This page has been archived and commenting is disabled.

First Real Greek Bailout: Electricity

Tyler Durden's picture




 

While Greece has had its fair-share of EURs funneled to it and through it over the course of the last year or two, it appears they have now created their first 'internal' bailout as things go from bad to worse. As Athens News reports, Greece will provide EUR250mm in emergency funds to its ailing electricity providers to prevent a California-style energy crisis. This liquidity injection to the country's power utlities was yet another unintended consequence of government intervention action. An increasing number of consumers stopped paying their electricity bills following the TROIKA's Greek government's infliction of EUR1.7bn property taxation via the electricity providers. The main power utility PPC had a liquidity hole blown through it as non-payments mounted and while regulators claimed the system needed at least EUR350mm to stay afloat, the government has agreed to allow PPC to hold EUR250mm of the property tax it has collected on behalf of the state until June 30 - by which time, it is hoped the utility will have managed to secure other lending facilities. Quite an incredible move - to force the electricity provider to gather the property taxes - and while this attempt clearly failed we suspect the next move will be food-and-water-rationing without proof of tax payment.

 

Greece gives emergency cash to avert energy meltdown

Greece will provide 250 million euros  in emergency funds to its ailing electricity providers to prevent a California-style energy crisis, government officials said on Friday.

 

The liquidity injection removes the risk of a financial chain reaction which, according to regulators, was threatening to bring the country's electricity system to its knees.

 

The temporary aid will shore up the accounts of main power utility PPC, allowing it to maintain operations and reimburse other suppliers of electricity and natural gas on whom the smooth functioning of the country's energy system depends.

 

"The measure was taken to bolster PPC's liquidity position," one official told Reuters after a cabinet meeting that authorised the move.

 

Greece's energy market has fallen into disarray due to a combination of stagnant power demand, rising fuel costs and a government decision to use PPC as a tax collection vehicle.

 

An increasing number of consumers stopped paying their electricity bills after the government started collecting a 1.7 billion euro property tax through them last year, in a desperate effort to meet its budget targets under an EU/IMF bailout.

 

Non-payments blew a hole into the accounts of PPC, which is Greece's biggest power producer and its sole electricity retailer. PPC, which posted a record loss in the fourth quarter, is also the biggest client for upstart producers generating about 23 percent of Greece's electricity.

 

The liquidity crunch sparked fears of a power meltdown like the one that happened in 2001 in California, which suffered large-scale blackouts after its energy market collapsed.

 

In a paper released earlier this week, Greek electricity regulator RAE said the system needed an immediate liquidity injection of at least 350 million euros to stay afloat.

 

The government partly heeded the regulator's call on Friday, allowing PPC to retain until June 30 about 250 million euros of the property tax it has collected on behalf of the state.

 

This will be a temporary solution until the company's cash situation improves later this year, officials said. PPC said last week it agreed terms for a 960 million euro bank loan to cope with the liquidity crunch and roll over 1.12 billion euros of maturing debt later this year.

 

Energy is a sore point in the country's relations with its lenders. The EU and the IMF have been pressuring Athens to introduce more competition in its 5-billion euro retail power market by deregulating electricity prices and abolishing PPC's monopoly over coal, the country's cheapest and most abundant energy source. (Reuters)

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 04/28/2012 - 20:42 | 2382898 devo
devo's picture

Feel feel feel...feel my heat.

Sat, 04/28/2012 - 21:01 | 2382920 GenXer
GenXer's picture

So Greece is in the Coked up Dirk Digler stage of demise? Next stage will be Jacking it in San Fran and stealing from drug dealers.

Sat, 04/28/2012 - 21:26 | 2382946 macholatte
macholatte's picture

 

The Greeple are doing it by the book; killing themselves and not taking any of the guilty with them. Maybe some Greeks should get some training from the Arafat School for Homocide Bombers. The elites must surely be laughing. 

