CPPE restructuring to minimise its cost base

CPPE (Companhia Portuguesa de Producao de Electricidade) is the EDP Group (Electricidade de Portugal) generation company for the Public Electric System and operates hydroelectric, coal, fuel oil, gas oil and natural gas generating facilities with a total installed capacity of about 7.1 GW, representing 82% of the Public System. Energy supplied by CPPE to the national grid in 2000 represented 62% of the Public System needs. In order to increase competitiveness and improve efficiency, CPPE developed in 1996 a strategic plan, with the help of a consultant company, which was afterwards detailed into operational plans. Actions emerged from these Plans enabling CPPE to be better prepared to face changes in the Portuguese Electric Power Sector in an increasingly liberalised market.