at the following web site addresses:
HEDNO S.A.
http://www.deddie.gr
PPC RENEWABLES S.A.
http://www.ppcr.gr
Lignitiki Megalopolis S.A.
http://www.lignitiki-megalopolis.gr
Lignitiki Μelitis S.A.
http://www.lignitiki-melitis.gr
Amendments in the current legal framework during 2021
All detailed amendments in the current legal framework are presented in Note 2 to the Financial Statements.
10
PPC Group FY/Q4 2021 financial results
Key Group Financial Results
For further information regarding definitions of ratios included in abovementioned figures, please refer to the Financial Report for the twelve - month period
ended December 31, 2021, (Appendix: Definitions and reconciliations of Alternative Performance Measures - “APMs”).
Evolution of key Group figures (€ m)
Profitability evolution
Recurring EBITDA for the Group amounted to €871.7 m in 2021 from €865.1 m in 2020 remaining virtually stable, with the corresponding margin at
15.3% from 18.6% due to increased turnover. Particularly, for Q4 2021, recurring EBITDA amounted to €245.2 m compared to €169.1 m in the
respective quarter of 2020. The final results of the separate Group activities also incorporate the benefit from hedging transactions.
The increased expense due to the rise of natural gas and CO
2
emission rights prices and consequently the increase of wholesale electricity market
prices, negatively affected the operating profitability of the Retail Business. This negative impact was largely offset by the increase of the average revenue
as well as the improvement of the profit margin of the Generation business, which contributed to the support of the customers. The Generation and
Retail business were positively affected by the hedging transactions to offset the volatility risk of electricity, gas and CO
2
prices.
Net losses of €18.4 m were recorded compared to net income of €19.5 m in 2020. Respectively, for Q4 2021 net income stood at €23.8 m compared
to net income of €6.7m in Q4 2020.
2021
2020 *
(resta ted )
Δ (% )
Q 4 2021
Q 4 2020 *
(resta ted )
Δ (% )
(1)
5,706.6 4,649.3 22.7 2,009.1 1,129.2 77.9
(2)
4,834.9 3,784.2 27.8 1,763.9 960.1 83.7
(3)=(1)-(2)
871.7 865.1
0.8
245.2 169.1
45.0
(4)=(3)/(1)
15.3% 18.6% 12.2% 15.0%
Provision for personnel's severance paym ent 16.1 35.8 1.2 3.3
Retroactive charge for special allow ances
from the im plem entation of the Collective
Labour Agreem ent for the period 2021-2024
34.6 (0.1)
Credit invoice for 2012-2019 gas procurem ent
cost
(44.8)
Special RES Account 74.3 74.3
(6)=(3)-(5)
821.0 799.8
2.7
244.1 91.5
166.8
(7)=(6)/(1)
14.4% 17.2% 12.1% 8.1%
(8)
863.2 878.8 (1.8) 233.1 230.4 1.2
(9)
107.6 (125.3) 75.8 (138.6)
(10)=(6)-(8)-(9)
(149.8) 46.3 (64.8) (0.3)
(11)
(18.4) 19.5
23.8 6.7 255.2
Im pairm ent loss on fixed assets
Pre-tax profits/(Losses)
N et incom e / (Loss)
O ne-offs
(5)
* 2020 fig ures have b een restated d ue to IAS 19 as w ell as in order to ta ke into account the note for the fina ncial sta tem ents of 2020 w hich is describ ed in the
stock a nnouncem ent of PPC S.A. d ated 29.10.2021 a s this ha d been included in the Prosp ectus for the Share C ap ita l Increase. For a dditional inform a tion,
plea se refer to the 2021 Financial Report (N ote 44)
EBITD A
EBITD A m argin
Depreciation, total net financial expenses and share of
profits/(losses) in associated com panies
(in € m )
Turnover
O perating expenses
EBITD A recurring
EBITD A m argin recurring
11
Russia-Ukraine conflict
The current geopolitical crisis in Ukraine, combined with the economic sanctions imposed on Russia by the European Union and the United States of
America, have created conditions of uncertainty in the economic environment at European and global level.
PPC Group does not have a direct exposure in these countries as it does not have a relevant commercial presence, therefore not having a direct impact
on its activities.
The increased costs in the wholesale electricity market due to the unprecedented increase in the price of natural gas is a development that indirectly
affects the activities of the Group, which is largely protected by the vertical nature of its activities, due to its presence in both production and in electricity
trading. Indirect effects may arise due to the consequent reduction of our customers' disposable income, as a result of increased energy costs and the
intensification of inflationary pressure.
Any overall final economic impact of the Russia-Ukraine conflict on the global and Greek economies and businesses cannot be estimated at present,
due to the high degree of uncertainty arising from the impossibility of predicting the final outcome, but also due to the secondary effects listed above. In
any case, the Management of the Group continuously monitors the relevant developments and evaluates any possible further effects on the operation,
financial position and results of the Group, being in a state of increased vigilance in order to take appropriate precautionary measures to safeguard the
liquidity and business activities of the Group.
Analysis of Revenues & Operating Expenses of PPC Group
Revenues
Turnover for 2021, increased by €1,057.3 m or 22.7% due mainly to the increase of the average revenue as the increase of domestic demand by 4.1%,
was substantially offset by market share loss of 4.4 percentage points. Specifically, for Q4 2021, turnover amounted to €2,009.1 m up by 77.9%
compared to Q4 2020 as a result of the significant increase of average revenue with domestic demand increasing by 7.4%.
Operating Expenses
Operating expenses before depreciation increased in 2021 by €1,050.7 m (or by 27.8%) to €4,834.9 m compared to €3,784.2 m in 2020, mainly as a
result of particularly high expenses for fuel cost and energy which were mitigated from the reversal of bad debt provisions. Operating expenses before
depreciation do not include the one-off impact from the retroactive charge for special allowances from the implementation of the Collective Labour
Agreement for the period 2021-2024, the provision for personnel's severance payment and the credit invoice from DEPA for gas procurement cost for
previous years, as well as from the one-off charges, as part of the measures taken by the Greek state in order to cover the Special RES account deficit.
Specifically, for Q4 2021, operating expenses before depreciation (not including the impact from one-off items) amounted to €1,763.9 m increased by
83.7% compared to Q4 2020, mainly due to the particularly high energy mix expenses.
Operating figures (generation – imports- exports)
In 2021, domestic electricity demand increased by 4.1% to 56,991 GWh compared to 54,758 GWh in 2020 as a result of the recovery of economic
activity, due to the relaxation of the restrictive measures related to Covid-19. Total electricity demand (including pumping and exports) marked an increase
by 9% due to higher Third Party exports (increase by 2,961 GWh or 165.8% compared to 2020). Specifically, in Q4 2021, domestic electricity demand
increased by 7.4% to 14,043 GWh compared to 13,071 GWh in Q4 2020.
PPC’s average retail market share in the country, declined to 64.3% in 2021, compared to 68.7% in 2020. Specifically, the average retail market share
in the Interconnected System was contained to 64.2% in December 2021 from 66.8% in December 2020, while PPC’s average market share, per
voltage, was 87.8% in High Voltage, 44% in Medium Voltage and 65% in Low Voltage compared to 94.4%, 35.7% and 69% in 2020, respectively.
PPC’s electricity generation and imports covered 43.7% of total demand in 2021 (40.3% in the Interconnected System), while the corresponding
percentage in 2020 was 40.7% (36.9% in the Interconnected System), due to increased PPC electricity generation.
Specifically, hydro generation increased by 2,393 GWh, as a result of higher inflows in the hydro power plants’ reservoirs during 2021 compared to 2020,
but also due to the increased needs of the System.
Generation from PPC's natural gas units increased by 2,475 GWh, while lignite fired generation decreased by 381 GWh. In Q4 2021, the generation
from natural gas units of PPC increased by 234 GWh. On the contrary, lignite fired generation decreased by 656 GWh.
At country level, there was an increase in RES electricity generation (including large hydro power plants) by 25.4% or 4.515 GWh. In addition, electricity
imports decreased by 21.4% or 2,284 GWh.
Energy mix expenditure
Expenditure for liquid fuel, natural gas, PPC and third party fossil fuel, CO
2
and energy purchases increased by €1,152.8 m (49.7%) compared to 2020.
In detail:
- Liquid fuel expense in 2021 increased by 16.1% to €537 m in 2021 compared to 2020, mainly due to the increase in the prices of fuel oil (by
18.1%) and diesel (by 11.9%) but also due to the increased oil fired generation. Specifically, in Q4 2021, liquid fuel expense increased by 20.8%,
as a result of the even higher increase in the respective prices.
- Natural gas expense increased significantly by 205.5% to €910.1 m from €297.9 m primarily due to the great increase of natural gas price by
134.5% and secondly due to the increased electricity generation by 28.9%. During Q4 2021, natural gas expense had a fivefold increase
reaching € 457.4 m from € 91.9 m in Q4 2020, for the same reasons.
12
- Energy purchases expense increased by €168.9 m (15.1%) due to the increase of the Market Clearing Price (MCP) from €45.1/MWh in 2020
to €116.4/MWh in 2021, despite the lower energy purchases volume. More specifically, in Q4 2021, energy purchases expense increased
significantly by €77.3 m (29.9%), as the MCP increased from €53/MWh in Q4 2020 to € 220.8/MWh in Q4 2021.
- Expenditure for CO
2
emission rights increased to €699.2 m in 2021 from €393.5 m in 2020, primarily due to the increase of the CO
2
emission
rights average price to €44.9/tn from €25.6/tn and to a lesser extent due to the increase of CO
2
quantities by 2.1%. to 15.8 m tons. Specifically,
in Q4 2021, the expenditure for CO
2
emission rights increased by 22.5% to € 159.8 m from € 130.4 m in Q4 2020.
Expenditures for natural gas and energy purchases incorporate the positive impact from hedging transactions to offset the risk from fluctuations in
electricity and natural gas prices.
Payroll cost
Total payroll cost excluding the impact of one-off items, remained essentially the same as last year at € 679.7 m in 2021 (from € 677.8 m in 2020) due
to the lifting of the ceiling on the payroll of the Group's staff as well as the re-allocation of Christmas and Easter bonuses The natural attrition reached 890
employees (from 13,799 at the end of 2020 to 12,909 at the end of 2021).
Provisions
In 2021, due to actions taken for collection improvement, a € 59,7 m reversal of bad debt provisions was recorded compared to an increase of bad debt
provisions of € 61.9 m in 2020.
One off items impacting EBITDA
EBITDA in 2021, as it was the case in 2020, were impacted by certain one-off items. Specifically:
- In 2021, EBITDA was negatively impacted by the €34.6 m expense for the retroactive charge for special allowances from the implementation of
the Collective Labour Agreement for the period 2021-2024 and by the provision for personnel's severance payment of €16.1 m. (out of which € 1.2
m relate to Q4 2021)
- Likewise, 2020 EBITDA had been negatively impacted by the provision for personnel's severance payment of €35.8 m, (out of which € 3.3 m relate
to Q4 2020) as well as from the one-off charges of a total amount of €74.3 m, as part of the measures taken by the Greek state in order to cover
the Special RES account deficit pursuant to Law 4759/2020. On the other hand, 2020 EBITDA was positively impacted by the Credit invoice of
€44.8 m from DEPA for gas procurement cost for previous years.
Including the abovementioned one-off items, EBITDA for 2021 amounted to €821 m compared to €799.8 m in 2020.
Capex
Capital expenditure amounted to €437.9 m in 2021 compared to €376.5 m in 2020. As shown in the table below, most of the increase is attributed to
higher investments in repetitive projects in the Distribution network as well as in RES projects.
The composition of main capex is as follows:
(in € m)
2021
2020
Δ
Δ (%)
Conventional Generation
(*)
170.5
179.5
-9.0
-5.0%
RES projects
(**)
32.4
18.0
14.4
88.0%
Distribution network
221.5
174.8
46.5
26.7%
Other
13.5
4.2
9.3
221.4%
Total
437.9
376.5
61.4
16.3%
(*)
Including Mines capex
(**)
Including capex for hydro power plants
Net Debt
Net debt stood at €1,889.8 m on 31.12.2021, decreased by €1,393.8 m compared to 31.12.2020 (€3,283.6 m). Within 2021, sustainability linked bonds
totaling € 1.275 m were issued, out of which € 1,070 m were used for debt repayments. It is noted that in the calculation of the net debt, the revenues of
€ 1.3 b from the Share Capital Increase that was completed in November 2021 have been taken into account.
Net Debt evolution is shown below:
(*) For the calculation of net debt, restricted cash related to debt has been deducted.
(in € m)
31.12.2021
31.12.2020
Gross Debt (1)
4,775.8
4,153.7
Cash and cash equivalents / Restricted cash*/ Other financial assets (2)
2,886.0
870.1
Net Debt (3) = (1) - (2)
1,889.8
3,283.6
13
Recent developments
Memorandum of Understanding between PPC S.A. and Motor Oil (Hellas)
In January 2022 MOTOR OIL (HELLAS) and PPC S.A., signed a Memorandum of Understanding (MoU) for the formation of the framework and the
implementation through a Joint Venture of Green Hydrogen projects. MOTOR OIL’s participation in the Joint Venture will be 51% and PPC’s 49%.
The Joint Venture believes that it can lead the development of hydrogen projects in Greece, having access to PPC’s developing renewable energy
platform and while at the same time taking advantage of MOTOR OIL’s capacity and know how as one of the largest energy groups in the country.
The Joint Venture to be established aims at the development of Green Hydrogen generation and storage projects in Greece, thus facilitating Greece’s
energy transition to Net Zero.
Signing of MoU for the financing of the development of a Fiber To The Home Network
In January 2022, Public Power Corporation S.A. signed an MoU with Alpha Bank S.A and Piraeus Bank S.A. for the financing of the construction and
operation of a Fiber To The Home (FTTH) Network in selected areas of Greece.
The agreement includes the issuance of a long term bond loan amounting up to € 530 m under the form of project financing by the 100% special purpose
vehicle to be established by PPC and which will undertake the construction, operation, exploitation and maintenance of the fiber optics network to be
established.
PPC will proceed to a new announcement after the signing of the contracts which will take place after the finalization of the financing terms following the
ongoing due diligence.
Absorption of subsidiary companies “Lignitiki Megalopolis Sole Shareholder S.A.” and “Lignitiki Melitis Sole Shareholder S.A.”
The Board of Directors of PPC S.A , within the framework of the absorption of its subsidiaries “Lignitiki Megalopolis Sole Shareholder S.A.” and “Lignitiki
Melitis Sole Shareholder S.A.”, approved in February 2022, the subsidiaries’ Draft Absorption Agreement, the Transformation Financial Statements as
of 30.11.2021 and the relevant assets and liabilities Valuation Reports of said companies.
Completion of the sale of 49% of HEDNO share capital to Macquarie Asset Management
The sale of 49% of PPC’s participation in HEDNO S.A. (Hellenic Electricity Distribution Network Operator S.A.) share capital was completed in February
2022 with the deposit of EUR 1,320 m by Macquarie Asset Management for the acquisition of the aforementioned stake. Said consideration has been
adjusted to reflect the change in the Net Asset Value of HEDNO until 28.2.2022, according to the terms of the Share Purchase Agreement.
Amendements
On December 31, 2021 the Group and the Parent Company have proceeded in the attached financial statements for the year
2021 to the restatement of certain amounts for previous years, as follows:
1. Provision for allowance for employees’ severance payments
The Committee for the Interpretation of International Financial Reporting Standards issued in May 2021 the final decision of
the agenda entitled "Distribution of benefits in periods of service (IAS 19)". This decision / interpretation clarifies the handling
of the provisions for allowance for employees’ severance payments, paid to them when they leave service due to retirement,
based on the provisions of Greek labor law (Law 3198/1955), which reaches its maximum point after 16 years of service in
same employer.
The above decision of the Committee has no impact on the financial figures of the Parent Company, while the 100%
subdidiaries subsidiaries of HEDNO SA are affected. & PPC Renewables SA
The Commission Decision is evaluated as a Change in Accounting Policy, in accordance with the provisions of paragraphs
19-22 of International Accounting Standard 8 (IAS 8). The change in accounting policy is applied retroactively from 1/1/2020,
with a corresponding adjustment of the opening balance of each affected item for the older of the presented periods and the
other comparative amounts for each previous periods presented, as if the new accounting policy had always been in use.
Although this effect was not considered significant for the Group, the Group restated the individual item for Decemb 31 2020
and January 1 2020.
2. Revenues for network usage fees for electricity consumed but not yet billed
The Group (through its subsidiary HEDNO) at each balance sheet date calculates based on an estimation method the Network
Usage Fees related to the consumed and non-billed energy for the non-monthly metered electricity LW connections in the
Non-Interconnected Network. This estimate is invoiced by HEDNO to the electricity providers and in the next period the
relevant settlement is carried out. This specific procedure is performed on a monthly basis due to the extra obligations of the
relevant HEDNO Department according to RAE and the additional role it plays in the energy market in Non–Interconnected
Islands.
On the contrary, for the non-monthly metered LW electricity connections in the Interconnected Network, due to the complexity,
the significant number of connections, but also the different obligations of HEDNO in the Interconnected Network and the way
of pricing the relevant Network Usage Fees, HEDNO and did not establish a corresponding provision for the recognition of
accrued income until the year ended 31/12/2019.
14
During the year ended 31/12/2020, HEDNO redefined the method of recognizing the revenue from Network Usage Fees in
the Interconnected Network, in order to reflect those that correspond to the consumed and not metered electricity, which has
not yet been billed for these electricity connections, restating the individual figures for December 31 2020 an January 1 2021.
In the Group’s and the Parent Company’s financial statements as at December 31 2020, no restatement of the comparative
figures for the above adjustment took place as the effect of the restatement on the financial figures of the Group and the Parent
Company and especially on "EBITDA" and "EBITDA Recurring" was not considered significant.. On October 29, 2021 and
following the recommendation of the Hellenic Capital Market Commission, the Group and the Parent Company proceeded to
an announcement to the Stock Exchange, clarifying all the above.
Although the Group's Management continues to evaluate the above effect as insignificant, following the letter of the Hellenic
Capital Market Commission dated 01.02.2022, both the Group and the Parent Company proceeded to restate the comparative
figures of their consolidated and separate financial statements for the year ended December 31 2021.
More information on the above two (2) restatements of comparative figures for previous years, is provided in Note 44 of the
attached financial statements in the Annual Financial Report for the year 2021.
Capital Expenditure Program of Business Units
Total capital expenditure for the Parent Company amounted to € 354.1 mil. and was allocated as follows: € 61.4 mil to Mines,
€ 108.8 mil to Generation, € 170.4 mil to the Distribution Network, € 1.3 mil. to Commercial and € 12.2 mil. to activities of the
Administrative Divisions. Capital expenditure for the Parent Company for the year 2021 has increased by € 9.1 mil., compared
to 2020, representing an increase of 3%.
Total capital expenditure for the Group for 2021 amounted to € 437.8 mil. and includes besides the Parent Company’ capital
expenditure, also those of PPC RENEWABLES S.A. amounting to € 32.4 mil., of HEDNO S.A. amounting to € 51.1 mil and of
the two Lignite subsidiaries amounting to € 0.2 mil. Capital expenditure for the Group for the year 2021 increased by € 61.4
mil., compared to 2020, representing an increase of 16%.
Mines Business Unit
Capital expenditure of the Mines Business Unit for 2021 amounted to approximately €61.4 mil. and is related to projects in
Western Macedonia Lignite Center (WMLC). A breakdown of the capital amount was spent during 2021 is presented below:
1. €29.5 mil. were spent on land expropriations of which €21.1 mil. on land acquisition in the region “ΟDPK1”, €4.7 mil. in
the region of “Choremi”. Αλσο, €26.1 mil. were spent on related to the Ptolemais V θνιτ construction works.
2. € 3.8 mil. were spent on electromechanical works of which €2.1 mil. on belt conveyor’s extension, and the rest on
equipment upgrades and reconstructions.
3. € 0.9 mil. were spent on civil engineering works and other technical projects (berm floor construction, road asphalting).
4. € 1.1 mil. were spent on environmental projects and commotments to third parties (national road and railway relocation,
waste management projects, fences construction etc)
Total excavations in the Mines of Western Macedonia amounted to 51.2 mil. cubic meters and lignite production to 8.6 mil.
Tones
Generation Business Units
Exploitation:
• During 2021 the total net production of the General Division of Lignite Generation (GDLG) and General Division of Thermo-
and Hydro-electrical Generation (GDTHG) power stations (excluding the subsidiary companies Lignitiki Megalopolis S.A.,
Lignitiki Melitis S.A. and PPC Renewables S.A.) amounted to 23.9 TWh, increased by 23.8% compared to 2020 (19.3
TWh). PPC’s share of electricity production decreased from 44% in 2020 to 42% in 2020.
• The lignite based generation (excluding the subsidiaries’) was 3.6 TWh reduced by 10% compared to 2020 (4.0 TWh). The
lignite Units’ availability factor was 56.67%, reduced by 8.6 p.c. units compared to 2020. The load factor of lignite fired
units reached 24.52%, as opposed to 18.60% in 2020. The utilization factor reached 43.26% in 2021 from 28.47% in 2020.
Furthermore, in 2021 Units III and IV of Kardia Lignite Power Plant were decommissioned.
• In 2021 the hydroelectric generation reached 5.3 TWh, increased by 2.4 TWh or 82.76% compared to 2020 (2.9 TWh).
• Natural gas based generation in 2021 reached 11.0 TWh, 2.4 TWh more than in 2020, which is a 28.35% increase. The
Units’ load factor reached 47.86% in 2021, an increase of 10.74 p.c. units compared to 2020. The availability factor in 2021
was 84.57%, decreased by 4.36 p.c. units compared to 88.93% in 2020. The utilization factor increased by 14.71 p.c. units
reaching 56.61% in 2021 from 41.90% in 2020.
15
• In view of the increased load demand placed on Crete’s and the Other NII systems during the summer of 2021, extra 85
MW of non-permanent capacity were used.
• Electricity generation of Lignitiki Megalopolis S.A.’s in 2021 was 1.2 TWh, which is a reduction of 0.23 TWh to 2020’s
generation of 0.97 TWh. Load availability and utilization factors were 53.22%, 91.23% and 59.26%, respectively, whereas
the corresponding 2020 values were 22.21%, 82.34% and 27.41%. Lignitiki Melitis S.A.’ generation reached 0.55 TWh in
2021 and was 0.18 TWh less than the 2020 annual generation of 0.73 TWh. The load factor was reduced to 22.17%, which
is 7.11 p.c. units less than the 29.28% of 2020. The power plant’s availability increased to 67.82% in 2021 from 63.65% in
2020. Its utilization factor was reduced from to 46.01% in 2020 to 32.69% in 2021.
Investments:
Total Investments of the General Division of Lignite Generation and the General Division of Thermo- and Hydro-electrical
Generation during 2021 amounted to €108.8 mil. (excluding the Mines Business Unit referred above).
In the context of PPC S.A.’s Strategic Priorities Plan, the GDTHG and the GDLG have undertaken the implementation of
Investment Projects in order to replace obsolete Units with new, environmentally friendly ones, of modern technology and
higher performance. Concerning the progress of the Projects during 2021 it is noted that:
▪ Thermal Units:
- Steam Electric Unit V, of Ptolemaida Station, of 660 MW (+ 140 MWth for District Heating) installed capacity, using
pulverized lignite fuel:
The Unit’s Building Permit was issued on July 1st, 2015. PPC, in accordance with the contractual provisions, has
already paid to the Contractor two payments in advance, of approximately € 198 mil. each, against relevant Letters of
Guarantee of Advanced Payment, of approximately € 227 mil., each.
During 2021, the Unit’s construction progress reached to such an extent that the peripheral systems of the Unit were
gradually stepped into operation. Covid-19 pandemic affected the progress of the project as specific precautionary
measures had been in force in the construction site to mitigate the spread of coronavirus in compliance with state
guidelines. In summary, at the end of 2021 and in terms of budgetary cost, the civil work progress has reached to
98.7% and the electromechanical erection has reached to 94.3%. The expenditure for the project during the fiscal year
2021 (Main Contract) amounted to €56.3 million. The Unit is expected to start its trial operation within 2022.
▪ Hydroelectric Units:
o Messochora Hydro-Electric Project (HEP) (160+1.6 MW):
The Council of the State, with its Decision 2230/2020 published in Dec. 2020, cancelled the project’s Approval Decision
of Environmental Terms and Conditions. PPC has submiitted a new Environmental Impact Study and has obtained a
new Approval Decision of Environmental Terms and Conditions, issued on 21.12.2021. PPC started the procedures to
incorporate the new terms in order to announce tenders for completing the remaining works for the project and for the
ground stabilization of Sector D of the Mesochora village.
o Metsovitiko HEP (29 MW):
The construction is ongoing according to the new time schedule, after the issuance of building permits, in December
2020, for its commercial operation at the beginning of 2024. During 2021 construction and other Civil Engineering
works took place, as well as studies for the installation of electromechanical equipment. Furthermore, delivery and
installation of electromechanical equipment is in progress. For the fiscal year 2021 the expenditure for the project
amounted approximately to €2.3 mil.
▪ Non-Interconnected Islands (Rhodes, Other NII):
- New South Rhodes Station, of 115.4 MW net capacity, consisting of seven similar generating sets (G/S) with four –
stroke Diesel engines:
All Units were put into commercial operation in 2018 and the Temporary - Final Acceptance Protocol was approved on
8th July 2021. Following that, the objections put forward by the Contractor in said Protocol were rejected by PPC and
both parties agreed to resort to the Amicable Settlement negotiation process as stipulated in the contract. A
Commission for the Amicable Settlement of the disputes was formed for reaching an agreement. The Commissions’
report was approved by PPC’s Board of Directors and subsequently the letters of performance guarantee were returned
to the Contractor.
- The total investment expenditure for the Island of Rhodes and the Other NII for fiscal year 2021 amounted to € 20.7
mil.
Environmental Management / Health and Safety:
▪ Environmental Management: During 2021 and towards the improvement of the environmental behavior of the Power
Generation Units of GDLG and GDTHG:
o Environmental Management Systems (EMS) according to ISO 14001:2015 of twenty four (24) PPCs' Steam and
Hydro Electric Stations and the Lignite Center of Western Macedonia were re-certificated by independent
Certification Bodies, after surveillance audits. Two (2) Steam Electric Stations (SES), namely SES Melitis and SES
16
Megalopolis, are the ownership of PPC’s 100% subsidiaries Lignitiki Melitis S.A. and Lignitiki Megalpolis S.A.,
respectively.
o The process for the issuance of a new EMS according to ISO 14001:2015 for SES South Rhodes (SES Kattavia)
continued as a separate System (EMS)
o The process for a new EMS according to ISO 14001:2015 for HPS N. Plastira continued.
o The tender aiming at re-certifying the Thermal and Hydroelectric Power Plants according to ISO 14001:2015 has
been completed.
o Energy Management System (EMS) according to ISO 50001 of the Lignite Center of Western Macedonia was re-
certificated by independent Certification Bodies, after surveillance audit. The Lignite Center was certified according to
ISO 50001, for the first time in 2019.
o In collaboration with the Recruitment, Development & Training Director of PPC, the following training courses were
organized:
▪ ISO 14001:2015 Environmental Management System Lead Auditor (IRCA Certified)
▪ ISO 14001:2015 Environmental Management System Internal Auditor (IRCA Certified )
o The preparatory work aimed at developing Environmental Management Systems according to ISO 14001 to
Autonomous Power Stations of Milos, Thira, Lesvos, Paros and Ikaria, was planned.
• Health and Safety: The transition from the OHSAS 18001:2007 (ELOT 1801) standard to the new ISO 45001:2018
standard was completed, following successful recertification inspections of the Occupational Health and Safety
Management Systems applied in all Thermal Power Plants (TPP) of the Company by independent bodies, except for
the Main Field Mines and the Kardia Field of the Western Macedonia Lignite Center, as well as the Support Units of
the Western Macedonia Lignite Center whose transition is to be completed within 2022. At the same time, the two
(2) joint committees which were set up with executives from the Occupational Health and Safety Department and the
Thermal and Hydro Generation Business Unit/Lignite Power Plants Operation Department continue their work. The
first committee’s focus is to prepare and adapt the Occupational Health and Safety Management Systems of the
various TPPs so that they comply with the updated ISO 45001:2018 standard, while the second one is responsible
for drafting a directive on protection measures against any possible presence of hexavalent chromium in gas turbines
at PPC power plants.
Commercial Business Unit
Capital expenditure for the Commercial Business Unit for 2021 amounted to 1.3 mil., mainly related to retrofitting the Unit’s
stores.
With a new philosophy, the remodeling of the stores network began in July 2021, with two new pilot stores, in Maroussi and
Kallithea. The aim of the new stores is to upgrade the customer experience. The new stores will emphasize on friendly service,
innovation, interactivity, through a modern, pleasant environment of high aesthetics.
In the new PPC store, apart from the energy products (electricity & natural gas), there will be a special department for the sale
of smart products, of the latest technology.
Since February 2021, the new add on service Greenpass Home is available for PPC Home customers, which ensures that the
amount of energy consumed in their households is produced by Renewable Energy and reserved by PPC for them.
Moreover, since April 2021, another new PPC product, myHome Enter +, is available to its customers. It offers free urgent
technical service to the customers who choose it and through this product, PPC further expands its product portfolio in
Electricity.
In the first four months of 2021, PPC decided to absorb the possible charge that could result from the CO2 adjustment clause
in the Low Voltage Electricity tariffs, while the CO2 adjustment clause has been activated from May 2021.
From August 5, 2021, the CO2 adjustment clause in the tariffs has been replaced by a new supply charge adjustment clause
that is applied, based on market price fluctuations, while discounts from 30% to 50% have been introduced on energy bills,
depending on the tariff, in order to align the adjustment clause to the market.
Also, regarding the significant increase in energy prices, PPC, on top of the measures announced by the Ministry of Energy &
Environment, announced an additional discount of €30/ΜWh for monthly consumptions from 300kWh to 600kWh for its Low
Voltage indexed tariffs, for consumptions from 1/10/2021 to 31/12/2021.
Proportionally to Low Voltage, the CO2 adjustment clause in the MV tariffs was replaced by a price adjustment clause based
on market fluctuations in October 2021. Moreover, during October the gas retail product portfolio was modified to reflect cost
conditions.
Finally, on December 2021 myHome products were modified, adjusting prices to the updated cost conditions.
For the whole of 2021, a discount of 5% was maintained for customers who payed on time their bills.
17
PPC introduces a new Credit Policy, in accordance with the Electricity Supply Code, in the framework of which intensifies its
actions with the ultimate goal of reducing debts and increasing collections rates. PPC continues its cooperation with a company
providing specialized support services, in the context of the securitization of receivables of its customers, in order to manage
more effectively its customer base.
Finally, it expands and establishes new electronic and telephone bill collection services for the better access of its customers
to the collection channels.
HEDNO S.A.
Development & Operation of Networks
In 2021, the length of distribution lines increased by 781 km in the medium voltage grids, by 611 km in the low-voltage grids,
while an additional 335 Low/Medium transformers were installed and 2.900 relocations (displacements) were made.
Therefore, the Medium Voltage network extends to 114,139 km and the Low Voltage network extends to 128,822 km while
transformers stand at 166,160.
Active users of the Distribution network totaled 7,648,284, of which 14,018 in the Medium Voltage.
Turnaround Times of New Connections
The average time for the design and construction of simple new user connections was 21.5 working days, while for connections
requiring network workings it was 42.4 working days and 42.51 working days for relocation (displacement) requests.
Environmental Issues
The Company takes care to improve its environmental performance. In this direction, during 2021 it signed with a specialized
Consultant a contract for the design and development of a methodology concerning the recording of the Carbon Footprint of
HEDNO S.A.
The aim of the project is to identify and calculate the greenhouse gas emissions of HEDNO, directly (Scope 1) or indirectly
(Scope 2 & Scope 3), which are indicative of fuel, electricity consumption, supply chain, fixed equipment and electricity losses
in the Network, so that the Carbon Footprint can be calculated and in turn HEDNO be able to adopt an integrated system for
recording, calculating, monitoring and publishing the carbon footprint on an annual recurring basis in accordance with ISO
14064: 2018. In the first place, within 2021, the carbon footprint was calculated for the Scope 1 and 2 categories covering the
period from 01.01.2020 to 31.12.2020 and the respective data used for the 1st Sustainability Report of the PPC Group.
At the same time, HEDNO S.A. implements actions for the protection of natural wealth such as the pruning of trees and the
cleaning of underground vegetation with the aim of forest protection The "aesthetic" protection of the environment is another
basic aim, giving priority to the undergrounding of networks and the replacement of bare Low Voltage pipelines with twisted
cables in traditional or special interest (cultural or tourist) areas. Indicatively, within 2021, 1,745.95 km twisted cables in Low
Voltage were installed. The 1,273.48 km were placed in replacement of a corresponding length of Low Voltage bare pipeline
networks, with multiple positive effects on the environment, such as the conservation of the bird fauna and the aesthetic
upgrade, but also the exploitation of the network.
A top priority for HEDNO S.A. is to prevent the loss of biodiversity and protect the endangered species. In cooperation with
local bodies and organizations, the company continues the actions of improvement of the networks located in places where
rare birds live, including important interventions with new technologies (e.g. HEDNO participates in the program LIFE17
NAT/GR/000514-LIFE Bonelli east-Med, for the conservation and management of the sparrow population in the Eastern
Mediterranean which provides for the installation of special insulating covers in selected locations of the Medium Voltage
Network. It also takes care of the safe passage and residence of migratory species in our country and cooperates closely with
NGOs for the care and protection of wildlife in our country. In 2021, in collaboration with NGOs, HEDNO S.A. installed stork
nests and assisted in the maintenance of stork nests and stork ringing in several areas of Greece.
Finally, in 2021 it procured wooden poles impregnated with water-soluble preservatives with the aim of installing them in new
aerial networks, so as to investigate the use of poles without creosote, but with more environmentally friendly materials, on a
large scale.
PPC Renewables
Generation
Electricity generation in the year 2021 was 373,776MWh compared to 297,337 MWh in 2020.
Investment activity
Wind Parks
18
In 2021 the reconstruction and electrification of the Wind Park Moni Toplou in Sitia, Crete (6 MW) has been completed, which
was within the framework of the Contract for the Design, Supply, Transportation, Installation and Commissioning of 10 Wind
Parks of total capacity 19.8 MW in the Aegean. Also, in July 2021 the Wind Park of Kefalonia (9.2 MW) started its operation,
while in September 2021 the Wind Park 0.7 MW in Lemnos (Agios Sozon) was electrified. The construction works of the Wind
Park at the locations of "Aeras" of the Municipality of Mouzaki and "Afentiko" of the Municipality of Argithea and the GIS type
High Voltage Substation 20/400kV, of 100 MVA power, at the location "Diaselo-Prophet Elias" of the Municipality of Mouzaki,
Karditsa are on a full scale, and it is expected to be completed during 2022.
Small Hydro Plants
The commercial operation of the Small Hydropower Plant Louros (3X2.9 MW) was completed on 09.11.2021 (12-month
warranty period). The adjacent Louros Substation, with a power increase at 40 / 50MVA, was commissioned on September
27th, 2021, including the completion of works of IPTO remit (Digital Control System, Digital Carriers, Wave Traps, etc.). It is
expected that provisional acceptance from the Contractor Partnership will take place during July 2022.
the Construction of the Smokovo II SHPP (3.2 MW) has been almost completed and it is expected that provisional acceptance
from the Contractor Partnership will take place during July 2022. The Powerhouse and the abutment hydraulic works
(Penstock, Tailrace, Funnel) have been completed, the Electromechanical Equipment has been fully installed and cold
commissioned and the construction of the Interconnection Grid by HEDNO is complete.
The Construction of Makrochori II SHPP (5 MW) is in full scale. The excavation works of the Diaphragm Wall lasted from April
12
th
until November 02
nd
, 2021, while the elevation works around the Forebay Canal and the excavation works around the
Powerhouse are almost complete. Presently, the Detailed Study of the Project is under development, while the Main and
Auxiliary Electromechanical Equipment (Turbines, Generators, Hydromechanical Equipment, etc.) are under construction. The
project is expected to be electrified in the 4
th
quarter of 2022.
In Oct 14
th
2021 took place the signing of the contract for the construction of the SHPP Vermio (1.96 MW) which it is expected
to be completed on March 2023. The final licensing procedure is complete (Connection Terms, Installation Permit, Building
Permit) and presently the Detailed Study of the Project is under development.
Ladonas SHPP (10 MW) is located on the Ladonas river, downstream of the existing Ladonas HPP of PPC SA, within the
regional unit of Arcadia and the Municipality of Gortynia, about 120km from Tripoli. The Project is implemented by the
participating company PPC – TERNA and it includes:
• headworks and water intake (0.5km downstream of the HPP)
• water conveyance works
• powerhouse (3km downstream of the water intake)
• main and auxiliary electromechanical equipment
• grid interconnection works
The Final Civil Works Study was submitted on 19.04.2021.
Presently, actions are being taken for the definition of the technical and contractual-economical part of the Project, the selection
of the electromechanical equipment supplier and the completion of the EPC Contract.
Theissoa SHPP (5 MW – 16.4GWh) is located on Alfeios river, within the regional unit of Ileia and the Municipality of
Andritsaina - Krestena, in the Municipal Community of Theissoa. The Project is implemented by the participating company
PPC RENEWABLES SA (49%) - NANKO ENERGY SA (51%), which is the owner of the Gitani SHPP (4.2 MW). The
Production Permit was issued on Oct 6
th
, 2021, by the Regulatory Authority of Energy, after the application submission in June
2021.
Presently, actions have been taken for the Final Hydrology Study of the Project.
Pournari III SHPP (0.7MW - 4.1GWh) is located downstream of the Pournari II HPP of PPC SA (Regional Unit of Arta). The
project utilizes the hydroelectric potential of the ecological flow of the river Arachthos, which till day flows freely from the right
bank overflow. Presently, the project licensing is in progress, while the elaboration of the Final Study will follow.
Photovoltaic Stations
Construction works from the 100% subsidiary of PPCR “ILIAKA PARKA DYTIKIS MAKEDONIAS ENA SINGLE-MEMBER
S.A.” for the PV Plant of 14,99MW capacity, with fixed tilt mounting structure, and the 20/150kV “Agios Christoforos”
Substation, which will include a 20/25MVA power transformer, of a total budget of Euro 9.7mil. at “Paliampela” plot, in the
regional unit of Kozani, are in progress. METKA-EGN LTD is the EPC Contractor. It is expected that the semi-commercial
operation of the PV Plant will commence in April 2022.
Construction works from the 100% subsidiary of PPCR “ILIAKA PARKA DYTIKIS MAKEDONIAS DYO SINGLE-MEMBER
S.A.”, for the PV Plant of 14,99MW capacity, with horizontal single-axis trackers, and the 33/150kV “Charavgi” Substation,
which will include a 20/25MVA power transformer, of a total budget of Euro 11.5 mil. at “Xiropotamos” plot, in the regional unit
of Kozani, are in progress. TERNA S.A. is the EPC Contractor. It is expected that the semi-commercial operation of the PV
Plant will commence in April 2022.
19
Construction works from the 100% subsidiary of PPCR “ILIAKO VELOS ENA SINGLE-MEMBER S.A.”, for the PV Plant of
200MW capacity, with horizontal single-axis trackers and bifacial PV modules, of a total budget of Euro 83.8 mil. at three
separate plots of “Lignitiko Kentro Dytikis Makedonias” area, in the regional unit of Kozani, began in June 2021.METKA-EGN
LTD is the EPC Contractor. It is expected that the semi-commercial operation of the PV Plant will commence in December
2022.
Construction works of the PV Plants of 39MW and 11MW capacity, from the 100% subsidiaries of PPCR “ARKADIKOS ILIOS
I SINGLE-MEMBER S.A.” and “ARKADIKOS ILIOS II SINGLE-MEMBER S.A.” respectively, with horizontal single-axis
trackers, and a 33/150kV Substation, of a total budget of Euro 23.9 mil., at “Megales Lakkes” plot, in the regional unit of
Arcadia, began in September 2021. TERNA S.A is the EPC Contractor. It is expected that the semi-commercial operation of
the PV Plants will commence in November 2022. Currently, the Contractor is in the process of preparing the Final
Implementation Study and updating the relevant licenses.
It should be mentioned that the company “ARKADIKOS ILIOS I SINGLE-MEMBER S.A.” will participate in the market with the
respective PV Plant of 39MW capacity, within the Target Model context, through a bilateral Power Purchase Agreement (PPA),
while the company “ARKADIKOS ILIOS II SINGLE-MEMBER S.A.” has ensured a Reference Price (FiP price) for the
respective PV Plant of 11MW capacity, after its successful participation in RAE’s competitive bidding process in July 2020.
The construction of the “Agios Christoforos 1” PV Plant with 64,983MW capacity with fixed tilt mounting structure, and the
expansion works of the 150kV “Agios Christoforos” Substation through the addition of a new 33/150kV transformer, of a total
budget of Euro 31.8 mil., in the Municipality of Eordea, Kozani Regional Unit was awarded in AVAX S.A. Contract signing is
expected in April 2022. The PV Plant has already been granted Producer Certificate, Environmental Terms Approval and Grid
Connection Terms by IPTO S.A.
Cooperation with other Groups for the joint development of RES Projects
Following the initial signing of a Head of Terms between PPC Renewables and RWER in February 2021, with the aim of co-
development and construction of a portfolio of PV projects of up to 2GW total installed capacity, the two companies agreed on
the final terms of cooperation and proceeded with the signing of the Joint Venture Formation Agreement (JVFA) in October
2021. In January 2022 the process for the establishment of Meton Energy SA was completed where PPC Renewables
contributed in kind its 100% subsidiaries (Amynteo companies) and acquired a 49% stake while RWER contributed cash and
acquired a 51% stake in Meton Energy S.A. Amynteo companies develop PV projects of 940 MW capacity within the
boundaries of ex Amynteo lignite mine. Along with that, RWER has already secured a PV portfolio of similar capacity in Greece
which is expected to be contributed in Meton Energy S.A. in the future.
Local co-development agreements to expand and strengthen RES portfolio
In the context of expanding its portfolio, PPC Renewables has entered in co-development agreements with three Greek private
companies, Pivot, Teichio and Baliaga with a total portfolio under development of circa 2GW in Greece.
Significant events for the period January 1
st
2021 – December 31
st
2021
Significant events for the year 2020 are presented in detail in Note 3 of the Financial Statements.
Effects of the COVID-19 Pandemic
The COVID-19 pandemic continues in year 2021 to affect the global social and economic life. In Greece, after the resumption
of the restrictive measures from October 2020 until approximately the end of March 2021 (with measures of limited re-opening
of stores during the Christmas period), from mid-April 2021 the restrictive measures gradually began to be lifted, as a result of
the program of massive vaccination applied, while there was an almost complete liberalization of the operation of stores.
Due to the fact that the majority of the impacts mainly comes from the measures taken, both worldwide and in Greece since
mid-March 2020 to reduce the spread of the pandemic and to mitigate the economic impact on businesses and individuals,
the Group’s and the Parent Company’s operation has been affected, initially causing short-term positive effects on their
financial position, operating results and cash flows, mainly due to the considerable decrease in oil an natural gas prices. In
the medium to long term, the pandemic has resulted in the delay or freezing of new energy investments, which at least partially
corresponds to the high prices of energy products (electricity, gas, oil, CO2 emission allowances etc.), observed in 2021,
combined with the strong global recovery in demand for these energy products during 2021, as well as with geopolitical frictions
that create nervousness in the energy markets. In particular in Greece, after the recovery of electricity demand observed in
the first half of 2021, during the second half of 2021 a further increase in the demand for electricity was observed in the
Interconnected System, with a significant increase in its price in the Day-ahead Market, which in combination with the increase
in prices for emission allowances CO2 and natural gas, contributed to the increase of the energy balance cost of both Greece
and PPC for this period.
The Group and the Parent Company implemented a series of actions aimed at informing employees, raising their awareness
of prevention and protection measures, providing them with appropriate Personal Protection Measures (PPE), protecting both
them and their families and at the same time ensuring the smooth operation of their activities. They also took emergency
20
measures to provide discounts to electricity bills for consumers affected by the pandemic, as mentioned in the Commercial
Policy section of Note 3 of the consolidated and separate financial statements.
The overall final economic impact from the COVID-19 pandemic, on the global and the Greek economy as well as on business
activities, cannot be assessed at this moment due to the high degree of uncertainty resulting from the inability to predict the
final outcome but also due to the secondary effects mentioned above. However in any case, the Group’s and the Parent
Company’s Management monitors constantly the developments of the COVID-19 pandemic and evaluates any possible further
effects on the operation, financial position and results of the Group and the Parent Company, being alert to take further
appropriate precautionary measures to safeguard the Group’s and the Parent Company’s liquidity and business activities.
21
MAJOR RISKS - UNCERTAINTIES
The Group’s and the Parent Company’s activities are subject to various risks. Any of the following risks could have a material
adverse effect on the Group’s and the Parent Company’s business, financial position or results. The risks described below are
not the only risks that the Group and the Parent Company face. Additional risks and uncertainties not currently known to the
Group and the Parent Company or that are currently deemed to be immaterial may also materially adversely affect in the
future their business, financial position, results and cash flows. The order in which the risks are presented does not necessarily
reflect the likelihood of their occurrence or the magnitude of their potential impact.
Risks related to the Group and Parent Company’s business
1. Risks related to the inability to implement the strategies and the business plan
The Group and Parent Company face many risks that could adversely affect their ability to successfully implement the key
strategies in their business plan. These risks include potential changes in electricity demand in Greece and in Europe
generally, changes in electricity and emission allowance and fuel prices and the regulatory framework, increases in generation,
transmission and distribution costs, future developments affecting electricity infrastructure within Europe, technological
changes, energy services, competition in the geographical markets in which they operate (or intend to expand into), political
and economic developments affecting Europe and EU legal and regulatory requirements. The Group and Parent Company
also face the risk of internal or political resistance against their key strategic initiatives by employees, labour unions, local
communities, political parties and/or other stakeholders. Any failure to successfully implement key strategies within the
targeted timeframe could have a material adverse effect on the Group and Parent Company’s business, results of operations
and financial condition.
The Group’s renewable energy project pipeline, which is one of the largest renewable energy project pipelines in Greece and
totals approximately 10.0 GW, is one of the most important components of its strategy. The Group has already obtained the
necessary licences for a significant portion of its renewable energy project pipeline and a portion of which will be rolled out at
the Group’s depleted lignite fields, largely in parallel with the decommissioning of all of its lignite-fired generation assets. If the
Group and Parent Company are not able to fund these renewable energy projects at economically favourable prices or secure
the necessary licences, there will be delays or even cancellations of certain of these projects.
Any delay or objection in relation to the process for obtaining the relevant approvals, permits or licences, procurement or
construction delay or change in government policy could result in delays to the estimated commencement date for commercial
operations, increased costs, and the need to obtain planning amendments. For the Group’s renewable energy projects that
are not contemplated to be developed on owned land, the Group must obtain, among other matters, planning and other
approvals, permits or licences from relevant authorities, secure any required easements from landowners and construct the
physical connection between each project and the Distribution Network. Any failure or delay to obtain or delay in obtaining the
necessary approvals, permits or licences, or to enter into the procurement or construction agreements or delays in establishing
the connection with the Distribution Network could materially affect the timeline for increased renewable energy generation
capacity and have an adverse impact on the Group and Parent Company’s business, operations, prospects, financial condition
and results of operations.
Furthermore, all large-scale development projects are complicated and subject to a complex, overlapping legislative regime.
There can be no guarantee that any renewable energy project will be completed in a timely manner or that an interested
stakeholder will not challenge the Group’s compliance with such regimes. Any such risk could have a material adverse impact
on the Group and Parent Company’s business operations, prospects, financial condition and results of operations.
In addition, the Group and Parent Company have undertaken in the past, and may continue to undertake in the future, various
initiatives in order to increase the productivity and operating efficiency of their power plants, as well as measures to decrease
operational costs (such as wage cuts). These measures were implemented with a view towards improving the Group and
Parent Company’s competitiveness and profitability and reducing the total cost of operations. Although these initiatives have
historically been implemented in an effective manner, there can be no assurance that they will continue to be effective in the
future, and such initiatives may not fully materialise, or the Group and Parent Company may not be in a position to capture
the total benefit therefrom due to external factors over which they have little or no control. Such factors include general
macroeconomic conditions in Greece, the level of competition in this industry, restrictions in hiring and retaining qualified
personnel, and the manner in which profitability measures are viewed and accepted by the Group and Parent Company’s
customers, their suppliers and their employees.
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The Group and Parent Company’s ability to implement their strategy depends on a variety of factors, some of which are outside
their control, including, among others, adverse regulatory decisions, interpretations or administrative actions, as well as
institutional resistance, delays in the recovery of the Greek economy and other adverse global macroeconomic developments,
market disruptions and unexpected increases in funding costs. There can be no assurance that the Group and Parent
Company will be able to successfully implement their strategy and achieve their planned operational targets, including the
goals have been set for the period from 2022 to 2026 within that timeframe or at all, and the expected benefits of this strategy
may not materialise or may only partially materialise. This, in turn, could have a material adverse effect on the Group and
Parent Company’s business, financial condition and results of operations.
2. Risks related to medium- to long-term financial performance
The Group and Parent Company have established targets for medium- and long-term financial performance, all of which
assume, inter alia, the successful and timely execution of the transformation strategy and five- year business plan, which were
announced on 23 September 2021. The management of the Group and the Parent Company has based these targets on a
number of assumptions regarding, inter alia, the contemplated deployment of capital expenditure according to their five-year
business plan, domestic and global economic and political developments, continuity in their regulatory, legal and tax
environment, the Group and Parent Company’s plans for international expansion, the accuracy of their modelling and
assumptions with respect to supply and demand dynamics, market developments and pricing, macroeconomic conditions,
such as interest and inflation rates and GDP growth, and the absence of material business disruptions.
Such assumptions are inherently subject to significant business, operational, economic, financial and other risks, many of
which are outside of the Group and Parent Company’s control. Accordingly, such assumptions may change or prove to be
incorrect. Should one or more of the assumptions underlying the targets for financial performance prove to be incorrect, the
Group and Parent Company’s actual medium- to long-term financial performance could differ materially from the targeted
medium- to long-term financial performance.
3. Risks related to the fluctuations of fuel, CO2 emission rights and electricity prices
The Group and Parent Company participate in the Greek energy wholesale market both as producer and as supplier of
electricity, which exposes them to market price risk stemming from commodity price fluctuations. The Group and Parent
Company’s generation business is exposed to the fluctuations in the prices of natural gas, oil and CO2 emission rights, which
are traded in international commodity markets as well as to the fluctuations of the Greek wholesale prices. As supplier of
electricity, Parent Company is subject to exposure to increased Greek wholesale prices for supplying energy to its customers
to the extent that these customers have tariffs not indexed to wholesale power market prices. Its exposure to wholesale
electricity market risk is determined by its net financial exposure, i.e. the quantity of energy generated by their power units that
exceeds the needs of their customers with tariffs that are not indexed to the electricity market prices. As a result, any change
in both the Group and Parent Company’s commercial and generation portfolio (taking into consideration in particular the not-
indexed electricity tariffs) results in a fluctuating net financial exposure. Currently as almost 79% of their customers have tariffs
indexed to the wholesale power market prices their financial exposure in the electricity market is long.
The price of natural gas significantly affects the Parent Company’s generation costs as well as the Greek wholesale power
market prices at which it sells or purchases wholesale electricity. During 2021, approximately 51% of its net electricity
production in the Interconnected System was generated by natural gas-fired power plants.
While the CO2 emissions have significantly decreased due to the lignite decommissioning plan in progress, thus also reducing
exposure to the price of CO2 emission rights, significant quantities of CO2 emission rights still need to be purchased every
year and any upward movement of relevant prices could materially, directly or indirectly, affect the Group and Parent
Company’s financial condition, results of operations and cash flows. Their exposure to the risk of increasing CO2 emission
rights’ prices is also linked to their ability to pass these increases on to customers in their electricity tariffs. While an automatic
mechanism (clause) for passing on increases in the cost of CO2 emission allowances in High Voltage tariffs has been adopted,
the relevant cost may not be fully offset.
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In order to limit the Group and Parent Company’s exposure to these market risks, they have adopted risk management policies
for the hedging of price risk in line with limits and targets assigned by the senior management. Hedging activities typically
entail the use of derivatives instruments to reduce the risk. Nevertheless, their exposure to these risks has not been eliminated
and they may not manage to adequately hedge against volatility in natural gas prices and volatility in wholesale power market
prices either because of low liquidity in the Forward Power Market recently established in Greece, or because of other reasons.
In addition, electricity, gas and other commodity price hedging contracts are available in the market only for limited forward
periods, hence not protecting against adverse price movements in the medium-long term. Moreover, the execution of hedging
activities through their participation in organised commodity exchanges is creating new needs for credit and cash settlement
requirements, as well as for cash margining to cover adverse price movements or stop-loss procedures, which could result in
significant liquidity needs. As a result of the above, despite their hedging activities, significant variations in fuel, CO2 emission
rights and electricity prices, and any relevant interruption in supplies, could still have a material adverse effect on the Group
and Parent Company’s operating expenses and liquidity, thus negatively affecting their business prospects and results of
operations.
4. Risk of exposure to competition in the wholesale and the supply markets
The Group and Parent Company face intense competition and share loss in the wholesale market due to the increased
penetration of renewables units in the System and the Distribution Network, increased electricity imports from neighbouring
countries and intense competition by third-party independent electricity producers, as well as low efficiency factors mainly in
the form of aged lignite-fueled power units which, according to the decommissioning plan, will be withdrawn by the end of
2023. Potential changes in the competitive environment, through the introduction of new laws and/or regulatory mechanisms
in the electricity market that benefit the Group and Parent Company’s competitors may adversely affect their operating results
and liquidity.
Law 4389/2016 set a target for the Parent Company to decrease its generation and supply market share in Greece to below
50.0%. The Parent Company’s market share is already below 50% for generation activity, but not for supply. The management
of the Parent Company believes that large parts of the supply market will be unattractive to potential competitors and thus, it
is anticipated that they will attempt to “cherry-pick” its best customers, while the Parent Company could be required to continue
to supply electricity to less profitable customers with riskier credit profiles. This dynamic may put it in a competitive
disadvantage and cause the loss of a large number of their Low and Medium Voltage customers, which could have a greater
net negative impact on profitability than the loss of its High Voltage customers.
In the recent past, the Parent Company’s obligation to supply its competitors with a substantial amount of wholesale electricity
at below cost pursuant to NOME-type auctions had a detrimental impact on the business and results of operations. While
NOME-type auctions were abolished in October 2019, on 10 September 2021, the European Commission made legally
binding, under the EU antitrust rules, the measures proposed by the Greek authorities on 1 September 2021 to resolve the
outstanding Anti-Trust Case (decisions C (2008) 824(3) and C (2009) 6244(4) of the EC) and in view of accelerating the
opening of the Greek electricity market, which oblige the Parent Company to sell quarterly forward products of 2022 and 2023
power in the Greek Energy Exchange (HEnEx) and/or the European Energy Exchange (EEX) by the end of Jan 2022 and Jan
2023 respectively. The Parent Company has complied with the above-mentioned obligation timely within 2021 for 2022. There
is no guarantee that the compliance will not adversely impact its s financial position. Such measures or reforms, the introduction
of new laws and/or regulatory mechanisms in the electricity market or other adverse changes in the competitive landscape in
the supply market, may have a negative impact on results of operation and cash flows. The reduction of the Parent Company’s
supply market share in conjunction with the absence of conditions for effective competition and the potentially imbalanced
participation of suppliers in the market may also have a negative impact on the Groups and Parent Company’s results of
operation and financial condition in future periods.
5. Risks related to the operation in a capital-intensive business sector and a significant increase in capital costs
The Group and Parent Company have significant construction and capital investment requirements. A significant increase in
the costs of or delays in executing their investment plan, occurring before or after capital has been committed, could have a
material adverse effect on the Group and Parent Company’s ability to achieve their growth targets and the business, financial
condition, prospects or results of operations.
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The Group and Parent Company expect to finance a substantial part of these capital investments out of the cash flows from
operating activities. However, If these sources are insufficient, additional external sources of funding may need to be sought..
Although the Group and Parent Company have entered into long-term financing agreements for major projects and, historically,
the European Investment Bank has financed a major part of generation and Distribution Network projects, no assurance can
be given that they they will be able to raise the financing required for the planned capital investments on acceptable terms or
at all. In such a case. They may have to reduce their planned capital investments, which could have a material adverse effect
on long-term business, financial condition, prospects or results of operations. Additionally, they may be required to make
investments requested by RAE in the Distribution Network, which may result in increased capital expenditure requirements
and adversely impact the Group and Parent Company’s cash flows.
6. Tariff risk for the competitive activities
Despite the deregulation of tariffs, the Parent Company’s ability to formulate its tariffs is limited by (i) current socioeconomic
conditions in Greece, (ii) the ability of its customers to cope with new tariffs and pay their bills, (iii) decisions of RAE and/or
strategic initiatives of the Greek government and (iv) competitive pressure from alternative energy suppliers. If any new
proposed tariff structures are not well received and accepted by customers, their ability or willingness to pay their electricity
bills may be negatively impacted, which could in turn negatively affect the collectability of the Parent Company’s bills.
Moreover, if tariff increases provide alternative suppliers with a competitive advantage against the Parent Company, the
potential implications could negatively influence the Group and Parent Company’s business, financial condition and results of
operations.
In addition, the Parent Company may face difficulties incorporating increased commodity costs through increased tariffs. In
this context, the Hellenic Republic or RAE may propose tariff policies to serve wider economic objectives. Such proposals may
negatively affect the Parent Company’s ability to freely determine tariffs based on its business needs and strategy. Additionally,
RAE may affect the Parent Company’s tariff policy indirectly, for instance through market incentivisation, institutional resistance
or financial penalties.
Furthermore, a significant part of the Group and Parent Company’s revenue depends on regulated charges. Such regulated
charges are set by RAE and reviewed periodically every four years. The Greek government and/or RAE may decide to limit
or reject increases in regulated charges or may change the conditions of access to such regulated charges, including changes
to the price setting mechanisms as a result of political and socioeconomic concerns. Despite having adequate visibility over
RAE’s changes in regulated charges, such changes may affect the Group and the Parent Company’s electricity distribution
revenues and could have a material adverse effect on their business, results of operations and financial condition, as well as
weaken their ability to raise equity or loans for funding their investment plans to a certain extent.
The Group and the Parent Company cannot provide any assurance that new tariff mechanisms will not be put in place in the
future or that regulated charges will be set at a level which would allow them to preserve their investment capacity while
ensuring a fair return on the capital invested in their electricity generation, distribution and supply assets.
7. Risks associated to the Group’s industrial customers and to the expansion of its operations.
The Group and Parent Company maintain power supply contracts with certain High and Medium Voltage industrial customers
in key economic sectors in Greece. The inability of such customers to pay in full amounts billed in relation to their electricity
consumption, the increased availability of competitors’ offers, or the outcome of negotiations with such customers on financial
and other terms for extending their contracts may have an adverse effect on the Group and Parent Company’s business,
financial condition and results of operations.
Additionally, the Group and Parent Company may not successfully manage the risks associated with expanding their
operations, integrating newly acquired subsidiaries or participating in joint venture projects where they have granted protective
rights to minority holders, such as in connection with the HEDNO joint venture, or which they do not manage or otherwise
control.
While the Group and Parent Company intend to undertake due diligence reviews in relation to acquisitions and joint ventures,
such reviews may not reveal all existing or potential risks and liabilities and they cannot give any assurance that their
acquisitions and their participation in joint ventures are not or will not become subject to liabilities of which they are unaware,
, they may not have correctly assessed or against which they have not obtained full legal protection.
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8. Risks related to climate change
Climate change and the societal and political response to it may have a significant impact on the Group and Parent Company’s
activities. According to the guidance issued by the “Task Force on Climate-related Financial Disclosures,”, the Group and
Parent Company divide climate-related risks into two major categories: risks related to the transition to a lower-carbon
economy and risks related to the physical impacts of climate change.
Risks related to the transition to a lower carbon economy include risks related to the adoption of strategies and decisions to
prevent and mitigate the effect of climate change (such as the introduction of regulatory incentives and penalties, carbon
pricing systems, energy efficiency solutions and low carbon products and services). The implementation of policies to promote
carbon reduction may significantly impact the operations and value of the Group’s thermal plants.While the Group is actively
implementing its delignification strategy, the renewable energy rollout is still in its nascent phase and thus the Group remains
dependent on its conventional generation units for the bulk of its electricity production. The Group and Parent Company believe
they have the largest renewable energy project pipeline in Greece, totalling approximately 10.0 GW. If the Group and Parent
Company are not successful in the rollout of their renewable pipeline, they will face challenges from the anticipated hostile
regulatory environment and strong competition from greener and more modern electricity producers.
Risks related to the physical impacts of climate change include risks that are triggered by changes in mean temperatures
and/or changes in wind patterns and solar radiation. The increased incidence of extreme weather events caused by climate
change could also significantly affect conventional and renewable generation, as well as the resilience and performance of
the Distribution Network. While the Group and Parent Company follow and regularly assess such risks and their response to
them at both management and board level, they may not be able to predict, mitigate or adapt to the medium or long-term
physical changes associated with some climate change risks, which may adversely impact their financial condition, business
and results of operations.
9. Risks related to climate conditions and seasonal variations
Electricity consumption is seasonal and affected mainly by climate conditions. In Greece, electricity consumption is generally
higher during the summer months with periods of hot weather resulting in sudden increases in demand, a situation that may
be exacerbated by climate change leading to warmer weather conditions. However, the vast penetration of RES has created
significant changes in the residual load that needs to be covered by thermal and hydro generation, both in terms of seasonality
and the intra-day load curve. Currently, load peak demand appears more often in the winter period.
Electricity generation may also depend on climate conditions. Droughts or/and heat waves, speed and direction of winds and
sunshine availability may significantly affect power generation. In very extreme cases, climate conditions might also create
problems in the supply of liquified natural gas (“LNG”).
Weather conditions are outside of the Group and Parent Company’s control and therefore they cannot guarantee that,
primarily, their hydropower plants will be able to meet their anticipated generation levels, as there is a dependence upon
hydrological conditions prevailing from time to time in the geographic regions where their hydroelectric generation facilities are
located.
In an average year, approximately 10.0% of the Interconnected System demand is expected to be covered by hydro
generation. However, given the low capacity of hydro reservoirs in Greece, it is not possible to keep hydro reserves for long
periods and, therefore, volatility in hydro inflows is directly reflected in the operation of the wholesale market. Therefore, in
years when the hydrological conditions lead to drought or there are other conditions that negatively affect the hydroelectric
production, the Group and Parent Company have to rely more heavily on thermal production and on electricity purchases from
abroad and third parties for their marginal demand requirements, which results in increased operating expenses.
Consequently, the Group and Parent Company’s revenues reflect the seasonal character of the demand for electricity and
may be adversely affected by significant variations in climate conditions. The Group and Parent Company may need to
compensate for a reduction in electricity generated by their units, especially at times of increased demand, by utilising other
electricity generation means at higher cost or by resorting to the wholesale market at higher prices, which could have a material
adverse effect on their business, results of operations and financial condition.
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10. Risks related to sustainability obligations and objectives
The Group and Parent Company take a sustainable approach to business and, thus, they are transforming their business
model with the aim of reducing their carbon footprint. The Group and Parent Company’s environmental strategy is in line with
the European Union’s and Greece’s ambitious medium- and long-term objectives for climate neutrality by 2050, including the
new and most immediate target for reducing greenhouse gas (“GHG”) emissions and increasing RES capacity and use by
2030. To this end, the Group and Parent Company have developed their “Green Deal” in power generation, with the aim of
accelerating the decommissioning all of their lignite units and respective mines, expanding and establishing RES as their
dominant energy generation technology and assisting in the advancement of electromobility in Greece.
Although, the Group and Parent Company target increasing the proportion of their total installed capacity generated by
renewable sources and intend to satisfy the Sustainability Performance Target in respect of the year ended 31 December
2023, there can be no assurance of the extent to which the will be successful in doing so or that any future investments they
make in furtherance of this target will meet investor expectations or any binding or non-binding legal standards regarding
sustainability performance. Adverse environmental or social impacts may occur during the design, construction and operation
of any investments the Group and Parent Company make in furtherance of this target or such investments may be criticised
by activist groups or other stakeholders, which may cause harm to their reputation.
In addition, meeting the Group and Parent Company’s sustainability targets may limit the options available to them
operationally and commercially, as not all potential courses of action in relation to investments and business opportunities will
be in alignment with such targets.
If the Group and Parent Company fail to meet their sustainability targets, they may be exposed to sanctions, if the objectives
coincide with regulatory requirements, it may harm their relationship with their existing shareholders and bondholders, as well
as discourage new investors, customers and potential business partners. Moreover, given that an increasing number of
financiers incorporate sustainability-linked requirements in their financing arrangements, the Group and Parent Company’s
inability or failure to meet such requirements could make it more difficult for them to obtain financing on favourable terms or
trigger contingent obligations in any such financing arrangement, which they may enter into in the future.
In light of the above, being subject to sustainability-related obligations may carry consequences, which could, have a material
adverse effect on the Group and Parent Company’s business, financial position and results of operations.
11. Risks related to the effective performance of the equipment and electricity and natural gas distribution networks
The Group and Parent Company’s business and ability to generate revenue depend on the availability and operating
performance of the equipment necessary to operate their power plants and electricity and natural gas distribution networks.
Mechanical failures or other defects in equipment, or accidents that result in non-performance or under-performance of a
power plant or electricity and/or natural gas distribution network, may have a direct adverse impact on the revenues and
profitability of the Group and Parent Company’s activities.
In addition, the Group and Parent Company periodically shut down certain power plants or individual units in their power plants
and incur expenses in connection with inspections, maintenance or repair activities. However, their power plants, distribution
infrastructure, mining facilities and information systems controlling these facilities are subject to failure, breakdowns,
unplanned outages, capacity limitations, system loss, breaches of security or physical damage due to natural disasters, such
as adverse weather conditions, storms, floods, fires, explosions, landslides, slope ruptures or earthquakes, sabotage,
terrorism, human error, computer viruses, fuel supply interruptions, criminal acts and other catastrophic events. The Group
and Parent Company may have to unexpectedly shut down all or part of their power plants as a result of the occurrence of
any of these events and any physical damage to their facilities may be costly to repair. In addition, the Group and Parent
Company’s regularly planned shut-downs may increase in the future due to, for example, increased environmental and other
requirements or regulations. Furthermore, the transmission of electricity from their power plants to their customers is
dependent upon the infrastructure and reliable operation of both the Transmission System and the Distribution Network. Any
failure or inadequate development of the Transmission System and/or Distribution Network, natural disasters and insufficient
maintenance could prevent the distribution from power plants to end-consumers.
Due to the complexity of operating power stations, the Group and Parent Company are not able to eliminate the risk of
unplanned outages and they cannot predict the timing or impact of these outages with certainty or provide any assurance that
accidents will not occur or that the preventive measures taken by them will be fully effective in all cases, particularly in relation
to external events that are not within their control, such as floods and other natural disasters. The Group and Parent Company’s
emergency response, disaster recovery and crisis management measures may not effectively protect them from these events.
Any failure, breakdown or unplanned outages in the Group and Parent Company’s power plants or any failure or interruption
in their transmission or distribution infrastructure could have a material adverse effect on their reputation, business, results of
operations and financial condition. may result in decreased electricity generation and customer dissatisfaction and may also
lead to liability for damages, the imposition of penalties and other unforeseen costs and expenses, which could have a material
adverse effect on the Group and Parent Company’s reputation, business, results of operations and financial condition.
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12. Risks related to the default or delay by any of the counterparties (partners, contractors, subcontractors and
suppliers), as well as by financial institutions
The Group and Parent Company have significant capital expenditure targets related to the modernisation, renewal and
construction of their power plants, RES facilities, mining and Distribution Network assets and other strategic objectives. The
Group and Parent Company face the risk of potential default or delay by their counterparties, which include their partners,
contractors, subcontractors and suppliers. Any default by their counterparties may affect the cost and completion of their
projects, the quality of their services, or expose them to reputational risk, business continuity risk and the risk of loss of
important contracts, as well as to substantial additional costs, particularly in cases where they would have to pay contractual
penalties, find alternative counterparties or complete the respective projects themselves.
Additionally, the Group and Parent Company are exposed to the risk that counterparties that owe them money, energy or other
commodities as a result of market transactions will not fulfil their obligations. Should the counterparties to these arrangements
fail to fulfil their obligations, the Group and Parent Company may be required to enter into alternative hedging arrangements
or honour the underlying commitment at then-current market prices. In such an event, they may incur losses in addition to
amounts, if any, already paid to the counterparties.
The Group and Parent Company rely on current and future relationships with major suppliers and service providers for the
operation and growth of their business and will continue to be reliant on third parties for their further development. For example,
the Group and Parent Company rely on external providers to regularly maintain and service their power plants, as well as on
external suppliers for their liquid fuel and natural gas requirements. The Group and Parent Company’s dependence on these
relationships may impact their ability to negotiate favourable contract terms with these counterparties, and there is no
guarantee that they will be able to replace any material suppliers or service providers in a timely manner, or at all, in the event
that any of these relationships were to be suspended or terminated. The Group and Parent Company may also be unable to
negotiate favourable contracts with their suppliers or service providers, or replace them appropriately in cases where such
suppliers or service providers are unable to fulfil their obligations, or terminate their cooperation with them. All of the above,
individually or in combination, could have a significant negative impact on the business activities, results of operations and
financial condition of the Group and the Parent Company.
13. Risks related with delays in constructing or connecting electricity generation facilities
The Group and Parent Company face risks relating to the construction of their electricity generation units, including risks
relating to the availability of equipment from suppliers, availability of building materials and key components, availability of key
personnel, including qualified engineering personnel, delays in construction timetables and completion of the projects within
budget and to required specifications. They may also encounter various setbacks such as adverse weather conditions,
difficulties in connecting to electricity transmission grids, construction defects, delivery failures by suppliers, unexpected delays
in obtaining zoning and other permits and authorisations or legal actions brought by third parties in relation to, among others,
the Group and Parent Company’s compliance with environmental laws and regulations.
Moreover, the Group and Parent Company may experience local opposition, which they may not be able to overcome on a
timely basis, if at all, in order to obtain the necessary licences, permits and financing. Various groups may publicly oppose
certain development projects. This opposition, along with political developments, could hinder or prevent their development of
such projects, which could have an adverse effect on the Group and Parent Company’s business, financial condition and
results of operations.
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14. Risks related to extraordinary events
Unexpected events, including, among other things, natural disasters, adverse meteorological conditions, fires, war, terrorist
activities and strikes may lead to a breakdown or the interruption of the operation of the mines, power plants and Distribution
Network. Additionally, adverse macroeconomic developments, as well as financial and operating problems of basic suppliers
and contractors may have a negative impact on the Group and Parent Company’s ability to purchase liquid fuels, spare parts
and materials and may increase their operating expenses.
The Group and Parent Company’s operations are susceptible to industrial accidents, and employees or third parties may suffer
bodily injury or death as a result of such accidents. In particular, while the Group and Parent Company believe that their
equipment has been well designed and manufactured and is subject to rigorous quality and assurance control tests, and
although their power plants and facilities are in compliance with applicable health and safety standards and regulation, the
design and manufacturing process is ultimately controlled by their equipment suppliers, manufacturers and engineering,
procurement and construction (the “EPC”) contractors rather than them, and there can be no assurance that accidents will not
result during the installation or operation of this equipment. Additionally, the mines and power plants that the Group and Parent
Company operate, their networks and employees may be susceptible to harm from events outside the ordinary course of
business, including natural disasters, catastrophic accidents and acts of terrorism. Such accidents or events could cause
severe damage to their power plants and facilities, requiring extensive repair or the replacement of costly equipment and may
limit their ability to operate and generate income from such facilities for a period of time. Such incidents could also cause
significant damage to natural resources or property belonging to third parties, or personal injuries, which could lead to
significant claims against the Group and Parent Company and their subsidiaries.
Furthermore, the consequences of these events may create significant and long-lasting environmental or health hazards and
pollution and may be harmful or a nuisance to neighbouring residents. The Group and Parent Company may be required to
pay damages or fines, clean up environmental damage or dismantle power plants in order to comply with environmental or
health and safety regulations. The Group and Parent Company may also face civil liabilities or fines in the ordinary course of
their business as a result of damages to third parties caused by the natural and/or man-made disasters mentioned above and
in the past, they have paid civil liabilities to third parties due to such disasters. These liabilities may result in the Group and
Parent Company being required to make indemnification payments in accordance with applicable laws.
The occurrence of one or more of any of these natural and/or man-made disasters, and any resulting civil liabilities or other
losses, could have an adverse effect on the Group and Parent Company’s business, financial condition and results of
operations.
15. Risks from the absence of Fixed Asset insurance
In addition to the risks of natural and man-made disasters, hazards such as fire, explosion, fuel spillage, emissions, collapse,
machinery failure and hydro dam leakage are inherent in the Group and Parent Company’s operations. These events may
occur as a result of inadequate internal processes, technological flaws, human error or external events. The hazards described
above can cause significant personal injury or loss of life, severe damage to and destruction of property, plant and equipment,
contamination of or damage to, the environment or natural resources and suspension of operations. The occurrence of any of
these events may result in the Group and Parent Company’s being subject to investigation, remediation requirements,
substantial damages, environmental clean-up costs, personal injury and natural resource damages, fines and/or penalties and
loss of revenue from suspended operations, among other things.
Except for directors’ and officers’ insurance, the Group and Parent Company do not currently maintain insurance against the
usual risks associated with their power plants (with the exception of certain renewable energy projects), distribution assets,
property and equipment. Only major information technology equipment, time-chartered tankers (against charterer’s risk),
transported fuel loads and transportation of heavy equipment (by any means) are insured. Moreover, materials and spare
parts as well as liabilities against third parties, including liabilities with respect to the Distribution Network, are not insured. This
is primarily due to the high costs associated with obtaining insurance against these risks compared to the cost for remediating
the damage should any of these risks occur, as well as the Group and Parent Company’s dispersed network of power plants.
During the construction period, major assets (except for networks) are insured by EPC contractors.
Any severe damage to the Group and Parent Company’s key power plants, distribution assets or mining equipment could
have a significant adverse impact on their business, financial condition or results of operations. Additionally, business
interruptions due to labour disputes, strikes, earthquakes, fires, and adverse weather conditions, among other factors, could
potentially, depending on their severity and duration, result in a loss of revenues or increased costs for the Group and Parent
Company. The Group and Parent Company can provide no assurance whether they will be able to repair or finance the
restoration of potential damage to their plants or equipment should these be too severe or widespread to repair on a timely
basis, if at all, which could have an adverse effect on their business, financial condition and results of operations, as well as
their reputation.
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16. Risk related to the operation, management and generation capacity of the Non- Interconnected Islands Network
The islands that are not connected to the mainland transmission system constitute the Non-Interconnected Islands Network
(NII) and are mainly served by autonomous oil-fired power plants, though in some of these islands, demand is also covered
by RES facilities. The largest power plants in the Non-Interconnected Islands are in Crete and Rhodes. In order to cover
demand in the NII, especially during the summer months, when the influx of tourists results in increased electricity
consumption, HEDNO, in its capacity as the operator of the NII Network, may rent or transfer generation capacity from one
island to another, as needed. The same procedure, of renting or transferring generating capacity, is also followed when
electricity demand in an island cannot be covered due to an unexpected major failure, and only for the time needed to repair
the failure. The Group and Parent Company cannot guarantee that failures in their NII Network will not occur in the future or
that they will be able to cover demand in the event of such failures. Any such failures in the NII Network may have an adverse
effect on the Group and Parent Company’s business, financial condition and results of operations, as well as their reputation.
The NECP foresees the interconnection of almost all currently NII with the Interconnected System by 2030. As the
interconnections progress from island to island, the relevant thermal power plants owned by the Parent Company will cease
operations and will be either decommissioned or set at cold reserve status (based on each island’s supply needs), following
an opinion by IPTO and a decision by RAE.
Following the electrification of the Non-Interconnected Islands with the Interconnected System, IPTO assumes management
responsibility of the islands’ high voltage grid system and power units dispatching. The grid status of islands is automatically
revised from non-interconnected to interconnected when grid interconnections, serving their energy needs, become fully
operational. However, Crete’s interconnection project is being developed in two stages: a small-scale interconnection, which
became operational in July 2021, and a large-scale interconnection expected in 2023. Following the launch of the small-scale
interconnection, Crete is considered as an interconnected island, even though this infrastructure’s capacity will be able to
cover only about 30.0% of the island’s energy needs and the remaining will continue to be covered by thermal and RES units
existing on the island. Based on Articles 106-108 of Law 4821/2021, as of 1 August 2021, the ownership of the Crete high
voltage system passed automatically from PPC to IPTO, while the management of the system passed from HEDNO to IPTO
on 1 November 2021 according to the latest RAE decision no. 734/28.09.2021. These provisions regulate, among others, the
transitional model of the market following the electrification of the small-scale interconnection.
For all the above thermal power plants the Group and Parent Company’s risk not recovering their unamortised capital costs.
In particular, for the thermal power plants to be set at cold reserve, the Group and Parent Company’s have an additional risk
of not recovering their operating expenses. The above may have an adverse effect (especially in the case of large islands
such as Crete and Rhodes) on the Group and Parent Company’s business, financial condition and results of operations.
17. Risk associated with the difficulty in hiring and retaining qualified personnel
In order to maintain and expand the Group and Parent Company’s business, they need to recruit, train, develop, promote and
maintain executive management and qualified technical personnel. Experienced and capable personnel in the energy industry
are in high demand both in energy industry as well as various organisations and authorities. Consequently, in cases where
the Group and Parent Company’s experienced employees leave their business, they may have difficulty, and incur additional
costs, in replacing them. In addition, the loss of any member of their senior management team may result in a loss of
organisational focus, poor execution of their operations and corporate strategy including strategies relating to the growth of
their business.
The Group and Parent Company’s failure to hire, train or retain a sufficient number of experienced, capable and reliable
personnel with appropriate professional qualifications, especially in senior and middle management positions, or to recruit
skilled professional and technical staff, could have a material adverse effect on their business.
Even though the share capital that is indirectly owned by the Hellenic Republic as a result of the Combined Offering, fell below
50%, it remains their largest shareholder. There are certain special laws applicable to the Public Enterprises that will continue
to apply and such laws may affect certain aspects of the Group and Parent Company’s employment policies, labour relations
and other matters. Moreover, the Parent Company will continue to be subject to special laws that apply specifically to it,
regardless of its shareholder composition. For example, the Parent Company is and will continue to be subject to provisions
regulating specifically the hiring and employment of its personnel, such as Articles 3 and 4 of Law 4643/2019, which, inter alia,
provide for the involvement of the Supreme Council for Civil Personnel Selection (or ASEP, a Greek independent authority
responsible for securing the correct implementation of public sector staff recruitments) in permanent recruitment processes.
Such laws and restrictions, which are not applicable to the Group and Parent Company’s competitors, may continue to limit
their ability to freely seek, attract and hire new personnel.
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18. Risks related to potential strikes
Almost all of the Group and Parent Company’s employees are members of labour unions. Their unions are considered to be
strong and politically influential, but the Group and Parent Company’s believe that their relations with them are generally good
despite certain claims of employees and pensioners against them and occasional strikes. There can be no assurance that
good relations will continue in the future. From time to time, the Group and Parent Company’s employees may engage in
industrial action that may disrupt their operations, which may have a material adverse effect on their business.
19. Risks related to the security of the IT systems
A large portion of the Group and Parent Company’s operations is based on information systems and they are exposed to the
risk of non- availability, data integrity corruption, power disruptions, malicious cyber-attacks and unauthorised access to these
systems. In order to minimise these risks, the Group and Parent Company take measures for the enhancement of their IT
security, such as defining and continuously updating their IT security policies and standards and covering their IT systems by
maintenance contracts. The Group and Parent Company believe that they currently have adequate insurance policies in place
to cover risks associated with the operation and maintenance of their IT infrastructure and perform regular audits of the security
of their systems. However, there can be no assurances that they will be able to prevent technology failures, IT security
breaches or malicious cyber-attacks in a timely manner or continue to have adequate insurance coverage to compensate for
related losses (including litigation claims, liability and data loss), which could disrupt their operations or harm their reputation
and have a materially adverse effect their business.
Risks related to macroeconomic conditions in Greece and the European Union
20. Risks related to adverse developments in the global and Greek economy
Substantially all of the Group and Parent Company’s assets and operations are in Greece and thus Greece’s economic
situation is anticipated to be reflected in the Group and Parent Company’s business. Economic data and fundamentals even
amidst the pandemic suggest that Greece has emerged from its previous downward trajectory in 2017. However, there is no
guarantee that the Greek economy will continue its growth trajectory and be able to ease the medium-to long-term debt
financing constraints on the country as well as whether the Greek government will be in a position to continue to implement
the structural reforms required by its enhanced post-programme surveillance framework and its Recovery and Resilience Plan
or to mitigate the consequences of the COVID-19 pandemic in full and in a timely manner. Any potential future deterioration
in economic activity in Greece or failure to perform necessary structural reforms could adversely affect the Group and Parent
Company’s business, financial condition and results of operations.
The Group and Parent Company’s business activities and results of operations are highly dependent on residential and
business demand for electricity in Greece, as well as their customers’ ability to pay their electricity bills in a timely manner.
Electricity consumption in Greece is heavily dependent on levels of disposable income, spending capacity and employment
trends, as well as the availability and cost of funding for their industrial and commercial customers. The financial crisis and
prolonged recession affected the available income of customers and, consequently, the Group and Parent Company’s
business. The financial crisis also led, in the past, to a material increase in delinquencies and defaults by the Group and Parent
Company’s customers. More recently, the COVID-19 pandemic has also adversely affected economic activity. Any potential
future deterioration in economic activity in Greece could result in a decrease in demand for the electricity the Group and Parent
Company’s supply and/or generate an increase in unpaid and overdue bills and provisions for expected credit losses, which
could adversely affect the Group and Parent Company’s business, financial condition and results of operations.
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21. Risks related to the impact of the COVID-19 pandemic
Beginning in December 2019, the COVID-19 pandemic spread rapidly throughout the world, contributing to a climate of
macroeconomic uncertainty, disruption and significant volatility in the financial markets. Although COVID-19 vaccination
programmes are progressing, such containment measures continue to impact economic activity. It remains unclear how long
these restrictions will be in place and what their ultimate impact will be on global, regional and national economies. There can
also be no assurance that a potential tightening of liquidity conditions in the future as a result of, for example, further
deterioration of public finances of certain European countries will not lead to new funding uncertainty, resulting in increased
volatility and widening credit spreads.
The degree to which the COVID-19 pandemic impacts the Group and Parent Company’s results of operations, liquidity, access
to funding and financial position is outside of their control and will depend on future developments, such as the further spread
of COVID-19 or variants thereof, the success and pace of vaccination programmes and the response of the local authorities
and the global community, which are still highly uncertain.
In response to the COVID-19 pandemic, the Group and Parent Company have prepared an operational plan to ensure the
continuity of their activities. This plan is continuously supplemented and revised, taking into account the development of the
COVID-19 pandemic and health and safety measures from governmental bodies. Given the uncertainty around the COVID-
19 pandemic, no assurance can be provided that the measures taken will be adequate in protecting the Group and Parent
Company’s staff and operations from the effects of the COVID-19 pandemic.
Even after the COVID-19 pandemic has been contained, the Group and Parent Company may continue to face certain adverse
impacts on their business, operating results, financial condition and prospects as a result of its global economic impact,
including a recession, declines in income levels and loss of personal wealth, economic slowdowns or increases in
unemployment levels.
22. Risks related to European economic and geopolitical developments
In the ordinary course of the Group and Parent Company’s business, they are exposed to the risk of a reduction in demand
for their electricity, which may occur as a result of global financial and economic uncertainty.
The short and long-term implications of Russia's invasion of Ukraine are difficult to predict at this time. The imposition of
sanctions may have a negative impact on both energy and financial markets due to the impact on quantities and prices of
energy goods, mainly electricity and gas, which in turn may have a material adverse effect on the Group and Parent Company’s
business. Furthermore, the Group and Parent Company’s activities and operations, related to cyber security, supply chain,
energy markets and their potential inability to access additional funds, may have a material adverse effect on their business,
financial condition and results of operations. Therefore, due to the extremely uncertain and dynamic nature of these events, it
is currently not possible to estimate the impact of the Russian-Ukraine war on the business of the Group and the Parent
Company.
Any changes in global commodity prices, available cross-border capacities or material changes in electricity demand in Europe
could have an impact on electricity prices and a material adverse effect on the Group and Parent Company’s business, results
of operations and financial condition. Furthermore, a potential disruption in gas supply could have a material adverse effect
on the Parent Company’s business.
Risks related to the regulatory and legal framework
23. Risks associated with a complex and uncertain regulatory framework in Greece and the EU
The laws, regulations and policies of the Hellenic Republic and the EU affect the Group and Parent Company’s business,
financial condition and results of operations. Regulation of the Greek electricity market changed significantly following the
implementation of regulatory and legal reforms designed to liberalise and create more competition in the Greek electricity
market. The European Commission monitors the Hellenic Republic to ensure that the Greek regulatory regime and electricity
market comply with the applicable Electricity Directives and other EU laws and regulations.
The European Commission and other EU institutions, together with national courts and tribunals, also enforce European
competition, environmental and other rules. The European Commission may adopt implementing and/or delegated acts at any
time, and applicable Greek law and regulations may change in the future pursuant to decisions of the EU institutions and/or
policies of the Greek State with respect to relevant directives, laws and regulations. In addition, future changes in EU or Greek
regulatory policies, including, for example, a determination that there is insufficient liberalisation or competition in the electricity
market, may influence future regulation. Potential amendments to the regulatory and legislative framework governing the
electricity market, as well as RAE’s decisions concerning the regulation and functioning of the Greek electricity market in
general, and any restructuring or other changes to the Group and Parent Company’s business driven by the regulatory
framework, may have a material adverse effect on their business, financial condition and results of operations.
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In addition to these risks, the Greek electricity system and market are in the midst of broader developments as the regulatory
landscape in Europe is subject to changes, which are related to promoting the integration of European electricity markets,
enhancing competition in energy markets, developing the renewable energy sources, limiting the use of solid fossil fuels in
electricity generation providing consumers with viable alternatives and generally promoting sustainable energy investment. As
such, the Group and Parent Company anticipate that the regulatory framework of the Greek energy market will continue to
evolve in light of ongoing European and national developments, decisions and regulations. Any potential modifications and
adjustments to the applicable regulatory and legislative framework, which would restrict business activities or lead to
inadequate market liberalisation, could have a significant adverse effect on the Group and Parent Company’s business,
financial position and operating results.
In particular the following are under discussion in the EU:
• Implementation of the EU Green Deal plan:
• Energy Taxation:
• Provisions concerning the “Just Transition Fund”
• European Regulatory Framework on Sustainable Finance
As an electricity utility company, theParent Company Parent Company is subject to the regulatory framework and requirements
prescribed by applicable regulatory and administrative authorities, such as RAE. In view of its role as an electricity utility
company, itsday-to-day operations inherently entail frequent communications and interaction with RAE for the purpose of
ensuring its compliance with the regulatory regime applying to its business from time to time.
Given the increased human, technical and financial resources needed to respond to decisions of RAE or other national or
international institutions, especially as such decisions may not take into account all relevant factors which could have uncertain
consequences on its business and its operations, the Parent Company cannot give any assurances that Parent Company
will be at all times in a position to fully and timely satisfy the regulatory, environmental, financial and any other requirements
imposed by the relevant regulator, which could have a significant adverse effect on the Group and Parent Company’s business,
financial position and operating results.
24. Risks related to uncertain or unexpected decisions of governmental or regulatory authorities
The Group and Parent Company’s business and industry are subject to extensive and complex regulation, much of which may
be open to interpretation and subjective implementation by numerous national and international institutions as well as
regulatory and administrative authorities. Regulation impacts many areas of their business, including the sources of their power
generation activity, the overall energy market structure, the construction and operation of electricity generation facilities, the
trading of commodities and financial derivatives, market behaviour rules, present or prospective wholesale or retail competition
and general health and safety and environmental matters. These rules and policies have affected and may continue to affect
the Group and Parent Company’s business, and any changes in law or regulation, or decisions by governmental bodies or
regulators, including RAE, could negatively affect their business.
In particular, the Group and Parent Company’s results of operations, financial position and cash flows historically have been
affected by a number of regulatory developments, including the impact of structural reforms, special levies and fees, PSOs
and developments aiming at the liberalisation and increased competition in the Greek electricity market. Although some of
these special levies and fees have now been abolished, there is no assurance that additional levies and fees will not be
imposed upon the Group and Parent Company in the future, which could have a significant adverse effect on their business,
financial position and operating results.
There are also inherent risks that governmental or regulatory authorities will interpret or apply laws and regulations in a manner
the Group and Parent Company do not expect or agree with. The Group and Parent Company have in the past disputed
adverse or unfavourable decisions of administrative, regulatory and judicial authorities, and they may become subject to
disputes with competent authorities over similar matters in the future. Adverse regulatory decisions, interpretations or
administrative actions, as well as institutional resistance, could have uncertain and unexpected consequences on the Group
and Parent Company’s business and operations, which, in turn, could have a material adverse effect on their business, results
of operations and financial condition.
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25. Risks related to regulatory interventions and/or proceedings relevant to the position and share in a formerly
monopolistic market
In light of the concurrent competence of the EU and their member states in shaping energy policy and liberalising the energy
sector into a unified market across the EU, over the last decade the Group and Parent Company have been made subject to
certain regulatory interventions and/or proceedings initiated by European regulators and/or the Greek government with respect
to, among others, the reduction of the Group and Parent Company’s market share in the wholesale and supply electricity
market and their position as the only vertically integrated electricity producer and supplier with exclusive access to certain
types of power generation, such as lignite.
Law 4389/2016 set a target, according to which Parent Company was obliged to reduce its market share in both the generation
(plus imports) and the supply markets in the Interconnected System to below 50.0% by no later than the end of 2019. While
the targeted decrease in its generation market share has been achieved within this timeframe, the share in the supply market
remains at 64.9% (with the supply market share in the Interconnected System at 63.8%) as at 31 December 2021. The
European Commission has acknowledged, in Greece’s increased surveillance report of November 2020, a continued
downward trend in such share, however, the Group and Parent Company believe a substantial portion of the supply market
could be practically impervious to opening up given the payment profiles of certain segments of the retail market as well as
other reasons. Accordingly, there can be no assurance that the Parent Company will be successful in reducing its supply
market share to below 50.0% and it cannot preclude that the Group and Parent Company may be made subject to further
structural, financial or other measures towards this and/or be imposed with fines if they were to be found to have failed in
timely reducing the supply market share or complying with any such measures. If any such circumstance was to occur, the
Group and Parent Company’s business, financial condition and results of operations could be adversely affected.
There have been several regulatory interventions with respect to Parent Company’s exclusive access to lignite. As a result of
Greece’s conviction regarding the lignite power exclusivity, which was until recently pending as of 2008 (the “Anti-Trust Case”),
the Greek government has sought to procure the Parent Company’s divestment from certain lignite power plants, which was
abandoned on 18 July 2019. Further to discussions between the Greek Ministry of Environment and Energy and the European
Commission in relation to the Anti-Trust Case remedies, it was announced in January 2021 that, following appropriate market
testing, a new mechanism will be put in place for the next three years whereby the Group and Parent Company will be entering
into bilateral contracts with suppliers for lignite-produced power against prices linked to the Day-Ahead Electricity Market. The
measures so proposed set out that:
• The Group will sell quarterly forward electricity products on the organised exchanges of the European Energy
Exchange (“EEX”) and/or the HEnEx, resulting in buyers obtaining electricity at a stable price every day during the
quarter in question.
• The Group will obtain a net seller position on EEX and/or HEnEx, meaning that its sales of the forward electricity
products in question should exceed its purchases by a certain volume. The volumes to be sold are calculated as a
share of the Group’s lignite-fired generation during the respective quarter of the previous year.
• The Group’s obligations in terms of the timing of the sales and of the deliveries will give its competitors the ability to
hedge against price volatility for a sufficiently long period in advance.
The volumes that the Group and Parent Company are expected to sell to their competitors are directly linked to the amount of
their lignite-fired generation but the remedies do not require them to fulfil the volumes they have to sell using lignite fired
generation. The Group and Parent Company will have full discretion to fulfil these volumes through any possible source
including gas-fired generation, hydropower or other renewables and purchases from third parties. The European Commission
has concluded that the proposed measures fully address the infringement identified by the European Commission in its 2008
and 2009 decisions in light of the Greek plan to decommission all existing lignite-fired generation by 2023 in line with Greece’s
and the EU’s environmental objectives. The remedies will lapse when existing lignite plants stop operating commercially (which
is currently expected by 2023) or, at the latest, by 31 December 2024. Although the main elements of these measures are in
line with the Group and Parent Company’s expectations, there can be no assurance that the official decision of the European
Commission will not have a material adverse effect on their business, financial condition and results of operations.
Furthermore, in February 2017, an investigation for possible abuse of the Parent Company’s position in the wholesale power
market was initiated by DG Competition under Article 102 TFEU and is currently under way. With respect to this investigation,
DG Competition has sent three sets of official “Requests for Information” to the Parent Company so far. All three Requests for
Information have both been duly and timely replied to by the Parent Company. No statement of objection has been notified to
the Parent Company. On 16 March 2021, DG Competition formally opened an investigation in this respect. In particular, the
European Commission is concerned that the Parent Company may have restricted competition in the Greek wholesale
electricity markets with its bidding behaviour, namely by allegedly adopting predatory bidding strategies hindering the ability
of its rivals to compete in the wholesale and related electricity markets. There has been no definitive indication as to the timing
of this investigation and there is no guarantee about the outcome of this investigation and/or the possibility of extending the
scope of this investigation to other market segments. In case DG Competition decides that the Parent Company has breached
competition law, then penalties and/ or remedies may be imposed on it, which may have an adverse impact on its business,
financial condition and results of operations.
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26. Risks related to the prior subjection of PPC to public enterprises
Following the recent increase in the Parent Company’s share capital, the indirect, participation of the Greek State, through the
Hellenic Corporation of Assets and Participations S.A. (“HCAP”), decreased to less than 50%. As a result, PPC has ceased
to be under the control of the state and to be a public enterprise within the meaning of Law 3429/2005. The transition to a new
operating framework, which will now correspond to that of a private sector company, rather than a public enterprise, is expected
to lead to interpretive issues and disputes, which may affect its operation. At the same time, laws will continue to be applied
to PPC, particularly Law 4643/2019, which concern the Group and the Parent Company exclusively. Despite the fact that this
law facilitates the Parent Company’s more flexible operation in a number of areas, such as e.g. in the procurement area, its
degree of flexibility still lags behind that of its competitors, purely private companies.
27. Risks related to the licences and permits
The Group and the Parent Company’s mining, generation, distribution and supply of electricity operations require various
administrative authorisations at local, regional and national levels The procedures for obtaining and renewing these
authorisations can be protracted, complex and not entirely predictable. Additionally, any failure to obtain or renew the
necessary licences and permits might result in interruptions to some of the Group and the Parent Company’s operations,
including also their ability to obtain funding for their activities.
As a result, the Group and the Parent Company may incur significant expenses in order to comply with the requirements for
obtaining or renewing these authorisations. Furthermore, these licences and permits, once granted, or the existing licences
and permits, once renewed, may have more stringent environmental conditions that will require the Group and the Parent
Company to make additional and possibly unanticipated expenditures. In addition, the Group and the Parent Company often
invest resources on projects or activities prior to obtaining the necessary permits and authorisations, particularly in connection
with feasibility studies and environmental studies.
Delays, high costs or the suspension of the Group and the Parent Company’s industrial activities due to their inability to obtain,
maintain, or renew authorisations, may also have a negative impact on their business activities and profitability. In addition,
the operations of the Parent Company and HEDNO are regulated by the Energy Markets Law and require them to obtain a
licence from RAE. Articles 122 et seq. of the Energy Markets Law applies to the operation, legal status and structure of the
Distribution Network. These articles set out the relationship between the Parent Company and HEDNO. By virtue of Articles
122 and 126, respectively, the licence for exclusive ownership and the licence for the operation of the Network have been
issued by RAE (decisions no. 82/2014 and 83/2014, respectively). These two licences restrictively define the competences of
each of the Parent Company and HEDNO and their obligations with respect to the Network, as well as their respective rights
upon it. As a result, the Parent Company’s ownership right (as defined in Licence 82/2018) is very limited. Judicial decisions
have already ruled upon this limited right and have released the Group and the Parent Company from any liability for actions
and omissions stemming from the management of the Distribution Network. By virtue of Law 4819/2021, upon transfer of the
ownership of the distribution assets to HEDNO through the Hive- Down, the licence for the exclusive ownership of such assets
will be transferred to HEDNO by operation of law. However, there can be no assurance that the implementation of certain
provisions of the licences mentioned above may not have an adverse effect on the Group and the Parent Company’s business,
financial condition or results of operations.
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28. Risks associated with health, safety and environmental laws and regulations
The Group and the Parent Company’s core operations of electricity generation, electricity distribution and mining are subject
to extensive environmental regulation under Greek law, including laws adopted to implement EU Directives and international
agreements. Environmental regulations and standards affecting the Group and the Parent Company’s business primarily relate
to emissions, mine reclamation, waste disposal, water management and dealing with water pollution incidents. The primary
focus of environmental regulations applicable to the Group and the Parent Company’s business is to reduce such emissions.
The Group and the Parent Company may incur significant costs in complying with environmental legislation and regulation,
which require them to implement preventative or remedial measures. In some cases, environmental issues may require them
to restrict or even terminate existing operations or projects. Future laws or regulations such as the use of certain fuels or
technologies or the upgrading of environmental investments or charging for water use at hydropower and / or thermal power
plants could potentially have an impact on business, strategic and financial planning. Due to the nature of the Group and the
Parent Company’s operations, they are involved in a number of environmental proceedings that arise in the ordinary course
of business. Future related costs as a result of financial penalties, enforcement actions and/or third-party claims for
environmental damage and/or insurance cost for environmental liability could have a material adverse effect on their business,
results of operations and financial position, as well as their reputation.
The Group and the Parent Company are also required to obtain environmental and safety permits for their operations from
various governmental authorities. Certain permits require periodic renewal or review of their environmental terms as well as
continuous monitoring and compliance reporting. Compliance with obligations under applicable environmental laws and
regulations, including soil and water decontamination, can also be extremely costly to comply with.
Violations of applicable environmental laws and regulation or non-compliance with their licences could result to complete
shutdown of power plants, penalties and other sanctions, in addition to negative publicity and significant damage to their
reputation. While environmental and health and safety laws are complex, change frequently and tend to become more stringent
over time. Group and the Parent Company have budgeted for future capital and operating expenditures in order to comply
with current applicable environmental and health and safety laws. Furthermore, new laws may be adopted imposing additional
capital expenditure requirements resulting in even more significant capital expenditure requirements. Therefore, the Group
and the Parent Company’s costs of complying with current and future applicable environmental laws and their obligations
arising from past or future releases of, or exposure to, hazardous substances could have a material adverse effect on their
business, as well as their reputation.
In addition, the Group and the Parent Company may incur increased costs in relation to the decommissioning of power plants
and the closure and reclamation of their mines, the rehabilitation of any damages related to the operation or their mines and
the decommissioning of mine equipment and facilities. Since they are involved in open pit mining operations, they are required
by Greek law to remediate land affected by their mining operations and, further, to have in place cash reserves for works
relating to open pit mine reclamation. The cost of such works depends on the type of reclamation, rehabilitation or restoration
and is subject to periodic review. Furthermore, as an owner and operator of electricity generation and distribution facilities,
they may incur in the future significant costs and expenses in connection with the decommissioning of such facilities, which
could have a material adverse effect on the Group and the Parent Company’s business, results of operations, financial
condition and cash flows.
29. Risk associated with the deficit in the Renewables Special Account
The Renewables Special Account (ELAPE, per its Greek initials) was established in 1999 as means to support renewable
energy generation in Greece. The deficit of the Renewables Special Account, which has arisen a number of times, due to the
account’s revenues being insufficient to cover payments to RES at a regulated tariff, created both uncertainty and a market
liquidity issue. There is uncertainty as to whether or to what extent such measures to reduce any future possible new deficit
in the Renewables Special Account may adversely affect the Group and the Parent Company’s results of operations and cash
flows and they cannot preclude that their duration will be extended or that other measures will be put in place to address the
deficit of the Renewables Special Account to the detriment of their business, financial position and results of operations.
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30. Risk related to the provision of Public Service Obligations (PSOs)
The Group and the Parent Company, and all other Suppliers, are entitled to compensation for the PSOs they provide, which
is based on the relevant costs incurred and is calculated according to the methodology established by RAE. Potential changes
in compensation rights for the existing PSOs that the Group and the Parent Company provide, or changes in the calculation
methodology of such PSO compensation that may result in inability to fully recover their costs, or partial recovery of PSO
compensation for previous years, or a potential introduction of new PSOs for which they may not be entitled to full
compensation, may have an adverse effect on the Group and the Parent Company’s costs, financial position, results of
operations and cash flows.
31. Risk of non-compliance with the European Union's General Data Protection Regulation ("GDPR")
The EU’s General Data Protection Regulation (“GDPR”) became effective on 25 May 2018. The GDPR implements more
stringent operational requirements for processors and controllers of personal data. Although the Group and the Parent
Company have taken such actions as required in order to be materially compliant with the data protection legislation, they
operate in an industry in which they process a considerable amount of personal data, including in connection with the collection
of overdue receivables, and therefore are inevitably more exposed to the risk of being penalised for failing to continuously
comply with the regulations imposed.
If the Group and the Parent Company fail to maintain compliance with applicable data collection and privacy laws or other
applicable data security standards, they could be exposed to administrative sanctions, including reprimands and fines,
penalties, restrictions, litigation or other expenses. Any inability to adequately address data protection and/or privacy concerns,
even if unfounded, or comply with applicable privacy or data protection laws, regulations and policies, could result in additional
cost and liability to the Group and the Parent Company, damage their reputation, and adversely affect their business.
32. Litigation Risk
1 The Group and the Parent Company are defendants in a significant number of legal proceedings arising from their
operations which, if determined unfavorably, could have a material adverse effect on their business, financial position or
results, or reputation.
2 In addition, the Group and the Parent Company are one of the largest listed industrial groups in Greece, with complex
activities and operations across the country in heavily regulated industry sectors. Violations of such legislations, including rules
and regulations of regulatory authorities, entail, among others, administrative fines and criminal sanctions for the Board of
Directors, employees and utilities that are subject to those rules.
3 In the ordinary course of the Group’s and the Parent Company’s business, from time to time, competitors, suppliers,
customers, owners of property adjacent to our properties, the media, activists, and ordinary citizens, raise complaints (even
to public prosecutors) about their operations and activities, to the extent they feel that these activities and operations cause or
are likely to cause economic or other damage to their interests, businesses or properties or adverse environmental impact in
general. In the context of advancing those complaints, these parties often file criminal complaints against the Group and the
Parent Company. In this context, reports involving complaints and accusations for allegedly unlawful acts of executives against
them usually involve their further investigation by the prosecuting authorities in the so-called preliminary proceedings, which
usually ends up in the closing of the investigated case due to lack of conclusive evidence.
4 As a result, the Group’s companies and the members of their Board of Directors may have and could be in the future,
subject to various criminal or other investigations at various stages of procedural advancement. These investigations and legal
proceedings may disrupt the Group’s and the Parent Company’s daily operations to the extent that the officers and directors
involved need to spend time and resources in connection therewith. They may also adversely affect their reputation and cause
them to incur significant legal fees, which could in turn have a material adverse effect on their business, financial position or
results.
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Risks related to the Group and Parent Company’s financial condition, financial results and financing arrangements
33. Credit Risk
Even though the Parent Company has entered into settlement agreements providing for discounts to Low and Medium Voltage
customers it continues to experience delays in collecting payments of overdue bills from a large number of Low and Medium
Voltage customers, and there is no assurance that settlement terms will be observed by its customers. In particular, the Parent
Company’s customers’ ability to comply with settlement agreements and make timely payments have been, and may continue
to be, impacted by general macroeconomic conditions in Greece.
Furthermore, the Parent Company may face additional difficulties or delays in collecting overdue bills from its Low and Medium
Voltage customers as a consequence of the inclusion of additional charges in the invoices that it is legally obliged to collect in
favour of third parties. Its collection enforcement mechanisms have been and may be further affected by legal or regulatory
measures, including decisions and guidelines or further interventions by RAE.
The Group and the Parent Company have implemented a number of initiatives to improve collection techniques and reduce
provisions for expected credit losses. They have also arranged for securitisations backed by performing and non-performing
customer receivables However, there can be no assurance that these actions will contribute towards the reduction of overdue
receivables, or the increase in the collection of overdue payments, if at all. Their customers’ inability to pay their bills on a
timely basis combined with their difficulty in collecting the overdue payments may have a material adverse impact on the Group
and the Parent Company’s financial position, results of operations and cash flows.
34. Cash flow risk
The Group and the Parent Company face liquidity risk, which may result in additional working capital requirements, due to a
number of factors relating to their ability to timely collect from their customers, including:
• delays in the payment or non-payment of energy bills, which may increase if economic conditions in Greece
deteriorate;
• the Parent Company’s obligation to pay the Renewables special levy, the special consumption tax on electricity, as
well as VAT when due, irrespective of whether it has collected the relevant amounts from its customers;
• the burden associated with the collection of taxes and levies that are not related to the sale of electricity, such as
municipal taxes and levies that are currently collected through electricity;
• the increase of Vulnerable customers, such as families with low income, long-term unemployed, people with special
needs and people on life support, who are entitled to lower tariffs; and
• incidents of electricity theft and unauthorised reconnection of electricity supply in cases of electricity disconnection
due to customer defaults.
The Group and the Parent Company may also face, following decisions by the Regulator, increased working capital
requirements in relation to their payments to and from other market operators that could have a significant effect on their
liquidity.
In addition, the Group and the Parent Company’s ability to manage their working capital requirements and liquidity risk
depends, in part, on maintaining positive working relationships with their suppliers. If they are unable to maintain current
working arrangements with their suppliers, their working capital requirements could materially increase and result in increased
liquidity risk, which may have a material adverse effect on the Group and the Parent Company’s business, financial condition
and results of operations.
35. Credit rating risk
On the date of publication of these financial statements, the Group and the Parent Company have a credit rating of B+ with a
positive outlook by Standard & Poor’s, D from ICAAP and BB- with a stable outlook by Fitch Ratings Inc. Their ratings reflect
the respective rating agencies’ opinions of their financial strength, operating performance and ability to meet their debt
obligations as they become due.
The Group and the Parent Company’s ability to access the capital markets and other forms of financing (or refinancing), and
the costs associated with such activities, depend in part on their credit rating, which is closely related to that of the Greek
State. The Group and the Parent Company currently expect to operate with sufficient liquidity to maintain or improve their
current credit rating. However, this is dependent on a number of factors, some of which may be beyond their control. If they
fail to maintain adequate levels of liquidity or as a result of certain changes in their capital structure, their rating may be
downgraded, which could have a material adverse effect on the Group and the Parent Company’s business, results of
operations and financial condition.
38
36. Risks associated with potential changes in the current taxation regime in Greece
The taxation regime for corporations in Greece is frequently revised and the Group may be subject in the future to increased
taxation rates. The imposition of any new taxes, royalties or levies or changing interpretations or application of tax regulations
by the tax authorities as well as the harmonisation of Greek and EU tax law and regulation may result in additional amounts
being payable by the Group and the Parent Company, which could have a material adverse effect on their business, results
of operations, financial condition and cash flows.
Even if the effect of these taxes and levies is passed onto the Group and the Parent Company’s customers, such taxes and
levies may impact collection rates for their electricity bills, lower the demand for electricity or result in a loss of market share
due to competition, all of which will have negative impact on the Group and the Parent Company’s cash flow. Conversely, if
they do not increase their tariffs to match an increase in taxation, an adverse impact on their financial results and liquidity may
follow. There may also be other new or increased taxes in the future that could increase the Group and the Parent Company’s
costs and/or reduce their turnover, thereby adversely impacting their business, financial condition and results of operations.
37. Risk from potential undertaking of Social Security liabilities
Despite the fact that the Group and the Parent Company estimate that they have no obligation under existing laws to cover
any potential future differences between the total income of EFKA and the payment obligations assumed by the Hellenic State
relating to the Group and the Parent Company’s retired personnel, there can be no assurance that the existing social security
laws will not change, or that the Group and the Parent Company will not be required in the future, by law or otherwise, to
contribute or provide significant additional funds or assets to EFKA.
38. Interest rate and foreign currency risk
The Group and the Parent Company’s debt obligations consist of bank loans, bonds and overdrafts. It is their policy to have a
balanced distribution of the loan portfolio between fixed and variable interest rates according to the prevailing conditions and
to hedge on a case-by-case basis through derivatives, solely to mitigate risk, against the fluctuation of floating interest rates
and/or foreign currency exchange rates affecting their debt portfolio. All of their indebtedness is denominated in euro.