 

Suicides have Greeks on edge before election

http://www.reuters.com/article/2012/04/28/us-greece-election-suicide-idUSBRE83R08N20120428

Sun, 04/29/2012 - 08:54 | 2383455 francis_sawyer
francis_sawyer's picture

You got the touch! You got the POWER!

~~~

http://www.youtube.com/watch?v=eYAAbbuEpnw

Sun, 04/29/2012 - 09:24 | 2383481 GMadScientist
GMadScientist's picture

a) You forgot the "recording career" stage

b) That was Encino

 

Sat, 04/28/2012 - 21:08 | 2382928 Manthong
Manthong's picture

It seldom freezes and they can survive without electricity there..  they’ve done so since before Oedipus had a complex..

If I got a tax bill with my electricity.. I would kill it.

One way or the other, I will have little or no external electricity within a couple years.

Sat, 04/28/2012 - 22:19 | 2383009 CrashisOptimistic
CrashisOptimistic's picture

True.

You won't.

 

Sat, 04/28/2012 - 22:53 | 2383068 Harbanger
Harbanger's picture

"they’ve done so since before Oedipus had a complex.."

And not a day before Thomas Edison's 1st commercial electric system.

Sat, 04/28/2012 - 21:56 | 2382983 lamont cranston
lamont cranston's picture

I, for one, would love to see Angie M. going up to a Smart Meter to cut it off from Zorba. Hot dam. 

Sat, 04/28/2012 - 20:47 | 2382900 Ahmeexnal
Ahmeexnal's picture

With a portrait of David Rockefeller watching over her, "muppet" Angela Merkel declares her "kampf":

http://www.thelocal.de/money/20120425-42175.html

http://www.prisonplanet.com/kleptocrats-launching-spring-offensive.html

Sat, 04/28/2012 - 21:32 | 2382950 Caviar Emptor
Caviar Emptor's picture

Nice snapshot

Sun, 04/29/2012 - 05:18 | 2383258 Element
Element's picture

In your second link: 

“...Longtime Australian official Kim Edward Beazley revealed more about NATO’s plans, as the alliance, created in 1949 to counter Soviet expansionism, morphs into a hair-trigger “top cop” for those constructing a world union under the broad planning of the Bilderberg group, in league with a host of world government consensus-builders, including the Chicago Council on Global Affairs and similar World Affairs Councils that reach down to the grassroots.” … “Beazley suggested that the Trans-Pacific Partnership (TPP), a “super-NAFTA” free-trade scam that these one-worlders want to foist on the Far East to bolster the pending Pacific Union, is a critical goal for global governance. Given the context in which he announced the perceived need for a TPP, it’s highly likely the TPP will be a specific topic, as part of NATO’s eastward expansionism, at the NATO summit itself.”..."

 

That guy Kim Edward Beazley, is the father of the same horrifically tedious jerk who was Finance Minister (and a really shitful Defence Minister) here during the 1990s, who handed the banksters total private control of all banks, to collude, rape and pillage at will, in Australia.

The problem with this is that Kim Edward Beazley already died, about six years ago!

" ... died in Perth on 12 October 2007, and was accorded a state funeral on 20 October.[5] His memoirs were published posthumously in February 2009.[4] with a foreword by his son Kim Christian Beazley who himself had a distinguished career as a Labor politician and party leader." ..."

 http://en.wikipedia.org/wiki/Kim_Edward_Beazley 

 

So the article is actually referring to his son, Kim Christian Beazley, who's current job is Australia's Ambassador in Washington ... a traitor, a chump, a usable dumbfuck, basically an utter scumbag.

So he is a Trilateral Commission NWO Bilderberger as well? 

Now that makes some sense! He was backed by them, he was their puppet all along.

Kim's boss, the PM of the day, Bob Hawke, was also a former left-wing national workers union leader in the ACTU (i.e. an ultra lefty as PM), and of course, a Rhodes Scholar (i.e. another NWO shop-front that manufactured these 'leaders', to order, in the western world). The top-tier of the Australia Labor Party like elsewhere, used socialism to be-friend the people, before letting the banksters in ... to gut them and their national and cultural base.

