Our fundamental goal is to be one of the leading distribution companies in the Czech Republic.Faced with the current environment of regulation,where only the relevant division of revenues from electricity sales is made among production, transmission,and distribution,we want to occupy the top position in the quality of services we provide and the reliability of our electricity supplies.
 CUSTOMER SERVICES |
An improvement was made in customer services in 1998.A new Marketing Department was formed, with the task of analyzing customer requirements and arranging for the promotion of new products and services. Sales Representatives are gradually being appointed to improve services for ¨"large" customers.ZCE supports local electricity installation companies, and develops social programmes for physically handicapped citizens. A lot of work has been done in organizing collection payments, which means we can save the customer time and keep watch over when payments are due. ZCE constantly tries to improve its information system so that it minimize the number of complaints.
The company wants to provide the best possible services, and not just in supply of electricity.Accordingly,in 1999 it worked in collaboration with Patria Finance a.s. to establish a subsidiary EnerFin a.s. to deal with development and supply of financial and other supplementary services for ZCE customers.
| OPTIMIZING INVESTMENTS |
Specific procedure has been drawn up for optimization of our investments in the network, while observing all the duties placed on the distributor by law. Advanced software is used to support economic calculations, so we are now able to evaluate projects with the methods that have been proposed. Procedure on how to evaluate "non-network" investments has also been prepared. The investment applicant is obliged to defend the investments under proposal on the principle of net discount cash flow from investments. ZCE's goal is to make investments only in those cases where it can expect sufficient returns on the funds it expends.
During 1998 financial investments also increased. ZCE and its associates established a subsidiary called Energoreal, s.r.o., which deals in acquisition in the power industry. It also increased its stake in Aliatel a.s., which provides data services.
ZCE has been a reliable supplier of electricity to the West-Bohemian region for eighty years.For many years it was presented as a strong company focusing most of its attention on reinforcing the technical standard of its power facilities.In the past few years there has been a dramatic shift in company orientation - customers now find themselves the centre of attention.
| MARKET POSITION |
ZCE has a 6,5% share of the electricity market in the Czech Republic. It currently enjoys monopoly status in the region of West Bohemia. However,it is now preparing itself for the time the market opens up. Its main priority is to acquire creditworthiness as a company that is able to react flexibly to the demands of its current and potential customers. It is paying special attention, with respect for the approaching liberalization of the power market, to the largest customers, who will be the first to become customers by choice and not by force.
In electricity purchases, a range of activities is being directed towards regional producers, with the objective of increasing the share of electricity procured from these sources based on long-term, mutually beneficial business relations, and thus reducing our dependence on our largest supplier CEZ,a.s.
| NEW SERVICES , IMPROVEMENT IN CURRENT SERVICES |
 For large customers |
The preparation of new positions for sales representatives, who will treat the most important customers; their primary task will be to provide services at the customer's direct, to assume most of the duties issuing from business relations, and, just as importantly, to give information and advice on how to rationalize consumption and optimize price parity;
Superior services for a group of selected customers, with the aim of increasing supplies and reducing the impact of undelivered electricity.
| For small customers |
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Consulting regarding the efficient use of electricity (insulating buildings, regulating, selecting the right rates and combinations, heat loss calculations);
Calculations for customers using electricity to heat buildings (hybrid and storage heating, heat pumps);
Energy saving programmes;
Simplified, improved system of payments (promoting collection payments);
New supplementary products.
| INNOVATION IN CUSTOMER RELATIONS |
The company declares to a new approach focussing on customers and trying to have a better grasp of what they want and need. The role played by marketing at ZCE is, then, indispensable. Collecting and analyzing data about customers and customer segments is the first step on the way to forming a bridge between the customer's requirements and the company's plans. Most of the information that ZCE gathers about its customers comes from its own databases, market research, statistical sources, customer demands and reactions regarding current services, and other sources.
The choice of the contact point itself is very important for communication with the customer. ZCE customers can visit any of five Business Centres - in Domazlice, Cheb, Karlovy Vary, Klatovy, or Plzen. Selected contractual partners, predominantly electrical companies, act as a new intermediary between the customer and ZCE. The Central Telephone Office has been set up, allowing customers to call in twenty-four hours a day, including weekends, to settle their demands or requests while saving themselves a lot of time and money (most calls are charged at the local rate).
| WORK - FORCE QUALITY |
In our attempts at successfully focussing on customers, an important role is played by the professionalism of our employees, who constitute the company's direct contact with the customer and who,in the customer's eyes, are the face of the company. ZCE is conscious of this when recruiting new employees and when training them. Each new employee goes through a system of psychological examinations and initial efficiency tests. Further training mainly focuses on high communicational skills and personal presentation.
| PROTECTION OF THE ENVIRONMENT |
ZCE as a company with a complex infrastructure and a wide range of activities, understands protection of the environment as an essential part of successful business and further development. In 1998,this issue was dealt with in two different areas:
Research and disposal of environmental burdens arising before privatization;
Prevention of further environmental damage.
Appreciable funds were invested into these areas in 1998.
In accordance with a contract signed with the National Property Fund,research was carried out on soil and groundwater contamination at 25 localities owned by ZCE.In 1999,the results of the survey will be used to process a so-called risk analysis,which will form the basis for further clean up work.
Of the clean up projects launched in previous years,the work in progress at the Prestice transformer station is one of particular significance.
Waste treatment methods were affected by Act No.125/1997 Coll., the Waste Act, which entered into force on 1 January 1998.This law makes waste treatment conditions more stingent, introducing running records of waste, the duty to put forward waste for recycling.
ZCE also bears in mind protection of birds, especially predatory birds. Good construction of high-voltage poles and transformer stations designs, and the use of insulating material, serve to protect their health and lives.
Electricity production at our in-house hydroelectric power plants at Vydra, Cerne jezero, Hracholusky, and Cenkova Pila have a positive effect on the environment.1998 production came to 34,757 MWh, which is 1,5% up on 1997.
| SPONSORSHIP |
ZCE is aware of responsibility of life in the region. It spends a lot of money every year on developing activities in the region. It gave a total of CZK 2,582,000 in sponsorship donations in 1998.
Most financial assistance was given over to health care, social facilities, and charity organizations. A total of CZK 1,365,000 went to support these purposes. Most of this money was given to the Plzen Cardiology Centre Foundation (CZK 600,000) and the Plzen Teaching Hospital (CZK 300,000).Included among the other thirteen recipients of sponsorship gifts in this sector were the Klatovy Hospital and Healthcare Centre (CZK 180,000) and Domazlice Hospital (CZK 130,000).
ZCE donated a total of CZK 887,000 to twenty-one organizations in its programme of support for education, culture, and special-interest activities. These included the Plzen University of West Bohemia (CZK 250,000) and the Plzen Philharmonic Orchestra (CZK 100,000).
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