Furthermore, the fluctuation of the euro against U.S. dollar exchange rate may adversely impact the prices of the Parent
Company’s liquid fuel purchases (diesel and heavy fuel oil) and the price of natural gas purchases, whose price is calculated
based on the oil price. As oil prices are expressed in U.S. dollars, the Parent Company is exposed to foreign currency risk in
the event of an appreciation of the U.S. dollar against the euro. In order to mitigate the foreign currency risk arising from liquid
fuel purchases, the Parent Company examines the possibility of undertaking, on a case-by-case basis and according to the
prevailing market liquidity circumstances, hedging transactions for this risk. There is no assurance that such undertaken
hedging transactions will provide full or adequate protection against these risks.
39. Risks relating to impairment of assets
The Group and the Parent Company are exposed to risks related to the value of their participation in the share capital of
subsidiaries and associates and the value of their property plant and equipment, including the effects from a significant change
and/or non-recoverability of the value of their participation in the share capital of their subsidiaries and associates, as well as
from a significant change in the fair value of the property plant and equipment in the context of the periodic reassessment.
In the future, the value of the Group and the Parent Company’s participation in the share capital of subsidiaries and associates
and the value of their property, plant and equipment may be significantly impaired due to their earlier retirement or loss of
competitiveness due to regulatory or policy changes or other such circumstances beyond their control.
40. Risks associated to loan covenants
Certain agreements governing the Group and the Parent Company’s existing indebtedness contain covenants that impose
significant restrictions on the way they can operate and require the Company to maintain specified financial ratios.
These covenants could limit the Group and the Parent Company’s ability to finance future operations and capital needs and
their ability to pursue acquisitions and other business activities that may be in their interest. The Group and the Parent
Company’s ability to comply with these covenants and restrictions may be affected by events beyond their control, such as
prevailing economic, financial and business conditions.
If a default occurs under the above loans, the lenders thereunder could terminate their commitments and declare all amounts
outstanding, together with accrued and unpaid interest and other fees, to be immediately due and payable. Borrowings under
other debt instruments that contain cross-acceleration or cross-default provisions also may be accelerated or become payable
on demand. In these circumstances, the Group and the Parent Company’s assets may not be sufficient to repay in full that
indebtedness and their other indebtedness then turn to outstanding.
39
41. Leverage risk
The Group maintains a high net leverage ratio. This significant leverage could have important consequences for the Group’s
business and operations.
The Group and the Parent Company’s ability to make payments on and refinance their indebtedness and to fund working
capital expenditure and other expenses will depend on their future operating performance and ability to generate cash from
operations, which is subject, in large part, to general economic, competitive, legislative and regulatory factors and other factors
that are beyond their control. Any refinancing of the Group and the Parent Company’s indebtedness could be at higher interest
rates than their current debt and it may be required to comply with more onerous financial and other covenants, which could
further restrict their business operations and may have a material adverse effect on their business, financial condition, results
of operations and prospects.
There can be no assurance that the Group and the Parent Company will be able to refinance their indebtedness as it comes
due on commercially acceptable terms or at all and, in connection with the refinancing of their debt or otherwise, they may
seek additional refinancing, dispose of certain assets, reduce or delay capital investments, or seek to raise additional capital.
The Group and the Parent Company may be able to incur substantial additional debt in the future, including indebtedness in
connection with any future acquisition. Although their financing agreements contain restrictions on the incurrence of additional
indebtedness, these restrictions are subject to a number of significant qualifications and exceptions.
Balances and Transactions With Related Parties
PPC balances with its subsidiaries as of December 31
st
, 2021 and December 31
st
, 2020 are as follows:
December 31, 2021
Amounts in ‘000€
December 31, 2020
Amounts in ‘000
Receivables
(Payables)
Receivables
(Payables)
Subsidiaries
PPC Renewables S.A.
1,814
(399)
1,275
-
HEDNO S.A.
221,202
(380,849)
496,022
(681,929)
LIGNITIKI MEGALOPOLIS S.A.
25,885
(684)
51,957
(709)
LIGNITIKI MELITIS S.A.
20,999
30,002
-
ILIAKA PARKA ENA S.A
13
-
-
-
ILIAKA PARKA DIO S.A
4
-
-
-
ILIAKO VELOS ENA S.A
143
-
-
-
ARKADIKOS ILIOS ENA S.A
11
-
-
-
ARKADIKOS ILIOS DIO S.A
3
-
-
-
AMYNTAIO PV PARK ENA S.A
2
-
-
-
AMYNTAIO PV PARK DIO S.A
2
-
-
-
AMYNTAIO PV PARK TRIA S.A
2
-
-
-
AMYNTAIO PV PARK TESSERA
S.A
2
-
-
-
AMYNTAIO PV PARK PENTE S.A
2
-
-
-
AMYNTAIO PV PARK EKSI S.A
2
-
-
-
AMYNTAIO PV PARK EPTA S.A
2
-
-
-
AMYNTAIO PV PARK OKTO S.A
2
-
-
-
AMYNTAIO PV PARK ENNEA S.A
2
-
-
-
PPC Finance Plc.
-
(71)
-
(37)
PPC Elektrik
110
-
649
-
PPC Bulgaria JSCO
9
(374)
-
(1,537)
PPC Albania
40
-
-
-
EDS AD Skopje
20,026
-
395
(142)
Total
290,277
(382,377)
580,300
(684,354)
The company has an additional claim from the subsidiary HEDNO SA amounting to € 43.4 million due to repayment of loans
on behalf of the subsidiary, which came to it due to the separation of ownership of the Network to HEDNO SA.
Within the first half of 2021, a dividend of € 6.7 million was approved by the subsidiary HEDNO SA. from profits for the year
ended December 31, 2020, which was paid to the Parent Company on September 6, 2021. Respectively, within the first half
of 2020 the Parent Company received a dividend of € 23.0 million from the subsidiary HEDNO SA from Profits for the year
ended December 31, 2019.
40
The above mentioned balances with the subsidiary PPC Finance Plc relate to its management expenses, which are ultimately
borne by the Parent Company.
On December 31, 2021, the Parent Company recognized a forecast of expected credit loss on receivables and other accrued
income for the subsidiary "Lignitiki Megalopolis SA". and "Lignitiki Melitis SA". amounting to € 25.2 million (31.12.2020: € 51.2
million) and € 21 million (31.12.2020: € 30.0 million) respectively.
On March 19, 2021, the Parent Company signed a loan agreement with the 100% subsidiary Energy Deliver Solutions (AD)
JSK Skopje amounting to € 3.7 million, with an interest rate of 3.8% and an expiration date of June 30, 2021, which it raised
the subsidiary on the same date.
On August 3, 2021, this loan obligation to the Parent Company was converted into a share capital of the subsidiary.
On December 24, 2021, EDS received a temporary cash facility of € 4.8 million from the Parent Company, which it returned
on February 23, 2022.
The Transactions of the Parent Company with subsidiaries for the period ended December 31, 2021 and December 31, 2020
are as follows:
December 31, 2021
Amounts in ‘000€
December 31, 2020
Amounts in ‘000€
Invoiced to
Invoiced from
Invoiced to
Invoiced from
Subsidiaries
PPC Renewables S.A.
2,998
(380)
2,313
-
HEDNO S.A.
1,567,808
(1,653,766)
1,673,252
(1,791,851)
LIGNITIKI MEGALOPOLIS S.A.
98,775
(928)
47,909
(993)
LIGNITIKI MELITIS S.A.
42,176
-
28,901
-
ILIAKA PARKA ENA S.A
49
-
-
-
ILIAKA PARKA DIO S.A
47
-
-
-
ILIAKO VELOS ENA S.A
138
-
-
-
ARKADIKOS ILIOS ENA S.A
11
-
-
-
ARKADIKOS ILIOS DIO S.A
3
-
-
-
AMYNTAIO PV PARK ENA S.A
2
-
-
-
AMYNTAIO PV PARK DIO S.A
2
-
-
-
AMYNTAIO PV PARK TRIA S.A
2
-
-
-
AMYNTAIO PV PARK TESSERA S.A
2
-
-
-
AMYNTAIO PV PARK PENTE S.A
2
-
-
-
AMYNTAIO PV PARK EKSI S.A
2
-
-
-
AMYNTAIO PV PARK EPTA S.A
2
-
-
-
AMYNTAIO PV PARK OKTO S.A
2
-
-
-
AMYNTAIO PV PARK ENNEA S.A
2
-
-
-
PPC Finance Plc.
-
(62)
-
(38)
PPC Elektrik
8
(3,097)
289
(6,333)
PPC Bulgaria JSCO
115
(19,262)
-
(34,056)
PPC Albania
-
-
-
-
EDS AD Skopje
12,751
(350)
76
(547)
Total
1,724,897
1,677,845
1,752,740
(1,833,818)
Guarantee in favour of the subsidiaries
As of December 31
st
, 2021, the Parent Company has provided a guarantee to its subsidiary PPC Renewables S.A. for a total
credit line of up to Euro 8 mil., through overdraft facilities, out of which PPC Renewables S.A. has used an amount of Euro
418 thousands relating to letters of guarantee.
As of December 31
st
, 2021, the Parent Company has provided a guarantee to its subsidiary Energy Delivery Solutions AD
(EDS) of Euro 14.1 mil., for loans concerning working capital needs. EDS Group drew an amount of Euro 10.7 mil.
On February 21, 2022, bank deposits of the Parent Company were pledged on behalf of the loan of the subsidiary EDS.
As at 31.12.2021 the Parent Company provided a corporate guarantee to EDS for the electricity supplier Energy Financing
Team AG - St Gallen amounting of up to € 3.5 million and for the electricity supplier Alpiq Energija amounting of up to € 1.5
million
In addition, on 31.12.2021 the Parent Company provided a corporate guarantee to PPC Bulgaria for the suppliers of Alpiq
Energy and CEZ of up to € 2.2 million and up to € 371 thousands,respectively.
41
Significant Transactions and balances with other companies in which the Greek State participates
The following table presents the transactions and balances with the companies Hellenic Petroleum ("ELPE") and Public Gas
Company ("DEPA") which are suppliers of liquid fuels and natural gas, respectively, and in which the Greek State participates.
In addition, the transactions and the rest with DAPEEP SA are presented. EXE SA, ENEXCLEAR A.E., IPTO SA and LARCO
GMME.
1.1.2021– 31.12.2021
Amounts in ‘000€
1.1.2020 – 31.12.2020
Amounts in ‘000€
Invoiced to
Invoiced from
Invoiced to
Invoiced from
ELPE
25,572
(98,978)
40,832
(80,213)
DEPA
61
(672,967)
357
(219,790)
DAPEEP S.A.
254,107
(359,949)
242,434
(550,891)
HEnEx S.A.
-
(3,384)
589,785
(1,230,316)
IPTO S.A
43,624
(128,795)
196,593
(399,050)
ENEX CLEAR S.A.
3,179,247
(4,610,117)
348,398
(435,712)
LARCO S.A.
26,951
-
33,833
(3,146)
December 31, 2021
Amounts in ‘000€
December 31, 2020
Amounts in ‘000€
Receivables
(Payables)
Receivables
(Payables)
ELPE
-
(18,064)
23,382
(21,499)
DEPA
-
(91,447)
-
(30,108)
DAPEEP S.A.
31,704
(68,889)
111,873
(430,562)
HEnEx S.A.
-
(8)
5
(8)
IPTO S.A.
4,754
-
154,375
(269,000)
ENEXCLEAR S.A.
34,111
(40,178)
8,552
(9,594)
LARCO S.A.
369,093
-
362,986
-
PPC’s total receivables from LARCO S.A., relating to electricity bills, are fully covered by a provision.
In addition to the above mentioned, PPC enters into commercial transactions with many state-owned entities, both profit and
non for profit, within its normal course of business (sale of electricity, services received, etc.). All transactions with state-owned
entities are performed at arm’s length terms and are not disclosed, with the exception of transactions that the Group and the
Parent Company enter into with the Hellenic Corporation of Assets and Participations S.A. (HCAP S.A.) and the companies
in which HCAP S.A. participates.
The balances and transactions for December, 31 2021 and December, 31 2020 with HCAP S.A. and the companies, in which
HCAP S.A. participates, are presented below:
GROUP
PARENT COMPANY
December 31, 2021
December 31, 2021
Receivables
(Payables)
Receivables
(Payables)
ΗCAP S.A
-
(1)
-
(1)
ATHENS INTERNATIONAL AIRPORT S.A.
632
(12)
591
(12)
ELTA S.A.
1,486
(6,888)
-
(6,809)
ELTA COURIER S.A.
1
(98)
-
(72)
EYDAP S.A.
5,756
(30)
5,756
(19)
ETVA INDUSTRIAL PARKS S.A.
232
(21)
232
(16)
THESSALONIKI INTERNATIONAL FAIR S.A.
138
-
138
-
ODIKES SYNGKOINONIES S.A.
11,616
-
11,616
-
PUBLIC PROPERTIES COMPANY S.A.
5,207
-
5,207
-
URBAN RAIL TRANSPORT S.A.
34,963
-
34,963
-
C.M.F.O. S.A.
190
-
190
-
42
Ο.Α.S.Α. S.A.
6
-
6
-
Ε.Υ.Α.TH. S.A
3,988
(1)
3,987
(1)
GEA OSE S.A
-
(1)
-
(1)
MANAGEMENT INDUSTR.PARK KASTORIA
-
(1)
-
(1)
AEDIK
1
-
1
-
MARINA ZEAS
1
-
1
-
HELLENIC SALTWORKS S.A.
-
(11)
-
(11)
TOTAL
64,217
(7,064)
62,688
(6,943)
GROUP
PARENT COMPANY
December 31, 2020
Amounts in 000’€
December 31, 2020
Amounts in 000’€
Receivables
(Payables)
Receivables
(Payables)
ATHENS INTERNATIONAL
AIRPORT S.A.
976
(22)
951
(22)
ELTA S.A.
5,004
(3,829)
-
(3,533)
ELTA COURIER S.A.
1
(91)
-
(52)
EYDAP S.A.
3,337
(42)
3,337
(2)
ETVA INDUSTRIAL PARKS S.A.
198
(24)
198
(19)
THESSALONIKI INTERNATIONAL
FAIR S.A.
7
-
7
-
ODIKES SYNGKOINONIES S.A.
6,546
(2)
6,546
-
PUBLIC PROPERTIES COMPANY
S.A.
4,758
-
4,758
-
URBAN RAIL TRANSPORT S.A.
42,025
-
42,025
-
C.M.F.O. S.A.
10
-
10
-
Ο.Α.S.Α. S.A.
1
-
1
-
Ε.Υ.Α.TH. S.A.
2,193
-
2,192
-
MANAGEMENT INDUSTR.PARK
KASTORIA
1
-
1
-
AEDIK
2
-
2
-
EYDAP NISON
5
-
5
-
MARINA ZEAS
1
-
1
-
HELLENIC SALTWORKS S.A.
2
-
2
-
TOTAL
65,067
(4,010)
60,036
(3,628)
The transactions made by the Group and the Parent company with HCAP S.A.and the companies in which participates for the
years ended December 31
st
2021 and December 31
st
2020 are as follows:
GROUP
PARENT COMPANY
1.1.2020 – 31.12.2021
Amounts in ‘000€
1.1.2020 – 31.12.2021
Amounts in ‘000€
Invoiced to
Invoiced
from
Invoiced to
Invoiced
from
HCAP S.A.
20
-
20
-
ATHENS INTERNATIONAL AIRPORT S.A.
4,494
(102)
4,258
(102)
ELTA S.A.
17,256
(17,207)
4
(12,588)
ELTA COURIER S.A.
7
(236)
7
(181)
EYDAP S.A.
20,999
(163)
20,886
(127)
ETVA INDUSTRIAL PARKS S.A.
1,186
(44)
1,185
(38)
THESSALONIKI INTERNATIONAL FAIR S.A.
902
(71)
902
(70)
ODIKES SYNGKOINONIES S.A.
3,536
(8)
3,536
-
PUBLIC PROPERTIES COMPANY S.A.
1,783
(28)
1,704
(2)
URBAN RAIL TRANSPORT S.A.
22,328
(1)
22,328
-
C.M.F.O. S.A.
1,272
-
1,272
-
43
Ο.Α.S.Α. S.A.
49
-
49
-
Ε.Υ.Α.TH. S.A.
14,220
(7)
14,214
(1)
HELLENIC SALTWORKS S.A.
263
-
263
-
MANAGEMENT OF INDUSTRIAL PARK OF
KASTORIA
4
-
4
-
GAIA- OSE S.A.
16
-
16
-
A.E.DI.K
17
-
17
-
TOTAL
88,352
(17,867)
70,665
(13,109)
GROUP
PARENT COMPANY
1.1.2020 – 31.12.2020
Amounts in ‘000€
1.1.2020 – 31.12.2020
Amounts in ‘000€
Invoiced to
Invoiced
from
Invoiced to
Invoiced
from
HCAP S.A.
16
-
16
-
ATHENS INTERNATIONAL AIRPORT S.A.
4,311
(113)
4,095
(113)
ELTA S.A.
18,068
(20,114
23
(15,030)
ELTA COURIER S.A.
7
(181)
6
(90)
EYDAP S.A.
17,272
(167)
17,157
(126)
ETVA INDUSTRIAL PARKS S.A.
941
(34)
940
(31)
THESSALONIKI INTERNATIONAL FAIR S.A.
582
(22)
582
(20)
ODIKES SYNGKOINONIES S.A.
2,861
(14)
2,861
-
PUBLIC PROPERTIES COMPANY S.A.
1,687
(1)
1,687
(1)
URBAN RAIL TRANSPORT S.A.
17,501
(1)
17,501
-
C.M.F.O. S.A.
1,038
-
1,038
-
Ο.Α.S.Α. S.A.
36
-
36
-
CENTRAL MARKET OF THESSALONIKI S.A.
91
-
91
-
Ε.Υ.Α.TH. S.A.
11,681
(4)
11,666
-
HELLENIC SALTWORKS S.A.
217
-
217
-
MANAGEMENT OF INDUSTRIAL PARK OF
KASTORIA
6
-
6
-
GAIA-OSE S.A.
6
-
6
-
A.E.DI.K
17
-
17
-
SOCIAL FEEDING PROGRAM
-
(3)
-
(3)
TOTAL
76,338
(20,654)
57,945
(15,414)
44
Management remuneration
Management Members remuneration (Board of Directors and General Managers) for the year ended December 31
st
, 2021
and December 31
st
, 2020 is as follows:
GROUP
Amounts in ‘000
COMPANY
Amounts in ‘000
2021
2020
2021
2020
Remuneration of the Board of Directors’
members
- Remuneration of executive members
1,254
821
677
438
- Remuneration of non-executive
members
326
294
-
-
- Compensation / Extraordinary fees and
other benefits
375
280
211
155
- Employer’s Social Contributions
238
249
83
80
2,193
1,644
971
673
Remuneration of the Deputy Chief
Executive Officers and General Managers
- Regular remuneration
2,175
1,375
1,468
1,049
- Employer’s Social Contributions
346
296
254
196
-Compensation / Extraordinary fees
1,001
141
573
-
3,522
1,812
2,295
1,245
Total
5,715
3,456
3,266
1,918
Remuneration to members of the Board of Directors does not include standard salaries and employer’s social contribution,
relating to the representatives of employees that participate in the Parent Company’s Board of Directors. It also does not
include the benefit of the electricity supply based on the PPC personnel tariff to the executive members of the Board of
Directors, the Deputy Chief Executive Officers and the General Managers.
The remuneration of the members of the Board of Directors and the General Managers of December 31, 2021 includes the
additional incentive for 2020 and 2021 amounting to €1 and € 2.7 million respectively based on the new remuneration policy
approved by the Extraordinary General Meeting of Shareholders on June 4, 2021 It was also approved to provide an additional
incentive in the form of equity settled stock awards. As to date the key Efficiency Ratios for this benefit have not been defined,
it is not possible, at present, to determine the fair value of the Free Sharing Rights. The accounting principle adopted by the
Group and the Parent Company is presented in note 4.2.
45
Non-financial Report
Introduction
The present Non-Financial Information Report (Statement) contains information on the management and performance of
PPC Group (hereinafter "Group" or "We") in the following thematic sections, as these are defined in the provisions of articles
151 and 154 of L. 4548/2018.
In particular, the non-financial statement of the Group includes information, to the extent required for understanding the
evolution, performance, position and impact of the Group's activities, in relation to :
• Environmental issues,
• Social and labour issues
• Respect for human rights,
• The combat against corruption and issues relating to bribery
This statement includes also the following:
1.A brief description of the company's business model
2.The main risks related to these issues and associated with the Group's activities that are likely to have a negative impact
on these fields.
3.A description of the policies applied by the Company in relation to these issues, including due diligence, the results of the
said policies, as well as the non-financial key performance indicators. Due to the current circumstances, this section also
includes the thematic unit of the Impact of the COVID-19 pandemic, as well as issues related to Climate Change.
In addition, this financial statement includes a section with information on Article 8 of Regulation (EU) 2020/852 of the
European Parliament and of the Council of June 18, 2020 on the establishment of a framework to facilitate sustainable
investment and on the Commission Delegated Regulation (EU) 2021/2178 of July 6, 2021 supplementing Regulation (EU)
2020/852 (4.)
The content of this Non-Financial Statement has been drawn up taking into account the GRI Standards and the Athens Stock
Exchange ESG Reporting Guide 2019 (https://www.athexgroup.gr/el/web/guest/esg-reporting-guide).
It is noted that this Statement concerns the financial year ended on December 31, 2021 and for the purposes of completeness,
comparative data for the financial year ended on December 31, 2020 are provided as well.
1. Business Model
PPC was established in 1950 as a public sector enterprise, tasked with the responsibility of providing electricity to the entirety of the
country. Following its transition to a Societe Anonyme and the listing of its shares in the Stock Exchange, its operation has been
governed by the law on ‘societes anonyms’, however, the influence of the State on PPC remained significant, especially regarding
its public service obligations which have been assigned to PPC. As a result, until recently, PPC was subject to laws and regulations
applicable in the Greek Wider Public Sector.
Following the increase of the Company's share capital, which was completed at the end of 2021, and the reduction of the
indirect State participation to 34.1%, PPC ceased to be controlled by the State and be considered as a Public Undertaking
within the meaning of L. 3429/2005. Nevertheless, the Company, due to its business activity in the strategically important utility
sector, continues to be a company of intense public interest. Due to the above, the operation of PPC and its choices continue
to be influenced by a number of stakeholders who have legitimate interests related to its operation.
46
PPC is being transformed from a vertically integrated company of Business Units, as it was in the early 2000s (Mines,
Generation, Transmission, Distribution, Supply), into a Group of Companies, with PPC at its core, which will operate in the
Supply and Power Generation from conventional forms of energy (hydro energy and natural gas) and the subsidiaries HEDNO
(Distribution) and PPC Renewables as the main agent of transition to power generation through Renewable Sources of Energy.
More in particular, the company is at the center of the energy transition, which is encapsulated in the threefold:
Implementation of the “Green deal” in generation, digitalization and operational efficiency and expansion in new
value-added activities and products with a customer-centric approach. The development of renewable energy sources,
the implementation of energy saving measures and the significant progress of the electrification and the digitalization of the
economy constitute the main pillars for the promotion of the energy transition and the reinforcement of the socio-economic
development.
PPC considers that it will safeguard thereby its sustainable development, in order to achieve its goal of maximizing its value,
while always taking into consideration its social role in the National Economy and its environmental impact.
At the same time, the Company shall place great emphasis on its customers, developing and operating in new markets of
energy products, with the medium/short-term goal of providing a wide range of products that will meet all customers’ needs
and requirements.
More specifically, PPC’s new business plan outlines the Company’s medium-term goals and is based on three pillars:
1. Implementation of the “Green deal” in power generation, by decommissioning its lignite units and the respective
mines and emphasizing in the uptake of RES as the new primary power generation technology. The detailed lignite
phase out plan includes the decommissioning of lignite units with installed capacity of approximately 3.4
GW during the period 2019-2023. The lignite phase out plan is being carried out with full respect to PPC’s
employees, local communities and the environment but also ensuring the country’s energy adequacy. In this fair
transition framework, the Company has already proceeded to the design and implementation of a series of new
development projects, but also to the maintenance of the existing ones with the appropriate modifications, as for
example was the successful implementation of the district heating project, aiming at constantly supporting local
communities.
The plan for the new PPC includes significant investments in RES through the subsidiary PPC Renewables as
well as investments in storage units aiming at increasing installed capacity to 4,8 GW and 0,7 GW
respectively until 2026.
2. Digitalization and operational efficiency for the achievement of cost-reduction and revenue-increase synergies,
by applying new technologies across sectors, such as:
• Digital development of PPC through models of process digitalization and digital transformation
• Digitalization of the activities and infrastructures of the electricity Distribution network by investing in the networks’
upgrade by using tools such as smart meters, circuit breakers and GIS systems etc.
• Use of technology to ensure information and network security of the company as a Critical National energy
infrastructure, based on best practices and safeguarding in a responsible way the natural persons involved, such as
customers, and the society as a whole.
• Enhancement of PPC human resources digital culture, focusing on its particular characteristics, the conditions under
which it operates, the flexible and modern functionality and the required digital cooperation.
3. Expansion in new value-added activities and products with a customer-centric approach, both in the retail
electricity market and in new business sectors. More specifically, priority is given by PPC to the development in the
most efficient way of the necessary infrastructures for the electrefication of transport and heating. A rapid increase in
the number of electric vehicles is expected at international level, due to the fact that their cost is expected to approach
the cost of conventional vehicles over the next few years. PPC will effectively contribute to the increase of electric
vehicles in our country, investing in the necessary infrastructure and more in particular in the installation of more than
1,000 charging stations over the next few years, while the medium-term goal for PPC is to install more than 10,000
charging stations all over Greece.
Furthermore, the Company’ strategy is focused in the production of “green hydrogen” through synergies that are expected to
enable the country’s energy transition to a zero-carbon environment.
Alongside the above, in 2021 PPC focused on designing and launching Value Added Services, as well as on designing
integrated consulting services on energy upgrading and energy saving in end-use. Finally, in 2021 PPC made a systematic
effort to design an integrated service aimed at informing and promoting heat pumps as the key technology for the electrification
of heating. This service will be launched at the beginning of the year 2022.
Additionally, the development at national level of a fiber optic network platform by the Company is carefully considered in order
for PPC to join the main high-speed broadband service providers thus creating a new source of revenue for the Company.
47
The Company’s organizational structure, at the level of Departments, took place within 2020 in order to meet the
aforementioned priorities, while within 2021 the establishment of all necessary Departments, as well as the internal structure
thereof was finalized. Additionally, a full set of rules and policies was adopted by the Company aiming at creating a corporate
governance and ethical behavior framework that in combination with the strong fundamentals of the Company are expected
to ensure the maximization of its value.
In this new era for PPC, its strategy could only be grounded in the principles of the “Creating Shared Value” approach, in other
words on the basis of the Sustainable Development which aims at creating shared value among companies, societies, people
and environment. To this end, PPC approaches Sustainable Development in the light of its business model and thereby of its
new strategic orientation.
In this context, the company in compliance with international requirements (Bloomberg 2015, creation of the TCFD by the
Financial Stability Board) initiated the transition process from the current model of corporate governance GRC (Governance,
Enterprise Risk, Compliance) to the new model ESG (Environmental Social Governance). Specifically, based on the TFCD
(Taskforce for Climate-related Financial Disclosure) guidelines, the company assesses the risks to be faced in the context of
its activities due to climate change and examines ways to deal with them.
48
2. Identification of Major Risks Related to Non-Financial Issues
At PPC, in addition to financial risks, we identify non-financial risks related to the environment, the human capital and society
at large which may significantly affect the Company's reputation and its relationships with stakeholders.
In particular, the most significant identified risks may be summarised as follows:
• Risks related to climate change
• Risks related to extraordinary events such as natural disasters, adverse weather conditions, fires, war, terrorist
actions and strikes
• Risks related to Information Systems Security
• Risks related to non-compliance with the EU General Data Protection Regulation (GDPR)
• Risks related to the complex and uncertain regulatory framework in Greece and the EU.
• Risks related laws and arrangements on health, safety and the environment
• Risks related to the recruiting and retaining of specialized personnel
• Risks related to the impact of the COVID 19 pandemic
A detailed presentation of all financial and non-financial risks of both the Company and PPC Group is provided in the Annual
Report of the Board of Directors included as an integral part of the Annual Report for the financial year 2021.
3. Due Diligence and other Policies and Results thereof/Non-financial Performance Indicators
The Company has established Codes, Policies and Procedures to address corporate risks and manage compliance and
sustainable development issues, which are subject to periodic review in order to reflect the relevant best practices.
1. Environmental Issues
Issues related to Climate Change
Due Diligence and Other Policies
PPC, recognizing the impact of climate change in all areas of economic and social activity as well as its own responsibility due
to greenhouse gas emissions by its activities, has been on par with the ΕU’s and Greece’s ambitious medium- and long-term
goals for climate neutrality in 2050.
According to the most recent national inventory of greenhouse gas emissions submitted by Greece to the secretariat of the
United Nations Framework Convention on Climate Change, covering the period 1990-2019, which was submitted in 2021,
greenhouse gas emissions from the use of fossil fuels in both PPC’s private thermal power plants for electricity and heat
generation in 2019 was 27.3 million tons of carbon dioxide equivalent (CO
2
eq) and accounted for about 31.9% of total national
emissions, which was 85.6 million tons of CO
2
eq.
PPC as one of the main producers of greenhouse gas emissions of the country is in the process of energy transformation of
its energy production model since its impact on addressing climate change is essential for the country, the targets it has set
and the sustainability of the Company.
PPC designs and implements control and prevention programs based on the systematic monitoring of the interaction of its
activities with the environment. In this direction, the new PPC Business Plan promotes, inter alia, the "Green Deal" immediate
implementation in energy generation with:
✓ Immediate withdrawal of the operating lignite-fired power plants and the closure of the corresponding mines,
✓ the emergence of renewable energy sources as the new dominant technology of electricity production, and
✓ the undertaking of a leading role for the e-mobility development in Greece.
The protection of biodiversity in areas where it develops its activities is incorporated in the Company's Business Plan thus
contributing to EU efforts to halt biodiversity loss and restore ecosystems, as set out in the EU 2030 Biodiversity Strategy
49
Actions to tackle climate change
PPC's environmental policy includes actions to reduce carbon dioxide emissions (CO
2
) during the electricity generation
process in order to tackle climate change, which is one of the United Nations 2030 Sustainable Development Goals. In order
to reduce CO
2
emissions by Thermal Power Plants, and tackle climate change, PPC implemented actions and programs that
include:
● Investments involving the replacement of old thermal power plants, with new plants of modern technology and high
efficiency, as well as the improvement of the environmental behavior of existing plants.
● Further development of hydroelectric projects and renewable energy projects.
● Further inclusion of natural gas in the energy mix.
● Promotion of energy saving actions and rational use of electricity.
● Consideration of investment proposals for the development of new forms of energy production and storage.
● Participation in research programs for the application of efficient lignite technologies.
● Mine restoration projects, experimental crops on restored land, etc.
These actions result, over time, in the reduction of the average CO
2
emission factor of the PPC energy generation system.
In particular, in 2020 and in the context of the environmental upgrade, the efforts for modernization of the Company’s
production capacity were continued. Specifically:
● The operation of lignite Units IΙΙ and IV of Kardia TPP with total capacity 600 MW was permanently shut down
● The construction of the new state-of-the-art lignite Unit V of the Ptolemaida TPP was continued, the operation of which will
allow the decommissioning of old units' higher capacity and will ensure the district heating of Ptolemaida town.
● The investments for the environmental upgrade of the Units of Agios Demetrios TPP were continued, aiming at their being
adapted to the Best Available Techniques and at reducing nitrogen oxide, sulfur dioxide and dust emissions.
● The mining operations (works of lignite extraction) at the Lakkia Mine permanently ceased.
● Preparation works for the post lignite usage were continued at the Amyntaio Mine.
● Soil rehabilitation program, such as tree plantings, agricultural crops, etc., at the lignite mining areas were continued.
● Works for the construction and operation of new hydroelectric power plants were continued.
● Furthermore, in 2021 the Company covered the energy consumption of all of its facilities all over the country with Green
Pass Guarantees of Origin from its hydroelectric power plants. The Green Pass Guarantees of Origin which were available
to its customers in 2021 amounted to 1.9 TWh for professional/business customers and 0,14 ΤWh for residential
customers.
● The partnership with the European Bank for Reconstruction and Development continued and was completed with regard
to the “Development of an Information Disclosure Plan according to the guidelines outlined by the Task Force on Climate-
related Financial Disclosures (TCFD)”.
Furthermore, building energy-saving actions were implemented, such as:
• Implementation of the Energy Management System ISO 5001:2018 by which the Support Operations Division (SO/Di) has
been certified through the Real Estate & Facilities Management Department (REFMD) for energy saving in selected PPC
S.A. buildings on: 73-75 Stournari st.-Athens, Pratinou st. and 9 Amaseias st -Athens, 107, 3
rd
Septemvriou st.– Athens,
4 Alopekis st. – Athens, Agiou Konstantinou st. & Geraniou st. – Athens.
• Fundamental energy upgrade of PPC S.A. building on 42 Kraterou street in Zografou Athens
• Energy Management System implementation in the facilities of the Lignite Center of Western Macedonia, in accordance
with ISO 50001: 2018 (in force until August 2021)
50
Atmospheric Quality Measurement Stations
In order to monitor the atmospheric emissions, PPC operates a network of 26 Atmospheric Quality Measurement Stations
(AQMSs), which also operate for meteorological parameters' measurement, in the wider areas of power plants and mines,
which is further developed when the need arises. Within this framework, the competent bodies are systematically informed
about the atmospheric emissions in the wider area of PPC’s activity, by submitting annual and semi-annual Atmospheric
Quality Reports, pursuant to the Environmental Terms Approval Decisions, while immediate (within 24 hours) is the information
in cases of exceeding air emissions, anti-pollution equipment failure, failure of the analyzer measuring environmental
parameters, etc.
PPC atmospheric quality measurement stations in the wider areas of Power Plants and Mines
Location
Number of power plants
Measured air pollutants
North System
1
7
SO
2
, NO
X
, PM
10
, PM
2,5
Lavrio
1
SO
2
, NO
X
, PM
10
Aliveri
4
1
SO
2
, NO
X
, PM
10
Komotini
1
NO
X
Chania
3
NO
X
Linoperamata
3
SO
2
, NO
X
, PM
10
Atherinolakkos
3
SO
2
, NO
X
, PM
10
, PM
2,5
Rhodes
2
3
SO
2
, NO
X
, PM
10
, PM
2,5
Kos
1
SO
2
, NO
X
, PM
10
, PM
2,5
Samos
1
SO
2
, NO
X
, PM
10
Chios
1
SO
2
, NO
X
, PM
10
, PM
2,5
Lesvos
1
SO
2
, NO
X
, PM
10
, PM
2,5
Total
3
26
1. In the Northern System, Lignitiki Melitis Single Member S.A runs two (2) additional Atmospheric Quality
Measurement Stations (AQMSs), which also operate for meteorological parameters' measurement.
2. The Kattavia Measurement Station (part of the new Southern Rhodes Thermal Power Plant) started operating
on 12.09.2018.
3. It is noted, that Lignitiki Megalopolis Single Member S.A. runs three(3) additional Atmospheric Quality
Measurement Stations (AQMSs), which also operate for meteorological parameters' measurement.
Atmospheric quality measurement stations of the company Lignitiki Megalopolis Single Member S.A, in the wider
areas of Power Plants and Mines
Location
AQMSs Location
Total number of
stations
Measured air
pollutants
Megalopolis
Isari
Elliniko
Leontari
3
SO
2
, NO
X
, PM
10
Atmospheric quality measurement stations of the company Lignitiki Melitis Single Member S.A in the wider areas of
Power Plants and Mines
Location
AQMSs Location
Total number of
stations
Measured air pollutants
North System
Florina
Meliti
2
SO
2
, NO
X
, PM
10
, PM
2,5
In 2021, as in previous years, the Peak Environmental Issues Management Team was operating, consisting of the Lignite
Generation Business Unit and the Thermal & Hydro Generation Business Unit Executives. This team is entrusted with the
continuous monitoring of the atmospheric quality measurement results and the continuous elaboration of a specific strategy
for dealing with and minimizing the permissible limit overruns.
Voluntary initiatives
Aiming at innovative methods in order to reduce the environmental footprint of its production activities for electricity generation
and within the framework of continuous effort for research and development, PPC participates in several voluntary initiatives
and takes part in national and international consortia for the implementation of research projects with relevant individual
actions.
51
The following are indicative:
• The partnership with the European Bank for Reconstruction and Development continued for the “Development of an
Information Disclosure Plan according to the guidelines outlined by the Task Force on Climate-related Financial
Disclosures (TCFD)”.
• Participation in Working Groups of the European Federation of National Electricity Companies (EURELECTRIC) on
Climate Change, Decarbonization, Environmental Protection, Energy Use Electrification, increased Energy Efficiency, E-
Mobility, RES and Energy Storage.
• Participation in Working Groups of the European Association for Coal and Lignite (EURACOAL)
Research projects of environmental interest in which PPC S.A participates
PPC S.A. in the context of its sustainable development policy participates in several voluntary initiatives and research projects
on Environmental protection. More specifically the ongoing research projects in which PPC participates are presented below:
• Scale-up of electrochemically promoted catalytic hydrogenation of CO2 for fuel production - CO
2
TO FUELS
• Contribution of the Tree Planted Land of West Macedonia Lignite Center to the protection of the environment and the
mitigation of Climate Change -Coformit
• Bioconversion of lignite power plant emissions into fuels and fine chemicals – BIOMEK
• Bioconversion of CO
2
into High Value Bioproducts through Sustainable Microalgae Cultivation Processes CO
2
-
Bioproducts
• Design and installation of a hybrid industrial device to collect air pollutants from lignite combustion by recovering and
activating solid byproducts desulphurization-REDESOX
• Intelligent water treatment technologies to achieve water savings combined with energy generation and recovery of
materials in energy intensive industries – ΙΝΤΕLWATT
• Sustainable use of mining waste dumps– SUMAD
• Coal-to-liquids supply chain integration in view of operational, economic and environmental risk assessments under
unfavourable geological settings - ODYSSEUS
• An interdisciplinary feasibility study on hybrid pumped-hydro power storage of excess energy (ATLANTIS)
• Green Deployment of E-fuels and Liquids based on CO2 for closed and end-of-life coal-related
assets (Green deal CO
2
)
• Demonstration of a mobile unit for hybrid energy storage based on CO2 capture and renewable energy sources ( LIFE
CO2 to CH4)
The research programmes in which the Company participates, the integration-funding programmes and the
coordinators/partners are presented in detail on the company’s website https://www.dei.gr/el/dei-omilos/perivallon/erevnitika-
erga-perivallontikou-endiaferontos/
Environmental Management Systems
PPC have certified the Environmental Management Systems (ISO 14001:2015) of the Western Macedonia Lignite Center and
the following power plants, which generate around 93% of PPC’s total electricity output.
The following table presents the power plants with certified Environmental Management System for 2021
Lignite power plants
Natural gas power
plants
Oil power plants
Hydroelectric
power plants’
complexes
Agios Dimitrios
Keratea-Lavrio
Komotini
Aliveri
Megalopoli V
Atherinolakkos
Chania
Linoperamata
Skyros
Soroni - Rhodes
Karpathos
Samos
Chios
Kos
Limnos
Aliakmon
Arachthos
Acheloos
Nestos
Ladonas (HPP)
It is noted that the power plants run by PPC subsidiaries, Lignitiki Megalopolis Single Member S.A. and Lignitiki Melitis Single
Member S.A , also have certified Environmental Management Systems (EMS), according to ISO 14001: 2015.
52
For the financial year 2021:
✓ the ISO 14001:2015 Environmental Management Systems of the West Macedonia Lignite Center, of all thermal power
plants of the Interconnected System, of all thermal power plants of Crete, of the thermal power plant in Rhodes (Soroni
TPP), of the Local Power Plant of Skyros and of all hydroelectric power plants of the Interconnected System, except for
Plastiras HPP, have successfully passed the annual surveillance audit
✓ the ISO 50001:2018 Energy Management System (EMS) of the West Macedonia Lignite Center has successfully passed
the annual surveillance audit.
Actions initiated for 2022:
✓ The development and certification of the Environmental Management Systems of other Autonomous Power Plants in the Non-
Interconnected System (such as APP Milos, APP Thira, APP Lesvos, APP Paros and LPP Ikaria).
✓ The development and certification to ISO 14001:2015 of the Environmental Management Systems of the Thermal Power Plant
of South Rhodes (TPP Kattavia) and of HPP N. Plastiras.
✓ In the context of PPC Management’s commitment to disseminating knowledge, creating transparency and encouraging the
participation of staff in prevention and environmental protection actions and aiming to train and certify the Company's
employees who are involved or are going to be involved in any way whatsoever in ISO 14001:2015 Environmental
Management Systems (EMS), the company will organise:
- Seminar for Inspectors / Heads of Inspectors of ISO 14001:2015 Environmental Management Systems; and
- Seminar for Internal Inspectors of ISO 14001:2015 Environmental Management System.
✓ The procedure for the development and implementation of Energy Management Systems (EMS) according to ISO 50001:2018
at PPC S.A.'s Power Plants.
Non-Financial Performance Indicators
2021
2020
Total Number of Plants with certified
Environmental Management Systems
(Liginitiki Megalopolis and Lignitiki Melitis are
included)
23
23
Lignite centers (West Macedonia)
1
1
Operating Mines*
2+3
5
Thermal Power Plants (TPPs) **
13
14
Hydroelectric Power Plants
16
16
Autonomous Power Plants
32
32
Notes
*The fixed equipment at Lakkia and Kardia Mines was in operation until April 2021 and May 2021 respectively, while until the
end of the year rehabilitation works were carried out. At the Amyntaio Mine, rehabilitation works were carried out throughout
the year 2021.
** Including the companies LIGNITIKI MELITIS SINGLE MEMBER S.A. AND LIGNITIKI MEGALOPOLIS SINGLE MEMBER
S.A.
Greenhouse gas emissions for electricity generation [CO2]
(1)
(in million tons)
2021
2020
PPC S.A.
13,235
12,882
GROUP
(2)
15,797
15,447
Notes
(1) It concerns emissions from facilities integrated in the European Emissions Trading Scheme.
(2) The Group includes the companies PPC S.A., Lignitiki Melitis Single Member S.A. and Lignitiki Megalopolis Single Member
S.A.
53
It should be noted that the total emissions of Scope 1, Scope 2 and the major part of Scope 3 for PPC S.A, LINGNITIKI
MEGALOPOLIS SINGLE MEMBER S.A. and LINGNITIKI MELITIS SINGLE MEMBER S.A., as well as Scope 1 and Scope
2 emissions for its subsidiary HEDNO S.A. for the year 2020 are presented in the Company's Sustainable Development
Report for the financial year 2020. Respectively, the said data for the financial year 2021 is expected to be presented in
detail in the 2021Sustainable Development Report.
Greenhouse Gas Emissions [CO2] -KPI Syndicate Loan Bond
(in Μt)
2021
2020
PPC S.A.
15.85
15.53
The table below sets outs the financial burden for compliance with the requirements of the European Emissions Trading
Scheme (surrender of emission allowances equal to verified emissions of CO2).
Greenhouse Gas Emission Rights [CO2]
(in million euros)
2021
2020
PPC S.A.
574
328
GROUP
699
393
2. Labour Issues
Due Diligence and other Policies
PPC recognizes that its human capital is the most valuable asset to the Company, to the extent that its employees are responsible
for delivering results and developing the Company’s core competencies and competitive advantages.
PPC implements responsible human resources management practices, ensuring a modern workplace of equal opportunities. It is
committed to safeguarding the health and safety of its employees by implementing appropriate Occupational Health and Safety
Management Systems and carrying out relevant training programs.
PPC’s Staff Regulations govern, among others, employees’ rights and responsibilities, employment contract terms, working
relationships and disciplinary procedures.
The Company's recruitment policy is reshaped in order to be in line with Law 4643/2019:
The recruitment of permanent personnel is carried out through a public notice of vacancy including, inter alia, the number per
category and specialty of the personnel to be recruited, the required qualifications, the selection criteria and the credit point
awarding system in compliance with the principles of transparency, meritocracy and equality, according to the Company’s needs
and internal procedures.
The recruitment of temporary personnel is carried out in order to meet temporary or seasonal needs upon decision of PPC’s Chief
Executive Officer. The said personnel signs a fixed-term employment contract which cannot exceed eight (8) months within a total
time period of twelve (12) months.
Moreover, provision is made for the recruitment of relatives of deceased employees (work-related fatalities), as well as coverage
of vacancies by members of large families, people with disabilities and their relatives.
During the three-year period 2019-2021, 3 relatives of deceased employees in work-related accidents were hired by the Company.
As of 31/12/2021, the number of employees with disabilities, employees with large families and relatives of persons with disabilities
was 162, 202 and 77 respectively.
In line with L. 4643/2019, the Company established an executives’ recruitment procedure (at the level of Assistant Directors or
Heads of Units and above).
PPC has a Training Management System for identifying and evaluating its educational needs, designing training courses,
selecting trainees and instructors as well as organizing, implementing and evaluating training projects (training cycle). The
Company's Executive Training Policy, which sets out the framework for the training of the executives at all hierarchical levels,
as well as of the Specialized Executives was approved by the Decision No. 83/14-07-2021.
The members of the Board of Directors, its Committees as well as the Company’s Executives are remunerated based on the
relevant Company’s Remuneration Policy (which is posted on the Company's website).
7
54
The Company implements a new evaluation system which includes bar scales, weighting criteria, links between assessed
behaviors and the Company’s strategy and discloses to employees their assessment outcomes.
In addition, the Company provides additional benefits to employees, such as a group health/life insurance, a subsidy for nursery
care costs and a subsidy for educational purposes (e.g. pursuit of postgraduate qualification).
Non-Financial Performance Indicators
[GRI 102-8 – Total number of Employees]
[GRI 102-41: Collective labor agreements]
[ESG C-S6: Collective labor agreements]
[ESG C-S1: Female employees]
[ESG A-S3: Gender pay gap]
PPC S.A.
GROUP
2021
2020
2021
2020
Total number of employees 31.12
6,634
7,113
12,909
13,799
Female employees
1,916
1,984
3,419
3,572
Female employees (%)
28.9%
27.9%
26.4%
25.8%
Number of employees with a collective labor
agreement (%)
98.0%
99.0%
98.6%
99.2%
Note: The Group includes the companies PPC S.A., HEDNO S.A., PPC RENEWABLES S.A., LIGNITIKI MELITIS SINGLE
MEMBER S.A. and LIGNITIKI MEGALOPOLIS SINGLE MEMBER S.A.
*Permanent personnel including executives with a 3-year fixed-term contract.
Indicator/Company
PPC S.A.
GROUP
A-S3 Gender pay gap
2021
2020
2021
2020
Gender pay gap (%)
5.64%
4.66%
8.30%
7.60%
It is pointed out that the pay gap between male and female employees is in no way due to discriminatory gender-based pay
management. By way of illustration, the total regular remuneration may also include allowances related to the nature and
conditions of work and the job position, e.g. allowances linked to positions in mines and power plants which are mainly chosen
by male employees.
Note: The Group includes the companies PPC S.A., HEDNO S.A., PPC RENEWABLES S.A., LIGNITIKI MELITIS SINGLE
MEMBER S.A. and LIGNITIKI MEGALOPOLIS SINGLE MEMBER S.A.
55
Occupational Health and Safety
Due Diligence and other Policies
PPC S.A. considers the health and safety of its employees of utmost importance. PPC's Occupational Health and Safety Policy
(posted on the Company's website https://www.dei.gr/en/ppc-group/human-resources/occupational-health-and-
safety/occupational-health-and-safety-policy/) aims at outlining all necessary measures and providing accessibility to all the means
and resources necessary to safeguard the physical and mental health of its employees. The Occupational Health and Safety
Department, which is responsible for addressing these issues, has been awarded the ELOT EN ISO 9001 certificate for its Quality
Management System. In addition, it holds a license as an External Protection and Prevention Service Provider, with the ability to
provide protection and prevention services to customers inside and outside the PPC Group.
The Company employs a significant number of occupational physicians, safety technicians, nursing staff and auditing physicians.
Its priority is to cultivate a mindset focused on safety at work. Ιt is pointed out that staff emergency preparedness training, safety
training programs, measurement of harmful factors in the workplace and occupational risk assessment studies are conducted at
the Company’s workplaces.
The Company provides psychological and social worker services to its employees and shows great awareness of the timely
information and taking of measures in the event of epidemic viruses
Non-Financial Performance Indicators
Indicator/Company
PPC S.A.
GROUP
2021
2020
2021
2020
*Total number of employees’ accidents
38
32
71
62
Total number of f employees’ fatal accidents
0
0
1
0
Total number of contractor’s employees’ fatal
accidents
2
1
2
1
* The methodology taken into account is the “European statistics on accidents at work (ESAW) - Methodology - 2001 edition
«followed by the European Agency for Safety and Health in the ESAW work EU - OSIA and EURELECTRIC. The number of
accidents includes all accidents that have occurred during the work of regular and seasonal / temporary staff and have caused
absence from work for more than three (3) calendar days. Accidents on the way to and from work as well as pathological
episodes, which are (statistically) examined separately, are not included.
Note 1: The Group includes the companies PPC S.A., HEDNO S.A., PPC RENEWABLES S.A., LIGNITIKI MELITIS SINGLE
MEMBER S.A. and LIGNITIKI MEGALOPOLIS SINGLE MEMBER S.A.
Note 2: The above figures may be subject to revision at the final closing of the financial year 2021.
Impact of the COVID 19 pandemic on Non-Financial Issues
PPC Group, with absolute respect for the safety and protection of its employees, customers and partners and acting
responsibly, upon appearance of the COVID-19 disease proceeded immediately to taking measures to limit the spread of the
virus, ensure business continuity, as well as maintain its smooth operation and the customer service standards.
56
These actions are summarised as follows:
✓ Integration of legislation and guidelines of the competent bodies of the State, which are constantly revised based on the
developments.
✓ Updating of the Business Plan established to deal with the health crisis, with a full analysis per activity (power plants,
mines, PPC Stores, headquarters) and planning of scenarios and ways to deal with it. In the context of the business plan,
ongoing training was provided to both the Heads of Service Units and the Security Managers/Coordinators and the
security staff.
✓ Continuous operation of the Pandemic Crisis Management Committee composed of senior managers.
✓ Setting up of a team per facility (consisting of the competent Safety Technician, Occupational Physician and authorized
employees of the relevant Unit) to implement and monitor compliance with the applicable measures.
✓ Inspections by Committees established per geographical area, in particular with a view to monitoring compliance with the
measures, mainly in front-line Units, as a complementary measure to reinforce security protocols against the pandemic.
Each site is inspected on the basis of a checklist and a relative paper report is submitted to the Chief Officer of the
inspected Units and the Chief Human Resources & Organisation Officer so as to be informed on the findings of the
inspections, in particular on the non-observance or the inadequacy of measures in the inspected Units and on suggestions
for any improvements thereof.
The above measures and internal inspections resulted in the non-detection of any violation by the competent bodies and
Authorities (Hellenic Labour Inspectorate-Independent Authority for public Revenue) during the inspections carried out
in the Company's Units.
✓ Remote work to the maximum extent possible, where feasible and consistent with the nature of the tasks. Issuance of
guidelines on the compliance with measures for the protection of the health and safety of employees when working
remotely. The relative guideline material was posted on the company's website.
✓ Utilization of digital technology and upgrading of the relevant infrastructure for remote work.
✓ Ongoing briefing of the personnel, either on-site at the workplace or through online training courses by the competent
Department.
✓ Posting of special information material in all workplaces about the measures in force each time and in order to encourage
vaccination.
✓ Upon launching of the vaccination programmes by the State, with a view to build up a wall of immunity and safeguard
employees’ health, a vaccination incentive was introduced, providing for two (2) days of special paid leave to all personnel
who have completed vaccination.
✓ Ongoing health support and Covid -9 case management by the personnel of the Occupational Health Unit of the
Occupational Health and Safety Department, specifically by a network of 29 occupational physicians, 8 specialty doctors
of the Medical Control Section and 78 nursing staff, in 18 clinics throughout the Greek territory. Daily epidemiological
surveillance of Covid-19 and contact tracing in the workplace and the immediate family members of employees.
✓ Preventive diagnostic testing by performing RT-PCR molecular tests to the Group's personnel at the Company's expense
(from September 2020 to December 2021, more than 11,000 tests were performed in the Attica Region and more than
20,000 tests in the rest of Greece). The personnel of critical infrastructure (generation and mining), as well as of the front
office of PPC Stores who come into contact with the public were subjected to mandatory fortnightly diagnostic testing for
COVID-19, as well as in exceptional circumstances, if so required (e.g. in the context of close contact tracing).
✓ Immediate measures were taken and employees belonging to high and/or intermediate risk groups stayed away from work.
The employees who submitted a relevant request were examined by the Physicians of the Occupational Health and Safety
Department of PPC and were categorized as of high or intermediate risk employees. Intermediate-risk employees returned
to work upon the approval of the Medical Control Section and the local Occupational Physicians.
57
✓ Hotline for psychological support to employees by the Social Workers of the Occupational Health and Safety Department.
✓ Supply and distribution throughout Greece of protective masks, gloves and antiseptic solutions. To name just a few, from
March 2020 until December 2021, 1,800,000 surgical masks, 430,000 FFP2 masks, 27,000 antiseptic solutions of 500 ml
and 85,000 surgical gloves were distributed.
✓ Continuous temperature measurement of personnel and visitors by means of special temperature measurement gates (in
premises with a large number of employees or customers) or forehead thermometers, when entering the workplace.
✓ Mandatory filling in of a special form for visitors/third parties entering the Group's premises (in Greek and English).
✓ Regular disinfection of all Company facilities.
Similar actions were undertaken by all subsidiaries of PPC Group.
In particular, for the financial year 2021, the amounts spent to tackle the COVID 19 pandemic arose to EUR 5,040 for PPC SA
and in total EUR 13,708 for the Group:
Indicator/Company
PPC S.A.
GROUP
(amounts in thousand
euros)
2021
2020*
2021
2020
Amounts spent to deal
with the pandemic
5,040
2,318
13,708.0
10,878.3
*For 2020 the expenditure concerned only masks, gloves and antiseptic solutions, as well as expenditure of the Information
Technology Department for the purchase of equipment for remote work and other expenditure.
Note: The Group includes the companies PPC S.A., HEDNO S.A., PPC RENEWABLES S.A., LIGNITIKI MELITIS SINGLE
MEMBER S.A. and LIGNITIKI MEGALOPOLIS SINGLE MEMBER S.A.
The result of the above actions
The aforementioned measures have been implemented since March 2020 and continue to date, resulting in the Company
facing the least possible impact from the pandemic, without ever stopping its operations and with a minimum number of work-
related Covid-19 cases in relation to the number of its employees.
3. Social Issues
Due Diligence and other Policies
For PPC Group, its contribution to local communities is inextricably linked to its business activity. To this end, it implements
important actions mainly addressed to both the communities in which the company operates and the wider society. Its
important social action includes a series of actions, developed over time, in the fields of health, sports, culture and education.
PPC S.A., aiming to help its employees overcome personal challenges, since 1966 has integrated in its insurance legislation
the provision of social services by the Company's Social Workers, in order to prevent and address the emotional or socio-
economic problems of its employees. Since 2013, the Social Service has been integrated into the Occupational Health and
Safety Department and currently belongs to the Psychosocial Support Section of the Occupational Health Unit. The Social
Service of the Occupational Health and Safety Department is staffed nationwide by nine professional social workers who, by
creating a climate of security and trust, are active in a wide range of activities.
58
Customer-centric approach - Care for vulnerable customers
PPC is in line with the needs of our times and is constantly evolving its services aiming to provide immediate and effective
customer service. In this context, two pop up stores were created in 2021 with an emphasis on interaction and digital
environment. In addition, the first new era store was opened in Maroussi with 3 service zones: the quick service zone, the
electronic service zone and the zone of services provided by energy consultants.
PPC products were enhanced by launching an add-on service which may be combined with all electricity programmes and
which covers with renewable energy guarantees of origin the total energy consumed by a home thus offsetting its CO2
emissions as well as a new energy program which incorporates the emergency technical support service and the add on
service of guarantees of origin for generation from renewable energy sources. At the same time, it renewed its Natural Gas
products with competitive prices and additional discounts to meet the needs of each and every customer.
In this context, PPC's mission was further strengthened with strategic partnerships and innovative actions, with a view to
promoting energy saving, electrification of heating, e-mobility and a more sustainable future.
Acknowledging the difficulties faced by its consumers due to the energy crisis, PPC offered customers a series of financial
relief packages, reinforcing government measures with additional subsidies and discounts for households and businesses and
additional discounts for customers with agricultural tariff. Customers who are registered at the agricultural tariff were further
supported with more favourable terms in the debt repayment plans.
Non-Financial Performance Indicators
The table below displays the amounts allocated to donations and sponsorships, support for local communities and
bodies/organisations for the financial year 2021:
Indicator/Company
PPC S.A.
GROUP
(amounts in thousand
euros)
2021
2020
2021
2020
Social Contribution
(donations and
sponsorships, support of
local communities)
5,368.7
7,830.0
6.346,1
7,925
Note 1: The Group includes the companies PPC S.A., HEDNO S.A., PPC RENEWABLES S.A., LIGNITIKI MELITIS SINGLE
MEMBER S.A. and LIGNITIKI MEGALOPOLIS SINGLE MEMBER S.A.
Note 2: The above figures may be subject to revision at the final closing of the financial year 2021.
59
The table below displays the frequency of power outages for the year 2021 based on the data of the subsidiary HEDNO S.A:
Indicator/Year
2021
2020
Power outage frequency
(SAIFI) (number of power
outages per customer)
2.05
power
outages/customer
1.6
power
outages/customer
Average time of power
outage duration (SAIDI)
(annual power outage
duration in minutes per
customer)
155.41
minutes/customer
110.7
minutes/customer
4. Combating corruption and issues related to bribery
Due Diligence and other Policies
It is crucial for the Company to comply with the law and respect the principles of the PPC Staff Regulation and the PPC Code
of Conduct. In order to ensure control of and compliance with the above, PPC has established internal procedures and
organizational structures such as the Internal Audit Department and the Compliance Department and together with the Risk
Management Department it has set up this way an organizationally comprehensive corporate Internal Audit System.
Furthermore, the Company through the Compliance Department has proceeded with the assistance of a consultant of
recognized standing to the drafting of a “Business Ethics and Compliance Program”, which contains the updating of existing
or the development of new policies/procedures, in accordance with the best international practices, principles and rules, as
well as guidelines for their effective implementation. This Program includes policies and procedures on anti-corruption, anti-
bribery, conflict of interest, review of the Company's Code of Conduct, and whistleblowing management, as well as a system
of sanctions in case of violation of the policies. During 2021, most of the above policies were approved , and the goal is to
complete the Program, with the revision of the Code of Conduct, within the first quarter of 2022.
All cases of corruption which come to PPC’s attention, either as a result of complaints or through inspections carried out by a
Supervisor/Department and/or the Internal Audit Department, are fully investigated and subsequently disciplinary measures
are taken against the employees, in accordance with Chapter VI of the PPC’s Staff Regulations. In most cases, given the
significance of the disciplinary offences imposed on employees involved in such cases, the aforementioned disciplinary cases
are forwarded from the CEO to the First Instance Disciplinary Board, which can impose any of the sanctions specified in articles
26 and 32 of the PPC Staff Regulations. Cases of misconduct which constitute criminal offenses are referred to the appropriate
judicial authorities.
By the Board of Directors' Decision No. 19/01.03.2022, the new enforcement policy of the Company was approved; this policy
supplements the above procedure with new provisions (analogous to those of the PPC Staff Regulations) in order to deal
accordingly with potential violations by employees/executives whose contracts are not governed by the PPC Staff Regulations.
The Company takes all appropriate measures, in accordance with the provisions of L. 4557/2018, as applicable each time, with
regard to the prevention and suppression of money laundering and financing of terrorism. For this purpose, the Board of
Directors' Decision No. 30/06.04.2021 approved the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT)
to be implemented exclusively where the Company conducts wholesale transactions or occasional transactions in cash, or
concludes futures contracts or options, on condition that the aforementioned transactions amount to at least ten thousand
(10,000) euro, independently of whether it is in one single transaction or in more than one which appear to be linked.
60
Furthermore, it has introduced in its institutional framework (Code of Conduct, Template Documents for contract awarding,
etc.) and applies provisions concerning:
• Transparency (Code of Conduct: § 9).
• Corruption (Code of Conduct: § 10; PPC Staff Regulations: articles 26 and 32).
• Fraud (Code of Conduct: § 12).
• Exclusion from contracts of economic operators who have either been convicted by an irrevocable judgment of an offense
of corruption- bribery, involvement in a criminal organization, committing terrorist offenses, child labor, money laundering
and fraud, or have been penalized for labor law violations (PPC BoD Decision 5/17.01.2019: "Approval of Template
Documents for the Contracting of Works, Supplies and Services, in accordance with L. 4412/2016, and relevant
provisions"), article 13 of the PPC Regulations on Works, Supplies and Services (Exclusion of Economic Operator): PPC
BoD Decision 53/19.05.2020 “Approval of the Regulations on Works, Supplies and Services of PPC S.A.”, pursuant to the
EU and the national legislation (Directive 2014/25/EU, law 4412/08.08.2016 and law 4643/03.12.2019)”).
By the Decision No.82/14.07.2021 the Board of Directors approved the Conflict of Interest Policy of PPC S.A. through which
the Company provides support, information and guidance to the entire personnel at all levels regarding the principles and rules
for the prevention or management of conflict of interest situations and the way to implement them. In particular:
• The practice for the Board of Directors is that, at the beginning of each meeting, Board members shall be obliged to submit
a declaration of no conflict of interest.
• There is a special paragraph establishing that, at all stages of the tender process, the participants shall declare that there
is no conflict of interest
• Declaration of no conflict of interest in the recruitment process
• Compilation of an annual register of declarations of no conflict of interest during the performance of duties by all Company's
executives.
Non-Financial Performance Indicators
[GRI 205-3: Confirmed incidents of corruption and
actions taken]
Indicator/Company
PPC S.A.
GROUP
2021
2020
2021
2020
Criminal court convictions on matters falling within the
criminal offenses of corruption, abuse of power,
embezzlement, theft, infidelity, bribery, fraud, forgery,
false testimony or falsification of documents, use of false
testimonies and official secrecy violation (number of
court decisions)
1
1
1
1
* Final judgements of civil and criminal courts. The indicator relates to employees of PPC S.A., in
the context of exercising their duties by virtue of their status as employees of the Company. The
indicator relates to full-time, temporary or seasonal employees excluding seconded employees,
contractors and their staff.
Note: The Group includes the companies PPC S.A., HEDNO S.A., PPC RENEWABLES
S.A., LIGNITIKI MELITIS SINGLE MEMBER S.A. and LIGNITIKI MEGALOPOLIS SINGLE
MEMBER S.A.
61
[ESG SS-G1: Business Ethics Violations]
Indicator/Company
PPC S.A.
GROUP
2021
2020
2021
2020
Employees on whom the Company has imposed
disciplinary sanctions in relation to offences of corruption,
abuse of power, embezzlement, theft, infidelity, corruption,
bribery, fraud, forgery, false testimony or falsification of
documents, use of false testimonies and official secrecy
violation (number of employees)
7
4
10
4
Note: The Group includes the companies PPC S.A., HEDNO S.A., PPC RENEWABLES S.A., LIGNITIKI MELITIS SINGLE
MEMBER S.A. and LIGNITIKI MEGALOPOLIS SINGLE MEMBER S.A.
5. Respect for Human Rights
Due Diligence and Other Policies
PPC respects the protection of human rights and strictly condemns child labor, forced and compulsory labor, as well as all forms
of discrimination. The respect and protection of human rights in the workplace primarily concerns:
• Providing equal opportunities in the recruitment (L. 4643/2019, etc.), placement, training, remuneration, and promotion process
within the Company (Code of Conduct § 1 and 2).
• Ensuring the health and safety of its employees (PPC Health and Safety at Work Policy and Code of Conduct § 3) and its
contractors’ employees (Management Decisions).
• Compliance with applicable legislation on remuneration, working hours, overtime and allowances for PPC’s management,
executives and staff (Remuneration Policy of Board Members and its Committees, and the Recruitment and Remuneration
Policy of Corporate Executives, PPC Staff Regulations, PPC enterprise-specific collective labor agreement, etc.).
• Freedom of association and collective bargaining (collective labor agreements, etc.).
• Refraining from employing individuals below 18 years of age.
• Condemning discrimination, harassment, offensive or inappropriate behavior, unfair treatment or reprisals of all kinds (PPC
Staff Regulations, Chapter D, article 19 and article 26 (3), Code of Conduct: § 13). In 2021 the Company developed a Policy
against Violence and Harassment at Work in compliance with Law 4808/2021 for labour protection, which was approved by
the Board of Directors' Decision No.18/01.03.2022
• Ensuring a work-life balance for its employees (PPC Staff Regulations, Collective Labor Agreements, Management Decisions,
etc.).
• Providing incentives to stimulate enhanced employee performance, increase productivity and reduce absenteeism (CEO
Decision).
With regard to non-discrimination when promoting employees, it is noted that:
• in 2014, women held 17% of the Company's managerial positions, while in 2021 they held 32%, that is an increase by
88.2%.
• in 2014, women represented 31.5% of middle managers, while in 2021 the corresponding percentage amounted to 43%,
representing an increase by 36.5%
• the percentage of women out of the total number of graduates who hold management positions in the Company was
approximately 35% in 2020 compared to 36% in 2021.
62
Personal Data Protection
PPC attaches great importance to privacy and the protection of personal data of both employees and other stakeholders. In
compliance with the provisions of the General Data Protection Regulation (GDPR) EU 2016/679, as well as with L. 4624/2019,
the Company has adopted a series of Policies and Procedures aimed at the high level and effective protection of the personal
data of its employees, customers and partners. In particular, for the financial year 2021:
• By Decision No.147/23-11-2021 the Board of Directors approved the updated Personal Sata Protection Policy which is
posted on the Company's website (https://www.dei.gr/el/dei-omilos/i-dei/etairiki-diakivernisi/enimerwsi-gia-ta-dedomena-
proswpikou-xaraktira/)
• Guidelines for the preparation of a Data Protection Impact Assessment (DPIA) on critical business processes were issued
• A special procedure for the drawing up of a Data Processing Agreement (DPA) has been included in the Regulations on
Works, Supplies and Services.
• A series of communication and training activities has been carried out to raise awareness on data protection issues.
Freedom of Association
PPC supports the freedom of association of its staff. The employees participate in various labor unions with which there is a two-
way communication with the Management of the Company. Basic human resources arrangements are the primary concern of
consultations between the Company's Management and the unions. Within the Company there are two Federations (General
Federation of PPC Electricity Sector Personnel and Electricity Industry Workers’ Federation) and 30 other labor unions.
The union-workers are protected under relevant legislation (with regards to transfers and dismissals).
Labor union actions are facilitated through appropriate leaves, in compliance with the relevant legislation and the enterprise-specific
collective labor agreement
Enterprise-specific collective labor agreements are signed, usually with a 3-year duration, following collective bargaining.
Non-Financial Performance Indicators
GRI 406-1- Incidents of Discrimination and
Corrective Actions taken
Indicator/Company
PPC S.A.
GROUP
2021
2020
2021
2020
Court convictions on incidents of human rights violations
in the workplace (number of incidents)
0
0
0
0
Employees subject to disciplinary penalties by the
Company for incidents of human rights violations in the
workplace (number of employees)
0
0
0
0
Note 1: The Group includes the companies PPC S.A., HEDNO S.A., PPC RENEWABLES S.A., LIGNITIKI MELITIS SINGLE
MEMBER S.A. and LIGNITIKI MEGALOPOLIS SINGLE MEMBER S.A.
63
Responsible Supply Chain
PPC S.A.
Due Diligence and other Policies
In order to meet its needs in materials and services, as well as to carry out technical works, PPC S.A. enters into contracts
with suppliers, giving priority, where feasible, to local suppliers, with the aim to support and develop local economies. In 2021,
the procedures for the award of supplies, services and works were governed by PPC's Regulations on Works, Supplies and
Services (Decision No. 53/19.05.2020 of PPC's Board of Directors), which together with the applicable EU ( Directive
2014/25/EU) and national legislation constituted the regulatory framework for the conclusion of contracts on works, supplies
and services. By the decision of the Board of Directors of the Company No 105/02.09.2021, the amendment of specific
provisions of the Regulations on Works, Supplies and Services and the attached thereto Template Documents of PPC S.A.
was approved in order to comply with the amendments-supplements imposed by L. 4782/09. 03.2021 (National Official Gazette
A' 36), the decision of the Board of Directors No. 82/14.07.2021 by which the Company's Conflict of Interest Policy was
approved and the Company's relevant guideline on the procedure for the registration of procurement and invoice supporting
documents.
The Company posts the contract notices on works, supplies and services on its website, aiming to initiate a public dialogue
based on full transparency and objectivity. The Regulations on Works, Supplies and Services of the Company governing the
award procedures is posted on the Company's website (https://eprocurement.dei.gr/pages/information/).
The Company is in constant communication with key suppliers to exchange views on the behaviour of the equipment supplied
and to transfer know-how to them. The main categories of procurement include materials - spare parts, fixed support
equipment, services, works, liquid fuels, lignite (by third parties), natural gas, procurement of electricity and greenhouse gas
emission rights.
In order to ensure that contractors and any subcontractors comply with labour and insurance legislation for their staff,
depending on the type of service provided, PPC includes a general clause in all contracts it enters into, which provides for
termination of the contract and exclusion of the contractor from future tender procedures in the event of repeated non-
compliance. For each payment to a contractor (for the above cases provided for in the contract), PPC requires evidence that
the contractor has fulfilled its labour obligations towards its staff, as well as the corresponding employer's contributions.
In this way, the Company ensures that it concludes contracts with contractors who comply with labour law and have their staff
insured as provided for in the relevant legislation.
Results of Policies/Non-Financial Performance Indicators
In 2021, there were no incidents of labour law violations by contractors related to projects run by the Supply Chain &
Corporate/Commercial Operations’ Procurement Department of the Company.
Similarly, with regard to the subsidiaries PPC RENEWABLES S.A., HEDNO S.A., LIGNITIKI MELITIS SINGLE MEMBER
S.A. and LIGNITIKI MEGALOPOLIS SINGLE MEMBER S.A., no incidents of labor law violation by contractors were
detected during 2021.
[GRI 102-10: Significant changes in the supply chain]
As already mentioned, in 2021, by the decision of the Board of Directors of PPC S.A. No. 105/02.09.2021, the amendment of
specific provisions of the Regulations on Works, Supplies and Services and the attached thereto Template Documents of PPC
S.A. was approved in order to comply with the amendments-supplements imposed by L. 4782/09.03.2021 (National Official
Gazette A' 36), the decision of the Board of Directors No. 82/14.07.2021 on the approval of the Company's Conflict of Interest
Policy and the Company's relevant guideline on the procedure for the registration of supply and invoice supporting documents.
64
4. Information referred to Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18
June 2020 on the establishment of a framework for the facilitation of sustainable investment and on its delegated
Regulation (EU) 2021/2178 Of 6 July 2021 supplementing Regulation (EU) 2020/852
To achieve the European Union (EU) climate and energy targets by 2030 and also to meet the targets of the European Green
Agreement, which laid the groundwork for changes in energy and climate policies to reduce its emissions, the EU has
established the framework for the creation of the European Classification for Environmentally Sustainable Economic Activities.
The European Classification is a classification system that includes activities that are considered to be, under certain
conditions, environmentally sustainable or activities that facilitate the transition to sustainability.
The EU Taxonomy Regulation establishes six environmental objectives:
a. Climate change mitigation
b. Climate change adaptation
c. The sustainable use and protection of water and marine resources
d. The transition to a circular economy
e. Pollution prevention and control
f. The protection and restoration of biodiversity and ecosystem
Through the legal framework of the European Classification, business entities can attract investment in order to further expand
and develop their sustainable economic activities, provided that they meet certain criteria. The alignment with these criteria is
constantly monitored, while the relevant data are published on an annual basis and are included in the non-financial report of
the published Annual Report.
Article 8 of the EU Taxonomy regulation brings an obligation for public interest entity to disclose:
(a) the percentage of their turnover from products or services related to economic activities that qualify as environmentally
sustainable under Articles 3 and 9 of the Regulation;
(b) the percentage of their capital expenditure (CAPEX) related to assets or processes related to economic activities that
qualify as environmentally sustainable under Articles 3 and 9 of the Regulation and,
(c) the percentage of their operating expenses (OPEX) related to assets or processes related to economic activities that qualify
as environmentally sustainable under Articles 3 and 9 of the Regulation.
The above percentages correspond to the financial activities of the Group that were considered eligible under the EU
Taxonomy according to the description of these activities and taking into account the corresponding NACE activity codes, as
they are set out in the delegated Regulation 2021/2139 / EU.
For the first period of application of the Taxonomy framework, the Group's financial activities were examined and included or
excluded only on the basis of eligibility and their alignment with the technical criteria provided in the relevant delegated
Regulations has not been considered.
The applicable accounting policies relating to the preparation of the following tables are presented in Note 4.4 "Basic
Accounting Policies" of the Annual Financial Statements (Consolidated and Separate) of December 31, 2021.
The amounts presented in the tables below have been calculated in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and their interpretations as issued by the
Standards Interpretation Committee (IFRIC). ) of the IASB.
The key performance indicators, related to eligible activities according to EU Taxonomy for the financial year 2021 are shown
in the following table:
Eligible
Non-Eligible
Total
Turnover
5.2%
94.8%
100%
Capital expenditure
51.9%
49.1%
100%
Operating Expenses
3.2%
96.8%
100%
The following is a brief description of the key performance indicators by eligible activity.
Electricity generation using solar photovoltaic technology
Eligible activity analysis
Eligible
Non-Eligible
Total
Turnover
<1.0%
>99.0%
100%
Capital expenditure
<1.0%
>99.0%
100%
Operating Expenses
<1.0%
>99.0%
100%
Description of the Group’s eligible activity.
The Group is active in the production of Electricity from photovoltaic parks, through the 100% subsidiary of PPC Renewables
SA.
65
Electricity generation from wind power
Eligible activity analysis
Eligible
Non-Eligible
Total
Turnover (*)
<1.0%
>99.0%
100%
Capital expenditure
<1.0%
>99.0%
100%
Operating Expenses
<1.0%
>99.0%
100%
Description of the Group’s eligible activity.
The Group is active in the installation of wind turbines in wind farms, as well as in the production of Electricity from wind
farms, through its 100% subsidiary PPC Renewables SA.
Electricity generation from hydropower
Αctivity analysis
Eligible
Non-Eligible
Total
Turnover (*)
17.0%
83.0%
100%
Capital expenditure
<1.0%
>99.0%
100%
Operating Expenses
<1.0%
>99.0%
100%
(*) As determined based on the unbundled Income Statement of the Electricity Production Sector.
Description of the Group’s eligible activity.
The Group produces electricity both through the Large Hydroelectric Power Stations of the Parent Company, and through the
Small Hydroelectric Power Stations of the 100% Subsidiary PPC Renewables SA. The installed Hydroelectric Power of the
Group amounts to approximately 3,000MW and in 2021 the hydroelectric production reached approximately 5.3 TWh.
The Large Hydroelectric Power Stations (HPPs) (15) are classified into 4 main river Complexes (Acheloos, Aliakmonas,
Arachthos, Nestos) and two independent HPPs (Plastiras and Ladonas). As multi-purpose projects, in addition to their
participation in the energy balance of the Interconnected System, they provide flood protection, provide water for cities, irrigate
agricultural land, upgrade lakeside areas for tourism, water sports, boating, etc. in Greece.
In addition, at the beginning of 2024, the Metsovitiko HPP (29MW) is expected to start operating, while the Mesochora HPP
(160MW) is expected to be put into operation at the end of 2025.
Transmission and distribution of electricity
Eligible activity analysis
Eligible
Non-Eligible
Total
Turnover (*)
5,2%
94,8%
100%
Capital expenditure
51,1%
49,9%
100%
Operating Expenses
3.1%
96.7%
100%
Description of the Group’s eligible activity.
The Group is active in the Distribution of Electricity in the Low and Medium Voltage, through its 100% (on 31/12/2021)
subsidiary HEDNO SA, while the activity of the Distribution Network was integrated in the activities of the Parent Company
until 30.11.2021 and then it was contributed to the subsidiary HEDNO SA Electricity Distribution Activity was considered for
the report of 31.12.2021 as totally eligible for the purposes of the European Taxonomy.
Note on fossil gaseous fuel power generation activities (Delegated Regulation 2022)
The Group is active in the operation of electricity generation / cogeneration facilities with the use of natural gas. The relevant
Regulation at the time of publication of this report is still under consultation. If the generation of electricity from fossil fuels was
considered as an eligible activity for the report of 31.12.2021, then the disclosure would be formulated as follows:
Electricity generation from fossil gaseous fuels
Activity analysis
Eligible
Non-Eligible
Total
Turnover (*)
44.9%
55.1%
100%
Capital expenditure
<1.0%
>99.0%
100%
Operating Expenses
<1.0%
>99.0%
100%
(*) As determined based on the unbundled Income Statement of the Electricity Production Sector.
Description of the Group’s eligible activity.
The Group produces electricity through the steam power plants (SPP) of the Parent Company using natural gas as fuel. The
installed capacity of the Group's gas-fired SPPs exceeds 2,650MW and includes the SPPs of Komotini, Megalopolis, Aliveri
and Lavrio - Keratea. In 2021 the Group's production of electricity from natural gas fired stations, reached approximately 11
TWh. It is noted that the new unit Ptolemaida V, which will initially operate from 2022 as a lignite fired unit, is expected to be
converted after 2028 to use natural gas as fuel.
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Statement of Corporate Governance
1. INTRODUCTION
Corporate Governance is a system of management and control of the societes anonymes. It is a set of structures, principles,
rules, procedures and practices based on which the continuous improvement of the Company’s efficient operation, for the
sake of its shareholders and all parties having legitimate interest in its operation, the enhancement of the long-term financial
value of the Company and in general the safeguarding of corporate interests, are pursued.
The implementation and the observance of corporate governance best practices constitutes an essential commitment and
priority of “Public Power Corporation S.A.” (herein “PPC S.A.” or “the Company”) due to its important role in the Greek economy
and the public interest services it provides. An indication of the importance that PPC attaches to corporate governance is the
newly established Legal Affairs & Corporate Governance Division which is tasked with the introduction of new and the review
of the existing corporate governance practices in order to ensure the alignment of the Company and the entire Group with
international best practices. Furthermore, PPC, in addition to the requirements of L. 4706/2020, instituted organizational
structures, at the level of departments, for the more complete adoption and implementation of Procedures for both Regulatory
Compliance and Risk Management.
In the context of strengthening Corporate Governance, the Company in 2021 in full compliance with L. 4706/2020 harmonized
all the provisions of its Articles of Incorporation and adopted and implemented Policies and Regulations beyond those required
by law, approaching international best practices and in particular:
• New Code of Corporate Governance
• Reformed / Updated Rules of Operation of the Company
• New Policies and Regulations of Compliance and Business Ethical Behavior
More specifically, within the first half of 2021, 14 Policies and Regulations were approved that incorporate the regulatory
framework and best practices that ensure its transparent and effective management.
Specifically, a series of Policies and Regulations were approved that ensure the adequacy of the members of the Board of
Directors (herein “BoD” or “Board of Directors”), the strengthening of the role of the Audit Committee, the fulfillment of the
independence criteria by the independent non-executive members and the transparency (Suitability Policy for the Members of
the Board of Directors, the Board of Directors Rules of Operation, the Audit Committee Rules of Operation, the Nominations,
Remuneration and Recruitment Committee Rules of Operation and Policy for Notification of the existence of any dependency
relations of the Independent Non-Executive Board Members). In addition, the Training Policy for the Board Members, as well
as the Executives Training Policy were approved.
In order to prevent adverse events related to the operation of the Market and to create relationships of trust with the investors,
the Privileged Information Management Regulation and the Related Parties Transactions Regulation were approved.
Aiming at strengthening the Internal Control System, the Rules of Procedure of the Internal Audit Unit Department were
reformed and the Policy for the Periodic Evaluation of the Internal Control System was adopted.
The creation of value for our stakeholders (shareholders, employees, investors and generally individuals who interact with us)
is accomplished not only through the achievement of strong fundamental sizes but mainly through good governance, and the
impact of the Company's activity on Society and the Environment. In this context, the Sustainable Development Policy was
approved, which defines the basic framework of the Company's commitment to the three ESG pillars, namely Environment,
Society, Governance (as set out below).
Also, in the context of the implementation of the "Business Ethics & Compliance Program" (Ethics & Compliance) which not
only aims at the suppression and proper management of Conflict of Interest situations, but also at creating a business culture
that will prevent such phenomena. In this context, the Board of Directors approved the Conflict of Interest Policy, as well as
the Anti-Money Laundering and Combating Terrorist Financing Policy. Also, in 2021, the Policy against Discrimination,
Violence and Harassment at Work and the Sanctions and Whistleblowing Policy were developed.
67
At the same time, the Company is in the process of revising its Code of Conduct, which incorporates the new Policies for
Corruption and Bribery and the Whistleblowing Policy. In particular, in order to deal with incidents of corruption, discrimination,
violence and harassment at work, the Company, in cooperation with Transparency International Greece, proceeded to create
a channel for receiving reports and complaints that will effectively contribute to the prevention and detection of corruption,
unethical or illegal activities.
This framework of corporate governance, corporate social responsibility (herein “CSR”) and compliance will constitute the
Company’s safeguards in the future with the ultimate goal of ensuring sustainable development and maximizing its value.
It is highlighted that the Company, before 16-11-2021, the date of completion of the increase of its share capital, which was
decided by the Extraordinary General Meeting of the shareholders on 19/10/2021 and the limitation of the percentage of the
Hellenic Republic to 34.12%, had as an indirect main shareholder the Hellenic Republic, which held 51.12% of its share capital.
As a result, PPC, as a company of the wider public sector, was subject to specific laws and Regulations that apply to public
sector corporations. Consequently, its operations were subject to restrictions provided for in special laws applicable to the
Greek public sector, such as, by way of illustration, Policies related to supply and works, remuneration and recruitment. These
laws and Regulations may have limited its operational flexibility and the implementation of relevant corporate governance
“best practices”, despite the fact that L. 4643/2019 introduced Regulations that facilitated a more flexible operation of the
Company in critical fields of its activity.
With regard to the shareholder structure of the Company, after the completion of its share capital increase on 16-11-2021:
The shareholder structure of the Company, after the completion of its share capital increase on 16-11-2021 and following the
transfer by law on 2-3-2022 of the total participation of HRADF in PPC share capital (corresponding to 10,32%) from HRADF
to HCAP, in accordance with article 147 of Law 4876/2021, is the following: The Hellenic Corporation of Assets and
Participations S.A. ("HCAP", in which the Hellenic Republic holds 100% of the shares and voting rights), holds directly 34.12%
of PPC’s share capital and voting rights, the company Selath Holdings S.à r.l holds 10% of the Company's share capital and
voting rights and the total holdings of Helikon Long Short Equity Fund Master ICAV of PPC’s voting rights (i.e. the total of
voting rights attached to shares and voting rights through financial instruments) amount to 6,48% (based on relevant
notification received on 29.9.2021 from Helikon Investments Limited), while the remaining percentage is held by institutional
investors and general public.
Structure of the Statement of Corporate Governance
The current Statement of Corporate Governance is prepared pursuant to the provisions of article 152 of L. 4548/2018, article
18 of L. 4706/2020, as in force, as well as the provisions of the Hellenic Corporate Governance Code of the Hellenic Corporate
Governance Council (HCGC), which was issued in June 2021 and has been adopted and is implemented by the Company,
following the relevant approval of its Board of Directors, and in conformance with article 17 of L. 4706/2020.
This Statement of Corporate Governance is a special part of the Annual Management Report of the Board of Directors and
contains all the information required by law. In addition, it includes the Company's response to specific practices in accordance
with the Chapters of the Hellenic Corporate Governance Code of HCGC, which has been adopted and is implemented.
In particular, the structure of this Statement of Corporate Governance (hereinafter referred to as "Statement") is as follows:
I. Declaration of Conformance with the Corporate Governance Code
II. Deviations from the Corporate Governance Code and Justification of Deviations
III. Corporate Governance Practices applied by the Company in addition to the provisions of the legislation
IV. Description of the internal control and risk management systems in relation to the financial reporting process
V. Information regarding the Company's control status (points (c), (d), (f), (h) and (i) of paragraph 1 of Article 10
of Directive 2004/25/EC of the European Parliament and of the Council, of 21 April 2004 on public takeover
bids)
VI. Convocation and Functioning of the Governing Bodies
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A. Board of Directors
1. Composition and functioning - term of office of each member of the Board.
2. Detailed Curriculum Vitae of the members of the Board of Directors, the Chief Officers and the Corporate
Secretary
3. Appointment of the Chairman, the Vice Chairman and the Chief Executive Officer (hereinafter, “CEO”)
4. Appointment of non-executive members and, of these, the non-executive members that the Board of Directors
views as independent and the rationale behind this view
5. Number of meetings of the Board of Directors and the frequency of participation of each member - issues each
member dealt with
6. Reference to the Suitability Policy for the Members of the Board of Directors – description of the evaluation
process of the individual and collective suitability of the members of the Board of Directors
7. Other Professional Engagements of the of the members of the Board of Directors
8. Number of shares held by each member of the Board and any key Executive member of the Company
9. Remuneration Policy for the members of the Board of Directors
10. Instances of direct and indirect conflicts of interest
11. Establishment of criteria for independence by the Nominations, Remuneration & Recruitment Committee
12. Communication with shareholders and other stakeholders
B. Audit Committee
i. Composition and functioning - term of office of members
ii. Curriculum Vitae of the members of the Audit Committee
iii. Responsibilities of the Audit Committee
iv. Frequency of Audit Committee meetings and members’ participation
v. Proceedings of the Committee for the fiscal year 2021
vi. Committee Evaluation
C. Nomination, Remuneration, and Recruitment Committee
i. Composition and functioning - term of office of members
ii. Curriculum Vitae of the members of the Committee
iii. Responsibilities of the Committee
iv. Frequency of Committee meetings and members’ participation
v. Proceedings of the Committee for the fiscal year 2021
vi. Committee Evaluation
D. Other Committees
VII. Diversity Policy applicable to the Company's management, administrative and supervisory bodies
VIII. Related Parties Transactions Policy
IX. General Meeting and Shareholders' Rights
X. Sustainable Development Policy
XI. Non-Financial Reporting
ANNEX
1. Curriculum Vitae of the Chief Officers of the Company
2. Shares held by the Chief Officers of the Company
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I. Declaration of Compliance with the Corporate Governance Code
The Company, complying with the Regulations of article 17 of L. 4706/2020 and following the decision No. 86 / 14.07.21 of its
Board of Directors, adopted and implements the Hellenic Corporate Governance Code (hereinafter and for the sake of brevity
referred to as the "Code") of HCGC, which was published in June 2021, and is also available on the Company’s website
(https://www.dei.gr/en/ppc-group/ppc/corporate-governance/codes-regulations-and-policies/).
II. Deviations from the Corporate Governance Code and Justification of Deviations
The Corporate Governance Code which has been adopted and is being implemented by the Company, establishes principles
beyond the mandatory framework of Corporate Governance legislation and is implemented based on the principle "Comply or
Explain", according to which the Company is required to explain the reasons for deviations from its specific practices.
Following the above and based on the principle "Comply or Explain", below are presented the deviations of the Company's
Regulations from the said practices of the Code, always taking into account that PPC SA. for the fiscal year 2021, as a
company of the wider public sector, was subject to legal provisions and Regulations regarding the recruitment and
remuneration process of the executives:
Hellenic Corporate Governance
Code
Explanation/Justification of discrepancies
Role and competencies of the Board
of Directors (provision 1.11 of the
Code - definition of responsibilities of
the CEO and the Deputy Chief
Executive)
In the initial Articles of Incorporation of the Company according
to the issued Presidential Decree 333/2000 (Government
Gazette 278/20.12.2000 vol. A') which has the force of law,
there is an opposite regulation. The authority and
competencies of the CEO are provided directly by the Articles
of Incorporation (par. 2 and 3 article 15)
Diversity criteria for senior managers
(provision 2.2.15 of the Code)
The selection of the Company's executives is governed by the
special L. 4643/2019 "Liberalization of the energy market,
modernization of PPC, privatization of DEPA and support of
R.E.S. and other provisions” (Government Gazette 193/Α/ 3-
12-2019), which ensures the provision of equal opportunities in
the process of staff recruitment, remuneration and evolution in
the Company (Code of Conduct of PPC S.A. § 1 and 2). Proof
of fulfillment of the diversity criteria for the executives as well,
is the fact that in 2021 the percentage of women in managerial
positions in the Company rose to 32% from 17% in 2014,
marking an increase of 88.2%. (including the ranks starting
from Assistant Directors/Head of Units of the Company). In
addition, the percentage of women mid-level employees
(including the ranks of Heads of Section and Heads of
Subsection), whose selection is not governed by L. 4643/2019,
rose to 43% in 2021 compared to 41% in 2020.
Ensuring the duties of the members
of the Board can devote sufficient
time to the performance of their
duties (provisions 2.2.17 & 2.2.18 of
the Code)
The high degree of involvement of each member of the Board
in the meetings that took place during the fiscal year 2021
testifies that in essence there is no question of deviation from
the provisions of the Code; however, the Company is in the
process of adapting the relevant wording to its Regulations and
Policies within the first semester of the current year. Until the
implementation of the specific provisions, the members of the
Board of Directors are advised, in terms of their external
professional commitments, to not participate in Boards of
Directors of more than five (5) companies of different
interests,and the non-executive members to not participate in
Boards of Directors of more than of (5) five listed companies.
Succession Plan of the CEO
(provision 2.3.4 of the Code)
The selection process of the CEO was carried out according to
the procedures of HCAP, which was until recently a majority
shareholder of the Company. Therefore, for the fiscal year 2021
there is no issue of deviation. The Nominations, Remuneration
and Recruitment Committee of the Company prepares the
succession plan of the CEO.
The role of the Nominations
Committee in the process of
nominating candidates, in the
planning of the succession plan for
the Board members and the senior
executives (provision 2.3.7 of the
Code)
The selection of the Company's executives is governed by the
special L. 4643/2019 "Liberalization of the energy market,
modernization of PPC, privatization of DEPA and support of
R.E.S. and other provisions" (Government Gazette 193/Α/3-12-
2019). Therefore, in relation to the provisions of L. 4663/2019
and the special institutional environment governing PPC, the
preparation of the succession plan of the senior executives is
not part of the Nominations, Remuneration and Recruitment
Committee’s responsibilities.
The Remuneration Committee has
the responsibility to determine the
The Remuneration Policy of the Company has been formulated
based on the legislation concerning and applied to companies
70
remuneration system for the
members of the Board and the senior
executives (provision 2.4.8 of Code)
of Chapter B’ of L. 3429/2005 (since at the time of its
preparation the Company was under the control of the State),
the provisions of articles 110 to 112 of L. 4548/2018 in
combination with the Special L. 4643/2019 (which is still in force
after the reduction of the indirect participation of the State to
31.4%) and taking into account the relevant provisions of L.
4706/2020. In accordance with the above, the Policy applies to
the remuneration of the Members of the Board of Directors and
its Committees, the Deputy CEOs, the Chief Officers, the
Directors and the Assistant Directors / Heads of Units of the
Company. Therefore, the determination of the remuneration
system according to the provision 2.4.8 of the Hellenic
Corporate Governance Code is not part of the Nominations,
Remuneration and Recruitment Committee’s responsibilities.
Refund of the variable remuneration
of the members of the Board of
Directions (provision 2.4.14 of the
Code)
According to the Company's Remuneration Policy, which was
approved by the Extraordinary General Meeting of
Shareholders on 4-6-2021, no provisions for recovery of
variable remuneration are foreseen. However, the degree of
achievement of the objectives of the executive members of the
Board of Directors is confirmed after the audit and final
approval of the Group’s financial statements, which means that
there is no case of incorrect financial data being used to
calculate this variable remuneration.
Annual evaluation of the
effectiveness of the Board of
Directors / CEO (provisions 3.3.3
and 3.3.4 of the Code)
The Company is in the process of determining the methodology
to be followed for the evaluation of the performance of the
Board of Directors, both collectively and individually, of its
Chairman, as well as its committees and the adoption of an
Evaluation Policy and Procedure. It is estimated that the first
evaluation of the Board of Directors will be completed within the
current year. Every three years, the evaluation of the effective
fulfillment of the duties of the members of the Board of Directors
and its committees will be assigned to an external consultant.
Especially for the CEO, and in accordance with the Company's
Remuneration Policy, upon the approval of the annual regular
budget and based on the strategic priorities and/or the
Business Plan of the Company, the Board of Directors defines
the goals of the Group (financial, strategic and sustainable
development targets), which are the CEO’s objectives. At the
end of each reference year and following the announcement of
the Group's Financial Results, the level of achievement of the
Group's objectives of all categories is evaluated. The
evaluation process for the entire Company commences from
the evaluation of the achievement of the CEO’s objectives,
through which the level of achievement of the Group’s
objectives is confirmed. The Nominations, Remuneration and
Recruitment Committee receives and reviews the report on the
level of achievement of the CEO’s objectives, through which
the level of achievement of the Group’s objectives is verified
and submits it for final approval to the Board of Directors.
71
III. Practices of Corporate Governance applied by the Company in addition to the provisions of the legislation
For the fiscal year 2021, the Company declares that the rules and practices of corporate governance applied by PPC, apart
from those provided for or required by the standing legislation governing listed corporations of the wider public sector (L.
4548/2018, L. 3016/2002, L. 4449/2017, L. 3429/2005 chapter B, L 4706/2020 and the special law L. 4643/2019). Following
the reduction of the indirect participation of the Greek State at the end of 2021, the Company ceased to be regarded as a
Company of the public sector, within the meaning of L 3429/2005, and is expected to be readjusted to the common type of
private sector companies. However, the Company will continue to be subject to the special L. 4643/2019.
In particular and pursuant to the above for the financial year 2021, these practices and Regulations are set out below:
• The powers and the competencies of the CEO, who is the highest-ranking executive officer of the Company, are
directly provided for in the Articles of Incorporation (par. 2 and 3 Article 15 of the Articles of Incorporation of the
Company, as well as section VI.A.2 below).
• The Board of Directors or the General Meeting of the Shareholders of the Company elects the Chairman of the Board
of Directors as well as the Deputy Chairman (article 14 of the Articles of Incorporation, “Chairman and Deputy
Chairman of the Board of Directors). The capacity of the Chairman of the Board of Directors may coincide with that
of the CEO.
• Apart from the BoD and the CEO, the Governing Bodies of the Company include the Executive Committee (article
18a of Articles of Incorporation, article 4 of Rules of Operation). Its composition and competencies are described in
section VI.C below "Executive Committee".
• There are Deputy CEOs reporting to the CEO (Article 15a of the Articles of Incorporation of the Company, "Deputy
CEOs ")
• The Board of Directors consists of eleven (11) members, out of which at least five (5) are independent non-executive
members (par.1 article 9 a of the Articles of Incorporation), meaning that its composition exceeds the threshold that
is set in par. 2 article 5 of L. 4706/2020, which states that the independent non-executive members shall not be less
than one third (1/3) of the total number of its members.
• The Audit Committee of the Company, which operates pursuant to the provisions of article 44 of L. 4449/2017 as in
force, and article 9 of L. 4643/2019, consists of five (5) members, which shall be in their totality, not in their majority,
independent from the Company, within the meaning of the provisions of article 9 of L. 4706/2020, by virtue of L.
4706/2020 (article 10 and article 74).
• The Company has established a Nominations, Remuneration & Recruitment Committee in accordance with Articles
10, 11 and 12 of L. 4706/2020. The Nominations, Remuneration & Recruitment Committee consists of three (3)
members, which shall be in their totality, not in their majority as stated in L. 4706/2020 (article 10), independent non-
executive members of the Board of Directors of the Company, within the meaning of the provisions of article 5 of the
special L. 4643/2019.
• The prohibition applied to the members of the Board of Directors, concerning the conduct of competitive acts, is valid
for a period of two years following termination for any reason whatsoever of the term of office of the Board member
or his retirement from the BoD (par.2 article 13 of the Articles of Incorporation “Prohibition of competition –
Participation in the Board of Directors of subsidiary companies”).
• The Articles of Incorporation of the Company provide on one hand that the BoD may meet by way of teleconference
(par.2 article 11) and on the other that the Shareholders are entitled to participate in the voting of the General Meeting
via distance voting, registered mail or through electronic means (article 22 par. 4).
IV. Description of the Company's Internal Control and Risk Management system in relation to the financial
statements’ drawing up process (individual and consolidated)
In accordance with the Decision 1/891/30.09.2020 of the Board of Directors of the Hellenic Capital Market Commission, as
amended by its Decision 2/917/17.06.2021, the first assessment of the Internal Control System has to be completed until
31.03.2023, with reference date the period 31.12.2022 and a reference period 17.07.2021 - 31.12.2022. Consequently, the
first reference regarding the Report of the Evaluation of the Internal Control System is expected to be included in the Statement
of Corporate Governance as part of the Annual Financial Report of 31.12.2022.
72
Internal Control System
The Company has established an Internal Control Systems (hereinafter referred to as "ICS") which includes all the internal
control mechanisms and procedures governing the Company, including risk management, internal audit and regulatory
compliance, in order to cover, on a continuous basis, each of its activities and to contribute to its safe and effective operation.
In particular, the Company's ICS aims at the following:
• the consistent implementation of the business strategy, with the efficient use of the available resources,
• the identification and management of material risks associated with its business activity and operations,
• the proper operation of the Internal Audit Department,
• to ensure the completeness and reliability of the data and information required for the accurate and timely
determination of the Company’s financial situation and the preparation of reliable financial statements, as well as its
non-financial statement,
• to ensure the compliance with the applicable regulatory and legislative framework, as well as the internal Regulations
governing the operation of the Company.
The Board of Directors is responsible for ensuring the adequate and effective operation of the Company's ICS, ensuring that
the functions of the units that comprise the ICS are independent of the business areas they control, and that they have the
appropriate financial and human resources, as well as the authority to operate effectively, as required by their role. The
reporting lines and the allocation of duties of the functions of the ICS are clear, executable, and duly documented.
The Audit Committee shall monitor, examine and evaluate the adequacy and effectiveness of the ICS. This evaluation is part
of the overall evaluation of the Company's Corporate Governance System, which is carried out at least every three (3) fiscal
years by the Board of Directors (pursuant to par. 1 of article 4 of L. 4706/2020).
The Company has a Policy and a Procedure regarding the evaluation of the ICS, which were established to comply with par.
(3i) and (4) of Article 14 of L. 4706/2020 and the Decision 1/891/30.9.2020 of the Hellenic Capital Market Commission, as
amended by its Decision 2/917/17-06-2021. The ICS Evaluation Policy incorporates the general principles of the object and
the scope of the ICS evaluation by an independent external evaluator , the periodicity of the audit, the basic principles of
assigning the evaluation to an external evaluator , as well as the procedure for monitoring and notifying both the Company
and its significant subsidiaries with the results of the evaluation. The Evaluation Procedure of the ICS describes the individual
stages of the selection of the independent evaluator who will conduct the evaluation of the ICS in accordance with the above.
i. Safeguards at corporate level
The corporate safeguards concern the internal audit, the regulatory compliance and the risk management.
➢ Internal Audit is the first safeguard at the corporate level
The Internal Audit, in accordance with L. 4706/2020, as in force, the article 4 of L. 3429/2005 and the article 44 of L. 4449/2017
constitutes an independent, objective, assurance and advisory function, which is designed to add value and improve the
Company's operations, helping it accomplish its objectives through the adoption of a systematic and professional approach to
evaluate and improve the effectiveness of governance, risk management and control Processes. The Internal Audit of the
Company is carried out by a special Service, the Internal Audit Department, which was established by a BoD decision and is
supervised by the Audit Committee.
The Internal Audit Department aims at the efficient and valid audit of the Company in order to protect the interests of the
shareholders, in accordance with the legislation in force, the Corporate Governance principles and Internal Audit best
practices, in order to ensure that:
• Risks are identified thus ensuring adequate management by the competent Units.
• The personnel acts in accordance with PPC Policies and Procedures, Rules and the Legislation in force.
• PPC resources are acquired and used in an efficient and cost-efficient manner.
• PPC assets are adequately protected.
• Financial information is reliable.
73
The Internal Audit Department in order to ensure the accordance with articles 1 to 24 of L. 4706/2020 monitors, examines and
evaluates in particular:
- The implementation and continuous compliance with the Company’s Rules of Operation, which includes at least the following:
• The organizational structure, the responsibilities of its committees, the duties of their Heads and their reporting lines
• A description of the key characteristics of the ICS - at least description of the operation of the Internal Audit, the Risk
Management and the Regulatory Compliance functions
• The procedure for recruitment and evaluation of chief executives
• The compliance procedure of the persons that fall within the scope of Regulation EU 596/2014 and the persons
associated with them
• The procedure regarding dependence relationships of independent non-executive members of the Board of Directors,
in accordance with article 9 of L. 4706/2020
• The procedure for the compliance with the obligations arising from articles 99-101 of L. 4548/2018 regarding
transactions with related parties
• The Policies and Procedures regarding the prevention and management of conflicts of interest situations
• The Policies and Processes regarding the Company’s compliance with the laws and Regulations governing its
organization and operation, as well as its activities
• The management of Privileged Information and the prevention of market abuse (Regulation (EU) 596/2014)
• The Policy and Procedure for conducting the Periodic Evaluation of the ICS
• The Training Policy for Board Members and other executives, in particular those involved in internal audit, risk
management, regulatory compliance and information systems
• The Sustainable Development Policy
The Internal Audit Department also monitors, examines and evaluates:
– The ICS, particularly in terms of the adequacy and accuracy of the provided financial information, risk management,
regulatory compliance and the Corporate Governance Code adopted by the Company
– The quality assurance mechanisms
– The corporate governance mechanisms
– Compliance with the commitments stated in the Company's prospectuses and business plans regarding the use of
funds raised from the regulated market
The mission of the Internal Audit Department, its organization and staffing, its competencies, its relations with the Supervisory
Authorities, as well as the competencies of its Director, the rules of its operation and the Code of Ethics of the Internal Audit
Department are included in detail in its Rules of Procedure, which constitute an integral part of the Company's Rules of
Operation. The Audit Committee submits for approval to the Board of Directors the Internal Audit Department’s Rules of
Procedure.
The annual Internal Audit plan is prepared based on the determination, the update and the assessment of the Group's
operational risks and taking into account its strategic objectives and all developments concerning it and the environment in
which it operates. The audit plan is submitted, through the Audit Committee, for approval to the Board of Directors.
➢ The Compliance Department is the second safeguard at corporate level
The Company, recognizing the need to adapt to a new business environment, which is developing worldwide with the issuance
of new necessary Regulations and corporate governance codes, has already, since 2017, established the Compliance
Department.
The objective of the Compliance Department is to monitor compliance with applicable laws, except for the institutional and
regulatory framework regarding environmental and energy transactions, and to promote ethical standards of conduct and
protect the Company's reputation through effective identification, assessment, prevention, supervision and resolution of any
kind of non-compliance with the internal Regulations and Policies of ethical behavior of the Company.
74
Within the scope of its duties, the Compliance Department is responsible for the preparation of the "Business Ethics &
Compliance Program", the diligence of compliance with the "Code of Conduct" by the employees and the partners of the
Company, the contribution to address compliance issues, the preparation of the annual risk assessment plan for compliance
issues, the consideration and management of an advisory help line, as well as the operation and management of a reporting
channel (whistleblowing), the performance of sample audits in the Company's units for the prevention of any violations of the
legal framework in force (ongoing monitoring), the continuous training and briefing of personnel on Compliance and Code of
Conduct issues and finally the monitoring of compliance with the European Union's General Data Protection Regulation
(GDPR).
In addition, and for the specific needs of the Department of Energy Management & Trading, the position of Energy Transactions
Compliance Director was established in September 2021. The main competencies of the aforementioned position is the
continuous monitoring of the legal framework governing energy transactions, the participation in the annual energy
transactions compliance risk assessment in cooperation with the Company's competent departments, the preparation and
monitoring of the implementation of the Energy Transactions Compliance Program, which is a part of the Business Ethics &
Compliance Program, as well as the development of internal guidelines and Policies to ensure compliance.
Finally, in the above context, in April 2021, the development of the Company's Anti-Money Laundering and Combating Terrorist
Financing Policy (AML Policy) was completed. The aforementioned policy is applicable to wholesale transactions and
futures/options contracts, provided however, that the value of the above transactions amounts to at least ten thousand (10,000)
euros, regardless of whether it is carried out with a single transaction or with several that seem to be related to each other.
In this context, the Company, in compliance with International requirements (Bloomberg 2015, creation of TCFD by the
Financial Stability Board) initiated its transition process from the current corporate GRC governance model (Governance,
Enterprise Risk, Compliance), to the new ESG model (Environmental, Social, Governance). Specifically, and according to the
guidelines set forth by the TFCD "Taskforce for Climate-related Financial Disclosure", the Company evaluates the risks it will
face in the context of its activities, due to climate change, and considers ways to deal with them.
➢ The Risk Management Department and the Risk Management Committee are the third safeguard at corporate
level
The initial establishment of the Risk Management Department in 2020 and the subsequent establishment of the Risk
Management Committee in 2021 are aiming at safeguarding the Company against internal and external risks as a result of
its business activity, through central monitoring and coordination of the risk exposure management.
The Risk Management Department has the responsibility of developing and implementing an appropriate risk management
system, which is aligned with the Company's Risk Management Policy by which a) all corporate risks are evaluated (identified,
quantified and prioritized based on materiality), b) a risk management and response strategy is developed (acceptance or
prevention of the risk, risk mitigation by modifying the relevant business action, sharing or transfer of risk), and c) procedures
for monitoring the evolution of risks are set up by introducing appropriate procedures and control indicators. It is noted that the
competence and responsibility for the management of each risk remains with the Services to which these risks pertain.
The Risk Management Committee is entrusted with the risk oversight of all the activities of the Company and the contribution
to the development of the Risk Management Corporate Framework, as well as with the monitoring and reporting of the
significant Corporate Risks.
Operating within this framework, the Company highlights its commitment to the establishment of a business environment that
not only respects and complies with the law, but also enhances the Company’s value, thus ensuring its good reputation and
credibility.
75
ii. Safeguards for information systems
The Company has developed a Framework of Information Systems Security (FISS) within which the Policies concerning
Information Systems Security are defined in regard with information classification, security in matters of personal data, physical
and environmental security, management of communications and information systems operations, access control,
development and maintenance of information systems, coping with vulnerabilities and risks, protection against malicious
software, business continuity management and in general compliance with the obligations deriving from the regulatory-
legislative framework.
The roles and competencies concerning the information systems security are defined in the FISS.
Moreover, the Company has set up the role of Responsible for Information and Network Security (RINS), in accordance with
L. 4577/2018 (NOG A’ 199) and the Ministerial Decision 1027/2019, as applicable each time, with the following responsibilities:
– Constitutes the contact point and works with the National Cybersecurity Authority and the competent CSIRT.
– Coordinates and monitors the Company in respect of its obligations arising from the aforementioned legislation and
other provisions of the EU or the National Cybersecurity Authority, concerning the Information and Network Systems
Security.
– Supervises: a) the implementation of the Single Security Policy (currently the FISS), elaborated based on the security
requirements as defined each time by the National Cybersecurity Authority, b) the satisfaction of the main security
requirements, c) the training and increase of personnel awareness in matters of information and network security,
and d) the drawing up of the self-evaluation report of the Company to be sent to the National Cybersecurity Authority.
– Assists to the audits performed by the Audit Inspection Team, as defined by the National Cybersecurity Authority and
provides to the said Team all adequate means to facilitate its work.
iii. Safeguards for the procedure of preparation of Financial Statements and Reports
The basic areas where safeguards concerning the preparation of the Company’s financial statements and reports are
implemented are the following:
Allocation of Competencies
The executives involved have clearly defined roles and areas of responsibility, reinforcing, thus, the effectiveness of the
Internal Control System.
Procedures for accounting monitoring and preparation of financial statements
– Existence of accounting principles and Policies for the operation of the Accounting Services of the Group.
– Existence of procedures in relation to the issuing of financial statements and their consolidation at Group level.
– Regular follow-up of the International Financial Reporting Standards, as these are adopted by the European Union, and
corresponding adjustment of the accounting principles and Policies of the Group, as required.
– A special approval by the top executives of the Company is required for the execution of accounting entries, which concern
specialized, non-recurring accounting events.
– Audits are being carried out by the Information Technology Department on the information subsystems’ data, before being
integrated into the General Accounting.
– Regular communication of the executives of the Finance Division with the Top Management and the Audit Committee for
the ratification and recording of the important events that affect the financial statements.