I had already deteremined that Kim Christian Beazley was one of the key traitorous scum that was actively working against the Australian people's interests, I just didn't understand why he would be doing it.

 

Now I do know.

 

I made a previous zh comment about this guy's involvement in letting the Banksters take over in Australia, at this link:

http://www.zerohedge.com/news/europe-broken-again-sarkozy-and-lagarde-ar...

 

This is the guy that Prison Planet article is really referring to:

http://en.wikipedia.org/wiki/Kim_Beazley 

"Beazley was educated at Hollywood Senior High School and later at the University of Western Australia and Balliol College, Oxford (having been a 1973 Rhodes Scholar), where he gained a Master of Philosophy degree. At Oxford, he befriended Tony Blair, who would become a British prime minister, and Geoff Gallop, later to be a premier of Western Australia. After he returned to Australia, he tutored and lectured in politics at Perth's Murdoch University, recruited to Labor's right-wing faction by Graham Richardson and John Ducker,[2] before being elected MP for the seat of Swan at the 1980 election. ...  He worked as a professorial fellow at the University of Western Australia, focusing on politics, public policy and international relations.[21] He also served as Chancellor of the Australian National University in 2009, having succeeded Allan Hawke.[22] He is a member of the Council of Advisors of the United States Studies Centre at the University of Sydney.[23]  In September 2009, Beazley was appointed as Australia's Ambassador to the United States of America.[24] His appointment began in February 2010.[1]

... "

 

Beazley is likewise a 1973 Rhodes Scholar.  And it just so happens that in 1973 his father, Kim Beazley Senior (now dead), was Australia's Minister for Education.  And ever since that particular year Australia has been going down a steepening path to extreme Political-Correctness, Multi-culturalism, Nanny-State Socialism and the ever spreading Financialist control of NWO squids.

And the current PM, Julia Gillard is just more of the same slime, only she's actually overtly zionist, and has also massively engaged herself in National Education, as a Minister under PM Kevin Rudd, and Gillard has maintained her involvement in State Education even whilst holding her position as the current Prime Minister!

i.e. These puppets and traitors have clearly identified that State education and the resulting conducive conditioning is a key factor in completing the  bankster NWO take-over of Australia, from top to bottom.

Something that in 1972 would have seemed an unlikely development, given how sceptical and rebellious to power the prevailing culture at that time was, and how compliant, spineless and stupified it has become in just one generation of NWO re-education.

What these recent comments by Beazley and the Trilateral Commission do reveal, is that NATO is indeed the primary tool the NWO Banksters have created in order to bring about a global political union and global 'defense' alliance, that can then use its force to, well, force itself on to the rest of the world.

Sun, 04/29/2012 - 06:14 | 2383346 ConfederateH
ConfederateH's picture

Nice expose on Australia, Element.  Here in Switzerland the CB/Bankter cabal came in through the front door, Ospel at UBS and Gruebel at CS.  Interestingly, Gruebel later moved to UBS too.  Those two banks have balance sheets probably 10x bigger than the GDP of Switzerland.  Those 2 banks have been completely subsumbed by the $IMFS and have sold out Switzerland.  Simply observe how Blocher was "Strause-Kahned" over the Hildebrand affair, Blocher being the only parliament member would would have resisted the complete anglo-american take over of the SNB and the Swiss financial system. 

Sun, 04/29/2012 - 08:08 | 2383424 Dugald
Dugald's picture

