PPC told to cut spending by 500 mln euros this year

The McKinsey consulting group has warned the management of Public Power Corporation about the electricity giant's viability, recommending a 500-million-euro cut in expenditure within 2018 that would include expanding its voluntary exit program from 110 million euros today to 250 million euros.

The company hired as a consultant for the utility's new business plan made a provisional presentation to the PPC board on Tuesday regarding the corporation's financial situation, during which it sounded the alarm: The loans to operating profits ratio is not sustainable, McKinsey said, calling for cuts of at least half a billion euros.

The consultancy also underscored the issue of unpaid bills, which remain at the particularly high level of 3 billion euros, including dues that have been entered into a payment scheme. It further warned that for lignite - the main type of fuel PPC...