– Regular communication of the Chartered Auditors with the Top Management and the Audit Committee with regard to the
progress and the results of the Company’s compulsory audit.
Procedures for property safekeeping
Implementation of safeguards for the information systems in place for managing fixed assets, reserves, cash and cash
equivalents and customers. By way of illustration, the existence of analytical procedures and audit mechanisms for carrying
out the material annual inventory.
76
Transaction approval limits
The operation of the Services, at all administration levels, as well as of the Company’s Bodies of persons is governed by the
Financial and Administrative Jurisdictions System by which the jurisdictions in matters of approvals by the Governing Bodies
and the executives of the Company are defined.
The Audit Committee monitors, on an ongoing basis, the effective operation of the Company's internal control, quality
assurance and risk management systems, of the Regulatory Compliance and, as the case may be, the Internal Audit
Department, regarding the Company's financial information, without violating its independence.
The Audit Committee supervises the Internal Audit Department, in relation to its tasks. In this context, the Audit Committee
presents its observations to the Board of Directors via:
a. the quarterly reports it receives regarding the four (4) areas described by article 16 of L.4706/2020 and particularly: the
implementation of the Rules of Operation and the Internal Control System, especially in terms of its adequacy and accuracy
of the provided financial information, risk management, regulatory compliance and the corporate governance code which
has been adopted and implemented by the Company. Furthermore
b. the reports to the auditees, with findings regarding the four (4) areas described by the law, the risks arising from them and
the recommendations for improvement.
The Board of Directors for the fiscal year 2021, through the aforementioned mechanisms, reviewed the corporate strategy,
the major business risks for the Company, as well as the Company’s Internal Control System and concluded the following:
The Internal Control System developed and implemented by the Company, ensures the consistent implementation of the
corporate strategy, the identification and management of material risks, the effective operation of the Internal Audit
Department, the completeness and reliability of the data and information required for the accurate and timely determination of
the financial situation of the Company and the preparation of reliable financial statements and compliance with the legal and
regulatory framework, as well as the internal Regulations governing the operation of the Company.
In particular, for the fiscal year 2021, the Board of Directors has carried out an assessment of the key areas of business risks
associated with the Group's business, has identified the risks that are likely to have a negative impact on both its financial and
non-financial aspects and it has specified the way Company manages them. A detailed description of the risks is set out in the
relevant section of the Annual Management Report of the Board of Directors, which is included as an integral part of the Annual
Financial Report for 2021.
The Audit Committee ensures the objectivity and independence of the Company's Chartered auditors.
During fiscal year 2021, projects were assigned to the firm of the Company's chartered Accountants. The Audit Committee
consented to these engagements after having duly assessed the threats for independence and the safeguards applied in
accordance with Article 22b of Directive 2006/43/EC. In particular, the Audit Committee carried out an assessment for each
project that was assigned and concluded that in each case, these projects fall within the permitted non-audit services, and
therefore no independence issue is raised within the meaning of the relevant provisions of L. 4449/2017 and Regulation (EC)
537/2014.
77
V. Information regarding the Company’s control status (Information of items (c), (d), (f), (h) AND (i) of paragraph 1
of Article 10 of Directive 2004/25/EC of the European Parliament and the Council, of 21st April 2004
Share Capital Structure
By virtue of the decisions of the Board of Directors dated 29 October 2021 and 11 November 2021, adopted on the basis of
the resolution of the Extraordinary General Meeting of the shareholders dated 19 October 2021, the share capital of the
company was increased by the amount of three hundred and seventy two million Euros (372.000,000), in cash, through the
issuance of one hundred and fifty million (150,000,000) new ordinary, registered, voting, dematerialized shares of a nominal
value of two Euros and forty-eight cents (€2.48) each. Thus, the share capital of the Company on 31.12.2021 amounted to
nine hundred forty-seven million three hundred sixty thousand Euros (947,360,000), divided into three hundred and eighty-
two million (382,000,000) ordinary registered shares of a nominal value of two Euro and forty-eight cents (€ 2.48) each.
Restrictions in transferring Company shares
Article 8 of PPC’s Articles of Incorporation which provided that the percentage of the Hellenic Republic in the PPC’s share
capital could not be less than 51% of the shares with voting rights of the Company following any increase of the share capital,
was abolished, pursuant to the Act of Legislative Content dated September 7, 2012 (which was ratified by article 2 of L.
4092/2012).
Significant direct or indirect participations within the meaning of articles 9 to 11 of L. 3556/2007
With regard to the significant participations (over 5%) in the share capital and voting rights of the Company within the meaning
of the provisions of articles 9 to 11 of L. 3556/2007 as of 31.12.2021, Hellenic Corporation of Assets and Participations S.A.
(HCAP S.A.) holds 23.80% of the shares and voting, the Hellenic Republic Asset Development Fund (HRADF) holds 10.32%
of the shares and voting rights, Selath Holdings S.à r.l. holds 10.0% of the shares and voting rights and the total holdings of
“Helikon Long Short Equity Fund Master ICAV” of PPC’s voting rights (i.e. the total of voting rights attached to shares and
voting rights through financial instruments) amounts to 6.48%. The relevant information with the number of shares and voting
rights held by people with significant shareholdings has been obtained from the share register maintained by the Company,
which is updated by Axialine of the Athens Stock Exchange, as well as from the disclosures that have been received by law
(MAR) to the Company on behalf of its shareholders.
On 8 April 2014, the Greek Joint Ministerial Committee for Restructurings and Privatizations decided the transfer, without consideration, of 39,440,000 PPC
ordinary shares with voting rights (corresponding to 17% of the existing share capital of PPC S.A) by the Hellenic Republic to the HRADF, pursuant to the
provisions of L. 3986/2011. On 09.04.2014, the transfer of said shares by the Hellenic Republic to HRADF was effected, following execution of an over-the-counter
transaction and was announced on April 11, 2014. A transfer of 79,165,114 PPC shares (namely 34.123%) by the Hellenic Republic to HCAP (in which the
Hellenic Republic holds 100% of the shares and voting rights) was completed on March 20, 2018, by law and without consideration, according to par. 20, article
380 of L. 4512/2018, as par. 1 of article 197 of L. 4389/2016 was amended. .On 16-11-2021 the share capital increase of the Company was completed with the
elimination of the existing shareholders’ pre-emptive rights, as a result of which the share of HCAP and HRADF was limited to 23.8% and 10.3% respectively and
finally the indirect participation of the Hellenic Republic ammounted to 34.1%. With respect to the participation of HCAP, following a relevant over-the-counter
transaction on 2.3.2022, the transfer by law, without consideration and exempt from any tax fee and / or right of third parties of the total participation of HRADF in
PPC share capital (corresponding to 10.32%), from HRADF to HCAP was completed according to article 147 of L. 4876/2021. Following the above, the direct
participation of HCAP in PPC amounts to 34.12% with the corresponding voting rights, while HRADF no longer participates in PPC’s share capital
Shares with special control rights
There are no shares granting special control rights, stricto sensu.
Voting rights restrictions
There are no restrictions on voting rights.
Agreements between Company’s shareholders
The Company has no knowledge of agreements existing between its shareholders.
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Regulations on appointing and replacing members of the Board of Directors
According to article 9 of the Company’s Articles of Incorporation, as in force until its amendment by the Extraordinary General
Meeting of shareholders on 17-03-2022:
The Board of Directors consists of:
a. Nine (9) members, including the CEO, elected by the General Meeting of shareholders of the Company, based on the
Company’s Suitability Policy, as in force and posted on the Company’s website, which includes the Conflict of Interest
Policy and rules for safeguarding diversity on the Board of Directors in terms of gender, age, representation of
shareholders and educational and professional background. The Board of Directors elects from among the said
members its Chairman and Vice Chairman, pursuant to article 14 of the Articles of Incorporation.
b. Two (2) members representing the employees of the Company. These members are elected by direct, general ballot
and by means of the proportional representation system, within a time period of two (2) months after the relevant
notification to the most representative trade union (ΑSOP). The election of the representatives of the employees to the
Board of Directors is conducted by an election committee appointed by the most representative trade union of the
Company, in which at least one representative from the remaining trade unions of the Company participates. The
procedure of the said election, the appointment of the local election committees, the time and the details of the polling,
as well as the counting of the votes and the announcement of the results thereof, are the duty of the said committee,
which shall be presided over by a judicial functionary pursuant to the provision of article 11 of L. 1264/1982 concerning
“Democratization of the Trade-union Movement – The Rights of the Unions” (Official Gazette, volume Α, issue no 79).
The same procedure shall also apply to the appointment of the substitute members in replacement of the members of
the Board, who are elected in accordance with the procedure set forth in paragraph herein. In case the substitute
member resigns or leaves his office vacant, for any reason whatsoever, his position shall be occupied by the substitute
member who follows next in order.
In the event of non-election or non-prompt filling of any vacancy or non-substitution of the members of the Board of Directors,
for any reason whatsoever, this shall not impede the constitution and functioning of the Board of Directors without these
members, provided that the number of the remaining members is not less than six (6).
The article 9 of the Articles of Incorporation was amended by a decision of the Extraordinary General Meeting of Shareholders
on 17-03-2022 as follows:
The Board of Directors shall consist of eleven (11) members, including the CEO, elected by the General Meeting of the
Shareholders of the Company, based on the Company’s Suitability Policy, as in force and posted on the company’s website,
which includes the Conflict of Interest Policy and the rules for safeguarding diversity on the Board of Directors in terms of
gender, age, representation of shareholders, and educational and professional background. The Board of Directors shall elect
from among the said members its Chairman and Vice Chairman, pursuant to article 14 of the Articles of Incorporation. Of the
above members, one (1) Non-Executive Member of the Board of Directors represents the employees of the company. This
member is elected by the General Meeting of Shareholders, from a list of proposed candidates submitted to the Nomination,
Remuneration and Recruitment Committee by ASOP, at least two (2) months before the expiry of the Term of office of the
previous member in any way whatsoever, in order to be evaluated and elected by the General Meeting of Shareholders as
per the above.
At the time of drawing up of this Statement, the decision to amend Article 9 of the Articles of Incorporation has been sent for
submission to the General Electronic Commercial Registry (GECR or G.E.M.I.). and the issuing of the relevant approval act is
pending.
Duties of the Board of Directors with regard to the issuance of new or the purchase of own shares.
According to par.2 article 6 items a) and b) of the Company’s Articles of Incorporation, for a period not exceeding five years
for each renewal granted, the General Meeting upon its resolution, may renew the relevant power granted to the Board of
Directors, so that the Board of Directors by its decision, taken in accordance with the increased majority of article 24, L.
4548/2018 as applicable, may a) increase the share capital through the issuance of new shares. The amount of the increase
may not exceed triple the share capital, which shall have been paid up on the date of the decision-making by the General
Meeting on the renewal of the relevant power of the Board of Directors and b) issue bonded loan converted into shares by its
decision or otherwise by resolution of the General Meeting, taken in accordance with the
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simple quorum and majority requirements, for an amount that cannot be more than triple the share capital, which shall have
been paid up on the date of decision-making by the General Meeting on the renewal of the relevant power of the Board of
Directors. In this case, the provisions of article 24 L. 4548/2018, as currently in force, shall apply. It is noted that the provisions
of par. 2 of article 6 of the Articles of Incorporation of PPC as mentioned above were applied to the PPC’s latest share capital
increase in 2021, pursuant to the decisions of the Board of Directors held on October 29, 2021 and on November 11, 2021,
issued based on the relevant decision of the Shareholders’ Extraordinary General Meeting held on October 19, 2021.
The provisions of articles 49 to 51 of L. 4548/2018, as amended and currently in force, provide for the Company’s right to
purchase own shares, under the responsibility of the Board of Directors, following approval by the General Meeting of
Shareholders and pursuant to the requirements specified in the above articles.
There is no special provision in the Company’s Articles of Incorporation, concerning the competence of the Board of Directors
or the General Meeting for the purchase of own shares.
Significant agreements that become effective, are amended or are terminated in the event of change in control
A significant part of PPC loan agreements provide that in case the Hellenic Republic’s participation in the share capital of the
Company falls below 34%, or in case the Hellenic Republic ceases to control the Company in any way whatsoever, this may
lead to Mandatory Prepayment or may constitute an Event of Default of these loans.
In addition, any change in PPC shareholder structure, which may lead to a change in control over the Company, gives rise to
an “Accelerated Put/Call Event” according to the Shareholders Agreement between PPC S.A. and TERNA ENERGY relating
to WASTE SYCLO S.A. This event entitles the non-defaulting party to exercise his right whether to purchase all the shares of
the defaulting shareholder or to proceed to the disposal of its shares to the defaulting party, based on the procedure set forth
in the Shareholders Agreement. As of the date of drawing up of this Statement, there has been no change in the above
agreement as a result of the change in control of PPC S.A.
With regard to the shareholders’ agreement with ALPIQ, based on which the subsidiary company under the trade name PPC
Bulgaria was established in Bulgaria, in the event of any change in the shareholder structure of one out of the two shareholders,
which leads in a change of control over the company, the other shareholder may exercise his right to sell his shares to the first
shareholder, within a period of 30 working days, pursuant to the procedure provided for in the shareholders’ agreement. As of
the date of drawing up of this Statement, there has been no change in the above, as a result of the change in control of PPC
S.A.
Agreements with members of the Board of Directors or Company Personnel
Pursuant to the Company's Remuneration Policy approved by the Extraordinary General Meeting of Shareholders held on 4-
06-2021, for the period 2020-2025, an additional incentive shall be provided to reward the CEO, Deputy CEOs, Chief Officers,
and the Directors of PPC and PPC Renewables for their contribution to the achievement of the medium-term goals of the
Group, in the form of four (4) cycles of Stock Awards, which is governed by the provisions of article 114 of L.4548/2018 in
conjunction with the article 49 of the same law. The Company will implement this program through the sale of its own shares.
In detail, the terms of the Program in Annex II “Stock Awards Plan” can be found in the Company’s Remuneration Policy
(https://www.dei.gr/media/ioyjbqmn/remuneration-policy-2021.pdf).
On 22.8.2019, the Company signed a Mandate Contract with the current Chairman and CEO, Mr. Georgios Stassis. Moreover,
the Company has signed Contracts for the provision of Services for a three-year period with the Executive Members of the
Board of Directors and at the same time Deputy CEOs, Mr. A. Paterakis and Mr. G. Karakousis as of 20.1.2020 and 27.02.2020
respectively, pursuant to the provisions of article 4 of L. 4643/2019. Moreover, the Company has signed a Contract for the
provision of Services for a three-year period with the Deputy CEO (and non-member of the BoD), Mr. I. Kopanakis, on
20.01.2020, pursuant to the aforementioned provisions. Finally, within 2020, PPC, in line with the provisions of L. 4643/2019,
proceeded to the filling up of vacant statutory posts of Chief Officers, Directors, Assistant Directors and Heads of Unit level,
through public call, with fixed-term contracts for a period of up to three years, which may be renewed only once. Τhe employees
of the Company and nominees outside the Company were entitled to participate in the said procedure.
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VI. Composition and Functioning of the Board of Directors
A. Board of Directors
1) Composition and functioning of the BoD – term of office of each member
Composition and Term of Office of the BoD
The composition and the term of office of the BoD members are determined in article 9 of the Company’s Articles of
Incorporation. The composition of the BoD for the fiscal year 2021 is analysed in section V “Regulations on appointing and
replacing members of the Board of Directors” in this Statement.
The composition of the BoD upon the amendment of article 9 of the Articles of Incorporation, which was approved by the
Shareholders’ Extraordinary General Meeting held on 17-03-2022, which has been sent for submission at G.E.M.I, during the
drawing up of this Statement and for which the issuing of the relevant approval act is pending, contains the following:
In accordance with the article 9 of the Articles of Incorporation, the Board of Directors shall consist of eleven (11) members
divided into executive and non-executive members ,with a three-year term of office, at least five (5) of whom shall be
independent non-executive members. In order to ensure continuity in the administration of the corporate affairs and the
representation of the company, the term of office of each member may be extended ipso jure until the first Ordinary General
Meeting to be held after the expiration of its term.
The members of the Board of Directors may in any case be re-elected and may at any time be revoked by the General Meeting
of the Shareholders.
The participation of independent or/and non-executive members to the Board of Directors shall not exceed three consecutive
terms, namely nine (9) years in total.
The number of the non-executive members of the Board of Directors, linked by any type of employment relation to the company
or to any of its associated companies, cannot exceed a maximum of three (3) out of the total number of its members.
The Board of Directors shall consist of eleven (11) members, including the CEO, elected by the General Meeting of the
Shareholders of the Company, based on the Company’s Suitability Policy, as in force (the latest amendment of the Suitability
Policy was approved by the Extraordinary General Meeting of Shareholders on 17-03-2022) and posted on the company’s
website, which includes the Conflict of Interest Policy and the rules for safeguarding diversity on the Board of Directors in
terms of gender, age, representation of shareholders, and educational and professional background. The Board of Directors
shall elect from among the said members its Chairman and Vice Chairman, pursuant to article 14 of the Articles of
Incorporation. Of the above members, one (1) Non-Executive Member of the Board of Directors shall represent the employees
of the Company. This member shall be elected by the General Meeting of Shareholders, from a list of proposed candidates
submitted to the Nomination, Remuneration and Recruitment Committee by ASOP, at least two (2) months before the expiry
of the Term of office of the previous member in any way whatsoever, in order to be evaluated and elected by the General
Meeting of Shareholders as per the above.
In the event of non-election or non-prompt filling of any vacancy or non-substitution of the members of the Board of Directors,
for any reason whatsoever, this shall not impede the constitution and functioning of the Board of Directors without these
members, provided that the remaining members is not less than six (6).
In the event that for any reason whatsoever there is a vacancy in the office of the CEO, or the latter is absent or unable
temporarily to perform his/her duties, the Chairman of the Board of Directors shall temporarily act as CEO; unless otherwise
specified by the Board of Directors.
In the event that for any reason whatsoever there is a vacancy in the office of the Chairman of the Board of Directors, or the
latter is absent or temporarily unable to perform his/her duties, the Vice Chairman of the Board, appointed pursuant to par.1
article 14 of the Articles of Incorporation, shall temporarily act as Chairman. If the posts of the Chairman of the Board of
Directors and the CEO coincide to the same person and for any reason whatsoever there is a vacancy in the office, or he/she
is absent or temporarily unable to perform his/her duties, an executive member from among the members of the Board of
Directors, to be appointed or already appointed by the Board of Directors, shall temporarily act as CEO. In such cases, the
Board of Directors shall convene the General Meeting of the shareholders as soon as possible to elect the new CEO.
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For the selection of the candidate members on the Board of Directors, upon decision of the Board of Directors, the company
has established a Nominations, Remuneration and Recruitment Committee consisting of at least three (3) Board members,
independent in their majority. The Nominations, Remuneration and Recruitment Committee on the one hand identifies and
proposes to the Board of Directors, and through it to the General Meeting, persons suitable for membership to the Board of
Directors, based on the procedure provided for in the Company’s Internal Rules of Operation and pursuant to the Company’s
Suitability Policy, and on the other hand examines any impediments and incompatibilities, as well as the criteria of
independence of candidates for membership on the Board of Directors (especially in the case of appointment of independent
members), pursuant to L.4706/2020 and L.4548/2018, as in force, for candidates proposed by the Nominations, Remuneration
and Recruitment Committee itself or by the shareholders.
The Board of Directors posts on the Company's website twenty (20) days before the meeting’s date, regarding the election of
the General Meeting nominees for the acquisition of the BoD membership, the detailed CVs and rationale of the nomination
of each member.
The Extraordinary General Meeting of the Shareholders held on 16-12-2021 decided the election of Ms. Maria Psyllaki
(appointed as an Independent BoD Member) to replace Mr. Georgios Venieris due to the end of his term of office as a BoD
member and the re-election of Mr. Georgios Karakousis, also due to the end of his term of office as BoD member.
The new Board of Directors consists of eleven (11) members, which is divided into nine (9) men and two (2) women, in full
compliance and alignment with the provisions of the new L. 4706/2020, regarding suitability, diversity and mostly adequate
gender representation in the Board of Directors, was constituted on December 21st, 2021 as follows:
Member
BoD Position
Beginning of term of
office
Ending of term
of office
Georgios Stassis
Chairman of the BoD &
CEO, Executive Member
Term of office starting
on: 22.08.2019
Τerm of office
ending on:
21.08.2022
Pyrros
Papadimitriou
Vice Chairman of the BoD, Non-
Executive Member
Term of office starting
on: 22.08.2019
Term of office
ending on:
21.08.2022
Georgios
Karakousis
Deputy CEO, Executive Member
Term of office starting
on: 19.11.2019
Term of office
ending on:
16.12.2021
Alexandros
Paterakis
Deputy CEO, Executive Member
Term of office starting
on: 22.8.2019
Term of office
ending on:
21.8.2022
Maria Psylaki*
Independent, Non-Executive
Member
Term of office starting
on: 17.12.2021
Term of office
ending on:
16.12.2024
Despoina Doxaki
Independent,
Non-Executive Member
Term of office starting
on: 27.06.2019
Term of office
ending on:
26.06.2022
Stefanos
Theodoridis
Independent, Non-Executive
Member
Term of office starting
on: 22.08.2019
Term of office
ending on:
21.08.2022
Stefanos
Kardamakis
Independent, Non-Executive
Member
Term of office starting
on: 22.08.2019
Term of office
ending on:
21.08.2022
82
Member
BoD Position
Beginning of term of
office
Ending of term
of office
Michael
Panagiotakis
Independent, Non-Executive
Member
Term of office starting
on: 19.05.2020
Term of office
ending on:
21.08.2022
Pantelis
Karalaftheris
Non-Executive Member,
Representative of Employees
Term of office starting
on: 07.06.2019
Term of office
ending on:
06.06.2022
Nikolaos
Fotopoulos
Non- Executive Member,
Representative of Employees
Term of office starting
on: 07.06.2019
Term of office
ending on:
06.06.2022
2. Detailed CVs of the members of the Board of Directors and Directors of the company
The brief CVs of the Company’s BoD members are as follows:
Stassis Georgios, Chairman & CEO, Executive Member
Mr. Stassis has more than 14 years of experience in the energy market. He has held important positions in various
organizations and associations within the energy sector in Greece and the southeast Europe, and within all parts of the
electricity utility value chain (generation, distribution, supply). He previously worked for the Italian energy group ENEL SpA,
as President & CEO of Enel Romania SrL., the largest vertically integrated energy company in Romania, and before that as
Head of Green Power for Eastern Europe and Middle East. Mr. Stassis holds a degree in Civil Engineering and a Master’s
degree in Management in Construction and Structural Design from Kingston University (UK). Moreover, he has attended
Executive Courses at Harvard Business School (US) and at Elis Academy (Italy).
Papadimitriou Pyrros, Vice Chairman, Independent - Non Executive Member
Pyrros Papadimitriou is an economist, lawyer and associate professor in International Economic Relations at the University of
Peloponnese. He holds a Degree in Political Science & Public Administration from the University of Athens (1985), a Law
Degree from Athens Law School (1989), a Master Degree in Economics from Sussex University (1987), a Master’s degree in
Economics (1988) and a Ph.D. in Economics (1992) both from Kent University at the UK. In the past he has worked as a
financial analyst at Gerald & National Inter Commodities in London (1989-1990) and continued as a researcher at the
Foundation for Economic & Industrial Research in Athens (1994-1995), as a Manager in the Sectoral Research & Analysis
Department of ALPHA Bank (1995-1996), as a Consultant to the European Parliament (1996-1998) and as a Director of
Consulting Services at ICAP S.Α. (1999-2000). In 1996, Pyrros founded HEADWAY Economic Consultants Ltd and still
remains the main shareholder of the Company. The period from 2006 to 2015 Pyrros cooperated with Four Assist Development
Consulting Ltd, which provides consulting services in the field of Public Financial Management and Economic Development
in developing countries. In the period 2007-2009, Pyrros, as a Chairman and CEO, ran the privatization project of Olympic
Airlines, Olympic Airways – Services and Olympic Aviation. From August 2012 to June 2014, he was appointed Coordinator
of the Privatization of the Greek Regional Airports, a project that has also been concluded successfully with the acquisition of
the airports from Fraport AG. During the last years, Pyrros, apart from his involvement with Headway Economic Consultants
Ltd, implements various consulting projects for governments in the developing word in the field of public financial management
and employment.
83
Karakousis George, Executive member
George Karakousis is a commercial executive with significant experience in building innovative products and services with a
customer-first approach. He has successfully designed and implemented the commercial strategy for large corporations in
Greece and the UK and has led significant commercial transformation projects. Over the past fifteen years he has held
commercial roles of increasing responsibility in companies such as Forthnet and Wind Hellas, successfully introducing new
products and services. In the UK he was responsible for Talk Talk’s product portfolio re-design, while in British Telecoms (BT)
he was at the helm of the biggest service transformation project for over nine million customers. In addition, he has undertaken
consulting work on product and proposition design for technology start-ups. He holds an Electrical & Computer Engineering
degree from the National Technical University of Athens, a master’s degree (MSc) from Imperial College London and an MBA
from ALBA Graduate Business School.
Paterakis Alexander, Executive member
Mr. Alexandros Paterakis holds a BSc in Computer Engineering and Mathematics from the University of La Verne. Alexander
Paterakis began his career as a Network Engineer and subsequently held a series of senior IT positions such as Head of
Consulting Division in MicroAge, Management Consultant in Arthur Andersen (now Accenture) in the UK as well as in Greece.
In 2003 he served as Information Technology Director at Tellas, while in 2008 he joined Vodafone where he was promoted to
CIO. He then moved in Etihad Etisalat (Mobily), where he was appointed as a Chairman of Infotech Mobility India Pvt Ltd and
completed his career as a CIO in Saudi Arabia actively promoting the ICT transformation. Since 2016 he provides business
consulting services focusing on the digital strategy field. Since 2018 he holds the position of CIO in AXIATA Celcom, a
telecommunication provider company in Malaysia.
Psillaki Maria, Independent - Non Executive Member
Maria Psillaki is Professor at the Department of Economics of the University of Piraeus. She studied at the University of Nice
Sophia Antipolis, in France where she received her Master and PhD with the highest honors. For her PhD, she received a
scholarship from the French Ministry of Education in 1997 in finance. She has held visiting research positions in London
(Birckbeck College, University of London) as Visiting Researcher (Post-Doctoral Research Fellow), funded by the CEPR
(Centre for Economic Policy Research) and ERSC (Economic and Social Research Council) and in Chicago as Visitor
Researcher at the Graduate Booth School of Business, University of Chicago. She has lectured at various universities abroad
in both undergraduate and postgraduate programs. She has also held visiting faculty positions as Assistant Professor of
Finance at Rutgers University in New Jersey (USA), in the Department of Business Administration, Finance and Investment
Portfolio Management. Also, she lectured as Visitor Assistant Professor at the University of Cyprus, in the Department of
Public and Business Administration, Financial and Organizational Behavior .
Before joining the University of Piraeus in 2009, she was Associate Professor at the University of Nice-Sophia Antipolis in
France at the Economics Department from 2001 until August 2008. Finally, since 2009 she is a tutor at the Hellenic Open
University in the “Banking” postgraduate program. She has participated in various European Research Programs. She has
published articles in international scientific journals such as the Journal of Small Business Management, the European Journal
of Operational Research, the Journal of Business and Financial Economics, the Journal of Banking and Finance, the Small
Business Economics, the Applied Financial Economics, the Journal of Productivity Analysis. She serves as referee in a number
of reputed journals such as the Journal of Banking and Finance, the Small Business Economics, the European Journal of
Operational Research. From 2009 to 2012 she was Vice President of the Hellenic Finance and Accounting Association
(HFAA). Her scientific and research interests focus on the financial sector.
Doxaki Despina, Independent - Non Executive Member
Despina Doxaki was born in 1968. She is a graduate of the Law School of the National and KapodistrianUniversity of Athens,
with a postgraduate degree in European Law from the Institute for European Studies in Brussels. She has an accumulated
professional experience over 26 years in the area of international cross border transactions mainly in cooperation with
commercial, investment, institutional and development banks and specializes (1) in the structure and trading of national and
international complex financial agreements such as structured finance (2) project finance in all sectors of development such
as energy infrastructure projects, real estate, tourism, hospitals etc. through ΣΔΙΤ or/and Concessions, (3) corporate finance
and corporate transformations (public documents, capital
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market transactions) (4) corporate lending of all forms, debt restructuring and refinancing etc. During her career she has
worked at the European Commission, KPMG, Ellactor (CIS), Alpha Bank SA, while for the last fifteen (15) years she has
worked at Kyriakidis- Georgopoulos Law firm, in Brussels at the English Law firm Stabrook & Hooper (Mc Dermont & Ellis)
and Chadbourne/NRF, Shearman and Milbank law firms. Since 2018, she has been the Head of Legal Service at the Financial
Stability Fund. She has work experience in London, Brussels and Athens and speaks Greek, English and French.
Theodoridis Stephanos, Independent - Non Executive Member
Mr. Stefanos Theodoridis has served for more than 35 years as a member of Senior Management of business groups in
Greece and abroad, of which 25 years as CEO. From 1989 to 2006, Mr. Theodoridis was the CEO at DIAGEO S.A., initially
as CEO for Greece and subsequently for Southern & Eastern Europe. In this capacity, he was responsible for 18 countries
and was also a member of the European Executive Committee of the Company. From 2006 to 2011, Mr. Theodoridis was
CEO of HYATT/REGENCY SA, a leading Company in the Tourism & Leisure sector. Since 2012 he holds the position of the
CEO of TEMES S.A., a leading investor, developer and operator and one of the most important companies in the high-end
tourism destination and real estate sector in Greece. Alongside with his current position, he serves as Vice Chairman of
PREZIOSI Group in Greece & Turkey, member of the BoD and the Executive Committee of IOBE, as well as the General
Council of SEV.
Kardamakis Stefanos, Independent - Non Executive Member
Mr. Stefanos Kardamakis was born in Athens in 1967. He graduated from the Department of Mechanical Engineering of the
National Technical University of Athens in 1991. He obtained an MSc in Shipping, Trade & Finance from the City University,
Cass Business School in London. He started his professional career in 1993 from the technical department of Adelphia
Shipping Enterprises, In 1994 he was hired by the Dutch Bank ABN AMRO Bank as a Relationship Officer in the Maritime
Finance Department of the Bank where he was promoted to a Vice President of the Shipping Unit. In 2004 he assumed the
position of the Head of Shipping in Egnatia Bank, in the field of financing. During his 14 years’ career in the banking sector,
he dealt with the evaluation of new credit proposals, corporate finance transactions and treasury products, structuring and
selling of syndicated facilities for large Greek shipping companies. Moreover, he focused on the optimization of internal
procedures and the introduction of new processes ensuring the smooth operation, monitoring and improvement of the credit
and operational risks, as well as the restructuring of non-performing loans. In 2008, he assumed the position of the CFO of
Conbulk Shipping S.A. and since 2019 he also serves as COO of the Company, being responsible, except for the financial
management, for all operational, technical and procurement matters.
Panagiotakis Michael (Michalis), Independent - Non Executive Member
Mr. Michalis Panagiotakis was born in 1973 in Athens. He holds a degree in Economics and a Master in Business
Administration from the University of Hull in the UK. He has more than 20 years of professional experience in C-level
managerial positions, coming from service into both the food industry but also the Public Governance sector and acted as
Chief Officer in STASY SA, EOMMEX SA and Tram SA respectively. During the last six years, he held the position of Deputy
CEO for five years while in the last year he held the position of CEO in Dodoni SA, one of the biggest food industries in Greece.
Moreοver, Mr. Panagiotakis has also been a member of the investment group Lime Capital Partners and SI Foods during the
last 6 years. During the period 2000-2007, he served as Chief Officer in the Organic Products and Olive Oil Blauel SA
Company. As of 2005 to date, he has been active in the Tourism industry, and since 2012 he established THE DIVINE VILLAS
Ltd., a Company whose main specialty is the management of luxury tourist accommodation across the nation.
Karaleftheris Pantelis, Non-Executive Member
Mr. Pantelis Karaleftheris was born in 1962 in Ardassa of Ptolemaida. He is qualified electrical foreman and works for PPC
SA Mines. From 1984 to 1987 he worked as an electrical technician at the project construction companies PPC ASPATE –
ALSTHOM and BIOKAT. In 1987 he was hired at the Main Field Mine of PPC as electrician of fixed equipment maintenance
and failure restoration. He has served as President of the Coordination Body of Students of the Democritos and the
Professional and Technical School of Thessaloniki (KETE). He is engaged in folklore and has made many research trips to
Central Asia, the Pontus and the Black Sea. He has been a founding member of the 1st administration of Pontian Greek Youth
and member of the Board of Directors of the International Confederation of Pontian Greeks.
85
Since 1994 he is a senior member of the PPC trade union and has participated in many Pan-European and World Conferences
on carbon, energy, and the Environment. For six years he has served as General Secretary of the SPARTAKOS trade union,
while he was Deputy Secretary of GENOP/PPC for six years (2008-2013). Later he was elected representative of the
employees on the Board of Directors of PPC S.A. He has graduated from the Academy of KANEP of the GGCL and trains
trainers in lifelong learning. He is married and has two children.
Fotopoulos Nikos, Non-Executive Member
Mr. Nikos Fotopoulos was born in Agnata, Ilia in 1962. He is an Electrical Technician (Technical School of PPC). From the
age of 16 he has been involved in politics and community affairs. For 10 years he served as Secretary of the Energy Domain
Committee of the Socialist Party (PASOK). In 1998 he was elected to the Board of Directors of the Association of PPC's
Technicians and served as Press Officer. From 2007 until July 2013, he was President of the General Federation of Employees
at PPC-Electricity Sector (GENOP/DEI) and member of the Executive Committee of EMCF. Since 2010 he is a member of the
Administration of the Greek General Confederation of Labour (GSEE) and since April 2013 he is a member of the Executive
Committee.
The CVs of the Company’s Executive members are provided in the Appendices part of this Statement.
The composition of the Board of Directors is fully compliant with the Regulations of 4706/2020 of Corporate Governance.
The composition of the Board of Directors reflects the knowledge, skills and experience required to exercise its
responsibilities.
In particular, as follows from the above, the in force Board of Directors has a sufficient number of members given the size of
the Company, the complexity of its activities and its business model. The Company’s Board of Directors consists of an inclusive
group of members with representation from different fields of activity both in the domestic and international market, which
covers a wide age range that combines dynamics and experience (indicatively between 43 and 63 years), as well as
participation of two (2) capable representatives of the female sex. All members of the Board of Directors are distinguished for
their significant professional experience, their education and the majority of them has many years of experience in the energy
sector. All members of the Board of Directors have experience in issues of strategic and business planning, corporate risk
identification and management, new technologies, issues regarding the sustainable development and have a deep
understanding of Corporate Governance Principles and issues governing the operation and obligations of a listed company,
as well as sufficient knowledge on financial matters. Finally, all the Board of Directors members have unquestionably
professional and personal ethics, integrity and independence, which are considered prerequisites for their election and for
maintaining their capacity as members of the Board of Directors As follows from the above, the current composition of the
Board of Directors is the most adequate for the management and supervision of its corporate affairs and for ensuring the best
possible attainment of the Company’s objectives.
Board of Directors operation
Regarding the operation of the BoD the Company’s Articles of Incorporation foresees the following:
Competencies of the Board of Directors
The Board of Directors is the supreme governing body of the company which shall formulate primarily its development strategy
and Policy, as well as supervise and exercise control over the management of its property. The Board of Directors shall
approve, upon recommendation of the CEO: a) the Strategic Plan, which determines the strategic goals for the attainment of
the Company’s objectives, b) the Business Plan of the Company of a duration of three (3) to five (5) years, which specifies the
goals of the Strategic Plan for each year of its duration, c) the methods for the implementation of the Strategic Plan and the
Business Plan for each year of their duration. The Board of Directors shall also follow up the implementation of both the
Strategic and the Business Plan.
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The Board of Directors shall represent the Company and shall be vested with unlimited authority to decide on any act and to
exercise full power concerning the management of the company, the management of its property and in general the fulfillment
of its object, with the exception of those issues which either by law or by the Articles of Incorporation, expressly fall within the
jurisdiction of the General Meeting.
The Board of Directors shall, upon recommendation of the CEO, approve the annual budget of the company, prepare, approve
and submit to the General Meeting for approval the annual financial statements of the company and prepare and submit to
the General Meeting the annual report. Moreover, the Board of Directors, upon recommendation of the Remuneration and
Recruitment Committee, approves the recruitment policy of the Company, pursuant to the relevant legislation as applicable
each time.
The Board of Directors shall upon the recommendation of the CEO decide on: a) the necessity of establishing positions of
Deputy CEOs, as well as on their number and competencies thereof, b) the basic organization of the company divided into
Divisions, which constitute the highest administrative level of its organizational structure, c) the establishment of positions of
Chief Officers and their competencies.
The Board of Directors may, upon recommendation of the CEO, delegate part of its administration and representation
competencies, except for those which, pursuant to the Law and its Articles of Incorporation require collective action or fall
within the exclusive jurisdiction of the CEO in accordance with Article 15 of the Articles of Incorporation, as well as the
administration or supervision of the affairs or the representation of the company to the Chairman, to the ΨΕΟ, to the Deputy
CEOs, to one or more of the Board Members, to the Executive Committee, to the Chief Officers, to the Directors or to
employees of the company.
The aforesaid persons to whom the competencies described above are delegated and who do not have the capacity of Board
Member carry the same responsibility towards the Company as the members of the Board of Directors, pursuant to article 102
of L. 4548/2018 as applicable and to article 12 of the Company’s Articles of Incorporation.
Composition and Functioning of the Board of Directors
The Board of Directors shall meet at the seat of the Company and/or outside its seat at the facilities of PPC at Kozani,
Megalopoli and Aliveri, upon the call of the Chairman or his substitute, on such day and hour as determined by him, whenever
required following the needs of the Company.
The Board of Directors may lawfully meet by way of teleconference, with some or all Board members, upon invitation to the
Board members, which shall include all the necessary information and technical instructions with respect to their participation
in the meeting. In any case, any Board member may request the holding of a meeting by way of teleconference if he resides
in a country other than the one where the meeting is being held or if there is any other serious reason, especially illness or
disability.
At the request of two (2) Board Members, the Chairman or his substitute shall be obliged to convene the Board of Directors,
setting the date of the meeting, which shall not be later than seven (7) days from the submission of the relevant request, under
penalty of inadmissibility, which shall also clearly state the proposed items on the agenda to be discussed by the Board of
Directors. In case the Board of Directors is not convened by the Chairman or his substitute within the deadline, the requesting
members shall be allowed to convene themselves the Board of Directors within five (5) days from the expiration of the above
deadline of seven (7) days, by notifying the relevant invitation to the remaining members of the Board of Directors.
The agenda of the meetings shall be determined by the Chairman and its items shall be clearly stated in the invitation sent to
the members of the Board at least two (2) working days prior to the date of the meeting and at least five (5) working days in
the event that the meeting is to be held at a venue other than the Company’s seat, otherwise the decision-making is allowed
only if all the members of the Board of Directors are present or represented at the meeting and none of them objects to the
decision-making.
A quorum of the Board shall be deemed to be present, and the meeting shall be deemed valid if, pursuant to paragraph 6 of
article 11 of the Company’s Articles of Incorporation, more than half of the members is present or represented. In no case,
however, shall the number of members physically present be less than three (3). In determining the number required to form
a quorum, fractions, if any, shall be ignored.
87
The Board of Directors shall make its resolutions by an absolute majority of the members present or represented. In case of
equality in votes, the Chairman’s vote shall prevail.
Each Board Member may, following a written authorization, validly represent only one member thereof. The representation on
the Board of Directors may not be assigned to a person who is not a member of the Board of Directors.
Minutes of the proceedings and resolutions of the Board of Directors shall be kept, in accordance with the Law and especially
with the article 93 of L 4548/2018, as applicable. The minutes shall be signed by the Chairman and the Board Members who
attend the relevant meeting. If one of the members refuses to sign, this shall be indicated in the minutes accordingly.
The copies of and the excerpts from the minutes of the Board of Directors shall be signed by the Chairman or by a person
designated by the Board of Directors to this end, without any other validation being necessary.
The General Counsel may attend the meetings of the Board of Directors without having the right to vote, unless otherwise
decided by the Board of Directors.
The drawing up and the signing of minutes by all the members of the Board of Directors or their representatives is equal to a
resolution of the Board of Directors, even if no previous meeting has proceeded. The above section shall also apply if all Board
members or their representatives agree to record their majority decision in the minutes, without holding a meeting. The relevant
minutes shall be signed by all members and shall be registered in the minute’s book in accordance with article 93 of law
4548/2018.
In the case of the previous paragraph, the signatures of the Board Members or their representatives may be substituted with
the exchange of messages via email or other electronic communication media, e.g., by means of a qualified digital signature.
Liability and duties of the Board Members
Each Board Member shall be liable vis-a-vis the company, in accordance with articles 96 to 102 of L. 4548/2018, for any fault
committed, which exists due to an act or omission during the performance of their duties, which constitute violation of their
duties, in accordance with the Law and the company’s Articles of Incorporation, as applicable. In particular, Board members
and third parties to whom duties may have been assigned by the Board of Directors, shall be obliged to disclose to the Board
of Directors, promptly and sufficiently, any conflict of interest which may arise during the performance of their duties between
themselves or other persons with whom they have close relations and the company or the companies of its Group, as soon
as they take knowledge thereof. In any case, the aforementioned persons shall be obliged to refrain from any action related
to corporate actions which may give rise to such conflict of interest until the date on which the company will examine the
conflict-of-interest declaration.
The Board Members shall be bound, inter alia, to manage the corporate affairs with a view to promoting corporate interest, to
monitor the execution of the resolutions of the Board of Directors and of the General Meeting, as well as to inform the other
Board Members on any corporate affairs.
The Board Members and any third party to whom the Board of Directors has assigned any of its competencies shall be bound
to keep absolute secrecy with regard to all confidential information in respect of the affairs of the Company coming to their
knowledge in their capacity as Board Members.
The provisions of articles 99 to 101 of L. 4548/2018, which include Regulations concerning transactions with related parties
shall also apply to Chief Officers and Directors of the Company.
The appointment and the dismissal for any reason whatsoever of the Board Members and of the persons empowered to
represent the Company jointly or severally shall be subject to publicity, as stipulated by articles 12 and 13 of L. 4548/2018, as
applicable, together with their identity particulars and in any case as provided for by law each time.
88
Remuneration and Compensation of BoD Members
The Company has established a remuneration policy and draws up a remuneration report, pursuant to articles 110 to 112 of
L. 4548/2018, article 11 of L. 4706/2020, as well as to par.1 par.2 and par.5 of articles 4 of L. 4643/2019 as in force, for the
members of the Board of Directors, the Deputy CEOs, the Chief Officers, the Directors and the Assistant Directors/Head of
Units of the company, following relevant recommendation of the Nominations, Remuneration and Recruitment Committee to
the Board of Directors of the Company to be approved by the General Meeting.
3. Chairman, Vice Chairman of the Board of Directors and the CEO
Chairman of the BoD
The Chairman of the BoD is elected by the Board of Directors. The capacity of the Chairman of the BoD may coincide with
that of the CEO. In this case, the Board of Directors shall mandatorily appoint the Vice-Chairman from among its non-executive
members.
The Chairman of the BoD guides the BoD, contributes to ensuring the efficient flow of information, both within the BoD and
between the BoD and its Committees and is responsible for its effective overall operation. The Chairman of the BoD shall
encourage and promote open and critical discussions and ensure that divergent views can be expressed and discussed in the
decision-making process.
The Chairman of the BoD determines the items on the agenda of the meetings and ensures that issues of strategic importance
are discussed as a matter of priority. The Chairman should also ensure that the BoD makes informed and appropriate decisions
and that the relevant documents and information are received in a timely manner before the meeting.
The Chairman of the BoD should contribute to a clear allocation of duties between the BoD Members and ensure the efficient
flow of information between them, so that the BoD Members in their supervisory function have the opportunity to contribute
constructively to the discussions and to exercise their voting right on a proper basis and in a well-informed manner.
Vice Chairman of the BoD
The Vice Chairman of the Board of Directors is being elected by the BoD. The capacity of the Chairman of the Board of
Directors may coincide with that of the CEO. In this case, the Board of Directors shall mandatorily appoint the Vice-Chairman
from among its non-executive members (Article 14 par. 1 of the Articles of Incorporation). In the event that for any reason
whatsoever there is a vacancy in the office of the Chairman of the Board of Directors, or the latter is absent or temporarily
unable to perform his/her duties, the Vice Chairman of the Board shall temporarily act as Chairman (Article 9 par. 3 par. B of
the Articles of Incorporation).
As a consequence of the above amendment of the Articles of Incorporation with the limitation of the capacity of Vice President
to the replacement of the Chairman (in case of any impediments or absence), the Board of Directors, in its decision no. 86/14-
07-2021, stated that Mr. Pyrros Papadimitriou fulfills the criteria of independence, within the meaning of article 9 of L.
4706/2020. Then the General Meeting of Shareholders on 19-10-2021 confirmed the capacity of Mr. Papadimitriou as an
Independent Member of the Board of Directors.
Chief Executive Officer
The CEO of the company shall be elected by the General Meeting of shareholders for a three-year term of office.
The CEO shall be the highest-ranking executive officer of the company, he/she shall be in charge of all the services thereof,
conduct their activities, decide on the further organization of the company within the scope of the Articles of Incorporation and
the relevant resolutions of the Board of Directors, make the necessary decisions pursuant to the provisions governing the
operation of the company, the approved plans and budgets, the Strategic Plan , the Business Plan and the terms of the
Management Contract he/she has entered into with the company pursuant to Article 16 of the Articles of Incorporation . The
CEO shall represent the company within the limits of his duties subject to the Articles of Incorporation or the resolutions of the
Board of Directors and may authorize or provide power of attorney to other persons, members of the Board or low-ranking or
high-ranking executives of the company, as well as any kind of PPC employees, to represent him/her.
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The CEO shall have the following duties, as well as any other duties, which shall be delegated to him/her upon resolution of
the Board of Directors. He/she shall:
• Submit to the Board of Directors of the Company the proposals and recommendations required for the attainment of
the Company’s objectives, as specified in the Strategic Plan and the Business Plan.
• Make decisions on the awarding of contracts of a value to be determined on each occasion by resolution of the Board
of Directors.
4. Appointment of the non-executive BoD members that are considered to be independent and rationale behind their
argument.
Non Executives and Independent Non Executives Members of the BoD have a purely supervisory and strategic role in contrast
to the Executive Members who are responsible for the implementation of the BoD strategy and have executive responsibilities
regarding the management of the Company.
The independent Non Executives Members of the BoD play a key role in enhancing the effectiveness of controls and balances
within the BoD by improving the oversight of decision-making by the executive management, as well as by ensuring that:
• the interests of all stakeholders, including minority shareholders, are duly taken into account in the discussions and
decision-making of the BoD.
• the unjustified domination of individual BoD Members who represent a specific group or category of stakeholders is
mitigated or compensated for; the decision-making is not dominated by an individual or a small group of members;
• conflicts of interest between, on the one hand, the Company, its business units, other entities that fall within the
accounting scope of consolidation and, on the other hand, external stakeholders, including customers, are subject to
proper management.
A Non-Executive Member of the BoD is considered independent if during his/her appointment and during his/her term of office:
a. does not hold, directly or indirectly, a percentage of voting rights greater than zero-point five percent (0.5%) of the
Company's share capital, and
b. is free from financial, business, family or other dependent relationships, which may influence its decisions and its
independent and objective judgment (hereinafter referred to as "dependent relationships").
A dependent relationship exists in the following cases:
(a) When a member receives any significant remuneration or benefit from the Company, or from an affiliated company, or
participates in a stock options system or any other performance-related remuneration or benefit system, other than
remuneration for his/her participation in the BoD or in its Committees, as well as in the collection of fixed benefits within the
framework of the pension system, including the rescheduled benefits, for his/her previous services in the Company. The criteria
based on which the meaning of significant remuneration or benefit are defined in the Company's remuneration policy.
(b) When the member or person who has close ties with the member maintains or has maintained a business relationship
during the last three (3) financial years prior to his/her appointment with:
(ba) the Company, or
(bb) an affiliated person of the Company, or
(bc) a shareholder who directly or indirectly holds a stake equal to or greater than ten percent (10%) of the Company's share
capital during the last three (3) financial years prior to his/her appointment, or an affiliated company, provided that this
relationship affects or may affect the business activity of either the Company or the person referred to in par. 1 or the person
having close ties with it. Such a relationship exists especially when the person is a significant supplier or a significant customer
of the Company.
(c) When the member or the person who has close ties to the member:
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(ca) has been a member of the BoD of the Company or of an affiliated company thereto for more than nine (9) financial years
in total at the time of its election;
(cb) has been a Senior Executive or entered into an employment or project or service relationship or a salaried mandate
relationship with the Company or with an affiliated company thereto during the last three (3) financial years prior to his/her
appointment,
(cc) is related to the second degree by blood or by marriage, or is a spouse or partner equated with a spouse, of a Board
Member or Senior Manager or shareholder, with a participation percentage equal to or greater than ten percent (10%) of the
Company’s share capital or an affiliated company thereto,
(cd) has been appointed by a specific shareholder of the Company, in accordance with the articles of incorporation, as provided
for in article 79 of L.4548/2018,
(ce) represents shareholders holding directly or indirectly a percentage equal to or greater than five percent (5%) of the voting
rights at the General Meeting during his/her term of office, without any written instructions;
(cf) has carried out a statutory audit to the Company or to an affiliated company thereto, either through a company or by
himself/herself or by an up to second-degree relative by blood or by marriage, or by his/her spouse, during the last three (3)
financial years prior to his/her appointment,
(cg) is an Executive member in another company, in the BoD of which an Executive member of the Company participates as
a non-executive member.
(d) When the member falls under one of the dependent relationships provided for in any other statutory or regulatory texts to
which the Company is subject and which the Company applies, either on an optional or a mandatory basis (for instance,
Articles of Incorporation of the Company, Corporate Governance Code, Rules of Procedure of the Board of Directors).
The Board of Directors takes the necessary measures to ensure compliance with the conditions of independence, as discussed
above. The fulfillment of the conditions of independence is reviewed by the Board of Directors on at least an annual basis. In
case it appears that the conditions have ceased to exist for an independent non-executive member, at any time, the Board of
Directors shall take the appropriate actions to replace him.
5. Number of Meetings of the Board of Directors, participation frequency of each member and subjects with which
the BoD has dealt with.
The total number of meetings of the Board of Directors during 2021 was 30. In particular, the participation frequency of each
member at the BoD meetings is as follows:
Member
BoD Position
Number of BoD meetings the
member participated
Georgios Stassis
BoD Chairman & CEO
30
Pyrros Papadimitriou
Vice Chairman of the BoD
Independent Non-Executive Member
29
Giorgos Karakousis
Deputy CEO
Executive Member
28
Alexandros Paterakis
Deputy CEO
Executive Member
28
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Member
BoD Position
Number of BoD meetings the
member participated
Maria Psillaki*
Independent Non-Executive Member
2
Giorgos Venieris
Independent Non-Executive Member
26
Despoina Doxaki
Independent Non-Executive Member
28
Stefanos Kardamakis
Independent Non-Executive Member
29
Stefanos Theodoridis
Independent Non-Executive Member
20
Michail Panagiotakis
Independent Non-Executive Member
19
Pantelis Karaleftheris
Non-Executive Member/ Representative of
Employees
30
Nikolaos Fotopoulos
Non-Executive Member/ Representative of
Employees
30
*The Extraordinary General Meeting of the Shareholders on 16-12-2021 decided the election of Ms. Maria Psyllaki (appointed
as an Independent BoD Member) for the replacement of Mr. Georgios Venieris due to the end of his term of office as a BoD
member.
The main issues discussed at the BoD meetings during the year 2021 are the following:
• Approval of the Financial Statements.
• Approval of Regulations and Policies by virtue of the new law on Corporate Governance.
• Approval of the Remuneration Policy and Remuneration Report
• Subsidiaries’ issues (new investments, financing, merging, changes in share capital etc.)
• Bond loans (approval of Company's prospectus and related documents, contracts’ amendments etc.)
• Approval of the Audit Plan of the Internal Audit Department
• Supplies issues (tendering procedures, contract documents, appointments etc.)
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• Amendments to the Articles of Incorporation
• Issues related to Human Capital management, recruitment announcements and organizational changes
• HEDNO decision making (secession of the electrical energy distribution channels branch, tender process for the sale of
49% of the company)
• New Investments (installation of new fiber optical network, new network of retail stores)
• Approval of Strategic Plan for 2022-2026
• Approval of share capital increase
• Approval of Budget for 2022
6. Suitability Policy for the members of the Board of Directors of PPC S.A.
The Company has a Suitability Policy of the Board of Directors members, which was drafted according to the guidelines of the
Hellenic Capital Market Commission (Circular no. 60 / 18-09-2020) and includes:
a. the principles concerning the election or replacement of the Board members, as well as the renewal of the term of office
of the existing BoD members
b. the criteria for the evaluation of the individual and collective suitability of the members of the BoD
c. the diversity and adequate gender representation criteria
d. The role of the Nominations, Remuneration and Recruitment Committee
e. The induction training program of the BoD members, and
f. The continuous monitoring and evaluation of the Board’s suitability
The Suitability Policy of the Company was approved upon BoD’s decision No.46/13-05-2021, pursuant to par. 1 article 3 of L.
4706/2020 and presented for approval to the Shareholders’ Extraordinary General Meeting by virtue in accordance with par.
3 article 3 of L. 4706/2020 on June 4, 2021.
Any amendments to the Suitability Policy, especially when they concern changes in the legal framework of Corporate
Governance, are approved by the Board of Directors upon the recommendation of the Chief Officer of the Legal Affairs and &
Corporate Governance Division and with the consent of the Nominations, Remuneration and Recruitment Committee. The
Company proceeded to the first amendment of the Suitability Policy upon BoD’s decision No. 132/26-1-/2021.
Amendments to the Suitability Policy which are material (i.e. amendments introducing derogations or significantly changing its
content, especially regarding the applied general principles and criteria) are submitted to the General Meeting for final
approval. In this context, the Shareholders’ Extraordinary General Meeting on 17-03-2022 approved the second amendment
of the Suitability Policy of the Board of Directors members.
Non-essential amendments, of organizational nature, are approved by the CEO.
The updated version of the Company’s Suitability Policy is posted on the Company’s official website
(https://www.dei.gr/en/ppc-group/ppc/corporate-governance/administrative-structure/ppc-board-of-directors/).
Monitoring the implementation of the Suitability Policy of the Board of Directors
The BoD is responsible for monitoring the implementation of the Suitability Policy and its regular biannual assessment which
is assisted by the Nominations Committee, the Audit Committee and the Legal Affairs and Corporate Governance Division, as
well as by other organizational units of similar scope, such as the Internal Audit Department and the Human Resources &
Organization Division, as may be thought fit.
Training Policy for Board Members
The Company has a Training Policy for Board Members, which was approved by the decision No.80 / 29-06-2021 of the BoD,
through which it adopts a structured and effective education system that meets the needs of the induction program of the new
members and also those of the continuous training of the Board members.
Through the education system, the Company seeks to contribute to the development of the BoD members, to the ensuring of
their suitability, and ultimately to the effective operation of the BoD and its committees.
93
Ways of monitoring individual or collective suitability of the BoD members
The ongoing monitoring of individual or collective suitability of BoD members focuses on whether an individual member or the
members as a whole continue to be suitable, taking into account the individual or collective performance and the respective
situation or event which prompted the (re)assessment, as well as its impact on actual or required suitability.
The ongoing monitoring and assessment of individual and collective performance of BoD members is carried out by the BoD
on the initiative and upon the proposal of the Nominations, Remuneration and Recruitment Committee In the context of the
ongoing monitoring and assessment of (individual and collective) suitability, consideration is taken of the following inter alia:
• the efficiency of the BoD working processes, including the efficiency of the flow of information and of the reporting
lines to the BoD, taking into account information from the Internal Control System and any recommendations
proposed by said function;
• the efficient and prudent management of the Company; among other things, the extent to which the BoDacted with
a view to serving the Company’s interests;
• the ability of the BoD to focus on issues of strategic importance;
• the adequate number of meetings held, the degree of participation, the adequate time commitment and the level of
active participation of BoD members during meetings;
• any change in the composition of the BoD and any weaknesses as to individual and collective suitability, taking into
account the Company’s business model and strategy;
• the performance targets set for the Company and the BoD;
• the independence of mind of BoD members, including the need to avoid a single person or small group of persons
dominating the decision-making process, and compliance by BoD members with the of Conflict of Interest Policy;
• the extent to which the composition of the BoD has met the objectives set out in the Diversity Policy;
• any events that may have a significant impact on the individual or collective suitability of BoD members, including
eventual changes in the Company’s business model, strategies and organization.
Individual Suitability Assessment
In view of the need to elect two (2) members in December 2021, due to the end of their term of office, and the selection of the
members final nominated members, on the basis of sufficient time commitment, adequate knowledge, skills, and experience,
morality and reputation, independence and absence of conflict of interest, the Nomination, Remuneration and Recruitment
Committee conducted the first assessment of Individual Suitability of the candidate members. In particular, for the position of
the Ιndependent BoD member, the fulfillment of requirements of the independence criteria was verified in accordance with
article 9 of L. 4706/2020. Finally, the criteria of diversification and adequate gender representation were taken into
consideration for the selection of the new BoD members.
Moreover, in compliance with par. 4, article 3, of L. 4706/2020, the Nomination, Remuneration and Recruitment Committee
received signed statements from each BoD member stating that no final court decision has been issued within one (1) year
before or as from their election respectively, which acknowledges the candidate’s fault for loss making transactions of a
company (listed or not) with related parties.
Efficiency of the Board of Directors Work
The Nomination, Remuneration and Recruitment Committee, for the year 2021, evaluated and assessed the participation of
each one of the BoD members, in its activities, for the evaluation of agenda items and the decision making process, as highly
significant and positive. The BoD members actively participated in the proposition of the topics arose during the meetings
concerning essential issues, such as the transition of a certain type of energy market to another form (delignification), the
internal restructuring and transformation of the Company, the increase of the Share Capital, the issuance of Bond loans, the
revision of the Business Plan as well as the adoption of a completed set of Regulations and Policies for an effective Corporate
Governance.
94
Corrective measures
If the assessment or reassessment concludes that a person is not suitable to be appointed as a BoD member, said person
should not be appointed. If it is found that one or more suitability criteria no longer apply to an (already appointed) BoD member
for reasons that could not be avoided even with the outmost diligence by said member, the BoD must forthwith terminate and
replace said member. With the exception of the criteria governing the evaluation of reputation, honesty and integrity, if the
assessment or reassessment identifies any shortages regarding a member’s knowledge, skills or experience that can be easily
dealt with, the Company takes appropriate corrective measures to cure such shortages in good time.
In case the assessment or reassessment as described above concludes that the BoD is not collectively suitable, the Company
shall take appropriate corrective measures in a timely manner. In taking corrective measures, account of the particular situation
is taken and specific shortcomings of isolated members or the overall composition of the BoD. Corrective measures may
include, but not limited to, the following: reallocation of competencies among BoD members; replacement of certain members;
recruitment of additional members; possible measures to reduce conflict of interest; training of individual members; or training
for the whole BoD to ensure both the individual and collective suitability of the BoD.
7.External professional obligations of the Board of Directors members.
On the table below the external professional obligations of the BoD members are provided:
Member
Profession
Participation as member of the BoD of other
companies and non-profit Organizations (in any
capacity e.g.
Independent member, Executive member,
Independent Non-Executive member, etc.)
Georgios Stassis
Civil Engineer
Member of the Board of Directors of the following
companies:
- PPC Renewables S.A.
- Arkadikos Ilios Ena S.A.
- Arkadikos Ilios Dio S.A.
- Iliako Velos Ena S.A.
- Amalthia Energiaki S.A.
- SOLARLAB S.A.
- Iliaka Parka Ditikis Makedonias Ena S.A.
- Iliaka Parka Ditikis Makedonias Dio S.A.
- Geothermikos Stochos S.A.
- Geothermikos Stochos Dio sole shareholder
S.A.
- EEN BOIOTIA S.A.
- PPC RENEWABLES- EDF EN GRECE
- PPC RENEWABLES- - ΤΕΡΝΑ ENERGY S.A.
- PPC RENEWABLES - ΡΟΚΑΣ S.A.
- GITANI S.A.
- VORINO PELLIS S.A.
- MYHS SMIXIWTIKOY S.A.
- OROS ENERGIAKI S.A.
- GREENESCO ENERGIAKI S.A.
- SOLAR PARK KILIZA S.A.
95
- SOLAR PARK AG. ONOYFRIOS S.A.
- SOLAR PARK MPAMPO BIGLIES S.A.
- SOLAR PARK LOYKO S.A.
- SOLAR PARK LEYKIVARI S.A.
- VOLTERRA LYKOVOUNI S.A.
- VOLTERRA K-R S.A.
- Eurelectric – the European Union of the
Electricity Industry
Pyrros
Papademetriou
Attorney-at-law,
Economist
REFRAME ASBL (Co-director of a nonprofit research
center in Belgium)
Georgios
Karakousis
Engineer
-
Alexandros
Paterakis
IT Consultant
Strategic consultant, Lumia Capital 2014
Management
Independent Non Executive Member of PPC
RENEWABLES
Georgios Venieris*
Professor at the
Athens University
of Economics and
Business
-
Maria Psylaki
Economist,
Professor at the
Department of
Economics of the
University of
Piraeus
-
Despoina Doxaki
Attorney-at-law,
Head of Legal
Service at the
Financial Stability
Fund
-
Stefanos
Kardamakis
Mechanical
Engineer
Director of the
CONBLUK SHIP
MANAGEMENT
CORPORATION
-
Michael
Panagiotakis
Advisor
- DODONI S.A., CEO, BoD Member
- VILAS IKE SOLE PROPRIETORSHIP
- DALZOTTO LTD -Shareholder
Stefanos
Theodoridis
Senior executive
officer
- VYZANTIO AGROTIKI, CEO
- PANORAMA, Vice-Chairman
- NAVARINO BELLA VISTA, Vice-Chairman
- TEMES, CEO
96
- COSTA NAVARINO NORTH PROPERTIES,
Chairman & CEO
- COSTA NAVARINO SOUTH PROPERTIES,
Chairman & CEO
- IONIAN HOTEL ENTERPRISES S.A., Member
- DUNES GOLF TOURISM ENTERPRISES,
Vice-Chairman
- PREZIOSI GROUP, Vice-Chairman
- AMPELWNES, Chairman
- GREKA ICONS, Chairman
- PHILOMEL PROPERTIES DEVELOPMENT
MANAGEMENT & EXPLOITATION OF REAL
ESTATE, Chairman & CEO
- AZOV PROPERTIES DEVELOPMENT
MANAGEMENT & EXPLOITATION OF REAL
ESTATE, Chairman & CEO
- ARMIDE PROPERTIES DEVELOPMENT
MANAGEMENT & EXPLOITATION OF REAL
ESTATE, Chairman & CEO
- ATHENS BEACH CLUB MANAGEMENT OF
REAL ESTATE, Member
Pantelis
Karaleftheris
PPC S.A.
Employee
Independent Non Executive Member of LIGINITIKI
MELITIS
Nikolaos
Fotopoulos
PPC S.A.
Technician
-
*The Extraordinary General Meeting of Shareholders held on 16-12-2021 decided the election of Ms. Maria Psyllaki (appointed
as an independent BoD member) replacing Mr. Georgios Venieris due to the end of his term of office of service as a BoD
member.
8. Number of shares BoD members hold (par.3 article 18 of, L 4706/2020)
Member
BoD Position
Number of Shares owned at
31.12.2021
Giorgos Stassis
BoD Chairman & CEO
0
Pyrros Papadimitriou
Vice Chairman of the BoD
Non-Executive Member
0
Giorgos Karakousis
Deputy CEO
Executive Member
0
Alexandros Paterakis
Deputy CEO
Executive Member
0
Maria Psillaki
Independent Non-Executive
Member
0
Giorgos Venieris
Independent Non-Executive
Member
0
Despoina Doxaki
Independent Non-Executive
Member
0
Stefanos Kardamakis
Independent Non-Executive
Member
0
Stefanos Theodoridis
Independent Non-Executive
Member
6,656
Michail Panagiotakis
Independent Non-Executive
Member
0
Pantelis Karaleftheris
Non-Executive Member /
Representative of Employees
0
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Nikolaos Fotopoulos
Non-Executive Member /
Representative of Employees
0
*The Extraordinary Shareholders General Meeting held on 16/12/2021 decided the election of Ms. Maria Psyllaki (appointed
as an independent BoD member) to replace Mr. Georgios Venieris due to the end of his term of office as a BoD member.
The number of Company’s shares held by the members of Audit Committee, non-members of the Board of Directors
(third parties)
Member
BoD Position
Number of Shares owned at
31.12.2021
Evangelos Angeletopoulos
Audit Committee member - Non-BoD
member
0
Aimilios Stasinakis
Audit Committee member - Non-BoD
member
0
The number of Company’s shares that Executive members and Directors held are provided later on in the appendices of this
Statement.
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9. Remuneration Policy for the Board of Directors
The Company has established and implements a Remuneration Policy for the Board of Directors members, its Committees &
the Company Executives of the Company (hereinafter “Remuneration Policy” or “Policy”). The purpose of this Policy is to
contribute to the implementation of the Company's business strategy, to serve its long-term interests, as well as to contribute
to its sustainability by establishing an remuneration framework for Executives that a) favors their alignment with short-term
and long-term corporate targets, b) supports team spirit and performance, c) recognizes their efforts and the level of their
contribution to its results, so that the Company continues to create added value for its customers, shareholders, employees
and the Greek economy.
The Remuneration Policy has been established pursuant to the legislation pertaining and applicable to the companies of
Chapter B of L. 3429/2005, on the provisions of articles 110 to 112 of L. 4548/2018 in conjunction with L. 4643/2019 and taking
into account the relevant provisions of L. 4706/2020 and the best practices of the applicable Corporate Governance Codes for
listed companies.
This Policy shall apply to the remuneration of the Members of the Board of Directors and its Committees, the Deputy CEOs,
the Chief Officers, the Directors and Assistant Directors / Heads of Units of the Company.
Regarding the remuneration of the members of the Board of Directors, its Committees and the Senior executives and
executives of the Company, the following shall apply:
- For the Members of the Board of Directors/ PPC SA, the gross amount of 600 Euros, per meeting of the Board of
Directors.
- For the Members of the Committees of the Board of Directors of PPC S.A., (a) gross amount of 13,000 Euros to the
Chairman of the Committee and 11,000 Euros to the Members per year and (b) gross amount of 400 Euros per
meeting of the Committee. The overall amount of the above compensations shall not exceed, for the Chairman and
each Member of the Committee, the gross amount of 23,000 Euros per year.
- For the Executive Members of the Board of Directors who provide their services to the Company, a) gross
remuneration, the amount of which shall be delimited in the Remuneration Policy, precisely defined by the Board of
Directors, included in the annual remuneration report and submitted for approval pursuant to article 110 of
L.4548/2018 to the General Meeting and b) the additional fees under the above paragraphs 6.1 & 6.2 of the Policy.
- For the Non-Executive members of the Board of Directors that belong to the permanent personnel of the Company,
the additional fees set out in paragraphs 6.1 & 6.2 of the Policy, the fixed remuneration for the position they hold,
subject to the provisions on remuneration cap, as well as the additional benefits provided to the permanent
personnel.
- For travel expenses incurred by the Members of the Board of Directors outside the Regional Unit of the place of
their permanent residence in order to attend the meetings of the Board of Directors or its Committees, travel,
accommodation and meal expenses shall be paid, according to the applicable provisions of the Company.
- For the CEO and the Deputy CEOs, who are recruited on three-year fixed-term contracts, gross remuneration
amounting to two hundred thousand euros (€200,000) and one hundred and twenty thousand euros (€ 120,000)
respectively and annually, and provision for a company car and coverage of the respective expenses.
- For the Chief Officers and the Directors of the Company, who are recruited on fixed-term contracts of up to three
years according to article 4 of L. 4643/2019, annual gross remuneration of one hundred thousand euros (€100,000)
and seventy thousand euros (€70.000) respectively, possibility for provision of a company car and coverage of the
respective expenses, as well as all additional benefits applying to the permanent personnel of the Company.
For Assistant Directors/Heads of Units who are:
- recruited through open competition and on three-year fixed-term contracts, pursuant to article 4 of L. 4643/2019, total
gross annual remuneration of fifty-five thousand five hundred seventy-two € (55,572).
- assigned with duties based on an internal procedure, monthly remuneration which includes a) a gross amount based
on the current payroll of the Company, which corresponds to their service, position and family status, b) a special
allowance for executives at the hierarchical level B, the amount of which is determined by the CEO, and the additional
benefits applying to the permanent personnel. The above remuneration is subject to the applicable remuneration cap
as provided for each time by law.
99
Additional incentive schemes shall be provided, in the form of variable gross remuneration, linked to short-term bonus, which
may amount, for 100% target achievement, to 50% max of the fixed remuneration for the CEO, the Deputy CEOs and Chief
Officers and to 30% of the fixed remuneration for the Directors of Departments. The above variable gross remuneration can
be increased by up to 50% in case of overachievement of the targets set.
The above variable gross remuneration shall be paid after the publication of the financial results and under the condition that
the specific targets set for each reference year by the Board of Directors have been achieved.
For the period 2020-2025, an additional incentive shall be provided to reward the executives of PPC and PPC Renewables
for their contribution to the achievement of the medium-term goals of the Group, in the form of four (4) cycles of Stock Awards,
according to the attached hereto Annex II “Stock Awards Plan”, which is an integral part of the Remuneration Policy.
The Board of Directors shall be authorized to determine any details of implementation of this Plan, as well as the respective
activation condition of each cycle of the Plan, in accordance with its provisions.
PPC’s Renumeration Policy for 2021 is available on the Company’s official website (https://www.dei.gr/en/ppc-
group/ppc/corporate-governance/codes-Regulations-and-policies/).
The total of the remuneration granted to the BoD members during fiscal year 2021 is included in the respective Remuneration
Report which will be posted in the Company’s website when the required approvals are received.
The full content of the Remuneration Report of the Board of Directors within the provisions of article 112 of L. 4548/2018 and
the Remuneration Policy will be submitted for approval to the Shareholders General Meeting in 2022, in the context of
approving the financial results of fiscal year 2021.
10. Disclosure of direct and indirect conflicts of interest
The company in 2021 adopted and implements a Conflict of Interest Policy. Through this Policy, the Company seeks to provide
support, information and guidance to all staff (Senior Management and employees) on the principles and rules for the
prevention or management of conflict-of-interest situations and how to apply these principles and rules. PPC implements
appropriate mechanisms and procedures for the timely identification of conflicts, both prior to the taking up of duties by its
executives and during the performance of their duties.
According to the above Policy, all members of the BoD of the Company and any third person to whom duties have been
assigned by it must, through the Company Secretary notify, in a timely, adequate and written manner, the other members of
the BoD of the direct or indirect conflict of interest of which they are aware of and which has arisen from the Company's
transactions and/or during the performance of their duties.
Where the BoD is informed of the existence of direct or indirect conflict of interest or decides, following relevant information
by the involved/interested member of the BoD, that such a conflict exists, the interested/involved in the relevant transaction
member of the BoD is not entitled to vote on those matters in which there is direct or indirect conflict of interest ("abstention
rule"). In these cases, decisions are made by the other members of the BoD.
At each meeting of the BoD (and the Committees of the BoD), the Company Secretary reminds the participating members of
the BoD, before the start of the discussion on the items of the agenda, the relevant "abstention rule"
The Company Secretary of the BoD prepares a register of conflicts of interest reported by the members of the BoD, which is
constantly updated. The information contained in this register is sufficiently detailed to allow proper understanding of any
conflict of interest situation and shall be made available to the Audit Committee and the Legal Affairs and Corporate
Governance Division upon request.
100
Throughout the fiscal year 2021 the "abstention rule" was applied in two meetings of the Board of Directors, where the
interested parties of the Board of Directors did not vote on these issues. Specifically:
A/A
Meeting Date
Number of
Agenda
Item
Subject Title
Board of
Directors
member who
abstained
4
14.7.2021
5
Report on the degree of achievement of the Group's
objectives for the Financial Year 2020.
Mr. George
Stassis
Mr. Alexandros
Paterakis
Mr. George
Karakousis
7
23.11.2021
4
Convening of an Extraordinary General Meeting of
Shareholders of PPC S.A
Proposal for the election of two (2) Members of the Board
of Directors of PPC SA, due to the expiration of the tterm
of office of an equal number of its Members.
Mr. George
Karakousis
11. Determination of the independence conditions of the independent non-executive members of the Board.
The Nomination, Remuneration and Recruitment Committee in compliance with the par.3 article 9 of the L. 4706/2020 and in
view of publication of the Annual Financial Report, confirmed the fulfillment of the independence conditions, within the meaning
of par. 1 and 2 article 9, of the six (6) independent members of the Board of Directors, through the procedure set forth by the
Company's Suitability Policy (Annex XII).
In particular, the Nomination, Remuneration and Recruitment Committee received statements from Mr. Pyrro Papadimitriou,
Ms. Maria Psyllaki, Ms. Despina Doxaki, Mr.Stefanos Kardamaki, Mr. Stefanos Theodoridis and Mr. Michail Panagiotaki
according to which they stated that:
a) they do not hold, directly or indirectly, a percentage of voting rights greater than zero-point five percent (0.5%) of the
Company’s share capital, and that
b) they are free from financial, business, family or other dependent relationships, as those are prescribed in par. 2 article
9 of L. 4706/2020, which may influence their decision making and objective judgment.
12. Communication with shareholders and other stakeholders
The Company places great emphasis on communication and cooperation with stakeholders. Stakeholder groups have been
defined as the result of internal management consultations, discussions and working meetings of the Company's Top
Management with Executives. However, the prioritization of stakeholders and their priorities is a dynamic process and for this
reason, the map of stakeholders is regularly reviewed by the Board of Directors.
The aim of the Company’s Board of Directors is to create the conditions for an ongoing interactive dialogue with stakeholders,
in order to understand the effects of the Company’s activity and improve its performance, taking into account the opinions,
concerns, needs and suggestions of all stakeholders, that it affects and is affected by, in its decision making and the
development of its strategy.
In this context, the Company has developed communication mechanisms with the shareholders and other stakeholders in
order to understand their interests, so as to take them into account in BoD discussions and decision-making.
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In particular:
Communication with the shareholders
The Company, by adopting corporate governance best practices for the General Meetings, conducts all the General Meetings
of the shareholders via teleconference from a distance, enabling each shareholder (a person or institutional investor) to
participate, express his views and vote.
Furthermore, the Company’s shareholders may also submit proposals for the election of new members of the Board of
Directors. In accordance with the Company's Suitability Policy, the above proposals accompanied by the necessary
information which will allow the evaluation of the suitability of the proposed persons, as specified within the aforementioned
Policy, are submitted to the Nomination, Remuneration and Recruitment Committee at least seven (7) days before the General
Meeting that will decide the appointment of the members, in order to ensure that that the evaluation of the nominated persons’
suitability is as exhaustive as possible.
The Chairman and CEO is in constant contact with institutional investors through:
● Τeleconferencing that takes place to comment on the financial results.
● Τhe participation in roadshows, both in Greece and abroad,
● One-on-one meetings with institutional investors.
● Business presentations (Investor Day)
At the same time, the Investment Relations Division is in constant communication with the investment community and the
financial analysts, informing them (based on publicly available information) about the financial data, the developments and the
management’s objectives.
Constructive dialogue with other stakeholders
➢ The Company conducts a materiality analysis every two years in order to prioritize the important issues for the
Company and the stakeholders. The results of the materiality analysis are discussed by the Board of Directors and
are taken into account in the risk assessment process and in decision making. The stakeholder groups, which have
been defined as the result of internal consultations, discussions and working meetings of the Top Management of
each Company with its executives, are the following: Employees, High Voltage Customers, Medium Voltage
Customers, Low Voltage Customers, Organizations, Regulatory Authorities, Sustainable Development Agencies,
Investment Community, Financial Institutions, Non-Governmental Organizations and Local Communities, Media,
State - Public Agencies- Local Government Organizations, Business Communities (Greek and International),
Partners and Suppliers, other companies in the same industry, Academic Community and Research Centers.
➢ The Company publishes the essential issues that emerged from the stakeholders’ questionnaires and the actions
taken during the fiscal year to address them. The last materiality analysis was carried out in the summer of 2021.
This is the fifth time that such an analysis is run for PPC SA, but for the first time the analysis was extended to its
subsidiaries HEDNO S.A. and PPC Renewables S.A. The list of items to be assessed, takes into account the results
of previous years and the existing conditions of the Group and the market. Each issue was assessed in terms of its
materiality, both by the Top Management of each Company, as well as by its employees and external stakeholders
(see the results of the relevant materiality analysis in the Sustainable Development Report 2020
https://www.dei.gr/en/ppc-group/sustainable-development/sustainable-development-reports/sustainable-
development-report-2020/)
➢ Furthermore, the Company publishes the sustainable development data, following internationally recognized
standards, ensuring that all market participants can compare the Company’s performance with that of other
companies in the same sector, and also facilitating its ESG Rating in terms of its sustainable development
performance in the international market.
➢ Company employees are systematically informed about the developments in the Company, through the actions of
the Corporate Affairs & Communications Department, in which they are encouraged to participate actively.
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B. Audit Committee
i. Composition and Functioning - term of office of members
This Audit Committee operates within the framework of article 44 L. 4449/2017, as amended by Article 74 of L. 4706/2020 and
article 9 of L. 4643/2019. Its purpose is to assist the Board of Directors in fulfilling its duties and responsibilities to shareholders,
the investment community and third parties, particularly to ensuring the integrity, objectivity, adequacy and efficiency of the
following:
● the procedures of financial reports submission and in particular the financial reporting process and the process of the
statutory audit of the individual and consolidated financial statements by independent auditors – accountants,
● the corporate governance, risk management, quality assurance and internal control systems,
● the Internal Audit Department, which it oversees and
● the Company’s Procurement function for works, supplies and services.
The Audit Committee of PPC S.A is composed of at least five (5) members, appointed by the General Meeting of Shareholders
as follows: Three (3) Non-Executive members, by virtue of article 44 L. 4449/2017, as in force, that are independent from the
Company within the meaning of L. 4706/2020, and two (2) members, non-members of the Board of Directors, by virtue of
article 9 of L. 4643/2019, that are chosen from a list of persons with proven knowledge in the field of works, supplies and
services contracts, and who are independent from the Company, within the meaning of L. 4706/2020.
The Audit Committee of the Company from 1.1.2021 to 16.12.2021 had the following composition and structure:
- Georgios Venieris, Independent-Non-Executive Member of the Board, Chairman of the Audit Committee, for a term
of office of three years, ie. from 27.6.2019 until 26.6.2022.
- Despoina Doxaki, Independent-Non-Executive Member of the Board, for a term of office of three years, ie. from
27.6.2019 until 26.6.2022.
- Stefanos Kardamakis, Independent-Non-Executive Member of the Board for a term of office of three years, ie. from
22.8.2019 until 21.8.2022.
- Evangelos Angeletopoulos, Non-Member of the Board, Member of the Audit Committee, for a term of office of three
years, ie. from 8.5.2020 to 7.5.2023 and
- Emilios Stasinakis, Non-Member of the Board, Member of the Audit Committee, for a term of office of three years, ie.
from 8.5.2020 to 7.5.2023.
However, due to the expiration of the term of office of Mr. Georgios Venieris, as an independent Member of the BoD and
Chairman of the Audit Committee and in full compliance with the requirements of L. 4706/2020, an Extraordinary General
Meeting of the Company’s Shareholders held on December 16, 2021, in which Ms. Maria Psyllaki was elected as an
independent Member of the BoD and Member of the Audit Committee from 17.12.2021 to 16.12.2024.
Following the above, the existing Audit Committee was constituted at its meeting on 22 December 2021 as follows:
Maria Psillaki
Independent Non-Executive
Member of the BoD
Chairman of the Audit
Committee
With a three-year term of
office, i.e., from 17.12.2021
until 16.12.2024
Despoina Doxaki
Independent Non-Executive
Member of the BoD
Member
With a three-year term of
office, i.e., from 27.06.2019
until 26.6.2022
Stefanos Kardamakis
Independent Non-Executive
Member of the BoD
Member
With a three-year term of
office, i.e., from 22.8.2019
until 21.8.2022
Evangelos Angeletopoulos
Non-BoD member
Member
With a three-year term, i.e.,
from 8.5.2020 until 7.5.2023
Aimilios Stasinakis
Non-BoD member
Member
With a three-year term of
office, i.e., from 8.5.2020 until
7.5.2023
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ii. Curriculum Vitae of the Audit Committee members
For reasons of completeness the curriculum vitae of the Audit Committee members are listed below:
The curriculum vitae of Ms. Maria Psyllaki, Ms. Despina Doxaki and Mr. Stefanos Kardamakis, are presented in detail in
Section VI.4 of this Statement. The curriculum vitae of non-members of the Board which are members of the Audit Committee
are listed below:
Angeletopoulos Evangelos, Non-Member of the Board, Member of the Committee
Mr. Evangelos Angeletopoulos has more than forty (40) years of experience and professional career. From 1978 to 1999 as
Hellenic Navy (HN) Financial & Supply Officer he managed Integrated Logistics Support (ILS) items for the acquisition,
construction and follow-on logistics support of warships and major weapons systems.
From 1998 to 2020 he was the Managing Director of “Business Logistics Services (BLS Ltd)” and the Executive Director of
“Arcadia Consulting Ltd” (independent consulting firm) and the “Value Network Management Forum (V.N.M.F)”. He has
successfully implemented a series of Supply Chain Management, Logistics Management and Logistics Operations projects
and has designed and implemented top executive training programs (Executive Master’s Degree, workshops, summits, etc.).
In 1991 he drafted the specifications for the Integrated Logistics Support (ILS) of the MEKO 200 frigate and then he was
responsible for drafting and negotiation of the relevant contract with the German MEKO Consortium (Dresdner Bank - Thyssen
Group - Blohm + Voss Shipyard). In 2001 he directed and implemented the project "Analysis and Calculation of Logistics
Support Requirements of the Athens 2004 Olympic Games", on which the Logistics Support of the Olympic Games was based.
In 2003, as Managing Director of the Logistics 04 (L04) Consortium and Project Manager, he designed and implemented the
project "Provision of Logistics Support Services for the Athens 2004 Olympic and Paralympic Games". In 2011 he also
designed and implemented the project "Provision of Logistics Support Services for the Special Olympics World Summer
Games (SOWG) Athens 2011", which was the year’s biggest athletic event, worldwide. Evangelos is the founder of the non-
profit organization "EEL-Hellenic Society of Logistics" and he was the District Director/ Greece and Vice President International
/ Europe of the international non-profit organization "SOLE - The International Society of Logistics". He is also a member of
the “Gattorna Alignment Worldwide Consortium”, and a close associate of the "Supply Chain Thought Leader" Dr. John
Gattorna.
Stasinakis Aimilios, Non-Member of the Board, Member of the Committee
Aimilios Stasinakis is an executive with significant experience in Investment Banking, Strategy and Trading Consulting
Services and the Public sector.
Mr. Stasinakis is currently a Director for Government Solutions at Visa. Until recently, he has been involved in significant
private energy projects and previously, he was Deputy CEO of the Investment Bank of Greece, following his role as General
Manager for Investment Banking, where he led various transactions in finance and infrastructure in Greece and SE Europe.
Before that, he served as secretary for state-owned entities of the Ministry of Economy and Finance. Mr. Stasinakis has been
a member of the management team for various companies and organisations, either as an executive or a non-executive
member of the Board. In that respect, he has been a member of a number of boards including the Audit Committee of PPC
Group, IBG, Egnatia Motorway, Larco, ETVA Industrial Real Estate, OPAP Games and others.
Mr. Stasinakis Aimilios holds a BSc (Hons) in Management from Warwick Business School, MSc in Management from London
School of Economics and an MBA from the University of Oxford, Saïd Business School.
The criterion of sufficient knowledge and experience in auditing or accounting is fulfilled by Ms. Psyllaki, who on the one hand
due to her three-year term of office (2009-2012) as Vice President of the Hellenic Finance and Accounting Association (HFAA)
and on the other as Accounting Professor in the postgraduate program "Economic and Business Strategy" of the University of
Piraeus, has proven knowledge and experience in accounting. Also, in the context of her teaching experience regarding Public
Enterprises, she has knowledge of the organization, management and operation of the Company, which until recently was a
company of the wider Public Sector. Furthermore, as a Senior Research Fellow in the field of Energy and Finance, at the
Neapolis University of Paphos, Ms. Psyllaki has a deep knowledge of the issues of the energy sector, in which the Company
operates.
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The Chairman of the Audit Committee, Ms. M.Psyllaki, is the person according to the par.4(g) article 74 of L. 4706/2020, as in
force, who will be obliged to be present at the Audit Committee meetings regarding the approval of the financial statements.
In addition, the conditions of independence, as defined by the current regulatory framework and in particular by par. 1 and 2
article 9 of L. 4706/2020, are met by all the members of the Audit Committee since the following persons:
a) do not hold a percentage of shares higher than zero-point five percent (0.5%) of the Company’s share capital, and
that
b) do not have any dependency relationship with the Company or its related parties, as those are prescribed in the
aforementioned legislation.
iii. Responsibilities of the Committee
According to the requirements of article 44 of Law 4449/2017 and article 9 of L. 4643/2019 , the Audit Committee shall be
responsible for the following:
● Monitoring the external audit process and informing the Board of Directors of its results.
● Monitoring the financial reporting process and making recommendations or suggestions to ensure its integrity.
● Overseeing the selection of chartered auditors - accountants or audit firms and reviewing their independence.
● Monitoring, reviewing and evaluating the corporate governance, quality assurance and internal control systems
● Monitoring, reviewing and evaluating the procurement function for works, supplies and services.
The purpose, competencies and functioning of the Audit Committee are described in detail in its Rules of Procedure, which is
posted on the Company's website (https://www.dei.gr/en/ppc-group/ppc/corporate-governance/administrative-
structure/organizational-structure/).
iv. Frequency of Audit Committee Meetings and participation of members
In 2021, the Audit Committee met twenty-one (21) times. The number of participations of each member in the meetings of the
Audit Committee is presented in the table below:
Member
Position in Committee
Number of Meetings in which the
members of the BoD participated
Maria Psyllaki*
Chairman of the Committee
(since 22-12-2021)
1
Despoina Doksaki
Member
18
Stefanos Kardamakis
Member
18
Evangelos Aggeletopoulos
Member
21
Aimilios Stasinakis
Member
21
*Note: Until the end of his term of office, according to the above, on 16-12-2021, Mr. George Venieris, Chairman of the Audit
Committee, participated in twenty (20) meetings. Ms. Maria Psyllaki, who was elected at the Extraordinary General Meeting
on 16.12.2021, to replace Mr. Venieris and was subsequently appointed by the members of the Audit Committee as its
Chairman, participated in one (1) meeting, on the 21st, on the establishment of the Audit Committee and her appointment as
Chairman of the Audit Committee.
105
v. Proceedings of the Audit Committee for the fiscal year 2021
During the meetings of the Audit Committee in the fiscal year 2021, all the issues provided in the Company's Rules of Operation
and in the Rules of Procedure of the Internal Audit Unit were discussed and addressed. The main ones are summarized below:
External Audit / Financial Reporting Procedure
Re-evaluation of the independence of the Company's statutory auditors
● Monitoring the process of financial reporting and the course of the compulsory audit of the Company’s individual and
consolidated financial statements for the fiscal year 2020
● Monitoring the review process of the Company’s individual and consolidated financial statements for the first half of
2021
● Monitoring the process of the internally prepared Company’s individual and consolidated financial statements for the
first quarter and the nine months of the fiscal year 2021
● Update on the amount of letters of guarantee that were issued and remained in force for the first and second half of
2020
It is underlined that for the fiscal year 2021, the Audit Committee held five (5) meetings with the external auditors, supervising
the process of the relevant audit of the financial statements.
Internal Control System
The Audit Committee was occupied in: a) the supervision of issues related to the operation of the Internal Audit Department
(IAD) in accordance with applicable Regulations, b) the monitoring of the Company's internal control system and risk
management system, and c) the auditing activity of the Internal Audit Department in critical areas of audit interest.
Particularly:
Regarding the auditing activity of the Internal Audit Department, the Audit Committee monitored its work and was informed
about the findings, observations as well as the progress of the audits carried out in critical areas of audit interest, such as:
● the implementation of the Regulation of Works, Supplies and Services of PPC S.A (PWSS/PPC) to comply with the
requirements of the Audit Committee competencies, as defined by article 9 of L. 4643/2019,
● the Procedures related to Corporate Governance issues, such as the Remuneration of the members of the Board of
Directors, the Shareholder service procedure, the Corporate disclosure procedures, as well as the transactions with
related parties,
● the conduction of stock inventories (Rhodes Soroni NPP, Katavia NPP, LKDM PPC),
● the purchase and management of liquid fuel stocks,
● the operation of the stores of the Division of Commercial Operations,
● the customer invoicing process,
● the receivables securitization - receipts through alternative networks (receivables securitization transactions up to 60
days),
● the debt management (Low voltage customers), including changes in receivable accounts (Low voltage customers)
and receipts through alternative networks,
● the activities related to the permanent staff and their payroll (Individual Organizational levels),
● the compliance of the Mining and Production Activities with the applicable laws and Regulations related to the natural
environment,
● the transactions in electricity and energy products,
● the security of the Company’s Information Systems.
Evaluation of the IAD operation: The Audit Committee was informed in February 2021 for the results of the external evaluation
of the IAD which was conducted by an independent evaluator in compliance with the International Standards (Standards) for
the professional implementation of Internal Audit of the International Institute of Internal Auditors, as well as, taking into account
both the degree of adoption of best practices of Internal Audit and the degree of alignment with the expectations of the
Company’s stakeholders. The Audit Committee was informed about the overall conclusion of the external evaluation which
was "General Compliance", the existence of sub-areas that achieve either "Partial Compliance" or "Non-Compliance" with the
Standards, as well as the proposed action plan to achieve improvements.
106
IAD Strategic & Organizational Plan: The Audit Committee was informed in October 2021 on the IAD’s three-year strategic
organizational plan, which sets out IAD’s actions in the pillars of strategy, organizational structure, human resources and
technology. The Audit Committee informed the Board of Directors and monitors its implementation.
IAD Risk Assessment and Audit Plan: The Audit Committee monitored the Risk Assessment projects carried out by the ICS
with the participation of the IAD, and the development of an audit plan that is in line with the assessment of the risks arising
from the strategic priorities, the Company's new business plan and in full compliance with the increased requirements of the
institutional framework governing the corporate governance of the listed companies.
Operation of the Company's Procurement function for works, supplies and services
The Audit Committee, in accordance with the provisions of par. 2 article 9 L.4643 / 2019, dealt with the following issues:
1. Utilization of the Provisions of L. 4643: The possibilities provided by par. 4 article 9 L. 4643/19 in conjunction with
article 10 of the same law, were highlighted
2. Organizational and Procedural Changes
3. Modification of Regulation of Works, Supplies and Services
4. Digital Transformation of the Procurement Sampling Audit
5. Sampling Control
6. Performance Measurement (KPI's) of the Procurement function for works, supplies and services for the
Financial Year 2021
All the above are presented and analyzed in detail in the "Audit Committee’s Annual Report for the year 2021 on the
Procurement function to the Board of Directors of PPC S.A".
Sustainable Development Policy
The Sustainable Development Policy of the Company is detailed in section X. of this Statement.
vi. Audit Committee Evaluation
In accordance with the Rules of Procedure of the Audit Committee, the Committee is periodically evaluated in terms of its
performance under the supervision of its Chairman, who is responsible for the implementation of the evaluation process. Until
the date of drawing up of this Statement, the evaluation process of the Audit Committee had not taken place.
C. Nominations, Remuneration & Recruitment Committee
i. Composition and operation of the Committee – members’ term of office
The Company has established a Nominations, Remuneration & Recruitment Committee, in accordance with articles 11 and
12 of L. 4706/2020, article 5 of L. 4643/2019 and the Articles of Incorporation of the Company, which is established with a
Board of Directors decision. The purpose of the Νominations, Remuneration & Recruitment Committee is the support of the
Board of Directors, in matters related to the: a) examination of existing and BoD member candidates according to the
Company’s Suitability Policy, b) recruitment, c) remuneration policy and d) remuneration and incentives of the Company’s
executives.
Initially, PPC SA had a Remuneration Committee, which according to article 5 of L. 4643/2019 was transformed into a
Remuneration and Recruitment Committee on 22-08-2019. The existing Nominations, Remuneration and Recruitment
Committee of PPC SA is an evolution of the Remuneration and Recruitment Committee and consists of three (3) Non-
Executive members of the BoD, who are independent, within the meaning of the provisions of L. 4706/2020, as follows:
107
Pyrros Papadimitriou
Independent - Non-
Executive Member, Chair of
the NRRC
Chair of the Committee
With a three-year term of
office, i.e., from 22-08-2019
to 21-08-2022
Despoina Doxaki
Independent - Non-
Executive Member,
Member of the NRRC
Member
With a three-year term of
office, i.e., from 22-08-2019
to 21-08-2022
Stefanos Kardamakis
Independent - Non-
Executive Member, Member
of the NRRC
Member
With a three-year term of
office, i.e., from 22-08-2019
to 21-08-2022
ii. Curriculum vitae of the members of the Committee
The Curriculum Vitae of the members of the Nomination, Remuneration & Recruitment Committee are mentioned in Section
VI.4 of this Statement.
iii. Responsibilities of the Committee
Responsibilities on matters pertaining to Recruitment, Remuneration & Incentives
Making recommendation to the BoD for:
o The definition of a policy for the recruitment of permanent personnel, within the framework of the Company’s
Business Plan, to be approved by the Board of Directors,
o the establishment of a procedure for recruiting senior managers (Deputy CEOs and Chief Officers) and managers
(Directors and Assistant Directors/ Heads of Units), to be approved by the General Meeting,
o the drawing up of the Company’s remuneration policy, pursuant to Articles 110-112 of L. 4548/2018, as
applicable,
o the remuneration of the persons falling within the scope of the remuneration policy (members of the Board of
Directors, Deputy CEOs, Chief Officers, Directors and Assistant Directors/Heads of Units), to be approved by
the General Meeting.
Examining the information contained in the final draft of the annual remuneration report, providing its opinion to the Board of
Directors, prior to the submission of the report to the General Meeting , in accordance with article 112 of L. 4548/2018.
Receiving and reviewing the report on the degree of achievement of the CEO’s objectives, through which the degree of
achievement of the Group’s objectives is confirmed and submitting it to the Board of Directors for final approval.
Responsibilities for the Nomination of Candidates for Board Members
Identifying and recommending to the Board of Directors persons eligible for acquiring the capacity of Board members, by
applying the following procedure:
● Periodically evaluates the size and composition of the Board of Directors.
● Submits proposals for the diversity policy adopted by the Board of Directors, and, in general, for the implementation
of the provisions of the relevant applicable legislation.
● Evaluates Board Candidates:
- taking into account the factors and criteria defined by the Company, in accordance with the Suitability Policy that it adopts;
and
- examining any impediments and incompatibilities, as well as the criteria of independence of candidate members
(especially in the case of their appointment as independent members), in accordance with L. 4706/2020 and L. 4548/2018,
as applicable.
In particular, below is a description of the Committee’s competencies in relation to the procedure for nominating Board
members:
✓ Preparing the nomination procedure
✓ Searching for candidates
✓ Assessing the suitability of candidates
✓ Proposing candidate members to the Board of Directors
✓ Proposing the replacement of members
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Responsibilities for the Assessment, Training and Succession Planning of Board members
The Committee shall have the competencies and the individual and collective responsibility for the assessment of the BoD,
for the training and succession planning, as provided for in the respective articles of the Suitability Policy and the Training
Policy for Board Members.
In particular:
Succession Planning
Ensuring that the possibility that a Board member might lose his/her capacity in the course of the financial year is considered
and the selection procedure for new members is initiated, as specified in the Suitability Policy.
In addition, in order to ensure the efficiency of the procedure and achieve optimal results concerning the smooth succession
of its members:
- It takes into account the findings of the assessment of the Board of Directors, as well as the restriction of article 9 L.
4706/2020 regarding the term of office of independent non-executive members of the Board of Directors in order to maintain
their independence (i.e., nine financial years cumulatively),
- It maintains a succession plan and candidate profile, while at the same time establishing a list of skills and attributes, to deal
with resignations or loss in any way whatsoever of the capacity of a Board member,
- It ensures that a seamless succession plan for the CEO is prepared.
Other Responsibilities
It supports the Board of Directors, with the assistance of other competent units, in order to ensure that the independence
requirements of the non-executive members of the Board of Directors are met in compliance with the provisions of L.
4706/2020, at least annually per financial year and in any case prior to the publication of the annual financial report, which
shall include the relevant findings.
It carries out a periodic assessment of its performance, under the responsibility of its Chairman, and identifies any areas that
need to be improved.
Detailed information on the role, responsibilities and functioning of the Nomination, Remuneration & Recruitment Committee
are included in its Rules of Procedure, which is posted on the Company's website (https://www.dei.gr/en/ppc-
group/ppc/corporate-governance/administrative-structure/ppc-board-of-directors/).
iv. Frequency of meetings and members' participation
The Committee convened five (5) times in 2021, in which all of its members participated. Company executives were also
present in all of its meetings, following an invitation from the Committee, in order to present their views on matters of their
competence.
v. Proceedings of the Nomination, Remuneration & Recruitment Committee for 2021
The main issues discussed, and decisions taken by the Committee during 2021 are summarized below:
• Update / Completion and codification of the Company's Remuneration Policy (Meeting on 12-05-2021). Following the
recommendation of the Committee, the proposal of the Remuneration Policy to the General Meeting was initially
approved by the BoD with its decision No. 47 / 13-05-2021. The Remuneration Policy was then approved by the
Extraordinary General Meeting of shareholders on June 4, 2021.
• Determination of the recruitment policy of employees with contracts of indefinite duration, within the framework of the
Company’s Business Plan, in application of article 3 of Law 4643/2019 "Recruitment of personnel of indefinite
duration" (Meeting 25-05-2021). Following the recommendation of the Committee, this recruitment policy of
employees with contracts of indefinite duration was approved by the BoD with its decision No. 52 / 27-05-2021.
• Examination, within the scope of the Committee’s responsibilities, of the degree of achievement of the CEOs
objectives for 2020, through which the degree of achievement of the Group's objectives for the financial year 2020 is
certified. The Committee also prepared the relevant Report of the Achievement Degree of its Objectives, as defined
in the Remuneration Policy, and submitted it for final approval to the BoD. (Meeting 12-07-2021). The Committee
submitted the Report of the degree of achievement of the CEOs objectives for approval to the BoD in order to confirm
the degree of achievement of the Group’s objectives. The BoD approved the aforementioned report with its decision
No. 89/14-07-2021.
109
• Submission of the amendments of the Recruitment Policy to the BoD, regarding the recruitment of staff of University
Education, Technological Education and Secondary Education, the recruitment of staff (University or Technological
education) of specialized qualifications or experience as well as the recruitment of Occupational Physicians, with
contracts of indefinite duration (Meeting 27-09-2021). Following a recommendation of the Committee, the above
amendments to the Recruitment Policy were approved by the BoD with its decision No. 121 / 15-10-2021.
• Submission of proposals to the BoD for the election of two (2) Members of the BoD of PPC SA, due to the expiration
of the term of office of an equal number of its members, in accordance with Law 4706/2020 and the Company’s
Suitability Policy (Meeting 23-11-2021). Following the recommendation of the Committee, which had verified the
fulfillment of the eligibility criteria of the two (2) candidates for the acquisition of the BoD membership, in accordance
with the Company's Suitability Policy, the proposal of the election of two (2) members of the Board, due to the end of
the term of office of an equal number of its members, to the General Meeting was initially approved by the BoD with
its decision No. 149 / 23-11-2021. The Extraordinary General Meeting of Shareholders on December 16, 2021
decided the re-election of Mr. Georgios Karakousis as Executive Member of the BoD. and the election of Mrs. Maria
Psyllaki, as an Independent Member of the BoD.
vi. Evaluation of the Committee
In accordance with the Rules of Operation of the Nomination, Remuneration & Recruitment Committee, the Committee is
periodically evaluated in terms of its performance under the supervision of its Chair, who is responsible for the implementation
of the evaluation process. Until the date of drawn up n of this Statement, the evaluation process of the Nomination,
Remuneration & Recruitment Nominations Committee had not taken place.
D. Other Committees
Executive Committee
The Company has an Executive Committee.
The Executive Committee is composed of the CEO, who is also its Chairman, any Deputy CEO’s and the Chief Officers.
The Company’s General Counsel participates in its meetings, at the discretion of the CEO.
The Executive Committee shall operate in conformity with the decisions of the Board of Directors, ensuring the necessary
collective handling of administrative and operational issues of the Company, as well as the consistency in its operation. Within
this framework, the Executive Committee shall be responsible for important matters concerning inter alia the productivity, the
performance of the company units, the organization and operation of activities of the Company, as well as for the budget and
the Strategic and the Business Planning.
Moreover, the Executive Committee shall decide on the awarding of contracts concerning supplies, provision of services and
in general any kind of financial contract up to an amount fixed as per case by the Board of Directors.
The Executive Committee shall operate in accordance with its Rule of Operation, as approved by the Board of Directors upon
recommendation by the CEO.
Furthermore, the Company has established a Strategy and Investment Committee as well as a Sustainability Committee.
110
Risk Management Committee
The Company has a Risk Management Committee, which is responsible for the risk oversight in all of the Company’s activities
and contributes to the development of the Corporate Risk Management Framework and the monitoring and reporting of
significant Corporate Risks.
The Risk Management Committee consists of ten (10) members, as follows:
Member’s name
Position in Company
Position in Committee
Georgios Stassis
BoD Chairman and CEO
Chairman
George Karakousis
Deputy CEO of commercial activities, BoD
Member
Member
Ioannis Kopanakis
Deputy CEO of Production Operations
Member
Alexander Paterakis
Deputy CEO of Digital Transformation, BoD
Member
Member
Anargyros Oikonomou
General Counsel and Chief Legal Affairs and
Corporate Governance Officer
Member
Konstantinos Alexandridis
Chief Financial Officer
Member
Sotiris Hadjimichael
Chief Strategy & Transformation Officer
Member
Konstantinos Mavros
CEO of PPC Renewables S.A.
Member
Konstantinos Nazos
Chief Energy Management & Trading Officer
Member
Abraham Papakyrillou
Director of Risk Management Division
Secretary and Deputy
Chairman of the Committee
The CVs of the members of the Committee who are also members of the BoD can be found in section VI. Par. 1 "Board of
Directors and Committees".
The CVs of the senior executives who are members of the Risk Management Committee are listed in the Annex of this
Statement.
Sustainability Committee
The Sustainability Department has been established by decision of the CEO (June 2021) and appointed Director of the
Sustainability Department reporting directly to the CEO.
Furthermore, based on the decision of the Board of Directors No. 142/9.11.2021, a Sustainability Committee has been
established with representation from the top management, which will be responsible for the supervision of Sustainability and
for informing the Board of Directors on Sustainability matters. The establishment of this Committee was carried out in the
context of the TCFD (Taskforce for Climate-related Financial Disclosure) action plan, according to which the risks that the
Company will face in its activities due to climate change, as well as the ways to address them, will be examined.
The purpose of the Sustainability Committee is at minimum the involvement, the understanding and reporting to the BoD of
subjects related to the following:
(a) supervision, coordination and promotion of policies and actions related to Sustainability and Climate,
(b) overseeing the identification, monitoring and management of risks and opportunities related to Sustainability and Climate,
(c) overseeing the establishment, implementation and monitoring of the Sustainability strategy and policy,
(d) overseeing and approving the Sustainability Report and the wider implementation of appropriate non-financial reporting
and ESG (Environment, Society, Governance) disclosure frameworks,
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(e) oversight and monitoring of the annual targets around Sustainability, CSV (Creating Shared Value) and Climate for all
Group Departments and sections, and with respect to HEDNO, the monitoring of its business plan in relation to Sustainability
matters on behalf of the shareholder; and
(f) reporting to the Board of Directors on these matters on a regular basis, with the ultimate objective of further enhancing the
Board’s oversight and awareness.
The Sustainability Committee consists of seven (7) members as follows:
Member’s name
Position in Company
Position in Committee
Georgios Stassis
Chairman and CEO
Chairman
George Karakousis
Deputy CEO of commercial activities
Member
Ioannis Kopanakis
Deputy CEO of Production Operations
Member
Alexander Paterakis
Deputy CEO of digital transformation
Member
Konstantinos Alexandridis
Chief Financial Officer
Member
Konstantinos Mavros
CEO of PPC Renewables S.A.
Member
Achilleas Ioakeimidis
Director of Sustainable Development
Secretary and Deputy
Chairman of the Committee
The CVs of the members of the Committee who are also members of the Board are listed in section VI. par. 4 of this Statement.
The CVs of high ranking executives participating in the Committee are set out in the Annex to this Statement.
VII. Diversity, equality and adequate gender representation applied to the managerial bodies of the Company
The Company has put in place and implements a Diversity Policy with a view to promoting a suitable level of diversification
inside the BoD and an inclusive team of members. Putting together a broad range of qualifications and skills when selecting
BoD members guarantees diversity of insight and expertise with a view to sound decision-making. The Diversity Policy is taken
into consideration when appointing new BoD members.
By adopting and implementing a Diversity Policy, the Company ensures that no-one is excluded from selection and
appointment in the BoD because of gender, race, colour, ethnic or social origin, religion or belief, property, birth, disability, age
or sexual orientation. In addition, the Company must ensure an adequate representation of gender corresponding to at least
twenty-five per cent (25%) of the total number of BoD members. In case of fraction, this number is rounded down to the
previous integer. Respectively, through the Competent Units, the Company takes appropriate initiatives to achieve a wider
range of representation of shareholders at the BoD, who, either individually or in the aggregate, represent at least 10% of the
Company’s share capital. The Nominations, Remuneration & Recruitment Committee takes these criteria into consideration
when making proposals for the appointment of BoD members.
More Specifically, the Diversity Policy explains the Company’s approach to equality and diversity within the Board. The
Company is committed to promoting equality and diversity within the Board, as well as to promote a culture that, on the one
hand, values and respects diversity and, on the other hand, recognizes that people from different backgrounds and
experiences can make a valuable contribution to the work of the Board. The broader goal of the Company is to be an inclusive
organization, which provides equal opportunities in the whole range of employment, including recruitment, training and
development of the members of the Board of Directors and the employees.
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VIII. Related Parties Transactions’ Regulation
The Company has a “Related Parties Transactions” Regulation (Regulation), which introduces Regulations and internal
procedures for the transparency and supervision of transactions and contracts of PPC S.A. with Related Parties of the
Company, in order to strengthen the existing ones, in compliance with L.4548/2018 (A 104) [articles 97, 99-101 and 109,
paragraph 3], the Decisions of the Hellenic Capital Market Commission No. 1/434 / 3.7.2007 and 8/754 / 14.4.2016, and the
Circular of the Hellenic Capital Market Commission No. 45 / 21.07.2011.
This Regulation sets out the rules, procedures and in general the framework for the Company to carry out transactions and
conclude contracts with related parties (related party transactions), ie, with persons who can exercise control or undue
influence over it.
With regard to the definition of the personnel-subjective scope of the Regulation, a reference is made to the provisions of the
accounting law and, in particular, to the persons defined in IAS 24. The objective scope of the Regulation covers in principle
all transactional relations between the Company and its affiliates. Therefore, no distinction is made between loan and credit
agreements / transactions, on the one hand, and "other agreements / transactions", on the other; on the contrary, all
agreements / transactions, independently whether they concern agreements / transactions from which only benefits arise for
the Company, are subject the provisions of the Regulation.
Furthermore, the Regulation governs the remuneration to members of the Board of Directors for services they provide to the
Company on the basis of a special relationship, such as indicatively, by way of employment, work contract or mandate.
The General Division of Financial Services draws up a specific list in which the details of the related parties are registered and
updated ("List of Related Parties"). The list of Related Parties is updated whenever required by the circumstances and in any
case at least once a year, by requesting from the persons directly connected with the Company (and / or their legal
representatives) to confirm the information already submitted, including information already submitted that relate to other
persons who, the directly related parties, know or have good reason to believe that, also constitute (indirectly) related parties
with the Company. In addition to the above periodic updates, the General Directorate of Financial Services may, at any time
it deems appropriate or necessary, request the update of the Directory.
The Annual Report of the Board of Directors of the Company (L. 3556/2007 as in force) includes the most important
transactions of the Company with related parties, as defined in IAS 24, and at least the transactions between the Company
and each related party that took place during the year and which substantially affected the financial position or performance
of the Company during that year.
IX. General Meeting and Shareholder’s Rights
Responsibilities of the General Meeting
The General Meeting of shareholders is the supreme authority of the Company and shall have the right to adopt resolutions
on all matters concerning the company, unless otherwise stipulated in the company's Articles of Incorporation, and more
particularly to decide regarding:
– The amendments to the Articles of Incorporation, such amendments are also deemed to be the increase or reduction
of the share capital, subject to the provisions of par. 2 article 6 of the Articles of Incorporation and article 117 of L.
