takis athanasopoulos chairman & ceo public power corporation sa 6 th regular general meeting of...

Takis Athanasopoulos Chairman & CEO

PUBLIC POWER CORPORATION SA

6th Regular General Meeting of Shareholders

Athens, June 12, 2008

Public Power Corporation SA – 6th Regular General Meeting of Shareholders p. 2

4

3

2

1Financial results

2007 Review

1st Quarter 2008

Challenges and Next Steps

General Meeting of Shareholders June 2008


4

1Financial results

22007 Review


31st Quarter 2008



Company profile

OperatingOperating• Installed capacity: 12,760MW• Sales: 55,153 GWh• 24,602 Employees• 7.4 million Low Voltage

customers, 9,056 Medium, and 33 High Voltage customers

Financial Financial • Revenues: €5.2 billion• EBIDTA: €818.7 million• Investments: €856.8 million• Total assets: €13.4 billion• Net debt: €3,724.4 million

Company Data 2007

6,43,8

51,131,8

6,8

Greek State

Foreign structural investors

Personnel Insurance Organization [OAP]

Natural persons

Greek structural investors

Natural gas15.4%

Renewable0.7% Lignite

41.4%

Oil5.9%

Islands (oil)13.0%

Hydroelectric23.6%

Shareholders

Installed capacity by fuel type


Development of economic fundamentals

% Δ-% Δ-RevenueRevenue

% Δ-% Δ-EBITDAEBITDA

% % ΔΔ-Profits before taxes-Profits before taxes

% % ΔΔ-Profits before taxes -Profits before taxes (without Tellas)(without Tellas)

€ million

+ 5%+ 5%

- 25%- 25%

- 61%- 61%

- 61%- 61%

+ 12%+ 12%

- 18%- 18%

- 79%- 79%

- 79%- 79%

+ 8%+ 8%

+ 11%+ 11%

+ 558%+ 558%

+ 165%+ 165%

• Despite the improved figures over the previous year, profitability remains at very low levels.

4,095

1,207

502

4,291

901

196

4,787

740

42

5,154

819

276

111

2004 2005 2006 2007

Revenue

EBITDA

Profits before taxes

Profits before taxeswithout Tellas


49,8 48,4

13,1 13,3

18 14,2

5,3 10,4

13,8 13,7

2007 2006Lignite Oil Natural gas Hydroelectric Electricity purchases

Energy Balance

Total:Total: 60,313 GWh60,313 GWh

29,164

8,042

8,543

6,255

8,309

TotalTotal: : 62,498 GWh62,498 GWh

31,093

8,207

11,266

3,143

8,789

%% %%GWhGWh22..185185

1,9291,929

165165

2,7232,723

-3,112-3,112

480480

1

1. Includes PPC generation from renewable sources, 172GWh in ‘07 & 61GWh in ‘06


Fuel and electricity costs asShare of Revenue (2008 to 2007)

38%41%

12%12%

35%31%

15%16%

2007 2006

Fuel and energy purchases PPC lignite Wages and other expenses ΕΒΙΤDA

41% of revenue is directly

exposed to the fluctuation of international fuel prices


4

3

2

1Financial results

2007 Review

1st Quarter 2008

Challenges and Future Steps



Main prioritiesof PPC strategyRegulatory

FrameworkAlignment

New Sources of Revenue

Generation Strategy

Efficiency Improvements

Corporate Culture


Accounting and Operational Unbundling

Your Text

Your Text

Your Text

Your Text

SmallSmall but ImportantImportant steps of rationalization of the electricity market

Your Text

Regulatory Framework Alignment

Tariff regulations and measures

Establishment of International Fuel

Surcharge mechanism

Enactment of Public Utility Services and distinct

recordingof such services

on customers’ bills


PPC Regulatory adjustments: Accounting and Operational Unbundling

Accounting Unbundling:Accounting Unbundling:

