One-million-euro pollution fine for Greece's state power giant PPC

(ATHENS) - Greece's environment ministry on Monday slapped a landmark fine of one million euros (1.4 million dollars) on the state-owned Public Power Corporation (PPC) for excessive air pollution.

The fine, the first of its kind imposed on the electricity giant, was levelled after inspectors found above-level sulphur dioxide and particle emissions at three of its coal-fired plants, Environment Minister George Souflias said.

"Measurements have found that 40 percent of greenhouse gas emissions in this country come from the PPC, and the company makes a major contribution to air pollution," Souflias said in a statement.

Fines worth 600,000 euros were imposed on the PPC plants in Ptolemaida and Kozani which repeatedly exceeded health-mandated particle levels last year.

The same two stations topped a list of the worst-polluting European Union electricity plants in 2006, compiled by environmental group WWF International.

Another 400,000 euros was imposed on the Megalopoli plant in the Peloponnese, where sulphur dioxide emissions at two of its stations had repeatedly exceeded permitted daily levels.

Inspectors also found lax emissions testing and sulphur filters which at one of the stations were inoperative for over a third of its running time in 2006.

"Greece must be consistent with its Kyoto Protocol obligations," Souflias said, referring to the United Nations protocol on cutting greenhouse gas emissions.

He added that inspections would be extended to all PPC plants.

A near-monopoly operator, the PPC controls around 89 percent of the Greek electricity market and the national power grid. Some 56 percent of its power production comes from lignite, a low-grade brown coal that is a heavy pollutant.

Residents near PPC plants and environmental groups had complained that the company was committing serious pollution violations for years, to no avail.

The PPC blamed the problem on low-grade lignite and said ongoing upgrades would reduce pollution from 2008 onwards.

It also said that high demand for power along with a state ban on building new plants made it difficult to sideline older facilities.