4548/2018, as applicable. The resolutions concerning amendments to these Articles of Incorporation shall be valid,
provided that the relevant amendment is not prohibited by an express provision hereof or by law,
– The election of Board Members, pursuant to article 9 of the Articles of Incorporation, of the CEO and of the regular
auditors,
– The approval of the overall management pursuant to article 108 of L. 4548/2018 and the discharge of the auditors,
– The approval of the annual and consolidated financial statements of the Company,
– The distribution of the annual profits,
– The approval of the provision of remunerations in accordance with article 17 of the Articles of incorporation, as well
as the approval of the Remuneration Policy of article 110 and the remuneration report of article 112 of L. 4548/2018,
– The issuance of loan through bonds convertible into shares, by virtue of those especially provided for in article 71 of
L. 4548/2018 and subject to those provided for in article 6 of the Articles of Incorporation. The issuance of bonded
loans non-convertible into shares shall be allowed by resolution of the Board of Directors,
– Τhe merger, division (demerger), conversion, revival, extension of term or dissolution of the Company and
– The appointment of liquidators.
Any holder of fully paid-up voting shares shall participate in the General Meeting of shareholders of the Company only to the
extent of the number of shares which he/she holds.
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Convocation of the General Meeting
The General Meeting of the shareholders of the Company shall be convened by the Board of Directors and shall meet at the
seat of the Company and/or at any other venue other than its seat, in accordance with the provisions of articles 119 and 120
of L. 4548/2018, at least once a year, no later than the tenth (10th) calendar date of the ninth month following the termination
of the fiscal year in order to adopt resolutions on the approval of the annual financial statements and the election of auditors
(Ordinary General Meeting). The Board of Directors may convene an Extraordinary General Meeting of the shareholders,
whenever this is prescribed by special provisions or whenever the Board considers it appropriate.
Within ten (10) days from the submission by the auditors of a request to the Chairman of the Board, the Board of Directors
shall be bound to convene the General Meeting of shareholders having as for items on the agenda those listed in the submitted
request.
Invitation to the General Meeting
The Invitation to the General Meeting, with the exception of repeat General Meetings and of meetings regarded as such, shall
clearly state at least the venue, date, and time of the meeting, the items on the agenda, the shareholders entitled to participate,
as well as precise instructions about the way the shareholders shall be able to participate in the meeting and exercise their
rights in person or by proxy, or potentially through remote attendance (from a distance), shall be available in a prominent place
at the registered office of the company and shall be published by posting on the website of the Company and the website of
the GECR, and in any case, as provided for by law each time.
With the exception of the repeat Meetings, the General Meeting shall be convened at least twenty (20) full days prior to the
date set for the meeting. The invitation shall be posted on the Company's website at least twenty (20) full days prior to the
date of the General Meeting and at the same time it shall be registered with the Company's section at the GECR (G.E.MI) as
per law.
The day of publication of the notice of invitation to attend a General Meeting and the day on which such meeting shall be held
are not counted.
Besides the information of par.1 article 21 of the Articles of Incorporation, the invitation shall also include at least the following
information about:
- the shareholders' rights of par. 2, 3, 6 and 7 of article 28 of the Articles of Incorporation, stating the time period within which
each right may be exercised, the respective deadlines specified in the above paragraphs of article 28 of the Articles of
Incorporation or, alternatively, the closing date by which such rights may be exercised, on condition that the detailed
information concerning the said rights and the terms of their exercise is posted, with an explicit reference in the invitation, on
the Company's website www.dei.gr, and
– the procedure for the exercise of the voting right by proxy and more in particular the printed forms used by the Company
to this end, as well as the means and methods provided for in article 22 of the Articles of Incorporation, in order that the
company may receive electronic notifications of any appointment and revocation of proxy holders,
– the procedures regarding the exercise of the voting right via registered mail or email according to those provided for in
articles 125 and 126 correspondingly, of L. 4548/2018 and article 22 of the Articles of Incorporation.
– set the record date as provided for in par. 2 article 22 of the Articles of Incorporation in accordance with par. 6 article 124
of L. 4548/2018, as applicable, pointing out that only those persons having the shareholder capacity on such date shall
have the participation and voting right at the General Meeting.
– inform about the location where the full text of documents and draft resolutions provided for in cases c) and d) of par. 5
article 22 of the Articles of Incorporation are made available, as well as their reception mode.
– mention the Company's website address where the information of par. 5 of article 22 of the Articles of Incorporation is
posted.
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The Company shall publish in the media referred to in par. 1 of article 21 of the Articles of Incorporation a summary of the
invitation containing at least the precise address of the venue, the date and the time of the meeting, the shareholders entitled
to participate, as well as an explicit reference to the address of the Company's website where the full text of the invitation and
the information provided for in article 123 of L. 4548/2018 are posted.
In case of enforcement of par. 2, article 141 of L. 4548/2018, the publication in the media in accordance with the par. 1 of
article 21 of the Articles of Incorporation shall contain at least a clear indication that any revised agenda shall be posted on
the Company's website and in the media referred to below. Besides the publication in the media of par. 1 of article 21 of the
Articles of Incorporation including the Company's website, the full text of the invitation shall also be published within the
prescribed deadline of par. 2 of article 21 of the Articles of Incorporation, in such a way as to ensure rapid and non-
discriminatory access to it, in the media that the Board of Directors considers reasonably reliable for the effective diffusion of
information to the investors through printed and electronic media of national and Europe-wide circulation.
Participation in the General Meeting
Any shareholder shall be entitled to attend and vote at the General Meeting.
Any shareholder who holds and proves his shareholder capacity on the date of the General Meeting shall be entitled to
participate in the General Meeting. In particular, any person holding the shareholder capacity on the commencement of the
fifth (5th) date prior to the date of the initial date of the General Meeting (Record Date) shall be entitled to participate in the
General Meeting. The above Record Date shall apply even in the event of a postponed or repeat meeting on condition that
the postponed or repeat meeting is not held later than thirty (30) days from the Record Date. If that is not the case or if, in the
event of a repeat General Meeting, a new Invitation is published in accordance with those provided for in article 130 of L.
4548/2018, any person having the shareholder capacity on the commencement of the third (3rd) day prior to the date of the
postponed or repeat General Meeting shall be entitled to participate in the General Meeting. The shareholder capacity shall
be evidenced by any legal means and in any case based on the information received by the Company from the Central
Securities Depository, on condition that the latter provides registry related services.
Shareholders shall participate in the General Meeting either in person or by proxy. Each shareholder may appoint up to three
(3) proxy holders. Any proxy holder holding proxies by several shareholders may cast votes differently for each shareholder.
The appointment, revocation or substitution of any proxy holder shall be made in writing or by mail and shall be notified to the
company in accordance with the same procedure as above at least forty eight (48) hours prior to the date set for such General
Meeting. Legal entities shall participate in the General Meeting by their representatives.
Ten (10) days prior to the ordinary General Meeting, the Company shall make available to the shareholders the annual financial
statements thereof, together with the relevant reports of the Board of Directors and of the auditors, posting the relevant
information on the Company's website as specified in par. 1 and 2 of article 123 of L. 4548/2018.
Each shareholder, for each item on the agenda which allows for open vote, shall be entitled to participate in the General
Meeting via distance voting, registered mail or through electronic means, with the voting being held prior to the General
Meeting, subject to the conditions set out in article 126 of L. 4548/2018.
As of the date of publication of the invitation to the General Meeting and until the date of the General Meeting, at least the
following information shall be posted on the company's website:
– the notice of invitation to the General Meeting,
– the total number of shares and voting rights on the date of such invitation,
– the documents to be submitted at the General Meeting,
– a draft resolution for each proposed item on the agenda or in case no resolution has been submitted for approval, a
comment by the Board of Directors on each item on the agenda and any draft resolutions submitted by the
shareholders, right after being received by the Company,
– the printed forms to be used for the exercise of voting rights by proxy.
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Ordinary Quorum and Majority
A quorum of the General Meeting shall be deemed to be achieved for the proper discussion of the items on the agenda, when
shareholders representing at least one fifth (1/5) of the paid-up share capital are present or represented thereat.
If the quorum referred to in the preceding paragraph is not obtained, the General Meeting shall be held again within twenty
(20) days from the date of the postponed meeting, following invitation being notified at least ten (10) days prior to the meeting
date. At such a repeat meeting a quorum shall be deemed to be obtained in order to duly discuss the items set out on the
original agenda, regardless of the proportion of the paid-up share capital represented thereat.
A new notice of invitation is not required, in the event that the original notice of invitation states the venue and date of the
repeat meetings provided for by the law, in case a quorum has not been reached, on condition that there is a lapse of at least
five (5) days between the postponed meeting and the repeat one.
Τhe resolutions of the General Meeting shall be adopted by absolute majority of the votes represented thereat.
Extraordinary Quorum and Majority
Exceptionally, for resolutions involving:
• change in the nationality of the Company,
• modification of the object of the Company,
• issuance of bonded loans convertible into shares, as stipulated by par. 1(g) article 19 of the Articles of Incorporation,
• increase of the shareholders' obligations,
• increase of the share capital, subject to the provisions of article 6 of the Articles of Incorporation, or unless it is
imposed by law or is effected by capitalization of reserves,
• decrease of the share capital, with the exception of the case of par. 6 article 49 of L. 4548/2018, as applicable, or
with the exception of those cases which are regulated in a different manner according to a special law or to the
Company's Articles of Incorporation,
• change in the manner of profits' distribution,
• restriction or abolition of the pre-emption right of the old shareholders in the cases of and subject to the conditions
set out in article 27 of L. 4548/2018,
• merger, division (demerger), conversion, revival, extension of term or dissolution of the company,
• granting or renewing of powers to the Board of Directors for the increase of the share capital or the issuance of a
bonded loan in accordance with the provisions of article 6 par. 2(b) of the Articles of Incorporation, and
• any amendment to the article 24 of the Articles of Incorporation and in any other case stipulated by the law.
Τhe Meeting has quorum and legally meets on the items set out in the agenda, when shareholders representing one half (1/2)
of the paid-up share capital are present or represented thereat.
If the said quorum is not obtained, a repeat General Meeting shall be convened in accordance with the provisions of par. 2,
article 23 of the Articles of Incorporation, a quorum of which shall be obtained for the proper transaction of the business set
out in the initial agenda, when at least one fifth (1/5) of the paid-up share capital is present or represented thereat.
A new notice of invitation is not required on condition that the venue and time of the repeat meetings, as provided for by law,
are set in the initial invitation, and that at least five (5) days intervene between each postponed meeting and each repeat one.
The resolutions stipulated in par. 1 article 24 of the Articles of Incorporation shall be made by a two third (2/3) majority of the
votes represented thereat.
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Chairmanship of the General Meeting
The Chairman of the Board of Directors shall preside, provisionally, as chairman at the General Meetings. If unable to perform
his/her duties, he/she shall be replaced by his/her substitute. Secretarial duties at the meetings shall be performed,
provisionally, by a person appointed by the Chairman.
Following approval of the final list of shareholders with voting rights, the General Meeting shall proceed to the election of its
Chairman and of one (1) Secretary, who shall also act as scrutineer.
Agenda - Minutes of the Meetings
The discussions and the resolutions of the General Meeting shall be limited to the items on the agenda published in accordance
with article 21 of the Articles of Incorporation.
A summary of all discussions and resolutions of the General Meeting shall be entered in a minute book signed by the Chairman
and the Secretary. At the request of any shareholder, if any, the Chairman shall be obliged to record an exact summary of the
said shareholder's opinion in the minutes. In the same minute book, a list of shareholders who attended the General Meeting
in person or by proxy shall also be recorded. The results of the voting shall be posted on the Company's website under the
responsibility of the Board of Directors within five (5) days at the latest from the date of the General Meeting, indicating for
each resolution at least the number of shares for which valid votes were cast, the proportion of the share capital represented
by such votes, the total number of valid votes, as well as the number of votes cast in favour and against each resolution and
the number of abstentions.
Copies of and excerpts from the minutes of the General Meeting shall be certified by the Chairman of the Board of Directors
or his/her substitute and provided that there is an obligation to be registered with the General Electronic Commercial Registry
(GECR), they shall be submitted to the competent service of the GECR within twenty (20) days as of the holding of the General
Meeting.
Minority rights
1. At the request of shareholders representing one twentieth (1/20) of the paid-up share capital, the Board of Directors shall
be bound to convene an Extraordinary General Meeting, setting the date of such a meeting, which shall not be later than
forty-five (45) days from the date of service of such request to the Chairman of the Board of Directors. The agenda items
shall be stated in detail in the said request. If the General Meeting is not convened by the Board of Directors within twenty
(20) days from the service of the said request, the meeting shall be convened by the requesting shareholders at the
expense of the Company, upon ruling of the Single-Member Court of First Instance at the Company's registered seat,
issued following the procedure of interim measures. The place and date of the meeting, as well as the items on the
agenda, shall be defined by the said ruling. This ruling may not be contested by any judicial remedies. The Board of
Directors convenes the General Meeting, pursuant to the general provisions or uses the procedure set out in article 135
of L. 4548/2018, unless the requesting shareholders have precluded that possibility.
2. At the request of shareholders representing one twentieth (1/20) of the paid-up share capital, the Board of Directors shall
be obliged to insert additional items on the agenda of a General Meeting already convened, if the relative request has
been submitted to the Board of Directors at least fifteen (15) days prior to the General Meeting. The request for the
insertion of additional items in the agenda shall be accompanied by the reasoning or a draft resolution to be approved by
the General Meeting and the revised agenda shall be published or notified under the responsibility of the Board of
Directors, pursuant to article 22 of L. 4548/2018, as applicable, according to the same procedure as above, thirteen (13)
days prior to the date of the General Meeting; at the same time it shall be made available to the shareholders on the
Company's website along with the reasoning or the draft decision submitted by the shareholders in accordance with the
provisions of par. 5 article 22 of the Articles of Incorporation. In the event that these items are not published, the requesting
shareholders are entitled to request the postponement of the General Meeting, pursuant to par. 5 of article 22 of the
Articles of Incorporation and proceed on their own to their publication, in accordance with the provisions of the present
paragraph, at the expense of the Company.
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3. At the request of shareholders representing one twentieth (1/20) of the paid-up share capital, the Board of Directors shall
make available to the shareholders in accordance with the provisions of par. 5 article 22 of the Articles of Incorporation,
at least six (6) days prior to the General Meeting any draft resolutions on items included in the initial or the revised agenda,
provided that such request is submitted to the Board of Directors at least seven (7) days prior to the date of the General
Meeting.
4. The Board of Directors shall have no obligation to proceed to the insertion of items on the agenda nor to publish or notify
such items along with the reasoning and the draft resolutions submitted by the shareholders in accordance with the above
paragraphs, if their content is obviously contrary to Law and morality.
5. At the request of shareholders representing one twentieth (1/20) of the paid-up share capital, the Chairman of the General
Meeting shall be obliged to postpone, only once, the decision-making process by the ordinary or extraordinary General
Meeting for all or specific items, setting at the same time as date when the meeting will reconvene for decision-making,
the one specified in the request of the shareholders, which may not be later than twenty (20) days from the date of
postponement.
The General Meeting, which follows the postponed one, is considered a continuance of the previous one and no repetition of
the requirements for the publication of the shareholders' invitation is required. New shareholders may also attend this meeting,
pursuant to the provisions of article 22 of the Articles of Incorporation.
6.
a) At the request of shareholders representing one twentieth (1/20) of the paid-up share capital submitted to the Company,
the Board of Directors shall be bound to announce to the General Meeting of shareholders, provided it is an ordinary
General Meeting, the amounts paid by the Company, for any reason whatsoever, within the last two (2) years, to members
of the Board of Directors, to the Chief Officers, to the Directors or other employees of the Company, as well as any other
benefit paid to the said persons or any contract of the Company concluded with the above mentioned persons for any
reason whatsoever.
b) At the request of any of the shareholders, submitted to the Company within at least five (5) full days prior to the General
Meeting, the Board of Directors shall be obliged to provide any requested information with respect to the Company affairs,
to the extent that such information is useful for the actual evaluation of the agenda items. The Board of Directors may
give a common reply to all shareholders' requests having the same content. There shall be no obligation to provide
information, on condition that such information is already posted on the Company's website, especially in question and
answer form.
In both cases above, the Board of Directors may refuse to provide the requested information, if sufficient material grounds
exist, recording the reasons for such refusal in the minutes. Such reason may be, depending on the circumstances, the
representation of the requesting shareholders at the Board of Directors, pursuant to articles 79 or 80 of L. 4548/2018. In the
cases of the present paragraph, the Board of Directors may give a common reply to all shareholders' requests having the
same content.
7. At the request of shareholders representing one tenth (1/10) of the paid-up share capital submitted to the Company within
the time limit referred to in the preceding paragraph, the Board of Directors shall be obliged to provide to the said
shareholders during the General Meeting information on the progress of the affairs and on the financial condition of the
Company. The Board of Directors may refuse to provide the requested information, if sufficient material grounds exist,
recording the reasons for such refusal in the minutes.
8. In the cases referred to in the par. 6a and 7, any issue in dispute over the validity of the reasons for such refusal by the
Board of Directors shall be resolved by the Single Member Court of First Instance of the Company's registered seat,
following the procedure of interim measures. By the same ruling, the court shall oblige the Company to provide any
information it refused. This ruling may not be contested by any judicial remedies.
9. At the request of shareholders representing one twentieth (1/20) of the paid-up share capital, a resolution concerning any
item on the agenda of the General Meeting shall be made by open vote.
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10. In all cases referred to in the par.1 to 9, the shareholders submitting such a request shall be obliged to provide during the
exercise of their rights evidence of their shareholding capacity, in conjunction with article 22 of the Articles of Incorporation,
and except in the case of the second section of par. 6 of the article 28 of the Articles of Incorporation, of the number of
their shares during the exercise of their right. Shareholders' capacity may be evidenced by any legal means and in any
case based on the information that the Company receives from the Central Securities Depository, on condition that it
provides registry-related services.
11. Shareholders of the Company representing one twentieth (1/20) of the paid-up share capital shall have the right to request
by the Single-Member Court of First Instance of the Company's registered seat the performance of an audit of the
Company. Such audit shall be ordered, in the event it is assumed that certain acts reported against the Company violate
the provisions of the law, of the Articles of Incorporation or of the resolutions of the General Meeting. In all cases, the
petitions requesting an audit shall be filed within three (3) years from the date of approval of the annual financial
statements of the financial year within which such reported acts took place.
12. Shareholders of the Company representing one fifth (1/5) of the paid-up share capital shall have the right to request by
the court referred to in the preceding paragraph the performance of an audit of the Company, provided it is assumed from
the general progress of the company affairs, that the management thereof is not carried out in accordance with the
principles of honesty and prudence. The last section of par. 3 of article 142 of L. 4548/2018 shall not be applicable.
13. Shareholders who make a request in accordance with par. 11 and 12, must provide evidence to the Court that they are
in possession of the shares, in conjunction with article 22 of the Articles of Incorporation, granting them the right to request
the audit of the Company.
14. Without prejudice to the provisions on personal data protection, any shareholder may request a list of the Company's
shareholders, bearing the name and the address of each shareholder as well as the number of shares held by each
shareholder. The Company shall not be obliged to include in this list shareholders holding up to 1% of the share capital.
15. Within ten (10) days as of the publication of the announcement concerning the granting of permission by the Board of
Directors under par. 2 of article 101 of L. 4548/2018, shareholders representing one twentieth (1/20) of the capital may
request the convocation of a General Meeting in order to decide on the granting of such permission.
X. Description of the Sustainable Development Policy that the Company implements
PPC's Sustainable Development Policy is the basic framework of the Company's commitment to the continuous effort to
improve the economic, environmental and social value it creates, for those who have legitimate interests from its operation,
but also for society as a whole.
PPC's strategic philosophy is summarized in the slogan "Creating Shared Value", i.e. the creation and measurement (total
value) of the shared benefit between business, society and the environment, which will result from the transformation of the
Company’s value chain and operation, and the formation of a new corporate culture, guided by Sustainable Development and
the principles of the circular economy, wherever they can be applied.
That is why we approach Sustainable Development in full alignment with our business model and its transformation needs,
investing in integrated, innovative and high quality services and products, shaping a better working environment and mutually
beneficial relationships, on the axes of economic growth (Profit) Environmental Welfare (Planet) and Social Welfare (People).
PPC, the company that has played a leading role in our country’s development for the last 70 years, operates in constant
harmonization with the best international practices and trends.
It closely monitors the global developments, the challenges and the commitments that our country has undertaken and aspires
to become a pioneer in its field in Southeastern Europe, with the aim to become an example of sustainable development for
the wider region.
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The Company develops, integrates and gradually implements a Sustainable Development Policy, which contributes: (a) to the
Company’s strengthening (b) to the country’s energy transformation through a fair development transition within context of the
Green Deal implementation, and (c) to the Group’s development in Southeastern Europe.
The pillars of our broader strategy are the strengthening of the customer-centricity of the Company’s structures, with a focus
on the needs of the wider Greek society, the digitalization and operational efficiency, the expansion into new activities and the
protection of biodiversity and the environment.
The aim of our Sustainable Development Policy is for PPC to be a reference point for the employees, who either work in it or
want to work in a company that will operate based on the principles of the Sustainable Development Policy followed by the
Company. At the same time, another goal is to attract more investment funds and investors who will boost the Company’s
transformation plan.
In this context, PPC is committed to monitor and to be evaluated on the basis of the international Environment - Social -
Governance (ESG) criteria and standards, with the ultimate goal of transparency and the update of all stakeholders (including
financial institutions) about its performance on climate change and sustainable development issues.
PPC lays the foundations for the integration of the Sustainable Development Policy at Group level also, with the gradual
harmonization and adoption of the Principles of this Policy by its subsidiaries.
Finally, PPC, based on best practices regarding the transparency and self-commitment of organizations on issues of
Sustainable Development and Responsible Entrepreneurship, prepares an annual Sustainability Report based on international
standards, which includes (a) the Group's strategy in the field of Sustainable Development, which is based on the analysis of
material and other recognized Sustainable Development issues, opportunities and risks related to the Group’s business model
and in relation to the environment in which it operates, (b) the programs it implements, (c) their results, (d) the commitments
it has made, (e) the objectives it sets, and (f) the data / indicators it has an obligation to monitor and make public, in order to
inform all stakeholders, in full transparency, reliability, consistency and continuity for the coming years.
Our principles
PPC is committed to adhering to the principles of responsible entrepreneurship and Sustainable Development:
• Social responsibility
• Transparency and Integrity
• Flexibility, resilience and adaptability
• Responding to the interests and aspirations of all stakeholders
• Adherence to the current regulatory framework
• Respect for the international rules of proper professional operation and professional ethics
• Respect for human rights
• Protection of the Environment and Biodiversity
• Dealing with the phenomenon of Climate Change
• Promoting Innovation and research
• Integration of the Circular Economy principles
Structure, Mission and Actions
In June 2021, following a decision made by the CEO of PPC S.A., PPC proceeded to the establishment and formation of the
Sustainable Development Department (SDD), directly falling under the CEO, and a Director of the SDD was appointed,
following a Public Vacancy Notice (July 2021).
Prior to the formal establishment of the Department, the key functions regarding Sustainable Development were performed by
the CSR and Sustainable Development Section, part of the Corporate Affairs and Communications Department, which was
primarily responsible for the CSR Annual Report and the subsequent Sustainability Report. From 2020, a basic group of
specialized Management Consultants began to lay the foundations for the establishment of the separate SDD.
120
The mission of the SDD is the following:
• Contributing to the formulation of strategy, policy, practices, standards, operations and products / services based on
the Sustainable Development principles and the creation and measurement of the shared benefit and value (Creating
Shared Value) that results for the benefit of all stakeholders, the environment, society, customers and the Group’s
employees. Contributing to the creation of the culture that the transformation of the Group needs in order to become
more resilient and to better respond to the management of risks and opportunities (climate crisis, energy
transformation).
• Implementing international best practices, standards and systems based on the sustainable development principles,
including the appropriate non-financial reporting and disclosure ESG - INDICATORS frameworks in cooperation with
the Company's financial services and all relevant Divisions/BUs that set goals and provide data on a record – report
– reduce basis, in order to publish indicators that help the Company raise funds from the markets (EU taxonomy for
greater transparency to identify sustainable investment opportunities).
At the same time, the SDD is in the process of establishing a strategy and elaborating a sustainable development action plan
based on Creating Shared Value (CSV) with the aim of their comprehensive integration in the business strategy, the
operational model, the value chain and the action plan of PPC and the wider Group.
Part of this project is the full implementation of the Environmental and Social Action Plan (ESAP), which was established in
the framework of PPC’s cooperation with the European Bank for Reconstruction and Development (EBRD) and which includes
a series of measures, policies and practices concerning the Company’s environmental, social / labor and corporate
governance. ESAP also includes the full integration and compliance with the recommendations for the disclosure of climate-
related financial information to the Task Force on Climate Related Financial Disclosures (TCFD) of the Financial Stability
Board, as well as the transformation of all the pillars of the recommendation framework (Governance, Strategy, Risk
Management, Measurement and Objectives) in order to optimize the management of risks related to Climate Change.
Furthermore, the Company has Codes, Policies and Procedures for dealing with corporate risks, for the management of
compliance and sustainable development issues, which are subject to periodic review, in order to comply with the respective
best practices. Finally, PPC has developed quality management, health & safety and environmental management systems,
which have been certified according to the standards ISO 9001, OHSAS 18001 (or ISO 45001 as appropriate) and ISO 14001
standards, respectively, aiming at its optimal operation.
XI. Non - Financial Information
The Non - Financial Information is presented in a different section and includes the following:
• Reference of the risks related in the long run sustainability of the Company
• Reference of the standards the Company is following regarding the disclosure of such non-financial information
• Information related to article 8 of EU regulation 2020/852 of the European Parliament and Council on June 18, 2020,
regarding the establishment of the framework for the ease of sustainable investments, as well as information
regarding the authorization of EU regulation 2021/2178 of the Committee on July 16, 2021 for the completion of
2020/852 Regulation
• Issues related with climate change
• Issues related to the consequences caused by the COVID-19 pandemic on non-financial matters and the related
actions that took place.
121
ANNEX
1. Curriculum Vitae of the Company’s senior managers and members of its Committees
Kopanakis Ioannis, Deputy CEO of Production Operations
Mr. Ioannis Kopanakis has been the Chief Development Officer of PPC S.A. since January 10, 2017. From September 1 ,2009
he served as Chief Generation Officer and from 2007 he served as Director of the Thermal Power Plants Operation
Department. During the previous six years he had served as Director of the Planning and Performance Department of the
Generation Business Unit, whereas, since joining PPC in 1985 and for sixteen years he had been working as Senior Engineer,
Maintenance Supervisor and Thermal Power Plant Manager. He holds a diploma in Electrical Engineering from the Aristotle
University of Thessaloniki and an MBA degree from the Nottingham Trend University.
Chief Officers
Economou Argiris, General Counsel - Chief Legal Officer for Legal Affairs and Corporate Governance
Mr. Econonou has been the General Counsel of the Company since February 1st, 2005. Before that, he was managing partner
at “Stratigis & Associates” Law Firm and had served as legal counsel in various companies of both the private and public
sector. Along with his capacity as General Counsel, he was since 2005 also acting as the Director of the Legal Department.
Since 24.9.2019 he has also been appointed as Chief Legal Officer for Legal Affairs and Corporate Governance. He has been
an alternate member on the Hellenic Competition Commission, Chairman of Eurelectric’s Legal Affairs Working Group,
Member of the Board of Directors of TAYTEKO (Insurance Fund of Bank and Public Utilities Employees) and “Egnatia Odos
S.A.”. Since 2014 he has beenSecretary General of the Hellenic Association of Energy Law. He has been member of various
law drafting committees on listed Societes Anonymes and has published various articles and studies on Corporate
Governance, Compliance and Energy Law issues.
Damaskos George, Chief Human Resources & Organization Officer
Mr. Damaskos has been Chief Officer of the Human Resources Division since January 8, 2013. Mr. Damaskos joined the
company in 1987. For 16 consecutive years since his recruitment he has served as Head of various front-line operating units
of the former Distribution Division (currently known as Hellenic Electricity Distribution Network Operator). From 2002 to 2006
he was Head of the company’s Tariffs Section.
He has held the position of Director of the Corporate Development and Administration Department (currently Strategy
Department and Office of the Executive), as well as the position of Director of Planning and Human Resources of the
Commercial Activities Division. From 2008 until his assignment in the position of Chief Officer of Human Resources, he was
Director of Human Resources and Organization of the Company. From 2008 to 2011, along with his duties at PPC, he was
member of the Board of Directors of the Insurance Fund for Bank and Utility Companies Employees (TAYTEKO) as
representative of the employers, on behalf of the Company. He also served as member of the Executive Committee of IKA-
ETAM/PPC Personnel Insurance Sector (TAP-DEH).
Prior to joining PPC he worked in the private sector, in the construction industry, and he was specialized in the implementation
of PPC projects, thus acquiring a significant construction and site experience. Mr. George Damaskos is an Electrical Engineer,
member of the Technical Chamber of Greece, and holds a degree in Economic Sciences from the Economics Department of
the Faculty of Law, Economics and Political Sciences of the Athens University. He also holds an MBA degree in Business
Administration from the Kingston Business School (Kingston University).
Alexandridis Konstantinos, Chief Financial Officer
Mr. Alexandridis is an economist with many years’ experience in the Financial Management of large listed companies, having
served as senior executive at OTE Group (member of Deutsche Telekom Group).
He holds a Bachelor of Science in Mathematics from the University of Ioannina, an MSc in Decision Modelling and Information
Systems from Brunel University UK and an International MBA from the Athens University of Economics and Business.
122
Aravantinos Nikolaos, Chief Support Operations Officer
Mr. Aravantinos has been Chief Officer of the Support Operations Division since April 1, 2012.
Mr. Aravantinos joined PPC in 1984 and since then has served in various positions in the Company. He worked for five years
as an executive in the Distribution Division and then moved to the Information Technology (IT) Department, where he held
both technical and managerial positions. From 2001 to 2011 he served as Director of the IT Department and from February 1,
2011 until March 31,2012 as Chief Officer of the Distribution Division.
Mr. Aravantinos holds a diploma in Mechanical and Electrical Engineering from the National Technical University of Athens
and a MSc degree in Computer Science (Diplôme d' Etudes Approfondies en Informatique, Université Pierre et Marie Curie -
Paris VI) and Management (Master of Business Administration, Brunel University).
Hadjimichael Sotirios, Chief Strategy & Transformation Officer
Dr. Sotirios Hadjimichael has been working at PPC S.A. for the past 33 years. Prior to his appointment as Chief Strategy &
Transformation Officer, he held important positions and acquired experience in a wide range of activities of PPC, the
Transmission Network, the Electricity Market operation, etc.
In particular he worked:
- In 1986 in the Planning Department, where he was involved in the Transmission Systems Plans, the elaboration of the
Transmission System Development Plan, etc.
- In 1995, in the Purchasing Department, as Inspection Engineer, where he dealt with Inspection-Testing-Material Acceptance
issues, acquiring significant experience on a multitude of materials and machineries of PPC, as well as on purchasing
procedures.
- In 2000, at the Executive Office of PPC as Advisor, where he was involved in a variety of issues falling within the competence
of the Chairman.
- In 2002 he was promoted to the position of Head of the New Business Activities Section of the Strategy Department. He was
involved in the development of new activities, the expansion in new markets outside Greece, etc.
- In 2008, in the Testing, Research & Standards Center (TRSC) he worked as Head of the Research Programmes Section,
where he was involved in the central organisation of PPC’s participation in Research Programmes.
- In 2010 he was promoted to the position of PPC Executive Office Director. This position involves a wide range of activities
in all PPC fields, as well as participation in the Board of Directors and in the Executive Committee of PPC.
- In 2015 he was appointed as Director of the Strategy Department, where he has been involved in a variety of activities
ranging from the elaboration of the new Strategic Plan of the Company, the coordination of Regulatory Issues, the strategy
planning in matters of Electricity Market, the development of PPC’s CSR, the sale of the HTSO (ADMIE), etc.
In 1978 he graduated from the Varvakeio Experimental School of Athens. In 1984 he was awarded his Diploma in Electrical
Engineering specialising in Power Engineering, from the National Technical University of Athens and in 1993 his PhD degree
from the Imperial College focusing on energy and RES matters.
Bali Efthymia, Chief Sales Officer
Ms. Bali has been working in PPC since May 1990. In 2007, she undertook the position of Head of Subsection the Keratsini
Sales Office, before the distinction between Commercial Activities and Network. In 2008, with the creation of the Supply
Business Division, she was appointed as Head (Director) of the Piraeus Sales Section and was involved in the setting up of
the first sales offices of the newly established Division. In June, 2014 she was appointed as Head of Unit of the Attica Retail
Department and in August, 2017 she was promoted to Director of the Department. She has been involved in customer service
as well as in the implementation of the tariff and commercial policy of the Company, and its procedures in general. Furthermore,
from 2014 until today, in addition to the aforementioned issues, she has dealt with the overdue receivables issue and the
methods to tackle it. She holds a Diploma from the School of Political Science and Public Administration of the National and
Kapodistrian University of Athens. Before her recruitment by PPC, she worked for two years as an HR Manager in a private
company.
123
Tsagiannis Ioannis, Chief Customer Management Officer
Mr. Ioannis Tsagiannis holds a Diploma from the Department of Primary Education of the National and Kapodistrian University
of Athens.
He has served for 23 years in various managerial positions, in the private sector, in the customer service sector in
telecommunications such as Director of Customer Service, Chief Officer of Customer Relationships and Chief Officer of
Customer Experience Configuration.
He has great experience in the customer management sector, having achieved for a number of years to combine the
knowledge of commercial procedures with change management, in the sector of organization and management of populous
service groups, with optimal results.
Metikanis Dimitrios, Chief Officer of Lignite Generation Business Unit
Mr. Dimitrios Metikanis was appointed Chief Generation Officer on January 10, 2017. Mr. Metikanis has been a member of
PPC staff since 1986; his career set off at Ptolemais Thermal Power Plant, where he remained for more than five years,
therefore gaining significant know-how in the operation of thermal Power Plants. Thereafter, he was appointed in several
technical and administrative positions in the Generation Division, holding posts in the Generation Exploitation Department and
the Materials, Fuel and Purchasing Department (1992-2007), as well as in the Materials, Fuel Purchasing and Logistics
Department (2007-2008) of the Finance Division. During his term in the above-mentioned Departments, he gained experience
in dealing with various projects regarding, among others, power plants’ operation and environmental affairs, as well as fuels’
purchasing and management (lignite, coal, oil and natural gas).
In May 2008 he was appointed Director of Generation Planning and Performance Department, vested with a series of
competencies, ranging from the development of Generation's Strategic and Business Plan, the Units’ operational planning up
to the monitoring of their operational and financial efficiency. Prior to joining PPC he worked in the pharmaceutical industry.
Mr. Metikanis holds a diploma in Chemical Engineering from the National Technical University of Athens (NTUA), as well as
an MBA degree.
Karagiannis Fotios, Chief Thermal and Hydro Generation Officer
Mr. Fotios Karagiannis is a Mechanical Engineer of the National Technical University of Athens (1982) and holds two Msc
degrees from the Ecole Nationale Supérieure de l’Aéronautique et de l’Espace (E.N.S.A.E.) in Toulouse, France. In 1987 he
obtained the Doctorat de l'E.N.S.A.E. (grade "Très honorable"). After that, he worked for 5 years as a post-doc Researcher in
the Laboratory of Thermal Turbomachinery of the National Technical University of Athens.
In 1992 he joined the PPC, where he held various managerial positions. On December of 2006 he was appointed as Director
of the CEO’s Office and then as Director of the Hydroelectric Projects Development Department. In 2008 he was appointed
as Director of the Thermal Projects Engineering and Construction Department. In 2017, he was appointed as Director of the
Business Development Implementation Department and then as Director of the New Products & Services Development &
Promotion Department. In 2019 he was appointed as Director of the Support of Generation Business Department, while
inFebruary 2020 he was appointed to the position of Chief Thermal and Hydro Generation Officer.
Zagalikis Konstantinos, Chief Digital Systems Development and Operations Officer
Mr. Konstantinos Zagalikis has many years of experience in the field of consulting and IT services, with particular emphasis
on digital transformation.
He has held important managerial positions in Vodafone and IBM Hellas. Following that, he moved to Printec Group where he
was responsible for the technological implementation of solutions in Greece and Southeast Europe, while later on, he was
appointed as CIO in Forthnet- Nova. He held one of the leading parts in the transformation of information systems (BSS-OSS)
in Huawei, for DU Telecommunications in Dubai. Until recently he held the post of Operations Director in Tech Mahindra,
where he was responsible for the cloud transformation of the existing infrastructure for Celcom Telecommunications in
Malaysia.
He holds a B.Eng. in Computer Systems Engineering from the University of Sussex in the UK and a M.Sc in
Telecommunications and Information Systems from the University of Essex in the UK.
124
Kofinas Kyriakos, Chief E–Mobility Officer
Mr. Kyriakos Kofinas has 27 years of Executive Career in Europe, Middle East, Africa and Asia. He held positions as Regional
CEO, Chief Officer, Principal and as Head Coach in the sectors of FMCG, Medical, Retail, Luxury, Executive Search, and in
e-Mobility.
He holds a BA in Economics from the University of Athens, an ΜΒΑ from the Manchester Business School and an MSc in E-
Commerce from the Athens University of Economics and Business. He is also a certified Executive & Business Coach.
Nazos Konstantinos, Chief Energy Management and Trading Officer
Mr. Konstantinos Nazos was appointed as Chief Energy Management & Trading Officer on December 17, 2020.He joined
PPC S.A. in 2004 and since then, he has been working in the Department of Energy Management & Trading acquiring
significant experience in the whole spectrum of energy management activities, with significant specialization in the areas of
electricity markets analysis and modeling, bidding strategies analysis, optimization and risk management of complex energy
portfolios and cross-border electricity trading.
From July 2010, and for eight years, he served as Head of the Market Analysis Section and then he was promoted to the
position of Assistant Director of Market Analysis Unit. In June 2020 he was appointed as Assistant Director of the Department
of Energy Management & Trading, having among others the responsibility for managing the Department’s transformation
towards the transition of the Greek electricity market to the EU Target Model.
In 2016, along with his duties in PPC, he was a member of the Board of Directors of the Insurance Fund for Bank and Utility
Companies Employees (TAYTEKO), as representative of the employers, on behalf of the Company. Additionally, he was
actively engaged in the establishment of the subsidiary company PPC Albania in 2016, in which he took the role of Executive
Director and Vice Chair of the Board, from 2016 to 2019. Before joining PPC S.A., he worked for 7 years as production and
maintenance engineer in the aluminum rolling industry and in the home appliances industry, thus acquiring significant industrial
experience. Mr. Konstantinos Nazos holds a diploma in Mechanical Engineering from the National Technical University of
Athens (1994), as well as an MBA degree (Executive MBA) from Athens University of Economics and Business.
Mentzos Vassilis, Chief Project & Customer Experience Officer
Mr. Vassilis Mentzos is a PMO executive and business transformation expert with international experience in leading and
managing major complex projects. During his 20-year career, he has held roles of increased responsibility mainly in telecom
operators (Wind Hellas & Vodafone UK) where he led their network development activities. From 2018 to 2020 he led the 5G
Network Deployment Programme for Vodafone UK in London. Until recently he held the position of the PMO Director for all
commercial activities at PPC.
He holds a Diploma (MEng) in Civil Engineering from the Polytechnic School of the Democritus University of Thrace.
Spanos Aggelos, Chief Marketing and Products Officer
Mr. Aggelos Spanos has a more than 22 years career, spanning across a multitude of business areas, predominantly in
Product Marketing, New Business development, customer experience, project & demand management, budget management
and Technology. Being in managerial positions for 15 years both abroad (Vodafone Albania) and in Greece (Vodafone Greece)
and having led large-scale product development or transformational projects, he brings vast managerial experience in subject
areas. He joined PPC as Director of Marketing and Pricing in April 2020.
He holds a BSc in Physics and a Telecommunications MSc from National and Kapodistrian University of Athens (NKUA), while
being awarded multiple additional certifications (Business Administration from AUEB, PRINCE II project management
Practitioner, crisis & change management etc).
125
2. Shares held by the senior executives of the Company
The following table lists the number of shares held by the Company's Executive Officers on 31.12.2021 in accordance with
par. 3 article 18 of L. 4706/2020.
Name of Executive Officer
Position in the Company
Number of Shares owned at
31.12.2021
Ioannis Kopanakis
Deputy CEO of Production Operations
0
Anargyros Oikonomou
General Counsel and Chief Legal
Affairs and Corporate Governance
Officer
0
Sotiris Hadjimichael
Chief Strategy & Transformation Officer
0
Konstantinos Zagalikis
Chief Digital Systems Development and
Operations Officer
0
Konstantinos Nazos
Chief Energy Management & Trading
Officer
234
Kyriakos Kofinas
Chief E–Mobility Officer
0
Konstantinos Alexandridis
Chief Financial Officer
4,000
George Damaskos
Chief Human Resources &
Organization Officer
0
Nikolaos Aravantinos
Chief Support Operations Officer
2,464
Dimitrios Metikanis
Chief Generation Officer
567
Fotios Karagiannis
Chief Thermal and Hydro Generation
Officer
0
Efthymia Bali
Chief Sales Officer
0
Ioannis Tsagiannis
Chief Customer Management Officer
0
Aggelos Spanos
Chief Marketing and Products Officer
0
Vasilis Mentzos
Chief Project & Customer Experience
Officer
0
Note: The shares of Mrs. Metikanis and Aravantinos were acquired in installments from 2001 to 2004. Similarly, for Mr. Nazos,
the shares were acquired in installments from 2017 to 2021.
126
APENDIX
Definitions and reconciliations of Alternative Performance Measures (“APMs”)
ALTERNATIVE PERFORMANCE MEASURES (“APMs”)
The Group and the Parent Company use Alternative Performance Measures («APMs") in taking decisions concerning the
financial, operational and strategic planning, as well as for the evaluation and publication of their performance. These APMs
serve to better understand the financial and operating results of the Group and the Parent Company, their financial position
and cash flows. Alternative indicators (APMs) should always be read in conjunction with the financial results that have been
prepared in accordance with IFRS and in no way replace them.
Alternative Performance Measures (“APMs”)
In discussing the Group’s and the Parent Company’s performance, “adjusted” measures are used such as: EBITDA Recurring
without one off effects and EBITDA Recurring margin % without one off effects as well as Profit / (Loss) without one-off effects.
These adjusted measures are calculated by deducting from performance measures directly derived from amounts of the
annual Financial Statement the effect and costs arising from events which have occurred during the reporting period and which
have not affected the amounts of previous periods.
EBITDA (Operating Income before depreciation and impairment, net financial expenses and taxes).
EBITDA serves to better analyze the operating results of the Group and the Parent Company and is calculated as follows:
Total turnover minus total operating expenses before depreciation and impairment. The EBITDA margin (%) is calculated by
dividing EBITDA by total turnover. Calculation of EBITDA and EBITDA margin is presented in Table A.
Operating Expenditure before tax, depreciation and impairment, net financial expenses, profit/(loss) from sale of
related companies and taxes excluding one off effects
This measure is calculated by subtracting the one-off effects mentioned in the EBITDA Recurring note below, from the EBITDA
measure. It is presented in Table B.
EBITDA Recurring (Operating Income before depreciation and impairment, net financial expenses and taxes).
EBITDA Recurring serves to better analyze the Group's and the Parent Company’s operating income, excluding the impact of
one-off effects. For the year 2021, the one-off effects that affected EBITDA Recurring are as follows : a) a provision for
allowance for employees’ severance payments amounting to € 16,075 thousand for the Group and € 13,591 thousand for the
Parent Company (negative impact), b) a retroactive charge due to recovery of special allowances from the implementation of
the Collecctive Labour Agreement 2021-2024 amounting to € 34,555 thousand for the Group and € 22,074 thousand for the
Parent Company (negative effect)
EBITDA Recurring Margin (%) is measured by dividing EBITDA Recurring by Total Turnover Recurring. EBITDA Recurring
and EBITDA Recurring margin are presented in Table C.
EBIT (Operating Income before net financial expenses and taxes)
EBIT serves to better analyze the Group’s and the Parent Company’s operating results and is calculated as follows: EBITDA
(Operating Income before depreciation and impairment, net financial expenses and taxes) less depreciation and impairment.
EBIT margin (%) is calculated by dividing EBIT with total turnover. Calculation of EBIT and EBIT margin is presented in Table
D.
127
Net amount of Depreciation, Financial Expense and Profit from Subsidiaries and Associates.
This Index is calculated as the net amount of depreciation expense, net financial expenses and profits/ (losses) from the
Group's subsidiaries and associates. The detailed calculation is presented in Table E.
Net Debt
Net debt is an APM that Management uses to evaluate the capital structure of the Group and the Parent Company as well as
leverage. Net debt is calculated by adding long-term loans, the current portion of long term loans and short term loans and
subtracting from the total, cash and cash equivalents, restricted cash related to loan agreements and financial assets
measured at fair value through other comprehensive income and adding the unamortized portion of borrowing costs (see,
Note, 30 Annual Financial Statements). Calculation of Net Debt is presented in Table F.
128
TABLE A - EBITDA (Operating Income before depreciation, amortization and impairment, net financial expenses and taxes)
Total Group
01.01-31.12.2021
Total Group 01.01-
31.12.2020
RESTATED
Total Group
01.10-31.12.2021
Total Group 01.10-
31.12.2020
RESTATED
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Total Turnover (1)
5,706,391
4,649,444
2,008,848
1,129,334
less :
Operating expenses before depreciation and
impairment (2)
4,885,334
3,849,600
1,764,622
1,037,820
Payroll cost
730,371
713,609
198,103
161,877
Lignite
41,104
49,584
(1,294)
21,244
Liquid Fuels
537,003
462,515
126,779
105,004
Natural Gas
910,068
297,858
457,334
91,895
Energy purchases
1,286,722
1,117,863
552,739
270,306
Materials and consumables
121,643
110,923
26,802
30,507
Transmission system usage
129,257
135,836
32,696
31,105
Distribution system usage
-
-
-
-
Utilities and maintenance
180,212
199,769
42,313
54,918
Third party fees
141,812
113,260
36,102
34,185
CO2 emission rights
699,164
393,486
159,721
130,386
Risk allowances
88,847
38,608
41,976
16,750
Provisions for impairment of materials
25,762
86,336
5,929
15,491
Provisions for bad debt
(59,740)
61,946
89,976
16,998
Other Losses / (Gains), Net
53,109
68,007
(4,554)
57,154
EBITDA (Α) = [(1) - (2)]
821,057
799,844
244,226
91,514
EBITDA MARGIN [(Α) / (1)]
14.4%
17.2%
12.2%
8.1%
129
TABLE A - EBITDA (Operating Income before depreciation, amortization and impairment, net financial expenses and taxes
Total Company
01.01-31.12.2021
Company
Continuing
Operations
01.01-31.12.2021
Company
Discontinued
Operations
01.01-30.11.2021
Total Company
01.01-31.12.2020
RESTATED
Company Continuing
Operations 01.01-
31.12.2020
RESTATED
Company
Discontinued
Operations 01.01-
31.12.2020
RESTATED
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Total Turnover (1)
5,399,475
5,308,439
91,036
4,395,829
4,300,183
95,646
less :
Operating expenses before depreciation and
impairment (2)
4,583,957
4,828,347
(244,390)
3,515,328
3,781,498
(266,170)
Payroll cost
412,094
412,094
-
411,274
411,274
-
Lignite
21,323
21,323
-
20,997
20,997
-
Liquid Fuels
530,825
530,825
-
455,849
455,849
-
Natural Gas
910,068
910,068
-
297,858
297,858
-
Energy purchases
1,487,577
1,487,577
-
1,215,330
1,215,330
-
Materials and consumables
71,650
71,650
-
58,363
58,363
-
Transmission system usage
129,257
129,257
-
135,775
135,775
-
Distribution system usage
220,588
459,293
(238,705)
223,802
483,134
(259,332)
Utilities and maintenance
109,651
109,651
-
122,850
122,850
-
Third party fees
89,035
89,035
-
79,800
79,800
-
CO2 emission rights
573,793
573,793
-
327,861
327,861
-
Risk allowances
105,430
105,430
-
43,074
43,074
-
Provisions for impairment of materials
24,272
24,272
-
62,455
62,455
-
Provisions for bad debt
(108,938)
(108,938)
-
36,652
36,652
-
Other Losses / (Gains), Net
7,332
13,017
(5,685)
23,388
30,226
(6,838)
EBITDA (Α) = [(1) - (2)]
815,518
480,092
335,426
880,501
518,685
361,816
EBITDA MARGIN [(Α) / (1)]
15.1%
9.0%
368.5%
20.0%
12.1%
378.3%
130
TABLE A - EBITDA (Operating Income before depreciation, amortization and impairment, net financial expenses and taxes
Total Company
01.10-31.12.2021
Company
Continuing
Operations 01.10-
31.12.2021
Company
Discontinued
Operations 01.10-
30.11.2021
Total Company
01.10-31.12.2020
RESTATED
Company
Continuing
Operations 01.10-
31.12.2020
RESTATED
Company
Diacontinued
Operations 01.10-
31.12.2020
RESTATED
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Total Turnover (1)
1,923,538
1,906,768
16,770
1,060,763
1,036,656
24,107
less :
Operating expenses before depreciation and
impairment (2)
1,672,689
1,714,330
(41,641)
970,419
1,008,051
-37,632
Payroll cost
109,900
109,900
-
83,896
83,896
-
Lignite
(335)
(335)
-
5,600
5,600
-
Liquid Fuels
123,999
123,999
-
102,123
102,123
-
Natural Gas
457,334
457,334
-
91,895
91,895
-
Energy purchases
604,898
604,898
-
307,216
307,216
-
Materials and consumables
14,584
14,584
-
15,896
15,896
-
Transmission system usage
32,696
32,696
-
31,091
31,091
-
Distribution system usage
68,839
109,273
(40,434)
64,047
99,955
(35,908)
Utilities and maintenance
28,911
28,911
-
32,790
32,790
-
Third party fees
20,153
20,153
-
27,478
27,478
-
CO2 emission rights
138,364
138,364
-
110,758
110,758
-
Risk allowances
65,975
65,975
-
18,440
18,440
-
Provisions for impairment of materials
7,267
7,267
-
14,855
14,855
-
Provisions for bad debt
15,495
15,495
-
21,525
21,525
-
Other Losses / (Gains), Net
(15,391)
(14,184)
(1,207)
42,809
44,533
(1,724)
EBITDA (Α) = [(1) - (2)]
250,849
192,438
58,411
90,344
28,605
61,739
EBITDA MARGIN [(Α) / (1)]
13.0%
10.1%
348.3%
8.5%
2.8%
256.1%
131
TABLE B- Operating Expenditure before tax, depreciation and impairment, net financial expenses, profit/(loss) from sale of
related companies and taxes excluding one off effects
Total Group
01.01-31.12.2021
Total Group
01.01-31.12.2020
RESTATED
Total Group
01.10-31.12.2021
Total Group
01.10-31.12.2020
RESTATED
Notes
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Operating expenses before depreciation and
impairment (2)
4,885,334
3,849,600
1,764,622
1,037,820
MINUS :
Provision for allowance for employees’ severance
payments
16,075
35,830
1,154
3,340
Note 7, 31 of the Annual
Financial Report 2021
Retroactive charge due to recovery of special
allowances from the implementation of the Collective
Labour Agreement 2021-2024
34,555
-
(101)
-
Note 7, 31 of the Annual
Financial Report 2021
Extraordinary one-off charge of electricity suppliers for
the Renewables Special Account
-
72,863
-
72,863
Note 8 of the Annual Financial
Report 2021
Extraordinary one-off charge for Renewable Energy
stations. and S.I.TH.Y.A. electricity producers for the
Renewables Special Account
-
1,444
-
1,444
Note 13 of the Annual Finacial
Report 2021
Cost revision of the natural gas pipeline for the years
2012-2019
-
(44,773)
-
-
Note 13 of the Annual Finacial
Report 2021
Operating expenses before depreciation and
impairment without one-off effects (2)
4,834,704
3,784,236
1,763,569
960,173
132
TABLE B- Operating Expenditure before tax, depreciation and impairment, net financial expenses, profit/(loss) from sale of related
companies and taxes excluding one off effects
Total Company
01.01-31.12.2021
Company
Continuing
Operations
01.01-31.12.2021
Company
Discontinued
Operations
01.01-30.11.2021
Total Company
01.01-31.12.2020
RESTATED
Company
Continuing
Operations
01.01-31.12.2020
RESTATED
Company
Discontinued
Operations
01.01-31.12.2020
RESTATED
Notes
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Operating expenses before
depreciation and impairment (2)
4,583,957
4,828,347
(244,390)
3,515,328
3,781,498
(266,170)
MINUS :
Provision for allowance for employees’
severance payments
13,591
13,591
-
22,576
22,576
-
Note 7, 31 of the Annual
Financial Report 2021
Retroactive charge due to recovery of
special allowances from the
implementation of the Collecctive
Labour Agreement 2021-2024
22,074
22,074
-
-
-
-
Note 7, 31 of the Annual
Financial Report 2021
Extraordinary one-off charge of
electricity suppliers for the Renewables
Special Account
-
-
-
72,863
72,863
-
Note 8 of the Annual
Financial Report 2021
Extraordinary one-off charge for
Renewable Energy stations. and
S.I.TH.Y.A. electricity producers for the
Renewables Special Account
-
-
-
-
-
-
Note 8 of the Annual
Financial Report 2021
Cost revision of the natural gas pipeline
for the years 2012-2019
-
-
(44,773)
(44,473)
-
Note 13 of the Annual
Finacial Report 2021
Operating expenses before
depreciation and impairment
without one-off effects (2)
4,548,292
4,792,682
(244,390)
3,464,662
3,730,532
(266,170)
133
TABLE B- Operating Expenditure before tax, depreciation and impairment, net financial expenses, profit/(loss) from sale of related
companies and taxes excluding one off effects
Total Company
01.10-31.12.2021
Company
Continuing
Operations
01.10-31.12.2021
Company
Discontinued
Operations 01.10-
30.11.2021
Total Company
01.10-31.12.2020
RESTATED
Company
Continuing
Operations
01.10-31.12.2020
RESTATED
Company
Discontinued
Operations 01.10-
31.12.2020
RESTATED
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Operating expenses before
depreciation and impairment (2)
1,672,689
1,714,330
(41,641)
970,419
1,008,051
(37,632)
MINUS :
Provision for allowance for employees’
severance payments
1,700
1,700
-
(3,929)
(3,929)
-
Retroactive charge due to recovery of
special allowances from the
implementation of the Collecctive Labour
Agreement 2021-2024
(104)
(104)
-
-
-
-
Extraordinary one-off charge of electricity
suppliers for the Renewables Special
Account
-
-
-
72,863
72,863
-
Extraordinary one-off charge for
Renewable Energy stations. and
S.I.TH.Y.A. electricity producers for the
Renewables Special Account
-
-
-
-
-
-
Cost revision of the natural gas pipeline
for the years 2012-2019
-
-
-
-
-
-
Operating expenses before
depreciation and impairment without
one-off effects (2)
1,671,093
1,712,734
(41,641)
901,485
939,117
(37,632)
134
TABLE C- EBITDA Recurring (Operating Income before depreciation and impairment, net financial expenses and taxes).
Total Group 01.01-
31.12.2021
Total Group 01.01-
31.12.2020
RESTATED
Total Group 01.10-
31.12.2021
Total Group 01.10-
31.12.2020
RESTATED
Notes
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
EBITDA (1)
821,057
799,844
244,226
91,514
Plus one-of effects (2):
50,630
65,364
1,053
77,647
Provision for allowance for employees’
severance payments
16,075
35,830
1,154
3,340
Note 7, 31 of the Annual
Financial Report 2021
Retroactive charge due to recovery of special
allowances from the implementation of the
Collecctive Labour Agreement 2021-2024
34,555
-
(101)
-
Note 7, 31 of the Annual
Financial Report 2021
Extraordinary one-off charge of electricity
suppliers for the Renewables Special Account
-
72,863
-
72,863
Note 8 of the Annual Financial
Report 2021
Extraordinary one-off charge for Renewable
Energy stations. and S.I.TH.Y.A. electricity
producers for the Renewables Special Account
-
1,444
-
1,444
Note 8 of the Annual Financial
Report 2021
Cost revision of the natural gas pipeline for the
years 2012-2019
-
(44,773)
-
-
Note 13 of the Annual Finacial
Report 2021
EBITDA Recurring excluding one-off effects
(3) = [(1)+(2)]
871,687
865,208
245,279
169,161
Total Turnover (4)
5,706,391
4,649,444
2,008,848
1,129,334
EBITDA Recurring margin excluding one-off
effects (3)/(4)
15.3%
18.6%
12.2%
15.0%
135
TABLE C- EBITDA Recurring (Operating Income before depreciation and impairment, net financial expenses and taxes).
Total Company
01.01-31.12.2021
Company
Continuing
Operations 01.01-
31.12.2021
Company
Discontinued
Operations 01.01-
30.11.2021
Total Company
01.10-31.12.2020
RESTATED
Company Continuing
Operations 01.01-
31.12.2020 RESTATED
Company
Discontinued
Operations 01.01-
31.12.2020
RESTATED
Notes
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
EBITDA (1)
815,518
480,092
335,426
880,501
518,685
361,816
Plus one-of effects (2):
35,665
35,665
0
50,666
50,966
0
Provision for allowance for
employees’ severance payments
13,591
13,591
-
22,576
22,576
-
Note 7, 31 of the Annual
Financial Report 2021
Retroactive charge due to recovery
of special allowances from the
implementation of the Collective
Labour Agreement 2021-2024
22,074
22,074
-
-
-
-
Note 7, 31 of the Annual
Financial Report 2021
Extraordinary one-off charge of
electricity suppliers for the
Renewables Special Account
-
-
-
72,863
72,863
-
Note 8 of the Annual
Financial Report 2021
Extraordinary one-off charge for
Renewable Energy stations. and
S.I.TH.Y.A. electricity producers for
the Renewables Special Account
-
-
-
-
-
-
Note 8 of the Annual
Financial Report 2021
Cost revision of the natural gas
pipeline for the years 2012-2019
-
-
-
(44,773)
(44,473)
-
Note 13 of the Annual
Finacial Report 2021
EBITDA Recurring excluding one-
off effects (3) = [(1)+(2)]
851,183
515,757
335,426
931,167
569,651
361,816
Total Turnover (4)
5,399,475
5,308,439
91,036
4,395,829
4,300,183
95,646
EBITDA Recurring margin
excluding one-off effects (3)/(4)
15,8%
9,7%
368,5%
21,2%
13,2%
378,3%
136
TABLE C- EBITDA Recurring (Operating Income before depreciation and impairment, net financial expenses and taxes).
Total Company
01.10-31.12.2021
Company Continuing
Operations 01.10-
31.12.2021
Company
Discontinued
Operations 01.10-
30.11.2021
Total Company
01.10-31.12.2020
RESTATED
Company Continuing
Operations 01.10-
31.12.2020
RESTATED
Company
Discontinued
Operations 01.10-
31.12.2020
RESTATED
Notes
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
EBITDA (1)
250,849
192,438
58,411
90,344
28,605
61,739
Plus one-of effects (2):
1,596
1,596
0
68,934
68,934
0
Provision for allowance for employees’
severance payments
1,700
1,700
-
(3,929)
(3,929)
-
Note 7, 31 of the
Annual Financial
Report 2021
Retroactive charge due to recovery of
special allowances from the implementation
of the Collective Labour Agreement 2021-
2024
(104)
(104)
-
-
-
-
Note 7, 31 of the
Annual Financial
Report 2021
Extraordinary one-off charge of electricity
suppliers for the Renewables Special
Account
-
-
-
72,863
72,863
-
Note 8 of the
Annual Financial
Report 2021
Extraordinary one-off charge for Renewable
Energy stations. and S.I.TH.Y.A. electricity
producers for the Renewables Special
Account
-
-
-
-
-
-
Note 8 of the
Annual Financial
Report 2021
Cost revision of the natural gas pipeline for
the years 2012-2019
-
-
-
-
-
-
Note 13 of the
Annual Finacial
Report 2021
EBITDA Recurring excluding one-off
effects (3) = [(1)+(2)]
252,445
194,034
58,411
159,278
97,539
61,739
Total Turnover (4)
1,923,538
1,906,768
16,770
1,060,763
1,036,656
24,107
EBITDA Recurring margin excluding one-
off effects (3)/(4)
13.1%
10.2%
348.3%
15.0%
9.4%
256.1%
137
Table D - EBIT (Operating Income before net financial expenses and taxes)
Total Group 01.01-
31.12.2021
Total Group 01.01-
31.12.2020
RESTATED
Total Group 01.10-
31.12.2021
Total Group 01.10-
31.12.2020
RESTATED
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
EBITDA
821,057
799,844
244,226
91,514
MINUS :
Depreciation and Amortization
666,248
744,045
166,690
193,107
Impairement of Property, Plant and
Equipment
107,575
(125,319)
75,795
(138,656)
Impairment of lignite subsidiaries’
-
-
-
-
ΕΒΙΤ (Α)
47,234
181,118
1,741
37,063
Total turnover (1)
5,706,391
4,649,444
2,008,848
1,129,334
EBIT MARGIN [(Α) / (1)]
0.8%
3.9%
0.1%
3.3%
138
Table D - EBIT (Operating Income before net financial expenses and taxes)
Company
Continuing
Operations 01.01-
31.12.2021
Company
Discontinued
Operations 01.01-
30.11.2021
Total Company
01.01-31.12.2020
RESTATED
Company
Continuing
Operations
01.01-31.12.2020
RESTATED
Company
Discontinued
Operations
01.01-31.12.2020
RESTATED
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in
‘000€
Amounts in
‘000€
EBITDA
815,518
480,092
335,426
880,501
518,685
361,816
MINUS :
Depreciation and Amortization
346,923
346,923
-
679,560
429,004
257,636
Impairement of Property, Plant and
Equipment
78,675
78,675
-
-130,912
-130,912
-
Impairment of lignite subsidiaries’
88,000
88,000
-
124,426
124,426
-
ΕΒΙΤ (Α)
301,920
(33,506)
335,426
207,427
96,167
104,180
Total turnover (1)
5,399,475
5,308,439
91,036
4,395,829
4,300,183
95,646
EBIT MARGIN [(Α) / (1)]
5,6%
-0,6%
368,5%
4,7%
2,2%
108,9%
139
Table D - EBIT (Operating Income before net financial expenses and taxes)
Total
Company
01.10-
31.12.2021
Company
Continuing
Operations
01.10-
31.12.2021
Company
Discontinued
Operations
01.10-
30.11.2021
Total
Company
01.10-
31.12.2020
RESTATED
Company
Continuing
Operations
01.10-
31.12.2020
RESTATED
Company
Discontinued
Operations 01.10-
31.12.2020
RESTATED
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in ‘000€
EBITDA
250,849
192,438
58,411
90,344
28,605
61,739
MINUS :
Depreciation and Amortization
85,566
85,566
-
174,220
109,122
65,098
Impairement of Property, Plant and
Equipment
46,895
65,705
-
(144,249)
(144,249)
-
Impairment of lignite subsidiaries’
-
-
5,000
5,000
-
ΕΒΙΤ (Α)
118,388
41,167
58,411
55,373
58,732
(3,359)
Total turnover (1)
1,923,538
1,906,768
16,770
1,060,763
1,036,656
24,107
EBIT MARGIN [(Α) / (1)]
6.2%
2.2%
348.3%
5.2%
5.7%
(13.9%)
Table E - Net amount of Depreciation, Financial Expense and Profit from Subsidiaries and Associates,
Total Group
01.01-31.12.2021
Total Group 01.01-
31.12.2020
RESTATED
Total Group 01.10-
31.12.2021
Total Group 01.10-
31.12.2020
RESTATED
Amounts in
‘000€
Amounts in ‘000€
Amounts in ‘000€
Amounts in ‘000€
Depreciation, Net Financial Expense
and Profit from Subsidiaries and
Associates
863,304
878,885
233,261
230,486
Depreciation and Amortization
666,248
744,045
166,690
193,107
Financial expense
259,541
198,233
78,394
51,910
Financial income
(59,294)
(60,108)
(12,202)
(13,859)
Net (profit)/loss from associates
(4,350)
(2,423)
(1,552)
(723)
Net loss/(profit) from FX differences
1,159
(862)
1,931
51
Table E - Net amount of Depreciation, Financial Expense and Profit from Subsidiaries and Associates,
Total
Company
01.01-
31.12.2021
Company
Continuing
Operations
01.01-
31.12.2021
Company
Discontinued
Operations
01.01-
30.11.2021
Total
Company
01.01-
31.12.2020
RESTATED
Company
Continuing
Operations
01.01-
31.12.2020
RESTATED
Company
Discontinued
Operations 01.01-
31.12.2020 RESTATED
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in ‘000€
Depreciation, Net Financial
Expense and Profit from
Subsidiaries and Associates
534,790
489,402
45,388
791,514
481,123
310,391
Depreciation and Amortization
346,923
346,923
45,388
679,560
421,924
257,636
Financial expense
251,963
206,575
-
194,611
141,856
52,755
Financial income
(65,222)
(65,222)
-
(81,824)
(81,824)
-
Net (profit)/loss from associates
-
-
-
2
2
-
Net loss/(profit) from FX
differences
1,126
1,126
-
(835)
(835)
-
140
Table E - Net amount of Depreciation, Financial Expense and Profit from Subsidiaries and Associates,
Total
Company
01.10-
31.12.2021
Company
Continuing
Operations
01.10-
31.12.2021
Company
Discontinued
Operations
01.10-
30.11.2021
Total
Company
01.10-
31.12.2020
RESTATED
Company
Continuing
Operations
01.10-
31.12.2020
RESTATED
Company
Discontinued
Operations
01.10-
31.12.2020
RESTATED
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Amounts in
‘000€
Depreciation, Net Financial
Expense and Profit from
Subsidiaries and Associates
149,298
141,278
8,020
212,352
134,381
77,971
Depreciation and Amortization
85,566
85,566
-
174,220
109,122
65,098
Financial expense
73,725
65,705
8,020
50,941
38,068
Financial income
(11,969)
(11,969)
-
(12,895)
(12,895)
12,873
Net (profit)/loss from associates
and joint ventures
-
-
-
-
-
-
Net loss/(profit) from FX
differences
1,976
1,976
-
86
86
-
TABLE F – NET DEBT
GROUP
COMPANY
Amounts in ‘000€
Amounts in ‘000€
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Long-term borrowing
4.062.638
3,480,453
2.723.954
3,383,968
Current portion of long term
borrowing
353.632
546,802
207.051
546,812
Short term borrowing
271.337
42,152
260.000
30,000
Cash and cash equivalents
(2.832.351)
(815,640)
(2.512.204)
(626,940)
Restricted cash
(53.323)
(53,535)
(35.754)
(47,636)
Financial assets measured at fair
value through other comprehensive
income
(327)
(866)
(325)
(646)
Unamortized portion of borrowing
costs
88.166
84,235
88.166
84,235
TOTAL
1.889.772
3,283,601
730.888
3,369,793
Athens, April 5
th
2022
For the Board of Directors
The President and CEO
The Vice President
Georgios I. Stassis
Pyrros D. Papadimitriou
141
This page is left blank intentionally
142
C. AUDITOR’S REPORT
143
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
THIS REPORT IS A FREE TRANSLATION FROM THE GREEK ORIGINAL
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of Public Power Corporation S.A.
Report on the Audit of the Separate and Consolidated Financial Statements
Opinion
We have audited the accompanying separate and consolidated financial statements of Public Power Corporation S.A. (“the
Company”), which comprise the separate and consolidated statement of financial position as of December 31, 2021, the
separate and consolidated statements of income and other comprehensive income, the statements of changes in equity and
cash flows for the year then ended and a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying separate and consolidated financial statements present fairly in all material respects the
financial position of Public Power Corporation S.A., and its subsidiaries (“the Group”) as at December 31, 2021 and its financial
performance and cash flows for the year then ended in accordance with International Financial Reporting Standards, as
endorsed by the European Union.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs), as incorporated in Greek Law. Our
responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Separate
and Consolidated Financial Statements” section of our report. We remained independent of the Company and Group
throughout the period of our appointment in accordance with the International Ethics Standards Board for Accountants’ Code
of Ethics for Professional Accountants (IESBA Code), as incorporated in Greek Law, together with the ethical requirements
that are relevant to the audit of the separate and consolidated financial statements in Greece, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw your attention to note 44.2 to the separate and consolidated financial statements, which describes the restatement
of the comparatives of the separate and the consolidated financial statements and the relevant considerations and further
actions of the Company and the Group. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate
and consolidated financial statements of the current period. These matters and the related risks of material misstatement
were addressed in the context of our audit of the separate and consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the “Auditor’s Responsibilities for the Audit of the Separate and
Consolidated Financial Statements” section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the
separate and consolidated financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying separate and consolidated financial
statements.
144
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
Key audit matter
How our audit addressed the key audit matter
Unbilled revenue recognition and related contract assets from low tension customers (separate and consolidated financial
statements)
The Company’s and the Group’s unbilled revenue for the
year ended December 31, 2021 and the related contract
assets from low tension customers as at December 31,
2021 amounted to €712mil.
The estimation method used, requires the management
to make judgments and use estimates and assumptions
with a high degree of uncertainty, of which the most
significant are related to the technical and non-technical
losses of the distribution network, the invoicing period,
the average revenue and the adjustments for discounts
and expected credit losses.
We have identified the estimation process of the unbilled
revenue and the related contract assets from low tension
customers as one of the key audit matters due to the
inherent risk of revenue recognition in the correct
period, the significant audit effort required, and the high
degree of subjectivity in the management’s judgments,
estimates and assumptions used in this process.
The Company’s and Group’s disclosures relevant to the
accounting policy, the judgments, the estimates and the
assumptions used to determine the unbilled revenue and
the related contract assets from low tension customers
can be found in notes 4.3, 4.4, 6 and 22 to the separate
and consolidated financial statements.
The audit procedures that we performed, among others were as
follows:
- We discussed with management and assessed the design of
management controls over the estimation of the unbilled
revenue and the related contract assets from low tension
customers.
- We received and audited the calculation of the
management’s estimate, evaluating the judgments,
estimates and assumptions related to the technical and
non-technical losses of the distribution network, the
invoicing period, the average revenue and the adjustments
for discounts and expected credit losses.
- We assessed the consistency of application of the
estimation, the methods, the assumptions, and the
calculations used between periods and whether events of
the period that alter the environment, the circumstances
and data, in which the estimates and assumptions used by
the management are based, have been taken into
consideration, as well as changes in the business practices,
the accounting principles and policies affecting the related
calculations.
- We tested the calculations for mathematical accuracy and
the correct accounting of the related amounts in the
financial statements.
- Finally, we assessed the adequacy of related disclosures in
the separate and consolidated financial statements.
Key audit matter
How our audit addressed the key audit matter
Trade receivables impairment test (separate and consolidated financial statements)
At December 31, 2021, the Company’s and the Group’s
trade receivables amounted to €876mil and €1.101mil.,
after accumulated impairment losses of €2.305mil. and
€2.422mil., respectively.
The Company and Group apply the simplified approach
of IFRS 9 “Financial Instruments” and determine lifetime
expected credit losses (“ELC”) on their trade receivables
The audit procedures that we performed, among others were as
follows:
- We discussed with management and assessed the design
of management controls over the impairment process of
trade receivables impairment test.
145
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
by using historical information, including the conditions
of COVID-19 pandemic and the current economic
conditions, which reflects the expected effect of current
information in future.
We have identified the process of trade receivables
impairment test as a key audit matter due to the
magnitude of the related accounts and the significance of
management’s assumptions and estimates used.
The Company’s and Group’s disclosures relevant to the
accounting policy, the judgements, the estimates and the
assumptions used for the impairment test of trade
receivables can be found in notes 4.3, 4.4 and 21 to the
separate and consolidated financial statements.
- We received and audited the calculation of trade
receivables impairment performed by management,
evaluating, among others, the completeness and
accuracy of the data used for the determination of
expected credit losses and the assumptions on which the
management’s estimation was based.
- We tested the calculations for mathematical accuracy
and the correct accounting of the related amounts in the
separate and consolidated financial statements.
Finally, we assessed the adequacy of related disclosures in the
separate and consolidated financial statements.
Key audit matter
How our audit addressed the key audit matter
Valuation of Property, Plant and Equipment (separate and consolidated financial statements)
At December 31, 2021 Company’s and Group’s property,
plant and equipment amounted to €5.119mil. and
€10.266mil., respectively.
Property, plant and equipment are measured at revalued
amounts (fair values less accumulated depreciation and
impairment loss), except for the mines and lakes that are
measured at cost (less accumulated depreciation and
impairment) and property, plant and equipment under
construction, that are measured at cost (less
accumulated impairment loss).
The fair values of property, plant and equipment that are
measured at revalued amounts, are determined by
independent appraisers periodically, in order to assure
that the carrying value of an asset does not differ
significantly from its fair value. The last revaluation was
performed as of December 31, 2019. The determination
of the fair values of property, plant and equipment
requires the management to make, among others,
estimations, assumptions and judgements regarding the
ownership, the use and the existence of any physical,
operational and economic obsolescence.
In 2021, in the context of the spin-off of the distribution
network business, as described in the Key Audit Matter
"Spin-off of the distribution network business", a
valuation was performed by an independent appraiser
which resulted in a revaluation surplus of €262mil. for
the Group.
The audit procedures that we performed, among others were as
follows:
- We discussed with management and assessed the design of
management controls over the evaluation process of
whether the fair values of the property, plant and equipment
have changed significantly, and impairment indications exist
for the property, plant and equipment.
- For property, plant and equipment that are measured at fair
values, we received the management’s analysis and
assessed the reasonability and the accuracy of the
assumptions used.
- For property, plant and equipment of the distribution
network business, the fair values of which have changed,
we received the valuation report of the independent
appraiser and assessed with the contribution of EY
valuation specialists, the reasonability and accuracy of the
assumptions used.
- We evaluated the competence, capabilities and objectivity
of the independent appraiser whom the management
engage to conduct the valuation study.
- We performed sampling tests regarding the mathematical
accuracy of determination of revaluation surplus and deficit
of property, plant and equipment that were measured at
fair values, assessing also the implementation of the
Company’s accounting policy and the correctness of the
accounting process.
146
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
Key audit matter
How our audit addressed the key audit matter
Valuation of Property, Plant and Equipment (separate and consolidated financial statements) (continue)
The determination of the fair values of property, plant
and equipment requires the management to make,
among others, estimations, assumptions and judgements
regarding the ownership, the use and the existence of
any physical, operational and economic obsolescence.
In addition to the above, the Company assesses annually
whether impairment indications exist and if this is the
case, performs an impairment test for its property plant
and equipment. This process incorporates judgements,
estimates and assumptions with high degree of
subjectivity, the most important of which are related to
the estimated future production capacity and use of the
assets, the determination of the cash generating unit on
which the impairment test will be performed, their
discounted future cash flows and other factors.
In the context of the process for the assessment of
impairment indications for the property, plant and
equipment and taking also into consideration the
requirements of the lignite phase-out plan, management
performed impairment tests, which resulted in an
impairment loss of €32mil. and €34mil. for the Company
and the Group, respectively, which were recognised in
the current year’s separate and consolidated statements
of income.
We have identified the valuation of property, plant and
equipment as a key audit matter due to magnitude of the
related accounts and the significance of management’s
judgments, estimates and assumptions on which is
based.
The Company’s and Group’s disclosures relevant to the
accounting policy, the judgments, the estimates and the
assumptions used for the valuation in fair values and the
assessment of impairment indications for the property,
plant and equipment can be found in notes 4.3, 4.4, 15,
35 and 41 to the separate and consolidated financial
statements.
- For property, plant and equipment that are measured at
cost, , we assessed the management’s evaluation for
whether there were indications of impairment.
- For property, plant and equipment that are measured at
cost, and for which impairment indications existed and
therefore impairment tests were performed, we assessed
with the contribution, where necessary, of EY valuation
specialists, the reasonability and accuracy of the
assumptions and methodology used in estimating the
recoverable amounts.
- We tested the calculations for mathematical accuracy and
the correct accounting of the related amounts in the
financial statements.
- Finally, we assessed the adequacy of related disclosures in
the separate and consolidated financial statements.
Key audit matter
How our audit addressed the key audit matter
Spin-off of distribution network business (separate financial statements)
147
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
The Company launched in 2020 an international tender
process for the sale of 49% of its share capital in the
100% subsidiary HELLENIC ELECTRICITY DISTRIBUTION
NETWORK OPERATOR SA. ("HEDNO").
As a prerequisite for the contemplated sale, the spin-off
of the distribution network business and its transfer to
HEDNO should take place. This business was valued at
fair value by an independent appraiser, in accordance
with the provisions of Decree Law 1297/1972 and Law
4548/2018 and was contributed to HEDNO on November
30, 2021 by shares exchange.
The spin-off and contribution of a business to a 100% by
shares exchange is accounted as a common control
transaction and judgment is required for the
determination of the appropriate accounting policy to
reflect the transaction. The Company recognised the
shares received in exchange as an addition to the cos of
the investment in subsidiary at the carrying amount or
fair value of the business contributed based on the effect
of the transaction on its future cash flows (i.e. evaluating
whether commercial substance exists)
On November 30, 2021, PPC contributed to HEDNO the
assets and liabilities of the distribution network business.
The assets and liabilities of the distribution network
business were previously classified as held for sale, as the
criteria of IFRS 5 were met. assets, as they met the
relevant criteria set out in IFRS 5 and were valued at the
lower of their carrying amount and their fair value book
(€964mil. at the date of contribution).
Upon the derecognition of these assets and liabilities, the
Company increased its investment in HEDNO by the fair
value of the contributed business amounted to
€1.016mil. The difference, amounted to €52mil., was
presented as profit from the investment to HEDNO in the
separate statement of income of the current year.
We have recognized the spin-off of the distribution
network business as one of the most important key audit
matters of the Company, due to the magnitude of the
related accounts, due to degree of judgment on the
selection of the accounting policy and the significance of
management’s assumptions and estimates used in
relation to the valuation of the contributed business and
the related investment to HEDNO.
The Company’s disclosures relevant to the accounting
policy, the judgments, the estimates and the
assumptions used for the for the spin-off of the
distribution network business can be found in notes 4.3,
4.4 and 5, of the separate and consolidated financial
statements.
The audit procedures that we performed, among others were as
follows:
- We discussed with management and assessed the design of
management controls over the process of valuation of
investments in subsidiaries.
- We received the valuation report of the distribution
network business from the independent appraiser to whom
the management engaged to conduct the valuation exercise
and assessed with the contribution of EY valuation
specialists, the reasonability and accuracy of the
assumptions used.
- We evaluated the competence, capabilities and objectivity
of the independent appraiser whom the management
engage to conduct the valuation study.
- We received an extensive and detailed memorandum from
the Company’s management on the accounting treatment
and evaluation of the transaction and we evaluated it in
accordance with the provisions of IFRS.
- We have evaluated the adequacy of the Company’s
accounting policy and its proper application.
- Finally, we assessed the adequacy of related disclosures in
the separate and consolidated financial statements.
148
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
Other information
Management is responsible for the other information in the Annual Report. The other information, includes the Board of
Directors’ Report, for which reference is also made in section “Report on Other Legal and Regulatory Requirements”, the
Statements of the Members of the Board of Directors, and any other information either required by law or voluntarily
incorporated by the Company in its Annual Report prepared in accordance with Law 3556/2007, but does not include the
separate and consolidated financial statements and our auditor’s report thereon.
Our opinion on the separate and consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the separate and consolidated financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially inconsistent with the
separate and consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Management and Those Charged with Governance for the Separate and Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the separate and consolidated financial statements
in accordance with International Financial Reporting Standards, as endorsed by the European Union, and for such internal
control as management determines is necessary to enable the preparation of the separate and consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the separate and consolidated financial statements, management is responsible for assessing the Company’s
and Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company and the Group or to cease
operations, or has no realistic alternative but to do so.
The Company’s Audit Committee (Law 44 ν.4449/2017) is responsible for overseeing the Company’s and the Group’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Separate and Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the separate and consolidated financial statements, as a
whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs, as incorporated in Greek Law, will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these separate and consolidated financial statements.
As part of an audit in accordance with ISAs, as incorporated in Greek Law, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the separate and consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
149
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s and the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s and the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
separate and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Company and the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the separate and consolidated financial statements,
including the disclosures, and whether the separate and consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the separate and consolidated financial statements. We are
responsible for the direction, supervision and performance of the audit of the Company and its subsidiaries. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the separate and consolidated financial statements of the current period and are therefore the
key audit matters.
Report on Other Legal and Regulatory Requirements
1. Board of Directors’ Report
Taking into consideration that management is responsible for the preparation of the Board of Directors’ Report and
Corporate Governance Statement that is included therein, according to the provisions of paragraph 5 article 2 of Law
4336/2015 (part B), we report that:
a) The Board of Directors’ Report includes a Corporate Governance Statement that contains the information required
by article 152 of Law 4548/2018.
b) In our opinion the Board of Directors’ Report has been prepared in accordance with the legal requirements of
articles 150-151 and 153-154 and paragraph 1 (c and d) of article 152 of Law 4548/2018 and the content of the
Board of Directors’ report is consistent with the accompanying separate and consolidated financial statements for
the year ended December 31, 2021.
150
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
c) Based on the knowledge and understanding concerning Public Power Corporation S.A. and its environment,
obtained during our audit, we have not identified information included in the Board of Directors’ Report that
contains a material misstatement.
2. Unbundled Financial Statements
The management is responsible for the preparation of the Company’s and the Group’s unbundled financial statements as
required by the article 141 of Law 4001/2011 and the Decision 266/2014 of the Regulatory Authority for Energy (RAE) and
for those internal controls that management determines are necessary to enable the preparation of the Company’s and
Group’s unbundled balance sheets as at December 31, 2021 and the unbundled statements of income before tax for the
period from January 1, 2021 to December 31, 2021 that are free from material misstatement, whether due to fraud or error.
The methodology of preparation of the unbundled financial statements is described in note 2 of appendix 1 to the financial
statements.
In our opinion, the Company’s and Group’s unbundled financial statements as at December 31, 2021, as presented in the
relevant appendix to the separate and consolidated financial statements, have been prepared in accordance with the
provisions of article 141 of Law 4001 / 2011 and the Decision 266/2014 of the Regulatory Authority for Energy (RAE).
3. Additional Report to the Audit Committee
Our opinion on the accompanying separate and consolidated financial statements is consistent with our Additional Report to
the Audit Committee of the Company, in accordance with article 11 of the EU Regulation 537/2014.
4. Provision of Non-audit Services
We have not provided any prohibited non-audit services per article 5 of the EU Regulation 537/2014.
Non-audit services provided by us to the Company and its subsidiaries during the year ended December 31, 2021, are
disclosed in Note 13 of the separate and consolidated financial statements.
5. Appointment of the Auditor
We were firstly appointed as auditors of the Group by the General Assembly on June 7, 2018. Our appointment has been
uninterruptedly renewed annually by virtue of decisions of the annual general meetings of the shareholders for a total period
of three years.
6. Rules of Procedure
The Company has in place Rules of Procedure, the context of which is in accordance with the provisions of article 14 of Law
4706/2020
7. Reasonable Assurance report on the European Single Electronic Format
We have examined the digital files of the Company and the Group, prepared in accordance with the European Single
Electronic Format (“ESEF”) as defined in the EU Delegated Regulation 2019/815, as amended by the EU Delegated Regulation
2020/1989 of the European Commission (hereinafter referred to as “the ESEF Regulation”), that comprise an XHTML file
“"213800T9Y5XCOVRZ4Y57-2021-12-31.xhtml” which includes the separate and consolidated financial statements of the
Company and the Group for the year ended December 31, 2021, and an XBRL file “213800T9Y5XCOVRZ4Y57-2021-12-31-
en.zip” with the appropriate tagging of the aforementioned consolidated financial statements.
151
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
Regulatory Framework
The digital files of the European Single Electronic Format are prepared in accordance with the ESEF Regulation and the
Interpretative Communication of the European Commission 2020/C 379/01 dated 10 November 2020, as required by Law
3556/2007 and the relevant communications of the Hellenic Capital Market Commission and the Athens Stock Exchange
(hereinafter referred to as the "ESEF Regulatory Framework"). This Framework provides, among others, the following
requirements:
- all annual financial reports should be prepared in XHTML format.
- for the consolidated financial statements prepared in accordance with IFRS, the financial information in the statement of
income, the statement of other comprehensive income, the statement of financial position, the statement of changes of
equity and the statement of cash flows should be marked-up (XBRL tags), according to the Taxonomy of ESEF (ESEF
Taxonomy), as applicable. The technical specifications for ESEF, including the relevant taxonomy, are set out in the ESEF
Regulatory Technical Standards.
The requirements set out in the ESEF Regulatory Framework provide appropriate criteria for us to express a reasonable
assurance conclusion.
Responsibilities of Management and Those Charged With Governance
Management is responsible for the preparation and submission of the separate and consolidated financial statements of the
Company for the year ended December 31, 2021, in accordance with the requirements set out in the ESEF Regulatory
Framework, and for such internal control as management determines is necessary to enable the preparation of the digital
files that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities
Our responsibility is to plan and perform this assurance engagement in accordance with the Decision 214/4/11-02-2022 of
the Board of Directors of the Hellenic Accounting and Auditing Standards Oversight Board and the “Guiding instructions to
auditors in connection with their assurance engagement on the European Single Electronic Format (ESEF) of public issuers in
regulated Greek markets”, as issued by the Institute of Certified Public Accountants of Greece on February 14, 2022
(hereinafter referred to as “ESEF Guiding Instructions”), in order to obtain reasonable assurance that the separate and
consolidated financial statements prepared by management in accordance with ESEF comply, in all material respects, with
the ESEF Regulatory Framework.
Our work was performed in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code), as incorporated in Greek Law, and we have fulfilled our other ethical independence
responsibilities in accordance with Law 4449/2017 and the EU Regulation 537/2014.
The assurance engagement we performed, in accordance with the International Standard on Assurance Engagements 3000,
"Assurance Engagements Other Than an Audit or Review of Historical Financial Information", is limited to the objectives
included in the ESEF Guiding Instructions. Reasonable assurance is a high level of assurance, but it is not a guarantee that this
reasonable assurance engagement will always detect a material misstatement with respect to non-compliance with the
requirements of the ESEF Regulatory Framework when it exists.
152
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras str., Maroussi
151 25 Athens, Greece
Tel: +30 210 2886 000
Fax:+30 210 2886 905
ey.com
Conclusion
Based on the procedures performed and the evidence obtained, we express the conclusion that the separate and
consolidated financial statements of the Company and the Group for the year ended December 31, 2021, in XHTML file format
"213800T9Y5XCOVRZ4Y57-2021-12-31.xhtml” as well as the required XBRL file “213800T9Y5XCOVRZ4Y57-2021-12-31-
en.zip” with relevant tagging on the aforementioned consolidated financial statements, have been prepared, in all material
respects, in accordance with the ESEF Regulatory Framework.
Athens 5 April 2022
Ioannis Pierros
Certified Auditor Accountant
SOEL R.N. 3505
ERNST & YOUNG (HELLAS)
Certified Auditors – Accountants S.A.
8B Chimarras, Maroussi,
151 25, Greece
Company SOEL R.N. 107
153
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154
PUBLIC POWER CORPORATION S.A.
Consolidated and Separate
Financial Statements
December 31
st
2021
In accordance with the
International Financial Reporting Standards
adopted by the European Union
The attached separate and consolidated financial statements have been approved by the Board
of Directors of Public Power Corporation S.A. on April 5
th
2022 and they are available on the web
site of Public Power Corporation S.A. at www.dei.gr.
The attached separate and consolidated financial statements have been translated from the
original version in Greek.
CHAIRMAN AND CHIEF
EXECUTIVE OFFICER
VICE
CHAIRMAN
CHIEF FINANCIAL
OFFICER
ACCOUNTING
DEPARTMENT
DIRECTOR
GEORGIOS I.
STASSIS
PYRROS D.
PAPADIMITRIOU
KONSTANTINOS A.
ALEXANDRIDIS
EFTHIMIOS Α.
KOUTROULIS
PUBLIC POWER CORPORATION S.A.
CONSOLIDATED AND SEPARATE STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2021
(All amounts in thousands of Euro)
155
- The accompanying notes are an integral part of the consolidated and separate financial statements.
- *Some figures of the Group and the Parent Company are restated compared to those published in the annual financial statements as of December 31
st
, 2020 (See Note 44).
GROUP
COMPANY
Note
01.01.2021-
31.12.2021
*01.01.2020-
31.12.2020
01.01.2021-
31.12.2021
01.01.2021-
31.12.2021
01.01.2021-
30.11.2021
*01.01.2020-
31.12.2020
*01.01.2020-
31.12.2020
*01.01.2020-
31.12.2020
Total Group
Total Group
Total Company
Continuing
Operations
Discontinued
Operations
Total
Company
Continuing
Operations
Discontinued
Operations
REVENUES:
Revenue from energy sales
6
4,987,108
4,987,108
-
3,910,362
3,910,362
-
Revenue from natural gas sales
6
1,161
1,161
-
472
472
-
Other sales
6
411,206
320,170
91,036
484,995
389,349
95,646
5,399,475
5,308,439
91,036
4,395,829
4,300,183
95,646
EXPENSES:
Payroll cost
7
412,094
412,094
-
411,274
411,274
-
Lignite
21,323
21,323
-
20,997
20,997
-
Liquid Fuels
530,825
530,825
-
455,849
455,849
-
Natural Gas
910,068
910,068
-
297,858
297,858
-
Depreciation and amortization
9
346,923
346,923
-
679,560
421,924
257,636
Energy purchases
8
1,487,577
1,487,577
-
1,215,330
1,215,330
-
Materials and consumables
71,650
71,650
-
58,363
58,363
-
Transmission system usage
129,257
129,257
-
135,775
135,775
-
Distribution system usage
220,588
459,293
(238,705)
223,802
483,134
(259,332)
Utilities and maintenance
109,651
109,651
-
122,850
122,850
-
Third party fees
89,035
89,035
-
79,800
79,800
-
Emission allowances
10
573,793
573,793
-
327,861
327,861
-
Provisions for risks
40,32
105,430
105,430
-
43,074
43,074
-
Provision for impairment of inventories
20
24,272
24,272
-
62,455
62,455
-
Provision for expected credit losses
21,22,23
(59,740 )
(108,938)
(108,938)
-
36,652
36,652
-
Financial expenses
11
251,963
206,575
45,388
194,611
141,856
52,755
Financial Income
12
(59,294 )
(60,108 )
(65,222)
(65,222)
-
(81,824)
(81,824)
-
Impairment loss on Lignite Subsidiaries
17
88,000
88,000
-
124,426
124,426
-
Impairment loss on assets
35
(125,319 )
78,675
78,675
-
(130,912)
(130,912)
-
Other (income) / expenses, net
13
7,332
13,017
(5,685)
23,388
30,226
(6,838)
(Gains)/ losses from associate
18
(4,350 )
(2,423 )
-
-
-
2
2
-
Income from the spin off of distribution network
(52,301)
(52,301)
-
-
-
-
Foreign currency (gains) / losses, net
(862 )
1,126
1,126
-
(835)
(835)
-
5,233,121
5,432,123
(199,002)
4,300,356
4,256,135
44,221
PROFIT/(LOSS) BEFORE TAX
(149,822 )
166,354
(123,684)
290,038
95,473
44,048
51,425
Income tax
14
(26,797 )
139,791
20,829
118,962
(31,224)
(28,729)
(2,495)
NET PROFIT/(LOSS)
(18,370 )
306,145
(102,855)
409,000
64,249
15,319
48,930
Attributable to:
Owners of the Parent
(18,404 )
Non – controlling interests
Profit/(Loss) per share, basic and diluted
(0.05 )
Weighted average number of shares
382,000,000
232,000,000
PUBLIC POWER CORPORATION S.A.
STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2021
(All amounts in thousands of Euro)
156
PUBLIC POWER CORPORATION S.A
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2021
(All amounts in thousands of Euro )
GROUP
COMPANY
Note
01.01.2021 –
31.12.2021
*01.01.2020 –
31.12.2020
01.01.2021 –
31.12.2021
01.01.2021 –
31.12.2021
01.01.2021 –
31.12.2021
*01.01.2020 –
31.12.2020
*01.01.2020 –
31.12.2020
*01.01.2020 –
31.12.2020
Total Group
Total Group
Total Company
Continuing
Operations
Discontinued
Operations
Total Company
Continuing
Operations
Discontinued
Operations
Net Profit/(Loss) for the year
(18,370 )
306,145
(102,855)
409,000
64,249
15,319
48,930
Reclassification of hedging transactions through the statement
of comprehensive income
43
(244,864 )
(244,864)
(244,864)
-
5,464
5,464
-
Foreign exchange differences
(642 )
(184 )
-
-
-
-
-
-
Gains from the valuation of hedging transactions
43
459,808
459,808
-
(1,153)
(1,153)
-
Deferred tax on gains from the valuation of hedging
transactions
(17,305 )
(1,153 )
(17,305)
(17,305)
-
-
-
Deferred tax on gains from the valuation of hedging
transactions due to change of tax rate
1,538
-
-
-
-
-
Net Other Comprehensive income / (loss) to be reclassified
to profit or loss in subsequent periods
199,177
197,639
-
4,311
4,311
-
Gains / (Losses) on financial assets at fair value through total
income
(539 )
(384 )
(319)
(319)
-
(232)
(232)
-
Revaluation of Property, plant and equipment
15
(547 )
-
-
-
2,095
2,095
-
Deferred tax on revaluation of Property, plant and equipment
14
-
-
-
(503)
(503)
-
Impairement of Property, plant and equipment with revaluation
surplus
15
(38,581 )
-
-
-
(38,581)
(38,581)
-
Deferred tax on impairement of Property, plant and equipment
with revaluation surplus
-
-
-
9.259
9.259
-
Deferred taxes on fixed assets due to change of tax rate
14
123,354
79,840
43,514
-
-
-
Provision for decommissioning and dismantling of facilities/
equipment of Units and mines
32
11,165
11,165
-
3,251
3,251
Deferred taxes on provision for decommissioning and
dismantling of facilities/ equipment of Units and mines
14
(2,456 )
(780 )
(2,456)
-
-
(780)
(780)
-
Deferred taxes on provision for decommissioning and
dismantling of facilities/ equipment of Units and mines due to
tax rate change
14
(2,494 )
(2,494)
(2,494)
-
-
-
-
Actuarial gains/ (losses)
31
18,517
18,517
27,825
27,825
Deferred tax on actuarial gains/ losses
14
(6,560 )
(9,733 )
(4,074)
-
-
(6,678)
(6,678)
-
Deferred tax on actuarial gains/ losses due to tax rate change
14
(2,483 )
(1,828)
(1,828)
-
-
-
-
Net Other Comprehensive (loss) / income not to be
reclassified to profit or loss in subsequent periods
141,865
104,881
43,514
(4,344)
(4,344)
-
Other Comprehensive (loss) / income for the year after tax
341,042
302,521
43,514
(33)
(33)
-
Total Comprehensive (loss)/ income for the year after tax
647,187
199,666
452,514
64,216
15,286
48,930
Attributable to:
Owners of the Parent
Non-controlling interests
- The accompanying notes are an integral part of the consolidated and separate financial statements.
- *Some figures of the Group and the Parent Company are restated compared to those published in the annual financial statements as of December 31
st
, 2020 (See Note 44).
PUBLIC POWER CORPORATION S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2021 (All amounts in
thousands of Euro)
157
GROUP
Note
31.12.2021
*31.12.2020
01.01.2020
ASSETS
Non - Current Assets :
Property, plant and equipment, net
15
Intangible assets, net
16
Right of use assets
42
Investments in subsidiaries
17
Investments in associates
18
Financial assets measured at fair value through other
comprehensive income
24
Other non – current assets
Deferred tax asset
14
Total non – current assets
Current Assets :
Inventories
20
Trade receivables
21
Contract assets
22
Other receivables
23
Derivative Financial instruments
43
Income tax receivable
14
Cash and cash equivalents
25
Restricted cash
25
Total
Total Assets Held for Sale
5
Total current assets
Total Assets
EQUITY AND LIABILITIES
EQUITY :
Share capital
26
Share premium
26
Legal reserve
27
Statutory revaluation surplus
(947,342 )
(947,342 )
(947,342 )
Revaluation surplus
15
Other Reserves
28
Retained earnings
(1,538,702 )
(1,550,361 )
(1,610,521 )
Total Equity attributable to the Owners of the Parent
Non – controlling interests
Total equity
Non – Current Liabilities :
Long - term borrowings
30
Post-retirement benefits
31
Provisions
32
Financial lease liability
42
Contract liabilities
34
Subsidies
33
Long term financial liability from the securitization of
receivables
45
Other non – current liabilities
Total non – current liabilities
Current Liabilities :
Trade and other payables
36
Short term financial liability from the securitization of
receivables
45
Dividends payable
29
Income tax payable
14
Short – term borrowings
37
Current portion of long - term borrowings
30
Current portion of financial lease liability
42
Accrued and other current liabilities
39
Current portion of the provision of decommissioning
and removal of Power Plants’, Mines’ and Wind Parks’
facilities and mines’ land restoration areas
32
Short-term contract liabilities
38
Total
Total Liabilities Held for Sale
5
Total Current Liabilities
Total Equity and Liabilities
- The accompanying notes are an integral part of the consolidated and separate financial statements.
- *Some figures of the Group and the Parent Company are restated compared to those published in the annual financial statements as of December 31
st
, 2020 (See
Note 44).
PUBLIC POWER CORPORATION S.A.
SEPARATE STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2021 (All amounts in thousands
of Euro)
158
COMPANY
Note
31.12.2021
*31.12.2020
*01.01.2020
ASSETS
Non - Current Assets :
Property, plant and equipment, net
15
5,118,915
5,352,700
10,176,626
Intangible assets, net
16
333,783
87,601
65,054
Right of use assets
42
102,769
37,447
41,084
Investments in subsidiaries
17
1,241,530
221,611
221,271
Investments in associates
18
37
37
997
Financial assets measured at fair value through other
comprehensive income
24
325
646
879
Other non – current assets
13,689
15,977
20,132
Deferred tax asset
14
731,841
761,055
204,584
Total non – current assets
7,542,889
6,477,074
10,730,627
Current Assets :
Inventories
20
430,136
455,174
530,923
Trade receivables
21
875,909
554,619
579,213
Contract assets
22
660,345
372,475
424,911
Other receivables
23
1,119,988
214,723
235,444
Derivative Financial instruments
43
76,908
4,803
-
Income tax receivable
14
-
-
-
Cash and cash equivalents
25
2,512,204
626,940
205,461
Restricted cash
25
48,278
52,803
67,752
Total
5,723,768
2,281,537
2,043,704
Total Assets Held for Sale
5
-
4,563,389
-
Total current assets
5,723,768
6,844,926
2,043,704
Total Assets
13,266,657
13,322,000
12,774,331
EQUITY AND LIABILITIES
EQUITY :
Share capital
26
947,360
575,360
575,360
Share premium
26
1,018,753
106,679
106,679
Legal reserve
27
128,317
128,317
128,317
Statutory revaluation surplus
(947,342)
(947,342)
(947,342)
Revaluation surplus
15
3,000,597
4,594,433
4,658,997
Other Reserves
28
263,326
51,852
26,626
Retained earnings
249,016
(1,780,536)
(1,884,091)
Total Equity attributable to the Owners of the Parent
4,660,027
2,728,763
2,664,546
Non – controlling interests
-
-
-
Total equity
4,660,027
2,728,763
2,664,546
Non – Current Liabilities :
Long - term borrowings
30
2,723,954
2,008,603
3,467,108
Post-retirement benefits
31
119,625
129,371
175,767
Provisions
32
809,980
732,629
737,035
Financial lease liability
42
94,825
26,975
29,284
Contract liabilities
34
438,272
450,745
2,331,696
Subsidies
33
95,665
105,259
156,844
Long term financial liability from the securitization of
receivables
45
229,475
123,465
-
Other non – current liabilities
38
38
38
Total non – current liabilities
4,511,834
3,577,085
6,897,772
Current Liabilities :
Trade and other payables
36
480,202
1,171,262
1,523,818
Short term financial liability from the securitization of
receivables
45
150,620
11,688
-
Dividends payable
29
-
12
13
Income tax payable
14
63,778
63,778
63,778
Short – term borrowings
37
260,000
30,000
-
Current portion of long - term borrowings
30
207,051
397,115
417,361
Current portion of financial lease liability
42
10,573
11,996
12,780
Accrued and other current liabilities
39
1,712,403
825,186
755,353
Current portion of the provision of decommissioning
and removal of Power Plants’, Mines’ and Wind Parks’
facilities and mines’ land restoration areas
32
80,598
13,065
-
Short-term contract liabilities
38
1,129,571
550,877
438,910
Total
4,094,796
3,074,979
3,212,013
Total Liabilities Held for Sale
5
-
3,941,173
-
Total Current Liabilities
4,094,796
7,016,152
3,212,013
Total Equity and Liabilities
13,266,657
13,322,000
12,774,331
- The accompanying notes are an integral part of the consolidated and separate financial statements.
- *Some figures of the Group and the Parent Company are restated compared to those published in the annual financial statements as of December 31
st
, 2020 (See
Note 44).
PUBLIC POWER CORPORATION S.A.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2021
(All amounts in thousands of Euro)
159
GROUP
Other Reserves
Note
Share
Capital
Share
Premium
Legal
Reserve
Revaluation
Surplus
Statutory
Revaluation
Surplus
Fair Value of
financial assets
through
comprehensive
income
Foreign
Exchange
Differences,
Tax-free and
Other
Reserves
Other
Reserve
s Total
Retained
Earnings
Total
Non-
Controlli
ng
Interest
Total
Equity
Balance, January 1
st
, 2020
(947,342 )
(1,628,019 )
Adjustment due to accounting policy
change in IAS 19
44
-
-
-
-
-
-
-
-
-
Impact due to revenue recognition from
unbilled usage charges of distribution
network
44
-
-
-
-
-
-
-
-
-
Balance, January 1
st
, 2020 (restated)
(947,342 )
(1,610,521 )
Profit/(Loss) for the year
-
-
-
-
-
-
-
-
Other comprehensive income/ (loss) for
the year after tax recognized in equity
-
-
-
(27,267 )
-
(384 )
-
-
Total Comprehensive income / (loss)
for the year, after tax
-
-
-
(27,267 )
-
(384 )
Disposals of property, plant and
equipment
-
-
-
(26,060 )
-
-
-
-
-
-
-
Other movements
-
-
-
(13,739 )
-
-
-
-
-
Balance, December 31
st
, 2020
(947,342 )
(1,550,361 )
Balance, January 1
st
, 2021
(947,342 )
(1,550,361 )
Profit/(Loss) for the year
-
-
-
-
-
-
-
-
(18,404 )
(18,404 )
(18,370 )
Other comprehensive income/ (loss) for
the year after tax
15,28
-
-
-
-
(539 )
-
Total Comprehensive income / (loss)
for the year, after tax
-
-
-
-
(539 )
(18,404 )
Share capital increase
26
-
-
-
-
-
-
-
-
Expenses of the share capital increase
26
-
(65,926 )
-
-
-
-
-
-
-
(65,926 )
-
(65,926 )
Disposals of property, plant and
equipment
-
-
-
(30,178 )
-
-
-
-
-
-
-
Other movements
-
-
-
-
-
-
-
-
(115 )
(115 )
-
(115 )
Balance, December 31
st
, 2021
(947,342 )
(470 )
(1,538,702 )
- The accompanying notes are an integral part of the consolidated and separate financial statements.
PUBLIC POWER CORPORATION S.A.
SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2021
(All amounts in thousands of Euro)
160
COMPANY
Other Reserves
Note
Share
Capital
Share
Premium
Legal
Reserve
Revaluation
Surplus
Statutory
Revaluation
Surplus
Fair Value of
financial assets
through
comprehensive
income
Tax-free and
Other Reserves
Other
Reserves
Total
Retained
Earnings
Total Equity
Balance, January 1
st
, 2020
575,360
106,679
128,317
4,658,997
(947,342)
150
26,476
26,626
(1,862,818)
2,685,819
Impact due to revenue recognition from
unbilled usage charges of distribution
network
44
-
-
-
-
-
-
-
-
(21,273)
(21,273)
Balance, January 1
st
, 2020 (restated)
575,360
106,679
128,317
4,658,997
(947,342)
150
26,476
26,626
(1,884,091)
2,664,546
Profit/(Loss) for the year (restated)
-
-
-
-
-
-
-
-
64,249
64,249
Other comprehensive income/ (loss) for the
year after tax recognized in equity
-
-
-
(25,259)
-
(232)
25,458
25,226
-
(33)
Total Comprehensive income / (loss) for
the year, after tax
-
-
-
(25,259)
-
(232)
25,458
25,226
64,249
64,216
Disposals of property, plant and equipment
-
-
-
(25,566)
-
-
-
-
25,566
-
Other movements
-
-
-
(13,739)
-
-
-
-
13,739
1
Balance, December 31
st
, 2020
575,360
106,679
128,317
4,594,433
(947,342)
(82)
51,934
51,852
(1,780,537)
2,728,763
Balance, January 1
st
, 2021
575,360
106,679
128,317
4,594,433
(947,342)
(82)
51,934
51,852
(1,780,537)
2,728,763
Profit/(Loss) for the year
-
-
-
-
-
-
-
-
306,145
306,145
Other comprehensive income/ (loss) for the
year after tax
15,28
-
-
-
129,569
-
(319)
211,793
211,474
-
341,042
Total Comprehensive income / (loss) for
the year, after tax
-
-
-
129,569
-
(319)
211,793
211,474
306,145
647,187
Share capital increase
26
372,000
978,000
-
-
-
-
-
-
-
1,350,000
Expenses of the share capital increase
26
(65,926)
-
-
-
-
-
-
-
(65,926)
Disposals of property, plant and equipment
-
-
-
(26,929)
-
-
-
-
26,929
-
Transfer of the revaluation surplus of
property, plant and equipment of Ditribution
Network due to the spin -off
15,5
-
-
-
(1,696,476)
-
-
-
-
1,696,476
-
Other movements
-
-
-
-
-
-
-
-
3
3
Balance, December 31
st
, 2021
947,360
1,018,753
128,317
3,000,597
(947,342)
(401)
263,727
263,326
249,016
4,660,027
- The accompanying notes are an integral part of the consolidated and separate financial statements.
PUBLIC POWER CORPORATION S.A.
CONSOLIDATED AND SEPARATE STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED
DECEMBER 31, 2021
(All amounts in thousands of Euro)
161
GROUP
COMPANY
Note
01.01.2021-
31.12.2021
01.01.2020-
31.12.2020*
01.01.2021-
31.12.2021
01.01.2020-
31.12.2020*
Operating activities
Profit / (Loss) before tax from continuing operations
(149,822 )
(123,684)
44,048
Profit / (Loss) before tax from discontinued operations
290,038
51,425
Profit / (Loss) before tax
(149,822 )
166,354
95,473
Adjustments:
Depreciation and amortization
9
342,992
418,982
Impairment loss on assets
35
(125,319 )
78,675
(130,912)
Depreciation of right-of-use assets
9
13,827
15,385
Impairment loss of the shareholding of Lignite Subsidiaries
17
88,000
124,426
Amortization of subsidies
9
(16,172 )
(18,857 )
(9,896)
(12,443)
Income from long-term contract liabilities
34
(91,852 )
(88,577 )
(248)
(248)
Income from the spin off of distribution network
(52,301)
-
Share of loss/ (profit) of associates/ joint ventures
18
(4,350 )
(2,423 )
-
2
Interest income and dividends
(59,294 )
(60,108 )
(65,222)
(81,824)
Sundry provisions
5,459
47,412
Utilization of the provision of mines’ land restoration areas
32
(10,777 )
(10,777)
-
Foreign exchange gains losses on loans and borrowings
(1,159 )
(1,126)
835
Unbilled revenue
6
(347,935 )
(347,935)
83,157
Disposals of property, plant and equipment and intangible
assets
15
(4,536 )
(559)
880
Amortization of loans’ issuance fees
30
7,133
3,212
Interest expense
107,278
104,636
Operating profit/(loss) before working capital changes
321,654
668,973
(Increase)/decrease in:
Trade receivables
21
(234,030 )
(74,558 )
(364,629)
(34,763)
Other receivables
23
(830,768 )
(848,738)
56,847
Inventories
20
(5,311 )
769
6,246
Increase/(decrease) in:
Trade payables
36
(319,754 )
(248,788 )
(444,194)
(398,864)
Other non – current liabilities
34
685,929
234,372
Accrued and other liabilities excluding interest
39
1,045,037
36,475
Restricted cash
(7,154 )
4,525
14,949
(Payment) / Collection of Income Taxes
14
103,153
-
Discontinued operations
5
(18,822)
199,630
Net Cash from Operating Activities
484,684
783,865
Investing Activities
Interest and dividends received
12
65,222
81,824
Capital expenditure for property, plant and equipment and
intangible assets
15,16
(680,148 )
(401,694 )
(426,053)
(208,593)
Proceeds from long-term contract liabilities
34
-
-
Investments in subsidiaries and associates
(4,759 )
(33,700)
(25,000)
Sales of property, plant and equipment
15
40,637
-
Discontinued operations
5
(15,599)
(101,240)
Net Cash used in Investing Activities
(405,882 )
(278,905 )
(369,493)
(253,009)
Financing Activities
Net change in short-term borrowings
37
230,000
30,000
Principal lease payments of right-of-use assets
42
(22,711 )
(23,825 )
(15,052)
(16,634)
Proceeds from long-term borrowing
30
1,880,364
226,637
Principal payments of long-term borrowing
30
(1,497,516 )
(399,547 )
(1,343,742)
(220,557)
Interest paid and loans’ issuance fees
(162,274 )
(160,013 )
(110,929)
(103,846)
Dividends paid
(12 )
(1 )
(12)
(1)
Share capital increase including expenses
26
1,284,074
-
Discontinued operations
5
(154,630)
(24,976)
Net Cash used in Financing Activities
(76,744 )
1,770,073
(109,377)
Net increase / (decrease) in cash and cash equivalents
1,885,264
421,479
Cash and cash equivalents at the beginning of the year
626,940
205,461
Cash and cash equivalents at the end of the year
2,512,204
626,940
- - The accompanying notes are an integral part of the consolidated and separate financial statements.