• Contract of Differences, between the PPC Divisions of Generation and Supply

• Buy-and-Sell Contract, between the PPC Divisions of Mines and Generation

Operational Unbundling:Operational Unbundling:

• Individual Annual Operations and Investments Budgets of the PPC Division, and Consolidated Budget for PPC SA

• Individual budgetary accounting statements (pro-forma statements) of the Divisions, and consolidated for PPC SA


Tariff regulations and measures

• Tariff increases:

– Average increase 10% in 2007

– Average increase 7% as of July 2008

– Deregulation of high voltage tariffs from July 2008, with initial regulated tariff +10%

• Improvement of transparency of Electricity charges:

– Distinct recording of separate charges on end-user bills

• Separate recording and presentation of charges in favor of third parties on PPC electricity bills


Fuel Surcharge Mechanism

• Beginning on 1.1.2009, and on a quarterly basis, the fuel surcharge mechanism will integrate part of the fluctuation of international fuel prices into electricity tariffs

• If, until the end of 2008, oil prices remain around $130/bbl and the €/$ exchange rate at 1.55, and given that the price of natural gas follows the price of oil with a three-month delay, the implementation of the international fuel surcharge mechanism will lead to a revenue increase above 5%, for the first quarter of 2009


Enactment and distinct recordingof the cost of Public Service Obligations

• Recognition of Public Service Obligations (PSO)

• Approval of methodology for calculating the cost of PSO

• Proposal from PPC, submitted for approval to RAE and the Ministry of Development, for a mechanism to distribute the cost of PSO between low, medium and high voltage consumers

• Beginning on 1.1.2009 and on an annual basis, the PSO readjustment mechanism will integrate part of the fluctuation of international fuel prices and part of the consumer price index

• If, until the end of 2008, oil prices remain around $130/bbl and the €/$ exchange rate at 1.55, the regulatory mechanism will lead to an annual revenue increase above 1.5%


• Ensures reliability and Ensures reliability and higher efficiencyhigher efficiency

• Reduces generation costsReduces generation costs

• Sustains competitivenessSustains competitiveness

• Reduces environmental Reduces environmental impactimpact

Θεσμοθέτηση μηχανισμού Διαχείρισης Διεθνών Τιμών

Καυσίμων

Objectives Strategies

4

3

2

1

5

Decommission aged and Decommission aged and inefficient power plantsinefficient power plants

Build new plants, Build new plants, embodying state of the art embodying state of the art technologiestechnologies

Accelerate completion of Accelerate completion of hydroelectric projectshydroelectric projects

Decrease CO2Decrease CO2 emissions emissions and pollutantsand pollutants

Accelerated development Accelerated development of generation capacity from of generation capacity from renewable energy sourcesrenewable energy sources

Generation Strategy

A Power Plant Portfolio that:A Power Plant Portfolio that:


PPC Generation Strategy is aligned with Greek and European energy policy

Οι στόχοι Οι στόχοι

της Ενεργειακής της Ενεργειακής

ΠολιτικήςΠολιτικής

Energy Policy Energy Policy ObjectivesObjectives

Supply sufficiency

and security

Environmental protection

Provision of high-quality services to

consumers, at competitive prices


Plants Fuel Installed

Capacity (ΜW)Operation

YearStage

Aliveri V Natural gas 417 2010Under

construction

Megalopolis V Natural gas 750-835 2012Call for Tenders

Florina ΙΙ Lignite 450 2013Preparation of

Call for Tenders

Ptolemais V Lignite 450 2014Preparation of

Call for Tenders

Aliveri VI* Hard coal 700-800 2014 Permit process

Larimna Ι* Hard coal 700-800 2015 Permit process

Note(1):Under negotiation, to be constructed together with two minor partners (up to 200MW each).