Kim Beazley....this is the educated prat who committed Australia to the building of the Collins class submarine...by a Swiss firm who had never designed or built a sub in its life, and what an astonishing product the sub proved to be....it made so much noise in the water it was totally useless as a hunter killer, riddled with problems large and small from day one....yep that's our Kim, prize chump with seaweed clusters.

Sat, 04/28/2012 - 20:49 | 2382903 LetThemEatRand
LetThemEatRand's picture

I'm sure it's just a coincidence that the large majority of the recent bailout went directly to bondholders and bankers.   This is exactly what the IMF and its cohorts have been doing for years to third world countries according to Perkins in Confessions of an Economic Hitman.  

Sat, 04/28/2012 - 21:14 | 2382935 WallowaMountainMan
WallowaMountainMan's picture

'This is exactly what the IMF and its cohorts have been doing for years to third world countries...'

 

being an old guy, i remember those imf bustin up the locals and given the assets to the rich. look for it in a theatre near you.

Sat, 04/28/2012 - 20:47 | 2382907 holdbuysell
holdbuysell's picture

The trend is that the situation continues to get worse.

For all other countries with similar debt problems, take heed.

Sat, 04/28/2012 - 20:52 | 2382912 knukles
knukles's picture

Exactly.
Do not let the Greeks collect your taxes for you.

Sat, 04/28/2012 - 21:21 | 2382930 LetThemEatRand
LetThemEatRand's picture

Close.  Don't try to make the Greeks collect taxes payable to global bankers by threatening to cut-off their electricity if they don't comply.

Sat, 04/28/2012 - 22:04 | 2382994 wisefool
wisefool's picture

Many people dont realize this, but Timmay Geithner is a tax cheat. He is SEC-TRES and peter schiff's dad is in jail.

I am actually glad big sis is in charge of the US-SS now.

Sat, 04/28/2012 - 21:20 | 2382939 Caviar Emptor
Caviar Emptor's picture

Congratulations. Greece has now crossed into the first stages of fascism: state backed private monopolies get direct support out of tax money that everyone pays into, no choice.  And those monopolies get invested with powers that the state once had exclusively

Today the electric utilites, tomorrow the filling stations and supermarket chains. 

And citizens will soon have required jobs working for those monopolies at state-approved wages for state-approved hours and without recourse or alternative. 

Oh but every year there will be a one-day holiday and parade to honor the anniversary of the first day of the new utopia! 

Sat, 04/28/2012 - 21:22 | 2382944 lakecity55
lakecity55's picture

Step by step, what the banksters will do to the US.

Sat, 04/28/2012 - 21:29 | 2382949 Caviar Emptor
Caviar Emptor's picture

Yup. Soon vets will be required to do fracking in North Dakota for a year for private drilling companies. Detroit citizens will be working for GM and Ford in return for food and rent stamps. Then you and I will be working shifts making American-themed souvenirs for export to Chinese yuppies. If we don't we'll have to work in the tar sands for two years. 

Sun, 04/29/2012 - 06:20 | 2383357 ConfederateH
ConfederateH's picture

At least in the US you have Ron Paul and a constitutional movement.  In Europe it is 100% socialist zombies who believe that only the state can get them out of their mess.  Just look at this article on Greece:  the people stop paying their electricity bills and then expect the government to keep the lights on. 

Sat, 04/28/2012 - 21:32 | 2382951 rsnoble
rsnoble's picture

The only good banker is a DEAD banker.

Sun, 04/29/2012 - 08:15 | 2383429 Dugald
Dugald's picture

And will you be the first stand-up guy to go out and shoot one... No?......Hmmm did'nt think so, but it makes you sound tough eh?

Sat, 04/28/2012 - 21:43 | 2382964 Yen Cross
Yen Cross's picture

 I couldn't agree more, with the AUTHOR; of this post!  The one thing that I question is, why has it taken so long for "anyone" in the finance industry to accept {[  REALITY? 

 Every major " global" investment bank, is drunk on " FUNNY MONEY" , or lack there of!?

Sat, 04/28/2012 - 21:44 | 2382968 q99x2
q99x2's picture

The cost to charge an iPhone in Greece equals one dead bankster.

Sat, 04/28/2012 - 21:45 | 2382969 zorba THE GREEK