- - *Some figures of the Group and the Parent Company are restated compared to those published in the annual financial statements as of December 31st, 2020 (See
Note 44).
162
D. NOTES ΤΟ THE FINANCIAL STATEMENTS
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro unless otherwise stated)
163
1. CORPORATE INFORMATION
duration as a State owned and managed corporation for electricity generation, transmission and distribution
throughout Greece . In January 1, 2001 PPC was transformed into a société anonyme with a duration of 100 years
and efective December 2001, PPC’s shares are listed on the Athens Stock Exchange.
PPC headquarters are located at 30, Chalkokondili Street, Athens, 104 32 Greece .
The accompanying financial statements include the separate financial statements of PPC and the consolidated
financial statements of PPC and its subsidiaries (“the Group”).
On December 31
st
, 2021 the number of personnel employed by the Group was 12,909 (2020: 13,799). On
December 31
st
, 2021 95 employees of the Group (2020: 92), have been transferred to several State agencies
(ministries, organizations, etc.), out of which, 90 were compensated by PPC (2020: 89). The total payroll cost of
such employees, for the fiscal year ended December 31
st
, 2021 amounted to Euro 3,969 (2019: Euro 3,507).
Additionally, on December 31
st
, 2021, PPC’s transferred employees in EFKA (Greek Single Social Security
Institution) amounted to 185, (2020: 222) for which payroll cost amounted to Euro 8,933 (2020: Euro 9,636).
PPC Group generates electricity in its own power generating stations of the Parent Company, from its wholly owned
subsidiaries "LIGITIKI MELITIS S.A." and "LIGNITIKI MEGALOPOLIS S.A." and ‘’PPC Renewables S.A.‘’, and
distributes electricity to consumers through its own distribution lines for Medium and Low voltage through its wholly
owned subsidiary Hellenic Distribution Network Operator “HEDNO S.A.”. PPC Group has also developed an urban
fibre optics network. Lignite consumed by the Group’s lignite-fired power stations is extracted, to a significant extent,
from its own lignite mines.
Ιn the Fourth Quarter of 2019, the Parent Company started to operate in the Natural Gas market.
2. LEGAL FRAMEWORK
CHANGES IN THE LEGAL FRAMEWORK OF THE ELECTRICITY MARKET FOR 2021
Α. Electricity Markets
Α1. New Electricity Markets
The Target Model of the electricity market started in Greece from November 1, 2020. In particular, the Next Day
Market, the Intraday Market and the Balancing Market started their operation on November 1, 2020 according to
RAE Decision 1298 / 11.09.2020 (Government Gazette Β΄4415 / 07.10.2020). While, the Derivatives Market started
its operation with derivative products without physical delivery, on March 23, 2020 and with the possibility of physical
delivery from November 1, 2020, the date when the other markets started. RAE and EXE in 2020 and 2021 issued
a series of methodologies and technical decisions to regulate individual issues of these markets. We quote some
decisions of 2021 that significantly determined the mode of operation of the Electricity Market.
• With RAE’s Decisions 87/2021 (Government Gazette B '640 / 18.02.2021) and 661/2021 (Government Gazette B'
4259 / 15.09.2021) it was defined for the years 2021 and 2022 extension of the submission restriction only by the
Thermal Production Units Block Orders for the Next Day Market and the submission parameters and technical
characteristics of the acceptable Next Day Market Types were defined, structural changes that may affect the
formation of the clearing price of the market as well as the development of strategies in the market. market for the
creation of feasible purchase programs
• The Hellenic Energy Exchange issued on 09.04.2021, with effect from 14.04.2021, the amended Decision No. 5 for
the Contracts for the Future Fulfillment of Electricity in the Energy Financial Market (Derivatives Market) of HEnEX,
as well as the amended Decision No. 6. for the Charges of Members of the Energy Financial Market (Derivatives
Market) of HEnEX. Following the above, Decision No. 5 was amended again on 27.12.2021, with effect from
28.12.2021, setting the maximum Daily Price Fluctuation in the Market at ± 60% on the Starting Price for all
Contracts, regardless of Delivery Time, influencing the shaping of market participants.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
164
2.LEGAL FRAMEWORK (CONTINUED)
• According to the Announcement of ENTSO-E, May 12th 2021 was set as the settlement day for the physical delivery
into the conjunctive operational Day Ahead Market in the cross-border connection between Greece and Bulgaria,
for the fulfilment of the unified European electricity market target.The connection has decisively influenced the
results of the Next Day Market, hence the financial results of the participants. All participants now prepare their bids
in a more dynamic way, based on the estimated prices of the neighboring markets.
• Decision RAE 610/2021 (OG B 3857/ 18.08.2021) amended the Rules of Operation of the Next Day Market
and the Intraday Market regarding the planning principles and the operation of the Additional Regional Intraday
Auctions (CRID) RAE 701/2021 (OG Β΄4342 / 20.09.2021) was set on September 22, 2021 as the first Day of
Fulfillment of Natural Delivery, of the coupled operation of the Intraday Market of Greece with the
corresponding ones of Italy and Slovenia through CRIDAS. The operation of CRIDAs in conjunction mode
affects the financial results of the participants. Since the launch of CRIDAs, the volume of the Intraday Market
has increased significantly (over 60%), and the Parent Company now participates with much increased
volumes in this market.
• Law 4821/2021(OG A 134/31.07.2021) determined:
-The transitional provisions for the operation of the electrical interconnection of Peloponnese - Crete and in
particular a) during the transitional period from 3.7.2021 to 30.09.2021 and b) from 1.10.2021 (last day of
completion of the first phase), to the Completion day of the 2nd phase of the electrical interconnection of the
island of Crete with the Mainland System, which will take place with RAE’s decision.
-The automatic transfer from August 1, 2021 of all fixed assets of high voltage (HV) of the electrical system of
island Crete, owned by the Public Electricity Company (PPC SA) and managed by the Hellenic Electricity
Distribution Network (HEDNO SA) as Administrator of Non-Interconnected Islands, from PPC SA to IPTO SA,
by full ownership, use and possession (Note 15).
-The manner and settling of the consideration of the transferred fixed assets.
-The conditions and possibility of the transfer to IPTO SA HEDNO’s personnel, employed in Island
Management Department/ Services of Crete - Rhodes, with the objective of the operation of the Transmission
Control System of Crete.
• With Decision 734/2021 (OG Β΄4633/ 06.10.2021) RAE extended, after evaluation of the level of technical and
operational readiness of the competent Administrators, the commencement of implementation of the hybrid
market framework of the electrical system of Crete of Phase A, ie November 1, 2021. Operational readiness
was defined by the provisions of articles 104-108 of Law 4821/2021 (OG A' 134/ 31.7.2021). With the
Decisions RAE 775/2021 (OG B' 4982/ 27.10.2021) and RAE 807/2021 (OG B' 5025 / 29.10.2021) the
necessary amendments to the Codes and Regulations of the markets regarding the participation of the
electrical system of Crete were approved, during the First Phase of interconnection of Crete, shaping the new
way of participation in the Greek market and compensation of the Company, as Producer and Supplier in
Crete.
• With Law 4843/2021 (OG A’ 193 /20.10.2021), Hellenic Republic in order to fulfill its commitment on
September 1st, 2021 to the European Commission for taking structural measures in the field of electricity
production using lignite, PPC is obliged, through its participation in one or both of the organized markets of
energy derivatives (EEX SA, EEX AG) to create a Net Sales Position in quarterly Hellenic Future Fulfillment
Contracts, with quantities of electricity amounting to:
a) fifty percent (50%) of the lignite electricity generation of the corresponding calendar quarter of the previous
calendar year, during the fourth quarter of 2021 and up to the third quarter of 2022,
b) forty percent (40%) of the lignite electricity production of the respective calendar quarter of the previous
calendar year, in the following quarters, by 31 December 2024 at the latest. The above quantities do not take
into account the production of lignite electricity for strategic backup purposes.
In this context, PPC has taken positions in futures contracts (Note 8).
In the same law (articles 48 and 49) and in the context of the abolition of structural disinvestment measures
based on Law 4533/2018, the companies "LIGNITIKI MEGALOPOLIS SOLE SHAREHOLDER SA" and
"LIGNITIKI MELITIS SOLE SHAREHOLDER SA" can be merged through absorption by PPC SA. From the
date of registration of the merger agreement in G.C.R., PPC automatically obtains, as a universal successor,
all the assets and liabilities, rights, obligations and legal relations of the absorbed companies, including the
exploration and exploitation rights on the lignite deposits, as well as the administrative licenses and approvals,
which were submitted to the above companies. The Board of Directors of PPC decided in 2021 the absorption
of its lignite subsidiaries, which is expected to be completed within the second quarter of 2022 with the
approval of the Greek Commercial Register.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
165
2. LEGAL FRAMEWORK (CONTINUED)
• RAE, with decisions 687/2021 (OG Β΄5088/ 04.11.2021), RAE 688/2021 (OG Β΄5088/ 04.11.2021), RAE
689/2021 (OG Β΄5087/ 04.11.2021), RAE 690/2021 (OG 5087 / 04.11.2021), RAE 691/2021 (OG B’ 4964 /
27.10.2021) and 692/2021 (OG Β '4872 / 21.10.2021) the numerical values of the parameters of the Charges
for Non-Compliance (CMS) were determined as provided for in the Balancing Market Regulation, causing
financial burden to the participants in the Balancing Market in case of imposition during their participation in
the market.
• With RAE Decision 791/2021 (OG B’ 5200/ 10.11.2021) the price of the Unit Charge of RES and SITHYA
Producers (UOCC) was redefined to cover the Operating and Investment expenses of DAPEEP for the year
2021, and with the Decision RAE 988/2021 (OG B’ 6047/ 20.12.2021) the Unit Charge for the year 2022 was
determined. With this decision, the cost of RES was affected, as it is a charge paid by the producers to
DAPEEP.
• With RAE’s decision 703/2021 (OG B' 5663/ 03.12.2021) defined the trial period of application of the basic
principles of the methodology for the distinction of energy for purposes out of balance (redispaching) and the
balancing energy and the relevant rules action, which is also foreseen in the Greek Electricity Market Reform
Plan (electricity market reform plan, Section 2, Action A.1), starting on 1.12.2021 and lasting at least one
month, aiming to reduce the total costs in the Balancing Market.
• With RAE’s Decision 1014/2021 (OG Β΄6419/ 31.12.2021) it was deemed necessary to continue the
implementation of the measure according to which, per supply portfolio, for Participants with a commission
share of 40% (it was 4%, ie the restriction concerns now only PPC) for each Market Time Unit is determined
a maximum percentage of transactions A% = 20% on Energy Financial Instruments (Forward Hedging Ratio
“FHR”), settled with physical delivery of energy, which are declared in the trading system of the Next Market.
• RAE, with decision 987/2021 (OG B '6485 / 31.12.2021) amended the regulatory framework for the Fees and
Charges of the Next Day and Intraday Market (Market Regulation, Calculation Methodology, Fees and
Charges for the years 2020-2022), shaping the cost Company's participation in these markets.
• The issues of interconnections of Greece with Italy and Bulgaria, with non-EU countries (Albania, Northern
Macedonia and Turkey), as well as the issues of interconnections of the wider region of Southeastern Europe
(SEE CCR), whose capacity and manner distribution have a decisive effect on the operation of the coupled
electricity markets, have been defined by RAE Decisions 55/2021(OG B' 273 / 27.01.2021), 123/2021 (OG B'
1036 / 17.03.2021), 239/2021 (OG B’ 2153 / 25.05.2021), 519/2021 (OG B' 3435 / 29.07. 2021), 520/2021 (OG
B' 3436 / 29.07.2021), 600/2021 (OG B' 5217 / 11.11.2021), 861/2021 (OG B' 5418 / 22.11.2021), 1009/2021
(OG B' 6227 / 24.12.2021), based on the relevant European Regulations.
• With RAE’s decision 385/2021 (OG B’ 2086 / 20.05.2021) the monthly minimum and maximum safety level of
the reservoir of the hydroelectric units was determined , after a suggestion of PPC and its acceptance by
IPTO, characteristics which affect the participation of the units in the electricity markets.
A2. PUBLIC SERVICE OBLIGATIONS (PSOs)
• With the Decision 64830 EX 2021 (OG Β΄2378 / 07.06.2021), HEDNO received on 30.06.2021 an amount of
€70 mill. to cover the cost of Public Service Obligations of electricity sector.
• With the Decision RIS/DIE/71867/1033 (OG Β΄3635 / 06.08.2021) was determined for the first time the
obligation to provide guarantees from the Electricity Suppliers and the Self-procured Customers, as had been
foreseen with the provisions of article 42 of L.4643 / 2019, to HEDNO in case of non-payment of PSO charges
of the Interconnected Electricity System of the country. The Table of guarantee amounts for the first period of
the provision of guarantees (1.10.2021 - 31.03.2022) was approved by Decision 725/2021 (OG B΄4457/
29.09.2021) and for the year 2022 (coverage periods 01.04.2022 -30.9.2022 and 01.10.2022-31.03.2023) with
RAE Decision 986/2021 (OG B' 6485 / 31.12.2021).
• Law 4872/2021 (OG A'247 / 10.12.2021) defined a suspension of payment of PSO charges for the period of
electricity consumption 1.11.2021 - 31.3.2022, with the possibility of extending or shortening the period based
on RIS Decision, for certain categories of consumers. As a result, the Parent Company suspended its invoicing
to its customers, while at the same time the corresponding charges were not invoiced by HEDNO.
• Law 4876/2021 (OG A' 251/ 23.12.2021) defined the settlement of due payments of PSO charges for previous
years that were not recovered and concern the years before the launch of article 36 of Law 4067/2012
(01.01.2012), with RAE’s Decision that was issued within 3 months from the launch of law.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
166
2. LEGAL FRAMEWORK (CONTINUED)
The payment of due charges is made gradually and only in case of annual surpluses of the Special Account
of PSO and the method of their payment, taking into account the benefit resulting from the interconnection of
former NII, is determined by RAE, following a recommendation of HEDNO as the Manager of the Special
Account.
Α3. Hellenic Electricity Transmission System (HETS) and Hellenic Electricity Distribution Network (HEDN)
• RAE with its Decision 1566/2020 (OG Β΄1389 / 08.04.2021), determined the return on the Regulated Asset
Base of the Hellenic Electricity Distribution Network (HEDN) for the Regulatory Distribution Period 2021 -
2024, equal to 6.7%, a figure that contributes in the calculation of Distribution Network Charges.
• RAE with its Decision 248/2021 (OG B’2086 / 20.05.2021), approved the numerical values of the loss rates of
HEDNO with effect from 01.07.2021, which affects the quantities that the energy suppliers buy from the Energy
markets.
• RAE with its Decision 492/2021 (OG 2749 / 28.06.2021), approved the Charges for the Use of the Hellenic
Electricity Transmission System as approved by RAE Decision 179/11.2.2021.
• With its decision 534/2021 (OG B '3292/ 26.07.2021) RAE established a methodology for calculating
guarantees for the Consumption Charges of the Network of Consumers of the Interconnected Network of
HEDN and approved a relevant amendment of the Management Code of the Hellenic Network. For the year
2022 (coverage periods 01.04.2022-30.9.2022 and 01.10.2022-31.03.2023) the parameters of the Table of
Quantities Guarantee were determined by the Decision of RAE 986/2021 (OG B' 6485 / 31.12.2021).
• With Decision 632/2021/05.08.2021, RAE approved the Allowed Revenue for the 1st Regulatory Period 2021-
2024 (2021: € 775.984, 2022: € 781.851, 2023: € 780.897, 2024: € 804.837), and the Required Revenue for
2021 of the Hellenic Electricity Distribution Network. HEDNO (€ 777,313) (part of which corresponds to PPC
SA (Main HEDNO) and HEDNO, the budget of the Offshore Islands Manager (HEDNO), as well as the
numerical application prices of the incentive to limit Losses at HEDNO in the period 2021-2024. The Regulated
Assets Base of HEDNO, including MDNs, for the first year of the Regulatory Period (2021) was set at €
2,909,210. Also, from the final liquidation of the revenues from the charges of HEDNO for the year 2019, a
total under-recovery of the Required Revenue 2019 amounting to € 18,057 was recognized, which will be
gradually recovered starting from the year 2021 and within an eight-year period.
• With Decision 631/2021 (OG B' 4282 / 16.09.2021) RAE approved the Network Development Plan for the
period 2021-2025, based on the recommendation of the Administrator.
• Decision RAE 707/2021 (OG B '5502 / 29.11.2021) approved the amendment of provisions of the Management
Code of HEDN, regarding the application of a new methodology for the ND charges and the Decision RAE
707A / 2021 (OG B' 5427 /22. Consumers with Electric Vehicle Recharge Infrastructure)
Moreover:
Law 4819/2021(OG A 129/23.07.2021) (Note 6):
Determined the extent, the terms and the conditions of the separation of the Distribution Network, owned by PPC
SA, with a contribution to HEDNO SA.
• In particular, it stipulated that the Distribution Network business unit does not include the high voltage network
of Crete and the existing fiber optic network, the related assets and related rights and obligations, as well as
the right to install fiber optics or other electronic communications network components on HEDN. PPC SA
remains the Network Operator and is obliged to provide access and transit rights in favor of third parties.It
modifies the existing exclusivity license of the ownership of the HEDN of PPC SA, so as on the completion of
the separation of the distribution network business unit, it will be transferred to HEDNO SA.
• The existing exclusivity license of the ownership of HEDNO of PPC SA is modified, so that in case of
separation of the distribution network branch, it is transferred to HEDNO SA.
Α4. Other Issues of the Electricity Market
• By RAE’s Decision 132/2021 (OG Β’ 581/12.02.2021) certain provisions of the Code of the RES Operator and
Guarantees of Origin (OG Β’ 4748/2020) were amended, regarding the Renewables special levy according to
Law 4625/2019, the extraordinary charge of €2 per MWh for year 2021 to each representative of quantities
imposed by Law 4759/2020.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
167
2. LEGAL FRAMEWORK (CONTINUED)
• With the Decision YPEN/DHE/ 71867/1033 (OG Β΄3635 / 06.08.2021) was determined for the first time the
obligation to provide guarantees from the Electricity Suppliers and the Self-procured Customers, as had been
foreseen with the provisions of article 42 of L.4643 / 2019, to DAPEEP in case of non-return of the revenues
of the Special Account for RES and SITHYA (ETMEAR). The Table of guarantee amounts for the first period
of the provision of guarantees (1.10.2021 - 31.03.2022) was approved by Decision RAE 662/2021 (OG Β΄4457
/ 29.09.2021).
• Decision RAE 381A/ 2021 (OG Β΄2935 / 05.07.2021) adjusts the amount of annual reciprocal fees in favor of
RAE, imposed during the year 2021 to companies operating in the markets of electricity, gas and liquids fuel.
• With RAE Decision 130/2021 it was granted to PPC license for the production of electricity in the region of
Komotini from a combined cycle station with natural gas fuel of 665 MW. The validity of the license is set at 35
years and with the aim of operating the unit until 31.12.2024.
• With RAE Decision 217/2021 (OG B’1323 / 05.04.2021), the Unified Production License of PPC S.A. was
amended with the deletion of Units I and II of SES Amyntaio, III and IV of SES Megalopolis and I of SES
Melitis. The deletion of SES Megalopolis and SES Melitis from the Unified Production License of PPC S.A.
was due to the fact that those are owned by the lignite subsidiaries of the Group.
• With Law 4796/2021 (OG A '63 / 17.04.2021) was extended, until 05.05.2021, the operation of the Cardiac
Power Plant Unit IV to cover the district heating needs of the Eordea area and with the RAE Decision 758/2021
( Government Gazette B '6022 / 20.12.2021) the Unified Production License of PPC SA was further modified.
with the deletion of Heart Units III and IV, at her request. The deletion of the Kardia and Amyntaio NPP Units
is approved following a request from PPC, due to the completion of the scheduled operating hours (from
01.01.2016) in the context of the limited duration deviation from compliance with the emission limit values of
the European Directive 2010/75 / EU (for industrial emissions).
• Ministerial Decision YPEN / DIE / 74784/1070 (OG B '3730 / 12.08.2021) defined issues for the imposition of
the special fee for exploration and exploitation rights of lignite, amounting to €1.40/MWh of electricity produced
from lignite, imposed by Article 7 of Law 4533/2018, as amended and in force by Law 4685/2020, from 1
January 2019 in favor of the Regions of Western Macedonia and Peloponnese and to the detriment of
electricity producers using lignite that they own or have been granted in any way rights of exploration and
exploitation of lignite on lignite-bearing areas within the Greek Territory.
• Law 4819 (OG A '129 / 23.7.2021) and Law 4839/2021 (OG A' 181/ 02.10.2021), by amending Law 3468/2006,
additionally determines the distribution of revenues from auction auctions of greenhouse gas emissions for
the years 2021 to 2030, including the strengthening of the special account "Energy Transition Fund"
(hereinafter "TEM"), managed by DAPEEP, which is established by Article 61 of the same law.TEM can be
financed from the state budget, as well as from the Special Account APE-SITHYA. Based on the amendments
with the provisions of Law 4855/2021 (OG A '215 / 12.11.2021) and Law 4876/2021 (OG A' 251 / 23.12.2021)
that followed, TEM for the protection of consumers provided electricity subsidy for the months of September,
October, November and December 2021 to consumers, whose benefits are connected to low voltage and
especially for the consumption period 01.08.2021-31.12.2022 may also be consumers of medium voltage
agricultural use, as well as companies active in the field of drying agricultural products. The amount of the
subsidy (€ / MWh), the procedure, the way and the time of its granting, the liquidation time, the consumption
period, the maximum and minimum consumption limits, as well as any other issue related to the granting of
the subsidy were formulated by ministerial decisions / 109471/1763 (OG Β '5402 / 22.11.2021), / 124574/2147
(OG Β΄6321 / 30.12.2021).
In particular, the beneficiaries of the subsidy were all electricity consumers whose benefits are connected to
the low voltage network, including the beneficiaries of special tariffs Social Residential Tariff (SRT) and
Solidarity Services Tariff (SST). For consumers, who were contracted on floating electricity supply tariffs
related to the wholesale electricity purchase price, the unit subsidy was set for the month of September at €
30 / MWh, for the month of October at € 60 / MWh, for the month of November to € 130 / MWh and for the
month of December to € 165 / MWh on electricity consumption.
Respectively, for the beneficiaries of special tariffs SRT and SST, the monthly subsidy for the month of
September, was set at € 30 / MWh, for the month of October at € 80 / MWh, for the month of November at €
150 / MWh and for the month of December to € 185 / MWh on electricity consumption. For consumers, who
are contracted on fixed charge electricity supply tariffs, the unit subsidy was set for each month of the period
of application of this measure, in the amount of € 20 / MWh on electricity consumption. In all previous cases,
the subsidy was granted for the first 300 KWh for each month.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
168
2. LEGAL FRAMEWORK (CONTINUED)
The details of the above subsidy were formulated with the ministerial decisions YPEN/ DIE /109471/1763 (OG
B' 5402 / 22.11.2021), YPEN/ DIE/124574/2147 (OG B' 6321 / 30.12.2021). In this context, PPC received €
425 million within the last two months of 2021 from DAPEEP for the above subsidy, as this subsidy is included
in the Low Voltage invoices reducing the receivable amount by PPC’s customers.
• Ministerial decision YPEN/DKAPA/100628/1904 (OG Β΄5029 / 30.10.2021) initially and subsequently, the
Decision YPEN/DKAPA/ 109526/2055 (OG B '6295 / 29.12.2021) determined the way of distribution of
revenues from auctions of greenhouse gas emission rights for the year 2021.
From this revenue, the 4% is a resource of ELAPE, the 4.5% is allocated to the Green Fund to finance actions
for the development of sustainable economic activities of low carbon and environmental footprint, with the aim
of strengthening and gradual diversification of local economies and creation of new jobs in the Regional Units
of Kozani, Florina and in the Municipality of Megalopolis of the Regional Unit of Arcadia, the 1.5% is allocated
to the special purpose account at the Bank of Greece for the financing of projects and actions to promote e-
mobility and the 73.86% is available in the Special Account under the name "Energy Transition Fund".
• With Law 4872/2021 (OG A' 247/ 10.12.2021), the fair transition of the areas of the Region of Western
Macedonia and the Municipality of Megalopolis has been designed and organized, that depend on the
extraction and the use of lignite, as well as the Region of the North Aegean, South Aegean and Crete and
Crete that depend on the use of oil for the production of electricity, as these areas are mentioned in the
Territorial Plans for Fair Development Transition (ESDIM), which accompany the NSRF - Warrant 2021-2027
Program. While with articles 27 to 31, special provisions are defined for the separation of the Lignite phase-
out Utilization Sector of the PPC’s Zones.
• With Law 4876/2021 (OG A' 251 / 23.12.2021) article 66, an extension of the following regulations was defined:
1) Extension until 31.02.2023 of the Temporary Single Operating License of the PPC power plants and PPC’s
units are included in the Single Production License and have been transferred to PPC Renewables, except
for those to which an independent Operating License has already been granted (based on the deadlines of
article 24 of Law 3377/2005) 2) Extension until 30.04.2022 of the deadline for the licensing process for
electricity storage stations, 3) Extension until 31.12.2022 of the possibility of providing support services from
PPC to HEDNO, as defined in Law 4001/2011 in the context of independence of HEDNO.
The same Law defined the obligation of the participants in the electricity market to pay interest for financial
debts to the Managers of IPTO, HEDNO and DAPEEP that became overdue until 31.12.2014 and which do
not relate to regulated network charges, and rights to use interfaces, subject to the conditions of the Civil Code
(articles 342, 345 and 346) and if, by virtue of a final court decision, the relevant interest amounts have been
awarded in favor of the final legal beneficiaries (persons who, according to the regulatory framework, have
claims for monetary debts to the Administrators, due to their participation in the electricity market). The right
of the Administrators to collect interest is exercised after the payment of interest to the final legal beneficiaries.
• With the Ministrial Decision YPEN/ DIPA/ 124145/7794 / 27.12.2021, the request of PPC SA was accepted to
include plants of Atherinolakkos (Units I-II), Melitis (Unit I), Megalopolis (Unit IV), Agios Dimitrios (Units I-II, III-
IV, V) of PPC SA and its subsidiaries under the provisions of articles 12.4 and 27.1 of JM 36060/1155/ Ε.103/
2013 (OG B’ 1450 / 14.06.2013) as in force and additional operating hours of the Units were approved. This
decision does not affect the withdrawal plan of PPC’s lignite plants.
• With the Ministrial Decision YPEN/DIE/124788/2150 (OG B' 6302 / 29.12.2021) the Ministrial Decision
YPEN/DHE/ 70697/861 / 14.07.2020 was amended regarding the one-off special aid for the reconnection of
electricity supplies that have debts until 31.12.2021 and have been disconnected from the network until
15.02.2022, through the Special Management Account of HEDNO, which will be financed by the Special
Account TEM, with the amount of € 9 million. The financing of TEM’s Special Account will be from part of the
revenue from the greenhouse gas emissions auctions and not from the state budget.
European Commission (EU) Affairs
• On 14 July 2021, the European Commission published the proposal for the legislative package "Fit for 55" which
aims to achieve the ambitious goal of reducing greenhouse gas emissions by 55% by 2030, compared to 1990
levels, aligning EU policy with the political mandates of the Green Agreement and EU climate legislation. This new
package Fit for 55 is compatible with the de-lignification plan and the sustainable development goals of PPC Group.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
169
2. LEGAL FRAMEWORK (CONTINUED)
In December 2021, the second part of the "Fit for 55" legislative Package was approved, which includes the package
for Effective and Green Mobility, the Carbon Empty Discharge Package in the Hydrogen & Gas Markets, an
Announcement for the Sustainable Carbon Cycles, a new Regulation for the Reduction of Methane Emissions, and
the revision of the Building Energy Efficiency Directive with the most important proposal being the Hydrogen and
Gas Markets Package, which includes the revision of the Natural Gas Regulation and Directive, with the aim of
exempting the EU gas market. from carbon emissions and facilitating the adoption of renewable and low carbon
gases such as hydrogen.
• Regulation (EU) 2020/852 (EU Taxonomy), establishing a framework for facilitating sustainable investment and
as published in the Official Journal of the European Union on 22.06.2020, entered into force in July 2021
establishing the criteria and requirements, which determine whether an economic activity is characterized as
environmentally sustainable, aiming at directing financial flows to green activities and investments. In order to
determine the environmental viability of a particular economic activity, the Regulation sets six (6) environmental
objectives and in order to determine the extent to which an investment is environmentally sustainable, the economic
activity must meet the criteria of sustainability. A relevant report is included in the annual Report of the Board of
Directors.
B. NATURAL GAS MARKET
B1. Gas balancing pedestal
Issues were defined regarding the operation of the Gas Balancing Podium and shape the way of participation in it:
• With the RAE Decision 469/2021 (OG B’ 2726/ 25.06.2021) the Annual Load Balancing Services Plan of the NSRF
for the year 2022 was approved.
• With RAE decision 498/2021 (OG 3530/ 03.08.2021) approved the prices of the parameters included in the
calculation of the load balancing cost of the NSRF (balancing gas supply price and cost of using the LNG installation
and the NTUA for Load Balancing purposes) for the year 2021, based on the annual load balancing plan of the
NSRF approved by RAE and the relevant Administrator-Supplier contracts concluded through an international
tender for the year 2021.
• RAE, with decision 1061/2021 (OG B '49/ 12.01.2022) amended the Load Balancing Manual of the National
Natural Gas Transmission System, based on the 7th Revision of the Management Code of the NSRF and especially
the changes related to natural gas transactions and the balancing of load in the NSRF, in view of the determination
of the operating framework of the Trading Stand by the HENEX, with effect from the commencement of the operation
of the Trading Stand.
• During the year 2021, the procedures for the operation of a trading platform (spot market) for natural gas in Greece
were initiated by the HENEX, in which the Company will participate with the launch of its normal operation. On
March 21, 2022, the operation of the gas spot market was launched.
Β2. Natural Gas Networks
• By virtue of RAE Decision 116/2021 (OG Β΄1392 / 08.04.2021), the TYNDP of the National Natural Gas
System (NNGS) for the period 2021-2030 was approved.
• With the RAE Decisions 735/2021 (OG Β΄4687 / 11.10.2021) and 1060/2021 (OG Β' 37/ 10.01.2022) the 7th
Revision of the NSRF Management Code was approved and completed, which includes the rules and
procedures governing load balancing and balancing operations by the Administrator and are compatible with
the rules of the Trading Platform designed by the HENEX.
• Decision RAE 633/2021 (OG Β΄4271 / 16.09.2021) amended Decision RAE 643/2018 concerning the
Development Framework for Remote Distribution Networks using Compressed / Liquefied Natural Gas.
B3. Other issues of the Natural Gas Market
• With the Decision A1185 (OG Β΄3985 / 30.08.2021) of the Ministry of Energy and AADE, the terms, the
conditions and the required controls were approved, for the exemption from the Special Consumption Tax
(SCT) of Natural Gas used for electricity generation.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
170
2. LEGAL FRAMEWORK (CONTINUED)
C. Electromobility
Arrangements were set that form the required actions of the Company for its activity in the field of electrification:
• Law 4819/2021 (OG A’129 / 23.07.2021) defined, through an amendment of Law 4710/2020 for the promotion
of electrification, the possibility, through a ministerial decision, of announcing actions for the promotion of
electrification and E/V through financial incentives for the purchase or lease of any type of purely E/V or hybrid
E / external charging with emissions of up to 50g CO2 / km, as well as for the supply and installation of PC
recharge points, defining terms and conditions for obtaining financial incentives, beneficiaries, procedures for
their implementation.
• JMC 355033 (Government Gazette B '5776 / 10.12.2021) regulates issues related to the management and
transmission of data related to the operation of electric vehicle market operators, publicly accessible points for
recharging electric vehicles (PC), rights access to the Register of Infrastructure and Electricity Market Bodies
(M.Y.F.A.H.) of the interested parties, specifying the type, form and quality of the data in order to harmonize
with the European directives and regulations.
• With JMC 355076 (Government Gazette B '5777 / 10.12.2021) are defined for the Register of Infrastructures
and Electricity Market Bodies (M.Y.F.A.H.), issues of operation and interconnection with other Registers and
applications of the public sector.
D. SUBJECTS OF RENEWABLE ENERGY SOURCES (RES) AND CO-PRODUCTION OF ELECTRICITY - HIGH
EFFICIENCY HEAT (SITHYA)
• Arrangements have been set that affect the decision-making and formulation of proposals for activation in the
field of RES: Law 4819/2021 (Government Gazette AD129 / 23.07.2021) defined:
• Licensing of hybrid RES stations and electricity storage stations as well as provision for a binding timetable for
the development and participation of storage units in the electricity market and in power mechanisms.
• Suspension of deadlines for Ensuring the implementation of special projects for geothermal stations and
determination of power margin in saturated networks for derogatory granting of network connection offers to
photovoltaic stations.
• Submission of a letter of guarantee of Producer Certificate, the model and issues of duration, submission,
renewal and return determined by RAE Decision 696/2021 (Government Gazette B '4349 / 21.09.2021).
• With the ministerial decision / 78429/3166 (Government Gazette Β '4208 / 13.08.2021) new categories of RES
and SITHYA stations were added that are included in the new support regime of the RES and SITHYA
production stations and with the Decision / 5096 (Government Gazette B '6250 / 27.12.2021) the technologies
or the categories of the electricity generation stations from RES and SITHYA that are included in a support
regime in the form of Operational Aid through a competitive bidding process based on the provisions of Law
4414 / 2016.
• With the Decision RIS / DAPEEK / 121501/5015 (Government Gazette B '6351 / 30.12.2021) a new Special
Program for the Development of Low Power Photovoltaic Systems was prepared, up to 6 kWp and for MDNs
up to 3 kWp, on buildings for domestic consumption until 31.12.2023
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
171
3. SIGNIFICANT EVENTS
Effects of the COVID-19 Pandemic
The COVID-19 pandemic continues in year 2021 to affect the global social and economic life. In Greece, after the
resumption of the restrictive measures from October 2020 until approximately the end of March 2021 (with
measures of limited re-opening of stores during the Christmas period), from mid-April 2021 the restrictive measures
gradually began to be lifted, as a result of the program of massive vaccination applied, while there was an almost
complete liberalization of the operation of stores.
Due to the fact that the majority of the impacts mainly comes from the measures taken, both worldwide and in
Greece since mid-March 2020 to reduce the spread of the pandemic and to mitigate the economic impact on
businesses and individuals, the Group’s and the Parent Company’s operation has been affected, initially causing
short-term positive effects on their financial position, operating results and cash flows, mainly due to the
considerable decrease in oil and natural gas prices. In the medium to long term, the pandemic has resulted in the
delay or freezing of new energy investments, which at least partially corresponds to the high prices of energy
products (electricity, gas, oil, CO2 emission allowances etc.), observed in 2021, combined with the strong global
recovery in demand for these energy products during 2021, as well as with geopolitical frictions that create
nervousness in the energy markets. In particular in Greece, after the recovery of electricity demand observed in the
first half of 2021, during the second half of 2021 a further increase in the demand for electricity was observed in the
Interconnected System, with a significant increase in its price in the Day-ahead Market, which in combination with
the increase in prices for emission allowances CO2 and natural gas, contributed to the increase of the energy
balance cost of both Greece and PPC for this period.
The Group and the Parent Company implemented a series of actions aimed at informing employees, raising their
awareness of prevention and protection measures, providing them with appropriate Personal Protection Measures
(PPE), protecting both them and their families and at the same time ensuring the smooth operation of their activities.
They also took emergency measures to energy consumers due to the pandemic, as mentioned in the Commercial
Policy section below.
The overall final economic impact from the COVID-19 pandemic, on the global and the Greek economy as well as
on business activities, cannot be assessed at this moment due to the high degree of uncertainty resulting from the
inability to predict the final outcome but also due to the secondary effects mentioned above. However in any case,
the Group’s and the Parent Company’s Management monitors constantly the developments of the COVID-19
pandemic and evaluates any possible further effects on the operation, financial position and results of the Group
and the Parent Company, being alert to take further appropriate precautionary measures to safeguard the Group’s
and the Parent Company’s liquidity and business activities.
Commercial policy
PPC is introducing a new Credit Policy, in accordance with the Electricity Supply Code, in the framework of which
it is intensifying its actions with the ultimate goal of reducing debts and increasing receipts. Finally, it expands and
creates new electronic and telephone billing services for better customer access to collection channels.
As early as the second half of 2020, the Commercial Policy was adapted to the new competitive environment,
offering new products with competitive energy charges, in order to attract customers such as PPC myHome Online,
PPC myHome Enter.
Since February 2021, the new add on service Greenpass Home is available for PPC Home customers, which
ensures that the amount of energy consumed in their households is produced by Renewable Energy Sources and
is reserved by PPC for them.
Moreover, since April 2021, another new PPC product, myHome Enter +, is available to its customers. It offers free
urgent technical service to the customers who choose it and through this product, PPC further expands its product
portfolio in Electricity.
In the first four months of 2021, PPC decided to absorb the possible charge that could result from the CO2
adjustment clause in the Low Voltage Electricity tariffs, while the CO2 adjustment clause has been activated from
May 2021.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
172
3.SIGNIFICANT EVENTS (CONTINUED)
From 5 August 2021, this clause was replaced by a new one, based on market price fluctuations, with a parallel
introduction of discounts of 30% to 50% depending on the bill, on energy charges in order to align the adjustment
mechanism with the rest of the market.
Also following the significant price increases, PPC, in addition to the support measures announced by the Minitsry
of Energy, announced an additional discount of € 30/ MWh for monthly consumption from 301kWh up to 600kWh
for the low Voltage tariffs for consumption from 1/10/2021 to 31/12/2021.
For the 2021, the consistency discount of 5% was maintained for customers with timely payment of their bills.
Following the updates in Low Voltage tariffs, from October 2021 PPC replaced the CO2 adjustment clause in the
Medium Voltage tariffs with the new clause based on the market price fluctuations.
It is pointed out that the new generation of myHome products (Enter, Enter+, Online) offer customers fixed
competitive charges, without applying any adjustment clause for the entire duration of the contract.
Shareholding of 5% of the photovoltaic projects that will be constructed by PPC SA in Western Macedonia
and Megalopolis
In May 2021, PPC SA in the framework of the Sustainable Development policy that it has adopted, with its decision
announced the participation of the inhabitants of Western Macedonia and Megalopolis in the PV parks that it will
build and develop in these areas (construction and operation of PV parks of total capacity 2, 5 GW) at a rate of 5%.
Collection of a prepayment from the Greek State for electricity consumption of its entities for the year 2022
The collection of advance payment by the Greek State against energy consumption of its institutions for 2022 was
carried out in accordance with the Decision of the Ministry of Finance 2/120354/ΔΛΤΠ(Α)/ 10.12.2021, (OG 5826
Β/ 14.12. 2021). On 15/12/2021 the amount of € 694.3 million was paid to the Parent Company by the Greek State
as a prepayment for the year 2022, always based on the five-year agreement signed with the Greek State on June
14, 2018.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
173
4. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES
4.1. BASIS OF PREPARATION
Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Approval of financial statements
The Board of Directors of the Parent Company approved the accompanying financial statements for the year ended
December 31
st
, 2021, on April 5
th
, 2022. These financial statements are subject to approval by the Parent Company’s
General Shareholders’ Meeting.
Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention, except for property, plant and
equipment (exluding lakes and mining land) and financial assets valued at fair value through other comprehensive
income that have been measured at fair value, assuming that PPC will continue as a going concern. The financial
statements are presented in thousands of Euro and all values are rounded to the nearest thousand, unless
otherwise stated. Management considers that the going concern principle is the appropriate basis for the
preparation of the present financial information.
Basis of consolidation
The consolidated financial statements include the financial statements of the Parent Company and its subsidiaries,
drawn up to December 31
st
each year. Subsidiaries (companies in which the Group directly or indirectly or through
other subsidiaries has an interest of more than one half of the voting rights or otherwise has power to exercise
control over their operations) have been consolidated. Subsidiaries are consolidated from the date on which
effective control is transferred to the Group and cease to be consolidated from the date on which control is
transferred out of the Group. Losses within a subsidiary are apportioned to the non-controlling interest even if that
results in a deficit balance. A change in the ownership interest of a subsidiary (without any change in control) is
accounted for as an equity transaction. All inter-company balances and transactions have been fully eliminated as
well as unrealized intra – group gains and losses. Where necessary, the accounting policies of subsidiaries have
been revised to ensure consistency with the accounting policies adopted by the Group.
In case that the Group loses control of a subsidiary then the following are :
Derecognized :
- The assets (including the surplus value) and liabilities of the subsidiary
- The book value of the non-controlling interest
- The accumulated exchange differences, which have been recorded in Equity
Recognized:
- The fair value of the price obtained
- The fair value of the remaining participation
- Any surplus or deficit in the Statement of Income
- The Parent Company’s share in the elements previously recognized in the comprehensive income
statement, in the income statement or the retained earnings where that is judged necessary.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
174
4.2. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
A) New standards, amendments to standards and interpretations adopted
The accounting policies on the basis of which the annual separate and consolidated financial statements were
prepared for the year ended December 31
st
, 2021 were consistent with those used in the preparation of the annual
separate and consolidated financial statements for the year ended December 31
st
, 2020 with the exception of the
following amendments and standards, which were adopted by the Group and the Parent Company on January 1
st
,
2021 and did not have a material impact on the annual separate and consolidated financial statements for the year
ended December 31
st
, 2020. In addition, at the Extraordinary General Meeting of the shareholders of the Parent
Company held on June 4, 2021, it was decided to provide additional incentive to reward the executives of PPC SA.
and PPC Renewables SA for their contribution to the achievement of the medium-term goals of the Group in the
form of 4 rolling cycles of a program of free distribution of shares (Note 7). Therefore, the Group and the Parent
Company have now included in their basic accounting principles the following:
Equity settled benefits
The Group provides to the executives of PPC S.A. and PPC Renewables S.A. remuneration in the form of share
based payments, whereby executives render their services as consideration equity instruments. The cost of equity-
settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation
model.
That cost is recognized in the Payroll Cost of the Statement of Income, together with a corresponding increase in
equity (other reserves), over the period in which the service is rendered (the vesting period). The cumulative
expense recognized for equity- settled transactions at each reporting date until the vesting date reflects the extent
to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will
ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in
cumulative expense recognized as at the beginning and end of that period.
Non- market conditions are not taken into account when determining the grant date fair value of awards, but the
likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity
instruments that will ultimately vest. In the contrary, market performance conditions are reflected within the grant
date fair value. Any other conditions attached to an award, but without an associate service requirement, are
considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead
to an immediate expensing of an award unless there are also service and/ or performance conditions.
No expense is recognized for awards that do not ultimately vest because non-market performance and/or service
conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated
as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
In each reporting date, the Group revises its estimates for the number of equity instruments that will ultimately vest.
It recognizes the effect from the revision of its initial estimates, if it exists, in the Statement of Income with a
corresponding adjustment of its equity.
Change in the accounting estimate of Expected Credit Losses for receivables of Low Voltage customers
The Group and the Parent Company apply the simplified approach provided in IFRS 9 for the calculation of expected
credit losses for trade receivables from electricity sales.
On June 30th, 2021, the assessment of the Group and of the Parent Company that the non-collection of receivables
from Low Voltage Customers for more than 180 days constitutes a credit event was re-examined.
This review was conducted due to the implementation of securitization programs for overdue receivables from the
sale of electricity to Low Voltage customers (for current receivables and overdue receivables of up to 60 days in
November 2020 and for overdue receivables of more than 90 days in June 2021), which resulted in an increase of
collections, mainly of overdue receivables, and the strengthening of the company's liquidity. Pursuant to the above
modification of the calculation of default rates, now the Group and the Parent Company calculate a probability of
default for all time zones of receivables aging from Low Voltage customers.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
175
4.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)
From the change of this accounting estimate, the estimation of expected credit losses for the total receivables from
the sale of electricity amounts on December 31, 2021 to € 2,341 bil., If the new method of calculating default rates
on Low Voltage customer receivables had not been applied, the estimation of the expected credit losses would
have been increased by the amount of € 152.1 mil., an amount which is included in the "Provisions for doubtful
receivables" in the Income Statement.
• Interest Rate Benchmark Reform – Phase 2 – IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments)
In August 2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9, IAS 39,
IFRS 7, IFRS 4 and IFRS 16, completing its work in response to IBOR reform. The amendments provide temporary
reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an
alternative nearly risk-free interest rate (RFR). In particular, the amendments provide for a practical expedient when
accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities, to
require the effective interest rate to be adjusted, equivalent to a movement in a market rate of interest. Also, the
amendments introduce reliefs from discontinuing hedge relationships including a temporary relief from having to
meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component.
There are also amendments to IFRS 7 Financial Instruments: Disclosures to enable users of financial statements
to understand the effect of interest rate benchmark reform on an entity’s financial instruments and risk management
strategy. While application is retrospective, an entity is not required to restate prior periods.
• IFRS 16 Leases-Cοvid 19 Related Rent Concessions (Amendment)
The amendment applies, retrospectively, to annual reporting periods beginning on or after 1 June 2020. Earlier
application is permitted, including in financial statements not yet authorized for issue at 28 May 2020. IASB
amended the standard to provide relief to lessees from applying IFRS 16 guidance on lease modification accounting
for rent concessions arising as a direct consequence of the covid-19 pandemic. The amendment provides a practical
expedient for the lessee to account for any change in lease payments resulting from the covid-19 related rent
concession the same way it would account for the change under IFRS 16, if the change was not a lease modification,
only if all of the following conditions are met:
- The change in lease payments results in revised consideration for the lease that is substantially the same as, or
less than, the consideration for the lease immediately preceding the change.
- Any reduction in lease payments affects only payments originally due on or before 30 June 2021.
- There is no substantive change to other terms and conditions of the lease.
• Attributing Benefit to Periods of Service (IAS 19 Employee Benefits) – IFRS Interpretation Committee (IFRS
IC or IFRIC) Agenda Decision issued May 2021
The International Financial Reporting Standards Interpretations Committee issued a final agenda decision in May
2021, under the title "Attributing Benefits to Periods of Service" (IAS 19), which includes explanatory material
regarding the attribution of benefits in periods of service regarding a specific defined benefit plan analogous to that
defined in Article 8 of Greek Law 3198/1955 regarding provision of compensation due to retirement (the "Labor Law
Defined Benefit Plan"). This explanatory information differentiates the way in which the basic principles and
regulations of IAS 19 have been applied in Greece in the previous years, and therefore, according to what is defined
in the “IASB Due Process Handbook (par 8.6)”, entities that prepare their financial statements in accordance with
IFRS are required to amend their Accounting Policy accordingly. Based on the above, the aforementioned decision
is implemented in accordance with paragraphs 19-22 of IAS 8 as a change in accounting policy.
This Directive clarifies the handling of the provisions for compensation to employees, paid to them due to retirement,
based on the provisions of Greek labor law (Law 3198/1955), which reaches its maximum point after 16 years of
service in same employer.
According to the Committee opinion, in the case of a compensation policy which provides for the payment of benefits
only at retirement age of the employees and the amount of the benefit increases with the years of service up to a
maximum limit (eg up to 16 years), the corresponding employer's obligation is allocated at the last years of service
before retirement, taking into account the maximum period beyond which the benefit is not further increased.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
176
4.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)
Based on a decision of the Board of Directors, the Parent Company provides compensation due to voluntary leave
to its employees with more than 15 years of service regardless of the establishment of a pension right. Therefore,
according to the instructions of the Technical Committee set up for the subject matter, as the compensation is not
provided only at the retirement age, the employer's obligation continues to be allocated during the first 16 working
years. Therefore there is no change in the method of calculating the staff benefit compensation provision due to
the above decision of the Interpretation Committee and it has no effect on the Parent Company. The Group's
subsidiaries follow the same compensation policy, except for HEDNO and PPC Renewables, which provide
compensation due to voluntary leave to their employees with more than 15 years of service if they have established
a pension right. The effect of the decision of the Interpretations Committee at Group level amounted to € 2.3 million
which was not considered matterial. Nevertheless, the Group has decided to proceed with a restatement (Notes 31,
44).
B) Standards and Interpretations which are mandatory for subsequent periods and have not been applied
earlier by the Company and the Group
The following new standards, amendments to standards and interpretations have been issued but are
mandatory for subsequent periods. The Company and the Group have not yet applied the following standards.
• IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting
policies (Amendments)
The Amendments are effective for annual periods beginning on or after January 1, 2023 with earlier application
permitted. The amendments provide guidance on the application of materiality judgements to accounting policy
disclosures. In particular, the amendments to IAS 1 replace the requirement to disclose ‘significant’ accounting
policies with a requirement to disclose ‘material’ accounting policies. Also, guidance and illustrative examples are
added in the Practice Statement to assist in the application of the materiality concept when making judgements
about accounting policy disclosures. The Amendments have not yet been endorsed by the EU.
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates (Amendments)
Amendments take effect for annual reference periods beginning on or after 1 January 2023 with earlier application
permitted and applicable to changes in accounting policies and changes in accounting estimates made on or after
the beginning of this period. The amendments introduce a new definition of accounting estimates, defined as
monetary amounts in financial statements that are subject to measurement uncertainty. The amendments also
clarify what changes in accounting estimates are and how they differ from changes in accounting policies and error
corrections. The Group is in the process of assessing the impact of the application of the amendments to its financial
statements.
• Amendment in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and
Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS
28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The
main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a
business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves
assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015 the
IASB postponed the effective date of this amendment indefinitely pending the outcome of its research project on
the equity method of accounting. The amendments have not yet been endorsed by the EU. The Group is in the
process of assessing the impact of the application of the amendments to its financial statements.
• IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current
(Amendments)
The amendments were initially effective for annual reporting periods beginning on or after January 1, 2022 with
earlier application permitted. However, in response to the covid-19 pandemic, the Board has deferred the effective
date by one year, i.e. 1 January 2023, to provide companies with more time to implement any classification changes
resulting from the amendments. The amendments aim to promote consistency in applying the requirements by
helping companies determine whether, in the statement of financial position, debt and other liabilities with an
uncertain settlement date should be classified as current or non-current.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
177
4.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)
The amendments affect the presentation of liabilities in the statement of financial position and do not change existing
requirements around measurement or timing of recognition of any asset, liability, income or expenses, nor the
information that entities disclose about those items. Also, the amendments clarify the classification requirements
for debt which may be settled by the company issuing own equity instruments.
In November 2021, the Board issued an exposure draft (ED), which clarifies how to treat liabilities that are subject
to covenants to be complied with, at a date subsequent to the reporting period. In particular, the Board proposes
narrow scope amendments to IAS 1 which effectively reverse the 2020 amendments requiring entities to classify
as current, liabilities subject to covenants that must only be complied with within the next twelve months after the
reporting period, if those covenants are not met at the end of the reporting period. Instead, the proposals would
require entities to present separately all non-current liabilities subject to covenants to be complied with only within
twelve months after the reporting period. Furthermore, if entities do not comply with such future covenants at the
end of the reporting period, additional disclosures will be required. The proposals will become effective for annual
reporting periods beginning on or after 1 January 2024 and will need be applied retrospectively in accordance with
IAS 8, while early adoption is permitted. The Board has also proposed to delay the effective date of the 2020
amendments accordingly, such that entities will not be required to change current practice before the proposed
amendments come into effect. These Amendments, including ED proposals, have not yet been endorsed by the
EU. The Group is in the process of assessing the impact of the application of the amendments to its financial
statements.
• IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent
Liabilities and Contingent Assets as well as Annual Improvements 2018-2020 (Amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022 with earlier application
permitted. The IASB has issued narrow-scope amendments to the IFRS Standards as follows:
• IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual
Framework for Financial Reporting without changing the accounting requirements for business
combinations.
• IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost
of property, plant and equipment amounts received from selling items produced while the company is
preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related
cost in profit or loss.
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs
a company includes in determining the cost of fulfilling a contract for the purpose of assessing whether a
contract is onerous.
• Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International
Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative
Examples accompanying IFRS 16 Leases
The amendments have not yet been endorsed by the EU. The Group is in the process of assessing the effect of
applying the amendments to its financial statements.
• IFRS 16 Leases -Cοvid 19 Related Rent Concessions beyond 30 June 2021 (Amendment)
The Amendment applies to annual reporting periods beginning on or after 1 April 2021, with earlier application
permitted, including in financial statements not yet authorized for issue at the date the amendment is issued. In
March 2021, the Board amended the conditions of the practical expedient in IFRS 16 that provides relief to lessees
from applying the IFRS 16 guidance on lease modifications to rent concessions arising as a direct consequence of
the covid-19 pandemic.
Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease
payments affects only payments originally due on or before 30 June 2022, provided the other conditions for applying
the practical expedient are met. The Group will assess the early adoption of this amendment to its financial
statements, in case that any impact on leases exist due to COVID-19.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
178
4.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)
• IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments)
The amendments are effective for annual periods beginning on or after January 1, 2023 with earlier application
permitted. In May 2021, the Board issued amendments to IAS 12, which narrow the scope of the initial recognition
exception under IAS 12 and specify how companies should account for deferred tax on transactions such as leases
and decommissioning obligations. Under the amendments, the initial recognition exception does not apply to
transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. It only
applies if the recognition of a lease asset and lease liability (or decommissioning liability and decommissioning
asset component) give rise to taxable and deductible temporary differences that are not equal. The Amendments
have not yet been endorsed by the EU. The Group is in the process of assessing the effect of applying the
amendments to its financial statements.
4.3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
The preparation of financial statements requires Management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results may
ultimately differ from those estimates. The principle judgments and estimates referring to events, the development of
which could significantly affect the items of the financial statements during the forthcoming twelve month period are as
follows:
Post-retirement benefits
a) The Parent Company provides to Group’s employees and pensioners supply of electricity at reduced tariffs. Such
reduced tariffs to pensioners are considered to be retirement obligations and are calculated at the discounted value
of the future retirement benefits deemed to have accrued at year-end based on the employees earning retirement
benefit rights steadily throughout the working period. The relevant retirement obligations are calculated on the basis
of financial and actuarial assumptions.
b) According to Law 4533/2018 (OG A’ 7527/4/2018) PPC and its subsidiaries pay an one-off allowance to the
beneficiaries of pension (who are insured employees leaving PPC) in proportion to the years of actual service to
PPC. This allowance cannot exceed the amount of €15.000 for insured employees which are retiring due to the
termination of the employment contract, or due to the fact that insured employees reached the age limit or due to
another reason for leaving, according to the provisions of the law.
The above is a defined benefit plan in accordance with the provisions of IAS 19. The present value of the liability
assumed by PPC and its subsidiaries, is calculated at the end of each year using actuarial methods and is a past
service cost for service provided in previous periods.
Details of the underlying assumptions and estimates of the above mentioned post - retirement benefits are included in
Note 31.
Fair value and useful lives of property, plant and equipment
The Group carries its property, plant and equipment (except for mining land and lakes) at revalued amounts
(estimated fair values) as determined by an independent firm of appraisers. Revaluation is performed periodically
(every three to five years). The determination of the fair values of property, plant and equipment requires from
management to make estimates, assumptions and judgements with respect to the ownership, the value in use and
the existence of any economic, functional and physical obsolescence of property, plant and equipment.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
179
4.3 SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES (CONTINUED)
The last revaluation of property, plant and equipment was conducted on December 31
st
, 2019. In addition, within
2021 the valuation of the tangible fixed assets of the Distribution Network and the tangible fixed assets of the
Lignite subsidiaries took place. The main estimates, assumptions and judgments made for the determination of
their fair value are included in Note 15. For the remaining tangible fixed assets, Management of the Group, taking
into account changes in the economic environment as well as developments within the year of the key assumptions
used in the recent revaluation of property, plant and equipment, believes that any change in the fair value of
property, plant and equipment will not have a significant impact on the accompanying separate and consolidated
financial statements as of December 31
st
, 2021.
Furthermore, the management makes estimates regarding the total and the remaining useful lives of property,
plant and equipment which are subject to periodic review. Useful lives as estimated are included in Note 4.4.
Impairment of property, plant and equipment
The Group assesses at each reporting date whether there is an indication that a long – term asset may be impaired.
The determination of whether such indications exists, requires from Management to make estimates, assumptions
and judgments with respect to external and internal factors that may affect the recoverability of assets, as well as
assumptions on the determination of the cash flow generating units (Note 15). More specifically, external factors
include the change in the institutional framework, inflation, interest rates. On the other hand, internal factors are
related to the internal decisions and the business plan of the Group and the Company. Indicatively, the key
assumptions for the impairment test are the weighted average borrowing costs and the future cash flows of the
assets under consideration.
The Group and the Parent Company as lessee
The Management, in order to measure the right-of-use assets, determines the lease term as the non-cancellable
term of the lease, together with any periods covered by a) an option to extend the lease if it is reasonably certain to
be exercised, or b) an option to terminate the lease, if it is reasonably certain not to be exercised.
In determining the lease term, Management assesses all the facts and circumstances that create economic
incentive in order to exercise the option of renewal or not exercise the option of termination.
After the commencement date of the lease, Management reassesses the lease term if there is a significant event
or change in circumstances that is within their control and affects their ability to exercise (or not to exercise) the
option to renew (for example a change in the Group’s and the Parent Company’s business strategy).
In addition, the Management in order to calculate the financial lease liability determined the incremental borrowing
rate (IBR) at the lease commencement date as the interest rate implicit in the lease contract is not readily
determinable. The IBR is the rate of interest that the Group and the Parent Company would have to pay, to borrow
over a similar term and with a similar security, the funds necessary to obtain an asset of a similar value to the right-
of-use asset.
Decommissioning and removal costs of property, plant and equipment and mines’ land restoration costs
Based on the provisions of IAS 16 “Property, plant and equipment” the cost of an item of property, plant and equipment
includes, among others, the initial estimate of the costs required for the dismantling and removal of such an item.
These costs are quantified and recognized in the financial statements in accordance with the provisions of IAS 37
“Provisions, contingent liabilities and contingent assets”, while any subsequent change in the measurement of this
provision is treated in accordance with the provisions of IFRIC 1.
The respective provision includes the land remediation cost, the cost of dismantling the existing equipment/machinery,
the cost of demolition of buildings and collection of any waste from power plants and mines. At the time of their
dismantling and removal, the actual cost and the commencement and expiration date of the relevant works may differ
from Management’s estimate.
In addition, the Group and the Parent Company, in order to calculate the provision of decommissioning, determined
the discount rate that reflects the current market estimates for the time value of money and the risks associated with
the liability.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
180
4.3 SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES (CONTINUED)
Regarding the remediation of the environment of the hydro power plants, the Group and the Parent Company estimate
that the relevant cost in present values is not significant on December 31
st
, 2021 and therefore they have not
established any provision. In the future the actual commencement date of the relevant works and the remediation cost
may differ from Management’s estimate.
Details of the underlying assumptions and estimates for the decommissioning provision are included in principal
accounting policies and in Note 32.
Provisions for risks
The Group establishes provisions associated with claims by third parties against companies of the Group and which
might lead to an outflow of resources for their settlement. The provision is established based on amounts claimed and
the possible outcome of the legal dispute.
Provisions for trade receivables
The Group and Parent Company apply the simplified approach set out in the Standard IFRS 9 for the calculation of
Expected Credit Losses, according to which the respective provision is always measured in amount equal to the
expected credit losses over the life of customer receivables. The provision for doubtful receivables is formed for high
voltage customers on an individual basis in the assessment of the expected credit loss per customer, while for the
estimation of the expected credit losses from medium and low voltage customers, credit loss provision tables are
applied with an ageing analysis of the trade receivables balances, based on the historical data of the Group and the
Parent Company for credit losses and adjusted for future factors with respect to debtors and the economic
environment. The Group and the Parent Company changed the accounting estimate of Expected Credit Losses for
receivables of Low Voltage customers. Additional details are included in Notes 4.2 and 21.
Provisions for income taxes and recognition of deferred tax receivables
Current provisions for income tax liabilities for current and prior years are calculated at the amounts expected to be
paid to the tax authorities, using the prevailing tax rates at the balance sheet date. Provision for income tax includes
current taxes reported in the respective income tax returns and potential additional taxes that may be imposed by
the tax authorities upon settlement of the unaudited tax years on the basis of the findings of prior tax audits.
Therefore, final settlement of the income taxes might differ from the income taxes that have been accounted for in
the financial statements. From the fiscal year 2011 onwards, the Parent Company and several of its subsidiaries are
audited for tax purposes by the Certified Auditors Accountants in accordance with the provisions of Income Tax
Legislation. The audit for the fiscal year 2021 is ongoing and the relative tax conformity report will be issued after the
publication of the financial statements for the year 2021. If, at the completion of the tax audit, additional tax liabilities
arise, the Management estimates that these will have no material effect on the financial statements. Deferred tax
receivables are recognized on carried forward tax losses to the extent that it is probable that future taxable profits will
occur to offset carried forward tax losses. Deferred tax receivables that are recognized, require Management to make
assessments as to the time and level of realization of future taxable profits.
Revenue recognition from consumed and non-billed energy and Contract Assets with low voltage customers
Management considers that its customers consume the benefit of electricity over the period of the sale, while the
Parent Company continues to fulfil its contractual liabilities. For this reason, revenue is recognized based on actual
quantities of electricity consumed and based on an estimation of electricity consumed (unbilled revenue).
Especially for low voltage customers at each balance sheet date, unbilled revenue is recorded to account for electricity
delivered and consumed by these customers but not yet billed. Unbilled revenue is estimated using certain
assumptions with respect to quantities of electricity consumed, network losses and average electricity sale prices. The
actual amounts that will be finally billed may differ from those provided for.
Recognition of revenue from customers’ contributions
The Group estimates that customers’ contributions refer to the initial and continuous connection to the distribution
network which is a distinct service, separate from electricity sale. The service which is promised to be delivered is
the only one to be executed by HEDNO and this transaction is considered a separate contractual obligation.
Therefore, revenue from customers’ contributions is recognized as the service transferred to the customer. As the
contract with the customer is not of a specific time duration, the revenue is recognized based on the useful life of
the distribution network property, plant and equipment (35 years).
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
181
4.3 SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES (CONTINUED)
Accounting Treatment of the spin off of a branch to a subsidiary company
Management makes significant judgments regarding the more accurate presentation of the spin-off of a brand and
contribution from the Parent Company to its fully owned subsidiary against shares, as the accounting treatment for
similar transactions between companies under common control is not explicitly provided by IFRS. Additional details
on the accounting treatment are included in note 5.
4.4. PRINCIPAL ACCOUNTING POLICIES
Foreign currency translation
The functional and reporting currency of all the Group entities is the Euro. Transactions involving other currencies
are converted into Euro using the exchange rates, which were in effect at the time of the transactions. At the balance
sheet date, assets and liabilities that are denominated in foreign currencies are adjusted to reflect the current
exchange rates at the balance sheet date. Gains or losses resulting from foreign currency adjustments are reflected
in foreign currency gains (losses), in the accompanying statements of income. Non-monetary items in foreign
currency which are valuated at acquisition cost are converted using the exchange rate of the date of acquisition.
The non-monetary items which are measured at fair value in foreign currency are converted using the exchange
rate of the fair value’s calculation date. The profit or loss from the conversion of non-monetary items is treated in
the same way as the profit or loss from the conversion of fair value of these items.
Intangible assets
Intangible assets include software and CO
2
emission allowances.
Software
Software programs are measured at their acquisition cost minus accumulated depreciation and impairments. In
case of withdrawal or sale, the cost of acquisition and depreciation are written off. Any profit or loss resulting from
the write-off is included in the Statement of Income. Software is depreciated using the straight line amortization
method over a five-year period.
Emissions Allowances (CO
2
)
The Parent Company acquires CO
2
emission allowances in order to meet its obligation arising from the actual CO
2
emissions of its electricity generation units. This liability is measured at fair value to the extent that Parent Company
has the obligation to cover its emissions through purchases (after offseting of any free CO
2
emission rights held).
Emission rights purchased and held are recognized as intangible assets, at their acquisition cost less any
accumulated impairment loss.
Property, plant and equipment
Property, plant and equipment are initially recognised at their acquisition cost which includes all direct attributable
expenses for their acquisition or construction. Subsequent to their initial recognition, property, plant and equipment
(with the exception of mines and lakes which are valued at their acquisition cost minus accumulated depreciation
and impairment) are valued at fair value minus accumulated depreciation and impairment. Fair value estimates are
performed periodically by independent appraisers (every three to five years) in order to ensure that fair value does
not differ significantly from net value of the asset. At the date of revaluation, accumulated depreciation is offset
against pre depreciation accounting values and net amounts are restated according to revalued amounts. Any
increase in value is credited to the revaluation surplus in equity net of deferred taxes. However, an increase due to
revaluation will be recognized in the Statement of Income, to the extent that it reverses a previous devaluation of
the same asset, which had previously been recognized in the Income Statement.
Any decreases, first offset remaining revaluations surplus and then the remaining amounts burden the Statement
of Income. Upon disposal of revalued property, plant and equipment, the relevant portion of the revaluation surplus
is transferred from the revaluation surplus to the retained earnings.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
182
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Repairs and maintenance are recorded in expenses in the fiscal year in which they are incurred. Subsequent
expenditure is capitalized if the criteria for recognizing them as property, plant and equipment are met. For all assets
withdrawn or sold, their acquisition cost and depreciation are written – off when sold or withdrawn. Any gain or loss
resulting from the write – off is included in the Statement of Income.
The use of the own resources for the construction in progress property, plant and equipment constitutes an addition
to their acquisition cost at values which include the direct payroll costs of the staff participated in the construction
(corresponding employers’ contributions), the cost of materials used and other general costs.
Borrowing cost
Since January 1
st
, 2009, borrowing costs that are directly related to the acquisition, construction or production of a
qualifying asset that needs a substantial period of time to become available for its intended use or sale, are
capitalised as part of the acquisition cost of that asset. This accounting policy is implemented on property, plant
and equipment, recognized from January 1
st
, 2009 onwards (new constructions). All other borrowing costs are
recognized as expenses in the period in which they are incurred.
Depreciation
Depreciation of property, plant and equipment is calculated using the straight-line method over the estimated
residual useful life of the asset. The total useful life (in years) used for calculating depreciation is as follows:
Buildings and Technical Works
Buildings of general use
50
Industrial buildings
Dams
40-50
50
Machinery and Equipment
Thermal power plants
Gas Turbines
35-40
35
Mines
20-40
Hydro power plants
50
Autonomous diesel power plants
25
Distribution
Substations
35
Low and medium voltage distribution network
35
High voltage distribution network
35
Electronic meters
20
Transportation assets
15
Furniture, fixtures and equipment
5-25
Mining activities
The Group and the Parent Company own and operate lignite mines. Land acquisition (mainly through expropriation)
and initial (pre-operational) development costs relating to mines are capitalized and amortized (upon
commencement of the mines’ commercial operation) to the shortest period between mine life and a twenty (20)
year period. Exploration, evaluation and ongoing development costs are added to the lignite production cost of the
fiscal year they incurred.
After the completion of the mines’ restoration, the restored mining land is transferred from the category "Mines" to
the category "Land", if the restored land has been expropriated in the name of the Company and not in favor of the
Greek State.
Provision for the dismantling and removal of the infrastructure and the equipment of power plants and
mines
The provision for the dismantling and removal of the infrastructure and the equipment of power plants is calculated
taking into account the specificities of each unit (type of fuel, generating capacity, co-installation of units), calculating
the present value of the land remediation cost, the cost of dismantling the existing equipment/machinery, the cost
of demolition of infrastructure and collection of any waste by using a discount rate. The cost includes the direct cost
of monitoring/managing the project of the withdrawal of units. The provision is reduced by actual costs (utilization
of provision) and increases with the finance cost. In case the actual costs exceed the estimated ones, the difference
is recorded directly in the Income Statement.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
183
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Moreover, the respective provision does not take into account any income from the sale of machinery, spare parts
and materials of the decommissioned units or from the utilization of the land, as the relevant revenue will be
recognized at the time it is considered certain.
For all units, the present value of their restoration costs, for the demolition of their infrastructure and the removal of
their equipment is first capitalized on the value of assets they concern proportionately following their remaining
useful life, while any remaining amount is then offset by any revaluation surplus existed with direct record in other
comprehensive income and if any further amount remains it is then recognized in the Statement of Income.
Any changes in the provision of decommissioning of power plants due to a change in Management’s estimate
(change of the restoration time, change of the future use of the property, plant and equipment or related cost) affect
the assets’ revaluation surplus or deficit which was previously recognized, so that:
• a decrease in the liability shall be recognized in other comprehensive income and increase the revaluation
surplus included in equity, with the difference that it will be recognized in the Statement of Income, to the extent
that it reverses a previous revaluation deficit of the assets, which had previously been recognized in the Income
Statement. In the event that a decrease in liability exceeds the book value that would have been recognized if
the assets were recorded in accordance with the cost method, the excess amount will be recognized
immediately in the income statement.
• an increase in the liability shall be recognized in the Statement of Income, with the difference that it will be
recognized directly in other comprehensive income and it will reduce the revaluation surplus included in equity
as long as there is a credit balance for the assets in the revaluation surplus.
The amortized amount of assets is depreciated throughout their useful life. Therefore, when the relevant assets
reach the end of their useful life, any subsequent change in liability is recognized in the income statement when is
incurred.
Due to the restructuring of PPC Group and the commitment undertaken by the Group and the Parent Company in
2019 to demolish infrastructure, remove equipment and fully restore then land when the industrial sites will cease
from operation, the respective cost was first estimated on December 31
st
, 2019 (Note 32).
Simultaneously, the Group and the Parent Company recognized a provision for the removal of infrastructure
/dismantling of equipment of its mines (Note 32) that includes the cost of the removal of infrastructure and the cost
of dismantling of equipment with use of a discount rate, while it does not take into account any income from the
sale of machinery, spare parts and materials. The provision is reduced by the actual costs incurred (utilization of
the provision) and is increased with the finance cost. Any change in the provision of the removal of infrastructure
/dismantling of equipment of mines follow the same accounting policies for the provision of decommissioning of
power plants as the assets that they concern are measured based on the revaluation model.
Provision of mines’ land restoration
The Group and the Parent Company own and operate lignite mines. Provision for the remediation of the mines’ land
was established to meet the Group’s liabilities for the remediation of the affected land, and was calculated on the basis
of the affected area and the average cost of restoration per metric unit.
As the mines’ lands are measured based on the cost method, any changes in the provision of the mines’ land
restoration are added or deducted from the cost of the relevant asset in the current period. The amount deducted from
the cost of the asset cannot exceed its book value.
• In the event that a decrease in liability exceeds the book value of the asset, the excess amount is recognized
immediately in the income statement.
• In the event of an increase in the cost of an asset, the Company considers whether this is an indication that the
asset’s new book value may not be fully recoverable.
Leases – IFRS 16
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
184
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
i) Right-of-use assets
The Group and the Parent Company recognize right-of-use assets at the commencement date of the lease (i.e., the
date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Unless the Group and the
Parent Company are reasonably certain to obtain ownership of the leased asset at the end of the lease term, the
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful
lives of the assets, as follows:
• Buildings: 2 to 59 years
• Other equipment: 1 to 2 years
• Transportation means: 1 to 2 years
• Vessels: 6 to 24 months
The right-of-use assets are also subject to impairment.
ii) Lease liabilities
At the commencement date of the lease, the Group and the Parent Company recognize lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include
the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for
terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments
that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that
triggers the payment occurs.
In calculating the present value of lease payments, the Group and the Parent Company use its incremental borrowing
rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification,
a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change
in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
the underlying asset. Those re-measurements are included in a separate line in the note Right of Use Assets
“modifications/ re-measurements”.
iii) Short-term leases and leases of low-value asset
The Group and the Parent Company apply the short-term lease recognition exemption to its short-term leases of (i.e.
those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase
option). The Group and the Parent Company also apply the lease of low-value assets recognition exemption to leases
that are considered to be low value (those with value less than Euro 5 thousands). Lease payments on short-term
leases and leases of low value assets are recognized as expense on a straight-line basis over the lease term.
Intermediate Lessor
The Group and the Parent Company enter into certain lease agreements with third parties and therefore act as
intermediate lessors. The Group and the Parent Company, as intermediate lessors, classify the sublease as financial
lease or operating lease as follows:
(a) if the head lease is a short-term lease that the Group or the Parent Company, as a lessee, has accounted for
applying paragraph 6 of the standard, the sublease shall be classified as an operating lease.
(b) Otherwise, the sublease shall be classified by reference to the right-of- use asset arising from the head lease,
rather than by reference to the underlying asset.
The Group and the Parent Company have evaluated all sublease contracts based on the above criteria and classified
them as operational or financial. As at 31 December 2021, all leases where the Group and the Parent Company act
as intermediate lessors were assessed and evaluated as operating.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
185
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Investments in subsidiaries
In separate financial statements, investments in subsidiaries are valued at cost less any accumulated impairment
losses. The spin-off and contribution of a subsidiary from the Parent Company to its 100% subsidiary in exchange
for shares is treated as a business combination between companies under joint control provided that both the
subsidiary and the beneficial subsidiary can be considered “business” according to IFRS 3 criteria.
In the case of such transactions, the shares received in exchange for the contribution of the branch are recognized
as an addition to the cost of the investment in the subsidiary at a value equal to the carrying amount of the net
assets contributed at the date of the transaction, when the transaction does not have a significant impact to the
future cash flows of the beneficial subsidiary, for example when it takes place for internal reorganization purposes
of the Group. In cases where the future cash flows of the beneficiary change as a result of the branch contribution,
the increase in the cost of investing in the subsidiary is recognized either at the fair value of the shares issued or at
the fair value of the branch given up.
Investments in associates
These are entities in which the Group has significant influence and which are neither a subsidiary nor a joint venture
of the Group. The Group’s investments in associates are accounted for under the equity method. Investments in
associates are carried on the balance sheet at cost plus post-acquisition changes in the Group’s share of net assets
of the associate, less possible provisions for any impairment in value. In case that the Group’s share in an
associate’s losses is equal, or exceeds its participation in the associate, the Group does not recognise the losses
exceeding its participation.
The Statement of Income reflects separately the Group’s share on the results of its associates, while amounts that
are recorded by the associates directly to their equity are recognized directly to the Group’s equity. Non – realised
profit or loss resulting from the transactions of the Group with the said associates is eliminated to the extent of the
interest in the associates. In the separate financial statements such investments are accounted for at cost less any
accumulated impairment losses.
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash generating unit’s fair value less cost to sell and its value in use and is
determined for an individual asset unless the asset does not generate cash inflows that are largely independent of
those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessment of the time value of money and the risks specific to the asset. The fair value of sale (after the
deduction of sales costs) is determined, in each case, according to the implementation of a revaluation model.
Impairment losses of continuing operations are recognized to the Statement of Income, except if the particular asset
is valued in fair values and then the impairment loss is recognised as a decrease of the already recognised surplus
value. An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. If such indication exists the recoverable
amount is estimated. A previously recognized impairment loss is reversed only if there has been a change in the
estimates used to determine the assets’ recoverable amount since the last impairment loss was recognized.
That increased amount resulting from the reversal of the impairment loss, cannot exceed the carrying amount that
would have been determined (net of depreciation), if no impairment loss had been recognized for the asset in prior
years. Such reversal is recognized in profit and loss unless the asset is carried at fair value amounts in which case
the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future
periods to allocate the asset’s revised carrying amount, less any residual value, to be divided equally to future time
spans on a systematic basis over its remaining useful life.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
186
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Fair value measurement
The Group measures financial instruments such as derivatives, and fair value through other comprehensive income
at each reporting date and non-financial assets such as property, periodically (every 3-5 years) at fair value. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
The fair value measurement of a non-financial asset takes into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines
whether transfers have occurred between Levels in the hierarchy by re-assessing categorization (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Group determines policies and procedures applied for both recurring measurements and assets held for
distribution or for sale.
Assets of substantial value, as property, plant and equipment, as well as substantial value liabilities are evaluated
by the Group and the Parent Company with the assistance of external appraisers. External appraisers involvement
needs, are annually decided by the Group. The selection criteria include market knowledge and expertise,
reputation, independence and observance of professional standards.
On each reporting date, the Group, according to its accounting policies, assesses if there is any change on the
carrying values of assets and liabilities being subject to periodic reassessment and revaluation. For the above
mentioned assessment, the management verifies considerable inputs applied to the last asset or liability evaluation,
confirming data used for the evaluation against contracts and other relevant documents. For disclosing fair values,
the Group’s assets and liabilities are categorized according to their nature, characteristics, potential risks stemming
from specific asset or liability categories, as well as fair value hierarchy described above.
Investments and financial assets
Financial assets that fall under and are governed by the provisions of IFRS 9 are classified on initial recognition as
financial assets measured at amortized cost, financial assets at fair value through other comprehensive income and
financial assets at fair value through profit or loss. The classification of financial assets at initial recognition depends
on the contractual characteristics of cash flows of the financial asset and the Group's business model for the
management of that financial asset.
With the exception of trade receivables and receivables from electricity customers that do not contain a significant
financial component, the Group initially evaluates the financial assets at their fair value plus, in case of a financial
asset that is not valued through profit or loss, transaction costs. Trade receivables that do not have a significant
financial component and also receivables from electricity customers are valued at the transaction price determined
in accordance with IFRS 15.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
187
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
In order for a financial asset to be classified and measured at amortized cost or at fair value through other
comprehensive income, the resulting cash flows should be "Solely for Payment of Principal and Interest (SPPI) "οn
the initial capital.
The Group's business model for managing financial assets refers to the way in which it manages its financial
capabilities in order to generate cash flows. Business model determines whether cash flows arise from collection
of contractual cash flows, sale of financial assets, or both.
Usual sales and purchases of financial assets are recognized on the transaction date (on which Group is committed
to purchase the financial asset). Usual purchases or sales involve purchases or sales of financial assets that require
physical receipt of items within the period and are also governed by a law or a purchase agreement.
Financial assets measured at amortized cost
Non-depreciated cost of a financial asset is defined as the amount at which the financial asset is measured at initial
recognition less the capital repayments plus or minus the cumulative depreciation using the effective interest
method of any difference between that initial amount and the amortized cost adjusted for any loss provision.
A financial asset is measured at amortized cost only if both of the following are met unless it is measured at fair
value through profit or loss on initial recognition:
i. The financial asset is held in a business model whose objective is to hold financial assets for the collection of
contractual cash flows ("HTC") and,
ii. The contractual terms of the financial asset result in specific dates in cash flows that are only capital and interest
payments on the outstanding initial capital.
Consequently, the Group classifies financial assets at amortized cost when financial assets are held in the context
of a business model with a view to being held to maturity mostly concentrating their contractual cash flows, and
these financial data lead to cash flows consisting only of capital and interest payments. Financial assets that do not
meet the above conditions are classified as financial assets at fair value through profit or loss, with the exception of
investments in equity instruments that are not held for trading and for which is selected to be measured at financial
assets fair value through other comprehensive income on initial recognition.
The Group, after initial recognition, measures financial assets of this category at amortized cost using effective
interest rate. These financial assets are subject to impairment in accordance with IFRS 9. Profit and loss are
recognized in Statement of Income when the asset is derecognized, modified or impaired.
Financial assets measured at fair value through other comprehensive income (equity instruments)
Upon initial recognition, the Group may choose to irrevocably classify its equity investments as equity instruments
which are measured at fair value through other comprehensive income when they comply with the definition of
equity as stated in “IAS 32 Financial Instruments: Presentation” and are not held for sale, but it has been chosen
for them to be retained with a long-term perspective to serve strategic choices. Classification is determined by
financial instrument.
Profit and loss from these financial assets remain in equity and are not reclassified to Statement of Income after the
recognition has ceased. Dividends are recognized as other income in the Statement of Income when payment right
has been established, unless the Group benefits from such revenue by recovering part of the cost of the financial
asset, in which case profit is recognized in Statement of Comprehensive Income. Equity instruments that are
measured at fair value through other comprehensive income are not subject to impairment.
Financial assets measured at fair value through profit or loss
A financial asset is measured at fair value through profit or loss, unless it is measured at amortized cost or at fair
value through other comprehensive income.
Any financial asset whose contractual terms do not result in specific cash flow dates that are only capital and interest
payments on the outstanding initial capital are classified by the Group at fair value through profit or loss (unless it
is an investment in an equity instrument that is classified at fair value through other comprehensive income).
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
188
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Since the option to determine a financial asset at fair value at its initial recognition is irrevocable, if a financial asset
is designated as at fair value through profit or loss on initial recognition, the Group does not reclassify it as measured
at amortized cost or fair value through other comprehensive income in case the business model changes.
Financial assets measured at fair value through profit or loss are transferred to the statement of financial position
at their fair value, and changes in fair value between reporting dates are recorded in the Statement of Income.
Financial assets measured at fair value through profit or loss are not subject to impairment.
Impairment of Financial Assets
Group assesses at each reporting date whether the value of a financial asset or group of financial assets has been
impaired in accordance with provisions of IFRS 9.
4
The Group has adopted the expected credit losses model for each of the abovementioned asset categories.
▪ Trade Receivables from the sale of electricity to customers
▪ Trade Receivables from intercompany transactions
▪ Other financial assets measured at amortized cost.
▪ Contract assets
De-recognition of financial assets
Financial receivables (or, where applicable a part of a financial receivable or part of a group of similar financial
receivables) are derecognized when: (1) the rights to receive cash flows from the asset have expired, (2) The Group
retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without
material delay to a third party under a “pass-through” arrangement and (3) The Group has transferred the right to
receive cash from that asset while either: (a) has transferred substantially all the risks and rewards of the assets,
or (b) has not transferred substantially all the risks and rewards but has transferred control of that asset. Where the
Group has transferred the rights to receive cash inflows from that asset but has not transferred substantially all the
risks and rewards or control of that asset, then the asset is recognized to the extent of the Group’s continuing
involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the initial carrying amount of the asset and the maximum amount of consideration that the
Group could be required to pay. Where continuing involvement takes the form of a written and/or purchase option
(including a cash-settled option) on the transferred asset, the extent of the Group’s continuing involvement is the
amount of the transferred asset that the Group may repurchase, except in the case of a written put option on an
asset measured at fair value, where the extent of the Parent Company’s/Group’s continuing involvement is limited
to the lower of the fair value of the transferred asset and the option exercise price.
In the event that the evaluation refers to securitization transactions, the Company applying the aforementioned
derecognition criteria, takes into account the structure of the transaction including its exposure to the subordinated
bonds issued, allowances to the special purpose vehicles, as well as the terms and conditions of the securitization
agreements, under which the Company could retain control over the securitized receivables.
Trade Receivables from the sale of electricity to customers
The Group and the Parent Company apply the simplified approach of IFRS 9 for the calculation of expected credit
losses, according to which the provision for impairment is always measured at the amount of the expected credit
losses over the lifetime of trade receivables.
More specifically:
(i) Regarding the receivables of High Voltage (HV) customers from the sale of energy, the Group and the Parent
Company (due to the individual characteristics of each client and its credit behavior) evaluate the expected credit
loss from each customer individually.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
189
.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
(ii) Regarding the receivables from Medium Voltage (MV) and Low Voltage (LV) customers from the sale of energy,
the Group and the Parent Company, considering these contracts as sharing similar characteristics, classified them
into two distinct portfolios (Medium and Low Voltage). The Group and the Parent Company In order to estimate the
expected credit losses, use credit loss provision tables based on the maturity of their balances, following the
historical data of the Group and the Parent Company for credit losses and adjusting appropriately for future events
and the economic environment.
In addition, the Group and the Parent Company consider that the non-collection of receivables constitutes a credit
event as follows:
• For Low Voltage customers for more than 180 days
• For Medium and High Voltage customers for more than 90 days
• For state-owned entities and wider public sector companies for more than 365 days
On June 30, 2021, the Group and the Parent Company re-examined the assessment of the non-collection of
receivables from Low Voltage customers for more than 180 days constitutes a credit event.
This review was conducted due to the implementation of securitization programs for overdue receivables from the
sale of electricity to Low Voltage customers (for current receivables and overdue receivables of up to 60 days in
November 2020 and for overdue receivables of more than 90 days in June 2021), which resulted in an increase of
collections, mainly of overdue receivables, and the strengthening of the company's liquidity. Pursuant to the above
modification of the calculation of default rates, now the Group and the Parent Company calculate a probability of
default for all time zones of receivables aging from Low Voltage customers.
Customers’ contributions
Consumers or producers connected to the distribution network are required to participate in the initial cost of
connecting to the network (meters, lines, substations, etc.) or other types of infrastructure by paying institutionally
fixed amounts of money or by contributing property, plant and equipment (extremely rare cases). It is noted, that
according to law, all the facilities that are constructed are under the exclusive ownership and possession of the
Parent Company (until November 30, 2021 date on which those fixed assets were contributed from the Parent
Company to HEDNO, please see note 5), while in the event that a customer leaves a facility and a new customer
enters, then the new customer is not obliged to pay for a new contribution.
Customer’s contributions refer to the initial and continuous connection to the distribution network which is a separate
service from the sale of electricity. The promised service is the only one undertaken by HEDNO and this transaction
is considered a separate contractual obligation. Therefore, revenue from customers’ contributions is recognized
during the transfer of the service to the customer. As the contract with the customer is not of a specific duration,
income is recognized on the basis of the remaining useful life of distribution network’s property, plant and equipment
(35 years). Customers’ contributions are classified as "Long – term contract liabilities".
Payments in advance against electricity consumption paid by customers at the time of signing the
electricity supply contract.
By signing the electricity supply contract, the customer is required to pay an advance - a guarantee against future
electricity consumption. This amount is not refunded to the customer but is offset by the amount of the last clearing
bill following the request for suspension of electricity supply to the customer. Considering that these amounts are
settled in a period over 12 months, the Group and Parent Company classified them as "Long – term Contract
Liabilities".
An advance payment of 3% or 5% on the value of the electricity provided through NOME-type auctions,
which are paid by the participants in the NOME-type auctions to the Parent Company.
During the NOME-type auctions for forward products, which are conducted every three months and concern the
Parent Company's forward sale of electricity on the wholesale market for a period of 12 months, the electricity
suppliers pay in advance 3% or 5% of the value of electricity, awarded to them. These prepayments are classified
as "Short – term contract liabilities" as they are settled in less than 12 months. Revenue is recognized on an equal
basis per month according to the quantities delivered to alternative electricity suppliers.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
190
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Prepayments paid by customers against future consumption of electricity
The Parent Company gives the opportunity to Medium & Low Voltage customers (for High Voltage customers this
possibility is included in their contract) to pre-pay the annual electricity consumption against a discount on the price
of electricity. The received amounts are classified as "Short – term Contract Liabilities " as they are settled within
12 months, whereas revenue recognition is based on the pricing of the consumed or estimated Electricity.
Other financial assets measured at amortized cost
For the other financial assets of the Group and the Parent Company, measured at amortized cost, the general
approach is used. These financial assets are considered as having low credit risk and any provision for loss is
limited to the expected credit losses of the next 12 months from the respective reporting date.
Inventories
Inventories include materials and consumables, spare parts, lignite and liquid fuel. Provision for slow moving or
obsolete materials and consumables is established if necessary.
• Materials and consumables
Materials and consumables are stated at the lower of cost or net realizable value, which takes under
consideration the net realizable value of the finished product in which they are incorporated. The cost is
determined using the weighted average method. These materials are recorded in inventory when purchased
and then are expensed or capitalized upon use.
• Lignite (self-produced and purchased)
The cost of lignite inventories which have been excavated / purchased but not yet consumed at the balance
sheet date is stated at the balance sheet. Lignite inventories are stated at the lower of production cost / purchase
cost and net realizable value, which takes under consideration the net realizable value of the finished product
in which they are incorporated with the cost being determined by using the weighted average production /
purchase cost method. Production / purchase cost mainly consists of expenses incurred in order for lignite
inventories to be used for electricity generation.
• Liquid fuel
Liquid fuel is stated at the lower of cost and net realisable value which takes under consideration the net
realisable value of the finished product in which it is incorporated. The cost of liquid fuel reflects purchase price
plus any taxes (excluding VAT), levies and any other type of expense for the fuel to be stored in the Group
warehouses and determined using the weighted average method. Liquid fuels are expensed on consumption
and appear separately in the Statement of Income.
Cash and cash equivalents
The Group considers time deposits and other highly liquid investments with original maturity of three months or
less, to be cash equivalents.
Share capital
Share capital reflects the value of the Parent Company’s shares that are fully issued and in circulation. Any proceeds
in excess of par value are recorded in share premium in equity. Expenses related directly to new shares issuance
are recognized directly to Equity net of proceeds.
Equity settled benefits
The Group provides to the executives of PPC S.A. and PPC Renewables S.A. remuneration in the form of share
based payments, whereby executives render their services as consideration equity instruments. The cost of equity-
settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation
model.
That cost is recognized in the Payroll Cost of the Statement of Income, together with a corresponding increase in
equity (other reserves), over the period in which the service is rendered (the vesting period). The cumulative
expense recognized for equity- settled transactions at each reporting date until the vesting date reflects the extent
to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will
ultimately vest.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
191
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
The expense or credit in the statement of profit or loss for a period represents the movement in cumulative expense
recognized as at the beginning and end of that period.
Non- market conditions are not taken into account when determining the grant date fair value of awards, but the
likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity
instruments that will ultimately vest. In the contrary, market performance conditions are reflected within the grant
date fair value. Any other conditions attached to an award, but without an associate service requirement, are
considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead
to an immediate expensing of an award unless there are also service and/ or performance conditions.
No expense is recognized for awards that do not ultimately vest because non-market performance and/or service
conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated
as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
In each reporting date, the Group revises its estimates for the number of equity instruments that will ultimately vest.
It recognizes the effect from the revision of its initial estimates, if it exists, in the Statement of Income with a
corresponding adjustment of its equity.
De-recognition of financial liabilities
Financial liabilities are derecognized when the obligation under the liability is discontinued, cancelled or expires. In
the event that an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
a de-recognition of the original liability and the recognition of a new liability, and the difference in the respective
carrying amounts is recognized in the income statement.
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and the net amount is presented in the balance sheet only when the Group
has the legally enforceable right to set off the recognized amounts and intends to either settle such asset and liability
on a net basis or claim the asset and settle the liability at the same time.
Interest bearing loans and borrowings
All loans and borrowings are initially recognized at cost, which reflects the fair value of the amount received less
the cost of borrowing. After initial recognition, they are subsequently measured at amortized cost using the effective
interest rate method. For the calculation of amortized cost, all types of borrowing and issue costs are taken into
account.
Provisions for Risks and Expenses, Contingent Liabilities and Contingent Claims
Provisions are recognised when the Group has present legal, contractual or constructive obligations as a result of
past events and it is probable that they will be cleared through outflows of resources and the estimate of the exact
amount of the liability can be reliably made. Provisions are reviewed at each balance sheet date and adjusted to
reflect the present value of the expense expected to be required to settle the liability. Contingent liabilities are not
recognised in the financial statements but are disclosed unless the possibility of an outflow of resources embodying
economic benefits is minimal.
Contingent claims are not recognised in the financial statements but are disclosed when the inflow of economic
benefits is probable.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
192
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Post-retirement benefits
a) The Parent Company provides to employees and pensioners of the Group electricity at a reduced tariff. The
reduced invoice to pensioners is recognized as a liability and is calculated as the present value of future retirement
benefits deemed accrued by the end of the year on the basis of the rights of employees accumulated during their
service and are calculated on the basis of economic and actuarial models on the basis of economic and actuarial
assumptions.
b) PPC and its subsidiaries pay, in accordance with Law 4533/2018 (OG A’ 7527/4/2018), a severance payment,
which may not exceed € 15 (fifteen thousand Euro) to insured persons who leave due to termination of the employment
contract, or because the insured employees reached the age limit or due to another reason for leaving according to
the provisions of the law.
Net expense for the period is included in payroll cost in the Statement of Income and consists of the present value
of the benefits earned in the year. The post-retirement benefit liability is not funded. Actuarial gains or losses are
directly recognized in other comprehensive income.
Subsidies for property, plant and equipment
The Group receives grants from the Greek State and the European Union (through the public investment program
of the Greek State) in order to finance specific projects that are executed within certain time periods. Subsidies are
accounted for when they are collected and are shown in the balance sheet as deferred income. Amortization is
recognized based on the remaining useful life of the related assets and is included in depreciation in the Statement
of Income.
Derivative financial instruments and hedging
1.1 Derivative financial instruments
Derivative financial instruments are as Financial Receivables or Financial Liabilities and are valued at their fair value
both at the date of the contract and subsequently regardless of the purpose of the transaction. Gains or losses arising
on the valuation of derivative financial instruments are recognized in the income statement in "(Gains) / Financial
derivative losses", other than those designated as hedges and other than those held for non-compliance purposes.
energy in the derivative futures market) as follows, which are recognized in the Income Statement in the "Electricity
Markets" together with changes in the fair value of any derivative financial instruments that hedge the specific items.
Derivative financial instruments are recognised as assets or liabilities and measured at fair value, both at the date
of the contract and subsequently regardless of the purpose of the transaction. Gains or losses arising on the valuation
of derivative financial instruments are recognized in the income statement in "Other (income)/expenxe, net", other than
those designated as hedges and other than those held for compliance purposes (energy short positions in the
derivative energy market) as follows, which are recognized in the Income Statement in "Energy Purchases" together
with changes in the fair value of any derivative financial instruments that hedge the specific items.
As at 31 December 2021, the Group and the Parent Company had entered into derivative financial contracts for: a)
cash flow hedging from fluctuations in electricity prices and fuel prices b) conducting for-trading purposes transactions
in the context of Parent Company’s business activity as a Special Trader (Market Maker) in the Derivatives Market
of the Hellenic Stock Exchange c) compliance with the antitrust rules of the European Union due to PPC's exclusive
access to lignite power generation (Note 13). The fair value of derivatives is obtained from stock market prices, if
available, or based on valuation techniques.
1.2 Hedge Accounting
The Group and the Parent Company apply hedge accounting if the following criteria are met:
- the hedging relationship includes only eligible hedging instruments and eligible hedged items
- at the commencement of the hedging relationship there is a formal identification and documentation of the hedging
relationship and the objective of the entity's risk management and its hedging strategy
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
193
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
-the hedging ratio meets all of the following effectiveness requirements:
(i) there is an economic relationship between the hedged item and the hedging instrument
(ii) the effect of credit risk does not outweigh the changes in value resulting from that economic relationship; and
(iii) the hedging ratio of the hedging relationship is the same as the amount of the hedged item actually offset by the
entity and the amount of the hedging instrument that the entity actually uses to offset that amount of the hedged item.
For the purpose of hedge accounting, hedges are classified either as fair value hedges when hedging the exposure
to changes in the fair value of a recognised asset or liability or as cash flow hedges when hedging the exposure to
variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability.
Fair value hedging
In fair value hedging transactions that meet the criteria for hedge accounting, gains or losses arising from the valuation
of the hedging instrument at its fair value are recorded in the income statement. The gain or loss on valuation arising
from the hedged item adjusts the carrying amount of the hedged item and is recognized in profit or loss.
Cash flow hedges
The Group and the Parent Company use derivative financial instruments (futures contracts and swaps) in order to
hedge the risks arising from fluctuations in electricity and gas prices. To hedge the fluctuations of cash flows related
to future transactions (purchases / sales of electricity and gas) and have been recognized as hedged items, the
Management of the Group and the Parent Company evaluates and documents that they represent highly probable
transactions and reflect the net exposure of the Group and the Parent Company in changes in their cash flows and
affect their results during the period in which they will take place.
Gains or losses relating to the effective part of the hedging arising from changes in the fair value of the derivative
financial instrument are recognized in Equity in a reserve, while the ineffective part of the hedging is recorded directly
in the Income Statement as either profit or loss from Financial commodities derivatives. The (gains) / losses from
hedging operations are transferred from the reserve to the Income Statement on "Electricity Purchases" and "Natural
Gas" during the period when the hedged item affects the profits or losses of the Group and the Parent Company.
In cases of hedging of probable future transactions, which result in the recognition of a non-monetary item (eg, stock)
or liability, gains or losses recognized in Equity are transferred to the acquisition cost of the resulting non-financial
asset.
The total fair value of a derivative instrument designated as a hedging instrument is classified as non-current asset or
long-term liability if the remaining period of the maturity of the hedged item is longer than 12 months and as current
assets or current liabilities if the remaining period of the maturity of the hedged item is less than 12 months.
Effectiveness test
The Group and the Parent Company evaluate at the inception of the transaction, on a continuous basis and definitely
during the preparation of the interim and annual financial statements, whether the hedging instruments are effective in
order to hedge the changes in the cash flows of the hedged items.
Management of the Group and the Parent Company evaluates the effectiveness of the hedge accounting based on
the existence of a financial correlation between the hedged item and the hedging instrument, the effect of credit risk
on price changes and the hedging ratio as well as through quantitative and qualitative criteria depending on the
characteristics of the hedging instrument and the hedged item.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
194
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Hedge accounting discontinuation
The Group and the Parent Company terminate the hedge accounting only when the hedging relationship ceases to
meet the application criteria, taking into account any balancing actions (change in the amount of the hedged instrument
or change in the amount of the hedged item).
When a hedging instrument expires or is sold, or when a hedging relationship no longer meets the accounting hedging
criteria, accumulated gains or losses remain as a reserve and are carried in the Income Statement at the time the
hedged item affects gain or losses.
In the event of hedging a possible future transaction that is no longer expected to occur, the gains or losses
accumulated in Equity are transferred directly to the Income Statement.
Income taxes (current and deferred)
Current Income Taxes
Current income tax expense consists of income taxes for the current year based on the Parent Company’s profits and
the profits of the other companies of the Group as adjusted in their tax returns and, provisions for additional income
taxes and increments arising from unaudited tax years, and is calculated by using the enacted or substantively enacted
tax rates at the balance sheet date.
Deferred Income Taxes
Deferred income tax is calculated, using the liability method, on all temporary differences at the balance sheet date
between the tax base and the book value of assets and liabilities. Deferred income tax liabilities are recognized for all
taxable temporary differences, except where the deferred income tax liability arises from initial recognition of goodwill
or of an asset or of a liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss. Deferred tax assets are recognized for all deductible
temporary differences carried forward as well as unused tax credits and unused tax losses, to the extent that it is
possible that taxable profit will be available against the deductible temporary differences and the carried forward of
unused tax credits and unused tax losses can be utilized. No deferred income tax asset relating to the deductible
temporary differences is recognized when it arises from the initial recognition of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.
Deferred tax assets are reassessed at each balance sheet date and are reduced at the time where it is not considered
possible that enough taxable profits will appear against which, a part or the total of assets can be utilized. Deferred
income tax assets and liabilities are measured at the tax rates that are expected to be in force in the year when the
asset is recovered or the liability is settled, based on tax rates (and tax laws) that are in force or substantively enacted
at the balance sheet date.
Income tax relating to items recognized directly in other comprehensive income is recorded in other comprehensive
income and not in the Statement of Income.
Defined contribution plans
The Parent Company and the Group recognize as an expense the contribution for the employees’ services payable
to EFKA (Greek Single Social Security Institution) (ex IKA –ETAM /TAP DEH, ETEA, TAYTEKO) (defined
contribution plans) and as a liability the amount that has not been paid yet.
Revenue recognition
Revenue from the sale of electricity to customers
The Group and the Parent Company are active in the supply of electricity to high, medium and low voltage
customers through the Operations electricity Supply Sector and in the provision of electricity distribution services.
Given the particular characteristics of electricity, the Group and the Parent Company consider that when their
customers buy electricity simultaneously receive and use the benefits on an ongoing basis resulting from the sale
of electricity as the Parent Company fulfills its contractual obligations.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
195
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
For this reason, revenue recognition (as long as the collection of the total amounts is considered probable) is based
on metering data or on estimation of electricity consumed.
The Group and the Parent Company also assess whether they have the role of principal or agent in any relevant
agreement. The Group's and the Parent Company's assessment is that they have the role of principal in all of its
sales transactions, excluding transaction that involve municipality taxes and taxes that are acting as agents.
If the price agreed under the contract also includes a variable portion, this amount is recognized as revenue to the
extent that it is unlikely to be reversed in the future.
Contract Assets
At each reporting date and taking into account that the invoicing based on the measurement data of the last month
of the period is issued during the first days of the following month, as far as High and Medium Voltage customers
are concerned, the total value of electricity provided that month is recognized as accrued revenue for the period,
and is reversed in the following month, after billing has already been recorded in books. These accruals at the end
of each reporting period are classified as “Contract Assets”.
Additionally, at each reporting date, the Parent Company estimates the value of the energy consumed but not yet
billed from Low Voltage customers, since it has developed an estimation method especially for doing so. The
estimated values are recorded as income receivable for periods ending on the reporting date and are reversed
during the following month. Those accruals are also classified as "Contract Assets” at the end of each reporting
period.
Contract Liabilities
If the customer pays a fee, or the Group reserves an unconditional right to a sum of money, before the Group
transfers the goods or services to the customer, it classified the contract as a contract liability to the customer, either
when the payment is made or when it becomes chargeable (whichever comes first).
For the Group and the Parent Company, contract liabilities come mainly from:
• Customers’ contibutions
• Payments in advance against electricity consumption paid by customers at the time of signing the
electricity supply contract.
• An advance payment of 3% or 5% on the value of the electricity provided through NOME-type auctions,
which are paid by the participants in the NOME-type auctions to the Parent Company.
• Prepayments paid by customers against future consumption of electricity.
Revenue from NOME quantities
Revenue from forward products (NOME) is recognized at the time of delivery of those forward products’ quantities.
The difference from the quantities of electricity delivered by the Company for fulfilling its liability in forward products
(NOME) is recognized at the time of delivery and not before that (for the total time of each auction), because this
difference cannot be measured reliably before delivery time.
The Parent Company considers the "NOME mechanism" as an onerous contract, in accordance with IAS 37, but
as the unavoidable costs of fulfilling its commitments by this mechanism cannot be determined reliably, no relevant
provision has been recognized on the financial statements.
Interest income
Interest income is recognized on an accrual basis.
Dividend income
Dividend income is recognized when it has been approved by the relevant authority of the company that distributes
it.
Income from rentals
Leases, where the Group does not transfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases and the rentals are recognized as revenue in the statement of income on a straight line
basis over the lease term.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
196
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Electricity
Electricity costs are expensed as purchased and presented separately in the Statement of Income.
Earnings/ (Losses) per share
The basic and diluted earnings per share are calculated by dividing net profit with the weighted average number of
shares issued during the relevant year. The weighted average number of shares is derived by adding the existing
shares, in which the share capital is divided, with the rights that the Parent Company owns and potentially could
exercise.
Subsequent events
Subsequent events that provide additional information about events or circumstances that existed at the balance
sheet date and meet their recognition criteria, are reflected in the financial statements. Otherwise, they are disclosed
in the notes of the financial statements.
Non-current Assets Held for Sale and Discontinued Operations
The Group classifies a non-current asset (or a group of assets and liabilities) as held for sale, if its carrying amount
will be recovered principally through a sale transaction and not through its use. In sale transactions, all exchanges
of non – current assets for other non – current assets are included, if the transaction has a commercial substance.
The basic requirements for a non-current asset (or a group of assets and liabilities) to be classified as held for sale
are that the asset or the group must be available for immediate sale in its present condition while the completion of
the sale must depend only on conditions that are usual and customary for sales of such assets / groups and its sale
must be highly probable and within the next 12 month from their classification.
Immediately, before the original classification of an asset or the group of assets and liabilities as held for sale , the
asset or the group of assets and liabilities are evaluated according to the adopted IFRS’s at the date of classification.
Non - current assets (or a group of assets and liabilities) classified as held for sale are measured ( after the initial
classification as above) at the lower of its carrying amount and fair value less the expenses to sell and any possible
resulting impairment losses will be recognized in the Statement of Income. Any subsequent increase in fair value
will be recognized in the Statement of Income, but not in excess of the cumulative impairment loss which was
previously recognized.
No depreciation or amortization is recognized on a non-current asset (or non-current assets that are included in a
group of assets and liabilities) from the date that is classified as held for sale.
When the Group and the Parent Company have classified a non-current asset (or a group of assets and liabilities)
as held for sale, while the classification criteria are no longer met, the Group and the Parent Company will cease to
classify the non-current asset (or a group of assets and liabilities) as Held for sale. The Group and the Parent
Company will measure the non-current asset (or a group of assets and liabilities) that cease to be classified a held
for sale at the lower of: a) its carrying amount before the asset (or disposal group) was classified as held for sale or
for distribution, adjusted for any depreciation, amortization or revaluations that would have been recognized had
the asset (or disposal group) not been so classified; and b) its recoverable amount at the date of the subsequent
decision not to sell.
The Group and the Parent Company will include any required adjustment of the carrying amount of a non-current
asset that ceases to be classified as held for sale to the income statement in the income from continuing operations
from the point of time when the classification criteria cease to be met.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
197
4.4 PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
Operating Segment
According to L. 4001/2011 the Group, as a vertically integrated undertaking, is obliged to prepare and integrate in
its financial statements, accounting unbundled financial statements for each segment. These include the Parent
Company’s activities in the Sectors of Mines, Generation, Distribution and Energy Supply and gas Supply and are
compatible with the information provided to the Executive Committee, which consists of the Chairman of the Board
of Directors and CEO, the Deputy CEOs and the General Managers.
The Executive Committee monitors internal financial reports to evaluate the performance of the Company and the
Group and to make decisions on the allocation of the Group's resources and on Group’s strategic movements.
As a result, information disclosures by operational segment as well as the principles of segment as presented in
IFRS 8 “Operating Segment” are stated in Appendix I. The Group’s activities, which do not meet the criteria and
quantitative limits of IFRS 8 to be a distinct operating segment, are combined and presented under the description
"Other Group Companies".
5. DISCONTINUED OPERATIONS (Distribution Network)
On December 15
th
2020, PPC ’s Board of Directors decided the approval and publication of Invitation to submit an
Expression of Interest (EoI) for the sale of a minority stake of PPC’s participation in HEDNO, and thus proceeded
to an Invitation announcement in its website, according to which investors should express their interest until January
29
th
, 2021, which date was extended to February 19
th
, 2021.
On September 3, 2021, after the completion of the tender process for the sale of 49% of the share capital of HEDNO
SA, 4 binding offers were submitted. The inspection of the technical files of the submitted bids by the competent
services of PPC SA was completed on September 10, 2021. Spear WTE Investments Sarl, a member of Macquarie
Infrastructure and Real Assets Group ("MIRA"), was the investor that submitted the highest bid, with an offer of €
1,312 million for the acquisition of 49% of the share capital of HEDNO SA.
On October 19, 2021, the Extraordinary General Meeting of PPC’s Shareholders approved the sale of 49% of its
participation in HEDNO to Macquarie Asset Management and on October 20, 2021 reached on an agreement with
it.
On November 30, 2021 ("spin-off date") the decision (2538559AP 30/11/2021) of the General Secretariat of
Commerce & Consumer Protection was registered in the General Commercial Register (G.C.R.) which approved
the spin-off of the Distribution Network branch of PPC and its contribution to the 100% subsidiary of HEDNO SA in
exchange of shares based on the provisions of Law 1297/1972 on Provisions of tax incentive for business on merge
and alteration, to corporate Law 4548/2018 of société anonymes and to Law 4601/2019 on Corporate Restructure.
Specific matters for this Hive Down are regulated by article 129 (Corporate transformation of PPC SA - Addition of
article 123A and amendment of articles 122 and 124 of law 4001/2011) of Law 4819/2021 (GO A ' 129 / 23-07-
2021).