Program of Thermal Plants, 3,700MW total capacity, to be commissioned in the Interconnected System


Introduction of hard coal into the energy balance

• Competitiveness: lower current and projected future international prices, compared to oil and natural gas, which ensure a competitive generation cost

• Supply security: availability of hard coal in many different countries, independent of each other, for a time frame many times greater than the natural gas reserves

• Gradual substitution of lignite generation, which is decreasing for PPC, with a solid fuel that is significantly cleaner than lignite

Aims to cover demand for base loads and achieves:


Plants Fuel Installed

capacity (ΜW)Operation

yearStage

Palaioi Galinoi, Crete

Natural gas/ Diesel

250 2014 Permit process

Palaioi Galinoi, Crete

Natural gas/ Diesel

250 2014 Permit process

Atherinolakkos, Crete

Low-sulfur crude oil/Natural gas

(2016)2 Χ 46.6 2008 Construction

Atherinolakkos, Crete

Low-sulfur crude oil/Natural gas

(2016)2 Χ 50 2011 Call for Tenders

RhodesLow-sulfur crude

oil120 2012

Submission of bids

LesvosLow-sulfur crude

oil120 2013 Permit process

Installation Program of Plants on the Islands


Generation Plant Plant Installed

capacity (ΜW)Operation

yearStage

Messochora Ι,ΙΙ 160 2010In completion

(legal settlement of indemnities)

Ilarionas Ι,ΙΙ 157 2011Under

construction

Metsovitiko ΙΙ 29 2011New Call for

Tenders

Sykia Ι,ΙΙ 125 2013Dependant the

diversion of Acheloos river

Pefkofyto Ι,ΙΙ 160 2013Dependant on the diversion of Acheloos river

Installation Program of Hydroelectric Plants in the Interconnected System


Significant reduction of CO2 emissions and pollutants per generated KW from thermal plants

11..22

00..99

11..77

11..11

88..33

00..77

00..77

00..33

Kg COKg CO22 g NOxg NOx

g SOg SO22 g PMg PM

20062006 20152015 20062006 20152015

-91% -56%

-25% -39%


• Completion of upgrade to 400 kV of the interconnection Florina – Vitola (fYROM), 8km long, June 2007

• Completion of construction works of 400 kV interconnection line with Turkey, 208km long, June 2008

• Issuing of environmental permits and preparation of Call for Tenders Notice for the project of the interconnection of the Cyclades Islands

• Completion of second underwater interconnection with Corfu

Interconnections


Improvement of Distribution Network Services

INDEXES

Review 2006

Objective 2007

Review 2007Objective

2008

Objective2nd semester

2008

Improvement of 2nd semester

2008 over 2006, %

(Mean time, in days, for

design and construction

Overhead connection 30 28 27 20 18 40%

Underground connection 63 50 55 45 39 38%

Connection by network

extension90 79 80 65 56 37%

Network variations 89 80 80 69 60 32%


Natural Gas:Natural Gas:

• Commencement of the process of exercising the option to purchase 30% of DEPA (Public Gas Corporation SA) has commenced

SENCAP:SENCAP:

• PPC participates in the competition in Kosovo, in a joint venture with ENEL (50/50)

Expansion into new markets


Renewable Energy Sources

142 180 227 265 265 265

53

70 70 70

69 44 41

25

19

7

13

MW

Total Installed Capacity (year end)Total Installed Capacity (year end)

300

400

500

600

700

800

900

2011

273

81

120

810

2012

343

81

120

880

2013

413

81

120

950

2014

45

86

2006

48

92

2007

61

155

2008

59

71

2009

46

73

96

414

2010

156

293104

619

Non routed

Geothermic

Photovoltaic

Small Hydroelectric

Wind

0

100

1,000

200

79


Main projects under development• 50 MW Photovoltaic Park in Megalopolis

– The second largest in Europe. Construction will begin in 2008.

• Icaria Hybrid 6,5 MW – under construction. Model energy project at the European level, which combines the use of water and wind.

