EU Escalates Antitrust Case Against Greece’s PPC Over Electricity Pricing

The EU’s executive arm has issued a supplementary statement of objections to PPC, providing additional details about how regulators are evaluating the company’s pricing practices between 2013 and 2019, according to a report by Traders Union.

The move advances an investigation into whether PPC violated European competition rules by selling electricity at prices that rivals may have been unable to match sustainably.

The latest filing builds on allegations outlined by the Commission in February 2024, when regulators formally raised concerns about PPC’s conduct in Greece’s wholesale electricity market, Traders Union reported.

Regulators Focus on Pricing Methods

The Commission’s supplementary objections primarily clarify the analytical approach used to determine whether PPC supplied electricity below its costs during the six-year period under investigation.

The distinction is significant because selling electricity at low prices does not automatically constitute an antitrust violation. Regulators must assess whether the pricing behavior of a dominant company could have restricted competition.

According to Traders Union, the Commission is examining whether PPC’s pricing strategy may have disadvantaged its principal competitors, potentially limiting their ability to compete in Greece’s wholesale power market.

The investigation centers on PPC’s historical market position, particularly its control of the country’s lignite-fired and hydroelectric generation capacity during the period under review.

That control gave the company a substantial presence in electricity production, making its commercial conduct an important consideration in the Commission’s assessment of market competition.

Dominant Market Position Under Scrutiny

PPC’s role as Greece’s leading wholesale and retail electricity supplier is a central element of the investigation.

During the years covered by the case, the utility controlled all of Greece’s lignite and hydropower generation capacity, according to the Traders Union report.

European regulators are examining whether that position, combined with the company’s alleged pricing practices, could have weakened competition by making it more difficult for other electricity suppliers to operate effectively.

The case highlights the regulatory challenges surrounding electricity markets in which established suppliers hold significant generation assets while competing with smaller market participants.

A determination that PPC engaged in unlawful exclusionary pricing could also influence how European competition authorities evaluate similar conduct by dominant energy companies elsewhere in the bloc.

No Final Decision Reached

The supplementary statement of objections does not establish that PPC violated EU competition law.

Instead, it represents another procedural stage in the Commission’s investigation, allowing regulators to refine their concerns while giving the company an opportunity to respond.

PPC retains the right to contest the Commission’s findings and present arguments in its defense before any final determination is made, according to Traders Union.

Source: Traders Union