This spin-off was a prerequisite to complete the sale of 49% of HEDNO's share capital. An additional requirement
for the completion of the sale transaction was the approval of the new terms of the existing loan agreements
contributed to HEDNO, which was achieved until February 28, 2022, the date when the sale of 49% of PPC's
shareholding in HEDNO was completed to Macquarie Asset Management.
Specifically, on the above date PPC received € 1,320 million for the acquisition of the aforementioned percentage
by Macquarie Asset Management through MSCIF DYNAMI BIDCO Soleshareholder SA. The offer price has been
adjusted to reflect the estimated change in the Net Asset Value of HEDNO until 28.2.2022, in accordance with the
terms of the Share Purchase Agreement and will become final in the future and especially after the completion of
the review of the actual Net Asset Value of HEDNO with a reference date 28.02.2022.
The transfer to Macquarie Asset Management of 49% of PPC's shareholding in HEDNO with minority shareholder
rights does not affect PPC's control over its subsidiary under IFRS 10. The effect of the sale of 49% of PPC's
participation in HEDNO will be recognized in the financial statements of the Group and the Parent Company on
February 28, 2022, the date when the conditions for the sale of the participation are met.
For the accounting periods after the date of completion of the sale, the consolidated Income Statement will present
49% of the profits after taxes of HEDNO attributable to non-controlling interests. Respectively, it will present in the
consolidated Statement of Financial Position 49% of the net assets of HEDNO attributed to the non-controlling
interests.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
198
5. DISCONTINUED OPERATIONS (Distribution Network) (CONTINUED)
Distribution network branch means all the activities of the autonomous operation of the Hellenic Electricity
Distribution Network (HEDN) of PPC, which include the ownership of HEDN, including of the real estate and other
assets of the Distribution Network and the Network of the Interconnected Islands, of the related liabilities and other
liabilities, with the exception of the High Voltage Network of Crete.
On December 31, 2020, the Management of the Group and the Parent Company had classified the value of the
contributed assets and liabilities of the Distribution Network as Assets Held for Sale (Discontinued Operations) only
in its separate financial statements, as on Group level the value of the distributed net Assets and the net assets of
the 100% subsidiary HEDNO, is expected to be recovered through their continuing use by the Group rather than
through the sale transaction proceeds of the 49% on HEDNO’s shareholding.
The date of the spin-off for the distribution network branch was set on March 31, 2021, the date on which the
valuation of the Net Assets of the distribution network was carried out. The merger is considered to be completed
on the date on which the relevant approval decision was made public in G.C.R. As mentioned in the draft Demerger
Deed with absorption, all deeds and transactions carried out from the reference date 31/03/2021 until the date of
spin-off 30/11/2021 benefit and are borne exclusively PPC. Therefore, the results of the interim period of the
distribution network branch are included in the Income Statement as "Discontinued Operation" as of December 31,
2021 and concern the period from January 1, 2021 until November 30, 2021.
Until November 30, 2021 for the contributed property, plant and equipment and the contributed subsidies not
depreciation was charged in the separate financial statements of PPC in accordance with the provisions of IFRS 5.
If the Parent Company had accounted for depreciation and amortization, those would amount to Euro 242,445,269
for property, plant and equipment and to euro (1,867,623) for the subsidies.
In addition, the valuation carried out on 31.03.2021 of the property, plant and equipment of the distribution network
branch at fair value, was recognized in the financial statements of the PPC Group on 30.11.2021 (Note 15), while
it was recognized in the subsidiary HEDNO upon the completion of the spin-off. At Parent Company level, paragraph
15 of IFRS 5 was applicable and as the carrying amount of property, plant and equipment was lower than their
recoverable amount, no adjustment was made.
On November 30, 2021, the share capital of HEDNO as a result of the spin-off and contribution of the above branch
increased by the amount of euros 953,662,960 as determined from the June 29, 2021 Valuation Report of the
Assets and Liabilities of the Distribution Network dated 31, March 2021.
The spin-off and contribution of the branch was treated in the financial statements of the Parent Company as a
transaction between companies under common control with a commercial substance (note 4.4). The shares
received were recognized as an addition to the cost of the investment in the subsidiary on 30 November 2021 at a
value equal to the fair value of the net assets contributed to HEDNO which amounted to € 1,016,218,899 (Note 17),
while the carrying value of the assets and liabilities transferred to the subsidiary on the spin-off date November 30,
2021 were as follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
199
5. DISCONTINUED OPERATIONS (Distribution Network) (CONTINUED)
Assets
30.11.2021
Non- Current Assets
Property, plant and equipment, net
4,726,965
Intangible assets, net
-
4,726,965
Current Assets
Trade Receivables
Other Receivables
52,853
31,417
84,270
Total Assets
4,811,236
Non – Current Liabilities :
Long - term borrowings
1,269,712
Deferred tax liabilities
424,958
Contract liabilities
1,894,425
Subsidies of Property, plant and equipment
36,741
3,625,836
Current Liabilities :
Trade and other payables
Accrued and other current liabilities
69,574
5,317
Current portion of long - term borrowings
146,591
Current Liabilities :
221,482
Total Liabilities
3,847,318
Net Assets
963,918
On November 30, 2021, the Parent Company recognized in the Income Statement "income from the spin-off of the
distribution network" amounting to € 52.3 million and resulted as follows:
Balances at 30.11.2021
Amount in €:
Fair value of net assets contributed
1,016,218,899
Minus: carrying value of transfered assets
(963,917,808)
income from the spin-off of the Distribution Network
52,301,091
The fair value of the distribution network branch differs from its carrying value, as it has taken into account the
valuation at fair value of property, plant and equipment on the reference date net of depreciation, the subsidies of
property, plant and equipment net of depreciation and the effect of these differences on deferred tax.
Cash flow of Assets Held for Sale is presented in the following table:
01.01.2021-
30.11.2021
Profit before tax from discontinued operations
290,038
Working capital Adjustments
(18,822)
Cash flow from from operational activities
271,217
Cash flow from investing acitivities
(15,599)
Cash flow from financing activities
(154,630)
Total
100,987
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
200
6. REVENUES
The revenues for the year 2021 and 2020 are analyzed in the following tables:
Group
Company
01.01.2021 -
31.12.2021
01.01.2020 -
31.12.2020
01.01.2021 -
31.12.2021
01.01.2020 -
31.12.2020
Revenues to Consumers:
- High voltage
452,353
361,826
441,649
338,257
- Medium voltage
608,523
472,857
611,327
475,204
- Low voltage
3,934,021
3,096,762
3,934,132
3,096,901
- Renewable Energy Sources
-Revenues from natural gas sales
20,771
1,161
15,882
472
-
1,161
-
472
5,016,829
3,947,799
4,988,269
3,910,834
Other Revenues:
- Customers’ contributions
91,852
88,520
248
248
- Public Service Obligations
(21,060)
150,661
(21,060)
150,860
- Distribution Network Revenues
277,745
215,578
-
-
- Income from electricity sales from NII
thermal units
283,859
192,760
283,859
192,760
- Other
57,166
54,126
57,123
45,481
689,562
701,645
320,170
389,349
Total Continuing Operations
5,706,391
4,649,444
5,308,439
4,300,183
Discontinued Operations
-
-
91,036
95,646
Total
5,706,391
4,649,444
5,399,475
4,395,829
The analysis of Group’s revenues by geographical region for the years 2021 and 2020 is presented in the following
tables:
2021
Greece
Abroad
Total
Interconnected
system
Non-interconnected
islands
Energy sales
4,429,665
569,420
16,583
5,015,668
Natural gas sales
1,161
-
-
1,161
Public Service Obligations
-
(21,060)
-
(21,060)
Customers’ Contributions
79,178
12,674
-
91,852
Income from the sale of
electrictiy from NII thermal
units
-
283,859
-
283,859
Distribution Network
Revenues
247,784
29,961
-
277,745
Other
42,267
14,899
-
57,166
Grand total
4,800,055
889,753
16,583
5,706,391
2020
Greece
Abroad
Total
Interconnected
system
Non-interconnected
islands
Energy sales
3,480,989
439,245
27,094
3,947,328
Natural gas sales
472
-
-
472
Public Service Obligations
-
150,661
-
150,661
Customers’ Contributions
75,105
13,414
-
88,519
Income from the sale of
electrictiy from NII thermal
units
-
192,760
-
192,760
Distribution Network
Revenues
196,157
19,421
-
215,578
Other
46,749
7,377
-
54,126
Grand total
3,799,472
822,878
27,094
4,649,444
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
201
7. PAYROLL COST
Group
Company
2021
2020
2021
2020
Payroll cost
598,467
581,569
312,314
317,013
Employer social contributions
145,524
153,278
80,442
86,455
Provision for personnel’s severance payment
(note 31)
16,075
35,830
13,591
22,576
Provision for supply of electricity at reduced
tariffs (note 31)
(3,148)
(2,539)
(2,046)
(1,713)
Retrospective recovery of special benefits due
to new CLA
34,555
-
22,074
-
Capitalized payroll cost
(56,242)
(54,529)
(9,421)
(13,057)
Utilization of the provision for restoration of
mines
(4,860)
-
(4,860)
-
Total
730,371
713,609
412,094
411,274
New Remuneration Policy
On June 4, 2021, the Extraordinary General Meeting of the shareholders of the Parent Company approved the new
Remuneration Policy of PPC SA. where the new remunerations of the members of the Board of Directors and its
Committees as well as the remuneration of the executives of the Company were determined. In addition, the
maximum level of the additional incentive (bonus) was set for the Chief Executive Officer, the Deputy CEOs, the
Chief Officers and the Directors of PPC S.A. and PPC Renewables S.A. as a percentage of their annual gross fixed
salary, depending on short-term targets (financial targets, strategic/operational targets and environmental and
sustainable development targets), as well as the framework for granting them.
The amount of the additional incentive for 2020 and 2021 amounted to €1 million and € 2.7 million respectively and
is included in payroll cost of the Group and the Parent Company in the Income Statement for the year ended 31
December 2021.
Furthermore, the provision of an additional incentive reward has been decided for the period 2020-2025 for the
senior executives and executives of PPC S.A. and PPC Renewables S.A. for their contribution to the achievement
of Group’s medium-term targets with the form of 4 rolling cycles of free of charge shares plan (equity settled stock
awards) and the framework for their granting was set, based on the provisions of article 49 of Law 4548/ 2018.
While, the Board of Directors has been authorized to determine the Key Performance Indicators, that will be linked
with market conditions for each cycle of free of charge shares plan.
The 4 cycles are the following: 1st cycle 01/01/2020 to 31/12/2021 with distributing shares in 2022, 2nd cycle
01/01/2021 to 31/12/2022 with distributing shares in 2023, 3rd cycle 01/01/2022 to 31/12/2023 with distributing
shares in 2024 and the 4th cycle 01/01/2023 to 31/12/2024 with distributing shares on December 31, 2025, the date
of the conclusion of the plan. The remuneration policy is in effect for 4 years from its approval by the Extraordinary
General Meeting.
By Decision of the Board of Directors, the objectives of the Program are set for the cycles that have already
commenced on 01/01/2020 and 01/01/2021 (grant date of the free shares) of the first two cycles. The vesting date
of each cycle was set as the last day of the cycle. As the Key Performance Indicators have not been defined up to
date, at present it is not possible to determine the fair value of the free of charge share-based Rights. The accounting
policy that was adopted by the Group and the Parent Company is presented in note 4.4.
In the context of the above programs for free of charge distribution of shares, the Group and the Parent Company
proceed with the purchase of own shares based on the provisions of article 49 of Law 4548/2018. Specifically, the
Parent Company within February 2022 acquired through the Athens Stock Exchange 706,238 own treasury shares
with a weighted average purchase price of € 8,541 per share, with a total value of € 6 million, corresponding to
0.1849% of the total shares of the Company.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
202
7.PAYROLL COST (CONTINUED)
Collective Labor Agreement
At the meeting of the Board of Directors of the Parent Company on March 23rd, 2021, a new three-year Collective
Labor Agreement (“CLA”) was approved and signed on March 24th, 2021 with the representatives of GENOP/ PPC-
KHE and the First-level Unions for the period 2021-2024. The CLA includes institutional and wage arrangements
and mainly defines the conditions of employment through work at home. In addition, the Collective Labor Agreement
provide for a retroactive charge for special allowances to employees, for which the Group and the Parent Company
recognized additional payroll cost of € 34.5 mil. and € 22.1 mil. as of December 31, 2021 respectively.
8. ENERGY PURCHASES AND RELATED FEES
Group
Company
2021
2020
2021
2020
DAS & deviations’ Settlement
1,226,980
622,169
1,431,850
712,249
Energy imports from abroad
4,398
79,495
21,315
120,260
Other domestic energy purchases
82,549
91,227
98,477
105,738
Transitional flexibility Compensation Mechanism
25
1,895
-
1,862
Purchase rights
3,126
9,189
3,216
9,359
Net charge to ensure sufficient capacity
(110)
(20,932)
(104)
(7,731)
Charge of electricity suppliers for RES account
-
72,863
-
72,863
Arrangement of losses
(97)
45,857
(97)
45,767
Weighted variable cost of thermal units
301
104,316
244
104,154
Net charge for ancillary services
(108)
17,867
(108)
20,341
(Gain)/Loss from the sale of NOME- type
auctions
-
(11,510)
-
(11,510)
Ιncremental accounts
(5)
4
(6)
-
Hedging transactions (Note 43)
(92,285)
-
(92,285)
-
Losses from short positions due to lignite
production
15,131
-
15,131
-
Periodic clearance of alternative suppliers
(10,739)
-
(10,739)
-
Other purchases
57,556
105,423
20,683
41,978
Total
1,286,722
1,117,863
1,487,577
1,215,330
Other purchases of the Group include purchases of electricity of foreign subsidiaries.
Extraordinary charge of cargo representatives-2020
With article 157 of Law 4759/2020 (OG A'245 / 09.12.2020), a one-off special contribution was imposed on electricity
producers from Renewable Energy Sources stations and High Efficiency Co-generation of Electricity - Heat
(S.I.TH.Y.A.), which have been put into normal or test operation until December 31, 2015. The special contribution
was calculated as a percentage of the pre-VAT sale price of electricity, which is injected by the producer into the
system or the interconnected network or the electrical systems of the Non-Interconnected Islands (MDN), for the
sales of electricity that took place during the period from 1.1.2020 to 31.12.2020 or were invoiced in the monthly
clearances of the year 2020 and amounts to 6% for all categories of producers.
On December 31, 2020, the Group and the Parent Company formed a provision for this extraordinary charge of €
74.3 million and € 72.9 million respectively, which burdened the results of the year ended December 31, 2020 and
in particular the Energy Purchases in the amount of € 72.9 million for the Group and the Parent Company and Other
(Revenue) / Expenses of the Group in the amount of € 1.4 million. An equal liability was included on December 31,
2020 in Accrued and Other Liabilities of the separate and consolidated Financial Statements.
Weighted variable cost of thermal units -2020
According to Law 4759/2020 (OG A' 245 / 09.12.2020), the additional charge to suppliers was abolished from
01.01.2021 to cover the average variable cost of thermal conventional power plants (MMCSS) which for the year
2020 amounted to € 104 million.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
203
8.ENERGY PURCHASES AND RELATED FEES (CONTINUED)
Compliance with European Union antitrust rules due to PPC's exclusive access to lignite power generation
From September 1, 2021, PPC undertook the obligation (article 44 of L4348 / 2021- Note 2) to create a short
positions in quarterly futures contracts corresponding to 50% of the lignite electricity generation of the respective
calendar quarter of the previous calendar year and up to the third quarter of the year 2022 and 40% of the lignite
electricity generation of the corresponding calendar quarter of the previous calendar year, in the following quarters,
by 31 December 2024 at the latest.
In this context, PPC received in 2021 short positions in futures contracts for electricity to cover this obligation that
expired within the fourth quarter of 2021 and mature from January 1, 2022 to December 31, 2022, recording a loss
of € 15.1 million, including changes in the fair value of long positions in futures contracts that PPC took to cover its
exposure to this obligation.
9. DEPRECIATION AND AMORTISATION
Group
Company
2021
2020
2021
2020
Depreciation / Amortisation
- Property, plant and equipment (Note 15)
656,456
735,817
339,324
415,548
- Intangible assets (Note 16)
5,817
5,224
3,668
3,434
- Right-of-use assets (Note 42)
20,147
21,861
13,827
15,385
- Transfer from subsidies (Note 33)
(16,172)
(18,857)
(9,896)
(12,443)
Total Continuing Operations
666,248
744,045
346,923
421,924
Discontinued Operations
- Property, plant and equipment (Note 15)
-
-
-
259,734
- Transfer from subsidies (Note 33)
-
-
-
(2,098)
Total Discontinued Operations
-
-
-
257,636
Total
666,248
744,045
346,923
679,560
10. EMISSION ALLOWANCES (CO
2
)
In October and November 2020, the new greenhouse gas emission permits were issued for the 4th phase of the
European Emissions Trading Scheme (EU ETS), ie from 1 January 2021 to 31 December 2030. Licenses were
issued for 29 installations (including subsidiaries). No new license was issued for the Amyntaio HPP, due to its final
shutdown on September 1, 2020.
On 31.03.2021, the verifications of the CO2 emission reports of the year 2020 were completed by accredited control
bodies for the 30 obligatory facilities of the PPC group, which were submitted on time to the Competent Authority
in accordance with the current legislation. Total CO2 emissions in 2020 amounted to 15.48 million tonnes, including
subsidiary facilities.
According to the current European and National legislation, during the 3rd and 4th phase of implementation of the
EU-ETS (period 2013-2020 and 2021-2030), PPC SA. is not entitled to free distribution of allowances for the CO2
emissions of its liable production stations, with the exception of part of the emissions corresponding to the supply
of thermal energy for district heating. In the year 2021, approximately 23 thousand allowances were granted free of
charge for the emissions corresponding to the supply of thermal energy for district heating.
During 2020, approximately 34 thousand rights were granted free of charge for the Company's emissions, which
correspond to the supply of thermal energy for district heating.
Based on the provisional reports for the fourth quarter of 2021, the total volume of CO2 emissions of the Group's
liable facilities during the period 01.01.2021-31.12.2021 amounts to approximately 15.80 million tons. It is pointed
out that the CO2 emissions of the year 2021 will be considered final only in April 2022, when the verifications of the
CO2 emission reports for 2021 will be completed by accredited control bodies.
In the Income Statement “emission allowances" amounted of € 699,164 thousand concerns consumption of
purchased EUAS of € 699,149 thousand (Note 16) as well as their managing costs. Also in note 17 the movement
of intangible emission allowances is presented.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
204
10.EMISSION ALLOWANCES (CONTINUED)
Emission allowances (CO
2
) are presented in the following table:
Group
Company
2021
2020
2021
2020
Cover of emissions from purchased EUAS
699,149
393,464
573,778
327,839
Cover of prior year deficit
-
-
-
-
Managing costs
15
22
15
22
Total
699,164
393,486
573,793
327,861
11. FINANCIAL EXPENSES
Group
Company
2021
2020
2021
2020
Interest Expenses
125,729
134,395
95,001
99,986
Bank charges
5,934
3,631
3,872
1,535
Amortization of loans’ issuance costs
7,133
3,212
7,133
3,212
Finance cost on right-of-use assets (Note 42)
3,702
2,888
2,413
1,827
Commissions on letter of guarantee
24,480
25,207
5,992
6,438
Financial costs for the provision of
decommissioning and removal of Power
Plants’, Mines’ and Wind Parks’ facilities and
mines’ land restoration (Note 32)
27,795
26,648
27,795
26,606
Securitization interest expenses and other costs
(Note 45)
64,369
2,252
64,369
2,252
Total Continuing Operations
259,541
198,233
206,575
141,856
Discontinued Operations
-
-
45,388
52,755
Total
259,541
198,233
251.963
194,611
12. FINANCIAL INCOME
Group
Company
2021
2020
2021
2020
Interest from outstanding energy bills
46,195
52,042
46,195
52,042
Interest on bank and time deposits (Note 25)
709
2,724
121
1,407
Gain from modification of loan agreement terms
(Note 30)
11,477
-
11,477
-
Subsidiaries’ dividends
-
-
6,766
23,277
DEPA interests
-
3,875
-
3,875
Other
913
1,467
663
1,223
Total
59,294
60,108
65,222
81,824
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
205
13. OTHER (INCOME) / EXPENSE, NET
Group
Company
2021
2020
2021
2020
OTHER EXPENSES
Transportation and travel expenses
18,032
14,418
7,730
5,745
Taxes and duties
30,519
26,549
22,179
19,553
(Gain)/Losses on dismantling of property, plant
and equipment
3,393
4,010
(540)
879
Consumables
7,367
12,013
4,488
5,574
Additional costs from settlements with third
parties
-
17,909
-
17,909
Other Expenses
63,960
72,819
43,976
57,572
Total
123,271
147,718
77,833
107,232
OTHER INCOME
Penalties to suppliers/ contractors
(4,370)
(1,737)
(249)
(254)
Subsidies to expenses
(1,547)
(1,069)
(1,509)
(1,069)
Income from leases
(1,325)
(1,376)
(1,607)
(1,387)
Income from PSOs
-
(5,651)
-
(5,651)
Income from issuance/distribution of electricity
bills
-
(8,162)
-
(8,162)
Income from retrospective gas supply price
revision
-
(44,773)
-
(44,773)
Income from transactions of commodity
derivatives (Note 43.2)
(46,024)
-
(46,024)
-
Other income
(16,896)
(16,943)
(15,427)
(15,710)
Total
(70,162)
(79,711)
(64,816)
(77,006)
Total expense
53,109
68,007
13,017
30,226
Discontinued Operations
-
-
(5,685)
(6,838)
Total
53,109
68,007
7,332
23,388
Other expenses mainly consists of costs made as part of corporate social responsibility through donations,
sponsorships.
Retrospective revision of natural gas supply prices
In April 2020, DEPA refunded to PPC a net amount of € 44.8 mil, plus interest of € 3.8 mil. due to a retrospective
revision by DEPA, of the contractual natural gas supply prices to PPC for the years 2012-2019. This revision was
made following a decision by the International Court of Arbitration for the contract between BOTAS-DEPA and for
which, as the Company was informed, BOTAS has filed an appeal. The above amounts are included in other
(Income)/Expenses in the Income Statement for the year ended on December 31
st
2020.
Ernst & Young's fees for the Group amount to Euro 2.3 mil., (including fees for the issuance of Bonds and the Share
Capital increase) of which €96 thousand relates to permitted non-audit services whose compliance (in accordance
with Regulation (EU) 537/2014) was confirmed by the Audit Committee during the fiscal year 2021.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
206
14. INCOME TAXES (CURRENT AND DEFERRED)
Group
Company
31.12.2021
31.12.2020
(Restated)
31.12.2021
31.12.2020
(Restated)
Current income taxes
10,930
9,580
-
-
Income taxes refund from
previous years
(103,153)
-
(103,153)
-
Deferred icome tax
(39,229)
17,217
82,324
28,729
Total income tax-Continued
Operations
(131,452)
26,797
(20,829)
28,729
Discontinued Operations
-
-
(118,962)
2,495
Total income tax
(131,452)
26,797
(139,791)
31,224
According to the last amendment of the Income Tax Code (L.4172/2013), as amended by Law 4799/2021 (OG A’
78/18-05-2021), the income tax rate for the legal entities residing in Greece for the income of the fiscal year 2021
and onwards is set at 22% instead of 24%. Moreover, income tax prepayment for the following year is set to 80%
instead of 100%.
As a result, the deferred income tax and current income tax as of December 31th, 2021 were measured with the
income tax rate 22% for the Greek Companies of the Group.
Tax returns for companies residing in Greece are filed annually but profits or losses declared remain provisional,
until the tax authorities audit the Company's returns and records and a final tax audit report is issued. A
corresponding obligation exists for foreign subsidiaries in accordance with local provisions.
The Group establishes a provision, if deemed necessary, per company and on a case by case basis, against any
possible additional taxes being imposed by the tax authorities.
Based on the applicable Income Tax Code, from the fiscal year 2011, for the Group's companies residing in Greece
the Statutory Auditors issue an “Annual Tax Compliance Report” after conducting an audit at the same time with
the financial audit (“tax certificate”).
The audit is conducted on particular tax areas, specified by an audit program, according to the provisions of the
tax law. Audit matters which are not covered by the above-mentioned decision are dealt with in accordance to the
ISAE 3000 “Assurance Engagements other than Audits or Reviews of Historical Financial Information”.
From January 1st, 2016 and onwards, pursuant to Law 4410/2016, the issuance of the tax certificate became
optional, however, the Group applies the procedure for its issuance by the Statutory Auditors for subsidiaries
residing in Greece.
The tax certificate of the Parent Company for the year 2020 was issued on 27/10/2021 from its statutory auditors
“in compliance” with the applicable tax provisions.
Tax unaudited years for the Parent Company and the subsidiaries of the Group are presented in the following table:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
207
14.INCOME TAXES (CURRENT AND DEFERRED)(CONTINUED)
Company
Country
Unaudited
years since
PPC S.A. (Parent Company)
Greece
2016
PPC Renewables S.A.
Greece
2016
HEDNO S.A.
Greece
2016
Arkadikos Ilios 1 S.A.
Greece
2016
Arkadikos Ilios 2 S.A.
Greece
2016
Iliako Velos 1 S.A.
Greece
2016
Amalthia Energiaki S.A.
Greece
2016
SOLARLAB S.A.
Greece
2016
Iliaka Parka Ditikis Makedonias 1 S.A.
Greece
2016
Iliaka Parka Ditikis Makedonias 2 S.A.
Greece
2016
PPC FINANCE PLC
United Kingdom
2009
PPC BULGARIA JSCo
Bulgaria
2014
PPC Elektrik Tedarik ve Ticaret A.S.
Turkey
2014
PPC ALBANIA
Albania
2017
PHOIBE ENERGIAKH S.A.
Greece
2016
Geothermikos Stochos SOLE SHAREHOLDER S.A.
Greece
2017
WINDARROW MOUZAKI ENERGY S.A.
Greece
2018
AMYNTAIO PV PARK ONE SOLE SHAREHOLDER SA*
Greece
2021
AMYNTAIO PV PARK TWO SOLE SHAREHOLDER SA*
Greece
2021
AMYNTAIO PV PARK THREE SOLE SHAREHOLDER SA*
Greece
2021
AMYNTAIO PV PARK FOUR SOLE SHAREHOLDER SA*
Greece
2021
AMYNTAIO PV PARK FIVE SOLE SHAREHOLDER SA*
Greece
2021
AMYNTAIO PV PARK SIX SOLE SHAREHOLDER SA*
Greece
2021
AMYNTAIO PV PARK SEVEN SOLE SHAREHOLDER SA*
Greece
2021
AMYNTAIO PV PARK EIGHT SOLE SHAREHOLDER SA*
Greece
2021
AMYNTAIO PV PARK NINE SOLE SHAREHOLDER SA*
Greece
2021
EDS AD Skopje
Republic of North Macedonia
2012
EDS DOO Belgrade
Serbia
2016
EDS International SK SRO
Slovakia
2012
EDS International KS LLC
Kosovo
2016
LIGNITIKI MELITIS S.A.
Greece
2018
LIGNITIKI MEGALOPOLIS S.A.
Greece
2018
*On the 2nd of August 2021, the above 100% subsidiaries of PPC Renewables SA were established
For the unaudited tax years, the Group establishes a provision on the basis of the findings of prior tax audits.
An analysis and numerical reconciliation between the tax expense and the result of multiplying the accounting profit
by the nominal applicable tax rate is set out below:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
208
14.INCOME TAXES (CURRENT AND DEFERRED)(CONTINUED)
Group
Company
2021
2020
(Restated)
2021
2020
(Restated)
Gain/(Loss) before tax
(149,822)
46,278
166,354
95,473
Nominal tax rate
22%
24%
22%
24%
Income tax calculated at nominal tax rate
(32,961)
11,107
36,598
22,913
Tax from share capital increase expenses
(14,504)
-
(14,504)
-
Non-deductible/Exempted revenues
(7,625)
740
(10,278)
740
Subsidiaries’ dividends
-
-
(1,488)
(5,587)
Effect of change in tax rates
180,815
-
176,971
-
Tax losses for which deferred tax asset has not been
recognized
10,401
-
-
-
Items for which no deferred tax has been recognized
(42,049)
-
(45,134)
-
Other
(122,376)
14,950
(178,803)
13,158
Income tax
(28,299)
26,797
(36,638)
31,224
The movement of the deferred income tax account is presented below:
Group
Company
2021
2020
(Restated)
2021
2020
(Restated)
Balance, January 1
st
202,113
221,098
761,055
204,584
Transfers to Liabilities Held for Sale
-
-
(111)
587,550
(Debit)/Credit at profit and loss statement
39,229
(17,217)
(82,324)
(31,224)
Other
605
508
-
-
(Debit) /Credit directly in other
comprehensive income
140,540
(2,276)
53,221
145
Balance, December 31
st
382,487
202,113
731,841
761,055
Deferred income tax receivables and liabilities are disclosed in the accompanying balance sheets as follows:
Group
Company
2021
2020
(Restated)
2021
2020
Deferred income taxes
- Receivables
1,340,332
1,236,905
887,878
1,101,326
- Liabilities
(957,845)
(1,034,792)
(156,037)
(340,271)
Total
382,487
202,113
731,841
761,055
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
209
14.INCOME TAXES (CURRENT AND DEFERRED)(CONTINUED)
Group
Company
2021
2020
(Restated)
2021
2020
Deferred tax receivables
- Inventories
69,354
69,617
65,221
65,325
- Trade receivables
293,977
347,444
271,270
323,268
- Provision for risks and expenses
126,073
115,269
89,161
73,464
- Subsidies
18,026
21,568
10,337
21,230
- Customers’ contributions
324,998
167,670
1,130
168,009
- Property, plant and equipment
27,850
28,462
25,630
23,411
- Financial Assets measured at fair value
through comprehensive income
3,120
3,327
3,120
3,327
- Subsidiaries and associates
86,439
75,650
86,439
75,650
- Post retirement benefits
82,889
90,202
26,317
31,049
-Other
41,642
45,257
43,127
43,993
- Provision of Decommissioning and
removal of Power Plants’, Mines’ and
Wind Parks’ facilities and mines’ land
restoration
96,525
91,260
96,687
91,422
- Sundry provisions
885
5,199
884
5,198
- Tax losses
168,555
175,980
168,555
175,980
Deferred tax receivables
1,340,332
1,236,905
887,878
1,101,326
Deferred tax liabilities
- Long-term loans’ issuance fees and
expenses
(15,450)
(18,929)
(15,450)
(18,929)
- Depreciation and revaluation of property,
plant and equipment
(924,556)
(1,010,695)
(124,193)
(905,169)
- Foreign currency (gains)
(52)
(56)
(52)
(56)
- - Derivative financial instruments
(16,920)
(1,153)
(16,920)
(1,153)
- - IFRS 16 Right-of-use assets
(867)
(3,959)
578
(2,513)
- - Transfer to Liabilities Held for Sale
-
-
-
587,549
Deferred tax liabilities
(957,845)
(1,034,792)
(156,037)
(340,271)
Deferred Tax receivables net
382,487
202,113
731,841
761,055
The movement of deferred taxes in income statement is analyzed below:
Group
Company
2021
2020
(Restated)
2021
2020
(Restated)
-Inventories
(264)
17,071
(104)
16,681
-Trade receivables
(53,468)
(64)
(51,998)
316
-Provision for risks and accruals
10,804
(7,358)
15,697
(7,651)
-Subsidies & Customer Contributions
153,786
3,078
153,756
3,078
-Property, plant and equipment
2,219
5,051
2,219
5,051
-IFRS 16 Right-of-use assets
3,092
319
3,092
319
- Long-term loans’ issuance fees and
expenses
3,479
3,275
3,479
3,274
- Subsidiaries and associates
10,789
31,036
10,789
31,036
- Depreciation - Revaluation of property,
plant and equipment
(84,162)
(31,619)
(92,606)
(37,945)
- Foreign exchange (gains)
5
-
5
-
- Financial sssets measured at fair value
through comprehensive income
(206)
56
(206)
56
-Tax losses
(7,425)
(34,682)
(7,425)
(34,682)
-Post retirement benefits
1,167
(19,253)
1,169
(13,701)
-Other
(6,491)
10,819
(7,130)
(2,110)
- Provision of Decommissioning and
removal of Power Plants’, Mines’ and
Wind Parks’ facilities and mines’ land
Restoration
10,215
10,823
10,215
10,823
- - Sundry provisions
(4,314)
(5,769)
(4,314)
(5,769)
(Debit)/ Credit in income statement
39,226
(17,217)
36,638
(31,224)
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
210
14.INCOME TAXES (CURRENT AND DEFERRED)(CONTINUED)
Deferred income tax charged in the statement of comprehensive income is attributable to the following items:
Following the completion of the spin-off of the distribution network from PPC to HEDNO in accordance with the
provisions of Law 1297/1972 on the provision of tax incentives for the merger or conversion of companies, the tax
base of the contributed fixed assets increased by goodwill arising on the valuation of these assets, in proportion to
their depreciable value in relation to their acquisition value. The decrease of the deferred liability due to the revision
of the tax base of the fixed assets of the distribution sector was recognized in the revaluation suprlus of the Group
and amounted to € 62.5 million.
Income Tax Refund for the years 2015, 2016 within 2021
During the process of the preparation and audit of the annual financial statements for the year 2017, PPC SA
determined that the method followed for the calculation of unbilled energy to low voltage customers for the years
2015 and 2016 was not appropriate under its circumstances, which led to an overstatement of the revenues of the
respective years.
Specifically, the aforementioned overstatement formed additional accrued revenues from energy sales of € 91.3
million for 2016 and € 251.4 million for 2015, which consequently increased the profits of these years.
After the determination of the overstatement of revenues of the respective years, the results of the Financial
Statements of the Company, but also of PPC’s Group were restated, in accordance with the provisions of IAS 8, in
order to be compatible with the actual data. The specific restatement was included in the Financial Statements of
2017 which were approved by the 18th General Meeting of June 7, 2018.
In parallel with the accounting restatement of the results, amending tax returns were submitted for the specific years
2015 and 2016, with which the Company essentially requested the recovery of tax that had been additionally paid
due to the overstatement of revenues amounting to € 76.6 million for the year 2015, and € 26.4 million for the year
2016.
With the submission of the amending tax returns, a corresponding audit was carried out by the State Tax Office and
in combination with the E2228 / 2021 circular order of AADE regarding the possibility of submitting a return and
repaying the credit balance, as a consequence of correcting an error, according to the provisions of article 28 of
Law 4308/ 2014 or IAS 8, the refund of the requested amount of amendments totaling to € 103 million was approved.
The Parent Company received from the State Tax Office on December 27, 2021 an amount of € 99.5 million, while
it offseted the remaining amount of € 3.7 million with its liabilities.
Group
Company
2021
2020
2021
2020
- Actuarial gains/ (losses)
(9,043)
(9,733)
(5,901)
(6,678)
- Provision of
Decommissioning and
removal of Power Plants’,
Mines’ and Wind Parks’
facilities
(4,951)
(780)
(4,951)
(780)
-Derivative financial
instruments
(15,767)
(1,153)
(15,767)
(1,153)
- Revaluation/ impairments of
property, plant and equipment
170,301
9,390
123,354
8,756
Debit/ (Credit) in the
statement of comprehensive
income
140,540
(2,276)
96,736
145
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro unless otherwise stated)
211
15. PROPERTY, PLANT AND EQUIPMENT, NET
GROUP
Land
Mines
Lakes
Buildings and
Technical Works
Machinery &
Equipment
Transportation
Assets
Fixtures and
Furniture
Construction in
progress
Total
Carrying amount December 31, 2019
431,287
856,221
40,250
1,464,159
7,182,851
34,073
68,603
1,237,219
11,314,664
- Impairments of mines’ and lignite Units’ property, plant and
equipment and provision for mines’ land restoration
(130)
(29,549)
-
(18,179)
(44,841)
-
(2,527)
(46,863)
(142,089)
- Partial reversal of impairment loss of assets under construction
-
-
-
-
-
-
-
209,856
209,856
-Revaluation surplus / (Devaluation) of property, plant and
equipment
31
-
-
1,584
(1,859)
-
-
(302)
(546)
-Additions- decommissioning and removal costs of Power Plants’,
and Mining facilities and mines’ land restoration
-
(1,893)
-
-
143
-
-
-
(1,750)
- Additions
26
-
-
2,095
155,662
90
6,227
214,182
378,282
- Disposals
-
-
-
(598)
(4,208)
(71)
(687)
-
(5,563)
- Transfers from CIP
13
21,796
-
8,858
46,664
-
66
(77,507)
(110)
- Transfers
-
-
-
-
(5,988)
-
-
(1,787)
(7,775)
- Other movements
9,109
(9,326)
-
-
11
-
-
(256)
(462)
December 31, 2020
440,336
837,249
40,250
1,457,919
7,328,435
34,093
71,683
1,534,542
11,744,507
Accumulated depreciation
December 31, 2019
-
(699,597)
(18,041)
(4,637)
(5,332)
(138)
(14,205)
-
(741,950)
- Depreciation charge
(577)
(41,018)
(788)
(103,885)
(568,868)
(11,969)
(8,712)
-
(735,817)
-Accumulated depreciation of disposals / sales
-
-
-
16
950
34
555
-
1,554
- Transfers to intangible assets
-
-
-
-
1,593
-
-
-
1,593
December 31,2020
(577)
(740,615)
(18,829)
(108,506)
(571,658)
(12,073)
(22,362)
-
(1,474,620)
Net carrying amount
439,759
96,634
21,421
1,349,413
6,756,777
22,020
49,320
1,534,542
10,269,887
Carrying amount December 31, 2021
440,336
837,249
40,250
1,457,919
7,328,435
34,093
71,683
1,534,542
11,744,507
- Impairments of mines’ and Lignite Units’ property, plant and
equipment and provision of mines’ land restoration
-
(75,184)
-
-
-
-
-
(55,225)
(130,408)
Revaluation surplus / (Devaluation) of property, plant and equipment
6,272
-
-
1,971
298,151
(1,001)
(918)
-
304,475
- Additions -decommissioning and removal costs of Power Plants’,
and Mining facilities and mines’ land restoration additional costs
-
87,981
-
-
71
-
-
-
88,052
- Additions
-
-
-
2,481
189,981
1,096
8,989
232,654
435,200
- Disposals/Sales
(2,960)
(129,980)
-
(1,543)
(30,182)
(1,225)
(1,191)
(7,508)
(174,589)
- Transfers from CIP
1,923
6,860
-
6,955
43,874
-
1,145
(60,757)
-
-Transfers to intangible assets
-
-
-
-
-
-
(5)
(7,748)
(7,753)
- Other Movements
(1,666)
1,977
(433)
-
55
(56)
(100)
(224)
(427)
- Offsetting accumulated depreciation at cost due to revaluation of
fixed assets
-
-
-
(39,810)
(543,363)
(809)
(1,152)
-
(585,133)
December 31,2021
443,906
728,923
39,817
1,427,974
7,287,022
32,097
78,452
1,635,734
11,673,924
Accumulated depreciation
December 31, 2020
(577)
(740,615)
(18,829)
(108,506)
(571,658)
(12,073)
(22,362)
-
(1,474,620)
- Depreciation charge
(577)
(35,159)
(764)
(91,514)
(513,910)
(5,462)
(9,069)
-
(656,456)
-Accumulated depreciation of disposals / sales
-
129,980
-
823
4,862
1,067
1,020
-
137,752
- Other movements
-
-
-
-
25
(4)
(8)
-
13
-Offsetting accumulated depreciation at cost due to revaluation of
fixed assets
-
-
-
39,810
543,363
809
1,152
-
585,133
December 31, 2021
(1,154)
(645,794)
(19,593)
(159,387)
(537,319)
(15,663)
(29,266)
-
(1,408,177)
Net carrying amount
444,752
83,129
20,224
1,268,586
6,749,703
16,434
49,185
1,635,734
10,265,746
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
212
15. PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED)
Parent Company
Land
Mines
Lakes
Buildings and
Technical
Works
Machinery &
Equipment
Transportation
Assets
Fixtures and
Furniture
Construction in
progress
Total
Carrying amount December 31, 2019
422,351
856,219
39,817
1,387,605
6,988,706
15,728
42,353
1,148,077
10,900,856
-Impairments of mines’ and lignite Units’ property, plant
and equipment and provision for mines’ land restoration
-
(29,550)
-
(15,093)
(43,424)
-
(2,527)
(45,772)
(136,366)
- Partial reversal of impairment loss of assets under
construction
-
-
-
-
-
-
-
209,856
209,856
Revaluation surplus / (Devaluation) of property, plant and
equipment
31
-
-
1,584
480
-
-
-
2,095
- Additions/ decreases of decommissioning and removal
costs of Power Plants’, and Mining facilities and mines’
land restoration
-
(1,893)
-
-
-
-
-
-
(1,893)
- Additions
-
-
-
930
155,345
90
3,886
184,382
344,633
- Disposals / Sales
-
-
-
(598)
(4,209)
(67)
(140)
-
(5,013)
- Transfers from CIP
3
21,796
-
5,916
29,227
-
5
(57,028)
(81)
- Other Movements
9,109
(9,326)
-
-
-
-
-
(275)
(492)
- Assets held for sale
(193,160)
-
-
(150,733)
(4,477,071)
-
(43)
(5,482)
(4,826,489)
December 31, 2020
238,334
837,246
39,817
1,229,611
2,649,054
15,751
43,534
1,433,758
6,487,106
Accumulated depreciation
December 31, 2019
-
(699,597)
(18,041)
(4,629)
(1,965)
-
-
-
(724,232)
- Depreciation charge
(577)
(41,017)
(788)
(95,334)
(524,296)
(7,005)
(6,265)
-
(675,282)
-Accumulated depreciation of disposals / sales
-
-
-
16
950
31
20
-
1,016
- Assets held for sale
-
-
-
16,913
247,175
-
4
-
264,092
December 31, 2020
(577)
(740,614)
(18,829)
(83,034)
(278,136)
(6,974)
(6,242)
-
(1,134,406)
Net carrying amount
237,757
96,632
20,988
1,146,577
2,370,918
8,777
37,293
1.433,758
5,352,700
Carrying amount December 31, 2020
238,334
837,246
39,817
1,229,611
2,649,054
15,751
43,534
1,433,758
6,487,106
- Impairments of mines’ and lignite Units’ property, plant
and equipment and provision for mines’ land restoration
-
(75,184)
-
-
-
-
-
(52,336)
(127,520)
- Additions- decommissioning and removal costs of
Power Plants’, and Mining facilities and mines’ land
restoration
-
87,981
-
-
-
-
-
-
87,981
- Additions
-
-
-
60
-
37
3,705
179,525
183,327
- Disposals / Sales
(2,960)
(129,980)
-
(1,310)
(26,505)
(912)
(177)
(7,487)
(169,330)
- Transfers from CIP
1,846
6,860
-
3,575
26,592
-
1,142
(40,014)
-
-Transfers to intangible assets
-
-
-
-
-
-
-
(7,141)
(7,141)
- Other Movements
(1,977)
1,997
-
-
46
-
-
1
67
- Transfers from / (to) assets held for sale
(8)
-
-
(90)
-
-
-
2,431
2,333
December 31, 2021
235,235
728,920
39,817
1,231,846
2,649,188
14,876
48,205
1,508.738
6,456,848
Accumulated depreciation
December 31, 2020
(577)
(740,614)
(18,829)
(83,034)
(278,136)
(6,974)
(6,242)
-
(1,134,406)
- Depreciation charge
(577)
(35,159)
(764)
(71,292)
(223,361)
(1,660)
(6,511)
-
(339,324)
-Accumulated depreciation of disposals / sales
-
129,980
-
779
4,085
912
65
-
135,821
December 31, 2021
(1,154)
(645,793)
(19,593)
(153,547)
(497,412)
(7,722)
(12,688)
-
(1,337,910)
Net carrying amount
234,081
83,127
20,224
1,078,299
2,151,776
7,154
35,517
1,508,738
5,118,915
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro unless otherwise stated)
213
15. PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED)
Revaluation of Tangible Fixed Assets of the Distribution Network on March 31, 2021
On March 31, 2021 the Group proceeded with the valuation of the operating tangible fixed assets of the branch of
the PPC distribution network due to the separation of this branch from PPC and its contribution to the 100%
subsidiary HEDNO SA with the exchange of shares based on the provisions of Law 1297/1972 on the provision of
tax incentives for the merger or conversion of companies, of Corporate Law 4548 / 2018 of societe anonyme
companies and of Law 4601/2019 on Corporate Transformations (Note 5). This valuation was carried out in
accordance with IAS 16 by an independent valuation firm and its results were recognized in the financial statements
of the Group on November 30, 2021 (fair value 31.03.2021 less depreciation until 30.11.2021, plus additions and
reductions). As the fair value of the tangible fixed assets of the sector was recognized in the subsidiary HEDNO
upon the completion of the spin-off, ie on 30.11.2021, the same date it was recognized on the Group. At Parent
Company level, paragraph 15 of IFRS 5 was applicable and as the carrying amount of the fixed assets was lower
than their recoverable amount, no adjustment was made.
The new estimated fair value of the assets of the distribution network branch was influenced, inter alia, by the
methodology established for the calculation of the Allowed and Required Revenue of the Operator of the Hellenic
Electricity Distribution Network (RAE Decision 1431/2020), RAE Decision 1566/ 2020 (OG Β΄1389/ 08.04.2021)
which determined the return on the Regulated Asset Base for the Regulatory Distribution Period 2021 - 2024, equal
to 6.7%, and the Network Development Plan for the period 2021-2025.
The method and significant assumptions applied by the independent appraising firm were as follows:
(a) For the calculation of the fair value of the assets, the appraisers took into account the Group's Business Plan
(b) The total of the real estate assets was considered to be wholly owned by the Group (except those that are jointly-
owned with IPTO S.A.), while, properties for which the Group notified the independent firm of appraisers that are
burdened by commitments or during the appraisals it was found that are burdened by commitments, were not taken
into account for the appraisal.
(c) The appraisers assumed that the Group for all its property, has the title deeds, building permits and other similar
approvals, or has arranged to settle any outstanding issues, as required by Greek Legislation.
(d) The majority of the properties that were assessed were considered to be privately used by the Group, and that
the same use is expected throughout their remaining useful lives.
(d) The Market Approach (market-based evidence) was applied to determine the Fair Value of land, buildings,
fixtures & furniture and transportation assets. The appraiser, in order to calculate the fair value of the property,
carried out a market research and relied on these market research data as well as on data collected by professionals
who are active in each examined region of the relevant properties and lands, adjusting the market data according
to the conditions of each region and the physical characteristics of the Group's properties and lands (size, condition
and exact location).
In the case of land and buildings where sufficient comparative data were not identified, the Utilization Approach /
Residual method was applied.
In special purpose buildings, machinery and technical works (specialized fixed assets), the determination of the fair
value was made on the basis of the Cost Approach, and in particular with the method of amortized replacement
costs, in the content of which adjustments were made, as needed to reflect their physical, functional, technological
and economic obsolescence. For all electromechanical equipment the appraiser took into account the date of
acquisition, the degree of use, maintenance and marketability.
(e) The economic obsolescence was determined by the appraiser applying the income approach and in particular
the discounted cash flows method after testing the profitability (Profitability testing) of the Distribution Network
branch. The discount rate used was calculated on the basis of WACC (Weighted Average Cost of Capital) and
amounted to 4.6%.
The revalued amounts, from appraisers’ work (fair value as of 31.03.2021 less depreciation until 30.11.2021),
compared to Net Book Value of the fixed assets, resulted to net surplus for the Group amounting to approximately
€ 330,3 mil., which was credited directly in the Revaluation Surplus in Comprehensive Income (€378,1 mil. net of
Deferred Taxes for the Group). Also, an amount of € 22.7 mil. for the Group which was not offset by previous years’
Revaluation Surplus was charged in the Statement of Income for the year ended December 31
st
, 2021 (€ 17,7 mil.
net of deferred tax for the Group).
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
214
15. PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED)
Revaluation of Tangible Fixed Assets of lignite subsidiaries on November 30, 2021
On November 30, 2021 the subsidiaries "Lignitiki Megalopolis soleshareholder SA" and "Lignitiki Melitis
soleshareholder SA" proceeded to the valuation of their operating tangible fixed assets in the context of their
absorption by PPC within 2022 (Note 2), in accordance with the provisions of articles 48-49 of Law 4843/2021 in
combination with Law 4601/2019 and the tax provisions of article 54 of Law 4172/2013 with reference date of the
Merger Accounts on November 30, 2021. This valuation was carried out in accordance with IAS 16 by an
independent valuation firm and its results were recognized in the Group's financial statements on November 30,
2021.
The independent valuation firm used the cost approach to evaluate the fair value of specialized assets. Based on
its methodology, functional and physical obsolescence was given to these fixed assets, while no economic
obsolescence test was conducted as mentioned in more detail in its Report.
The comparison of the values resulting from the work of the appraisers with the depreciable value of the assets of
November 30, 2021 resulted in net goodwill whose amount for the Group amounts to € 880 thousands which was
recorded directly in credit of the situation total income. Also, an amount of € 4 million for the Group, which was not
covered by goodwill of previous adjustments, was borne by the results of the year ended December 31, 2021.
The revalued amounts on 30 November 2021, from appraisers’ work compared to the Net Book Value of the fixed
assets, resulted to net surplus for the Group amounting to approximately € 880 thousands which was credited
directly in the Revaluation Surplus in Comprehensive Income. Also, an amount of € 4 mil. for the Group which was
not offset by previous years’ Revaluation Surplus was charged in the Statement of Income for the year ended
December 31
st
, 2021.
Revaluation reserve for fixed assets
The following is a table showing the overall effect of the revaluation of the fixed assets of the distribution network
branch and of lignite subsidiaries on the statements of comprehensive income and profit or loss, as well as the
movement of the revaluation surplus:
Group
31.12.2021
Revaluation Surplus
375,925
(Devaluation)
(44,735)
Total revaluation of fixed assets recognized directly
in the statement of comprehensive income
331,190
Devaluation of fixed assets in the income statement
(26,715)
Total revaluation effect 2021
304,475
Revaluation Surplus
375,925
Deferred tax on revaluation
38,618
Devaluation
(44,735)
Deferred tax on revaluation
8,329
Total revaluation of fixed assets directly in the
statement of comprehensive income, net of deferred
taxes
378,136
Devaluation of fixed assets in the income statement
(26,715)
Deferred tax on revaluation
4,995
Total revaluation of fixed assets net of deferred taxes
(21,720)
Overall Impact of the revaluation 2021, net of
deferred taxes
356,416
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
215
15. PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED)
The following is a table showing the aggregate movement of the revaluation surplus value after taxes:
31.12.2021
31.12.2020
Group
Company
Group
Company
Balance 01.01
4,686,388
4,594,433
4,753,454
4,658,997
Impairment of Mine’s Property, plant and equipment
(29,322)
(29,322)
Change in future outflows of decommissioning and removal
costs of Power Plants’, Mining facilities and mines’ land
restoration (Note 32)
8,709
8,709
2,471
2,471
Revaluation surplus 2021
378.136
-
-
-
Revaluation surplus of 2019, recognized in 2020
-
-
(416)
1,592
Deferred taxes on fixed assets due to change in tax rate
123,354
123,354
-
-
Deferred taxes on recovery provision due to change in tax
rate
(2,494)
(2,494)
Distribution network reserves transferred to retained
earnings
-
(1,696,476)
-
-
Fixed asset disposals
(30,179)
(26,929)
(26,060)
(25,566)
Other movements to retained earnings (not relevant to
revaluation)
-
-
(13,739)
(13,739)
Balance 31.12
5,163,915
3,000,597
4,686,388
4,594,433
Impairment test of the investment in the New Unit, power 660 MW in Ptolemaida V
The construction of the new unit 660 MW in Ptolemaida is in progress. PPC S.A. has already paid the two advance
payments of Euro 197.88 mil. each against relevant Letters of Guarantee of Advance Payment amounting to Euro
226.77 mil. each.
On 05.04.2017, following the relevant decision of the Board of Directors of the Company, the Supplement No 1 of
the Convention 11 09 5052 of Thermal Projects Engineering – Construction Department was issued. With this
Supplement, the Conventional Table of Materials and Prices was replaced with a new Table of Materials and Prices
which includes a further analysis of the prices in accordance with a relevant conventional term.
Additionally, for the needs of testing the equipment of the Project (commissioning), PPC S.A. and the Contractor
signed on 04.07.2019 the Supplement No 2 of the Convention, according to which the Contractor undertakes the
construction and the commissioning of a Temporary Interconnection of the 150 kV transmission line with the Backup
Unit Auxiliary Transformer. On December 31
st
, 2021, the total expenditure for the Project amounts to Euro 1.538
bil. (31.12.2020: Euro 1.456 bil.).
On December 31
st
, 2019, the Parent Company proceeded to an impairment test of the total cost of the project, as
the plan to withdraw the lignite units was an indication of impairment. From this test, an impairment in the carrying
amount of the project was recorded by € 589 mil. On December 31
st
, 2020, and with the new fact that the additional
investment for the conversion of the Lignite Unit into a Natural Gas Unit will amount to Euro 230 mil., increasing the
capacity of the Unit from 660 MW to 1150 MW, while the start of its operation as a Natural Gas Unit is now sheduled
to 2025 instead of 2028 according to the initial lignite phase-out plan, the indicators of impairment that existed on
December 31
st
, 2019, no longer exist. Specifically, the recoverable amount determined by the method of Value in
Use concluded to be higher than the cost of the investment (reduced by the impairment of Euro 589 mil. as of
December 31
st
, 2019) by Euro 210 mil. Following these, the Parent Company proceeded to a partial reversal of the
impairment loss by Euro 210 mil. in favor of the Income Statement.
The Value in Use method was based on the future cash flows of the investment discounted using a discount rate
(Weighted Average Cost of Capital - "WACC") 5.6% (31.12.2019: 5.4%). The main assumptions made concern the
future costs for the operation of the Unit (fuel costs, emission allowances cost, etc), the expected future revenues
as well as the additional capex required for the change of fuel mix from 2025.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
216
15. PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED)
Other impairments for the year ended December 31, 2021
On December 31, 2021, capitalized costs in the Parent Company’s Construction in Progress account were impaired
totaling of € 55.2 million, of which € 19.3 million concern investments that are implemented gradually, in order for
Units I, II, III and V of SES Agios Dimitrios to adapt to the environmental requirements of Directive 2010/75/EU and
to comply with the objectives of Transitional National Emissions Reduction Plan (TNERP).
On December 31st, 2019, the Parent Company recognized a provision for losses based on IAS 37 (onerous
contracts) amounting to Euro 45.7 mil. for the aforementioned investments that cannot be avoided and derive from
the specific environmental obligation. Therefore, this impairment of the capitalized costs by Euro 19.3 mil., reduced
equally the relevant provision recognized on December 31st, 2019 and did not charge the income statement of the
year. The remaining part of the impairment Euro 31.3 mil. concerns mainly additions made to the Mines and the
specific amount was charged the income statement of the year ended December 31
st
, 2021.
Respectively, on December 31
st
, 2020, capitalized costs in Parent Company’s Construction in Progress were
impaired totaling Euro 45.1 mil. out of which Euro 24 mil. concern investments that are implemented gradually, in
order for Units I, II, III and V of SES Agios Dimitrios to adapt to the environmental requirements of Directive
2010/75/EU and to comply with the objectives of Transitional National Emissions Reduction Plan (TNERP). On
December 31st, 2019, the Parent Company recognized a provision for losses based on IAS 37 (onerous contracts)
amounting to Euro 45.7 mil. for the aforementioned investments that cannot be avoided and derive from the specific
environmental obligation. Therefore, this impairment of the capitalized costs by Euro 24 mil., reduced equally the
relevant provision recognized on December 31st, 2019 and did not charge the income statement of the year. The
remaining part of the impairment Euro 19,2 mil. concerns mainly additions made to the Mines and the specific
amount was charged the income statement of the year ended December 31
st
, 2020.
Transfer of High Voltage tangible assets of Crete from PPC SA to IPTO SA.
After the completion of the first phase of the Interconnection of Crete with the Peloponnese, with the provisions of
articles 106-108 of Law 4821/2021 (OG A' 134 / 31.7.2021) articles 108B to 108D are added to Law 4001/2011
regulating the operation of the electricity market of Crete until the 2nd Phase of the Interconnection with the System
of the mainland.
From August 1st 2021, all tangible high voltage assets of the electricity system of Crete, owned by the Parent
Company and managed by HEDNO SA are automatically transferred, from PPC SA to IPTO SA, in full ownership,
use and possession, within Hellenic Electricity Transmission System (HETS) and at the Regulatory Fixed Assets
Registry of HETS and are under the management of IPTO SA for a price, which is calculated and paid in accordance
with the provisions of article 108 of Law 4821/2021.
For the purpose of the transfer, the undepreciated value of the assets is calculated based on the date of the
automatic transfer, as determined under the rules of Regulatory Authority for Energy (RAE), in the context of the
approval of the Distribution Network Revenue and of Transmission System Revenue and is certified by an Auditor.
In addition, within three months from the determination of the transferred assets’ market value by an independent
specialized appraiser and with the mutual acceptance from IPTO SA and PPC SA, an additional amount will be
paid by IPTO SA to PPC SA, for the assets’ transfer, equal to any positive difference between the regulatory value
dated 1.8.2021 and the market value of the tangible assets. This valuation is in progress.
On August 1, 2021, all the fixed assets of the high voltage of the electrical system of Crete were derecognised from
the "Tangible Assets" of the Statement of Financial Position of the Group and the Parent Company as their
automatic transition to the IPTO has taken place. The Group and the Parent Company recognized accrued income
of € 40.6 million equal to their net regulatory carrying value and gains from the sale of fixed assets of € 7.4 million.
On November 26, 2021, IPTO paid the initial price of € 40.6 million to PPC.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
217
15. PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED)
Impairment of Mines due to the acceleration of the conversion of the new under construction unit
"Ptolemaida V" from Lignite to Natural Gas Unit on December 31, 2020
The under-construction Unit “Ptolemaida V” was initially planned to operate from 2022 as lignite unit and be
converted to Natural Gas Unit until 2028 at the latest. After new facts (note below), the conversion and operation of
the said Unit to Natural Gas Unit is scheduled to 2025. As such, the mines (in operation today) that would supply
the new Unit with lignite, will be ceased earlier and specifically at the end of 2024, instead of year 2028 that was
planned as of 31.12.2019. Following this change in the lignite phase-out plan, in the financial statements of the year
ended December 31
st
, 2020, an impairment loss was recorded on the value of property, plant and equipment of the
relevant Mines, as a result of the reduction in the number of years in use by the Group and the Parent Company.
Property, plant and equipment that an impairment loss was recorded mainly include land for the extraction of lignite,
buildings, mechanical and other mining equipment. Management proceeded with an assessment of their
recoverable value, based on the ratio of definitive years of their utilization to their total useful life as estimated as of
31.12.2019. Moreover, the Group and the Parent Company impaired proportionally and the decommissioning
assets of mines. As of December 31
st
, 2020, the Group and the Parent Company recognized impairment for mines
property, plant and equipment and decommissioning assets amounting to Euro 91.2 mil. out of which Euro 52.5 mil.
was charged in the Statement of Income (Euro 39.9 mil. net of deferred tax for the Group and the Parent Company
respectively), while an amount of Euro 38.5 mil. was charged in the Statement of Comprehensive Income (Euro
29.3 mil. net of deferred tax for the Group and the Parent Company respectively).
Capitalization of Borrowing cost:
The Group and the Parent Company capitalized borrowing costs for ongoing projects totaling € 21.7 million for the
year ended December 31, 2021 (2020: € 23.5 million).
Encumbrances on property, plant and equipment:
Encumbrances on the Group’s Property, plant and equipment are presented in Note 30, while claims from third parties
are presented in Note 40.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
218
16. INTANGIBLE ASSETS, NET
Group
31.12.2021
31.12.2020
Software
Other
Intangible
Assets
Emission
Allowances
Total
Software
Other
Intangible
Assets
Emission
Allowance
s
Total
Net book value,
January 1
6,919
23,688
81,529
112,116
24,617
-
56,306
80,923
Additions
2,654
158
941,446
944,258
1,269
1,439
418,745
421,453
Consumption
-
-
(699,149)
(699,149)
-
-
(393,522)
(393,522)
Depreciation (Note 9)
(3,434)
(2,383)
-
(5,817)
(4,529)
(695)
-
(5,224)
Disposals
(13)
-
-
(13)
-
-
-
-
Transfers from
property, plant and
equipment
134
7,620
-
7,753
109
6,182
-
6,291
Impairments
-
(154)
-
(154)
-
-
Other movements
(36)
934
-
995
(14,547)
16,742
-
2,195
December 31
6,296
29,867
323,826
359,989
6,919
23,668
81,529
112,116
Company
31.12.2021
31.12.2020
Softwar
e
Other
Intangible
Assets
Emission
Allowance
s
Total
Software
Other
Intangible
Assets
Emission
Allowances
Total
Net book value,
January 1
4,816
1,256
81,529
87,601
8,748
-
56,306
65,054
Additions
431
14
941,446
941,891
327
351
418,745
419,423
Consumption
-
-
(699,149)
(699,149)
-
-
(393,522)
(393,522)
Depreciation (Note 9)
(2,317)
(1,350)
-
(3,668)
3,434
-
-
(3,434)
Disposals
(13)
-
-
(13)
(1)
-
-
(1)
Transfers from
property, plant and
equipment
129
7,012
-
7,141
81
-
-
81
Transfers /Other
-
(18)
-
(18)
(905)
905
-
-
December 31
3,045
6,912
323,826
333,783
4,816
1,256
81,529
87,601
The net carrying amount of software and other intangible assets is further analyzed as follows:
Group
Company
At December 31, 2020
Software
Other Intangible
Assets
Software
Other Intangible
Assets
Gross carrying amount
87,816
33,541
77,174
7,163
Accumulated
amortization
(80,897)
(9,873)
(72,358)
(5,907)
Net carrying amount
6,919
23,668
4,816
1,256
At December 31, 2021
Gross carrying amount
90,232
40,036
77,361
13,033
Accumulated
amortization
(83,935)
(10,169)
(74,316)
(6,121)
Net carrying amount
6,296
29,867
3,045
6,913
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
219
17. INVESTMENTS IN SUBSIDIARIES
The direct subsidiaries of the Parent Company and the value of the investment are as follows:
Company
31.12.2021
31.12.2020
HEDNO S.A.
Note 5
1,073,201
56,982
PPC Renewables S.A.
155,608
155,608
PPC FINANCE PLC
59
59
PPC BULGARIA JSCo
522
522
PPC ELEKTRIK TEDARIK VE TICARET AS
1,350
1,350
PPC ALBANIA
490
490
EDS DOO Skopje
10,300
6,600
LIGNITIKI MELITIS S.A.
-
.-
LIGNITIKI MEGALOPOLIS S.A.
-
-
1,241,530
221,611
The consolidated financial statements include the financial statements of PPC and its subsidiaries (full consolidation
method).
Due to the fact that the tender process for the sale of the lignite subsidiaries "Lignitiki Melitis S.A." and "Lignitiki
Megalopolis S.A." within 2019 was declared barren, their operational profitability (EBITDA) within 2019, 2020 and
the first half of 2021 was negative, no dividend is expected to be received in the future and also taking into account
the fact that the Parent Company decided in 2020 and 2021 to capitalize its trade receivables from these
subsidiaries, the Parent Company fully impaired the value of its shareholding in the Lignite Subsidiaries since 2019.
In December 2020, the Parent Company’s Board of Directors decided the increase of the share capital of its 100%
subsidiary under the name "Lignitiki Megalopolis S.A." through the offset of its existing and future debt towards PPC
of €55.0 mil., an increase of its share capital through cash amounting to €40.0 mil. (€95.0 mil. in total) and a
reduction of its share capital by offsetting it with losses of €230.0 mil.
The amount of the share capital increase through cash, was paid in installments, by an amount of €10.0 mil. in
December 2020 and an amount of €30.0 in the first two months of 2021.
The increase in the shareholding of Lignitiki Megalopolis S.A. by €85.0 mil. incurred in the first half of 2021, is fully
impaired by the Parent Company and is included in “Impairment loss οn Lignite Subsidiaries” in the Income
Statement of the Parent Company.
In February 2021, the Parent Company’s Board of Directors decided the increase of the share capital of its 100%
subsidiary under the name "Lignitiki Melitis S.A." through the offset of its existing and future debt towards PPC of
€33.0 mil., as well as the reduction of the share capital through offsetting losses amounting to €90.0 mil. The
increase in the shareholding of Lignitiki Melitis S.A. by €33.0 mil. incurred in 2021, is fully impaired by the Parent
Company and is included in “Impairment loss οn Lignite Subsidiaries” in the Income Statement of the Parent
Company.
On December 31, 2021 the shareholding in "Lignitiki Melitis S.A." and in "Lignitiki Megalopolis S.A." before
impairments amounts to €199.8 mil. (31.12.2020: €166.8 mil.) and €196.6 mil. (31.12.2020: €111.6 mil.)
respectively.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
220
17.INVESTMENTS IN SUBSIDIARIES (CONTINUED)
Moreover, as of December 31st, 2020 the Parent Company had established a provision for additional losses from
legal commitments for Lignitiki Megalopolis S.A. amounting to €30.0 mil., which was reversed in 2021. The income
from the derecognition is included in “Impairment loss οn Lignite Subsidiaries” in the Income Statement of the Parent
Company.
Alongside, as of December 31st, 2021 and December 31st, 2020 the Parent Company recorded a provision for
expected credit losses for the trade receivables included in its records by the lignite subsidiaries.
In particular, the Parent Company recorded a provision for expected credit losses amounting to €20.9 mil. and €
30.0 mil. as of December 31st, 2021 and December 31st, 2020 respectively for trade receivables by Lignitiki Melitis
S.A.
In addition, the Parent Company recorded a provision for expected credit losses amounting to €25.2 mil. and € 51.2
mil. as of December 31st, 2021 and December 31st, 2020 respectively for trade receivables by Lignitiki Megalopolis
S.A.
The reduction of the provision for expected credit losses for the trade receivables by the lignite subsidiaries is due
to the share capital increase with the offset of trade receivables of the Parent Company, as noted above.
As a result, the provision for bad debts in the Statement of Income of the Parent Company for the year ended on
December 31st, 2021 are reduced (income) by €35.1 mil.
Finally, on March 19, 2021 the Parent Company signed a loan agreement with the 100% subsidiary Energy Deliver
Solutions (AD) JSK Skopje amounting to € 3.7 million, with an interest rate of 3.8% and an expiration date of June
30, 2021, which was obtained by the subsidiary on the same date. On August 12, 2021, the share capital of the
subsidiary was increased by offsetting the above obligation.
The subsidiaries of the Group is as follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
221
17.INVESTMENTS IN SUBSIDIARIES (CONTINUED)
Ownership Interest
Country and
Year
Subsidiaries
31.12.2021
31.12.2020
of Incorporation
Principal Activities
PPC Renewables S.A.
100%
100%
Greece, 1998
RES
HEDNO S.A.
100%
100%
Greece, 1999
HEDN
Arkadikos Ilios 1 S.A.
100%
100%
Greece, 2007
RES
Arkadikos Ilios 2 S.A.
100%
100%
Greece, 2007
RES
Iliako Velos 1 S.A.
100%
100%
Greece, 2007
RES
Amalthia Energiaki S.A.
100%
100%
Greece, 2007
RES
SOLARLAB S.A.
100%
100%
Greece, 2007
RES
Iliaka Parka Ditikis Makedonias 1 S.A.
100%
100%
Greece, 2007
RES
Iliaka Parka Ditikis Makedonias 2 S.A.
100%
100%
Greece, 2007
RES
PPC FINANCE PLC
100%
100%
UK, 2009
Financing Services
PPC Bulgaria JSCo
85%
85%
Bulgaria, 2014
Supply of power
PPC Elektrik Tedarik Ve Ticaret A.S.
100%
100%
Turkey, 2014
Supply of power
PHOIBE ENERGIAKI S.A
100%
100%
Greece, 2007
RES
PPC ALBANIA
100%
100%
Albania, 2017
Supply of power
GEOTHERMIKOS STOCHOS SOLE
SHAREHOLDER COMPANY S.A.
100%
100%
Greece, 2017
RES
WINDARROW MOUZAKI ENERGY S.A.
100%
100%
Greece, 2018
RES
EDS AD Skopje
100%
100%
Republic of North
Macedonia, 2012
Supply of power
EDS DOO Belgrade
100%
100%
Serbia, 2016
Supply of power
EDS International SK SRO
100%
100%
Slovakia, 2012
Supply of power
EDS International KS LLC
100%
100%
Kosovo, 2016
Supply of power
LIGNITIKI MELITIS S.A.
100%
100%
Greece, 2018
Generation of power
LIGNITIKI MEGALOPOLIS S.A
100%
100%
Greece, 2018
Generation of power
AMYNTAIO PV PARK ONE SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2018
Generation of power
AMYNTAIO PV PARK TWO SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2021
RES
AMYNTAIO PV PARK THREE SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2021
RES
AMYNTAIO PV PARK FOUR SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2021
RES
AMYNTAIO PV PARK FIVE SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2021
RES
AMYNTAIO PV PARK SIX SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2021
RES
AMYNTAIO PV PARK SEVEN SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2021
RES
AMYNTAIO PV PARK EIGHT SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2021
RES
AMYNTAIO PV PARK NINE SOLE
SHAREHOLDER SA*
100%
100%
Greece, 2021
RES
*On the 2nd of August 2021, the above 100% subsidiaries of PPC Renewables SA were established.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
222
18. INVESTMENTS IN ASSOCIATES
The Group’s and the Parent Company’s associates as of December 31
st
, 2021 and December 31
st
, 2020 are as
follows (equity method):
Group
Company
31.12.2021
31.12.2020
31.12.2021
31.12.2020
PPC Renewables ROKAS S.A.
2,483
2,238
-
-
PPC Renewables TERNA Energiaki S.A.
2,351
2,601
-
-
PPC Renewables NANKO Energy – MYHE Gitani S.A.
2,335
1,888
-
-
PPC Renewables MEK Energiaki S.A.
648
625
-
-
PPC Renewables ELTEV AIFOROS S.A.
2,730
2,468
-
-
PPC Renewables EDF EN GREECE S.A.
7,967
7,256
-
-
Aioliko Parko LOYKO S.A.
4
7
-
-
Aioliko Parko MBAMBO VIGLIES S.A.
3
6
-
-
Aioliko Parko KILIZA S.A.
9
12
-
-
Aioliko Parko LEFKIVARI S.A.
6
9
-
-
Aioliko Parko AGIOS ONOUFRIOS S.A.
11
16
-
-
OROS ENERGIAKI L.T.D.
295
224
-
-
ATTICA GREENESCO S.A
354
-
-
-
VOLTERRA LYKOVOUNI SOLE SHAREHOLDER
COMPANY S.A.
9,618
8,575
-
-
VOLTERRA K-R SOLE SHAREHOLDER COMPANY
S.A.
7,542
8,112
-
-
WASTE CYCLO S.A.
21
26
37
37
GEOTHERMIKOS STOCHOS II
16
-
-
-
BALIAGA IKE
754
-
-
-
TICHIO IKE
792
-
-
-
PIVOT SOLAR
883
-
-
-
38,822
34,063
37
37
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
223
18. INVESTMENTS IN ASSOCIATES (CONTINUED)
The full list of the Group’s and the Parent Company’s associates are presented below:
Ownership Interest
Country and year
Associates
Note
31.12.2021
31.12.2020
of Incorporation
Principal
Activities
PPC Renewables ROKAS S.A.
49.00%
49.00%
Greece, 2000
RES
PPC Renewables TERNA Energiaki S.A.
49.00%
49.00%
Greece, 2000
RES
PPC Renewables NANKO Energy – MYHE Gitani S.A.
49.00%
49.00%
Greece, 2000
RES
PPC Renewables MEK Energiaki S.A.
49.00%
49.00%
Greece, 2001
RES
PPC Renewables ELTEV AIFOROS S.A.
49.00%
49.00%
Greece, 2004
RES
PPC Renewables EDF EN GREECE S.A.
49.00%
49.00%
Greece, 2007
RES
EEN VOIOTIA S.A.
1
46.56%
46.56%
Greece, 2007
RES
Aioliko Parko LOYKO S.A.
49.00%
49.00%
Greece, 2008
RES
Aioliko Parko BAMBO VIGLIES S.A.
49.00%
49.00%
Greece, 2008
RES
Aioliko Parko KILIZA S.A.
49.00%
49.00%
Greece, 2008
RES
Aioliko Parko LEFKIVARI S.A.
49.00%
49.00%
Greece, 2008
RES
Aioliko Parko AGIOS ONOUFRIOS S.A.
49.00%
49.00%
Greece, 2008
RES
Waste Syclo S.A.
49.00%
49.00%
Greece, 2011
Waste
Management
PPC Solar Solutions S.A.
-
49.00%
Greece, 2014
RES
OROS ENERGIAKI S.A.
49.00%
49.00%
Greece, 2017
RES
GREENESCO ENERGIAKI S.A.
2
49.00%
49.00%
Greece, 2017
En. Serv.
VOLTERRA LYKOVOUNI SOLE SHAREHOLDER
COMPANY S.A.
45.00%
45.00%
Greece, 2017
RES
VOLTERRA K-R SOLE SHAREHOLDER COMPANY
S.A.
45.00%
45.00%
Greece, 2014
RES
BALIAGA
3
49.00%
-
Greece, 2020
RES
TEICHIO
3
49.00%
-
Greece, 2020
RES
PIVOT SOLAR
3
49.00%
-
Greece, 2021
RES
GEOTHERMIKOS STOCHOS II
4
49.00%
-
Greece, 2020
RES
METON ENERGIAKI S.A.
5
49.00%
-
Greece, 2021
RES
1. It is consolidated from the associate company PPC Renewables EDF EN GREECE S.A., as it participates by 95% in its share capital.
2. Amalthia Energiaki S.A., PPC Renewable’s subsidiary, acquired 49% of this entity.
3. The participation of PPC Renewables SA in the above companies started to exist from 7/5/2021 under a contract.
4. Geothermikos Stochos II was, until 4/11/2021 was a subsidiary of PPC Renewables SA and on 5/11/2021 51% was sold and remained as a subsidiary of PPC
Renewables SA
5. Establishment of the company METON ENERGIAKI SA on 22/12/2021.
The following tables present PPC’s share (directly or indirectly) of its associates’ financial figures as of 31.12.2021
and 31.12.2020 respectively:
December 31, 2021
Assets
Liabilities
Equity
PPC Renewables ROKAS S.A.
3,298
817
2,482
PPC Renewables TERNA Energiaki S.A.
8,464
6,114
2,351
PPC Renewables NANKO Energy – MYHE Gitani S.A.
2,849
514
2,335
PPC Renewables MEK Energiaki S.A.
1,382
734
648
PPC Renewables ELTEV S.A.- SMIXIOTIKO
3,827
1,098
2,730
PPC Renewables EDF EN GREECE SA
16,736
8,777
7,958
Aioliko Parko LOYKO S.A.
7
3
4
Aioliko Parko MΒAMBO VIGLIES S.A.
9
6
3
Aioliko Parko KILIZA S.A.
20
11
9
Aioliko Parko LEFKIVARI A.E.
8
2
6
Aioliko Parko AGIOS ONOUFRIOS S.A.
14
3
11
Oros Energiaki S.A.
1,023
844
179
GREENESCO Energiaki S.A.
499
151
348
VOLTERRA LYKOVOUNI SOLE SHAREHOLDER
COMPANY S.A.
30,017
21,338
8,678
VOLTERRA K-R SOLE SHAREHOLDER COMPANY
S.A.
12,501
7,533
4,968
BALIAGA
1,895
1,542
353
TEICHIO
1,761
1,388
373
PIVOT SOLAR
3,245
2,846
399
GEOTHERMIKOS STOCHOS II
26
11
15
Total
87,581
53,732
33,849
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
224
18. INVESTMENTS IN ASSOCIATES (CONTINUED)
December 31, 2020
Assets
Liabilities
Equity
PPC Renewables ROKAS S.A.
3,065
827
2,238
PPC Renewables TERNA Energiaki S.A.
9,149
6,548
2,601
PPC Renewables NANKO Energy – MYHE Gitani S.A.
2,834
946
1,888
PPC Renewables MEK Energiaki S.A.
1,716
1,091
625
PPC Renewables ELTEV S.A.- SMIXIOTIKO
3,563
1,096
2,468
PPC Renewables EDF EN GREECE SA
17,567
10,312
7,256
Aioliko Parko LOYKO S.A.
8
2
7
Aioliko Parko MΒAMBO VIGLIES S.A.
12
6
6
Aioliko Parko KILIZA S.A.
23
11
12
Aioliko Parko LEFKIVARI A.E.
10
1
9
Aioliko Parko AGIOS ONOUFRIOS S.A.
19
3
16
Oros Energiaki S.A.
942
815
127
GREENESCO Energiaki S.A.
205
170
(35)
VOLTERRA LYKOVOUNI SOLE SHAREHOLDER
COMPANY S.A.
25,399
17,766
7,633
VOLTERRA K-R SOLE SHAREHOLDER COMPANY
S.A.
12,927
7,401
5,527
Total
77,439
46,995
30,378
The following table presents PPC’s share of its associates’ revenues and results:
December 31, 2021
December 31, 2020
Revenues
Profit/(Loss)
Revenues
Profit/(Loss)
PPC Renewables ROKAS S.A.
853
519
718
503
PPC Renewables TERNA Energiaki
S.A.
1,073
282
1,093
333
PPC Renewables NANKO Energy –
MYHE Gitani S.A.
460
130
333
37
PPC Renewables MEK Energiaki S.A.
1,087
570
1,113
523
PPC Renewables ELTEV
S.A.SMIXIOTIKO
532
280
295
83
PPC Renewables EDF EN GREECE
S.A
2,557
822
2,563
680
Aioliko Parko LOYKO S.A.
-
(2)
-
(6)
Aioliko Parko MΒAMBO VIGLIES S.A.
-
(2)
-
(7)
Aioliko Parko KILIZA S.A.
-
(3)
-
(7)
Aioliko Parko LEFKIVARI A.E.
-
(2)
-
(8)
Aioliko Parko AGIOS ONOUFRIOS
S.A.
-
(4)
-
(4)
Oros Energiaki S.A.
254
69
127
19
GREENESCO Energiaki S.A.
699
56
307
(38)
VOLTERRA LYKOVOUNI SOLE
SHAREHOLDER COMPANY S.A.
3,638
1,049
10
(127)
VOLTERRA K-R SOLE
SHAREHOLDER COMPANY S.A.
1,680
451
1,605
312
BALIAGA
-
(38)
-
-
TEICHIO
-
(34)
-
-
PIVOT SOLAR
-
(70)
-
-
GEOTHERMIKOS STOCHOS II
-
(4)
-
-
Total
12,833
4,069
8,164
2,293
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
225
19. BALANCES AND TRANSACTIONS WITH RELATED PARTIES
PPC balances with its subsidiaries as of December 31
st
, 2021 and December 31
st
, 2020 are as follows:
December 31, 2021
December 31, 2020
Receivables
(Payables)
Receivables
(Payables)
Subsidiaries
PPC Renewables S.A.
1,814
(399)
1.275
-
HEDNO S.A.
221,202
(380,849)
496,022
(681,929)
LIGNITIKI MEGALOPOLIS S.A.
25,885
(684)
51,957
(709)
LIGNITIKI MELITIS S.A.
20,999
30,002
-
ILIAKA PARKA ENA S.A
13
-
-
-
ILIAKA PARKA DIO S.A
4
-
-
-
ILIAKO VELOS ENA S.A
143
-
-
-
ARKADIKOS ILIOS ENA S.A
11
-
-
-
ARKADIKOS ILIOS DIO S.A
3
-
-
-
AMYNTAIO PV PARK ENA S.A
2
-
-
-
AMYNTAIO PV PARK DIO S.A
2
-
-
-
AMYNTAIO PV PARK TRIA S.A
2
-
-
-
AMYNTAIO PV PARK TESSERA S.A
2
-
-
-
AMYNTAIO PV PARK PENTE S.A
2
-
-
-
AMYNTAIO PV PARK EKSI S.A
2
-
-
-
AMYNTAIO PV PARK EPTA S.A
2
-
-
-
AMYNTAIO PV PARK OKTO S.A
2
-
-
-
AMYNTAIO PV PARK ENNEA S.A
2
-
-
-
PPC Finance Plc.
-
(71)
-
(37)
PPC Elektrik
110
-
649
-
PPC Bulgaria JSCO
9
(374)
-
(1.537)
PPC Albania
40
-
-
-
EDS AD Skopje
20,026
-
395
(142)
Total
290,277
(382,377)
580,300
(684,354)
The company has an additional claim from the subsidiary HEDNO SA amounting to € 43.4 million due to repayment
of loans on behalf of the subsidiary, which were contributed to it due to the spin-off of the Distribution Network to
HEDNO SA.
Within the first half of 2021, a dividend of € 6.7 million was approved by the subsidiary HEDNO SA. from profits for
the year ended December 31, 2020, which was paid to the Parent Company on September 6, 2021. Respectively,
within the first half of 2020 the Parent Company received a dividend of € 23.0 million from the subsidiary HEDNO
SA from Profits for the year ended December 31, 2019.
The above mentioned balances with the subsidiary PPC Finance Plc relate to its management expenses, which are
ultimately borne by the Parent Company.
On December 31, 2021, the Parent Company recognized a provision of expected credit loss on receivables and
other accrued income for the subsidiary "Lignitiki Megalopolis SA". and "Lignitiki Melitis SA". amounting to € 25.2
million (31.12.2020: € 51.2 million) and € 21 million (31.12.2020: € 30.0 million) respectively.
On March 19, 2021, the Parent Company signed a loan agreement with the 100% subsidiary Energy Deliver
Solutions (AD) JSK Skopje amounting to € 3.7 million, with an interest rate of 3.8% and an expiration date of June
30, 2021, which was drawn by the subsidiary on the same date. On August 3, 2021, this loan obligation to the
Parent Company was converted into share capital of the subsidiary.
On December 24, 2021, EDS received a temporary cash facility of € 4.8 million from the Parent Company, which
was returned on February 23, 2022.
The Transactions of the Parent Company with subsidiaries for the year ended December 31, 2021 and December
31, 2020 are as follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
226
19.BALANCES AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
December 31, 2021
December 31, 2020
Invoiced to
Invoiced from
Invoiced to
Invoiced from
Subsidiaries
PPC Renewables S.A.
2,998
(380)
2,313
-
HEDNO S.A.
1,567,808
(1,653,766)
1,673,252
(1,791,851)
LIGNITIKI MEGALOPOLIS S.A.
98,775
(928)
47,909
(993)
LIGNITIKI MELITIS S.A.
42,176
-
28,901
-
ILIAKA PARKA ENA S.A
49
-
-
-
ILIAKA PARKA DIO S.A
47
-
-
-
ILIAKO VELOS ENA S.A
138
-
-
-
ARKADIKOS ILIOS ENA S.A
11
-
-
-
ARKADIKOS ILIOS DIO S.A
3
-
-
-
AMYNTAIO PV PARK ENA S.A
2
-
-
-
AMYNTAIO PV PARK DIO S.A
2
-
-
-
AMYNTAIO PV PARK TRIA S.A
2
-
-
-
AMYNTAIO PV PARK TESSERA
S.A
2
-
-
-
AMYNTAIO PV PARK PENTE S.A
2
-
-
-
AMYNTAIO PV PARK EKSI S.A
2
-
-
-
AMYNTAIO PV PARK EPTA S.A
2
-
-
-
AMYNTAIO PV PARK OKTO S.A
2
-
-
-
AMYNTAIO PV PARK ENNEA
S.A
2
-
-
-
PPC Finance Plc.
-
(62)
-
(38)
PPC Elektrik
8
(3,097)
289
(6,333)
PPC Bulgaria JSCO
115
(19,262)
-
(34,056)
PPC Albania
-
-
-
-
EDS AD Skopje
12,751
(350)
76
(547)
Total
1,724,897
1,677,845
1,752,740
(1,833,818)
Guarantee in favour of the subsidiaries
As of December 31
st
, 2021, the Parent Company has provided a guarantee to its subsidiary PPC Renewables S.A.
for a total credit line of up to Euro 8 mil., through overdraft facilities, out of which PPC Renewables S.A. has used
an amount of Euro 418 thousands relating to letters of guarantee.
As of December 31
st
, 2021, the Parent Company has provided a guarantee to its subsidiary Energy Delivery
Solutions AD (EDS) of Euro 14.1 mil., for loans concerning working capital needs. EDS Group drew an amount of
Euro 10.7 mil.
On February 21, 2022, bank deposits of the Parent Company were pledged on behalf of the loan of the subsidiary
EDS.
As at 31.12.2021 the Parent Company provided a corporate guarantee to EDS for the electricity supplier Energy
Financing Team AG - St Gallen amounting of up to € 3.5 million and for the electricity supplier Alpiq Energija
amounting of up to € 1.5 million
In addition, on 31.12.2021 the Parent Company provided a corporate guarantee to PPC Bulgaria for the suppliers
of Alpiq Energy and CEZ of up to € 2.2 million and up to € 371 thousands,respectively.
Significant Transactions and balances with other companies in which the Greek State participates
The following table presents the transactions and balances with the companies Hellenic Petroleum ("ELPE") and
Public Gas Company ("DEPA") which are suppliers of liquid fuels and natural gas, respectively, and in which the
Greek State participates. In addition, the transactions and the rest with DAPEEP SA are presented. EXE SA,
ENEXCLEAR A.E., IPTO SA and LARCO GMME.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
227
19.BALANCES AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
1.1.2021– 31.12.2021
1.1.2020 – 31.12.2020
Invoiced to
Invoiced from
Invoiced to
Invoiced from
ELPE
25,572
(98,978)
40,832
(80,213)
DEPA
61
(672,967)
357
(219,790)
DAPEEP S.A.
254,107
(359,949)
242,434
(550,891)
HEnEx S.A.
-
(3,384)
589,785
(1,230,316)
IPTO S.A
43,624
(128,795)
196,593
(399,050)
ENEX CLEAR S.A.
3,179,247
(4,610,117)
348,398
(435,712)
LARCO S.A.
26,951
-
33,833
(3,146)
December 31, 2021
December 31, 2020
Receivables
(Payables)
Receivables
(Payables)
ELPE
-
(18,064)
23,382
(21,499)
DEPA
-
(91,447)
-
(30,108)
DAPEEP S.A.
31,704
(68,889)
111,873
(430,562)
HEnEx S.A.
-
(8)
5
(8)
IPTO S.A.
4,754
-
154,375
(269,000)
ENEXCLEAR S.A.
34,111
(40,178)
8,552
(9,594)
LARCO S.A.
369,093
-
362,986
-
PPC’s total receivables from LARCO S.A., relating to electricity bills, are fully covered by a provision.
In addition to the above mentioned, PPC enters into commercial transactions with many state-owned entities, both
profit and non for profit, within its normal course of business (sale of electricity, services received, etc.). All
transactions with state-owned entities are performed at arm’s length terms and are not disclosed, with the exception
of transactions that the Group and the Parent Company enter into with the Hellenic Corporation of Assets and
Participations S.A. (HCAP S.A.) and the companies in which HCAP S.A. participates.The balances and transactions
for the years 2021-2020 with HCAP S.A. and the companies, in which HCAP S.A. participates, are presented
below:
GROUP
PARENT COMPANY
December 31, 2021
December 31, 2021
Receivables
(Payables)
Receivables
(Payables)
ΗCAP S.A
-
(1)
-
(1)
ATHENS INTERNATIONAL AIRPORT S.A.
632
(12)
591
(12)
ELTA S.A.
1,486
(6,888)
-
(6,809)
ELTA COURIER S.A.
1
(98)
-
(72)
EYDAP S.A.
5,756
(30)
5,756
(19)
ETVA INDUSTRIAL PARKS S.A.
232
(21)
232
(16)
THESSALONIKI INTERNATIONAL FAIR S.A.
138
-
138
-
ODIKES SYNGKOINONIES S.A.
11,616
-
11,616
-
PUBLIC PROPERTIES COMPANY S.A.
5,207
-
5,207
-
URBAN RAIL TRANSPORT S.A.
34,963
-
34,963
-
C.M.F.O. S.A.
190
-
190
-
Ο.Α.S.Α. S.A.
6
-
6
-
Ε.Υ.Α.TH. S.A
3,988
(1)
3,987
(1)
GEA OSE S.A
-
(1)
-
(1)
MANAGEMENT INDUSTR.PARK KASTORIA
-
(1)
-
(1)
AEDIK
1
-
1
-
MARINA ZEAS
1
-
1
-
HELLENIC SALTWORKS S.A.
-
(11)
-
(11)
TOTAL
64,217
(7,064)
62,688
(6,943)
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
228
19.BALANCES AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
GROUP
PARENT COMPANY
December 31, 2020
December 31, 2020
Receivables
(Payables)
Receivables
(Payables)
ATHENS INTERNATIONAL AIRPORT S.A.
976
(22)
951
(22)
ELTA S.A.
5,004
(3,829)
-
(3,533)
ELTA COURIER S.A.
1
(91)
-
(52)
EYDAP S.A.
3,337
(42)
3,337
(2)
ETVA INDUSTRIAL PARKS S.A.
198
(24)
198
(19)
THESSALONIKI INTERNATIONAL FAIR S.A.
7
-
7
-
ODIKES SYNGKOINONIES S.A.
6,546
(2)
6,546
-
PUBLIC PROPERTIES COMPANY S.A.
4,758
-
4,758
-
URBAN RAIL TRANSPORT S.A.
42,025
-
42,025
-
C.M.F.O. S.A.
10
-
10
-
Ο.Α.S.Α. S.A.
1
-
1
-
Ε.Υ.Α.TH. S.A
2,193
-
2,192
-
MANAGEMENT INDUSTR.PARK KASTORIA
1
-
1
-
AEDIK
2
-
2
-
EYDAP NISON
5
-
5
-
MARINA ZEAS
1
-
1
-
HELLENIC SALTWORKS S.A.
2
-
2
-
TOTAL
65,067
(4,010)
60,036
(3,628)
The transactions made by the Group and the Parent company with HCAP S.A.and the companies in which
participates for the years ended December 31
st
2021 and December 31
st
2020 are as follows:
GROUP
PARENT COMPANY
1.1.2021 – 31.12.2021
1.1.2021 – 31.12.2021
Invoiced to
Invoiced
from
Invoiced to
Invoiced
from
HCAP S.A.
20
-
20
-
ATHENS INTERNATIONAL AIRPORT S.A.
4,494
(102)
4,258
(102)
ELTA S.A.
17,256
(17,207)
4
(12,588)
ELTA COURIER S.A.
7
(236)
7
(181)
EYDAP S.A.
20,999
(163)
20,886
(127)
ETVA INDUSTRIAL PARKS S.A.
1,186
(44)
1,185
(38)
THESSALONIKI INTERNATIONAL FAIR S.A.
902
(71)
902
(70)
ODIKES SYNGKOINONIES S.A.
3,536
(8)
3,536
-
PUBLIC PROPERTIES COMPANY S.A.
1,783
(28)
1,704
(2)
URBAN RAIL TRANSPORT S.A.
22,328
(1)
22,328
-
C.M.F.O. S.A.
1,272
-
1,272
-
Ο.Α.S.Α. S.A.
49
-
49
-
Ε.Υ.Α.TH. S.A.
14,220
(7)
14,214
(1)
HELLENIC SALTWORKS S.A.
263
-
263
-
MANAGEMENT OF INDUSTRIAL PARK OF KASTORIA
4
-
4
-
GAIA- OSE S.A.
16
-
16
-
A.E.DI.K
17
-
17
-
TOTAL
88,352
(17,867)
70,665
(13,109)
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
229
19.BALANCES AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
GROUP
PARENT COMPANY
1.1.2020 – 31.12.2020
1.1.2020 – 31.12.2020
Invoiced to
Invoiced
from
Invoiced
to
Invoiced
from
HCAP S.A.
16
-
16
-
ATHENS INTERNATIONAL AIRPORT S.A.
4,311
(113)
4,095
(113)
ELTA S.A.
18,068
(20,114)
23
(15,030)
ELTA COURIER S.A.
7
(181)
6
(90)
EYDAP S.A.
17,272
(167)
17,157
(126)
ETVA INDUSTRIAL PARKS S.A.
941
(34)
940
(31)
THESSALONIKI INTERNATIONAL FAIR S.A.
582
(22)
582
(20)
ODIKES SYNGKOINONIES S.A.
2,861
(14)
2,861
-
PUBLIC PROPERTIES COMPANY S.A.
1,687
(1)
1,687
(1)
URBAN RAIL TRANSPORT S.A.
17,501
(1)
17,501
-
C.M.F.O. S.A.
1,038
-
1,038
-
Ο.Α.S.Α. S.A.
36
-
36
-
CENTRAL MARKET OF THESSALONIKI S.A.
91
-
91
-
Ε.Υ.Α.TH. S.A.
11,681
(4)
11,666
-
HELLENIC SALTWORKS S.A.
217
-
217
-
MANAGEMENT OF INDUSTRIAL PARK OF KASTORIA
6
-
6
-
GAIA- OSE S.A.
6
-
6
-
A.E.DI.K
17
-
17
-
SOCIAL FEEDING PROGRAM
-
(3)
-
(3)
TOTAL
76,338
(20,654)
57,945
(15,414)
Management remuneration
Management Members remuneration (Board of Directors and General Managers) for the year ended December
31
st
, 2021 and December 31
st
, 2020 is as follows:
GROUP
COMPANY
2021
2020
2021
2020
Remuneration of the Board of Directors’
members
- Remuneration of executive members
1,254
821
677
438
- Remuneration of non-executive
members
326
294
-
-
- Compensation / Extraordinary fees and
other benefits
375
280
211
155
- Employer’s Social Contributions
238
249
83
80
2,193
1,644
971
673
Remuneration of the Deputy Chief
Executive Officers and General Managers
- Regular remuneration
2,175
1,375
1,468
1,049
- Employer’s Social Contributions
346
296
254
196
-Compensation / Extraordinary fees
1,001
141
573
-
3,522
1,812
2,295
1,245
Total
5,715
3,456
3,266
1,918
Remuneration to members of the Board of Directors does not include standard salaries and employer’s social
contribution, relating to the representatives of employees that participate in the Parent Company’s Board of
Directors. It also does not include the benefit of the electricity supply based on the PPC personnel tariff to the
executive members of the Board of Directors, the Deputy Chief Executive Officers and the General Managers.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
230
19.BALANCES AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
The remuneration of the members of the Board of Directors and the General Managers of December 31, 2021
includes the additional incentive for 2020 and 2021 amounting to € 1 million and € 2.7 million respectively based on
the new remuneration policy approved by the Extraordinary General Meeting of shareholders on June 4, 2021. It
was also approved to provide additional incentive in the form of equity settled stock awards. As to date the key
Efficiency Ratios for this benefit have not been defined, it is not possible at present to determine the fair value of
the Free Sharing Rights. The accounting principle which is endorsed by the Group and the Parent Company is
presented in note 4.2.
20. INVENTORIES
Group
Company
2021
2020
2021
2020
Lignite
35,786
59,364
24,232
48,454
Liquid fuel
218,844
190,030
215,994
187,089
Materials and consumables
785,322
785,249
536,754
542,206
Purchased materials in transit
7,441
7,439
7,333
7,331
1,047,393
1,042,082
784,313
785,080
Provision for impairment of inventories
(437,491)
(411,718)
(354,177)
(329,906)
Total
609,902
630,364
430,136
455,174
Within 2021 the Group and the Parent Company made additional provision of slowly moving materials and spare
parts amounting € 14,787 and € 13,607 respectively (2020: € 50,030 and € 26,149 respectively).
The Parent Company recorded on December 31, 2021 an additional impairment provision of € 10,664 (2020: €
36,306) on the value of specific used spare parts of the Gas Units as their book value was higher than their net
realizable value.
Due to the accelaration of the conversion of the new unit under construction “Ptolemaida 5” from Lignite to Natural
Gas Unit in year 2025, the mine of Ptolemaida that would supply the new Unit with lignite, will be ceased at the end
of 2024, instead of year 2028 that was planned as of 31.12.2019. Following this change, an additional impairment
provision was establisehd of Euro 7,048 as those inventories located in the warehouse of the mine, are not expected
to be used in the production procedure.
The inventories of the Group and the Parent Company are held free of encumbrance.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
231
21. TRADE RECEIVABLES, NET
Group
Company
2021
2020
2021
2020
High voltage
580,379
630,869
585,147
624,022
Medium and Low voltage
2,599,854
2,479,965
2,592,335
2,456,427
Customers’ contributions
2,741
2,765
2,741
2,765
Other energy suppliers
339,920
241,695
-
-
Natural gas receivables
220
169
220
169
3,523,114
3,355,463
3,180,443
3,083,383
Provision for expected credit losses
High voltage
(518,146)
(527,498)
(518,146)
(527,498)
Provision for expected credit losses
Medium and Low voltage
(1,786,388)
(2,001,266)
(1,786,388)
(2,001,266)
Provision for expected credit losses
Other energy suppliers
(117,955)
(118,020)
-
-
(2,422,489)
(2,646,784)
(2,304,534)
(2,528,764)
Total
1,100,625
708,679
875,909
554,619
The provision for expected credit losses is stated as follows:
Group
Company
2021
2020
2021
2020
Balance, as at January 1
2,646,784
2,654,925
2,528,764
2,536,927
- (Decrease) in provision
(224,295)
(8,141)
(224,230)
(8,163)
Balance, as at December 31
2,422,489
2,646,784
2,304,534
2,528,764
In December 2021, the Parent Company proceeded to write offs of overdue trade receivables, derived from
electricity sales to Low Voltage customers, amounting to Euro 49,870 (31.12.2020 : Euro 71,521) for which an equal
expected credit loss provision was recorded in previous years.
High voltage customer balances relate to (a) receivables from sales of energy to 57 companies with 90 installations
(power supplies), including large industrial companies, which are invoiced at the end of each calendar month, based
on individual agreements and actual monthly metering that is sent from IPTO and (b) receivables from exports to
customers abroad.
Medium voltage customers are mainly industrial and commercial companies. Billing is made on a monthly basis
and it is based on actual meter readings send by HEDNO. Low voltage customers are mainly residential and small
commercial companies.
The majority of low voltage customers are billed every four months based on actual meter readings, while interim
bills are issued every two months based mainly on the energy consumed during the corresponding prior period.
There are different types of tariffs for both Medium and Low Voltage customers based on different types of energy
use (commercial, residential, etc).
The provision for expected credit losses for the high voltage customers is established by making a personalized
assessment of the expected credit loss per customer.
For the determination of expected credit losses regarding the receivables from Medium and Low voltage customers,
the Group and the Parent Company use credit loss provision tables based on the ageing of the balances and the
historical data of the Group and the Parent Company for credit losses, adjusted for future factors with respect to
debtors and the economic environment.
As at 31 December 2021 and 31 December 2020, the maturity of the invoiced commercial receivables and the
expected credit loss on them is as follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
232
21.TRADE RECEIVABLES, NET (CONTINUED)
Ageing analysis of the trade receivables balances (Group)
31.12.2021
Non past due
balance
<30 days
30 – 60
days
60 – 90
days
90 – 180
days
180 – 365
days
>365 days
Total
Expected
credit loss
6.26%
9.21%
20.26%
21.02%
37.07%
56.45%
94.06%
68.76%
Total
receivables
462,748
178,102
131,412
78,406
191,368
188,003
2,293,074
3,523,114
Expected
credit loss
28,964
16,407
26,618
16,483
70,931
106,132
2,156,954
2,422,489
31.12.2020
Non past
due
balance
<30 days
30 – 60
days
60 – 90
days
90 – 180
days
180 –
365 days
>365 days
Total
Expected
credit loss
7.47%
16.54%
28.27%
37.07%
50.60%
81.33%
99.04%
79.90%
Total
receivables
328,596
129,852
117,242
80,742
181,015
264,123
2,253,893
3,355,463
Expected
credit loss
24,545
21,475
33,150
29,930
91,602
214,813
2,231,269
2,646,784
Ageing analysis of the trade receivables balances (Parent Company)
31.12.2021
Non past
due balance
< 30 days
30 – 60
days
60 – 90 days
90 – 180
days
180- 365
days
>365 days
Total
Expected
credit loss
7.21%
10.99%
25.58%
32.28%
52.76%
62.90%
93.62%
72.46%
Total
receivables
401,751
149,355
104,058
51,059
134,440
168,736
2,171,044
3,180,443
Expected
credit loss
28,964
16,407
26,618
16,483
70,931
106,132
2,038,999
2,304,534
31.12.2020
Non past due
balance
<30 days
30 – 60 days
60 – 90 days
90 – 180
days
180 – 365
days
>365 days
Total
Expected
credit loss
9.39%
19.35%
31.23%
42.87%
58.48%
81.73%
99.89%
82.01%
Total
receivables
261,445
110,957
106,147
69,816
156,602
262,840
2,115,576
3,083,383
Expected
credit loss
24,545
21,475
33,150
29,930
91,586
214,813
2,113,265
2,528,764
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
233
22. CONTRACT ASSETS
Group
Company
2021
2020
2021
2020
Unbilled revenue
768,511
420,576
768,511
420,576
Provision for expected credit losses
(108,166)
(48,101)
(108,166)
(48,101)
Total
660,345
372,475
660,345
372,475
Revenues from the supply of power to High, Medium and Low voltage customers during the interval from the last
measurement or billing until the reporting date are accounted for as energy consumed but not yet billed (unbilled
revenue). At each reporting date and taking into account that the billing which is based on measurement data of
the last month of the period, is carried out in the first days of the next month with respect to High and Medium
Voltage customers, the total value of energy of that month is recognized as accrued income for the period, which
is reversed in the following month, after billing has already been accounted for.
Additionally, at each reporting date, the Parent Company estimates the unbilled revenue from Low Voltage
customers, having developed a specific estimation method. The resulting amounts are accounted for as accrued
income for the periods ending until the reporting date and reversed in the next month. All accrued income from the
energy consumed but not yet billed is impaired at each reporting date with provision for expected credit losses. This
provision is calculated on the basis of the possibility of default for non-past due trade receivables, arising from the
expected credit loss provision table.
On December 31, 2021 the consumed and un-billed energy is increased by € 347,935 compared to December 31,
2020 due to the un-billed supply charge adjustment clause that was incorporated in the clearing energy bills from
August 5, 2021 (Note 3- Commercial policy).
The analysis of the provision for expected credit losses on the value of the unbilled revenue is as follows:
Group
Company
2021
2020
2021
2020
Balance as at January 1
48,101
54,830
48,101
54,830
- Increase/(Decrease) in provision
60,065
(6,729)
60,065
(6,729)
Balance as at December 31
108,166
48,101
108,166
48,101
23. OTHER RECEIVABLES, NET
Group
Company
2021
2020
2021
2020
Value Added Tax
57,187
70,908
49,841
66,452
Assessed taxes and penalties
2,125
34,239
1,371
33,664
Social security funds
- in dispute
18,059
18,059
18,059
18,059
- current
4,446
3,195
4,426
3,195
State participation in employees’ social
security contributions
1,546
1,546
1,546
1,546
Pensioners’ advances, in dispute
5,262
5,262
5,262
5,262
Loans to employees
5,788
5,955
3,215
3,273
Receivables from contractors
5,144
4,047
5,116
4,048
Receivables from PPCR
-
-
1,007
1,121
Receivables from Lignite subsidiaries
(Note 19)
-
-
31,409
79,938
Advances and prepayments
40,075
25,580
33,845
20,383
Accrued income
140,121
107,114
67,302
25,156
Receivables from third parties from
hedge accounting transactions through
derivative financial instruments
51,728
-
51,728
-
Receivables of subsidiaries from third
parties
21,817
49,113
-
-
Electricity and CO2 insurance Margin
907,700
103,732
907,700
103,732
Other
134,033
104,554
129,669
98,489
1,395,031
533,304
1,311,496
464,318
Provision for expected credit losses
(152,491)
(139,588)
(191,508)
(249,595)
Total
1,242,540
393,716
1,119,988
214,723
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
234
23. OTHER RECEIVABLES, NET (CONTINUED)
VAT refunds
For the year 2021, due to the VAT credit balances that came mainly from outflows subject to a rate lower than that
of input tax, VAT refund requests were submitted to the Athens Tax Office of a total amount of €160 million and that
refunded without audit to the Company.
During the year 2020, requests for refunds of € 115 million were submitted due to VAT credit balances based on
the periodic declarations of 2020. These amounts came mainly from outflows subject to a rate lower than that of
input tax. Of the requested amounts, € 85 million were returned as such by the Athens Tax Office within 2020 and
for the remaining € 30 million, their payment has been approved in the near future.
Electricity and CO2 insurance margin
As at December 31, 2021 the other receivables of the Group and the Parent Company appear increased by € 848.8
million and € 905.3 million respectively compared to 31 December 2020 mainly due to the increase by € 803.9
million of receivables Insurance Margin for the participation of the Group and the Parent Company in the Electricity
Market and in the Futures Market due to the participation on future contracts for the purchases of CO2 emission
rights and electricity.
Assesed taxes and penalties:
An amount of Euro 33,475 on December 2020 corresponds to the already paid special consumption tax with
recourse
In the framework of an audit conducted by Audit Department of the Customs House for the period May 2010 to
September 2012, an Imputation Act (Nr. 80/14/07.07.2015) of the Head of the 4
th
Customs Supervision Assembly
of Piraeus was issued, which charged the Company with special consumption tax amounting to Euro 9,790 which
corresponds to self-consumption quantities for the audited period to Electricity Transmission System due to non-
compliance with the terms and formalities mentioned in the Ministerial Decision (DEFK 5025777 EΞ
2010/17.6.2010) on the matter. The Company paid the charged amounts imposed and at the same time filled an
appeal on the aforementioned act before Piraeus Court of Appeals and since then compliant with the instructions
of Ministry of Finance , PPC includes the self-consumption quantities of electricity in the Special Consumption Tax
Statements which submits and pays with recourse the relevant tax on the monthly basis, while simultaneously files
a corresponding lawsuit. A total amount of Euro 33,475 on December 31, 2020 corresponded to a paid special
consumption tax with recourse. On December 31, 2021, the Parent Company written off the provision for special
consumption tax as it de-recognized the corresponding receivables for Special Consumption Tax (SCT) as of
December 31, 2020, as the criteria for the recognition of this asset under IFRS were not met.
Within 2021, the Parent Company includes the self-consumed quantities of electricity in the SCT Declarations that
it submited and paid the charged amounts imposed and at the same time filled an appeal on the aforementioned
act, on a monthly basis for the corresponding tax.
Social Security Funds in Dispute
The amount relates to social security contributions and deductions (during years 1983-1993) for employees who
have worked with other employers before joining PPC. As PPC undertook the obligation to cover the whole amount
of their pensions and other related benefits, part of their contributions to other social security funds mainly IKA (SII,
i.e. Social Insurance Institute which was the major Greek social security fund) have been claimed by PPC.
Since the claim was not accepted by IKA, PPC resorted to the courts. Following an adverse court decision, PPC
together with PPC – PIO (currently EFKA, Greek Single Social Security Institution) appealed against the said
decision. The court rejected PPC’s appeal, whereas PPC – PIO’s (currently EFKA, Greek Single Social Security
Institution) appeal against IKA is still pending. For the abovementioned amount, an equal provision has been
establishedin the financial statements.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
235
23. OTHER RECEIVABLES, NET (CONTINUED)
Advances to Pensioners in Dispute
The amount of Euro 5,262 represents an advance payment made in 1993 to pensioners. An equal provision has
been established of this amount.
State Participation in Employees’ Social Security Contributions:
The amount represents the State’s participation to the social security contributions of employees who started
working after January 1
st
, 1993. For the above mentioned amount, an equal provision has been established.
The analysis of the provision for expected credit losses of other receivables is as follows:
Group
Company
2021
2020
2021
2020
Balance, January 1
139,588
135,803
249,595
272,767
- Provision charge
47,580
7,133
88,038
87,795
- Reversal of unused provision
(1,234)
(3,348)
(112,682)
(110,967)
-Special contribution tax
provision write-off
(33,443)
-
(33,443)
-
Balance, December 31
152,491
139,588
191,508
249,595
The above provision also includes the provision of expected credit loss of receivables from lignite subsidiaries. As
of December 31, 2020, the Parent Company had recognized a provision of expected credit loss on the receivables
of lignite subsidiaries totaling € 81.2 million that were capitalized in 2021. Subsequently, the provision of expected
credit loss was reversed and an equal provision for impairment of shareholding in subsidiaries was formed within
2021. In addition, for the balances of 31 December 2021 of the net receivables from the lignite subsidiaries, a
provision of expected expected credit loss for the amount of € 46.1 million has been established. Additional
information is provided in Note 17.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
236
24. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Group
Company
2021
2020
2021
2020
-National Bank of Greece
20
15
20
15
- Evetam
250
250
250
250
- Euroasia Interconnector
51
51
51
51
- Attica Bank
6
550
4
330
Total
327
866
325
646
On December 31
st
, 2021 the total change in the fair value of the above financial assets was recorded in "Other
reserves" in Equity. (Note 28)
25. CASH AND CASH EQUIVALENTS
Group
Company
2021
2020
2021
2020
Cash in hand
392
378
309
353
Cash at banks
2,650,525
561,817
2,353,895
388,587
Time deposits
181,434
253,445
158,000
238,000
Total
2,832,351
815,640
2,512,204
626,940
Interest earned on cash at banks and time deposits are accounted for on an accrual basis and amounted to Euro
709 (2020: Euro 2,724) for the Group and to Euro 121 (2020: Euro 1,407) for the Parent Company and are included
in financial income in the accompanying statements of income (Note 12). All cash and cash equivalents are
denominated in Euro.