• Wind Farm 38 MW – under construction in Voiotia, in collaboration with EDF Energies Nouvelles

• Development of Geothermic Field of the Milos Island Complex (in collaboration with S&B), of Nisiros and Lesvos

• Applications for important Wind Farms – Andros Island (130 MW) and Rodopi (150 MW)

PPC continues its dynamic activities in the Renewable Energy Sources sector

• PPC Renewables (100% subsidiary of PPC) has installations of PPC Renewables (100% subsidiary of PPC) has installations of 91 MW91 MW total total capacity in operation and 84 MW under construction.capacity in operation and 84 MW under construction.


• Workshops on the definition of the company culture, vision, and values, which support the achievement of PPC strategy

• Training in technical and administrative-financial matters

• Institution of scientific conferences and “Managers Forum” for management-level employees

• Strengthening of the ability of higher-level managers to assess and evaluate a candidate’s suitability for recruitment

Manager and Employee Training


80

100

120

140

160

180

200

2/1/2

007

17/1

/2007

1/2/2

007

16/2

/2007

3/3/2

007

18/3

/2007

2/4/2

007

17/4

/2007

2/5/2

007

17/5

/2007

1/6/2

007

16/6

/2007

1/7/2

007

16/7

/2007

31/7

/2007

15/8

/2007

30/8

/2007

14/9

/2007

29/9

/2007

14/1

0/200

7

29/1

0/200

7

13/1

1/200

7

28/1

1/200

7

13/1

2/200

7

28/1

2/200

7

PPC ASE BBG EUR Utilities Index

Price on 2/1/2007€19.6

Price on 31/12/2007

€36

+84%+84%

Share price development: 2007


4

3

2

1Financial results

2007 Review

1st Quarter 2008

Challenges and Future Steps

General Meeting June ‘08


Development of economic fundamentals(1st quarter ’08 – 1st quarter ’07)

€ million

1.243

1.411

206236

3457

0

500

1.000

1.500

Q 1 2007

% Δ-Revenue

% Δ-EBITDA

Q 1 2008

+13.5%

-12.8%

% Δ-Profits before taxes -39.8%

EBITDA

Revenue

Profits before taxes

*the results of the first quarter 2008 do not include the increased payroll expenses, which will result from the collective labor agreement.

*


HFO €/tn

HFO €/tn

Diese

l €/k

lt

Diese

l €/k

lt

Natura

l Gas

€/1

000Nm

3

Natura

l Gas

€/1

000Nm

3

SMP €

/MW

h

SMP €

/MW

h

Fuel Unit Prices Q1 ‘08 – Q1 ‘07(percentages of increases and quantities)

52,9%

20,4%

14,8%

22,8%

629.655 1000Nm3

120.000 klt

402.000 tn

Q1 2008 Q1 2007

Fuel oil Fuel oil €/tn€/tn Diesel Diesel €/klt€/kltNatural GasNatural Gas

€€/kNm3/kNm3System Marginal System Marginal

Price Price €€//ΜΜWhWh


37%47%

13%

10%

32%28%

18%13%

1st Four Months 2008 1st Four Months 2007

Fuel and Energy Cost CO2 Expenditure PPC Lignite Salaries and Other ΕΒΙΤDA

Participation of fuel and energy cost to revenue1st four-month period ‘08 – 1st four-month period ‘07

49% of revenue is

directly exposed to the fluctuation of international fuel prices

2%


€795

€617

€113

€33(+434 GWh)

€33

400

500

600

700

800

Q1 2007 Impact of Strike Demand Increase Fuel Price Increase Q1 2008

Million €

Evolution of Energy Expenditure Q1 ‘08 and Q1 ‘07


• Following the EC Decision of March 5th 2008, Greece is required to take measures regarding third party access to lignite exploitation for electricity generation, inside and outside PPC.

• On 13.05.08, PPC made an appeal to the Court of First Instance of the European Communities against the Decision of the European Commission.

• The positions of the Greek State coincide with those of PPC.