zorba THE GREEK's picture

Soon there will be rioting non-stop in Greece, which will be followed by a military takeover.

It won't be the the first time, and probably not the last time. The U.S. will have their share

of rioting in 2013 or 2014 folowed by a declaration of martial law. In 2016, General Petraos

will be elected president. Zorba has spoken. 

Sat, 04/28/2012 - 21:53 | 2382981 Peter Pan
Peter Pan's picture

Zorba you are probably right, but I fear that behind the army will be some foreign power or powers. As Zorba famously said, "the full catastrophe".

Sat, 04/28/2012 - 21:49 | 2382971 Peter Pan
Peter Pan's picture

With their fridges alteady empty, power blackouts would at least keep those TV's off and give the people some respite from the political drivel being spewed forth.

Sat, 04/28/2012 - 22:16 | 2383006 derek_vineyard
derek_vineyard's picture

but they cant miss DWTS....be merciful

Sat, 04/28/2012 - 22:05 | 2382993 Believable-Hypocrite
Believable-Hypocrite's picture

No problem they are going to install an extension cord from Israel to Cyprus  to Greece.

 

http://www.ekathimerini.com/4dcgi/_w...04/2012_439794

Greece-Cyprus-Israel undersea cable is announced

 

Sat, 04/28/2012 - 22:22 | 2383018 Yen Cross
Yen Cross's picture

 That was a really good comment! +1

Sat, 04/28/2012 - 22:12 | 2383003 fourchan
fourchan's picture

its like enron with a side of flaming cheese.

Sat, 04/28/2012 - 22:13 | 2383005 sabra1
sabra1's picture

i sent Janet Napolitano a gas powered dildo just in case she loses her electricity!

/

Sat, 04/28/2012 - 22:50 | 2383065 Yen Cross
Yen Cross's picture

 BIG Sis is only into, " Nuclear Prophylactics"  <>  Mamas got a "Squeeze box"  ( the who), Ohh ya Baby!!!

Sun, 04/29/2012 - 04:11 | 2383277 Dr. Sandi
Dr. Sandi's picture

i sent Janet Napolitano a gas powered dildo

So did Bernanke go willingly?

Sun, 04/29/2012 - 14:23 | 2383766 Cast Iron Skillet
Cast Iron Skillet's picture

LOL! LOL! I wanted to up-arrow you, but the post is suffering from the "1st letter is italicized" problem, which somehow seems to prevent "arrowing" ... (ZH should contact their computer service representative to get this fixed!)

Sat, 04/28/2012 - 22:16 | 2383007 El
El's picture

And another opportunity for corruption was created. Wonder where those tax dollars will ultimately end up. Bonuses, anyone?

Sat, 04/28/2012 - 23:49 | 2383143 KickIce
KickIce's picture

This might give them a few ideas on how to remedy the problem.  go to the 1:00 minute mark.

http://www.youtube.com/watch?v=eQqDi6hozWY

 

 

Sun, 04/29/2012 - 01:01 | 2383190 Dre4dwolf
Dre4dwolf's picture

So I can stop paying taxes in greece if I own a home by not having any electricity?

This is genius.

 

I don't need any stinking power, Ill make my own, with the savings from not paying the electric bill or taxes, I could heat my home by shoving all the bills into a boiler as fuel... ;p and its free.... because if theres one thing that bureaucracies never run out of its paper to mail you with meaningless scribes on it.

Sun, 04/29/2012 - 02:09 | 2383224 Loukanika the r...
Loukanika the riot dog's picture

The PPC was having financial problems through profligacy and bad management even before the property tax was introduced here.  They have been withholding the tax from the Government that HAS been collected see http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_26/03/2012_434791. Most people I know do object to the property tax and refuse to pay it but still pay their electricity bills. If there is a power cut here we also lose our water supply. (It has to be pumped into the house) There is no well in the village so you can't go with buckets to collect water (as I have done in the past whilst living in the Philippines) So we are FUCKED.

The shareholders and bankers all get bailed out and cream the money while we suffer.

And please note this wouldn't have happened in November when NO tourists would be arriving we the PEOPLE would have to suffer the power cuts and get on with it.

So the German tourists can still enjoy there holidays here /sarc