Additionally, on December 31
st
, 2021 the Group and the Parent Company kept in a pledged deposit account an
amount of Euro 65,856 and Euro 48,278 respectively (2020: Euro 58,702 Group and Euro 52,803 Parent Company).
The amounts involved relate to (a) the pledged account kept in NBG in favor of the European Investment Bank
(EIB) in order to cover existing financing schemes and (b) the pledged account for a pledged deposit in favor of the
Consortium of Banks for financing the project of PTOLEMAIDA V. Out of the above amount Euro 12,533 (Group
and Parent Company) is not related to pledged deposits of loan agreements.
26. SHARE CAPITAL AND SHARE PREMIUM
Under Law 2773/1999 and P.D. 333/2000, PPC was transformed, into a société anonyme.
Pursuant to the decision of October 19, 2021 of the Extraordinary General Meeting of the shareholders of the Parent
Company and of the decision of October 29, 2021 of its Board of Directors, PPC SA proceeded to Share Capital
increase through a public offering in Greece, to private investors and outside Greece, to institutional and other
eligible investors, through a process of private placement book building.
On November 11, 2021, the share capital increase was completed by cash payment and a chartered accountant
certified the share capital increase by € 372.0 million and the share premium increase by € 978.0 million in cash,
with total amount of € 1,350 billion, with the issuance of 150,000,000 new common shares with a nominal value of
€ 2.48 each and with share premium of € 6.52 each.
Therefore, on December 31, 2021 the Share Capital of PPC SA. amounted to € 947,360 (31.12.2020: € 575,360)
consisting of 382,000,000 (31.12.2020: 232,000,000) common shares with a nominal value of € 2.48 each, while
the Share Premium amounted to € 1,018.7 million (31.12.2020: € 106.7 million) minus expenses for the share
capital increase of € 65.9 million.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
237
26.SHARE CAPITAL AND SHARE PREMIUM (CONTINUED)
The Greek State reduced its participation from 51.12% as of December 31, 2020 to 34.12% as of December 31,
2021 while remains the largest shareholder of PPC. More specifically, the Hellenic Corporation of Assets and
Participations (HCAP) as a result of the share capital increase, directly holds 90,909,860 common shares or 23.8%
of PPC shares (31.12.2020: number of shares 79.165.114 or 34.12%) and indirectly through the Hellenic Republic
Asset Development Fund SA " HRADF " (wholly owned subsidiary of HCAP) 39,440,000 common shares or 10.32%
of PPC shares (31.12.2020: number of shares 39,440,000 or 17%). Therefore, the total participation of HCAP in
the voting rights of PPC SA amounted to 34.12%, from 51.12%.
The total funds raised through the Share Capital Increase amounted to €1.35 bil. and, after deduction of the
expenses of €€ 65.9 mil., will be used, in accordance with section 16.2 ''Reasons for the Share Capital Increase
and use of proceeds'' of the Company's Prospectus dated 01.11.2021 (the “Prospectus”), by PPC and/or other
Group companies or existing or future joint ventures between 2022 and 2024 as follows:
(a) up to €1.284 bil. of the approximately €3.2 bil. the Company has budgeted for capital expenditures on renewable
energy projects through 2024, including hydroelectric power generation and projects in adjacent markets, aiming to
reach an installed RES capacity of 7.2 GW by 2024; and/or
(b) up to €1.284 bil. of the approximately €1.7 bil. the Company has budgeted for capital expenditures through 2024
on conventional power generation, supply business unit, the construction of a waste-to-energy plant, digitalization,
telecommunications, electric vehicle charge-points; and
(c) to the extent reasonably necessary and only up to amounts that are not material for the Group’s financial
condition, for other general corporate and other investment purposes.
On March 2, 2022, the automatic transfer of all shares in PPC owned by HRADF (corresponding to 39,440,000
shares or 10.32%) to HCAP was completed, pursuant to article 147 of L. 4876/2021.
Following this transfer, the direct participation of HCAP S.A. in PPC amounts to 34.12% with the corresponding
voting rights, while HRADF no longer participates in PPC’s share capital.
27. LEGAL RESERVE
Under Greek corporate law, corporations are required to transfer a minimum of 5% of their annual net profit as
reflected in their financial statements to a legal reserve, until such reserve equals one-third of the paid-in share
capital. This reserve cannot be distributed through the life of the corporation.
28. OTHER RESERVE
Group
Company
2021
2020
2021
2020
Tax free
7,458
7,458
7,458
7,458
Specially taxed reserves
95,597
95,597
95,597
95,597
Actuarial losses of personnel
benefits/Foreign exchange differences
302
(19,831)
(42,818)
(55,433)
Financial assets measured at fair value
through other comprehensive income
(Note 24)
(470)
69
(401)
(82)
Reserve from Hedging activities (Note 43)
203,490
4,312
203,490
4,312
Total
306,377
87,605
263,326
51,852
Cash flow hedging reserves are analysed as follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
238
28. OTHER RESERVE (CONTINUED)
Hedging Reserves 2021
Gas
price
swap
contracts
Gas
Future
Contracts
Electricity
price
swap
contracts
Electricity
Future
Contracts
Total
Effect on:
Balance 31/12/2020
1,066
-
2,585
661
4,312
Gains from valuation of effective
hedging operations
176,582
229,120
48,032
6,074
459,808
Statement of
comprehensive
income
Ineffective cash flow hedge
transferred to Results
-
-
-
-
-
Income statement
(other income /
expenses)
Reclassification of hedging
transactions in the Results
(101,076)
(1,842)
(51,434)
(90,511)
(244,863)
From statement of
comprehensive
income to income
statement(Electricity
purchases, natural
gas purchases)
Tax effect
(16,583)
-
816
-
(15,767)
Statement of
comprehensive
income
Balance 31/12/2021
59,988
227,278
-
(83,776)
203,490
Effect on:
Income Statement 31/12/2021
(101,076)
(1,842)
(51,433)
(90,511)
(244,862)
Statement of comprehensive
income (before tax) 31/12/2021
75,506
227,278
(3,402)
(84,437)
214,945
In addition, an amount of € 4.1 million is included in the reserves from cash flow hedging of electricity futures
contracts and relates to the valuation gain of the electricity purchase contracts resulted from the discontinuation of
the hedging relationship due to the inclusion of new clause based on the market price fluctuations.
Their transfer to the Results of the Group and the Parent Company will take place gradually within 2022 until the
occurence of the hedged item transactions.
29. DIVIDENDS
Pursuant to the provisions of the Code for Societe Anonyme L.4548/18, companies are required to pay dividends
of at least 35% of after-tax profit, after necessary deductions for the formation of the legal reserve, and other credit
accounts in the income statement that do not arise from realized earnings. By decision of the General Meeting
which is obtained with an increased quorum and majority that rate may be reduced, but not below 10%.
The non-distribution of a dividend is possible by decision of the General Meeting of Shareholders, which is obtained
with an increased quorum and a majority of 80% of the capital represented in the meeting. Furthermore, Greek
corporate law (L. 4548/18 art. 159) requires certain conditions to be met for the dividend distribution. Based on
L.4646/2019 which amended the articles 40 and 64 of L.4172/2013, the distributable earnings approved by the
General Meetings are subject to a withholding tax of 5% since 01.01.2019.
In addition, the amount distributed to the shareholders may not exceed the amount of the results of the last year,
added with the profits from previous years that have not been distributed and the reserves for which their distribution
is allowed and approved by the general meeting, and reduced: (a) by the amount of the income statement credits,
which do not constitute realized profits, (b) by the amount of the losses of previous years and (c) by the amounts to
be used to form reserves, in accordance the law and the statute.
Although the year ended December 31, 2021 is profitable for the Parent Company, the Board of Directors will
propose to the General Meeting of the shareholders the non-distribution of dividend. The decision of non-distribution
of dividend will be finalized at the General Meeting of the Shareholders based on the provisions of the Law as stated
above.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
239
30. LONG-TERM BORROWING
During the period 1.1.2021 - 31.12.2021, the Group and the Parent Company proceed with debt repayments of €
1,495.9 million and € 1,453.0 million respectively, including:
a) early repayment of an existing loan of € 37.5 million from the trade receivables securitization amounting to €
150.0 million.
b) early repayment of an existing loan of € 575.0 million from the product of the issue of Bonds with a sustainability
clause, amounting to € 775.0 million maturing in 2026; and
c) early repayment of an existing loan of € 495.0 million from the bond issue with a sustainability clause of € 500.0
million, maturing in 2028.
During the period 1.12.2021–31.12.2021 and 1.1.2022-28.02.2022, the Parent Company proceed with debt
repayment of € 40.4 million and € 31.8 million respectively on behalf of the HEDNO subsidiary until approval of the
new terms of the existing loan agreements that were contributed to the subsidiary due to the spin-off of the
distribution network (Note 5). For these payments, the Parent Company has recognized an equal receivable in its
books from HEDNO, which it is expected to be offset with its obligations.
During the period 1.1.2021-31.12.2021, the Parent Company drawn an amount of € 5.36 million from a Bond Loan
of € 680.0 million to finance part of the construction cost of the new Lignite plant <Ptolemaida V> with a consortium
of foreign banks supported by the German Export Credit Insurance Organization "Euler Hermes".
During the period 1.1.2021 - 31.12.2021, the Parent Company with the issuance of international bonds and the
reduction of existing interest rates secured an interest benefit of € 16.2 million, while proceeded to modification of
loan agreements due to early repayment of existing loans and existing interest rates resulting in a gain of € 11.5
million which is included in "financial income" of the Group and the Parent Company.
Group
Company
31/12/2021
31/12/2020
31/12/2021
31/12/2020
- Banks Loans
1,832,927
2,128,863
372,078
2,043,862
- Bonds Payable
2,671,509
1,982,627
2,647,093
1,971,153
Unamortized portion of loans issuance fees &
Loss from the loan modifications
(88,166)
(84,235)
(88,166)
(84,235)
Transfers to Liabilities Held for Sale (Note 5)
-
-
-
(1,525,062)
Total Long-Term Borrowing
4,416,270
4,027,255
2,931,005
2,405,718
Less current portion:
- Bank Loans
285,909
289,015
139,318
289,015
- Bonds Payable
86,744
274,216
86,754
274,226
Unamortized portion of loans issuance fees &
Loss from the loan modifications
(19,021)
(16,429)
(19,021)
(16,429)
Transfers to Liabilities Held for Sale (Note 5)
-
-
-
(149,697)
Total Short-Term portion of loans and
borrowings
353,632
546,802
207,051
397,115
Total Long-Term portion of loans and
borrowings
4,062 ,638
3,480,453
2,723,954
2,008,603
Short Term Loans
271,337
42,152
260,000
30,000
Loan Total
4,687,607
4,069,407
3,191,005
2,435,718
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
240
30.LONG -TERM BORROWING (CONTINUED)
Below exists a brief description on the new loan agreements / bonds signed during the year 2021 by the Group and
the Parent Company:
Issuance of Sustainability Bonds (SLB "sustainability-linked bonds") expiring in 2026
The Parent Company raised on March 18, 2021 through the issuance of viability bonds with a sustainability clause
an amount of € 650 million, with an interest rate of 3.875% and maturing in 2026, with a issue price of 100%. On
March 24, 2021, through an additional issue, it raised an amount of € 125.0 million, with an interest rate of 3.875%
and maturity in 2026, with an issue price of 100.75% and a yield of 3.672%, which corresponds to a savings of
0.205% compared to the original issue rate. The Bonds were issued in accordance with Article 59, paragraph 2,
and Article 74 of Law 4548/2018, and Article 14 of Law 3156/2003, governed by New York law and traded on the
Dublin Stock Exchange.
The proceeds from the sustainability bonds were used to repay existing borrowing, for general corporate purposes
and to pay the costs and expenses of the issue. Both issues have a sustainability clause according to which in case
of no reduction of CO2 emissions by 40% in December 2022 compared to those of December 2019, the interest
rate will increase from March 30, 2023 by 0.50%.
Issuance of Sustainability Bonds (SLB "sustainability-linked bonds") expiring in 2028
The Parent Company raised on July 21, 2021 through the issuance of viability bonds with a sustainability clause an
amount of € 500.0 million, with an interest rate of 3.375% and maturity in 2028, with a issue price of 100%. The
Bonds were issued in accordance with Section 59 (2), Section 74 of Act 4548/2018, and Section 14 of Section
3156/2003, governed by New York law and traded on the Dublin Stock Exchange. An amount of € 495.0 million
from the income from the viability bonds was used for the partial repayment of an existing bank loan on 30.9.2021,
while an amount of € 5.0 million was used to pay the costs and expenses of the issue. The Bonds have a
sustainability clause according to which in case of failure to achieve a reduction of CO2 emissions by 57% in
December 2023 compared to those of December 2019, the interest rate will increase from 31 July 2024 by 0.50%.
Signing of a Bond Loan Agreement issued by the company SOLAR PARKS OF WESTERN MACEDONIA
ONE SA 100% subsidiary of PPC RENEWABLE
The company SOLAR PARKS OF WESTERN MACEDONIA ONE SA (100% subsidiary of PPC RENEWABLES
SA), signed on April 8, 2021 a loan agreement of € 8.7 million in the form of a Bond Loan for the financing of
development development 15 MW in Ptolemaida in the Kozani Region. This amount is part of the wider financing
agreement for the construction of a portfolio of photovoltaic parks with a total installed capacity of 230 MW in the
same area in which National Bank SA participates. and Eurobank A.E. as bondholders, while the European
Investment Bank has the right to participate in the financing for the entire portfolio of 230MW. In 2021, the Company
raised an amount of € 8.73 million.
Signing of a Bond Loan Agreement issued by the company SOLAR PARKS OF WESTERN MACEDONIA
TWO SA. 100% subsidiary of PPC RENEWABLE
The company SOLAR PARKS OF WESTERN MACEDONIA TWO SA, 100% subsidiary of the company PPC
RENEWABLES SA, signed on 01.07.2021 a loan agreement of € 9.9 million in the form of a Bond Loan for the
financing of development 15 MW in Ptolemaida in the Kozani Region. This amount is part of the wider financing
agreement for the construction of a portfolio of photovoltaic parks with a total installed capacity of 230 MW in the
same area in which National Bank SA participates. and Eurobank A.E. as bondholders, while the European
Investment Bank has the right to participate in the financing for the entire portfolio of 230MW. In 2021, the Company
raised an amount of € 5.79 million.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
241
30.LONG -TERM BORROWING (CONTINUED)
Signing of new loan agreements in the form of revolving credit (RCF)
The Parent Company signed on August 12, 2021 a loan agreement for the issuance of a new Joint Bond Loan
(N.4548 / 2018), amounting to € 300.0 million in the form of revolving credit (RCF), without collateral with floating
interest rate Euribor plus margin between 4.75% -2.50% depending on the ratio Net Lending / Profits before taxes
and depreciation, with Contractor, Initial Organizer, Payment Manager and Initial Bond holder Alpha Bank SA
Eurobank SA also participates in the Loan. as Organizer and Initial Bondholder. The Loan will be used for general
business purposes and will have a duration of 3 years, which can be extended by an additional 2 years.
The Parent Company raised in September 2021, an amount of € 250 million and in October 2021 the remaining
amount of € 50.0 million. In addition, the Parent Company signed and raised in December 2021 an amount of € 300
million from the issuance of a Common Bond Loan of Law 4548/2018 in the form of Revolving Credit (RCF) without
collateral with a floating interest rate Euribor plus a margin between 3.25% - 2.50% depending on the Net Lending
/ Profit before taxes and depreciation ratio, with Ethniki and Piraeus Banks as Initial Bondholders, Coordinators,
Co-Organizers, to cover working capital needs and other business purposes.
These issues include, among other things, a 40% reduction clause of CO2 emissions by December 2022 with a
base year of 2019, in the context of aligning PPC's fiscal policy with its overall strategy for the environment and
mitigating the effects of climate change.
We present a brief description of significant existing loan agreements / long-term borrowing bonds of the Group and
the Parent Company:
Syndicated Unsecured Bond Loan of € 1,085,750,000
On October 5, 2018, an agreement was concluded with the National Bank of Greece SA. (as an initial bondholder,
as a representative of the bondholders and a power of attorney), Eurobank SA, Alpha Bank SA, Piraeus Bank SA
and Attica Bank SA as original bondholders, for refinancing a syndicated bond loan (originally borrowed in 2014)
amounting to € 1,085 million. On January 1, 2021, the margin of this Syndicated Bond Loan decreased from 5.80%
to 5.00% and further decreased to 4.50% on July 1, 2021. On April 7, 2021, the Syndicated Bond Loan in the
amount of € 200.0 million was partially repaid, with the income of the sustainability bond expiring in 2026. As of
September 30, 2021, there was an additional partial repayment of this syndicated bond loan of € 495.0 million with
the maturity of the 2028 sustainability bond. The due balance as of December 31, 2021 amounted to €265.8 million.
European Investment Bank Loans
The Group is a party to certain loan agreements with the European Investment Bank ("EIB"), which have been
provided in the context of developmentof investment projects. EIB loans generally have a maturity of fifteen years
from the date of disbursement. As at 31 December 2021, EIB loans amounted to € 1,597 million out of which €
289.1 million were guaranteed by the Hellenic Republic and € 7.09 million of EIB loans were guaranteed by the
National Bank of Greece. The annual weighted average cost of EIB outstanding loans as at 31 December 2021 for
the Group and the Parent Company was 3.25% and 3.45% respectively. In the context of the spin-off of the branch
of the Distribution Network (Note 5), on November 30, 2021 loans amounting to € 1,256.3 million of PPC were
contributed to HEDNO. The amount of these loans on December 31, 2021 amounts to € 1,215.8 million and is
guaranteed by the Greek State.
On December 22, 2020, PPC drawn € 100 million under a loan agreement with the EIB totaling € 330 million for the
modernization of the Distribution Network in Greece, with a guarantee from the Greek State. On June 22, 2021,
PPC agreed with the EIB that PPC may make a further withdrawal of € 100 million under this financing line.
KFW Syndicated Bond Loan
The Parent Company raised until December 31, 2021 an amount of € 636.2 million from a Bond Loan of € 680.0
million to finance part of the construction cost of the new Lignite plant with a consortium of foreign banks supported
by the German Export Insurance Agency Credits '' Euler Hermes ''.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
242
30.LONG -TERM BORROWING (CONTINUED)
Long-term borrowing represents secured and unsecured liabilities of the Parent Company. Specifically, there are:
• collateral, in the form of pledged deposits, totaling to € 7.09 million (31.12.2020: € 5.9 million)
• first class pledge on account of € 28.6 million regarding the syndicated bond loan of € 739.0 million, for the partial
financing of Unit "Ptolemaida V"
Certain loan agreements of the Group with an outstanding balance of Euro 2,714 million as of December 31, 2021,
include financial covenants, the non-compliance of which may lead to the contract defaulting or, if necessary, a
change in the margin.
For the provision of the guarantee of the Greek State in favor of PPC SA to all loans from the European Investment
Bank, the Parent Company pays a relevant guarantee to the Greek State.
Existing Loans from subsidiaries
The subsidiary PPC Renewables SA signed on December 2017 a loan agreement with the European Investment
Bank for the financing of 18 projects (14 Wind farms and 4 SHPP) amounting to € 85.0 million. The first draw down
of € 34.0 million took place in 2019 and the second of € 51.0 million on 05.06.2020 and as a result the entire
approved loan has been raised. The repayments of the capital are semi-annual starting on 24.04.2023 and will be
finalized by 24.04.2036.
Also, the same subsidiary in September 2018 signed a Joint Property Guaranteed Bond Loan Agreement amounting
to € 17.5 million, covered by the National Bank. The first draw down of € 12.2 million took place in 2019 and the
second of € 2.0 million on 28.02.2020. The repayments of the capital are semi-annual starting on 30.06.2021 and
will be completed by 31.12.2026.
To secure the loan obligations of PPC Renewables SA, an irrevocable notarial letter of attorney has been provided
for the establishment, in the event of a Complaint Event, of a fictitious pledge on the premises and of the mechanical
and other equipment of each project that was funded. In addition, there is a first-class pledge on all claims arising
from the Revenue Contracts for each of the funded projects, a pledge on the Proceeds Account, the Reserve
Accounts on Loan Liabilities (DSRA), of its receivables deriving from the insurance contracts which is obliged to
sign for each of the financed projects.
A further analysis of the long term borrowing of the Group and the Parent Company is presented in the table below:
Group
Company
2021
2020
2021
2020
Bank loans and bonds
- Fixed rate
1,435,000
160,000
1,275,000
160,000
- Floating rate
1,026,104
1,618,704
997,841
1,607,220
European Investment Bank
- Fixed rate
1,597,136
1,797,818
296,288
1,712,818
- Floating rate
-
8,333
-
8,333
Project Financing
- Floating rate
454,252
523,933
454,252
523,933
Total
4,512,492
4,108,788
3,023,381
4,012,304
The total amount of interest on loans (excluding those that were capitalized - Note 15) for the year ended December
31, 2021 is included in the financial expenses, in the income statement.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
243
30.LONG -TERM BORROWING (CONTINUED)
The annual repayment schedule of long-term borrowing after December 31, 2021 is as follows:
Group
Company
2021
2020
2021
2020
Within one year
644,192
605,386
486,072
593,242
In the second year
572,590
899,088
426,822
896,802
Between three and five years
2,327,248
1,664,380
1.732,353
1,642,664
After five years
1,236,786
982,086
638,133
909,597
Total
4,780,736
4,150,940
3,282,380
4,042,305
The above repayment schedule includes an amount of € 18.9 million which concerns a loan with the sole purpose
of using it as a guarantee to cover existing financing and for which the Parent Company maintains an equal deposit
in a restricted deposit account (Note 25).
Credit rating
On 31.12.2021, the credit rating by S&P is set at "B +" with a positive outlook, by Fitch at "BB-" with a stable outlook
and by ICAP at "D".
Compliance with financial ratios
The Group is in compliance with the financial ratios included in its loan agreements on 31.12.2021.
31. POST-RETIREMENT BENEFITS
a) SUPPLY OF ELECTRICITY AT REDUCED TARIFFS
The Group’s employees and pensioners are entitled to the supply of electricity (which the Parent Company provides)
at reduced tariffs. Such reduced tariffs to pensioners are considered to be retirement obligations and are calculated
at the discounted value of the future retirement benefits deemed to have accrued at year-end based on the
employees earning retirement benefit rights steadily throughout the working period. The relevant retirement
obligations are calculated on the basis of financial and actuarial assumptions.
Net costs for the period are included in the payroll cost in the accompanying income statement consisting of the
present value of the benefits earned in the year, interest cost on the benefit obligation, as well as past service cost.
The actuarial gains or losses are now recorded in comprehensive income statement. Retirement benefit obligations
are not funded.
According to Article 11 of Law 4643/2019, from January 1
st
, 2020 the supply of electricity at reduced tariffs to
pensioners of the Group changes. In particular, “A special electricity tariff can be applied to employees and
pensioners of PPC S.A., PPC’s subsidiaries and IPTO S.A., exclusively for the pricing of electricity consumption
where supply charges are applied. In any case, the discount on the charge for electricity consumption resulting from
the application of the above special electricity tariff shall not exceed thirty percent (30%)".
The Parent Company’s Board of Directors, at its meeting on January 21
st
, 2020, set the discount at thirty percent
(30%).
The results of the actuarial study regarding the supply of electricity at reduced tariffs for the fiscal year ended
December 31
st
, 2021 and December 31
st
, 2020 are as follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
244
31.POST-RETIREMENT BENEFITS (CONTINUED)
Group
Company
2021
2020
2021
2020
Changes in the Present Value of the Liability
Liability at the beginning of the year
94,404
150,526
56,713
91,433
Current Service cost
1,093
1,817
599
1,010
Interest cost
468
1,028
281
624
Cost of service during the period
-
-
-
-
Actuarial (gains)/losses
(23,756)
(53,753)
(15,627)
(33,007)
Benefits provided
(4,709)
(5,214)
(2,926)
(3,347)
Liability at the end of the year
67,506
94,404
39,041
56,713
Components that burden the Income Statement
Current Service cost
1,093
1,817
599
1,010
Interest cost
468
1,028
281
624
Benefits granted
(4,709)
(5,214)
(2,926)
(3,347)
Total
(3,148)
(2,369)
(2,046)
(1,713)
Statement of Comprehensive income
Actuarial (gains)/losses
(23,756)
(53,753)
(15,627)
(33,007)
Total
(23,756)
(53,753)
(15,627)
(33,007)
Assumption values in the Actuarial Study
Valuation date
Discount rate
Tariff
increases
Profit margin
Expectancy of future
services
31/12/2021
1.05%
2022:2.57%
11.91
2023:10.1%
0.00%
2024:13.7%
2025+:16.5%
31/12/2020
0.51%
2021:8.4%
13.09
2022:10.1%
0.00%
2023:14.0%
2024+:15.8%
Sensitivity disclosures
Percentage change
Increase in discount rate by 0.5%
(5.6%)
Decrease in discount rate by 0.5%
6.2%
b) PROVISION FOR SEVERANCE PAY
Voluntary retirement programms
On June 2
nd
, 2020, the Parent Company’s Board of Directors decided to implement for the current year a voluntary
retirement program by providing financial incentive equal to Euro 20,000 to employees with indefinite employment
contracts aged 55 and older, including those who reach the age of 55 by December 31
st
, 2020, regardless of the
establishment of a pension right due to the withdrawal of the Lignite Units (Mines and SES) of Western Macedonia,
in the context of the Business Planning and Lignite phase-out. This financial incentive will be paid in addition to the
legal compensation of up to Euro 15,000 as defined in article 2, par. 2 of A.N. 173/1967. Employees who met the
requirements of the program had to declare their voluntary participation in it until June 30
th
, 2020.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
245
31.POST-RETIREMENT BENEFITS (CONTINUED)
On July 14
th
, 2020, the Parent Company’s BoD decided to implement for the current year a voluntary retirement
program providing a financial incencitive equal to euro 20,000 addressed to all employees including those who have
been transferred to other State agencies and are occupied with indefinite employment contracts regardless of the
specialization, to the executives of the company who are employed on a fixed-term contract and come from the
permanent staff and to the lawyers with mandated pay aged 55 and older, including those who reach the age of 55
by December 31
st
, 2020, regardless of the establishment of a pension right. Employees who met the requirements
of the program and wished to join it, should declared their voluntary participation within September 2020.
During 2020 the BoD of the subsidiaries Lignitiki Melitis S.A., Lignitiki Megalopolis S.A. and HEDNO S.A. decided
the implementation of the above financial incentive under similar conditions to voluntary retirement programs of the
Parent Company to their employees.
On July 29, 2021, with Decision no. 95, the Board of Directors of the Parent Company decided to implement the
voluntary retirement plan by providing additional financial incentives based on regular remuneration depending on
the previous service, age and number of protected children of employees as well as a fixed amount of € 5,000 to
cover their insurance issues.
The program was addressed to all employees of the Lignite Production Units (Stations and Mines) of Western
Macedonia, who are employed on an indefinite contract regardless of specialty, aged 50 and over, including those
who reach the age of 50 by December 31, 2021 and have completed at least 15 years of continuous service in the
Company or complete the 15-year period up to and including December 31, 2021 regardless of the establishment
of a pension right.
Employees who met the requirements of the program and wished to join it, had to declare their voluntary
participation within the months of September and October 2021. Those employees who declared their participation
within the month of September 2021, will receive as an incentive for short registration, the payroll cost of one month.
On October 26, 2021, with Decision no. 131, the Board of Directors of the Parent Company decided to implement
a voluntary retirement plan by providing additional financial incentives based on regular remuneration depending
on the previous service, age and number of protected children of employees as well as a fixed amount of € 5,000
to cover their pending insurance issues.
The program was addressed to all employees except the employees who were subject to the above voluntary
retirement program (Decision No. 95 of the Board of Directors) and except for employees of specific branches /
departments, who are employed on an indefinite contract regardless of specialty, aged 50 and over. including those
who reach the age of 50 by December 31, 2021 and have completed at least 15 years of continuous service in the
Company or complete the 15-year period until December 31, 2021 regardless of the establishment of a pension
right.
Employees who met the requirements of the program and wished to join it had to declare their voluntary participation
within the month of November 2021 and specifically until 25.11.2021.
For the year ended December 31, 2021, the Group and the Parent Company recognized additional provision for
employee benefits due to the new voluntary retirement plans of € 13.9 mil. (31.12.2020: € 35.8 million) and € 13.6
mil. ( 31.12.2020: € 22.5 million) respectively, burdening their results equally.
In addition, as of December 31, 2021 an amount of € 19.4 mil. (31.12.2020: € 30.8 million) and € 17.3 mil.
(31.12.2020: € 16.1 million) respectively for the Group and the Parent Company is included in the trade and other
liabilities arising from the above voluntary retirement programms.
All above are defined benefit plans in accordance with the provisions of IAS 19.
Provision for staff leave indemnities - Actuarial study
The present value of the liability undertaken by PPC and its subsidiaries is calculated using actuarial methods.
The Interpretation Committee of International Financial Reporting Standards ("the Commission") issued in May
2021 the final decision on the agenda entitled "Distribution of benefits over periods of service (IAS 19)".
The effect of this interpretation is not significant for the Group, while the Group restated the comparative period
(Note 44) and for the Parent company there is no effect (Note 4.2).
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
246
31.POST-RETIREMENT BENEFITS (CONTINUED)
The results of the actuarial study regarding the obligation for compensation to staff due to retirement for the year
ended December 31, 2021 and the year ended December 31, 2020 are as follows:
Group
Company
2021
2020
(Restated)
2021
2020
Changes in the Present Value of the Liability
Liability, at beginning of year (published)
153,023
152,637
72,657
84,334
Effect of change in accounting policy (IAS 19)
-
(2,217)
-
-
Liability, at beginning of year (restated)
-
150,420
72,657
84,334
Current Service Cost
1,667
1,775
983
1,111
Interest Cost
301
985
173
538
Cost of cuts/settlements/termination of service
14,107
31,530
12.434
20,927
Actuarial (gains)/losses
(6,063)
12,046
(2.890)
5,182
Benefits Provided
(16,802)
(45,950)
(2.773)
(39,435)
Liability, end of the year
144,016
153,023
80.584
72,657
Short term portion of Liability
2,150
14,670
-
-
Long term portion of Liability
141,866
136,136
80,584
72,657
Components that burden the results
Current Service Cost
1,667
1,775
983
1,111
Interest Cost
301
985
173
538
Cost of cuts/settlements/termination of service
14,107
31,530
12,434
20,927
Total Continuing Operations
16,075
34,290
13,590
22,576
Statement of Comprehensive income
Actuarial (gains)/losses
(6,063)
12,046
(2,890)
5,182
Total
(6,063)
12,046
(2,890)
5,182
Assumptions values in the Actuarial Study
Valuation
date
Discount Rate
Salary Increase
Inflation
Resignations
Future
Service
Expectancy
31/12/2021
0.79%
2.00%
2.00%
0.00%
9.4
31/12/2020
0.25%
2.00%
1.10%
0.00%
8.4
Sensitivity Analysis
Percentage
change
Increase in the discount rate by 0.5%
(4.8)%
Decrease in the discount rate by 0.5%
5.2%
Increase in the expected salary increase by 0.5%
0.2%
Decrease in the expected salary increase by 0.5%
(0.3)%
In addition to the above benefits, the subsidiary PPC Renewables SA has recognized a provision for compensation
of staff leave indemnites amounting to € 6 for staff that has been directly hired (2020: € 170). From the decision
issued by the Commission under the title "Distribution of benefits in periods of service (IAS 19)", this provision was
reduced by €118 in January 1
st
, 2020, in December 31 2020 and December 31 2021.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
247
32. PROVISIONS
Group
Company
2021
2020
2021
2020
Litigation against employees/
third parties (Note 40)
417,012
334,469
393,139
294,013
Provision of decommissioning and removal of
Power Plants’, Mines’ and Wind Parks’
facilities and mines’ land restoration
410,424
415,831
410,424
414,559
Provision for onerous contracts (Note 15)
4,017
21,657
4,017
21,657
PPC-PIO fixed assets
2,400
2,400
2,400
2,400
Other
1,408
-
-
-
Total
835,261
774,357
809,980
732,629
During the year ended December 31
st
, 2021, the Group and the Parent Company established an additional provision
for litigation with employees and third parties amounting to € 82,543 and € 99,126 respectively.
«Provision of decommissioning and removal of Power Plants’, Mines’ and Wind Parks’ facilities and mines’ land
restoration» above as of December 31, 2020 has been reclassified by an amount of € 13,065 in order to present
only the long term portion of this provision. The short term portion of € 13,065 as of December 31, 2020 is presented
on the Financial Position on a separate line in short term liabilities of the Group and the Parent Company.
Provision of Decommissioning and removal of Power Plants’, Mines’ and Wind Parks’ facilities and
provision for mines’ land restoration
The Group and the Parent Company have undertaken the commitment to dismantle all the power plants’ and mining
facilities, to remove their equipment and to fully restore mines’ lands when the facilities cease to operate. The provision
is recognized at the present value of future cash flows that will be required to settle the relevant liabilities. The provision
of decommissioning of units and mines has not taken into account any income from the sale of machinery, spare parts
and materials or from the utilization of land.
In 2021, the Group and the Parent Company proceeded mainly with land restorations in the mines, as a result of which
the relevant provision was reduced by € 10.7 million. In addition, within 2021, the plan for the restoration of the mines
and the dismantling and removal of the Production Units was updated, carrying earlier the relevant restoration works.
At the same time, the works of restoration and preparation of the areas for the new land utilizations after the completion
of lignite-phase out (new land utilizations: industrial, recreational parks, lakes, forest and agricultural areas) were
specified and as a result the cost of restoration of the mine areas was revised.
Finally, the cost of dismantling facilities / equipment of the Mines and power plants was reduced due to the design of
new utilizations of some facilities / buildings within the Mines and power plants.
The provision for the decommissioning of Units, Mines and Wind Parks is as follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
248
32.PROVISIONS (CONTINUED)
Group
Provision
for mines’
land
restoration
Provision of
dismantling of
mining
facilities/
equipment
Provision of
decommissioning
of power plants
Provision for
Wind Parks’
restoration
Total
Balance, January 1, 2021
119,649
64,849
243,126
1,272
428,896
Change in future outflows
(property, plant and equipment-
note 15)
87,981
-
-
71
88,052
Change in future outflows through
income statement
(10,116)
(2,964)
(17,356)
55
(30,381)
Change in future outflows through
comprehensive income statement
-
7,413
(18,578)
9
(11,156)
Finance cost (Note 11)
7,777
4,215
15,803
-
27,795
Used provision
(10,543)
-
(234)
-
(10,777)
Balance, December 31, 2021
194,748
73,513
222,761
1,407
492,429
Provision
for mines’
land
restoration
Provision of
dismantling of
mining
facilities/
equipment
Provision of
decommissioning
of power plants
Provision for
Wind Parks’
restoration
Total
Current portion
41,395
15,993
23,210
-
80,598
Non-current portion
153,353
57,520
199,551
1,407
411,831
Balance, December 31, 2021
194,748
73,513
222,761
1,407
492,429
Group
Provision
for mines’
land
restoration
Provision of
dismantling of
mining
facilities/
equipment
Provision of
decommissioning
of power plants
Provision for
Wind Parks’
restoration
Total
Balance, January 1, 2020
114,524
62,079
232,718
872
410,193
Change in future outflows
(property, plant and equipment-
Note 15)
(1,893)
-
-
143
(1,750)
Change in future outflows through
income statement
(426)
(458)
(2,276)
262
(2,898)
Change in future outflows through
comprehensive income statement
-
(807)
(2,443)
-
(3,250)
Used/Unused provision
-
-
-
(47)
(47)
Finance cost (Note 11)
7,444
4,035
15,127
42
26,648
Balance, December 31, 2020
119,649
64,849
243,126
1,272
428,896
Group
Provision
for mines’
land
restoration
Provision of
dismantling of
mining
facilities/
equipment
Provision of
decommissioning
of power plants
Provision for
Wind Parks’
restoration
Total
Current portion
5,890
3,163
4,012
-
13,065
Non-current portion
113,759
61,686
239,114
1,272
415,831
Balance, December 31, 2020
119,649
64,849
243,126
1,272
428,896
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
249
32.PROVISIONS (CONTINUED)
Parent Company
Provision for
mines’ land
restoration
Provision of
dismantling of
mining facilities/
equipment
Provision of
decommissioning of
power plants
Provision
for Wind
Parks’
restoration
Total
Balance, January 1, 2021
119,649
64,849
243,126
-
427,624
Change in future outflows
(property, plant and equipment-
Note 15)
87,981
-
-
87,981
Change in future outflows through
income statement
(10,116)
(2,964)
(17,356)
(30,436)
Change in future outflows through
comprehensive income statement
-
7,413
(18,578)
(11,165)
Finance cost (Note 11)
7,777
4,215
15,803
27,795
Used/Unused provision
(10,543)
-
(234)
(10,777)
Balance, December 31, 2021
194,748
73,513
222,761
491,022
Parent Company
Provision for
mines’ land
restoration
Provision of
dismantling of
mining facilities/
equipment
Provision of
decommissioning of
power plants
Provision
for Wind
Parks’
restoration
Total
Current portion
41,395
15,993
23,210
-
80,598
Non-current portion
153,353
57,520
199,551
-
410,424
Balance, December 31, 2021
194,748
73,513
222,761
-
491,022
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
250
32.PROVISIONS (CONTINUED)
Parent Company
Provision
for mines’
land
restoration
Provision of
dismantling of
mining
facilities/
equipment
Provision of
decommissioning
of power plants
Provision for
Wind Parks’
restoration
Total
Balance, January 1, 2020
114,524
62,079
232,718
-
409,321
Change in future outflows (property,
plant and equipment)
(1,893)
-
-
-
(1,893)
Change in future outflows through
income statement
(426)
(458)
(2,276)
-
(3,160)
Change in future outflows through
comprehensive income statement
-
(807)
(2,443)
-
(3,250)
Finance cost (Note 11)
7,444
4,035
15,127
-
26,606
Balance, December 31, 2020
119,649
64,849
243,126
-
427,624
Provision
for mines’
land
restoration
Provision of
dismantling of
mining
facilities/
equipment
Provision of
decommissioning
of power plants
Provision for
Wind Parks’
restoration
Total
Current portion
5,890
3,163
4,012
-
13,065
Non-current portion
113,759
61,686
239,114
-
414,559
Balance, December 31, 2020
119,649
64,849
243,126
-
427,624
As of December 31, 2021, the present value of the provision for the dismantling and removal of Production Units,
Mines and the rehabilitation of the Group and the Parent Mine was estimated at the total cost of land rehabilitation,
dismantling of existing equipment / installations and equipment, demolition any waste by applying an inflation rate
of 2% and a discount rate of 6.7% (2020: 6.5%). Below we present a sensitivity analysis of the forecast for the
dismantling and removal of facilities of Production Units, Mines and restoration of areas of Mines from the change
of the discount rate used.
Sensitivity Analysis
Present value of the provision
of decommissioning
2021
2020
2021
2020
0.25%
(0.25%)
0.25%
(0.25%)
Provision of decommissioning of units and mines
491,022
427,624
484,998
497,252
419,022
436,527
Balance, December 31,
491,022
427,624
484,998
497,252
419,022
436,527
Positive / (Negative) effect on the Results of the
Group and the Company
-
-
6,024
(6,230)
8,602
(8,903)
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
251
33. SUBSIDIES
Group
Net book values
31.12.2019
172,577
-Transfer to revenues
(Note 9)
(18,857)
31.12.2020
153,720
-Transfer to revenues (Note 9)
(16,172)
31.12.2021
137,548
Net book values
Company
31.12.2019
156,844
-Transfer to revenues (Note 9)
(14,540)
-Transfer to liabilities held for sale
(Note 5)
(37,045)
31.12.2020
105,259
-Transfer to revenues (Note 9)
(9,896)
-Transfer to Liabilities held for sale
(Note 5)
302
31.12.2021
95,665
34. LONG-TERM CONTRACT LIABILITIES
As stated in Note 4.4, Group and the Parent Company classify Customers’ Contributions and Customers’ Advances
for Electricity Consumption to Long-Term Contract Liabilities under the provisions of IFRS 15. The following table
presents in detail the corresponding figures, as well as the balance on December 31
st
, 2021 and December 31
st
,
2020 of the Long-Term Contract Liabilities.
Group
Company
Balance, January 1, 2020
2,331,696
2,331,696
Customers’ Contributions
receipts
60,380
60,380
Transfer to revenues
(88,577)
(88,577)
Reduction of Customers
Advances for Electricity
Consumption
(29,464)
(29,464)
Transfers to liabilities held for sale
(Note 5)
-
(1,823,290)
Balance, December 31, 2020
2,274,035
450,745
Customers’ Contributions
receipts
179,094
-
Transfer to revenues (Note 6)
(91,852)
(248)
Reduction of Customers
Advances for Electricity
Consumption
(12,225)
(12,225)
Other
22
-
Balance, December 31, 2021
2,349,074
438,272
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
252
35. IMPAIRMENT LOSS ON ASSETS
Impairment loss on assets includes the following:
Group
Company
2021
2020
2021
2020
Additional provisions for impairment of inventories (Note 20)
-
7,048
-
7,048
Impairment loss on mines land and under construction
mines
32,398
36,254
32,398
36,254
Partial (reversal of impairment loss)/ impairment loss on
investment in Ptolemaida V plant (Note 15)
-
(209,856)
-
(209,856)
Impairment loss from onerous contracts (Note 15)
1,530
-
1,530
-
Impairment loss on property, plant and equipment under the
revaluation model/ Impairment loss of roperty, plant and
equipment of Mines (Note 15)
26,878
22,463
-
22,463
Impairment of decommissioning provision of Units and
Mines (Note 15)
75,184
13,179
75,184
13,179
Decommissioning provision of Units and Mines (Note 32)
(30,437)
-
(30,437)
-
Other impairment loss on property, plant and equipment
2,022
5,593
-
-
Discontinued Operation
-
-
-
-
Total Continued Operation
107,575
(125,319)
78,675
(130,912)
36. TRADE AND OTHER PAYABLES
Group
Company
2021
2020
2021
2020
Trade Payables:
Suppliers and contractors
322,773
569,309
104,633
300,682
Municipalities’ duties
107,959
144,016
107,959
144,016
Social security funds
38,326
24,329
21,037
13,196
Greek TV
28,022
29,181
28,022
29,181
DAPEEP S.A.
5,165
188,336
5,165
188,336
Taxes withheld
44,721
34,823
18,213
15,888
Special consumption tax
7,406
7,194
7,406
7,194
Customers’ credit balances
89,147
93,056
89,147
93,054
IPTO S.A.
-
116,605
-
116,605
HEDNO S.A.
-
-
20,586
132,655
Bank of Crete
12,053
12,053
12,053
12,053
Lignite Levy
60,814
108,610
50,305
100,552
HEnEx S.A.
17
48
8
4
Liabilities for PSO
155,588
-
-
-
Other
98,082
101,198
15,668
17,846
Total
970,073
1,428,758
480,202
1,171,262
37. SHORT-TERM BORROWINGS
Group
Company
2021
2020
2021
2020
Overdraft facilities
- Credit lines available
284,140
42,152
270,000
30,000
- Unused portion
13,479
-
10,000
-
- Used portion
271,337
42,152
260,000
30,000
Within the fourth quarter of 2021, the Parent Company signed loan agreements with Alpha Bank, for an amount of
€ 125 million for Working Capital in the form of an overdraft line, with Attica Bank for an amount of € 25 million for
Working Capital in the form of an overdraft line and, with Eurobank, for an amount of € 80 million for working capital
in the form of an overdraft line.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
253
38. SHORT-TERM CONTRACT LIABILITIES
On February 28, 2020, the Parent Company received from the Greek State an amount of € 587 million, as a
prepayment for the value of the electricity consumption of its operators for the year 2020, based on a five-year
agreement signed with the Greek State on June 14, 2018. The settlement of the amounts was completed within
2021. In addition, on December 30, 2020 the Parent Company received from the Greek State the amount of € 200
million, as a partial prepayment for the value of the consumption by the government owned entities for the year
2021.
On February 26, 2021 it received the remaining amount of € 390.5 million (total prepayment € 590.5 million). The
settlement of the amounts is expected to be completed within 2022.
In December 2019, an amount of € 83,642 was reimbursed to the Parent Company by the competent Administrators
which concerned the Retrospective ETMEAR (Special fee for the reduction of CO
2
emissions) Clearance, due to
reduction of charges from January 1
st
, 2019. This amount was reimbursed to customers in 2020 through their
electricity bills.
On December 15, 2021, the amount of € 694.3 million was paid to the Parent Company by the Greek State as an
advance payment for the year 2022, always based on the five-year agreement signed with the Greek State.
Group
Company
2021
2020
2021
2020
Balance, January 1
550,877
438,910
550,877
438,910
Received advances from NOME-type auctions
during the year
-
2,755
-
2,755
Received advance from the Greek State for the
value of the electricity consumed by the
government owned entities
1,084,800
786,500
1,084,800
786,500
ETMEAR of year 2019 reimbursed to the
customers
-
(83,642)
-
(83,642)
Transfer to income proportion of received
advances from NOME-type auctions
-
(14,121)
-
(14,121)
Decrease in the Greek State’s advance for the
value of the electricity consumed by the
government owned entities
(506,106)
(579,525)
(506,106)
(579,525)
Balance, December 31
1,129,571
550,877
1,129,571
550,877
39. ACCRUED AND OTHER CURRENT LIABILITIES
Group
Company
2021
2020
2021
2020
Accrued interest on
loans and borrowings
30,416
17,737
25,418
17,737
Natural gas and liquid fuel purchases
35,719
25,713
35,705
25,698
Expropriation costs
112,885
37,047
112,885
37,047
Personnel day off and overtime
66,821
58,125
36,532
36,480
RAE fees
15,392
15,714
15,392
12,782
Purchase of emission allowances (Note 10)
696,746
301,600
696.746
301,600
Discounts on medium voltage customers
3,981
12,220
3,981
12,220
IPTO S.A.
-
-
-
-
HEDNO S.A.
-
7,117
95,659
53,257
Variable Insurance Margin
552,059
107,008
552,059
107,008
Other
163,801
229,307
138,026
187,640
Transfer to liabilities Held for Sale (Note 5)
-
-
-
33,717
Total
1,677,820
811,588
1,712,403
825,186
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
254
40. COMMITMENTS, CONTINGENCIES AND LITIGATION
OWNERSHIP AND INSURANCE OF PROPERTY
1. The National Cadastral process is in progress. The Parent Company has already completed its Real Estate’s
recording. Those properties are recorded in total in the Land Registries throughout Greece in the Cadastre
Offices and at same time the Cadastral process is monitored, and all pending issues are settled. This process
has been completed for about 50% of the Country. In this context, 82 cadastral lawsuits are pending, out of
which 12 are in Athens, for which the relevant judgements have not yet been issued. The posting of temporary
cadastral tables in Athens is expected (72 areas under cadastre), where the Company owns a significant
number of properties.
2. In several cases, expropriated land, as presented in the expropriation statements, differs from the cadastral
survey, a reason why the Group is in the process of cadastral settlement (filing of monitored acts) in
collaboration with the Cadastral Offices. In particular, for the properties in question, PPC has the right till
December 2022 to proceed with lawsuits for the said land which are mainly located in expropriated lignite-
bearing areas and in the official records appear to have an unknown owner or third-party owner. At the pre-
trial/ preliminary level, 123 objections are still pending, procedure that has been cancelled due to COVID-19
Pandemic but it will start again from North Greece.
3. Agricultural land acquired by the Parent Company through expropriation in order to be used for the
construction and operation of hydroelectric power plants, must be transferred to th e State at no charge,
following a decision of the Parent Company’s Board of Directors and a related approval by the Ministry of
Development, if such land is no longer needed by the Parent Company for the fulfilment of its purposes
according to article 9, of Law 2941/01
4. According to article 168 par.1 of Law 4759/20, the article 15 of Law 4273/14 was abolished, according to
which the land expropriation of PPC was declared in favour of the Greek State and under PPC’s expenses
so thus, those expropriations will be declared in favour and under the expenses of PPC. According to article
29, par. 1 of Law 4872/2021 (OG/A / 247 / 10-12-21) PPC after the full payment of the relevant compensations
becomes the owner of the expropriation areas with the following data:
a) Δ9 / Δ / Φ 53/9455/2442 / 2.9.2014 (ΑΑΠ 294), Expropriation ΟΔΠΚ-1.
b) Δ9 / Δ / Φ 53/22337 / ΠΕ / 4095 / 2.9.2014 (ΑΑΠ 294), Expropriation ΟΝΠ-6.
c) Δ9 / Δ / Φ53 / 8773/2272 / 2.9.2012 (ΑΑΠ 294), Expropriation ΟΝΠ-7 and
d) Δ9 / Δ / Φ53 / 4855/1139 / 28.7.2014 (ΑΑΠ 249), Expropriation ΧΩΡ-6.
5. There are pending about 16 applications for the removal of expropriations concerning abolished HV
Transmission Lines through the settlement of rights in rem.
6. The Group does not carry any form of insurance coverage on its fixed assets in operation (except for its
information technology infrastructures), and as a result if a sizable damage occurs to its properties, it might
affect its profitability. Material spare parts as well as liabilities risks against third parties are not insured.
LITIGATION AND CLAIMS
The Group is a defendant in several legal proceedings arising from its operations. The total amount claimed as at
December 31st, 2021, amounts to Euro 999 mil. ( 31.12.2020: Euro 886 mil.) as further detailed below:
1. Claims with contractors, suppliers and other claims:
A number of contractors and suppliers have raised claims against the Group. These claims are either pending
before courts or under arbitration and mediation proceedings. The total amount raised to Euro 416 mil. (31.12.2020:
Euro 435 mil.). In most cases the Group has raised counter claims, which are not reflected in the accounting records,
until the time of collection.
2.Fire incidents and floods:
A number of individuals have raised claims against the Group for damages incurred as a result of alleged electricity-
generated fires and floods. The total amount raised to Euro 108 mil. (31.12.2020: Euro 63 mil.).
3.Claims by employees:
A number of the Groups’ Employees are claiming the amount of Euro 72 mil. (31.12.2020: Euro 67 mil.), for
allowances and other benefits that according to the employees should have been paid by PPC.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
255
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
4. PPC’s lawsuit against ETAA (former TSMEDE)
ETAA (former TSMEDE) by its Decision 7/2012 imposed on PPC the amount of Euro 27.4 mil. applying article 4 of
L.3518/2006, relating to employer contributions due to the Main pension Branch for the period 01.01.2007 –
30.04.2012 and pertaining to the engineers insured before 01.01.1993 to the above-mentioned Insurance Fund,
that have been employed by PPC for the above-mentioned period.
Against the above mentioned 7/2012 decision of the Insurance Fund in question, PPC has filed legally and timely
the 05.09.2012 appeal to the Athens Administrative Court of First Instance. The discussion of the appeal took place
on 03.11.2014. The preliminary ruling 11872/2016 was issued, which obliges TSMEDE to produce to the Court the
documents referred to the judgment and then the case will be discussed again in order to issue a final decision.
Already the case was determined to be discussed at the hearing on April 9th, 2019 and was postponed. Thus,
numerous cases filed were postponed, the last one was filed in December 14, 2021.The new hearing has not yet
been determined.
Since its employees – who are engineers- are insured mandatorily to PPC’s Insurance Fund based on L. 4491/1966,
thus resulting to PPC paying on their behalf to the above mentioned Insurance Fund the corresponding employer
contributions while insurance for the above mentioned engineers in ETAA is optional and is done by choice, with
them paying the corresponding insurance contributions provided for engineers that are independently employed,
the Parent Company considers that the possibilities of a negative outcome of its appeal are minimal and therefore
has not established a provision.
5.Lawsuits and extrajudicial documents of IPTO against PPC S.A.
On 29.11.2018, IPTO served an extrajudicial document to PPC with which asks from PPC:
- to pay-off debts of € 495.3 mil. from PPC’s participation in the wholesale electricity market for the period
January 2018 to August 2018, which have become overdue, plus overdue interest.
- to pay overdue interest amounting to € 83.4 mil. arising from the overdue payment of PPC’s debts from its
participation in the wholesale electricity market for the period August 2016 to September 2018.
Of the above amounts, only the amount of € 55 mil. pertains to IPTO, while for the rest, DAPEEP (former EMO) has
become the universal successor.
On 28.02.2019, two IPTO’s lawsuits (February 2015) against PPC for a total amount of € 540.0 mil., for amounts
due from the Parent Company’s participation in the wholesale electricity market, were discussed before the
Multimember Court of First Instance in Athens and a decision is pending. By its first lawsuit IPTO was asking for an
amount of € 242.7 mil. (with interest) for amounts due which PPC collects from electricity bills and conveys to IPTO,
that in turn conveys them to EMO. By its second lawsuit, IPTO was asking for the payment of € 232.6 mil. (with
interest) for amounts due which PPC collects from electricity bills and conveys to IPTO.
The Decision 944/2020 of the Multimember Court of First Instance in Athens was issued and was sent to PPC on
08.07.2020, which is not provisionally enforceable and obliges PPC to pay:
- regarding the first lawsuit, to IPTO: a) the legal interest on the amount of € 188.3 mil. for the period from 03.02.2015
until the payment of each of the legal invoices paid after that date, and b) the amount of € 18.9 mil. with the legal
interest from the service of the lawsuit until the full repayment
- regarding the second lawsuit, to IPTO: a) the legal interest on the amount of € 227.6 mil. for the period from
03.02.2015 until the payment of each of the legal invoices, paid after that date, and b) the amount of € 40.3 mil.
with the legal interest from the service of the lawsuit until the full payment,
-to HEDNO: a) the legal interest on the amount of €5.0 mil. for the period from 03.02.2015 until the payment of each
of the legal invoices, paid after that date and b) the amount of €244.6 with the legal interest from the service of the
lawsuit until the full payment.
Interest corresponding to these overdue receivables amounts to € 62.0 mil. PPC has filed an appeal against the
above decision, which will be heard on 13.01.2022 before the Three-Member Court of Appeal of Athens.
On its side, PPC has served an extrajudicial document to IPTO (without the latter having answered), requesting the
payment of a total amount of € 14.0 mil. for overdue interest on invoices which incorporate debts to PPC from March
2012 until 02.02.2015.
In October 2017, a new (third) lawsuit of IPTO against PPC was discussed and furthermore re-discussed on
07.01.2021, due to a long delay in the issuance of a decision by the first composition of the Athens Multi-Member
Court of First Instance, by which IPTO asks PPC to pay an amount of € 406.4 mil. (with interest) for overdue
receivables arising also from PPC’s participation in the wholesale electricity market and specifically relating to non-
competitive charges of IPTOs’ invoices for the period 2015 - 2016. Decision no. 1494/2021 of the Athens Multi-
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
256
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
Member Court of First Instance was issued on this lawsuit, which rejected the claim for interest. The interest
corresponding to these overdue receivables, amounted to € 59.0 mil.
On 31.12.2021 the lawsuit No.106878/4124/2021 (new fourth lawsuit) was served on PPC by IPTO, as it was filed
in the Multi-Member Court of First Instance of Athens on 30.12.2021, for which a trial date has not yet been set and
by which IPTO requests a pay of:
a) an amount of € 78.2 million for interest on arrears, with legal interest from the service of the lawsuit until the full
payment
b) an amount of € 6.5 million for outstanding capital, with legal interest from the respective declared day, otherwise
from the notification, otherwise from the service of the lawsuit until the full repayment.
The above amounts relate to IPTO issuance invoices that PPC allegedly did not pay or paid late and relate to the
years 2016 to 2020. The deadline for submission of proposals is set at 11.04.2022 and the deadline for submission
is 26.04.2022.
Until today, all the above lawsuits’ principal amounts have been paid, excluding interest amounts for which the
Parent Company had established a provision on December 31st, 2021. Although with the recent decision no.
1494/2021 PPC was justified for the non-payment of interest on the amounts owed for the third above lawsuit, the
Parent Company continues to maintain the established provision, as taking into account all available information to
date, it is not substantiated until now the positive outcome of the case, as a whole, in favor of PPC in the future.
6.Alleged claims of former EMO against PPC S.A. due to deficits of the Day Ahead Schedule (DAS)
Due to the deficits created by the suppliers ENERGA POWER TRADING S.A. and HELLAS POWER S.A. during
2011 and 2012, PPC was obliged under RAE’s Decision No. 285/2013 (whose legality was confirmed by the State
Council’s decision No.1761/2016), as well as by the Power Exchange Code for Electricity, to pay to EMO a total
amount of € 126.3 mil. (after a final clearing according to Article 61 of the Power Exchange Code for Electricity)
within 2017.
A. Although EMO explicitly accepted the proposed debt settlement, in December 2016 filed a lawsuit against PPC
asking the (then) residual amount of € 78.0 mil.(with interest), which the Parent Company paid in 2017. In February
2017, PPC filed a counter lawsuit asking EMO to be ordered to pay the amount of € 126.0 mil. (plus an amount of
€ 100 thousands for PPC’s moral damages). On these lawsuits, the Multimember Court of First Instance in Athens
issued the decision 4810/2018 which accepted EMO’s lawsuit and rejected PPC’s counterclaim. PPC has filed a
relevant appeal which will be discussed after postponement on 19.05.2022 (from initial hearing on 16.09.2021),
before the 13th section of the Three-Member Court of Appeal in Athens.
B. In December 2017, EMO sent to PPC two new Information Notes on the Allocation of Monthly Deficits of the Day
Ahead Schedule (DAS), totalling to € 833 thousands with which, EMO claimed that its new claims arose from the
second settlement of the Deficit for the years 2011 and 2012, due to the disappearance or insolvency of the previous
third-party electricity suppliers of that time. In this context, in March 2018, PPC filed before the Multimember Court
of First Instance in Athens its lawsuit against EMO, requesting a declaration that it does not owe the above-
mentioned amount and EMO to be condemned to pay an amount of € 50.0 thousands as compensation for PPC’s
moral damages. In May 2018, EMO filed its counterclaim. The two opposite lawsuits were judged, and the
Multimember Court of First Instance in Athens issued recently the decision No. 932/2020, which justifies EMO (now
DAPEEP), a reason for which a relevant appeal has already been filed, which will be heard on 17.02.2022. It has
been agreed to postpone them for co-adjudication with the above initial case on 19.5.2022.
7.Claims of third parties against real estate properties
As of December 31
st
, 2021, there are claims from third parties against the Parent Company’s properties with a net
book value of Euro 13.2 mil.(31.12.2020: €13.2 mil.) for which the Parent Company has established adequate
provision.
8.HEDNO lawsuits against PPC
HEDNO has so far filed 4 lawsuits against PPC seeking regulated charges and interest on them, as follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
257
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
Lawsuit 121583/4693/2018
On 31.12.2018, the lawsuit No. 121583/4693/2018 (1st lawsuit) was served on PPC, requesting it to pay the total
amount of € 1.9 million with the legal interest of the lawsuit from service of the lawsuit until full payment. This amount
refers to interest on arrears due to alleged late payment by PPC of invoices for the year 2013 issued by HEDNO.
The case was heard on 1.10.2020 and a decision is expected.
Lawsuit 1115464/3775/2019
On 30.12.2019 the lawsuit No.1115464/3775/2019 was served (2nd lawsuit), with which he is requested to pay the
total amount of € 1.4 million with the legal interest from the service until full payment. This amount refers to interest
on arrears due to alleged late payment by PPC of invoices for the year 2014 issued by HEDNO. The case was
heard on 8.02.2022 and a decision is expected.
Lawsuits ( 93423/2020 & 2989/2020)
The case is new and has not been discussed yet. It concerns the payment of arrears of interest due to delays in
the payments of regulated charges by PPC.
With this lawsuit, PPC is required to pay interest on arrears in the total amount of 5,016,821.78 euros (with legal
interest from its delivery on 31.12.2020 - until payment) relating to late payment of invoices of the disputed year
2015 and the date of discussion of the lawsuit has been set. the 26.05.2022.
The above amount of interest relates to invoices for the following charges:
a) Distribution use charges, b) recovery of cost of purchase of electricity from RES NII, c) sale of electricity from PV
roof NII, d) ETMEAR NII, e) intra-group contracts SLAs, ie, repetitive projects, branded projects, supply transport
services, PPC consumer services, vehicle maintenance, PPC staff benefits.
Lawsuit 105062/4055/2021 (HEDNO against PPC):
On 29.12.2021, the lawsuit No.105062/4055/2021 (4th lawsuit) was served on PPC by HEDNO, which HEDNO
filed before the Athens Multi-Member Court of First Instance on 24.12.2021, requesting the PPC to pay him the total
amount of € 22.5 million with the legal interest from the litigation from the service of the lawsuit until the full payment.
No official trial date has been set.This amount refers to interest on arrears due to alleged late payment by PPC of
the invoices for the year 2016. The deadline for submission of proposals is set at 04.04.2022 and addition at
18.04.2022.
Against all the above amounts, the Group and the Parent Company have established a provision on December 31,
2021 amounted to € 417 million and € 393 million respectively (31.12.2020: € 334.0 million Group and € 294.0
million, Parent), which is considered sufficient against any expected losses that may arise from the final adjudication
of the above cases.
Lawsuit of former EMO against HEDNO in which a notice was served to PPC
On June 19th, 2017, HEDNO S.A. served a notice to PPC on EMO’s lawsuit against HEDNO S.A. With this notice
HEDNO S.A. requested PPC S.A. to intervene in favor of HEDNO S.A. in the court in which EMO claims from
HEDNO S.A. overdue amounts from invoices issued. In particular, EMO S.A. with its lawsuit claims amounts with
interest from partially paid and unpaid invoices which incorporate receivables from the RES Special Account in the
Non-Interconnected Islands (mainly debts from ETMEAR, PVs on rooftops, RES Generation in the Non-
Interconnected Islands and balancing of the Special Account in the Non-Interconnected Islands).
The claim from EMO’s part amounts to approximately € 140.0 mil., while interest due for late payment amounts to
€ 3.9 mil.
The Multimember Court of First Instance in Athens, with its decision No.1302/2019, rejected in favor of PPC
HEDNO’s notice to PPC as unlawful considering that there is no relationship of procedural guarantee between
HEDNO and PPC, and that, on the contrary, the only relationship that binds them is a contractual one. In particular,
the Court considered that according to the NII Code there is no obligation of PPC to pay-off HEDNO’s lenders other
than PPC’s contractual obligations towards HEDNO regarding the timely payment of invoices under the NII Load
Representatives contract.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
258
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
The decision has not yet been served on PPC, while HEDNO filed an appeal before the Three-Member Court of
Appeal in Athens, that will be heard on 22.09.2022.
Corrective settlements of IPTO, concerning the Special Account of art. 143 L. 4001/2011
According to L.4152/2013, RES energy purchases in the Interconnected System are paid through the market
operation, on the higher amount of either their revenue from DAS plus Deviations or the value of energy they inject
to the system multiplied by the weighted average variable cost of the conventional thermal power plants. This
amendment started being applied from August 14th, 2013, when RAE’s Decision No. 366/2013 was published in
the O.G., amending the relevant articles of the Power Exchange Code and specifying the methodology of
calculations, with which the provision of the law was implemented.
In October 2013, IPTO sent to PPC S.A. corrective clearing statements for May, June, July and part of August of
2013, totalling to an amount of € 48.2 mil., which was derived from the retrospective application of the relevant
methodology. PPC’s lawsuit against IPTO for the invoices in question was accepted by the Multimember Court of
First Instance in Athens (Decision No. 2260/2016) and is considered that PPC does not have to pay the invoices
issued totalling € 54.4 mil., which incorporate claims for the weighted average variable cost of the conventional
thermal power plants for the months May to August 2013. IPTO (which, in the meantime, was substituted in this
claim by DAPEEP) filed an appeal which was finally dismissed by the Court of Appeal in Athens with its decision
4928/2020. No appeal is likely to be filed by DAPEEP.
Former Bank of Crete
The dispute with the former “Bank of Crete” is dating back to 1989, when the bank was under liquidation. More
precisely, by a mandatory action of the then Trustee of the Bank, PPC’s deposits were mandatorily converted to
stake-holding in the share capital of the Bank and to obligatory credit to the Bank. PPC filed a lawsuit in 1991
against the bank asking to be compensated for GRD 2.2 billion approximately, (Euro 6.5 mil.) because the above-
mentioned Act of the Trustee of the Bank was held invalid. Moreover, PPC had outstanding loan balances, received
under six (6) loan agreements for which it was agreed upon to be repaid gradually through instalments. However,
on June 10th, 1991, although PPC has paid the overdue instalments, the Bank has terminated all the above-
mentioned loan agreements and thus on that date the claim against PPC became overdue for the whole amount of
the loans. For that reason, in the context of hearing of PPC’s above mentioned lawsuit, the Bank proposed before
Court an offset of its claim resulting by the above-mentioned loans, amounting to GRD 4 bil. approximately, and
furthermore has asked the payment of this amount by PPC by a lawsuit in 1995.
Following two annulment decisions (Supreme Court 746/1998 & Supreme Court 1968/2007) and expert reports, the
Athens Court of Appeal issued the decision 3680/2014 which only partially accepts PPC’s lawsuit while essentially
it upholds the results of the ordered by the same Court official expert report, as follows: a) the amount due by the
Bank of Crete to PPC on July 22nd, 1991, the date PPC filed the lawsuit, amounted to GRD 1,268,027,987 and b)
the amount due by PPC to the Bank of Crete on July 1st, 1991, due to the termination of the above loan agreements
by the Bank and after the proposed by the Bank offsetting of its counterclaim against the above-mentioned PPC’s
claim, amounted to GRD 2,532,936,698. Therefore, the above decision of the Court of Appeal recognizes that on
July 22nd, 1991, the amount due by PPC to the Bank of Crete was 2,532,936,698 - 1,268,027,987 = GRD
1,264,908,711.
In 2017, PPC appealed against the above-mentioned decision of the Court of Appeal in Athens, the appeal was
heard on March 9th, 2020 before the Supreme Court and the decision is pending. It is noted that until the final
judgment on the appeal, the discussion of the aforementioned (December 28th, 1995) lawsuit of the Bank of Crete
against PPC remains suspended. In case that the Supreme Court accepts PPC’s appeal, then it will discuss the
case again and its decision will be irrevocable.
PPC, with its appeal, requests to be recognized that the Bank's loans to PPC had not been transferred to overdraft
facilities and therefore the Bank's termination of the loan agreements on June 10th, 1991, was invalid.
If PPC's appeal is accepted, this means that the Bank's lawsuit against PPC will be rejected (because this lawsuit
is based precisely on the fact that the Bank's claims from the loans had been transferred to overdraft facilities, which
the Bank legally closed with a complaint on June 10th, 1991, and consequently PPC owed to the Bank that year
the amount of GRD 2,532,936,698 which is reduced due to the proposed by the Bank offsetting of its claim against
PPC's counterclaim amounting to GRD 1,268,027,987, and therefore the difference is 2,532,936,698 -
1,268,027,987 = GRD 1,264,908,711). However, this does not mean that PPC can request from the Bank the
amount of GRD 1,268,027,987, because this PPC’s claim was settled until 1996 with offsetting proposed by PPC
against the Bank’s counterclaims that the latter had against PPC from the above loans and which arose when each
instalment of these loans became overdue. Therefore, if PPC’s appeal is accepted, then neither the Bank has a
claim against PPC nor the PPC against the Bank.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
259
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
However, if PPC’s appeal is rejected, then the assumptions of the decision taken by the Court of Appeal will become
irrevocable and therefore the court that has undertaken the second lawsuit, i.e. the Bank's lawsuit against PPC, is
obliged to accept that on July 22nd, 1991, PPC owed to the Bank of Crete the amount of GRD 1,264,908,711 due
to the closing of the overdraft facilities on June 10th, 1991, and the court will condemn PPC to pay this amount to
the Bank with overdue interest (with different interest-bearing dates per loan amount, from the year 1993 until 1995)
and with quarterly compounding until the repayment, after deducting from the amount due the payments that PPC
made to the Bank in repayment of the loan instalments, when they became overdue.
At present, it is not possible to predict the outcome of the case.
Pricing of the General Minining and Metallurgical Societe Anonyme LARCO (LARCO)
With the submission of the amendment plan - addition to a Bill, which related to the regulation of LARCO’s Issues
and in order not to be hindered, for reasons of public interest, the process of LARCO’s privatization, as described
in the above amendment plan, PPC’s Board of Directors decided to continue the electricity supply to LARCO
(Decision No. 11/11.2.2020), under the following conditions: a) the fully and timely payment of electricity bills upon
the entry into force of the law and b) the signing of the Electricity Supply Contract, with the special administrator
immediately after its appointment. Already, after the publication of the relevant article 21 of L.4664/14.02.2020 and
the appointment of the special administrator in LARCO, the new Electricity Supply Contract for the period
01.03.2020-31.12.2020 with the special administrator of the Company was signed on June 1st, 2020.
Under this contract, LARCO has paid the relevant consumption bills on time by 31.12.2021, while PPC has taken
appropriate actions to ensure the settlement of the recent next bills. Due to the expiration of the Procurement
Contract on 31.12.2020, PPC has already sent its proposals to LARCO regarding the pricing terms 2021, while the
relevant negotiations are in progress.
It is noted that a provision for expected credit loss has been formed for the total net claim of € 369.2 million as of
December 31, 2021 against LARCO (31.12.2020: € 362.0 million).
Following the invitation of the Special Administrator from 22.04.2021 for the temporary announcement of claims of
creditors of LARCO in accordance with the provisions of par. 7 (j) of article 21 of Law 4664/2020, PPC in terms of
its claim was announced on time 24.5.2021 (ie within one month from the publication of the invitation) and is
expected to be classified in the non-privileged claims which can receive up to 10% of the auction amount (which is
distributed to the creditors of this category proportionally).
PPC’s claims from HALYVOURGIKI S.A.
PPC filed an application for a payment order before the Court of First Instance in Athens against the company under
the name "HALYVOURGIKI S.A.", in which PPC claimed from HALYVOURGIKI to pay the total amount of Euro
30.5 million plus interest from the day following the expiry of the final bill issued after the termination of the Electricity
Supply Contract between PPC S.A. and HALYVOURGIKI S.A. and until repayment.
The payment order No. 1769/2019 of the Single-Member Court of First Instance in Athens was issued which orders
“HALYVOURGIKI S.A.” to pay to PPC the above total amount, plus the amount of Euro 15 thousands for court
costs. PPC notified the payment order in question to “HALYVOURGIKI S.A.” and further, on March 15th, 2019,
proceeded to serve the writ of garnishment for conservative seizure in the banks under the above payment order
against “HALYVOURGIKI S.A.”
Subsequently, on March 22nd, 2019, a Caveat and an Application for Suspension were served to PPC with a
request for a temporary injunction of “HALYVOURGIKI S.A.” against PPC S.A. During the discussion of the request
for a temporary injunction, which was heard on March 26th, 2019, the request was rejected.
PPC, at the request of "HALYVOURGIKI S.A.", proceeded to a partial withdrawal of imposed precautionary seizure
toward the Bank EUROBANK up to the amount corresponding to the payroll cost of that company’s employees.
On the Caveat of "HALYVOURGIKI S.A." against PPC S.A. which was discussed on October 2nd, 2019, the
Multimember Court of First Instance in Athens by its decision No. 1080/2020, accepted partially the above caveat,
annulling partially the Payment Order No. 1769/2019 for the amount of EUR 7,167,365.19, and confirming the above
Payment Order for the remaining amount.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
260
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
Furthermore, on February 15th, 2019, "HALYVOURGIKI S.A." filed against PPC an appeal for arbitration before the
ICC (INTERNATIONAL COURT OF ARBITRATION) “due to PPC’s failure to comply with the obligations under the
shareholders Agreement of 2009” between PPC S.A. and "HALYVOURGIKI S.A.", requesting PPC to be
condemned to pay the amount of two hundred and seventy million (270,000,000) euro for consequential damage,
which according to the appeal in question, "HALYVOURGIKI S.A." suffered with interest from the service of this
appeal, plus one million (1,000,000) euro for moral damage which according to "HALYVOURGIKI S.A." suffered.
Both "HALYVOURGIKI S.A." and PPC S.A. appointed their arbitrators (each party appointed its arbitrator). The
deadline for PPC’s reply in order to define the group of its legal representatives as well as to collect the data needed
to defend its positions, was set by the ICC on April 25th, 2019. On April 23rd, PPC submitted its Reply to the above
Appeal of "HALYVOURGIKI S.A." and requested the rejection of the Appeal entirely and "HALYVOURGIKI S.A." to
be obliged with the guarantee measure for the amount of EUR 1,000,000 and to be condemned to pay the total
court costs of the Arbitration.
Subsequently, following the exemption requests against the appointment of the proposed arbitrators, the two
appointed Arbitrators, in their joint letter to the Arbitration Court dated May 14th, 2019, stated that they were unable
to appoint a Third Arbitrator jointly and requested from the Arbitration Court to appoint the Third Arbitrator, pursuant
to Article 12 par. 5 of the International Arbitration Rules ICC Rules 2017. Furthermore, (on August 10th, 2019) the
Parties submitted their comments on the appointment of Third Arbitrator in the trial in question.
Finally, the Arbitration Court has sent to the Parties a proposal for the appointment of an Arbitrator, which has been
lawfully submitted to the Parties its Independence Declaration citing the cases in which the Arbitrator has been
involved in relevant legal proceedings and the Court invited the Parties, until September 10th, 2019, to submit any
objections to the appointment of the said Arbitrator. Neither PPC nor "HALYVOURGIKI S.A." raised any objections.
Therefore, the ICC Court ratified the appointment of the said Third Arbitrator. Following this, on October 16th, 2019,
the first meeting of the Arbitration Court was held where the TERMS OF REFERENCE of the Arbitration were
agreed. PPC suggested the Bifurcation of the case, meaning that there will be an interim decision of the Court
regarding the Responsibility claimed by the Plaintiff-Claimant and if the Court’s Decision is in favor of this claim,
then this decision should be followed by an examination of possible damages and amounts. The Court, by its
decision, accepted the Bifurcation while the time frame regarding the procedure of evidence was set until October
2020.
More specifically, "HALYVOURGIKI S.A." submitted its Proposals-Memorandum (Statement of Claim on Liability)
on February 14th, 2020 and PPC on May 4th, 2020. Subsequently, the submission of the parties' additions -
rebuttals and the hearing procedure took place in October 2020. Subsequently and before the issuance of the
Court's decision, the resignation of the Arbitrator appointed by the applicant took place. According to the ICC
Arbitration Rules, at this stage it is possible for a decision of the Arbitration Court to be issued by the two remaining
members. However, on February 4, the applicant ("HALYVOURGIKI SA") suddenly submitted an application for
exemption from the appointment of the arbitrator appointed by PPC as well as the Arbitrator.
The Parties, as well as the arbitrators, were summoned by the International Court of Arbitration of the ICC
(International Court of Arbitration of the International Chamber of Commerce) to submit opinions on the requests
for disqualification. The applicant further on 4.3.2021, submitted additional requests for disqualification of the above
Arbitrators, The Court again asked the parties involved to submit the views of the year, until 11.3.2021. The parties
submitted their views on time. Subsequently, on 29.4.2021, the Court extended the deadline for the issuance of the
arbitral award, until 31.5.2021.
On 12.5.2021, the International Court of Arbitration of the ICC notified the parties of its decision to reject the above
requests for exemption submitted by "HALYVOURGIKI SA" against the above Arbitrator and against the Arbitrator
as well as the approval of the draft Decision of the Arbitration Court on the appeal of "HALYVOURGIKI SA" against
PPC which has been submitted before him by the two Arbitrators and announced that the official decision on the
appeal will be notified within the legal deadline (ie until 31.5.2021), as soon as it receives the signatures from the
Arbitrators of the Arbitration Court relevant Decision. Subsequently, on 26.5.2021, the Arbitration Court notified the
Parties of its Decision, by which it completely rejected the appeal of "HALYVOURGIKI SA" dated 15.2.2019 (Case
number 24270 / AUZ) and justified PPC.
In particular, and according to the operative part of this Decision, all the claims and requests of "HALYVOURGIKI
SA" are rejected and "HALYVOURGIKI SA" is ordered to pay to PPC, on the one hand, 350,000 US dollars as well
as 288,373.14 euros for court costs and arbitration costs. The decision in question was served by PPC to
"HALYVOURGIKI SA" on 1.6.2021. The decision is subject to appeal against annulment before the competent
French courts within one month of service. HALYVOURGIKI SA challenged the arbitral award in question with an
action for annulment before the Paris Court of Appeal. It should be noted, however, that the action for annulment
does not affect the res judicata produced by the above Judgment of the Court, therefore, at the present time it is
not registered, as it no longer exists after the issuance in favor of PPC of the above Judgment of the Arbitration
Court, any provision for a claim against PPC from the case in question. The other party submitted an Opinion before
the French Court on 28.1.2022.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
261
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
PPC is also going to submit its Proposals on time (deadline until 28.6.2022). Furthermore, following an application
by the National Bank (of 23 February 2021) before the Single Member Court of First Instance of Athens for the
position of "HALYVOURGIKI SA" in a special management regime of articles 68-77 of law 43077/2014 (A'246 /
2014) and against on 5.4.2021, where the case was discussed, PPC, as well as Piraeus Banks and ALPHA,
exercised additional intervention in favor of the applicant Bank (National) and against Halyvourgiki.
Subsequently, the no. 990/2021 decision of the above court which rejected the appeal as abusively exercised and
therefore substance unfounded, including the additional interventions exercised.
It is noted that, according to the lawyers representing the National Bank, an appeal was to be filed, which will be
notified, which has not been notified so far at PPC.
HELLENIC HALYVOURGIA S.A
"HELLENIC HALYVOURGIA S.A" had filed before the Athens Multi-Member Court of First Instance against PPC
SA. the lawsuit dated 31.08.2010, by which he asked to be recognized that PPC SA must pay to STEEL GREECE
SA the amount of € 4,412,018.86, which corresponds to the amount included in the accounts issued by PPC SA,
after the unilateral increase by PPC of the High Voltage tariffs by 10% on the valid ones until 30.06.2008 Invoices,
for the period of consumption from 01.07.2008 to 30.04.2010, with the legal interest from the service of the lawsuit.
On the above lawsuit, the decision No. 3863/2014 of the Athens Multi-Member Court of First Instance was issued,
which partially accepted the lawsuit against which an Appeal was filed by PPC (as well as Additional Reasons),
which Rejection was rejected under No. 4702/2021 of the decision of the Athens Court of Appeal. The decision
recognizes that PPC SA must pay to HELLENIC HALYVOURGIA S.A the amount of € 4,412,018.86, with legal
interest from the service of the lawsuit until the full payment, as compensation for damage that, according to the
Decision in question, the other party suffered due to, inter alia, no previous negotiation with the other party of its
supply price electric power.
Following this, and given the recognizable character of the decision No. 3863/2014 of the Athens Multi-Member
Court of First Instance, which became final, the other party may request to collect the above awarded amount (of €
4,412,018.86, with legal interest). from the service of the action), if it takes the appropriate actions for its recovery.
PPC is going to appeal against the above decision of the Athens Court of Appeals.
Furthermore, the company submitted "an application for extension of preventive measures to suspend a complaint
of essential conventions on the operation of the undertaking referred to in Article 50 (4) No 4738/2020" by
"HELLENIC HALYVOURGIA SA" before the Athens multimember court during the trial of 12 January 2022, by which
it was applied within the framework of the already signed from 27.10. 2021 Agreement on resolution and transfer
of part of the assets of the company which was included in the above petition of its application, to be ordered by
the Court "as additional precautionary measures in its favor, the ban on termination of the current electricity supply
relationship of" HALYVOURGIA GREECE SA "with PPC as well as the ban on PPC declaration of cessation of
representation of the company's load meters, until the issuance of the Court decision on the application for
ratification of the Resolution Agreement. The Court accepted this request and granted an interim injunction until the
issuance of its decision on the request for ratification of the Resolution Agreement of "HALYVOURGIA HELLAS
SA".
Pricing of other High Voltage Customers (excluding LARCO)
The Contracts signed with High Voltage Customers expired on 31.12.2020. Due to this fact and according to the
Provisional Code, PPC has already expressed its proposal to those customers regarding the terms of pricing for
year 2021, while the relevant negotiations started. New Procurement Contracts have already been signed with most
of the large High Voltage industrial customers, while the relevant negotiations are in progress with the rest.
It is noted, however, that regarding the previous invoicing of Aluminum of Greece SA (now MYTILINEOS SA -
GROUP OF COMPANIES), on the one hand, the final decision on 11 December 2019 of the EU Court [C-332/18
P] was issued, which confirmed the legality of Commission Decision 2012/339 / EU of 13 July 2011 on State aid
SA.26117 - C 2/2010 (ex NN 62/2009), which was implemented by Greece, through PPC, in favor of Aluminum of
Greece SA (EU 2012, L 166, p. 83) and ordered the legal recovery of state aid amounting to € 17.4 million, due to
the application of the preferential tariff during the disputed period from 5 January 2007 to 6 March 2008. On the
other hand, three cases are pending before the General Court of the EU (T-639/14 RENV, T-352/15 and T-740/17)
against (corresponding) decisions of the European Commission, with which he filed (corresponding) complaints of
PPC for violation of provisions on state aid against the decision of RAE (346/2012, of 9 May 2012) and the
Arbitration Court, which set a temporary sale price of electricity of PPC against the then Aluminum A. E., 42 € /
MWh and decision of the special Arbitration Court (1/2013, of 31 October 2013), which amended the above decision
346/2012 of RAE reducing the electricity tariff provided to Aluminum for the period from 1 July 2010 to 31 December
2013 in a gross amount of € 40.7 / MWh, ie a net amount of € 36.6 / MWh.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
262
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
On 8 October 2020, the above three cases were heard before the General Court of the EU. It is pointed out that
Mytilineos had intervened in favor of the Commission. On 22 September 2021, the General Court of the European
Union issued its Judgment annulling both the TEN-639/14 RENV and T-352/15 and T-740/17 and ordered the
Commission to pay PPC's total legal costs. The Court accepted, in the grounds of the Decision, that in the present
case, “the Commission, ……. could not, on the one hand, not check whether the arbitral award entailed an
advantage; of the market. …. in this case, the particular circumstances which should lead the Commission to make
a diligent, adequate and complete examination of the possible award, through the arbitral award, of an advantage
to the intervener as well as of complex economic and technical considerations in that regard… [paragraphs 164
and 167 ]”.
The European Commission then challenged the judgment of the General Court of 22 September 2021 (in Cases T-
639/14 RENV, T-352/15 and T-740/17). Similarly, "Mytilineos SA" challenged this Decision. PPC submitted its
Memoranda on the above actions within the prescribed period (Case C-739/21 P and C-701/22). The deadline for
PPC to respond to the latest request is March 28, 2022.
PPC’s relation to its personnel’s Social Security Fund
Despite the fact that under the current legislation the Group does not have any obligation to cover in the future any
deficit between revenues and expenses to PPC’s personnel Social Security Funds, there can be no assurance that
this regime will not change in the future. PPC S.A. has not established a provision for the subject in question.
PPC’s audit by the European Commission's Directorate-General for Competition
In February 2017, the European Commission's Directorate-General for Competition conducted a drawn raid audit
to PPC in accordance with Article 102 of the Treaty on the Functioning of the European Union Regulation and
pursuant to the relevant decision of the Commission dated 01.02.2017, for alleged abuse of a dominant position on
the wholesale market for the generation of electricity from 2010 and onwards.
In March 2021, the European Commission announced that it has opened a formal antitrust investigation to assess
PPC's activity in the Greek wholesale electricity market. This investigation is in process.
ENVIRONMENTAL OBLIGATIONS
Key uncertainties that may impact the final level of environmental investments, which the Group will be required to
undertake, over the forthcoming decade, include:
1. During 2017, the Joint Ministerial Decision regarding the Environmental Terms for HPP Messochora was issued
under which PPC is obliged to undertake protection projects for the preservation part of the Messochora Village
(Sector D). After an appeal by the association of the Flooded Village of Mesochora "Acheloos" in the Council of State,
with a main demand the cancellation of the Decision regarding the Environmental Terms, invoking the historicity of
the Village, the CoS, with its 2230/2020 Decision, canceled the AEPO of Mesochora. As it is apparent from the
reasoning of the Decision, that the contested decision (AEPO) lost its legal basis as it did not grant a reappraisal of
the environmental conditions approved by the contested decision as to their compatibility with the approved updates
of River Basin Management Plans (RBMP) of Western Central Greece and Thessaly, as well as the forecasts of the
Revised Regional Spatial Planning Framework of the Region of Thessaly. It is noted here that the canceled AEPO
had examined and documented the environmental, social and economic feasibility of the project, and justified as well
as the inclusion of the project in par. 4 in exceptions to the objectives of Directive 2000/60 EC and the construction
of the project as purely energy project and not related to Acheloos Partial Diversion projects.
PPC has already initiated procedures for the re-drafting and submission of an Environmental Impact Assessment
(EIA) for the issuance of a new AEPO, following the below steps (Actions):
• Actions for the implementation of the process of informing the existence of the project in the existing Spatial
Plan of Thessaly (HS), due to the existing reference that is already made in the Map that accompanies the HS
for the HP.
• Actions to confirm the agreement of the Project with the River Basin Management Plan (RBMP), 1st revision
of the RBMP (2017), as it refers to the fact that the water bodies affected by the Mesochora HPP have been
examined and comply with the exemption rules Directive 2000/60 and remain in force.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
263
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
In relation to the compatibility actions of the project with the existing Spatial Plan of Thessaly, the Central Council of
Spatial Issues and Disputes met on 07.05.2021 and unanimously gave the opinion that the Hydroelectric Project (HP)
is compatible with the Regional Spatial Planning. The positive opinion of the central council of spatial issues and
disputes is a necessary step for the process of issuing the new Decision for the Approval of Environmental Terms
(AEPO).
Following the elaboration of the new Environmental Impact Study and its submission for approval to the competent
Public Authorities, from April 29, 2021, the new AEPO was issued on 21.12.2021 for the completion of the
MESOCHORAS HRD.
Under the terms of AEPO, an effort is made so that the resulting obligations of PPC, which depends on the completion
of actions by the competent local Bodies and Authorities, can be completed within 2024, in order to follow the Clogging
of the Diversion Tunnel and the start of filling of the Reservoir within the same year, with estimated operation of the
project in the last quarter 2025. The total cost for the project on December 31, 2021 (after impairments of € 8 million)
amounts to € 281.8 million, while it is estimated that another € 81.5 million will be required, until the completion of the
required expropriations in the area of the project as well as in the area of the relocation of the new Village.
2. In December 2010, the new Directive (2010/75/EU) was issued for industrial emissions (Industrial Emissions
Directive – IED), revising Directives IPPC and 2001/80/ EC, which is effective from January 6th, 2011. Following the
provisions of Article 32 of Directive 2010/75/EU, a Transitional National Emissions Reduction Plan (TNERP) for the
period 2016-2020 was elaborated and officially submitted by Greece to the EU at the end of 2012. The TNERP was
approved by the EU on November 26th, 2013.
The duration of TNERP was from 01.01.2016 until 30.06.2020 and the entire period of its validity PPC fully complied
with its objectives. With the expiration of MESME, Units I and II of Agis Ag. Dimitriou were included in a regime of
limited operation (from 01.07.2020, 1500 hours per year as a rolling average of five years), while in Units III, IV and
V the necessary environmental investments have been completed or are in the final stage of completion to continue
their operation.The delay that has occurred in some projects is mainly due to the restrictive measures to deal with the
pandemic.
Amyntaio and Kardia substations that had joined the restricted operation regime have already ceased operations
permanently.
3. In 2011, the process of revising the Reference Document on Best Available Techniques Manual for Large
Combustion Plants within the framework of Directive 2010/75/EU and is coordinated by the EIPPCB (European IPPC
Bureau) began. With the European Commission’s decision 2017/1442 on July 31st, 2017, the Conclusions on Best
Available Techniques for Large Combustion Plants – BREF LCP were determined under Directive 2010/75/EU. The
Decision was published in the Official Journal of the European Union on August 17th, 2017. Following the issuance,
of the legally binding, conclusions of the revised Manual, additional investments in PPC’s major thermal stations may
be required. In particular, further environmental investments in SES Agios Dimitrios are not planned, apart from the
investments that have been completed or are already in progress.
Finally, in the combined cycle units of Komotini and Lavrio V, small-scale upgrades of the combustion systems will
be implemented (total budget for both Units Euro 3.6 mil., the environmental part corresponding to the DLN Lavrio V
upgrade is Euro 3 mil.) to reduce NOx emissions.
To this date, requests for deviation from the emission levels of EA 2017/1442 / EU have been submitted based on
Article 15.4 of the IED for specific Units taking into account, inter alia, their remaining life time. After correspondence
with YPEN, the requests were resubmitted with updated information and finally approved by Decision YPEN/ DIPA /
124145/7794 / 27.12.2021 (ΑΔΑ: 9ΨΧ04653Π8-ΞΧΩ): “Approval of requests for inclusion of Atherinolakkos (Units I-
II), Melitis (Unit I), Megalopolis (Unit IV), Agios Dimitrios (Units I-II, III-IV, VE) of PPC and its subsidiaries in the
provisions of articles 12.4 and 27.1 of JM 36060/1155 / Ε.103 / 2013 (OG B’1450) as in force ". A corresponding
request will be considered if necessary for the new Ptolemaida V Unit.
4.On November 28th, 2015 Directive 2015/2193 of the European Parliament and the Council of November 25th, 2015
was published in the Official Journal of the European Union, on the limitation of emissions of certain pollutants into
the air from Medium Combustion Plants, regardless of the type of fuel used. Medium Combustion Plants are defined
as plants with a rated thermal input equal to or greater than 1 MWth and less than 50 MWth. Pollutants in question
are sulfur dioxide (SO2), Nitrogen oxides (NOx) and dust, while rules for monitoring carbon monoxide (CO) are
defined.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
264
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
Production units of such a size, operate mainly in the islands (engines and turbines). Also, in many of PPC’s SES,
there are many G/S and auxiliary boilers, but with limited operating time.
The provisions of the new Directive should be thoroughly examined by the competent departments of PPC, so as
together with the competent Greek authorities to timely promote the appropriate strategies for the electrification of
the islands with technically and economically viable solutions which should also be promptly implemented, and in any
case before the expiry of the deadline laid down by the Directive. For the existing units in Small Isolated Systems,
the compliance with the new Emission Limit Values will start from January 1st, 2030.
All the Aegean islands, starting from Crete, will be interconnected within the period 2020-2030, in accordance with
IPTO's Ten-Year Development Plan 2021-2030 and the National Energy and Climate Plan (NECP), while any
remaining electricity generation units will operate as a backup solution only in case of emergency in accordance with
the provisions of the Directive for these cases. It should be noted that the interconnection of Syros, Mykonos and
Paros has been completed since the first months of 2018.
5. The extent of land contamination is assessed by PPC for its liable facilities, following the provisions of art. 22 of
Directive 2010/75/EU and Environmental Terms Approval taking all appropriate precautionary measures
6.PPC has performed studies on the presence of asbestos-containing materials, at its facilities. Upon submission by PPC
of a full environmental impact assessment study, the Ministry of Environment issued in May 2004 the environmental
permit for the construction and operation by PPC, in its facilities in Ptolemaida area of an environmentally – controlled
Industrial Waste Management Area for the management and final disposal of asbestos containing construction
materials, from the plants of the Northern System. With the real estate transfer contract no. 37244 / 05.06.2015, which
is legally transcribed, PPC transferred full ownership of the Industrial Waste Management Area, located at the Kardia
Mine of the Western Macedonia Lignite Centre, in DIADYMA S.A. From the date of signing the contract, DIADYMA
S.A. is responsible for the Area’s management. It is pointed out that any dismantling / removal of materials containing
asbestos from PPC facilities is carried out by companies properly licensed for this purpose.
7. In April 2021, a new Decision of Approval of Environmental Conditions of the Amyntaio Mine was issued, replacing
the previous one of June 2020.
8. At their request before the CoC, two environmental protection bodies (a non-profit company and a public benefit
institution) request the cancellation of the failure of the Minister of Environment and Energy to amend, otherwise
replace, the decision approving environmental conditions (AEPO) of Unit P under construction. V, omission that
occurred after the tacit rejection of a corresponding request before the same Minister. In particular, they argue that
AEPO is flawed because the emission limits it sets for some gaseous pollutants do not comply with the limits set by
the European Commission Implementing Decision setting out the best available techniques [(EU) 2017/1442], based
on of Directive 2010/75 / EU on industrial emissions (IED Directive). According to the applicants, "the operation of
the Ptolemaida V Unit, as expected and resulting from its technical specifications, will not be able to meet the new
emission limits of the gaseous pollutants in question."
9.In addition to the other environmental obligations arising from the approvals of environmental conditions of the
Production Stations and Mines, in 2019 PPC voluntarily undertook the obligation to proceed with the dismantling or
alternative utilization of the facilities of all Production Stations and Mines and removal of their equipment, when these
facilities cease to be more productive, as well as in the restoration of land areas. For this liability, the required
provisions amounting to € 491.0 million were recognized on 31 December 2021 (31 December 2020: € 427.6 million)
for the Group and the Parent Company (Note 32). The above amount includes the cost of soil / subsoil rehabilitation
and dismantling of the units and mines of the two lignite subsidiaries since most of their years of operation were under
the responsibility of the Parent Company.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
265
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
INVESTMENTS
Metsovitiko Hydroelectric Power Plant (HPP)
Metsovitiko HPP of an installed capacity of 29 MW is expected to enter commercial operation in 01.01.2024. Future
contracted capital expenditures as of December 31, 2021 amounts to € 13.48 mil.
A new Steam Electric Unit 660 MW in Ptolemaida
With the agreement Convention 11 09 5052 of Thermal Projects Engineering – Construction Department, that
entered into force on 21.03.2013, the execution of the Project: "SES PTOLEMAIDA - Study, supply, transportation,
installation and commissioning of a new Unit V of mixed capacity 660 MW, with powder lignite fuel, and ability to
generate thermal power 140 MWth for district heating", was assigned to the company TERNA SA for a Contractual
Consideration of €1.388 bil. Following the issuance of Supplement No.1 and No.2, the Total Contractual
Consideration amounts to €1.389 bil. Future contracted capital expenditures as of December 31, 2021 amounts to
€106 mil.
Hybrid Project in Ikaria Island
The Hybrid Energy Project in Ikaria "Naeras" of 6.85 MW total capacity, is an innovative project which was
inaugurated on June 5th, 2019. Naeras combines the utilization of two renewable energy sources, Wind and
Hydroelectric. The automated operation of the Project has been completed in 2021.
Research, Development and Exploitation of Geothermal potential
PPC RENEWABLES has leased from the Greek State the geothermal potential Research and Management rights
of four (4) public mining sites: a) Milos-Kimoios-Polyagos, b) Nisyros, c) Lesvos and d) Methana. While maintaining
the exclusive Exploration and Management rights, the Company sought a Strategic Partner to co-exploit the
geothermal potential of the above areas through an international tender. Binding offers were submitted by June
2018 and in July 2018 the “Highest Bidder” and the “Reserved Bidder” were announced.
In March 2020 the Ministry of Environment and Energy approved the establishment by PPC RENEWABLES of a
subsidiary named “Geothermal Target II S.A.”, which will undertake the development of geothermal power plants in
these areas.
Subsequently, the BoD of PPC RENEWABLES S.A. decided on 25.06.2020 (DA / DS / 387 / 25.06.2020), the
announcement of the company ELECTOR SA (HELECTOR S.A.) as the "Preferred Partner" and the approval of
the Contractual Texts, namely the Cooperation Agreement (CA), the Shareholder Agreement (SHA) and the Share
Purchase Agreement (SPA).
Following the approval of the merger between PPC RENEWABLE and Elector by all competent Competition
Committees (Greece, Serbia, Albania and Northern Macedonia) on 15.07.2021, the transaction completion
procedure was followed, as provided in the above Agreement.
On 05.11.2021 the contracting parties (PPC RENEWABLES, AEGEAN GEOENERGY and ELECTOR) signed the
above Contractual Texts and after all the other conditions (CPs) that had been set in the Contract for Sale (SPA)
were fulfilled. AEGEAN GEOENERGY entered on 05.11.2021 as a majority shareholder (with 24,480 shares), ie
51% of the share capital in the company Geothermal Target TWO II SA.
PPC Renewables continues the research work in these areas, while at the same time the works of the year 2022
are being prepared.
Construction of Photovoltaic (PV) Plant by “ILIAKA PARKA DYTIKIS MAKEDONIAS ENA S.A.” a 100%
subsidiary of PPC Renewables S.A.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
266
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
Construction works from the 100% subsidiary of PPCR, “ILIAKA PARKA DYTIKIS MAKEDONIAS ENA S.A.”, for
the PV Plant of 14.99MW capacity, with fixed tilt mounting structure, and the 20/150kV “Agios Christoforos”
Substation, which will include a 20/25MVA power transformer, of a total contractual budget of Euro 9.7 mil. at
“Paliampela” plot, in the regional unit of Kozani, are in the final stages of completion. It is expected that the semi-
commercial operation of the PV Plant will start in April, 2022. On December 31
st
, 2021 the total cost of the project
amounted to Euro 7,72 mil.
Construction of Photovoltaic (PV) Plant by “ILIAKA PARKA DYTIKIS MAKEDONIAS DYO S.A.” a 100%
subsidiary of PPC Renewables S.A.
Construction works from the 100% subsidiary of PPCR, “ILIAKA PARKA DYTIKIS MAKEDONIAS DYO S.A.”, for
the PV Plant of 14.99MW capacity, with horizontal single-axis trackers, and the 33/150kV “Charavgi” Substation,
which will include a 20/25MVA power transformer, of a total contractual budget of Euro 11.5 mil. at “Xiropotamos”
plot, in the regional unit of Kozani, are in the final stages. It is expected that the semi-commercial operation of the
PV Plant will start in April 2022. On December 31
st
, 2021 the total cost of the project amounted to Euro 7,1 mil..
Construction of Photovoltaic (PV) Plant by “ILIAKO VELOS ENA S.A”
The works for the construction of the PV Station, from the 100% subsidiary of PPC RENEWABLE, "ILIAKO VELOS
ENA SOCIETE ANONYME", with a total power of 200MW, with single axis trackers for the support of the PV panels
and the of 33kV / 150kV Substations "Haravgi" and "Agios Christoforos" with the implementation of three new gates
M / S 33kV, with a total budget of € 83.8 million, at the location "Lignite Center of Western Macedonia" of the
Prefecture of Kozani, started in June 2021. It is estimated that the PV Station will be put into semi-commercial
operation in December 2022.
As of December 31, 2021 the total cost for the project amounts to € 3,29 million.
Construction of Photovoltaic (PV) Plants by “ARKADIKOS ILIOS I S.A” and “ARKADIKOS ILIOS II S.A.”
The works for the construction of the PV Stations, from the 100% subsidiaries of PPC RENEWABLES,
"ARKADIKOS ILIOS I S.A" and "ARKADIKOS HELIOS II S.A”, of 39 MW & 11 MW respectively" support of the
Double sided PV Panels and a 33 / 150kV substation, with a total budget of € 23.9 million, at the location "Megales
Lakkes" of the Prefecture of Arcadia, started in September 2021. It is estimated that the PV Stations will be put into
semi-commercial operation in November 2022. Currently, the Contractor is in the process of preparing the Final
Implementation Study and updating the relevant licenses.
It should be noted that "ARKADIKOS ILIOS I S.A" will participate in the market with the corresponding PV Power
Plant 39MW, under the Target Model, through the conclusion of a bilateral contract for the purchase and sale of
electricity (bilateral PPA) while “ARKADIKOS ILIOS II S.A" has secured a Reference Price for the respective
Photovoltaic Power Station of 11MW, after its successful participation in the RAE’s bidding process in July 2020.
On December 31, 2021 the total cost for the project amounts to 424 thousand € for ARKADIKOS ILIOS I S.A and
302 thousand € for ARKADIKOS ILIOS II S.A.
Construction of Photovoltaic (PV) Station AGIOS CHRISTOFOROS 1
For the construction of the PV Station AGIOS CHRISTOFOROS 1, power 64,983MW with fixed support systems of
the PV Frames and the expansion works of the 150kV Substation "Agios Christoforos" with the addition of a new M
/ S 33 / 150kV, in the Municipality of Eordia, Π.Ε. Kozani, with a price of € 31.8 million. The signing of the Contract
is expected in April 2022.
Regarding the licensing process, the Project has already received a Producer Certificate, AEPO and a Final
Connection Offer from IPTO SA.
Repowering of Wind Park in Monis Toplou Sitia Crete
The construction works of the new Wind Farm with a total capacity of 6 MW in Sitia, Crete were completed in 2021.
The electrification of the facilities was completed in June 2021 and is now in operation since July 2021.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
267
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
Wind Park in Xerakias, Kefalonia
The construction of the Wind Farm at Xerkias Dilinaton in the municipality of Kefalonia, Ionian Islands, with a
capacity of 9.2 MW has been completed. The electrification of the facilities has been completed in July 2021 and is
now in operation since July 2021.
Wind Park in Aera of Karditsa
During 2018, a tender for the Study, Supply, Transportation, Installation and Commissioning of One (1) Wind Park
at the locations of "Aera" of the Municipality of Mouzaki and "Afentiko" of the Municipality of Argithea and One (1)
High Voltage Center 20/ 400 KV, Power 100 MVA of closed type with gas insulated equipment, at the location
"Diaselo-Pr. Elias" of the Municipality of Mouzaki, Regional Unit of Karditsa, was completed for a contractual budget
of Euro 43 mil.. The project will be of 27.6 MW total capacity. The construction began in February 2019, however,
there were significant delays in the work schedule due to the time-consuming administrative procedures required
to issue the relevant permits, the extremely adverse weather conditions and unforeseen geological conditions which
required additional work. As of today though, all the required permits have been issued and the construction work
is at a high pace. The completion of the construction of the project is expected within 2022.
The total cost for the project on December 31, 2021 amounts to € 39,99 million.
Repowering of Small Hydroelectric Power Station (SHPS) Louros
On July 9
th
, 2020, SHPP Louros (3 X 2.9 MW) was put into semi-commercial operation with initially limited capacity.
The Renovation Project included the elaboration of an Implementation Study, the renovation of the PM Projects
(Production Station, Aqueduct, Supply Projects - Safety Valve - Fall Pipeline, Medium Voltage Area) and the supply
- installation - commissioning of new PC equipment (PC). Generators, Input Valves, Power Transformers, Medium
and Low Voltage Panels, Grill Cleaner, etc.)
On 09.11.2020 the semi-commercial operation was completed (for a duration of 4 months) and the commercial
operation of the Project started, which is expected to last until 09.11.2021 (warranty period 12 months).
The adjacent Louros Substation, with a power increase to 40 / 50MVA, was electrified on 27.09.2021 in its new
form, with the relevant infrastructure, under the responsibility of IPTO SA.
The new gate at Louros Substation (projects of HEDNO S.A.) concerning the Louros SHPP was activated on
05.12.2020 and SHPP was put into operation again on 07.12.2020, with favorable hydrological conditions and
without the power restrictions of HEDNO S.A.
The adjacent Louros Substation, with a power increase to 40 / 50MVA, was electrified on 27.09.2021 in its new
form, with the relevant infrastructure, under the responsibility of IPTO SA.
Construction of Small Hydroelectric Power Plant (SHPP) Smokovo II
The Contract for the Construction of the Smokovo II SHPP (3.2 MW), is in force since 17.10.2019 with a contractual
budget of Euro 3.7 million. The Project includes the elaboration of the Implementation Study, the Civil Engineering
Projects (Production Station, Evacuation Canal - Adjustment Hopper, Introduction Pipe 1800) and the supply -
installation - commissioning of the Electromechanical equipment (Turbines - Double Gates - Double Gates ,
Generators, Power Transformers, Medium and Low Voltage Panels, etc.) The SHPP is being constructed near the
facilities of the Ministry of Infrastructure - Transport (Energy Destruction Project - Irrigation Irrigation Regulation
Project), downstream of the Smokovo dam and then of the Leontari tunnel. The irrigation period lasted from
10.4.2021 to 30.8.2021, from the adjacent closed irrigation network and with successful hydraulic isolation of the
HPP facilities, which allowed the uninterrupted execution of works. The Project has been implemented by 93% and
within July 2022 the Temporary Acceptance is expected. The building of SHPP and the corresponding assembly
works (supply pipeline 1800, escape duct, adaptation hopper of SHPP) have been completed, the E / M Equipment
of the Project has been fully installed, while the Interconnection Network has been constructed by HEDNO SA.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
268
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
Construction of Small Hydroelectric Power Plant (SHPP) Makrochori II
The Contract for the Construction of SHPP Makrochori II is in force from 3.6.2020, with a contract price of € 7.4
million.
The Project includes the elaboration of the Implementation Study, the PM Projects (Generation Station, Advance
Canal, Evacuation Canal, Barrier Wall, Gates) and the supply - installation - commissioning of E / M equipment
(Turbines, Power Generators, Transformers, Transformers and Low Voltage, Grill Cleaner, etc.). The excavation
works of the Diaphragm Wall lasted during the period 12.4.2021 to 02.11.2021, while the excavation works of the
Ejection Trench and the excavation works around the building of the MYIS and the Ejection Trench have almost
been completed. At the same time, the Project Implementation Study is being prepared, while the Main and Auxiliary
Electromechanical Equipment (Hydroturbines, Electric Generators, Clogging Beams, etc.) are under
industrialization. The Project is expected to be electrified in the fourth quarter of 2022, while during the current
period the disbursement progress is approximately 21%.
Repowering of Small Hydroelectric Power Station (SHPS) Vermio
The Renovation Project includes the elaboration of an Implementation Study, the renovation of the PM Projects
(Generation Station, Dam, Introduction Works, Reservoir) and the supply - installation - commissioning of new E /
M equipment (Turbines, Electric Generators, Torches, Inlet Switches Medium and Low Voltage Panels, Grill
Cleaner, etc.).
The Construction Contract was signed on 14.10.2021, with a contract price of € 3.7 million € and its completion is
expected in March 2023.
The licensing process has been completed (Terms of Connection, Installation Permit, Building Permit), while during
the current period the Project Implementation Study is being prepared.
Construction of a Small Hydroelectric Project (SHPP) Ladonas
The SHPP Ladonas, with a capacity of 10 MW, is located on the river Ladonas, downstream of the existing Ladonas
HPP of PPC SA, within the regional unit of Arcadia and the Municipality of Gortynia, about 120km from Tripoli. The
project is implemented by the participating company PPC - TERNA SA and includes:
• head and water intake works (0.5km downstream of the HPP escape canal)
• the water supply system
• the production station (in a position 3km downstream of the head projects)
• the main and auxiliary electromechanical equipment (E / M)
• interconnection projects
The Project is designed to be run-of-river, με ονομαστική παροχή Q=38 m
3
/s
The Installation Permit of the Project was issued on 29.01.2021.
The Final Study of Civil Engineering Projects was submitted on 19.04.2021.
During the current period, actions are taken for the finalization of the technical and contractual-financial object of
the Project, the selection of an E / M equipment supplier and the completion of the issues of the Construction
Contract.
Construction of Small Hydroelectric Project (SHPP) Theisoa
The Theisoa NPP (5 MW - 16.4GWh), is located on the river Alfeios, within the regional unit of Ilia, the Municipality
of Andritsaina - Krestena, the Local Community of Theisoa. The project is implemented by the participating company
PPC RENEWABLE SA (49%) - NANCO ENERGY SA (51%), which also owns SHPP Gitanis (4.2MW). SHPP
Theisoa includes a low dam of 18m height, with water intake on the left side, and with a production station integrated
inside the dam, on the left buttress.
The main and auxiliary electromechanical (E / M) equipment includes 2 Kaplan Hydro Turbines with respective
Electric Generators, Power Transformers, Medium and Low Voltage Panels, Grill Cleaner. The Project is designed
to be run-of-river, with Q=2x15=30 m
3
/s. The Producer Certificate was issued on 06.10.2021 by the Energy
Regulatory Authority, following a relevant application in the June cycle.
During the current period, the final Hydrological Study of the Project is under preparation.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
269
40. COMMITMENTS, CONTINGENCIES AND LITIGATION (CONTINUED)
Construction of a Small Hydroelectric Project (SHP) Pournari III
The SHP Pournari III (0.7MW - 4.1GWh), is located downstream of the Pournari II of PPC SA (Regional Unit of
Arta). The project utilizes energy for the ecological supply of the river Arachthos, which until today flows
freely from the overflow of the right bank.
The SHP has a nominal flow of 7 ÷ 12 m
3
/sec and a fall height of 6.5 m.