EC decision concerning the rights for lignite exploitation


Evolution of share price :1.1.08-11.6.08

•Decrease of PPC share price by 32.2% during the period 1/1/2008-11/6/2008 against :

•Decrease by 25.5% of the Athens Stock Exchange Index.

-29%-29%

65

70

75

80

85

90

95

100

105

PPC ASE

-25,5%-25,5%

-32,2%-32,2%


4

3

2

1Financial Results

2007 Overview

Q1 2008


Annual Meeting June 08’


ChallengesChallenges

Slow rate in Slow rate in realizing our realizing our

strategic strategic objectivesobjectives

CO2: the new CO2: the new additional additional

cost of cost of electricity electricity

No correlationNo correlation between between

wholesale and wholesale and retail marketretail market

De facto imposed De facto imposed and “loss and “loss resulting”resulting”

dominant positiondominant position

Electricity Electricity Supply Supply

ShortageShortage

PPC’s Challenges in a “distorted” liberalized electricity market

Rapid Rapid increases in increases in

oil and oil and natural gas natural gas

pricesprices


Wholesale price in Greece vs. European Electricity Exchanges

Electricity PricesElectricity Prices(1)(1) for residential usefor residential use ((JulyJuly 2007) 2007) ((€/Μ€/ΜWh)Wh)

(1) (1) 2,500<Annual Consumption<5,000 kW2,500<Annual Consumption<5,000 kWh excl. tax, sourceh excl. tax, source: : EurostatEurostat Source: Electricity MarketsSource: Electricity Markets

Challenges:No correlation between wholesale and retail market

0

10

20

30

40

50

60

70

80

90

100

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep-0

6

Nov-0

6

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep-0

7

Nov-0

7

Jan-

08

Mar

-08

May

-08

Spain Germany France Italy Greece

• Wholesale price in Greece are amongst the highest in the EU• However, in Greece there is no correlation between price in wholesale electricity prices and end-user tariffs

0

30

60

90

120

150

180

Greece France Spain Germany Italy



End-user Electricity Tariffs in PPS for Households January 2007

0 50 100 150 200 250

Greece

Finland

France

UK

Latvia

Estonia

Spain

Ireland

Norway

Sweden

Croatia

Slovenia

Lithouania

Austria

Belgium

Cyprus

Bulgaria

Portugal

Romania

Czech Rep

Denmark

Germany

Netherlands

Poland

Italy

Slovakia

Source : Eurostat, annual consumption 3.500kWh of which 1.300kWh at night(incl. all taxes)

€/MWh



86,2 86,2

8,1

105,4 105,4

13,3

0

20

40

60

80

100

120

1.1-30.11.07 1.12.07-30.4.08 1.1-30.11.07 1.12.07-30.4.08

€94,3 / MWh

€118,7 / MWh

PPC Average Revenue Market Cost

€/MWh

*

increase

increase

*Including SMP, cost of Transmission and Distribution and other cost elements

• For the period 1.12.07-30.4.08, market cost increased by €13,3/MWh in relation to the previous period 1.1-30.11.2007, i.e. 64% more than the increase in PPC’s average revenue (€8,1/ΜWh)


Challenges: De facto imposed and “loss resulting” dominant position

Non cost-Non cost-reflective tariffsreflective tariffs

De facto imposed De facto imposed & “loss resulting” & “loss resulting” dominant positiondominant position

Additional Loss for PPC

++

• PPC is the sole buyer at high prices in the wholesale market and the sole supplier at low prices in the retail market. •PPC is obliged to supply electricity to anyone that needs it.•These imposed obligations create an additional cost for PPC, for which the company is not compensated

““Last Resort” Last Resort” ObligationObligation


•Low levels of electricity pricesLow levels of electricity prices

•Annual increase in demand Annual increase in demand byby3% 3% and in peak load byand in peak load by 6% 6% (2006-2007)(2006-2007)

•No installation of IPPsNo installation of IPPs

•Limitation on PPC in the Limitation on PPC in the development of additional development of additional capacitycapacity

