By 2020, PGE Group will further reduce controlled costs by PLN 500 million compared to 2016

Most efficient and flexible energy group in Poland

Cost and operational effectiveness of PGE Group is one of the most important pre-conditions for achieving the rest of our strategic objectives. Flexibility is necessary to be able to quickly respond to challenges arising in PGE Group's environment.

Cost effectiveness

  • By 2020, PGE Group will further reduce controlled costs by PLN 500 million compared to 2016
  • This will allow us to reduce overall costs in 2016-2020 by about PLN 3.5 billion in comparison with current effectiveness levels
  • Cost reduction is intended to enhance PGE Group's competitiveness and potential and to create basis for PGE Group's further development and implementation of an ambitious investment programme
  • Improvement in effectiveness will apply to all of PGE Group's business lines.

Effective asset management

PGE owns a portfolio of assets with various levels of profitability and different functions performed within the power system. A harmonised approach to planning expenditures on generating assets at PGE Group will make it possible to reduce asset maintenance costs and CAPEX, whilst maintaining energy supply security.

From a financial point of view, it is necessary to specify economically justified expenditures on modernisations and replacements by segmenting generating assets - in terms of profitability and importance.

We are expecting to reduce modernisation and repair expenditures in 2016-2020 by approx. PLN 500 million

Effective organisational structure and group management

The aim of changes in the company's organisational structure is to improve operational efficiency and prepare PGE Group for development in the most promising business areas, in changing market conditions.

These changes will be carried out through:

  • Standardisation and optimisation of support functions at Group level
  • Speeding up decision-making, analytical and reporting processes
  • Simplifying PGE Group's organisational structures and increasing decision-making authority at lower management levels
  • Optimising subsidiaries' processes and organisation
  • Carve-out of the cogeneration segment
  • Removal of redundant functions

In the process of managing and developing the organisation, we place great emphasis on developing our employees' competences in industry know-how and the ability to pro-actively build relations with our stakeholders. We are developing and modernising management systems for work results, evaluations and bonuses and we aim to enhance the pro-efficiency culture based on integrated processes and HR tools. 

Flexible organisation

We believe that effective operations are not enough in a changing market environment. The organisation must become flexible in action so as to quickly adapt to changes.

PGE Group will become more flexible mainly through:

  • Mechanisms for monitoring the surroundings and quickly reacting to changes
  • Openness for business cooperation with external partners, also on international markets
  • Cooperation with scientific institutions and universities
  • Speeding up decision-making, analytical and reporting processes
  • Removing systemic barriers for employee mobility