During the current period, the licensing of the Project is in progress, while the preparation of the Final Study will
follow.
Cooperation with RWE Business Group for the joint development of RES projects
In March 2020, the Group signed a memorandum of cooperation with RWE Renewables GmbH for the development
of RES projects in Greece through PPC RENEWABLE, in the context of the de-lignification strategy, but also its
wider focus in the field of renewable energy sources.
In October 2021, PPC Renewables SA and RWE Renewables GmbH have signed the Joint Venture Formation
Agreement and the Shareholders' Agreement, with the aim of jointly contributing and implementing photovoltaic
stations with a total installed capacity of up to 2 GW through a JV investment vehicle (JV). In this context, in August
2021, 9 subsidiaries were established (companies "AMYNTAIO") in Amynteo, Florina, for the creation of
photovoltaic projects with a total capacity of up to 940 MW, which are located in Western Macedonia, within the
former Lignite Mine Amyntaio.
In January 2022, the process of establishing a public limited company was completed, under the name METON
ENERGIAKI SA. PPC Renewables contributed in kind its nine subsidiaries AMYNTAIO which were valued at €
75,185 by Certified Public Accountants and acquired 49% of it, while RWER, contributing the amount of € 78,254
to METON Energy, acquired 51% of it. At the same time, RWER has already secured a portfolio of photovoltaic
projects of a similar size in Greece, which is expected to be contributed to METON in 2022.
Photovoltaic projects are in various stages of development; The first projects are expected to start operating in
2023.
Domestic project development agreements aimed at expanding and strengthening the RES portfolio
As part of the expansion of its portfolio, PPC Renewables signed investment agreements with three Greek private
companies, Pivot, Teichio and Baliaga, for the development of a PV portfolio of projects with a total capacity of
approximately 2GW in Greece.
Memorandum of Cooperation with the Cyprus Electricity Authority (EAC)
In July 2021 the Cyprus Electricity Authority (EAC) and PPC SA signed a Memorandum of Cooperation. The
agreement, part of the development of the two Organizations, includes, among other things, the desire to strengthen
cooperation and exchange experiences in the fields of electricity and gas.
The memorandum of cooperation has included regulatory issues for the operation of the Electricity Market.
Memorandum of cooperation with ELINOIL
In June 2021, PPC SA and ELINOIL SA proceeded to the signing of a Memorandum of Understanding (MoU) with
the aim of expanding activities in the provision of e-mobility services.
According to the MoU, the two parties will investigate the points of the network of ELINOIL gas stations nationwide
that can be used for parking and charging of electric vehicles and are committed to the joint promotion of e-mobility
services and declare mutual intention for further synergies that can arise.
In this context, PPC will undertake to install chargers for electric vehicles at ELINOIL gas stations in sections and
in individual phases.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
270
41. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuing technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value and are not based on
observable market data.
During the reporting period there were no transfers between level 1 and level 2 fair value measurement, and no
transfers into and out of level 3 fair value measurement.
The following tables compare the carrying amount of the Group’s and the Parent Company’s financial instruments
that are carried at amortized cost and their fair value:
Carrying amount
Fair value
Group
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Financial Assets
Trade receivables
1,100,625
708,679
1,100,625
708,679
Restricted cash
65,856
58,702
65,856
58,702
Cash and cash equivalents
2,832,351
815,640
2,832,351
815,640
Financial Liabilities
Long-term borrowings
4,416,270
4,027,255
4,416,270
4,027,255
Long- term financial liabilities from the
securitization of trade receivables
229,475
123,465
229,475
123,465
Trade payables
970,072
1,428,758
970,072
1,428,758
Short- term financial liabilities from the
securitization of trade receivables
150,620
11,688
150,620
11,688
Short-term borrowing
271,337
42,152
271,337
42,152
Carrying amount
Fair value
Parent Company
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Financial Assets
Trade receivables
875,909
554,619
875,909
554,619
Restricted cash
48,278
52,803
48,278
52,803
Cash and cash equivalents
2,512,204
626,940
2,512,204
626,940
Financial Liabilities
Long-term borrowings
2,931,005
2,405,718
2,931,005
2,405,718
Long-term financial liabilities from the
securitization of trade receivables
229,475
123,465
229,475
123,465
Trade payables
480,202
1,171,262
480,202
1,171,262
Short- term financial liabilities from the
securitization of trade receivables
150,620
11,688
150,620
11,688
Short-term borrowing
260,000
30,000
260,000
30,000
The fair value of trade receivables and trade payable accounts approximates their carrying amounts.
The fair value of property, plant and equipment (except mines, lakes and construction in progress which are valued
at their cost less accumulated depreciation and impairment losses) is included in Level 2 of the fair value hierarchy.
As of December 31
st
, 2021, the Group and the Parent Company held the following financial instruments measured
at fair value:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
271
41. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)
Carrying amount
Fair value Hierarchy
Financial Assets
31.12.2021
31.12.2020
Group
Financial Assets at fair value through Other
Comprehensive Income
327
866
Level 1
Derivative Financial Instruments
76,908
4,803
Level 1
Parent Company
Financial Assets at fair value through Other
Comprehensive Income
325
646
Level 1
Derivative Financial Instruments
76,908
4,803
Level 1
There were no transfers between Level 1 and 2 of the fair value hierarchy and transfers to / from Level 3 for the
calculation of the fair value of financial receivables and liabilities for the year ended 31 December 2021.
Financial Risk Management Policies
Fair Value
The amounts reflected in the accompanying balance sheets for cash, current assets and current liabilities
approximate their respective fair values due to their short-term maturity.
The fair values of financial Assets at fair value through Other Comprehensive Income that are traded on stock
markets are based on their quoted market prices at the balance sheet date.
The carrying values of long-term borrowing approximate their fair value as these loans are in local currency and
mainly of floating interest rate.
For derivative financial instruments, their fair values are confirmed either by financial institutions with which the
Group has entered into the relevant contracts or on the basis of their stock prices of the derivative futures market.
Interest rate risk and foreign currency risk
The Group’s and the Parent Company’s debt obligations consist of bank loans, bonds and overdraft facilities. It is
the Group’s and the Parent Company’s policy to have a balanced distribution of the loan portfolio between fixed
and floating interest rates according to the prevailing conditions and to hedge on a case by case basis through
derivatives, solely to mitigate risk, against the fluctuation of floating interest rates and/or foreign currency exchange
rates affecting their debt portfolio. The Debt is in Euro.
Furthermore, the fluctuation of the Euro against the U.S. dollar exchange rate may adversely impact the prices of
the Parent Company’s liquid fuel purchases (diesel and heavy fuel oil). As oil prices are expressed in U.S. dollars,
the Parent Company is exposed to foreign currency risk in the event of an appreciation of the U.S. dollar against
the euro. In order to mitigate the foreign currency risk arising from liquid fuel purchases, the Parent Company
examines the possibility of undertaking, on a case by case basis and according to the prevailing market liquidity
circumstances, hedging transactions for this risk. It should be noted that any undertaken hedging transactions may
not provide full or adequate protection against these risks.
The following table presents the sensitivity analysis to pre-tax income from reasonable possible interest rate
fluctuations with the other variables remaining fixed, through the effect on existing floating rate borrowing (in millions
of Euro):
Increase /
Decrease in
basis points (%)
Effect on profit
before tax
(Group)
Effect on profit
before tax
(Company)
2020
Εuro
50
(10.8)
(10.8)
Εuro
(50)
10.8
10.8
2021
Εuro
50
(8,7)
(8,5)
Εuro
(50)
8,7
8,5
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
272
41. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)
Liquidity Risk
The Group and the Parent Company face liquidity risk, which may result in additional working capital requirements,
due to a number of factors relating to their ability to timely collect from their customers, including:
• delays in the payment or non-payment of energy bills, which may increase if economic conditions in Greece
deteriorate;
• the obligation of the Parent Company to pay the Renewables special levy, the special consumption tax on
electricity, as well as VAT when due, irrespective of whether relevant amounts have been collected from the
Group’s and the Parent Company’s customers;
• the burden associated with the collection of taxes and levies that are not related to the sale of electricity such
as municipal taxes and levies that are currently collected through electricity;
• the increase of vulnerable customers, such as low-income families, the long-term unemployed, people with
disabilities and people with mechanical support, who are entitled to lower tariffs; Incidents of power outages
and unauthorized reconnection of electricity supply in cases of interruption of connection due to default by
customers.
The Group and the Parent Company may also face, increased working capital requirements following decisions by
the Regulator, in relation to their payments to and from other market operators that could have a significant effect
on their liquidity.
In addition, the Group’s and the Parent Company’s ability to manage their working capital requirements and liquidity
risk depends, in part, on maintaining positive relationships with their suppliers. If they are unable to maintain current
working arrangements with their suppliers, working capital requirements could materially increase and result in
increased liquidity risk, which may have a material adverse effect on their business, financial condition and results
of operations.
The contractual maturities of the main financial liabilities (borrowings), not including interest payments are as
follows:
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
273
41. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)
(In mil. Euro)
On
demand
3
months
3 to 12
months
≥ 1 to 5
years
> 5 years
Total
Year ended 31
December 2020 (Group)
Overdraft facilities
-
39.88
2.28
-
-
42.16
Short term borrowings
-
-
-
-
-
-
Long term borrowings
-
146.28
416.95
2,563.47
982.08
4,108.78
-
186.16
419.23
2,563.47
982.08
4,150.94
Year ended 31
December 2021 (Group)
Overdraft facilities
-
268.24
-
-
-
268.24
Short term borrowings
-
-
-
-
-
Long term borrowings
-
102.96
272.78
3,095.02
1,041.51
4,512.49
-
371.21
272.78
3,095.02
1,041.51
4,780.73
Year ended 31
December 2020
(Company)
Overdraft facilities
-
30
-
-
-
30
Short term borrowings
-
-
-
-
-
-
Long term borrowings
-
146.28
416.95
2,539.46
909.59
4,012.30
-
176.28
416.95
2,539.46
909.59
4,042.30
Year ended 31
December 2021
(Company)
Overdraft facilities
-
260.00
-
-
-
260.00
Short term borrowings
-
-
-
-
-
-
Long term borrowings
-
49.78
176.28
2,259.65
537.65
3,023.38
309.78
176.28
2,259.65
537.65
3,283.38
Future interest payments on loan financial liabilities, excluding accounts receivable are as follows:
Group (in million €)
Future interest
payments
On
demand
3 months
3 to 12
months
≥1 to 5
years
> 5 years
Total
31 December 2021
-
31.91
90.02
319.79
36.98
478.70
31 December 2020
-
34.78
94.48
416.00
62.46
607.72
Parent Company- Continued operations (in million €)
Future interest
payments
On demand
3
months
3 to 12
months
≥1 to 5
Years
> 5 years
Total
31 December 2021
-
24.98
69.20
250.32
9.45
353.95
31 December 2020
-
26.75
71.02
326.2
27.7
451.7
Market risk
Parent Company
Within 2021, the CO2 adjustment clause in the Low Voltage Electricity tariffs was replaced by a new one of the
supply charge adjustment clause based on the fluctuation of the Purchase Clearance Price and was included in the
Medium Trend (Note 3 Commercial Policy). The Group and the Parent Company remain exposed to the fluctuation
from High Voltage energy tariffs and fixed charge tariffs. The following is an analysis of the effect of the change in
the Purchase Clearance Price.
Purchase clearance price
(Mw/h)
Group
Parent
company
Variance in unit price
1 €
1 €
(+ one euro)
(+ one euro)
Impact-burden 2022
€ 6 mil.
€ 5 mil.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
274
41. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)
Progression of net debt ratio
The Group’s net debt/equity ratio is as follows:
2021
2020
(Restated)
Long-term borrowing
4,062,638
3,480,453
Current portion of long-term borrowing
353,632
546,802
Short-term borrowing
271,337
42,152
Cash
(2,832,351)
(815,640)
Pledged deposits
(53,323)
(53,535)
Financial assets measured at fair value through other
comprehensive income
(327)
(866)
Unamortized portion of loans’ issuance fees
88,166
84,235
TOTAL
1,889,772
3,283,601
Shareholders’ equity
5,079,007
3,085,166
Net debt/equity ratio
37%
106%
It is noted that the deducted amounts of the pledged deposits in the above table refer only to pledged deposits
related to loan agreements.
In long-term borrowing, as presented above, the unamortized portion of loan issuance fees of Euro 88 mil.,
approximately is not included (2020: Euro 84 mil. approximately) (Note 30).
42. LEASES
Leases: the Group and the Parent Company as Lessee
The Group and the Parent company have signed contracts for the lease of property, transportation assets, other
equipment and vessels that they use for their activity.
Part of the leases of transportation assets and other equipment fall under the recognition exemption as they concern
either short-term leases or low-value leases. Property leases relate to leases with a lease term between 2 and 10
years, (except for the property of the former military camp “Plessas Michael" as below), while time-chartered vessels
concern leases with a lease term 6 to 24 months.
In March 2020 the BoD of the Parent Company decided to set up a 100% subsidiary "PPC Project of the
Mediterranean Sole Proprietorship SA" whose purpose will be the implementation of the lease agreement of the
property of the former military camp “Plessas Michael" "which was awarded to the SA National Defense Fund (NDF)
after a public bidding and more broadly, the undertaking of the best possible way of use and exploitation, the
necessary during the declaration demolition of existing buildings and construction of new ones, as well as the
relocation of services of PPC SA in this.
PPC SA on 3 July 2020 signed the said lease agreement, the duration of which is set at 50 years with a right of
extension of 10 years and an annual rent of € 2.7 million which will be adjusted every five years based on the
consumer price index. Also, due to the substantial costs that will be required for the reconstruction, reconstruction
and relocation of the Units of the camp, PPC is given the right not to pay rent in the first year of rent, while for the
next four years of rent the payment of 50% of the rent of the property .
The new building complex that will be built will become the property of the lessor after the termination or termination
of the lease. The right to use the property due to lease was recognized in the financial statements of the Group and
the Parent Company on September 30, 2021, date when the lease is now available for use as the relocation of the
Camp Units was completed and the leased space was handed over to PPC.
The relevant right of use and financial obligation recognized on September 30, 2021 amounts to € 69 million taking
into account the remaining 49 years of the lease and considering that PPC will exercise the right to extend the lease
for 10 years.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
275
42.LEASES (CONTINUED)
The following table contains the acquisition value of the rights of use of fixed assets and the value of the financial
liabilities of the right of use of fixed assets as well as their movement during the year ended 31 December 2021 and
31 December 2020:
GROUP
ASSETS
PROPERTY
OTHER
EQUIPMENT
TRANSPORTATION
ASSETS
VESSELS
SOFTWARE
TOTAL
31.12.2019
51,134
3,080
6,197
6,782
-
67,193
Additions
7,730
5,223
787
9,524
-
23,263
Reductions
(3,925)
-
(96)
-
-
(4,021)
Depreciation
expense
(9,225)
(3,381)
(1,970)
(7,285)
-
(21,861)
31.12.2020
45,714
4,922
4,918
9,021
-
64,575
Additions
83,577
225
8,876
-
1,442
94,120
Reductions
(2,052)
(1,761)
(165)
-
-
(3,978)
Depreciation
expense
(9,982)
(2,074)
(2,185)
(5,700)
(206)
(20,147)
31.12.2021
117,257
1,312
11,444
3,321
1,236
134,570
LIABILITIES
31.12.2019
51,428
3,132
6,229
6,903
-
67,691
Additions
6,319
4,458
768
9,524
-
21,069
Early
termination
(2,573)
765
(26)
-
-
(1,834)
Finance cost
2,171
157
252
307
-
2,888
Payments
(10,557)
(3,543)
(2,119)
(7,606)
-
(23,825)
31.12.2020
46,789
4,968
5,105
9,128
-
65,990
Additions
83,977
225
8,663
-
1,460
94,326
Early
termination
(2,257)
(1,734)
(182)
-
-
(4,173)
Finance cost
3,056
173
167
290
16
3,702
Payments
(11,505)
(2,860)
(2,135)
(5,993)
(217)
(22,711)
31.12.2021
120,060
772
11,618
3,424
1,259
137,133
LIABILITIES 31.12.2020
Current
8,017
2,443
1,628
5,703
-
17,791
Non-Current
38,772
2,525
3,477
3,424
-
48,198
LIABILITIES 31.12.2021
Current
9,767
558
3,093
3,424
830
17,672
Non-Current
110,293
214
8,525
-
429
119,461
In the following table contractual maturities of the Group's lease liabilities as of December 31
st
, 2021 are
presented :
PROPERTY
OTHER
EQUIPMENT
TRANSPORTATION
ASSETS
VESSELS
SOFTWARE
TOTAL
Up to 12 months
13,228
578
3,524
3,490
869
21,689
1 to 5 years
40,892
217
9,139
-
435
50,683
More than 5
years
215,040
-
-
-
-
215,040
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
276
42.LEASES (CONTINUED)
PARENT COMPANY
ASSETS
PROPERTY
OTHER
EQUIPMENT
TRANSPORTATION
ASSETS
VESSELS
TOTAL
31.12.2019
31,379
2,260
664
6,782
41,084
Additions
1,636
600
730
9,524
12,490
Reductions
(743)
-
-
-
(743)
Depreciation
expense
(5,398)
(1,903)
(799)
(7,285)
(15,385)
31.12.2020
26,874
957
595
9,021
37,447
Additions
79,452
172
1,213
-
80,838
Reductions
(1,689)
-
-
-
(1,689)
Depreciation
expense
(6,463)
(989)
(676)
(5,700)
(13,827)
31.12.2021
98,174
141
1,133
3,321
102,768
LIABILITIES
31.12.2019
32,192
2,296
674
6,903
42,065
Additions
1,636
601
730
9,524
12,491
Reductions
(778)
-
-
-
(778)
Finance cost
1,419
69
32
307
1,827
Payments
(6,206)
(1,990)
(832)
(7,606)
(16,634)
31.12.2020
28,263
976
604
9,128
38,971
Additions
79,452
172
1,213
-
80,838
Reductions
(1,772)
-
-
-
(1,772)
Finance cost
2,065
27
32
290
2,413
Payments
(7,323)
(1,030)
(706)
(5,993)
(15,052)
31.12.2021
100,686
145
1,143
3,425
105,398
LIABILITIES 31.12.2020
Current
4,910
898
485
5,703
11,996
Non-Current
23,353
78
119
3,425
26,975
LIABILITIES 31.12.2021
Current
6,463
145
542
3,424
10,573
Non-Current
94,223
-
602
-
94,825
In the following table contractual maturities of the Parent Company’s lease liabilities as of December 31
st
, 2021
are presented:
PROPERTY
OTHER
EQUIPMENT
TRANSPORTATION
ASSETS
VESSELS
TOTAL
Up to 12 months
9,196
146
569
3,490
13,401
1 to 5 years
28,789
-
632
-
29,421
More than 5 years
205,882
-
-
-
205,882
The amounts recorded in the Statement of Income are as follows:
Group
31.12.2021
31.12.2020
Rights in use assets depreciation expense (Note 9)
20,147
21,861
Finance cost (Note 11)
3,701
2,888
Short term lease expenses
9,310
5,759
Low value lease expenses
1,354
1,626
Total
34,512
32,134
PARENT COMPANY
31.12.2021
31.12.2020
Rights in use assets depreciation expense (Note 9)
13,827
15,385
Finance cost (Note 11)
2,413
1,827
Short term lease expenses
8,038
5,620
Low value lease expenses
154
425
Total
24,432
23,257
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
277
42.LEASES (CONTINUED)
The Group and the Parent company paid for leases in 2021 a total amount of Euro 33,375 and Euro 23,243
respectively.
Lease obligations are secured by the landlord's title deeds. There are contracts that include a term of extension or
early termination of the lease and a term of increase of rents based on the consumer price index (variable rents).
The Group and the Parent Company have the right for some leases, to extend the duration of the lease or the option
to terminate the contract. The Group and the Parent Company assess whether there is reasonable certainty that
the relevant right will be exercised, taking into account all the factors that create financial incentive, to exercise the
right of renewal or termination.
The Group and the Parent Company on December 31, 2021 from the evaluation they made, concluded that for all
lease agreements that give the right of extension, except for the lease of house agreements, they will exercise this
right, while for all contracts that have the option to terminate the contract, they will not exercise this option.
43. DERIVATIVE FINANCIAL INSTRUMENTS
A. Hedging Transactions
In the ordinary course of business, as a vertically integrated electricity company, the Group and the Parent Company
participate in the Greek energy wholesale market both as producer and as supplier of electricity, which exposes
them to market price risk stemming from commodity price fluctuations. Their generation business is exposed to the
fluctuations of natural gas, oil and CO2 emission rights prices which are traded in international commodity markets.
The exposure of the Group and the Parent Company to the risk of the wholesale electricity market is determined
by its net exposure, ie the amount of energy required to be purchased from (or sold to) the wholesale market to
meet the supply needs (or production respectively) that can not be covered by its own portfolio of production units
(or customers respectively). Any change in both the commercial portfolio and the production portfolio of the Group
and the Parent Company, leads to fluctuations of the net exposure either to a position of "purchase" or to a position
of "sale" of electricity. For either position, the variable wholesale electricity prices may have a material adverse
effect on the Group's Parent Company's operating results and financial position.
In addition, the price of natural gas significantly affects the production costs of the Parent Company. To hedge the
risk of future fluctuations in gas prices, the Group and the Parent Company until December 31, 2021 and until
December 31, 2020 entered into an over-the-counter type of gas swap agreements with financial institutions with
expiration dates within 2022 and within 2021 respectively.
As at 31 December 2021 and 2020, the Group and the Parent Company held the following gas swap contracts:
Hedging Instruments
Position
Nominal quantity
(MW/h)
Position’s Nominal
price in thousand €
Short Term
Asset
Gas commodity swaps 31.12.2021
Buy
1,516,625
53,632
76,908
Gas commodity swaps 31.12.2020
Buy
876,000
13,424
1,402
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
278
43. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
To hedge the risks of future fluctuations in electricity prices, the Group and the Parent Company entered until
December 31, 2020 stock exchange type contracts with counterparties operating on the European Energy
Exchange (EEE) with reference price to the Greek Energy market with settlement date within 2021. On December
31, 2021 and 2020, the Group and the Parent Company held the following electricity swap contracts:
Hedging Instruments
Position
Nominal quantity
(MW/h)
Position’s Nominal
price in thousand
€
Short Term
Asset
Electricity Commodity Swaps
31.12.2021
-
-
-
-
Electricity Commodity Swaps
31.12.2020
Buy
788,400
40,370
3,402
In addition, the Group and the Parent Company in order to hedge the risk of future fluctuations in gas prices entered
into futures contracts until December 31, 2021 in the European Energy Exchange with maturity dates within 2022
and 2023 which are analyzed as follows:
Hedging Instruments
Position
Nominal quantity
(MW/h)
Position’s Nominal
price in thousand €
Short Term
Asset
Gas commodity futures
31.12.2021
Buy
5,840,660
167,816
227,277
Gas commodity futures
31.12.2020
-
-
-
-
The Group and the Parent Company in order to hedge the risk of future fluctuations in electricity prices entered into
futures contracts until December 31, 2021 and December 31, 2020 in the Hellenic Energy Exchange (Henex) and
the European Energy Exchange (EEE) with maturity dates within 2022 and 2021 respectively, which are analyzed
as follows:
Hedging Instruments
Position
Nominal quantity
(MWh))
Position’s Nominal
price in thousand €
Short Term
Asset
Electricity commodity futures
31.12.2021
Sell
(1,533,505)
(366)
(83,775)
Electricity commodity futures
31.12.2020
Buy
249,048
15,011
661
As futures contracts are valued and settled on a daily basis through the Energy Exchanges, the valuation of open
positions on 31.12.2021 has directly affected the cash and cash equivalence of the Group and the Parent Company.
The hedged items for the natural gas follow the Title Transfer Facility (TTF) index, as well as the hedged instruments
and as a result the hedged ratio is 1: 1. Hedging items for electricity follow the Day Ahead Market (DAM) of Greece
and the European Energy Exchanges. As the characteristics of the hedged instrument and the hedged item are
highly correlated, the hedged ratio is 1: 1.
All cash flow hedges for both year 2021 and 2020 are considered to be effective in the future and hedged items are
highly probable future transactions. Therefore, no ineffective cash flow hedging has been recognized in the results
of the Group and the Parent Company.
The valuation of the above swap contracts and futures contracts was carried out based on prices provided by
financial institutions with which the Group has concluded the relevant contracts, or based on their stock prices in
the derivative futures market.
The total change in their fair value amounts to € 214.9 million (31.12.2020: € 5.5 million) and is included in the Other
Reserves as "Reserves from hedging activities" (Note 28) through the Statement of Other Comprehensive Income
as of December 31, 2021.
From the hedging transactions of electricity and natural gas products within 2021, profits before taxes in the
Electricity Markets were reclassified from the Statement of Comprehensive Income to Energy Purchases of € 92.3
million (Note 8) and in Gas in the profits before taxes € 102.9 million, ie a total of € 195.2 million.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
279
43. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
An analysis of the above open positions in derivative financial instruments for hedging cash flows as of 31.12.2021
based on their maturity date is presented:
31.12.2021
up to 12
months
>1 to 5
Years
> 5
years
Total
Fair Value
Statement of
financial position
Gas commodity
swaps
Nominal Quantity
(MW/h)
1,516,625
-
-
1,516,625
Financial
instruments / other
reserves
Position’s Nominal
price in thousand €
53,632
-
-
53,632
76,908
Gas commodity
futures
Nominal Quantity
(MW/h)
5,052,880
787,780
-
5,840,660
Cash / other
reserves
Position’s Nominal
price in thousand €
147,392
20,424
-
167,816
227,277
Electricity
commodity
futures
Nominal Quantity
(MW/h)
(1,533,505)
-
-
(1,533,505)
Cash / other
reserves
Position’s Nominal
price in thousand €
(365,568)
-
-
(365,568)
(83,776)
An analysis of the above open positions of 31.12.2020 in derivative financial instruments to hedge cash flows based
on their maturity date is presented:
31.12.2020
up to 12
months
>1 to 5
Years
> 5
years
Total
Fair Value
Statement of
financial position
Gas commodity
swaps
Nominal Quantity
(MW/h)
876,000
-
-
876,000
Financial
instruments / other
reserves
Position’s Nominal
price in thousand €
13,424
-
-
13,424
1,402
Gas commodity
futures
Nominal Quantity
(MW/h)
788,400
-
-
788,400
Financial
instruments / other
reserves
Position’s Nominal
price in thousand €
40,370
-
-
40,370
3,402
Electricity
commodity
futures
Nominal Quantity
(MW/h)
249,048
-
-
249,048
Cash / other
reserves
Position’s Nominal
price in thousand €
15,011
-
-
15,011
661
Β. Transactions for speculative purposes
The Parent Company, in the context of its business activity as a Special Trader (Market Maker) in the Derivatives
Market of the Greek Energy Exchange, which started its operation in 2020, has carried out transactions for trading
porpuses. From these transactions, the Group and the Parent Company recorded losses of € 3.6 million
(31.12.2020: profits of € 48 thousand) and are included in the Income Statement in "Other(income)/Expenses" (Note
13). As at 31 December 2021, the open positions in derivative financial instruments maturing in 2022 were as
follows:
Financial Instrument
Position
Nominal
quantity
(MW/h)
Position’s
Nominal price in
thousands’€
Short Term Asset
31.12.2021
(electricity commodity future)
Buy
(1,344)
(242)
(14)
As futures contracts are valued and settled on a daily basis through the Energy Exchanges, the valuation of open
positions on 31.12.2021 has directly affected the cash and cash equivalence of the Group and the Parent Company.
In addition, an amount of € 49.7 million is included in the Income Statement in " Other(income)/Expenses “ Note 13
and relates to the gain on electricity long position contracts arising from the discontinuation of the cash flow hedging
relationship due to the activation of the new clause on Supply Charges in Low Voltage customers bills.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
280
44. AMENDMENTS
44.1. Provision for compensation of staff due to leaving the service
The Committee for the Interpretation of International Financial Reporting Standards issued in May 2021 the final
decision on the agenda entitled "Distribution of benefits over periods of service (IAS 19)". This Directive clarifies the
treatment of the provisions for compensation of employees, paid to them when they leave due to retirement, based
on the provisions of Greek labor law (Law 3198/1955), which reaches its maximum point after 16 years of service
in same employer.
According to the Commission opinion, in the case of a compensation policy which provides for the payment of
benefits only at retirement age and the amount of the benefit increases with the years of service up to a maximum
(eg up to 16 years), the corresponding employer liability is broken down by working years before retirement, taking
into account the maximum period beyond which the benefit is not further increased.
Based on a decision of the Board of Directors, the Parent Company provides compensation due to voluntary leave
to its employees with more than 15 years of service regardless of the establishment of a pension right. Therefore,
according to the instructions of the Technical Committee set up on the subject matter as the compensation is not
provided only at retirement age, the employer's obligation continues to be distributed during the first 16 working
years. Therefore, there is no change in the method of calculating the staff leave indemnities due to the above
decision of the Interpretation Committee and it has no effect on the Parent Company. The same policy is followed
by the Group's subsidiaries except HEDNO and PPC Renewables, which provide compensation due to voluntary
leave to its employees with more than 15 years of service if they have established a pension right. The effect on
the Group (reduction of relative provision) amounts to € 2,335 where € 2,217 concerns the subsidiary HEDNO and
amount € 118 the subsidiary PPC Renewables. This effect was not considered significant for the Group, however
the Group proceeded with the restament taking into account the below mentioned (note 44.2).
The Commission Decision is evaluated as a Change in Accounting Policy, in accordance with the provisions of
paragraphs 19-22 of IAS 8. The change in accounting policy is applied retroactively from 1/1/2020, with a
corresponding adjustment of the opening balance of each affected equity account for the earlier of the presented
periods and the other comparative amounts for each previous period presented, as if the new accounting policy
had always been in use.
Below we present an analysis of the effect on individual accounts of the financial statements of the Group as at 31
December 2021, 31 December 2020 and 1 January 2020:
Group - Impact on the Items of the Financial Position 1/1/2020
31/12/2019
PUBLISHED
Effect
1/1/2020
RESTATED
Post -retirement benefits
303,292
(2,335)
300,957
Retained earnings
(1,628,019)
1,775
(1,626,244)
Deferred tax assets
226,623
(560)
226,063
Group - Impact on the Items of the Financial Position 31/12/2020
31/12/2020
PUBLISHED
Effect
31/12/2020
RESTATED
Post -retirement benefits
232,757
(2,335)
230,422
Retained earnings
(1,552,136)
1,775
(1,550,361)
Deferred tax assets
202,673
(560)
202,113
44.2 Revenues for network usage fees arising from consumed and unbilled energy
The Group (through its subsidiary HEDNO) at each balance sheet date calculates based on an estimation method
the Network Usage Fees related to the consumed and unbilled energy for the non-monthly metered connections in
the Non-Interconnected Network of Low Voltage. This estimate was invoiced by HEDNO to the electricity providers
and in the next period the relevant settlement was carried out. The specific procedure was done on a monthly basis
due to the specific obligations of the relevant department based on RAE guidance and the additional role it has in
the energy market in non–interconnected islands.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
281
44.AMENDMENTS (CONTINUED)
On the contrary, for the non-monthly metered connections of Low Voltage in the Interconnected Network, due to
the complexity, the significant number of connections, but also the different obligations of the Company in the
Interconnected Network and the way of pricing the relevant Network Usage Fees, HEDNO did not recognise a
corresponding provision of accrued income until the year ended 31/12/2019.
During the year ended 31/12/2020, HEDNO re-examined the method of recognizing the revenue from Network
Usage Fees in the Interconnected Network, in order to reflect those revenues that correspond to the consumed and
unmetered energy and which has not been invoiced for those connections.
In particular, taking into account that the cycle of consumption metering is four months and assuming that the
metering is carried out in the middle of the month, ie on the 15th day, regarding the metered non-monthly cycle
services of Low Voltage, the Group from the metered quantities of energy of the months of January, February,
March and April of 2020 and 2019 estimated those related to consumptions of previous years, ie 2019 and 2018,
respectively.
Regarding the estimate for the unmetered quantities of energy of 2020, it made specific assumptions, the most
important of which concern the quantities of electricity consumed in total and its losses from the Network, according
to the official data of HEDNO, as well as the average charge term for electricity consumption.
Based on the above estimate, it was concluded that the Group's retain earnings as of December 31, 2019 appears
underestimated, as the revenue accrual mentioned above was not recognized. In addition, the Parent Company did
not recognize part of the above accrued income as the owner of property,plant, equipement of the distribution
network sector and respectively the accrued expense for the payment of distribution network usage fees as
electricity provider to HEDNO.
In the financial statements of the Group and the Parent Company as of December 31, 2020, there was no
restatement of the figures of the comparative period for the above adjustment that took place, as the effect of the
non restatement on the financial figures of the Group and the Company was not considered significant and
especially on "EBITDA" and "EBITDA Recurring", which are the ratios that have been evaluated by the Group and
the Company as the key ones used by the main users of the financial statements to evaluate the financial
performance of the Group and the Company.
With the letter dated 1.2.2022, the Hellenic Capital Market Commission requested the Parent Company (PPC SA)
to proceed with the restatement of the relevant figures in the financial statements of the Group of December 31,
2021, in accordance with the provisions of IAS 8. The Group and the Parent Company keep their position that their
initial judgement is correct, that the effect of the non restatement does not meet the criteria of significance and do
not agree with the request by the Hellenic Capital Market Commission toward the Parent Company to restate
relevant figures and has already challenged the above act before the competent courts.
Exclusively, for the avoidance of imposition of sanctions against them, the Group and the Parent Company
proceeded to restate the relevant comparative figures in the financial statements of December 31, 2021, reserving
all their rights and especially their right to request the cancellation of the above action.
Therefore, and in accordance with the above, the Group and the Parent Company restated the comparative
amounts of the previously presented periods in their financial statements of the year ended 31/12/2021, with the
earlier of the presented periods, ie 01/01/2020. Please note that there is no effect on the published figures of the
Statement of Financial Position of 31.12.2020 of the Group and the Parent Company.
This correction has no cash effect and there was no dividend distribution in the fiscal year 2020.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
282
44.AMENDMENTS (CONTINUED)
The table below presents the effect of the above restatement on the financial statements of the Group and the
Parent Company as at 31 December 2021, 31 December 2020 and 1 January 2020:
Group – Effect on the items of Income Statement 2020
2020 PUBLISHED
Effect
2020 RESTATED
Other (Income) / Expenses
47,319
20,688
68,007
Profits / (Losses) before tax
66,966
(20,688)
46,278
Income Tax
(31,762)
4,965
(26,797)
Profits / (Losses) after tax
35,204
(15,723)
19,481
Group - Impact on the Items of the Financial Position 1/1/2020
31/12/2019
PUBLISHED
Effect
1/1/2020
RESTATED
Other current assets
360,479
20,688
381,167
Retained earnings (losses)
(1,628,019)
15,723
(1,612,296)
Deferred tax assets
226,623
(4,965)
221,658
Parent company - Effect on the items of Income Statement 2020
2020 PUBLISHED
Effect
2020 RESTATED
Distribution fees
251,792
(27,990)
223,802
Profits / (Losses) before tax
67,483
27,990
95,473
Income Tax
(24,507)
(6,717)
(31,224)
Profits / (Losses) after tax
42,976
21,273
64,249
Parent company - Impact on the Items of the Financial Position 1/1/2020
31/12/2019
PUBLISHED
Effect
1/1/2020
RESTATED
Accrued and other current
liabilities
727,363
27,990
755,353
Retained earnings (losses)
(1,862,818)
(21,273)
(1,884,091)
Deferred tax assets
197,867
(6,717)
191,150
45. SECURITIZATION OF TRADE RECEIVABLES FROM ELECTRICITY SALES
Securitization of receivables from electricity sales overdue more than 90 days
The Parent Company on April 9, 2021 signed the securitization contracts with a delay of more than 90 days and
proceeded until June 30, 2021 to raise funds of € 325,020,000 maturing in 2026 with an interest rate of 6.8% for an
amount of securitized receivables of nominal value 1.645 billion and received bonds of reduced security amounting
to € 145.4 million with an interest rate of 8%. The investors are Carval Investors and Deutsche Bank AG and under
management of PIMCO. The issuer of the transaction is PPC Zeus DAC and the administrator (Servicer) in the
transaction is PPC SA, while Qualco SA. acts as a Sub-Servicer.
This Program is covered by a portfolio of claims from active or non-active low voltage customer contracts, with one
or more claims overdue by more than 90 days. The program has a total duration of 5 years and includes a period
of 2 years where it operates as a revolving period and a period of 3 years during which the capital will be repaid
from the proceeds of the above claims.
The Parent Company has recognized a financial liability to PPC Zeus DAC, which undertook the issuance of bonds
worth € 325.0 million against the above-mentioned securitized receivables. As at 31 December 2021, the financial
liability to PPC Zeus DAC amounts to € 229.2 million and is included in long-term liabilities.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
283
45. SECURITIZATION OF TRADE RECEIVABLES FROM THE ELECTRICITY SALES (CONTINUED)
As at 31 December 2021, the receivables included in the securitization continue to appear in the Statement of
Financial Position as the criteria for the derecognition of IFRS 9 are not met and amount to € 1.606 billion nominal
value and at € 182.2 million carrying value (after the provision of expected credit losses). Finally, the IFRS
requirements for the consolidation of the PPC special purpose company Zeus DAC are not met.
Securitization of trade receivables from electricity sales for current accounts and accounts overdue up to
60 days
On August 6, 2020, the Parent Company signed a securitization agreement for the sale of PCs for current PC
accounts and PC accounts with a delay of up to 60 days and on November 24, 2020 proceeded with the initial
withdrawal of € 150.0 million with interest rate 3.5% for an amount of securitized receivables with a nominal value
of € 206.8 million with investor JP Morgan Chase Bank and issuer PPC Energy Finance DAC and received Bonds
of reduced security amounting to € 55.7 million.
On June 30, 2021, the Parent Company raised the remaining amount of € 50 million from the securitization contract
for up to 60 days, resulting in the total financial liability amounting to € 200.0 million.
Servicer in the transaction is the Parent Company that has assigned specific services for the management of
securitized trade receivables to Qualco SA. (Sub-Servicer). This line of finance is revolving, allowing the Parent
Company to make future disbursements and has a duration of 3 years.
As at 31 December 2021, the financial liabilities from the securitization of trade receivables for current energy bills
and energy bills with a delay of up to 60 days amounted to € 150.6 million and are included in current liabilities, for
securitized trade trade receivables with a nominal value of € 274.6 million while subordinated bonds amounted to
€ 73.3 million. Finally, current receivables and overdue receivables of up to 60 days from Low Voltage customers
(after provisions for expected credit loss) amount to to € 289.6 million as at December 31, 2021.
Finally, there are two (2) pledge agreements on the Parent's accounts, held by National Bank of Greece, ALPHA
BANK, ATTICA BANK, Piraeus Bank and EUROBANK in favor of CITIBANK NA, LONDON BRANCH and JP
Morgan Chase Bank, as part of the above securitizations.
PUBLIC POWER CORPORATION S.A. AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021
(All amounts in thousands of Euro, unless otherwise stated)
284
46. SUBSEQUENT EVENTS
In addition to those presented in other notes, the following events occurred from December 31
st
, 2021 until the date
of approval of the Financial Statements:
Loan Issuance- Repayment of Loans
During the period 1.1.2022- 5.4.2022, the Group and the Parent Company repaid arrears of € 102,9 million and €
48.4 million, respectively.
In addition, on 20.1.2022, the Group and the Parent Company prepaid two EIB loans amounting to € 28,6 million.
In addition, during the period 1.1.2022-5.4.2022, the Parent Company raised an amount of approximately Euro 1.08
million from a Bond Loan of € 680.0 million to finance part of the construction cost of the new Lignite plant with a
consortium of foreigners. supported by the German Export Credit Insurance Agency '' Euler Hermes ''.
Memorandum of Cooperation between MOTOR OIL (HELLAS) and PPC SA
In January 2022, MOTOR OIL (HELLAS) SA and PPC SA signed a Memorandum of Understanding (MOU) for
the design of the framework and the implementation through a Joint Venture of projects in the Green Hydrogen
Sector. The participation of MOTOR OIL in the joint stock scheme will amount to 51% and PPC to 49%.
The Consortium believes that it can lead the development of the Hydrogen economy in Greece, having access to
the developing platform for the production of energy from renewable sources of PPC SA, while exploiting the
capacity and know-how of MOTOR OIL (HELLAS) SA. as one of the largest energy groups in the country.
The intended Consortium aims to develop green hydrogen storage production projects in Greece, thus facilitating
the energy transition of Greece to an environment of clean zero carbon emissions (Net Zero).
Signing of MoU for the financing of the development of a Fiber To The Home Network
In January 2022, Public Power Corporation S.A. signed an MoU with Alpha Bank S.A and Piraeus Bank S.A. for
the financing of the construction and operation of a Fiber To The Home (FTTH) Network in selected areas of Greece.
The agreement includes the issuance of a long term bond loan amounting up to € 530 m. under the form of project
financing by the 100% special purpose vehicle to be established by PPC and which will undertake the construction,
operation, exploitation and maintenance of the fiber optics network to be established.
Russia-Ukraine conflict
The current geopolitical crisis in Ukraine, combined with the economic sanctions imposed on Russia by the
European Union and the United States of America, have created conditions of uncertainty in the economic
environment at European and global level.
PPC Group does not have a direct exposure in these countries as it does not have a relevant commercial presence,
with the result that it does not have any direct impact on its activities.
The increased costs in the wholesale electricity market due to the unprecedented increase in the price of natural
gas is a development that indirectly affects the activities of the Group, which is largely protected by the vertical
nature of its activities, due to its presence in both production and and in electricity trading. Indirect effects may arise
due to the consequent reduction of our customers' disposable income, as a result of increased energy costs and
the intensification of inflationary pressures.
Any overall final economic impact of the Russia-Ukraine conflict on the global and Greek economies and businesses
can not be estimated at present, due to the high degree of uncertainty arising from the impossibility of predicting
the final outcome, but also due to the its secondary effects listed above. In any case, the Management of the Group
and the Parent Company continuously monitors the relevant developments and evaluates any possible further
effects on the operation, financial position and results of the Group and the Parent Company, being in a state of
increased vigilance to take appropriate precautionary measures. measures to safeguard the liquidity and business
activities of the Group and the Parent Company.
Bond Loan - IRS
On February 10, 2022, the signing of a bond loan was approved of the subsidiary HEDNO with the National Bank
of Greece, amounting to € 22.52 million in order to finance the purchase of real estate property to cover the housing
needs of its central headquarters with the following basic terms: Loan duration 15 years, EURIBOR interest rate for
6 months plus a margin of 1.75% and repayment in 6 monthly equal installments of capital in arrears.
Also with the same decision, it decided to enter into an IRS hedging contract of the above loan starting 12 months
after the signing of the bond loan and until the end of the loan.
Approval of Required Revenue of HEDNO 2022
On 18/3/2022, the decision number 868/2021 of the Energy Regulatory Authority was issued, which set the
Required Revenue of HEDNO for 2022 at € 797.9 million.
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
285
APPENDIX I
UNBUNDLED FINANCIAL STATEMENTS
Under the provisions of L.4001/2011
and the approved methodology of
the Regulatory Authority for Energy.
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
286
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
ASSETS
NON-CURRENT ASSETS
Tangi ble As sets 155.1 76.0 202.0 264.6 4,678.9 4,965.0 4,594.2 17.7 26.4 65.3 (4,536.0) 5,118.9 5,390.1
Ri ght of us e as sets 6.2 87.6 9.0 102.8
Intangible As se ts 7.7 2.9 0.5 0.6 324.7 82.4 0.8 1.7 0.1 333.8 87.6
Inves tments i n subsidia ri es 211.3 231.7 236.0 3,862.7 8.3 (3,076.7) (10.1) 1,241.5 221.6
Inves tments i n as sociates 0.0 0.0
Availa ble for sa l e financial ass ets 0.3 0.6 0.1 0.1 0.3 0.6
Other non-current a ss ets (1.8) (6.1) 1.3 1.4 102.5 102.8 (1.3) 0.3 (87.1) (82.4) 13.7 16.0
De ferred tax as sets 67.3 53.7 304.1 603.7 (297.0) 761.1 731.8 761.1
Adminis tra tion non-current a ss ets (440.0) (305.1) 66.3 38.8 376.7 150.2 92.1 17.7 14.0 (20.7) 10.0
TOTAL NON-CURRENT ASSETS (0.0) (0.0) 566.0 305.4 9,737.2 5,300.3 0.0 4,686.4 655.9 42.3 0.0 0.0 (3,416.2) (3,857.3) 7,542.9 6,477.1
CURRENT ASSETS
Material s, s pare parts a nd suppli es, net
8.9 8.5 (326.1) 20.6 1,825.8 431.1 1.7 (1,080.1) (5.0) 430.1 455.2
Trade receivables , ne t
(641.0) (252.7) 35.2 17.2 524.4 345.8 123.1 2,039.1 1,700.4 0.3 (421.7) (1,001.9) 1,536.3 927.1
Contract a ss ets 992.6 (915.7) 76.9 4.8
De ri va tive Fi nanci al instruments 76.9 (76.9)
Other receivabl es, net 127.9 80.0 (1.3) 1.2 40.8 21.0 33.7 117.3 9.0 835.3 69.9 1,120.0 214.7
Cash and cas h equi val ents 16.4 23.7 2,564.8 219.9 25.7 494.6 495.6 (515.2) (85.1) 2,560.5 679.7
Adminis tra tion current as sets 504.2 164.3 (6.4) 1.3 (134.5) 11.2 (13.4) (504.9) (163.4) 141.5
Assets held for s ale 4,563.4 4,563.4
TOTAL CURRENT ASSETS 0.0 0.0 (282.2) 63.9 4,821.2 1,029.2 0.0 169.0 3,217.4 2,041.6 0.3 0.0 (2,032.9) 3,541.2 5,723.8 6,844.9
TOTAL ASSETS (0.0) (0.0) 283.8 369.3 14,558.4 6,329.5 0.0 4,855.4 3,873.2 2,083.9 0.3 0.0 (5,449.1) (316.1) 13,266.6 13,322.0
EQUITY AND LIABILITIES
EQUITY
Share Capita l 553.2 76.7 76.7 296.2 296.2 181.2 21.2 21.2 947.4 575.4
Share Pemi um 946.8 14.7 14.7 56.8 56.8 34.7 0.4 0.4 1,018.8 106.7
Legal reserve 22.7 22.7 18.7 15.3 86.3 55.8 34.1 0.6 0.3 128.3 128.3
Fixed as sets ’ sta tutory revalua tion surpl us
included i n s hare ca pital
(171.2) (141.3) (770.8) (498.1) (304.9) (5.3) (3.1) (947.3) (947.3)
Reval uation surpl us
159.3 68.4 279.3 278.7 2,483.5 2,369.7 1,840.9 28.9 28.3 49.6 8.5 3,000.6 4,594.4
Other Res erves 229.4 (42.9) 18.5 14.7 41.9 51.4 30.2 3.1 0.9 (29.5) (2.4) 263.3 51.9
Reta ined earnings 2,363.1 85.8 (2,242.1) (1,653.7) (123.8) (2,174.6) 429.1 1,358.2 1,584.9 (1.3) (1,105.0) (52.0) 249.0 (1,780.5)
Adminis tra tion equi ty (4,274.6) (134.0) 428.5 18.7 3,803.6 79.8 32.6 33.1 2.8 9.4
TOTAL EQUITY (0.0) 0.0 (1,576.9) (1,376.2) 5,873.7 237.0 (0.0) 2,278.1 1,440.1 1,635.8 (1.3) (0.0) (1,075.6) (45.9) 4,660.0 2,728.8
NON-CURRENT LIABILITIES
Interes t bearing loans a nd borrowi ngs
176.5 92.1 3,291.5 1,975.3 1,375.4 13.0 9.0 (757.1) (1,443.2) 2,724.0 2,008.6
Pos t retireme nt be nefits
84.1 84.1 16.4 19.6 12.6 17.9 6.5 7.8 119.6 129.4
Provisi ons
135.7 34.7 326.5 241.3 275.3 317.6 151.3 152.1 (78.8) 810.0 745.7
De ferred tax li abili ty
(100.0) (929.1) 144.5 110.1 698.7 621.6 591.8 10.8 (591.8) (754.1) 197.4
Fi nanci al leas e li abili ty 94.8 94.8
De ferred cus tomers’ contributi ons and subs idies
1,894.5 (0.1) 100.9 110.4 1,860.5 (0.1) (1,461.3) (1,415.0) 533.9 556.0
Long term financial liabil ity from the
securitiza ti on of receivables
229.5 229.5
Other non-current l ia bil itie s
87.2 15.9 (0.5) (0.3) 2.2 5.3 9.0 2,319.9 1,003.9 0.3 (2,409.1) (332.4) 701.4
Adminis tra tion non-current l ia biliti e s
(2,101.5) 794.5 41.2 (154.2) 2,099.6 (494.1) (91.3) (39.4) (54.9)
TOTAL NON-CURRENT LIABILITIES
(0.0) (0.0) 704.6 308.6 6,480.8 2,554.1 (0.0) 3,745.3 2,462.1 526.1 0.3 (0.0) (5,136.1) (2,993.1) 4,511.8 4,141.0
CURRENT LIABILITIES
Trade a nd othe r pa ya bles
(33.1) 44.0 192.2 205.9 (26.9) 196.4 172.0 968.1 1,568.6 (469.4) (1,003.9) 630.8 1,183.0
Short – term borrowings
8.6 1.7 141.4 28.1 0.6 0.2 109.4 260.0 30.0
Current portion of i nteres t bearing l oans a nd
borrowings
19.1 19.8 390.9 403.8
149.7
1.4 1.9 (193.8) (166.1) 217.6 409.1
Di vi dends pa ya bl e
Income taxes pa ya ble
6.3 6.3 21.5 21.5 30.5 30.5 5.5 5.5 63.8 63.8
Accrued a nd other current l iabil ities
(25.0) 62.9 (3.8) 0.6 1,480.4 481.2 191.3 328.6 69.5 (48.0) 1,712.4 825.2
Short te rm part of forecas ting the di s mantl ing
and removal o fa cili ties / equipment of
Producti on Units , Mines and Wind Parks and
reha bil itati on of Mini ng a re a s
80.6 80.6
Contract Li abili ties 1,129.6 1,129.6
Derivative Fi nancial instruments
Total Current Liabil ities from di sconti nued
operations
3,941.2 3,941.2
Administrati on current lia biliti es 51.9 (113.1) (1.4) 5.6 (15.2) 1.6 5.3 (34.9) 100.5 (0.4)
TOTAL CURRENT LIABILITIES (0.0) 0.0 236.1 255.1 2,001.2 1,141.6 (0.0) 327.0 1,132.1 2,005.3 (0.0) (0.0) 725.4 2,723.1 4,094.8 6,452.2
'Other movements between activities 920.0 1,181.8 202.8 2,396.7 (1,495.1) (1,161.1) (2,083.2) 1.2 37.2
TOTAL LIABILITIES AND EQUITY (0.0) 0.0 283.8 369.3 14,558.4 6,329.5 (0.0) 4,855.4 3,873.2 2,083.9 0.3 (0.0) (5,449.1) (316.1) 13,266.6 13,322.0
* Any differences are due to decimal roundings.
ELIMINATIONS
TOTAL PPC
ADMINISTRATION
MINES
GENERATION
DISTRIBUTION
NETWORK
ELECTRICITY
SUPPLY
NATURAL GAS
SUPPLY
PUBLIC POWER CORPORATION S.A.
SYSTEM INTEGRATION UNBUNDLED BALANCE SHEETS
DECEMBER 2021
Amounts in millions of Euro
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
287
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
ASSETS
NON-CURRENT ASSETS
Tangible Assets 234.2 264.6 3,521.5 3,815.4 3,857.8 16.1 24.3 3,771.8 7,962.0
Right of use assets 6.2 61.4 8.6 76.2
Intangible Assets 0.5 0.6 320.3 77.9 (0.2) 0.6 320.6 79.1
Investments in subsidiaries 236.0 2,878.5 7.6 3,122.0
Available for sale financial assets
Other non-current assets 1.3 1.4 102.0 102.2 (1.2) 0.2 102.1 103.8
Deferred tax assets 53.7 231.0 517.7 802.4
Administration non-current assets
66.3 38.8 280.5 117.0 84.3 13.9 12.1 360.8 252.2
TOTAL NON-CURRENT ASSETS
598.3 305.4 7,395.2 4,112.5 0.0 3,942.0 562.5 37.3 0.0 0.0 8,555.9 8,397.2
CURRENT ASSETS
Materials, spare parts and supplies, net (326.1) 20.6 1,077.2 227.9 1.5 752.6 248.5
Trade receivables, net 35.2 17.2 411.5 250.2 108.3 1,877.1 1,274.7 0.3 2,324.1 1,650.4
Contract assets 884.3 884.3
Derivative Financial instruments 76.9 76.9
Other receivables, net (1.3) 1.2 75.2 (59.7) 29.7 104.5 (10.2) 178.3 (39.0)
Cash and cash equivalents 16.4 23.7 2,256.4 152.0 23.3 438.5 329.1 2,711.2 528.0
Administration current assets
(6.4) 1.3 (74.7) 5.9 (11.7) (433.6) (151.7) (514.7) (156.2)
TOTAL CURRENT ASSETS
(282.2) 63.9 3,745.4 576.2 0.0 149.6 2,949.3 1,441.9 0.3 0.0 6,412.8 2,231.6
TOTAL ASSETS
316.0 369.3 11,140.6 4,688.7 0.0 4,091.6 3,511.8 1,479.2 0.3 0.0 14,968.8 10,628.8
EQUITY AND LIABILITIES
EQUITY
Share Capital 76.7 76.7 228.6 228.6 158.1 18.5 18.5 323.8 481.9
Share Pemium 14.7 14.7 43.8 43.8 30.3 0.4 0.4 58.9 89.2
Legal reserve 18.7 15.3 65.1 43.1 29.8 0.5 0.3 84.3 88.5
Fixed assets’ statutory revaluation surplus included in share
capital
(171.2) (141.3) (581.6) (384.4) (265.7) (5.0) (2.9) (757.7) (794.3)
Revaluation surplus 279.3 278.7 1,811.3 1,724.0 1,555.7 26.6 26.1 2,117.2 3,584.4
Other Reserves 18.5 14.7 30.7 38.4 26.4 2.8 0.8 52.0 80.2
Retained earnings (2,246.9) (1,653.7) (451.1) (2,525.9) 419.3 431.2 723.2 (1.3) (2,268.1) (3,037.1)
Administration equity
428.5 18.7 2,761.3 61.8 28.7 30.6 2.2 3,220.4 111.6
TOTAL EQUITY (1,581.7) (1,376.2) 3,908.2 (770.5) (0.0) 1,982.4 505.7 768.6 (1.3) (0.0) 2,830.9 604.3
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings 176.5 92.1 2,527.3 1,613.4 1,166.6 12.1 8.2 2,716.0 2,880.3
Post retirement benefits 16.4 19.6 17.2 20.6 (0.3) 4.4 5.5 38.0 45.4
Provisions 326.5 241.3 236.4 278.3 (0.1) 142.5 143.2 705.3 662.7
Deferred tax liability 144.5 110.1 524.7 461.5 508.4 9.9 (506.8) 679.2 573.2
Financial lease liability
Deferred customers’ contributions and subsidies (0.1) 100.9 110.4 1,615.4 (0.1) 100.7 1,725.8
Long term financial liability from the securitization of
receivables
Other non-current liabilities (0.5) (0.3) 76.9 79.3 7.2 1,953.5 813.6 0.3 2,030.3 899.7
Administration non-current liabilities
41.2 (154.2) 1,484.4 (397.7) (76.6) (29.2) (41.7) 1,496.5 (670.2)
TOTAL NON-CURRENT LIABILITIES 704.6 308.6 4,967.8 2,165.8 (0.0) 3,220.6 2,093.2 422.0 0.3 (0.0) 7,765.9 6,117.0
CURRENT LIABILITIES
Trade and other payables 192.2 205.9 (69.8) 171.8 132.5 584.8 1,236.5 707.1 1,746.7
Short – term borrowings 8.6 1.7 104.3 21.5 0.6 0.2 113.5 23.3
Current portion of interest bearing loans and borrowings 19.1 19.8 308.2 325.8 127.0 1.3 1.8 328.6 474.3
Dividends payable (0.0) (0.0) (0.0) (0.0)
Income taxes payable 21.5 21.5 23.9 23.9 29.7 29.7 75.1 75.1
Accrued and other current liabilities (3.8) 0.6 1,415.4 408.4 153.9 254.2 1,565.4 663.2
Short term part of forecasting the dismantling and removal o
facilities / equipment of Production Units, Mines and Wind
Parks and rehabilitation of Mining areas
(0.0) (0.0)
Contract Liabilities (0.0) (0.0)
Total Current Liabilities from discontinued operations (0.0) (0.0)
Administration current liabilities
(1.4) 5.6 (14.9) 0.7 4.4 (61.7) 54.5 (78.0) 65.2
TOTAL CURRENT LIABILITIES
236.1 255.1 1,767.1 952.0 (0.0) 263.9 708.6 1,576.8 (0.0) (0.0) 2,711.8 3,047.9
Other movements between activities
957.1 1,181.8 497.5 2,341.4 (0.0) (1,375.3) 204.3 (1,288.3) 1.2 1,660.1 859.5
TOTAL LIABILITIES AND EQUITY
316.0 369.3 11,140.6 4,688.7 (0.0) 4,091.6 3,511.8 1,479.2 0.3 (0.0) 14,968.7 10,628.8
* Any differences are due to decimal roundings.
MINES
GENERATION
DISTRIBUTION
NETWORK
ELECTRICITY
SUPPLY
TOTAL
NATURAL GAS
SUPPLY
PUBLIC POWER CORPORATION S.A.
INTERCONNECTED SYSTEM UNBUNDLED BALANCE SHEET
DECEMBER 2021
Amounts in millions of Euro
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
288
2021 2020 2021 2020 2021 2020 2021 2020
ASSETS
NON-CURRENT ASSETS
Tangible Assets 472.0 487.4 386.3 0.3 0.6 472.3 874.3
Right of use assets 13.2 0.2 13.4
Intangible Assets (4.8) (4.8) 0.5 0.5 (4.3) (4.3)
Investments in subsidiaries 412.3 (0.4) 411.9
Available for sale financial assets
Other non-current assets 0.2 0.2 0.2 0.2
Deferred tax assets 30.8 35.5 66.3
Administration non-current assets
42.8 14.1 3.8 1.7 0.9 44.5 18.9
TOTAL NON-CURRENT ASSETS
966.5 496.9 0.0 390.2 37.8 2.0 1,004.3 889.1
CURRENT ASSETS
Materials, spare parts and supplies, net 426.3 96.1 0.1 426.4 96.1
Trade receivables, net 62.5 72.2 10.8 47.0 232.6 109.4 315.6
Contract assets 59.9 59.9
Derivative Financial instruments
Other receivables, net 36.9 71.3 2.2 6.3 10.3 43.1 83.9
Cash and cash equivalents 112.6 27.2 1.7 55.9 100.7 168.4 129.5
Administration current assets
(31.7) 2.8 (0.9) (43.4) (7.7) (75.1) (5.7)
TOTAL CURRENT ASSETS
606.5 269.6 0.0 13.8 125.7 335.9 732.1 619.3
TOTAL ASSETS
1,573.0 766.5 0.0 404.0 163.5 337.9 1,736.5 1,508.4
EQUITY AND LIABILITIES
EQUITY
Share Capital 26.0 26.0 11.8 1.3 1.3 27.4 39.1
Share Pemium 5.0 5.0 2.3 5.0 7.2
Legal reserve 9.3 4.9 2.2 9.3 7.1
Fixed assets’ statutory revaluation surplus
included in share capital
(82.8) (43.8) (20.0) (0.1) (82.9) (63.7)
Revaluation surplus 346.7 332.7 157.1 1.3 1.3 348.0 491.0
Other Reserves 3.8 4.9 2.0 0.2 0.1 4.0 6.9
Retained earnings 244.9 318.5 (9.8) 408.8 360.9 653.7 669.5
Administration equity
531.7 8.2 2.1 1.5 0.2 533.2 10.6
TOTAL EQUITY 1,084.6 656.4 (0.0) 147.6 413.0 363.7 1,497.7 1,167.7
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings 323.0 148.3 106.1 0.1 323.0 254.5
Post retirement benefits (1.4) (0.4) 1.1 1.1 (0.3) 0.7
Provisions 17.1 17.3 5.0 5.1 22.1 22.4
Deferred tax liability 89.2 85.1 33.0 0.6 (34.9) 89.8 83.1
Financial lease liability
Deferred customers’ contributions and subsidies 0.1 133.4 133.5
Long term financial liability from the securitization
of receivables
Other non-current liabilities (42.0) (41.7) 1.3 209.1 101.2 167.1 60.8
Administration non-current liabilities
251.4 (40.2) (9.2) (1.7) (2.4) 249.7 (51.8)
TOTAL NON-CURRENT LIABILITIES
637.3 168.5 (0.0) 264.5 214.1 70.2 851.3 503.3
CURRENT LIABILITIES
Trade and other payables 11.0 6.3 17.4 221.7 205.9 232.7 229.6
Short – term borrowings 15.7 2.7 15.7 2.7
Current portion of interest bearing loans and
borrowings
34.9 32.0 11.5 34.9 43.5
Dividends payable
Income taxes payable 2.2 2.2 (7.8) (7.8) (5.6) (5.6)
Accrued and other current liabilities 38.2 41.3 4.5 40.4 42.7 81.7
Short term part of forecasting the dismantling and
removal o facilities / equipment of Production
Units, Mines and Wind Parks and rehabilitation of
Mining areas
Contract Liabilities
Derivative Financial instruments
Administration current liabilities
(0.2) 0.2 0.3 3.9 14.6 3.7 15.1
TOTAL CURRENT LIABILITIES
101.8 84.7 (0.0) 29.3 222.3 253.2 324.1 367.1
Other movements between activities (250.8) (143.1) (0.0) (37.4) (686.0) (349.3) (936.8) (529.9)
TOTAL LIABILITIES AND EQUITY
1,572.9 766.5 (0.0) 404.0 163.4 337.9 1,736.4 1,508.4
* Any differences are due to decimal roundings.
GENERATION
DISTRIBUTION NETWORK
SUPPLY
TOTAL
PUBLIC POWER CORPORATION S.A.
CRETE UNBUNDLED BALANCE SHEET
DECEMBER 2021
Amounts in millions of Euro
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
289
2021 2020 2021 2020 2021 2020 2021 2020
ASSETS
NON-CURRENT ASSETS
Tangible Assets 685.4 662.2 350.1 1.3 1.5 686.7 1,013.9
Right of use assets 12.9 0.2 13.1
Intangible Assets 9.2 9.3 0.5 0.6 9.8 9.8
Investments in subsidiaries 571.9 1.0 573.0
Available for sale financial assets
Other non-current assets 0.4 0.4 (0.1) 0.3 0.4
Deferred tax assets 42.3 50.4 92.8
Administration non-current assets 53.3 19.0 4.0 2.1 1.0 55.4 24.0
TOTAL NON-CURRENT ASSETS 1,375.5 690.9 0.0 354.1 55.5 3.1 1,431.1 1,048.1
CURRENT ASSETS
Materials, spare parts and supplies, net 322.3 107.1 0.1 322.3 107.1
Trade receivables, net 50.5 23.5 3.9 115.0 193.2 165.5 220.5
Contract assets 48.4 48.4
Derivative Financial instruments
Other receivables, net (71.2) 9.4 1.8 6.6 8.9 (64.6) 20.0
Cash and cash equivalents 195.8 40.8 0.7 0.2 65.8 196.0 107.4
Administration current assets (28.1) 2.5 (0.8) (27.8) (4.1) (55.9) (2.4)
TOTAL CURRENT ASSETS 469.3 183.3 0.0 5.6 142.4 263.8 611.7 452.7
TOTAL ASSETS 1,844.8 874.2 0.0 359.7 197.9 266.9 2,042.7 1,500.8
EQUITY AND LIABILITIES
EQUITY
Share Capital 41.6 41.6 11.4 1.4 1.4 42.9 54.3
Share Pemium 8.0 8.0 2.2 8.0 10.2
Legal reserve 11.9 7.8 2.2 11.9 10.0
Fixed assets’ statutory revaluation surplus included
in share capital
(106.4) (69.9) (19.2) (0.3) (0.2) (106.7) (89.3)
Revaluation surplus 325.5 313.0 128.2 1.0 1.0 326.5 442.1
Other Reserves 7.3 8.1 1.9 0.1 7.4 10.1
Retained earnings 82.3 32.8 19.7 518.2 500.7 600.5 553.2
Administration equity 510.7 9.8 1.8 0.9 0.4 511.6 11.9
TOTAL EQUITY 880.8 351.1 (0.0) 148.0 521.3 503.3 1,402.1 1,002.5
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings 441.2 213.7 102.6 0.9 0.7 442.1 316.9
Post retirement benefits (3.2) (2.3) 0.3 1.1 1.1 (2.1) (0.8)
Provisions 21.8 22.0 0.1 3.8 3.9 25.7 25.9
Deferred tax liability 84.8 74.9 50.5 0.3 (50.0) 85.1 75.4
Financial lease liability
Deferred customers’ contributions and subsidies 111.7 111.7
Long term financial liability from the securitization of
receivables
Other non-current liabilities (32.7) (32.3) 0.5 157.2 89.1 124.5 57.3
Administration non-current liabilities 363.8 (56.2) (5.5) (8.5) (10.8) 355.3 (72.5)
TOTAL NON-CURRENT LIABILITIES 875.7 219.8 (0.0) 260.2 154.9 33.9 1,030.6 513.9
CURRENT LIABILITIES
Trade and other payables 32.0 18.3 22.1 161.6 126.2 193.6 166.6
Short – term borrowings 21.4 3.9 21.4 3.9
Current portion of interest bearing loans and
47.7 46.0 11.2 0.1 0.1 47.8 57.4
Dividends payable
Income taxes payable 4.4 4.4 (16.5) (16.5) (12.1) (12.1)
Accrued and other current liabilities 26.8 31.5 33.0 34.0 59.8 65.4
Short term part of forecasting the dismantling and
removal o facilities / equipment of Production Units,
Mines and Wind Parks and rehabilitation of Mining
areas
Contract Liabilities
Administration current liabilities (0.1) 0.7 0.6 22.9 31.4 22.9 32.7
TOTAL CURRENT LIABILITIES 132.2 104.9 (0.0) 33.8 201.2 175.2 333.4 313.9
Other movements between activities
(43.8) 198.4 (82.4) (679.5) (445.6) (723.4) (329.6)
TOTAL LIABILITIES AND EQUITY 1,844.9 874.2 (0.0) 359.7 197.8 266.9 2,042.7 1,500.8
* Any differences are due to decimal roundings.
GENERATION
DISTRIBUTION NETWORK
SUPPLY
TOTAL
PUBLIC POWER CORPORATION S.A.
OTHER NOΝ INTERCONNECTED ISLANDS
UNBUNDLED BALANCE SHEET (INCL. RHODES)
DECEMBER 2021
Amounts in millions of Euro
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
290
2021 2020 2021 2020 2021
2020
restated
2021
2020
restated
2021 2020 2021 2020 2021
2020
restated
REVENUES
Revenues from 3rd Parties
Energy sales to customers 4,618.4 3,511.7 368.7 398.7 4,987.1 3,910.4
Natural gas sales to customers 0.5 1.2 (0.0) 1.2 0.5
PSO's revenues from customers 361.6 382.0 (361.6) (382.0)
Energy exports 7.1 16.7 (7.1) (16.7)
Energy sales to wholesale market 3,590.4 1,773.6 42.5 0.1 (3,632.9) (1,773.7)
Transitional Flexibility Assurance Mechanism 31.9 (31.9)
Other Services to wholesale market 14.3 (14.3)
Sales from Lignite 1.8 1.1 1.0 (2.9) (1.0)
Network rentals 238.7 271.4 (238.7) (271.4)
Customer's contribution 0.2 0.2 83.6 88.3 (83.9) (88.6)
ETMEAR's revenues 400.1 427.2 (400.1) (427.2)
PSO's revenues from Administrators 341.5 541.5 (341.5) (541.5)
Other Sales 3.0 5.4 16.1 8.5 14.9 7.3 24.9 25.6 352.4 405.7 411.2 452.4
Allocated Administration Revenues 4.5 5.8 7.6 7.6 3.1 2.1 (15.2) (15.6)
Interdepartmental Revenues
Lignite yard & ash revenue 6.9 9.8 (6.9) (9.8)
Energy 74.3 43.5 (74.3) (43.5)
Lignite 169.5 206.6 (169.5) (206.6)
REVENUES 185.6 227.6 3,615.5 1,837.1 337.2 367.1 5,873.4 4,950.9 1.2 (0.0) (4,613.5) (3,019.3) 5,399.5 4,363.3
Expenses (3rd Parties)
Payroll Cost 110.1 122.3 191.9 184.5 46.2 42.6 63.9 61.9 412.1 411.3
Own production lignite 179.6 200.0 (158.2) (179.0) 21.3 21.0
Third party lignite - Hard coal 1.2 1.8 (1.2) (1.8)
Natural Gas 908.0 297.6 0.2 2.0 (0.0) 910.1 297.9
Liquid fuel (0.1) 535.7 455.8 (4.8) 530.8 455.8
Materials & Consumables 15.6 19.6 55.1 37.8 0.6 0.7 0.3 0.2 71.7 58.4
Depreciations 67.4 93.1 259.2 305.9 1.0 259.5 2.8 7.0 16.5 14.0 346.9 679.6
Energy Purchases from third party 4.8 4.4 610.4 682.6 872.3 (687.0)
Energy imports 54.9 129.7 (54.9) (129.7)
Energy Purchases to wholesale market 161.3 25.1 3,990.3 2,000.8 (2,664.0) (810.6) 1,487.6 1,215.3
Return of receivable ETMEAR to Administrators 401.3 428.9 (401.3) (428.9)
Return of receivable PSO to Administrators 362.6 390.6 (362.6) (390.6)
Transmission Network Fees 129.3 135.8 (0.0) 129.3 135.8
Distribution Network Fees 459.3 495.2 (238.7) (304.0) 220.6 191.3
Utilities & Maintenance 50.7 72.4 34.9 27.7 19.1 18.8 4.8 4.0 109.7 122.9
Third party fees 4.6 (0.4) 9.7 5.4 44.9 47.8 0.1 29.8 27.0 89.0 79.8
Taxes and duties 1.0 0.3 9.1 8.1 2.9 2.6 (13.0) (11.0)
CO2 emissions rights 573.8 327.9 573.8 327.9
Provisions 5.0 3.8 (16.4) 78.0 (0.4) (128.2) (9.7) 160.7 70.2 20.8 142.2
Financial expenses 19.9 23.7 66.2 42.1 100.8 125.8 63.6 1.6 1.4 1.4 252.0 194.6
Financial income (0.7) (3.1) (6.5) (15.2) (11.4) (10.7) (46.6) (52.8) (65.2) (81.8)
Income from PSO (5.7) 5.7
Other (income)/ expense, net 33.1 (0.5) 14.2 (13.4) (6.9) 3.1 19.5 75.9 0.2 (52.7) (41.7) 7.3 23.4
Devaluation of fixed assets _lignite 1.0 11.9 78.1 89.9 0.5 9.0 11.2 11.0 88.0 124.4
Devaluation of fixed assets 54.2 78.5 (20.2) (209.4) 0.9 43.8 78.7 (130.9)
Impairment loss of marketable securities
Income from the spin-off the Distribution Network (3.4) (48.7) (0.2) (52.3)
Foreign currency gains/ (losses), net (0.5) 1.0 (0.4) 0.1 1.1 (0.8)
Allocated Administration Expenses 64.1 52.3 147.2 77.7 61.1 16.1 (272.4) (146.1)
Interdepartmental Expenses
Lignite yard & ash expenses 6.9 9.8 (6.9) (9.8)
Change in stock 28.4 (1.2) 3.6 (32.0) 1.2
Energy 34.7 20.0 39.6 23.5 (74.3) (43.5)
PROFIT (LOSS) BEFORE TAX (299.8) (264.7) 426.1 (127.6) 253.2 (11.1) (229.4) 530.8 (1.2) (0.0) (1,470.1) (32.1) 166.4 95.5
* Any differences are due to decimal roundings.
MINES
GENERATION
DISTRIBUTION NETWORK
ELECTRICITY SUPPLY
ELIMINATIONS
TOTAL PPC
NATURAL GAS SUPPLY
PUBLIC POWER CORPORATION S.A.
SYSTEM INTEGRATION UNBUNDLED INCOME STATEMENT
DECEMBER 2021
AMOUNTS IN MILLIONS OF EURO
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
291
2021 2020 2021 2020
2021
2020
restated
2021
2020
restated
2021 2020 2021
2020
restated
REVENUES
Revenues from 3rd Parties
Energy sales to customers 4,097.9 3,122.3 4,097.9 3,122.3
Natural gas sales to customers 0.5 1.2 1.2 0.5
PSO's revenues from customers 312.6 332.1 312.6 332.1
Energy exports 7.1 16.7 7.1 16.7
Energy sales to wholesale market 2,712.6 1,004.0 42.5 0.1 2,755.0 1,004.1
Transitional Flexibility Assurance Mechanism 31.9 31.9
Other Services to wholesale market 14.3 14.3
Sales from Lignite 1.8 1.1 1.0 2.9 1.0
Network rentals 209.5 237.4 209.5 237.4
Customer's contribution 0.2 (0.9) 70.9 74.9 71.2 74.0
ETMEAR's revenues 352.4 377.9 352.4 377.9
PSO's revenues from Administrators 69.4 79.6 69.4 79.6
Other Sales 3.0 5.4 13.6 8.2 6.0 6.0 20.5 22.9 43.1 42.5
Allocated Administration Revenues 4.5 5.8 4.9 4.8 2.8 1.9 12.2 12.5
Interdepartmental Revenues
Lignite yard & ash revenue 6.9 9.8 6.9 9.8
Energy 70.9 40.8 70.9 40.8
Lignite 169.5 206.6 169.5 206.6
REVENUES 185.6 227.6 2,732.5 1,063.3 286.4 318.3 4,976.2 3,994.8 1.2 (0.0) 8,181.9 5,604.0
Expenses (3rd Parties)
Payroll Cost 110.1 122.3 123.5 121.5 42.0 38.3 275.6 282.1
Own production lignite 179.6 200.0 179.6 200.0
Third party lignite - Hard coal 1.2 1.8 1.2 1.8
Natural Gas 908.0 297.6 0.2 2.0 910.1 297.9
Liquid fuel (0.1) 12.1 14.0 12.1 14.0
Materials & Consumables 15.6 19.6 32.7 21.5 0.5 0.6 48.8 41.7
Depreciations 67.4 93.1 179.4 223.3 (0.1) 221.0 2.6 6.2 249.2 543.6
Energy Purchases from third party
Energy imports 54.9 129.7 54.9 129.7
Energy Purchases to wholesale market 161.3 25.1 3,916.9 1,993.4 4,078.2 2,018.5
Return of receivable ETMEAR to Administrators 358.3 381.0 358.3 381.0
Return of receivable PSO to Administrators 313.1 340.9 313.1 340.9
Transmission Network Fees 129.3 135.8 129.3 135.8
Distribution Network Fees 400.8 431.6 400.8 431.6
Utilities & Maintenance 50.7 72.4 23.7 20.0 17.2 17.0 91.7 109.5
Third party fees 4.6 (0.4) 5.8 2.9 39.3 44.7 0.1 49.9 47.2
Taxes and duties 1.0 0.3 8.1 7.6 2.7 2.2 11.8 10.1
CO2 emissions rights 452.7 255.5 452.7 255.5
Provisions 5.0 3.8 4.0 69.0 (0.4) (106.0) (5.6) (97.4) 67.2
Financial expenses 19.9 23.7 55.0 31.1 86.4 108.2 58.0 1.5 219.3 164.5
Financial income (0.7) (3.1) (4.5) (12.8) (9.7) (9.2) (42.7) (47.7) (57.7) (72.9)
Income from PSO
Other (income)/ expense, net 33.1 (0.5) 13.5 (13.9) (3.5) 2.2 28.3 77.3 0.2 71.5 65.1
Devaluation of fixed assets _lignite 1.0 11.9 49.4 53.3 0.4 8.6 10.7 59.0 76.3
Devaluation of fixed assets 54.2 78.5 (20.2) (209.4) 0.5 34.5 (130.9)
Impairment loss of marketable securities
Income from the spin-off the Distribution Network (3.4) (39.5) (0.2) (43.1)
Foreign currency gains/ (losses), net (0.5) (0.2) (0.2) (0.2) (0.7)
Allocated Administration Expenses 64.1 52.3 97.8 52.6 55.1 14.1 217.0 119.0
Interdepartmental Expenses
Lignite yard & ash expenses 0.0 6.9 9.8 6.9 9.8
Change in stock 28.4 (1.2) 3.6 32.0 (1.2)
Energy 34.7 20.0 36.3 20.8 70.9 40.8
PROFIT (LOSS) BEFORE TAX (299.8) (264.7) 442.2 (127.8) 213.2 (4.3) (302.5) 423.0 (1.2) (0.0) 51.9 26.3
* Any differences are due to decimal roundings.
MINES
GENERATION
DISTRIBUTION NETWORK
ELECTRICITY SUPPLY
TOTAL
NATURAL GAS SUPPLY
PUBLIC POWER CORPORATION S.A.
INTERCONNECTED SYSTEM UNBUNDLED INCOME STATEMENT
DECEMBER 2021
AMOUNTS IN MILLIONS OF EURO
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
292
2021 2020 2021 2020 2021 2020 2021 2020
REVENUES
Revenues from 3rd Parties
Energy sales to customers 292.6 218.7 292.6 218.7
PSO's revenues from customers 26.8 27.6 26.8 27.6
Energy sales to wholesale market 465.0 420.7 465.0 420.7
Other Services to wholesale market
Network rentals 16.0 18.5 16.0 18.5
Customer's contribution 0.9 6.4 7.0 6.4 7.9
ETMEAR's revenues 26.7 27.8 26.7 27.8
PSO's revenues from Administrators 157.6 259.3 157.6 259.3
Other Sales 1.3 0.1 8.0 0.6 2.4 1.4 11.8 2.2
Allocated Administration Revenues 1.1 1.0 0.2 0.1 1.3 1.1
Interdepartmental Revenues
Lignite yard & ash revenue
Energy 1.8 1.5 1.8 1.5
Lignite
REVENUES 467.4 422.6 30.4 26.1 508.1 536.6 1,006.0 985.3
Expenses (3rd Parties)
Payroll Cost 33.1 22.9 2.7 2.6 35.8 25.4
Own production lignite
Third party lignite - Hard coal
Natural Gas
Liquid fuel 308.4 278.5 308.4 278.5
Materials & Consumables 6.4 5.4 0.1 6.4 5.4
Depreciations 41.1 43.1 1.1 21.1 0.1 0.4 42.3 64.6
Energy Purchases from third party 3.5 4.1 310.1 382.9 313.6 387.0
Energy imports
Energy Purchases to wholesale market 73.3 4.2 73.3 4.2
Return of receivable ETMEAR to Administrators 22.3 26.5 22.3 26.5
Return of receivable PSO to Administrators 27.4 24.6 27.4 24.6
Transmission Network Fees
Distribution Network Fees 29.6 34.4 29.6 34.4
Utilities & Maintenance 2.1 0.7 1.0 0.9 3.1 1.6
Third party fees 0.9 0.5 2.9 1.7 3.7 2.1
Taxes and duties 0.4 0.3 0.1 0.2 0.5 0.5
CO2 emissions rights 66.6 43.2 66.6 43.2
Provisions (4.5) (7.3) (12.8) (2.3) (17.3) (9.6)
Financial expenses 5.4 4.2 7.3 9.0 0.9 13.5 13.2
Financial income (1.0) (0.9) (0.9) (0.8) (2.2) (2.8) (4.1) (4.4)
Other (income)/ expense, net (1.1) (0.5) 0.1 0.2 (5.3) (4.0) (6.2) (4.3)
Devaluation of fixed assets _lignite 15.8 26.8 0.2 0.3 16.0 27.1
Devaluation of fixed assets 0.3 0.3
Impairment loss of marketable securities
Income from the spin-off the Distribution Network (4.8) (4.8)
Foreign currency gains/ (losses), net (0.2) (0.2)
Allocated Administration Expenses 20.8 9.0 3.3 1.2 24.1 10.1
Interdepartmental Expenses
Lignite yard & ash expenses
Change in stock
Energy
1.8 1.5 1.8 1.5
PROFIT (LOSS) BEFORE TAX (27.2) (8.6) 22.4 (3.5) 54.5 65.6 49.7 53.6
* Any differences are due to decimal roundings.
GENERATION
DISTRIBUTION NETWORK
ELECTRICITY SUPPLY
TOTAL
PUBLIC POWER CORPORATION S.A.
CRETE UNBUNDLED INCOME STATEMENT
DECEMBER 2021
AMOUNTS IN MILLIONS OF EURO
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
293
2021 2020 2021 2020 2021 2020 2021 2020
REVENUES
Revenues from 3rd Parties
Energy sales to customers 227.8 170.6 227.8 170.6
PSO's revenues from customers 22.2 22.3 22.2 22.3
Energy sales to wholesale market 412.8 348.9 412.8 348.9
Other Services to wholesale market
Network rentals 13.2 15.5 13.2 15.5
Customer's contribution 0.3 6.2 6.4 6.2 6.7
ETMEAR's revenues 21.0 21.4 21.0 21.4
PSO's revenues from Administrators 114.6 202.6 114.6 202.6
Other Sales 1.2 0.2 0.8 0.7 1.9 1.2 3.9 2.1
Allocated Administration Revenues 1.7 1.8 0.1 0.1 1.8 1.9
Interdepartmental Revenues
Lignite yard & ash revenue
Energy 1.5 1.2 1.5 1.2
Lignite
REVENUES 415.6 351.2 20.3 22.7 389.1 419.5 825.0 793.3
Expenses (3rd Parties)
Payroll Cost 35.3 40.2 1.5 1.7 36.8 41.9
Own production lignite
Third party lignite - Hard coal
Natural Gas
Liquid fuel 215.2 163.3 0.0 215.2 163.3
Materials & Consumables 16.1 10.9 0.0 0.1 16.1 11.0
Depreciations 38.7 39.6 0.0 17.4 0.1 0.4 38.8 57.3
Energy Purchases from third party 1.4 0.3 0.0 300.3 299.7 301.7 300.0
Energy imports
Energy Purchases to wholesale market 0.1 3.2 0.1 3.2
Return of receivable ETMEAR to Administrators 20.8 21.4 20.8 21.4
Return of receivable PSO to Administrators 22.1 25.1 22.1 25.1
Transmission Network Fees
Distribution Network Fees 28.9 29.2 28.9 29.2
Utilities & Maintenance 9.1 7.0 0.9 0.8 10.0 7.8
Third party fees 3.0 2.0 2.7 1.5 5.6 3.5
Taxes and duties 0.6 0.3 0.1 0.2 0.7 0.5
CO2 emissions rights 54.5 29.2 0.0 54.5 29.2
Provisions (15.9) 16.2 (9.4) (1.8) (25.3) 14.4
Financial expenses 5.9 6.8 7.1 8.6 4.7 17.7 15.4
Financial income (0.9) (1.6) (0.9) (0.7) (1.6) (2.3) (3.4) (4.6)
Other (income)/ expense, net 1.8 1.0 (3.5) 0.7 (3.5) (3.0) (5.2) (1.3)
Devaluation of fixed assets _lignite 12.8 9.8 0.1 0.2 12.9 10.0
Devaluation of fixed assets
Impairment loss of marketable securities
Income from the spin-off the Distribution Network (4.4) (4.4)
Foreign currency gains/ (losses), net 1.4 (0.1) 1.4 (0.1)
Allocated Administration Expenses 28.6 16.1 2.7 0.9 31.3 17.0
Interdepartmental Expenses
Lignite yard & ash expenses
Change in stock
Energy
1.5 1.2 1.5 1.2
PROFIT (LOSS) BEFORE TAX 11.1 8.8 17.5 (3.3) 18.7 42.2 47.3 47.8
* Any differences are due to decimal roundings.
GENERATION
DISTRIBUTION NETWORK
ELECTRICITY SUPPLY
TOTAL
PUBLIC POWER CORPORATION S.A.
OTHER NON INTERCONNECTED ISLANDS
UNBUNDLED INCOME STATEMENT (INCL. RHODES)
DECEMBER 2021
AMOUNTS IN MILLIONS OF EURO
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
294
PUBLIC POWER CORPORATION S.A.
CONSOLIDATED AND SEPARATE BALANCE SHEET AS OF DECEMBER 31, 2021
(All amounts in millions of Euro)
31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020
ASSETS
Non – Current Assets:
Tangible assets 5,118.9 5,390.1 4,882.2 87.6 304.1 313.5 (39.5) 4,543.2 10,265.7 10,334.5
Intangible assets, net 333.8 87.6 4.4 2.0 13.2 13.6 8.6 8.9 360.0 112.1
Right of use assets 102.8 - - - - - 31.8 - 134.6 -
Investments in subsidiaries 1,241.5 221.6 - - (0.0) (0.0) (1,241.5) (221.6) - -
Investments in associates 0.0 0.0 - - 38.8 34.0 (0.0) (0.0) 38.8 34.1
Available for sale financial assets 0.3 0.6 - - 0.0 0.2 (0.0) (0.0) 0.3 0.9
Deferred tax assets 731.8 761.1 (328.6) 54.0 (13.6) (17.7) (7.2) (594.7) 382.5 202.7
Other non- current assets 13.7 16.0 0.0 0.0 11.6 6.6 (21.4) (8.4) 3.9 14.3
Total non-current assets 7,542.9 6,477.1 4,558.0 143.7 354.2 350.4 (1,269.2) 3,727.3 11,185.9 10,698.4
Current Assets:
Materials, spare parts and supplies, net 430.1 455.2 174.0 172.9 23.1 25.0 (17.4) (22.7) 609.9 630.4
Trade receivables, net 875.9 554.6 283.3 249.2 25.8 48.7 (84.3) (143.8) 1,100.6 708.7
Contract assets 660.3 - - - - - - - 660.3 -
Other receivables, net 1,120.0 377.3 2.2 41.5 23.3 14.2 97.1 (55.7) 1,242.5 377.3
Derivative Financial instruments 76.9 - - - - - - - 76.9 -
Income tax receivable - - - - 0.1 0.1 4.7 2.7 4.8 2.7
Other current assets - 214.7 228.0 257.5 15.9 9.0 (243.9) (87.5) - 393.7
Cash and cash equivalents 2,512.2 626.9 172.7 78.8 147.5 109.9 (0.0) (0.0) 2,832.4 815.6
Restricted Cash 48.3 52.8 - - - - 17.6 5.9 65.9 58.7
Assets held for sale - 4,563.4 - - - - - (4,563.4) - -
Total Current Assets 5,723.8 6,844.9 860.2 799.8 235.6 206.9 (226.2) (4,864.5) 6,593.3 2,987.1
Total Assets 13,266.7 13,322.0 5,418.2 943.4 589.8 557.3 (1,495.4) (1,137.2) 17,779.2 13,685.6
EQUITY AND LIABILITIES
EQUITY:
Share capital 947.4 575.4 991.2 37.6 199.8 400.0 (1,191.0) (437.5) 947.4 575.4
Share premium 1,018.8 106.7 - - 69.1 69.5 (69.1) (69.5) 1,018.8 106.7
Legal reserve 128.3 128.3 6.1 5.1 4.2 3.9 (10.3) (9.0) 128.3 128.3
Fixed assets’ statutory revaluation surplus
included in share capital
(947.3) (947.3) - - - - - - (947.3) (947.3)
Revaluation surplus 3,000.6 4,594.4 159.7 42.4 319.0 319.0 1,684.6 (269.5) 5,043.4 4,686.4
Other Reserves 263.3 51.9 125.1 - 91.9 92.0 (174.0) (56.3) 306.4 87.6
Retained earnings 249.0 (1,780.5) 14.7 121.1 (389.2) (626.8) (1,413.2) 734.1 (1,418.2) (1,552.1)
Total Equity attributable to owners of the Parent
4,660.0 2,728.8 1,296.9 206.2 294.8 257.6 (1,173.0) (107.7) 5,078.7 3,084.9
NON-CONTROLLING INTEREST - - - - - - 0.3 0.3 0.3 0.3
Total Equity 4,660.0 2,728.8 1,296.9 206.2 294.8 257.6 (1,172.7) (107.4) 5,079.0 3,085.2
Non-Current Liabilities:
Interest bearing loans and borrowings 2,724.0 2,008.6 1,229.3 - 109.4 96.5 (0.0) 1,375.4 4,062.6 3,480.5
Post retirement benefits 119.6 129.4 75.4 89.7 14.3 13.5 0.0 0.2 209.4 232.8
Provisions 810.0 745.7 47.8 44.8 7.0 4.0 (29.6) (7.1) 835.3 787.4
Deferred tax liabilities - - - - - - - - - -
Financial lease liability 94.8 - - - - - 24.6 - 119.5 -
Deferred customers’ contributions and
subsidies
533.9 556.0 1,945.5 - 7.2 11.6 (0.0) 1,860.2 2,486.6 2,427.8
Long term financial liability from the
securitization of receivables
229.5 - - - - - - - 229.5 -
Other non-current liabilities 0.0 701.4 59.1 64.5 9.9 2.4 (33.6) (23.2) 35.6 745.1
Total Non-Current Liabilities 4,511.8 4,141.0 3,357.2 199.0 147.9 128.1 (38.5) 3,205.4 7,978.4 7,673.4
Current Liabilities:
Trade and other payables 480.2 1,183.0 468.0 346.5 99.2 147.4 (77.4) (236.4) 970.1 1,440.4
Short term financial liability from the
securitization of receivables
150.6 - - - - - - - 150.6 -
Short – term borrowings 260.0 30.0 - - 16.4 12.3 (5.0) (0.1) 271.3 42.2
Current portion of long - term borrowings 207.1 409.1 - - - 0.2 146.6 155.2 353.6 564.6
Short – term financial lease liability 10.6 - 190.0 - 0.7 - (183.6) - 17.7 -
Dividends payable - 0.0 - - - - - - - 0.0
Income tax payable 63.8 63.8 5.8 2.3 0.9 2.1 (0.1) (0.1) 70.5 68.2
Accrued and other current liabilities 1,712.4 825.2 100.4 189.4 29.9 9.6 (164.8) (212.6) 1,677.8 811.6
Short term part of forecasting the dismantling
and removal o facilities / equipment of
Production Units, Mines and Wind Parks and
rehabilitation of Mining areas
80.6 - - - - - - - 80.6 -
Contract Liabilities 1,129.6 - - - - - - - 1,129.6 -
Liabilities held for sale - 3,941.2 - - - - - (3,941.2) - -
Total Current Liabilities 4,094.8 6,452.2 764.2 538.2 147.1 171.6 (284.3) (4,235.2) 4,721.8 2,926.9
Total Liabilities and Equity 13,266.7 13,322.0 5,418.2 943.4 589.8 557.3 (1,495.4) (1,137.2) 17,779.2 13,685.6
* Any differences are due to decimal roundings.
COMPANY
HEDNO
OTHER COMPANIES
ELIMINATIONS
GROUP
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
(All amounts in millions of Euro)
295
PUBLIC POWER CORPORATION S.A.
CONSOLIDATED AND SEPARATE STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2021
(All amounts in thousands of Euro)
31/12/2021
31/12/2020
restated
31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021
31/12/2020
restated
REVENUES
Revenue from energy sales
4,987,108 3,910,362 955,164 910,440 385,371 158,067 (1,311,975) (1,031,542) 5,015,668 3,947,327
Revenue from natural gas
1,161 472 - - - - - - 1,161 472
Other sales
411,206 484,995 1,792,231 1,725,796 7,521 281 (1,521,396) (1,509,427) 689,562 701,645
5,399,475 4,395,829 2,747,395 2,636,236 392,892 158,348 (2,833,371) (2,540,969) 5,706,391 4,649,444
EXPENSES:
Payroll cost 412,094 411,274 294,737 284,226 65,501 59,411 (41,962) (41,302) 730,371 713,609
Lignite 21,323 20,997 - - 19,781 28,588 (0) (1) 41,104 49,584
Liquid Fuel 530,825 455,849 - - 6,178 6,666 (0) 0 537,003 462,515
Natural Gas 910,068 297,858 - - - - - - 910,068 297,858
Depreciation and Amortization 346,923 679,560 45,557 22,365 41,596 51,019 232,171 (8,899) 666,248 744,045
Energy purchases 1,487,577 1,215,330 1,565,985 1,617,764 157,777 20,406 (1,924,617) (1,735,638) 1,286,722 1,117,863
Materials and consumables 71,650 58,363 101,328 99,581 7,269 9,798 (58,604) (56,819) 121,643 110,923
Transmission system usage 129,257 135,775 - - - 61 - (0) 129,257 135,836
Distribution system usage 220,588 223,802 - - - - (220,588) (251,792) - -
Utilities and maintenance 109,651 122,850 621,511 520,325 20,502 18,632 (571,452) (462,038) 180,212 199,769
Third party fees 89,035 79,800 61,339 41,911 10,613 3,339 (19,175) (11,790) 141,812 113,260
CO2 emission rights 573,793 327,861 - - 125,372 65,625 (1) 0 699,164 393,486
Provision for Land restoration - - - - - - - - - -
Provision for risks 105,430 43,074 3,046 413 4,101 (624) (23,729) (102,972) 88,847 38,608
Provision for slow – moving materials 24,272 62,455 872 1,624 618 22,257 0 0 25,762 86,336
Allowance for doubtful balances (108,938) 36,652 2,694 (1,586) 11,455 (77,348) 35,049 104,228 (59,740) 61,946
Loss (Gain) from financial derivatives of commodities - - - 2,634 - - - - - -
Financial expenses 251,963 194,611 6,383 (416) 2,497 2,532 (1,303) (1,544) 259,541 198,233
Financial income (65,222) (81,824) (273) - (483) (1,165) 6,684 23,298 (59,294) (60,108)
Devaluation of fixed assets _lignite 88,000 124,426 - - - - (88,000) - - (125,319)
Devaluation of fixed assets 78,675 (130,912) - - 6,220 (14,407) 22,680 (124,426) 107,575 -
Income from PSO - - - - - - - - - -
Provisions from Devaluation of fixed assets - - - - - - - 20,000 - -
Other (income) expenses, net 7,332 23,388 25,094 21,364 3,121 10,436 17,562 (7,869) 53,109 68,007
Loss / (Gain) of associates and joint ventures, net - 2 - - (4,350) (2,425) (0) (0) (4,350) (2,423)
Income from the spin-off the Distribution Network (52,301) - - - - - 52,301 - - -
Impairment loss of marketable securities - - - - - - - - - -
Foreign currency (gain)/loss, net 1,126 (835) - - 33 (27) (0) (0) 1,159 (862)
5,233,121 4,300,356 2,728,274 2,610,205 477,803 202,775 (2,582,984) (2,657,564) 5,856,213 4,603,166
PROFIT / (LOSS) BEFORE TAX 166,354 95,473 19,121 26,031 (84,911) (44,427) (250,386) 116,594 (149,822) 46,278
* Any differences are due to decimal roundings.
COMPANY
HEDNO
OTHER COMPANIES
ELIMINATIONS
GROUP
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
296
NOTES TO THE UNBUNDLED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
According to the provisions of European Directive 2009/72/EC, as well as the provisions of Law 4001/2011, which
integrates the aforementioned European Directive into the national legislation, unbundling is the separation of
financial statements (balance sheet and income statement) of an integrated electric utility into different financial
statements for each one of its activities.
The unbundled financial statements will reflect each activity’s financial position, assets and liabilities, as if such
activities prepared financial statements had they been separate (independent) legal entities.
PPC, as a vertically organized integrated electric utility, keeps in its internal accounting, separate accounts for its
activities and prepares separate balance sheets and statements of income for each one of its activities (balance
sheet and statement of income before tax – hereinafter referred to as “unbundled financial statements”), as if these
activities were carried out by different entities, in order to avoid discriminations, cross subsidization and distortion
of competition.
Further to the above, PPC should keep separate accounts for its activities carried out in the non-interconnected
islands.
The accounting principles applied for the preparation of the unbundled financial statements are those applied for
the preparation of the Company’s separate and consolidated financial statements. The unbundling methodology
applied by the Company for the preparation of the accompanied unbundled financial statements was approved by
the 266/2014 and 162/2019 Decisions of the Regulatory Authority for Energy. Additionally, in the Non –
Interconnected System the transactions of energy between PPC’s Generation and Supply and HEDNO, are carried
out according to RAE’s Decision 641/2013.
2. ACCOUNTING UNBUNDLING METHODOLOGY
The methodology applied for the preparation of the unbundled financial statements consists of the following phases:
• Determination of activities into which the integrated electric utility should be unbundled
• Preparation of unbundled trial balances
• Preparation of unbundled balance sheets
• Preparation of the unbundled statements of income
• Quantification of inter-segment revenues and expenses among activities through the application of an internal
pricing system
Determination of activities into which the integrated electric utility should be unbundled
The activities for unbundled financial statements are prepared, on a first level, are Mines, Generation, Distribution
Network, Supply of Electricity, Supply of Natural Gas and Corporate. The Unbundled Income Statements include
the Distribution Network Activity until 30.11.2021, due to its Spin-off from the Parent Company on November 30
th
,
2021. The Unbundled Balance Sheets do not include the Distribution Network Activity as its Spin-off was completed
on December 31
st
, 2021. On December 31
st
, 2020, the Unbundled Income Statements have been restated
according to the Note 44 of the Financial Statements.
On a second level, these activities are presented as follows:
• Interconnected System
o Mines
o Generation
o Distribution network
o Supply of Electricity
o Supply of Natural Gas
• System of Crete
o Generation
o Distribution network
o Supply of Electricity
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
297
• System of other Non-Interconnected Islands
o Generation
o Distribution network
o Supply of Electricity
Mines
Mines include the lignite extraction activity carried out in the Lignite Center of West Macedonia.
Generation
Generation includes the electricity generation activities in the Interconnected System, the System of Crete and the
System of Non-Interconnected Islands.
Distribution
Distribution Network includes the rental of assets to HEDNO SA in the Interconnected System, the System of Crete
and the System of Non-Interconnected Islands.
Supply of Electricity
Supply reflects the Company’s activity which monitors relationships with final customers of electricity in the
Interconnected System, the System of Crete and the System of Non-Interconnected Islands.
Supply of Natural Gas
Supply reflects the Company’s activity which monitors relationships with final customers of natural gas in the
Interconnected System.
Corporate
The Corporate is the adninistrative departments of the Parent Company, which provide support to PPC’s activities.
The Balance Sheet and Statement of Income of the Corporate is further allocated based on certain allocation rules,
which are described in detail in the following pages.
Related parties are reflected as a separate activity in the group unbundled financial statements.
Preparation of unbundled trial balances
In the Company’s accounting system, each the cost center and the profit center represent an organizational entity,
in which the assets and liabilities are recorded. In order for these trial balances to be generated, the following tasks
are performed, which are applied per account and cost / profit center for the minimum account degree in General
Accounting:
• Cost / profit centers are recorded in order to identify the boundaries of activities and then all cost / profit centers
to be assigned to activities with which they are related to.
• The sum totals of the cost / profit centers and accounts are reconciled with the comprehensive trial balance of
the Company.
• The trial balance accounts are codified and grouped into sections of the balance sheet and of the income
statement based on Company’s consolidated Financial Statements.
Preparation of unbundled balance sheets
At the end of each financial year, balance sheets are prepared for each of the four activities (Mines, Generation,
Supply of Electricity and Supply of Natural Gas) in the Interconnected System. In the Crete System and in the Non
– Interconnected Islands System the balance sheet includes only the activities of Generation and Supply of
Electricity.
The balance sheet for each activity is prepared under the principle of independent accounting.
The accounts of each balance sheet are as follows:
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
298
• Direct, which include the direct charges and credits of the accounts of the relevant profit centers of the
corresponding level of activity,
• Indirect of the administration departments, which derive from the administration departments of each
activity and include its allocated balance sheet accounts.
• Indirect of the Corporate, which include the allocated balance sheet accounts, which are presented in a
separate line on each activity’s balance sheet.
Additionally, the Balance Sheets of PPC’s subsidiaries are depicted separately.
Preparation of the unbundled statements of income
For each accounting period income statements are prepared for each of the five activities (Mines, Generation,
Distribution Network, Supply of Electricity and Supply of Natural Gas) in the Interconnected System, in the Crete
System and in the Non – Interconnected Islands System. Additionally, the Income Statements of PPC’s subsidiaries
are depicted separately. Mines and Supply of Natural Gas are included only in the Interconnected System.
Income statement accounts of financial nature are allocated to activities based on the loans of each activity.
Then, income statement account balances that have remained in Corporate are allocated in the activities.
For the allocation of revenues and expenses to Activities the criterion is based on direct expenses of every Activity.
Upon completion of the above allocations, the Statements of income for each Activity are prepared. The Corporate
expenses and revenues allocated to the activities are presented separately in a line item in each activity.
Quantification of inter-segment revenues and expenses among activities through the application of an
internal pricing system
Within the framework of an integrated utility products and services are exchanged among its activities, which would
be recorded if these activities would operate as independent entities.
In order for these products and services to be quantified and recorded, an internal pricing system is applied if
necessary (where there is no external determination of internal exchanges). The most important services and
products internally exchanged in PPC among its Activities, that are presented in the Unbundled Financial
Statements are the following:
Activity which
Product/ Service
Renders
Receives
Interconnected system
Lignite
Mines
Generation
Other Services
Self-consumption energy
Mines
Supply
Generation
Mines, Generation
System of Crete
Self-consumption Energy Supply Generation
System of other non-interconnected islands
Self-consumption Energy
Supply
Generation
Each activity’s revenues from product sales or services to another activity are quantified, through the internal pricing
system. Also, the activity that receives the product/ service records the related cost.
The internal revenues – expenses for each activity are defined as follows:
In the interconnected system:
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
299
• The internal energy sales for self-consumption are calculated based on each Activity’s metered
consumption of energy with the average marginal price including the Return of receivable Public Service
Obligations, Transmission System Tariffs and IPTO uplift charge.
• The Mines internal revenue is calculated in accordance of the agreement for the lignite supply between
Mines and Generation. The lignite supply contract determines the internal lignite market, i.e the lignite
sales of the activity of the Lignite General Division to the activity of the Generation General Division. The
contract covers the consumption of the lignite stations on a continuous basis, as well as with the necessary
stock for the specific period. The calculation of the relative amounts takes place on the monthly basis,
taking into account the monthly consumption and the calorific value of the lignite delivered.
In the Non-Interconnected system:
• The internal energy sales are calculated based on each activity’s metered consumption of energy priced
by the average revenue of PPC’s tariffs for the sale of electricity to Medium Voltage for Industrial Use
customers.
PUBLIC POWER CORPORATION S.A.
UNBUNDLED FINANCIAL STATEMENTS
31 DECEMBER 2021
300
ΑΝΝΕΧ 3
2021 2020 2021 2020
in millions of € in millions of € in millions of € in millions of €
INCOME
Energy sales
5,380.0 4,320.9
Competative charges 3,169.5 2,962.5
Revenue from low voltage sales 2,247.2 2,312.5
Revenue from medium voltage sales 514.3 358.2
Revenue from high voltage sales 408.0 291.8
Transmission system usage 141.7 146.4
Revenue from low voltage sales 112.1 116.4
Revenue from medium voltage sales 13.7 13.1
Revenue from high voltage sales* 15.9 16.9
Distribution system usage 458.2 485.1
Revenue from low voltage sales 433.4 460.5
Revenue from medium voltage sales 24.7 24.6
Revenue from other c harges 1.8 1.9
Revenue from low voltage sales 1.5 1.6
Revenue from medium voltage sales 0.3 0.3
Unbilled revenue and discounts * 847.1 (84.3)
Revenue from PSO 361.6 382.0
Revenue from low voltage sales 292.8 302.4
Revenue from medium voltage sales 59.2 68.2
Revenue from high voltage sales 9.7 11.4
Revenue from the special fee for the reduction of CO2 emissions 400.1 427.2
Revenue from low voltage sales 349.0 368.1
Revenue from medium voltage sales 37.1 36.2
Revenue from high voltage sales 9.1 12.0
Provisions 4.8 10.9
Exports of Energy 7.1 16.7
Wholesale energy sales
3,590.4 1,819.7
Sales of energy to wholesale market 2,794.6 937.6
Sales of energy to HEDNO 795.8 769.6
Revenue from covering the generation variable cost recovery 0.0 66.4
Transitional Flexibility Assurance Mechanism 0.0 31.9
Ancillary services 0.0 14.3
Lignite sales 1.1
GREENPASS sales 0.1
Gas sales 1.2 0.5
Other sales
24.1 25.5
Revenue from reconnection fees 1.3 1.7
Other income from consummers 1.1 1.3
Commission from Municipal Levy and tax 21.7 22.6
EXPENSES
4,808.7 3,242.0
Purchases of energy- Interconnected System
3,668.7 1,993.4
Purchases of energy by wholesale market 4,056.9 1,617.1
Transitional Flexibility Assurance Mechanism 0.0 33.7
Coverage of the generation variable cost recovery (0.1) 58.6
Charge according to the thermal units' variable cost 0.2 104.2
Ancillary services (0.1) 34.6
Settlement of losses - clearances (0.1) 45.8
Non-compliance charges 0.1 19.8
Αμοιβές συμμετοχής στο ΕΧΕ 4.3 0.0
Συναλλαγές Hedging (138.3) 0.0
Λοιπές δαπάνες Hedging 1.0 0.0
Charge of electricity suppliers for RES account L.4759/2020 0.0 65.7
Other expenses (255.2) 13.8
Energy imports
54.9 129.7
Energy purchases from non interconnected islands
585.3 584.3
Energy purchases from RES
98.5 105.7
Special fee for the reduction of CO2 emissions
401.3 428.9
Revenue from the special fee for the reduction
of CO2 emissions from interconnected system
358.3
381.0
Revenue from the special fee for the reduction
of CO2 emissions from non interconnected islands
43.0
47.9
ANALYSIS OF REVENUES - EXPENSES FROM GENERATION AND SUPPLY
GENERATION
SUPPLY
* For the revenue resulting from unbilled and discounts of low voltage, there is no breakdonwn in competative - monopoly charges to
customers
301
E. USE OF PROCEED
PUBLIC POWER CORPORATION S.A.
General Commercial Registry: 786301000
Headquarters address: Chalkokondyli 30 - 104 32 Athens
Pursuant to the provisions of par.4.1.2 of the Athens Stock Exchange Regulation, the 25/17.7.2008 and the 6.12.2017
decisions of the BOD of Athens Stock Exchange and the Decision 8/754/14.4.2016 of the Capital Market Commissions
BOD, it is disclosed that from the share capital increase of the Company by payment in cash, according to 19.10.2021
decision of the Extraordinary Shareholders Meeting and with the 29.10.2021 decision of the Board of Directors of the
Company, capital of €1,350,000,000 was raised minus the issuance costs amounting to €65,927 thousand.
From the Share Capital Increase new common registered shares were issued with subscription value of €9,00 each and
nominal value of €2.48 each, which were listed for trading in the main market of the Athens Stock Exchange on 16.11.2021.
The Board of Directors held a meeting on 11.11.2021 and certified of the payment of the total amount of the Share Capital
Increase. Until December 31, 2021, part of the raised Capital was allocated according to the use of proceeds as descripted
in the Prospectus.
TIME SCHEDULE FOR THE USE OF PROCEEDS FROM THE SHARE CAPITAL INCREASE
Amounts in thousands €
ALLOCATED
CAPITAL
ALLOCATED
CAPITAL USED
UNTIL 31.12.2021
UNALLOCATED
CAPITAL
Α. Allocation of up to €1.284 billion of approximately
€3.2 billion that the Company has budgeted for capital
expenditures on renewable energy projects through
2024, including hydroelectric power generation and
projects in adjacent markets, aiming to reach an
installed RES capacity of 7.2 GW by 2024
-
B. Allocation of up to €1.284 billion Of approximately
€1.7 billion that the Company has budgeted for capital
expenditures through 2024 on conventional power
generation, supply business unit, the construction of
a waste-to-energy plant, digitalization,
telecommunications, electric vehicle charge-points.
-
C. Allocation for other general corporate and other
investment purposes of amounts that are not material
for the Group’s financial conditions and to the extent
reasonably necessary.
-
Total
1,284,074
-
1,284,074
Issuance costs
65,926
65,926
-
Grand Total
1,350,000
65,926
1,284,074
Note that the unallocated capital is in bank account deposits of Company
Athens 5 April 2022
CHAIRMAN AND CHIEF
EXECUTIVE OFFICER
VICE
CHAIRMAN
CHIEF FINANCIAL
OFFICER
ACCOUNTING
DEPARTMENT
DIRECTOR
GEORGIOS I.
STASSIS
PYRROS D.
PAPADIMITRIOU
KONSTANTINOS A.
ALEXANDRIDIS
EFTHIMIOS Α.
KOUTROULIS