ELECTRICITY SUPPLY ELECTRICITY SUPPLY SHORTAGESHORTAGE

•The shortage in electricity supply in Greece results in expensive electricity imports from other

countries

Challenges: Electricity Supply Shortage

Increase in cost of Increase in cost of electricity due to electricity due to

expensive importsexpensive imports


€734

€994

€1.257 €1.416

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

2004 2005 2006 2007 2008 Projection

0

10

20

30

40

50

60

70

80

90

Challenges:Large increases in oil and natural gas prices

€1.950

PPC’s expenditure for oil and natural gas purchases in electricity production

2004-2008 € BRENT


80100120140160180200220240260

2004 2005 2006 2007 Jan-08 May-08

Electricity Nat. Gas Heating Oil Gas


+61%

+135%

+17%

Source : National Statistical Service of Greece

+54%

• Between 01/2004 and 05/2008 the price of heating oil and gas oil increased by 135% and 54% respectively•Since 2005, the price of natural gas for household use has risen by 61%•During the same period from 01/2004 to 05/2008, residential electricity tariffs have increased by

a just 17%

Increase in energy prices for the Greek consumer (01/2004-05/2008)



0,3%

2,4%2,1%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

Electricity Gas Heating Oil

Reduction in Purchasing Power

Reduction in Purchasing Power of Income due to increase in energy pricesJanuary 2004 - May 2008

Source : National Statistical Service of Greece


Challenges: The protection of the environment is a co-responsibility of both generators and consumers

• The responsibility for environmental protection for generators arises from their choice of fuel and the technology used. Electricity companies should be judged based on their efforts to continuously decrease CO2 and other emissions per kWh.

• Depending on their consumer behavior, consumers are also responsible for the greenhouse effect, since demand is created by them.


Challenges: CO2, the new additional cost of electricity

20%20% 1,61,6

6,4

100100%% 8 Μ8 Μt COt CO22

PPC Allowance Deficit2008

80%

Emissions Sharing Percentages

Sharing the responsibility of PPC’s CO2 allowance deficit

• The implementation of best available technologies in electricity production by PPC using today’s fuel mix would result in CO2 emissions’ reduction of 25% pre kWh in 2014

• For the period 2008-2012 PPC will face a deficit of CO2 allowances, which will be covered by purchases in the free market

• The cost of allowances for 2008 is estimated at €120-150 mil. (8 mil. Tones of CO2)

To be eliminated by implementing new

technologies by PPC

Minimum possible deficit to cover consumers’ needs

Excess emissions due to old units

Best Available Technologies

*

* Estimated


Causes Consequences

Challenges: Slow rate in realizing our strategic objectives

-Delay in the progress of new Delay in the progress of new projectsprojects

-Loss of opportunity of Loss of opportunity of cooperation with RWEcooperation with RWE for the for the construction of a construction of a 1.6001.600MW MW modern technology coal plant in modern technology coal plant in GreeceGreece, , with commissioning in with commissioning in 20122012

- - Delay in PPC’s adaptation to the Delay in PPC’s adaptation to the modern European business modern European business environmentenvironment

-Difficulty in communicating the Difficulty in communicating the national importance of PPC’s national importance of PPC’s strategic objectivesstrategic objectives

-ObstructionObstruction and interruption of and interruption of BoD meetings BoD meetings

-Difficulties in the smooth Difficulties in the smooth operation of the company due to operation of the company due to strike actions concerning the new strike actions concerning the new insurance legislationinsurance legislation

-Occupation of company’s Occupation of company’s premises by groups of local premises by groups of local associationsassociations

-Time-consuming licensing Time-consuming licensing procedures for new projectsprocedures for new projects


