Annual Financial Report for the period from 1st of January to the 31st of December 2012
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In the decision 692/2011 RAE mentions clearly that the high voltage regulated invoices (A-150) have been abol-
ished from 1/7/2008 and PPC should have negotiated with its clients in order to set up personalized invoices in
the same decision RAE sets the Basic Invoicing Principles as follows:
• The invoices must reflect the real supply cost , in other words cover (a) the production cost as this is revealed
in the wholesale market and in the various processes / mechanisms in part (b) the cost of the trade activity
and of the client management (such as the cost of the services for the issue and collection of the invoices, the
function of the commercial centers of the Provider etc ) and (c) a reasonable profit.
• The invoices must not make any distinction between the consumers with the same electrical specifications
as well as crossed subsidies among consumers with different specifications.
• The invoices must not bias the competition
• The invoices must provide a distinction of the charges
Any eventual re-adaptation processes / mechanisms must be transparent contributing in that way to avoiding
the exaggerated changeability / volatility and with sufficient choices regarding the risk of the price fluctuation
in time.
After issuing the aforesaid decisions of the RAE, negotiation groups with authorized representatives of the
parties came to meetings during which the renegotiation of the afore mentioned terms was discussed in the
light of the decisions no 798/2011 and 692/2011 and whose content is binding for both parties, as provided by
the decision no 798/2011.
In the last meeting it was agreed upon that the ALUMINIUM S.A. sends in writing its opinion regarding the two
basic subjects where a divergence or even a complete juxtaposition of the contract draft was located regarding
the principles defined by the RAE and in particular: a. the definition of the low charge zone not based on the
administration defined zones as there were in force in the old and abolished invoice of PPC (A-150) but based
on the real demand conditions in combination with the energy mix f electrical production of PPC which covers
this demand and b. The formulation of a specific proposal on the invoicing way of the electrical energy for the
other (except for the low charge hours) according to the terms defined by the decisions of the RAE, in other
words so that they reflect the cost of PPC S.A. as revealed in the wholesale market plus a reasonable profit and
the regulated charges.
ALUMINIUM S.A indeed sent its opinions to the Public Power Corporation S.A (PPC) on 31/8/2011. Since no
agreement was made possible on the basis of what was mentioned above and in an effort to find a definitive
solution to the problem, the parties involved decided to refer the matter to the RAE (Regulatory Authority for
Energy) in accordance with article 37 of the 4001/ 2011 Law, so that the arbitration body can formulate the final
terms of the supply contract.
After the afore-mentioned facts, and in order to facilitate the relevant decisions to be made by the competent
bodies of PPC, Aluminium S.A decided to and actually effected the deposit of € 25.624.000 as down payment
for its total liabilities towards PPC S.A., reserving the decision for the clearing of the above sum with the sum
that will be calculated after the final pricing , as it will be formed following the decision of the arbitration court.
Finally, both parties also formally referred the issue to the arbitration body under RAE on 18/11/2011, submit-
ting to RAE the relevant arbitration agreement.
