business plan for 2004 - EDP

THE OUTLOOK FOR 2004
The coming year will be one of great changes for EDP.
Both the surroundings and the internal stance and
organisation will undergo major alteration.
In terms of the outside world, we can look forward to
three major changes that EDP will face with confidence:
the creation of MIBEL, the full liberalisation of the market
and preparation for a new regulatory period.
The long-awaited Iberian integration, which will be
formalised on April 20, 2004, constitutes an enormous
opportunity for EDP. The fact that it is the only Iberian
group operating on both sides of the border will allow
EDP and HidroCantábrico to take advantage of a market
six times the size of the Portuguese one.
Full liberalisation of the electricity market in Portugal,
programmed for June 2004, is also a very important
event. EDP is preparing to be the "customers’ EDP", to be
able to meet this great challenge and to confirm its regard
for the customer in a free and competitive market.
Preparation for the new regulatory period with ERSE is of
the utmost importance. EDP will work in conjunction
with the regulator in a spirit of co-operation and
maximisation of efficiency to ensure that the 2005-07
three-year period is one of success for the company’s
customers, staff and shareholders. EDP will meet its
commitment to these three groups.
At internal level, too, we shall continue to change to
better serve.
The restructuring begun in 2003 will continue to allow
EDP to approach the performance of its European
counterparts. The simplification of the company that
started in 2003 will be concluded during 2004.
By the end of the year EDP will have less companies, but
more efficient ones, with lighter structures and simpler,
more efficient procedures.
It is also with great expectations that we await the
integration of the “Gás de Portugal” gas business in
compliance with Council of Ministers’ Resolution
68/2003 of May 10. This integration will allow EDP to
serve its customers better since, for the first time, it will
be possible to offer integrated, competitive products at
Iberian level, increasing the capacity acquired through the
purchase of NaturCorp by HidroCantábrico.
We can therefore say in all certainty that the coming year
will be a motivating one for all who work for the Group.
Should the assumptions set out in the Strategic Plan for
2004-06 come about, 2004 will allow the consolidation of
the EDP Group as an attractive investment for
shareholders.
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