Greece's PPC, Mytilineos seek dispute arbitration

ATHENS, July 7 (Reuters) - Greece's top electricity producer Public Power Corp (PPC)said on Tuesday it would seek arbitration to resolve a dispute with its biggest client, Aluminium of Greece, over electricity prices. Aluminium of Greece, southeast Europe's biggest aluminium smelter, last year refused to accept a 10 percent increase in PPC's electricity prices, citing profitability concerns amid a slumping metals market. PPC, which increased electricity prices to finance a 13.3 billion euro ($18.6 billion) plan to build new power plants, had briefly threatened to interrupt the power supply to Aluminium of Greece. Energy accounts for 40 percent of Aluminium of Greece's costs and is seen as a key factor for its profitability. Aluminium of Greece is a unit of the Mytilineos Group, which aims to become PPC's biggest rival in the Greek electricity market. ($1=.7154 euros) (Reporting by Harry Papachristou; Editing by Greg Mahlich)