Sun, 04/29/2012 - 06:05 | 2383321 GreetingsFromGermany
GreetingsFromGermany's picture

At least something what Greek people share with the growing number of working poor in Germany: At least 600.000 Germans can't afford electricity:

This lead article is just two hours old - today every big newspaper in Germany is publishing this top theme on it's cover page.

Welt-Online: "Strom ist für viele Deutsche unbezahlbar geworden" - means: "Many Germans can't afford electricity anymore"

Link: http://www.welt.de/wirtschaft/article106236425/Strom-ist-fuer-viele-Deut...

 

Sun, 04/29/2012 - 06:09 | 2383347 noses
noses's picture

Of course – with all that money going to Greece… Germany should really stop caring about their problems and start taking care of their own first.

Sun, 04/29/2012 - 05:46 | 2383337 pcrs
pcrs's picture

gogo Greek, don't give the bastards a cent in taxes. They need you, you don't need them.

Sun, 04/29/2012 - 06:13 | 2383353 noses
noses's picture

Nobody needs Greece at all. Olives and oil? Spanish olives are superior (so let's protect the Spanish economy). Cheese? Not that great, either. Sheep/goats? Can be produced everywhere.

 

What about handing Greece over to the Turks in exchange for leaving the Kurds alone and defaulting on Greek debts? Might be a win-win-win situation for all involved.

Sun, 04/29/2012 - 06:47 | 2383373 sessinpo
sessinpo's picture

Well if it gets to the point of eviction, I guess we'll see a lot of homes burn down. Get yourself some heat while destroying the property they want to collect taxes on.

Mon, 04/30/2012 - 14:29 | 2384203 GreetingsFromGermany
GreetingsFromGermany's picture

Don't worry about eviction. As in Greece the ownership rate exceeds - as everywhere in the Club Mediterranee - 80 percent, the Greek inhabitants don't have to fear that. Eviction is something, which will happen only in Germany, where 52% of the people - mostly workers - don't own a flat or house and therefore live in rented accomodation. In addition to it, the Germans have to pay a lot more money for energy (cold Germany) and other public charges. Unfortunately they don't get pensions of their dead relatives and pay - to cap it all - something we call here "taxes".
That's the reason, why many Germans - after the pensions in Germany where cut so broad - have to provide additionally personal and privat for retirement arrangement, but as part of Nevercomeback-Target-II-Credits those payments and insurances - mostly asset-backed by federal bonds ("Bundesanleihen") - are also already in the ClubMed. 
This coherences makes the game more and more easy for the ClubMed to request for more bailouts (newest example: the new growth pact - fundet by ??? and Eurobonds), as our Chancellor is just a chased politician who once decided to start distributing money of people who live in strong austerity for already 15 years - reunification included already 23 years - with her naive imagination to change Greek mentality whithin a couple of month.  

 

 

Sun, 04/29/2012 - 11:15 | 2383585 egoist
egoist's picture

Maybe Spain can send their zombie wind machines and solar cathedrals to Greece, so that Spain get get more EUROs from Germany and Greece can thwart the local tax man.

Sun, 04/29/2012 - 12:55 | 2383683 AnAnonymous
AnAnonymous's picture

Did they not hire or were imposed German advisors on collecting taxes?

The puppet and the puppeteer. Shoot the puppet in all cases.

Sun, 04/29/2012 - 17:29 | 2383926 Loukanika the r...
Loukanika the riot dog's picture

New noses

Get Mary Poppins to wipe your fucking  arse Greece is a country inhabited by human beings much the same as your self. If the shit was all pulled fron under your fucking feet how would you feel>

Sun, 04/29/2012 - 17:40 | 2383939 Loukanika the r...
Loukanika the riot dog's picture

Totally O/T but somewhat relevant in todays climate FREE COUNTRY by Seasick Steve http://youtu.be/Yj46SPELMMM

Don't want your kind hanging around here!

Exactly what kind would that be??

Do NOT follow this link or you will be banned from the site!