Electricity

Market

EmployeesEmployees

ConsumersConsumersStateState

Challenges: We all need to reexamine our roles within the new energy environment


PPC’s Next Steps in the liberalized market

Next

Steps

The new The new Business Plan Business Plan

2009-20142009-2014

PPC’s PPC’s transformation transformation

within the within the European European

environmentenvironment

Organic Organic Growth and Growth and

PartnershipsPartnerships


GoalGoal

Organizational development and Business Partnerships

PPC aims at both domestic PPC aims at both domestic and regional development and regional development in the energy market of SE in the energy market of SE Europe, where the largest Europe, where the largest

European energy European energy companies are active companies are active

Organic Organic DevelopmentDevelopment

Reinforcement of generation capacity

Improvement of efficiency

Partnerships with Partnerships with third parties in third parties in Greece and SE Greece and SE

EuropeEurope

Creation of new sources of revenues

Boost of PPC Group’s position in the regional market


Organization Development and Business Partnerships: MoU with RWE

• Study for the development of coal-fired power plant of 500-800MW capacity in Albania

–If the investment is deemed viable, a new company will be created in which RWE will participate by 51%, PPC by 39%, and TITAN by 10%

• Natural Gas in Greece

• Renewable Energy Sources

–RWE will hold 51% and PPC Renewables S.A. 49%


Organization Development and Business Partnerships: MoU with Halivourgiki

• Study for the development of two natural gas-fired power units of combined cycle, of 880MW capacity in the facilities of Halivourgiki

–If the investment is deemed viable, a separate company will be created in which Halivourgiki will participate by 51% and control the new company’s management while PPC will participate by 49%

• Conversion use with natural gas and utilization of two existing Units in the premises of Halivourgiki of 80MW total capacity to meet peak load needs


Employees per age group

0

2.000

4.000

6.000

8.000

10.000

12.000

20-30 31-40 41-50 51-60 >60

Employees

The average age of employees is 46 years


PPC’s transformation within the European environment : Benchmarking

Legal Unbundling in line with the

European Directive (Only Transmission

and Distribution)

Legal unbundling in the field of all core

activities (Generation,

Transmission, Distribution, Supply)

Legal unbundling of individual activities (e.g. Generation Units)

In modern business environments, large European energy companies

have proceeded with legal unbundling beyond their core

activities.

Extent

1) ESB is not one of 20 large companies

‘Source: Annual Reports and companies sites

1)


PPC’s transformation within the European environment : (2/3)

• We are examining the appropriate structure for our company by taking into account:

–the new European regulatory and business environment

– the need for PPC’s development

– the particularities of the Greek and regional energy market

• In cooperation with an international consulting company we have looked into the best structures of energy companies in Europe

• In cooperation with a Greek consulting company, we are looking into the adaptation of the suggested structure into the Greek legislative framework

• The outcomes of these studies will be discussed with GENOP/PPC

PPC’s proposal is reinforced by the recent agreement

between the EU Energy Ministers.


PPC’s transformation within the European environment : The Management’s proposal for a dialogue with GENOP (3/3)

Corporate head quarters

Main Proposals:

• Mines & Generation will form one company

• Transmission will operate as a full Transmission System Operator (TSO), while the Market Operator will be independent from PPC

• Distribution will operate as a full Distribution System Operator (DSO) integrated in all geographical areas

Mines &Generation

Supply Transmission DistributionPPC

Renewables S.A.


• Independent Business Plans for each separate Business Unit and integrated Business Plan for PPC S.A.

• Business Plan 2009-2014

–Integrated and harmonized initiatives with respective actions and measures aiming at:

• High quality services and reliability at competitive prices for our consumers and with respect to the environment

• Sufficient returns for the shareholders

• An improved working environment and reinforcement of the human resources’ dynamics

• October 2008

–Presentation of the Business Plan 2009-2014

The new Business Plan of PPC S.A. 2009-2014

takis athanasopoulos chairman & ceo public power corporation sa 6 th regular general meeting of...

Documents

tellas slide

fuel type slide

revenue ebitda profits

review challenges

financial results

ppc generation

renewable sources

low voltage customers