PPC and Larco agree on a 27 pct discount on electricity tariffs breaking deadlock

Power utility PPC agreed on Wednesday on a 27 percent discount over tariffs charged to big industries for its second biggest client, the state-owned general mining and nickel producer Larco, in a long-standing dispute which has left the miner with unpaid bills totaling hundreds of millions of euros.

According to the agreement, Larco will receive an extra 11 percent if it pays its bills on time and transfer to PPC the right to collect accumulated arrears towards Larco. The miner will be considered a consistent customer if it manages to repay at least three million euros every month between January and August 2017. Any additional debts will be divided in 16 tranches, starting on September 2017.

The agreement follows numerous negotiations over several years between different boards of the two companies regarding the settlement of Larco’s debts.

The deal will be submitted for approval to PPC’s board meeting on Thursday and will cover the period from 2016 to the end of 2020. The arrears of the period 2010-2015, for which a decision of an arbitral tribunal is pending, will be settled within the year.