Greece’s Public Power Corporation (PPC) is not viable and will need to take specific steps to restore its position, the McKinsey consulting group warned in a report to the company detailing the state of the company’s finances.
McKinsey’s five-year plan, revealed by Kathimerini, proposes that PPC improves its operational profits by 500 million euros over the five-year period, for which it will have to adopt a voluntary retirement plan for 2,000 employees and an increase in pricing, starting with the gradual reduction of PPC's current discounts and the imposition of increases on specific customer categories.
The most economically competitive technology in the coming years will be the renewable energy sources (RES), as construction costs for new capacity are being reduced, McKinsey points out, and calls on PPC to increase its RES production capacity by 2.5 GW by 2030.
A key proposal is also to intensify efforts to deal with unpaid bills and noted the company will have to reexamine its exposure to the retail market even after the proposed business plan has been implemented.
McKinsey’s plan also provides directions for safer investments in distribution and in new activities such as liquefied natural gas (LNG) and energy services, noting that PPC should carefully assess many other products and focus on those that can be applied in the Greek market.