CZECH REPUBLIC

In the Heart of Europe


MR. PETR ZEMAN

Interview with

MR. PETR ZEMAN
hairman of the Board of Directors and General Manager of Východoceská Energetika


VÝCHODOcESKÁ ENERGETIKA

Contacts:

Sladkovského 215,
501 03 Hradec Králové
Czech Republic
Tel: +420 495 841 111
Fax: +420 495 842 198

Web Page: http://www.vce.cz
INTRODUCTION

Východoceská energetika, a.s. is a company with activities in the trade with electric power, distribution of power in the East Bohemia region and related services. You can find important information concerning our joint-stock company on our web pages.The company Východoceská energetika was established by the National Property Fund of the Czech Republic as a sole founder as of the date 1.1.1994 and was registered at the Regional Court of Hradec Králové, Czech Republic, in the Section B, Entry No. 1008, as of the same date.
The main business activity of Východoceská Energetika is the purchase, transfer and distribution of power in the East Bohemia region. Other business activities of the company have a complementary character and their purpose is to offer the complete range of services to its clients and to improve the company profile.



COMPANY'S ACTIVITIES


The company business activities include:
· Production, purchase, promotion, transfer, marketing, import and export of power,
· Distribution and sales of power, including services connected with its supply, consumption or utilisation,
· Management of power distribution system within the region of competence,
· Operation, maintenance, repairs, construction, checking and testing activities, reconstruction or modernisation of power equipment, control and telecommunication system facilities and technical means for power consumption control, including project design and engineering activities,
· Installation and repairs of telecommunication system facilities,
· Provision of services connected with supply, consumption or utilisation of power and with utilisation of supplied products and/or equipment.
The company is a predominant owner of power distribution facilities on the whole territory of the East Bohemia region. The company has a natural monopoly in activities connected with purchases, distribution and sales of power to final consumers within the region.



The scope of company competence has been defined by the Decision on Authorisation for Power Distribution No. 12990300028001A, granted in accordance with the Czech Act No. 222/94 Coll. Due to its specific regional character, the company is not active on foreign markets.


SUBSIDIARY COMPANIES

VCE - MERICÍ TECHNIKA, S.R.O

Characteristics of products and services:
· Operation of national metrology centre for verification of
specified measuring instruments.

· Repairs and parameterisation of all sorts of specified
metering instruments.

· Repairs and parameterisation of all sorts of switching
elements.

· Installation of electricity meters and switching elements.
Calibration of electrical metering instruments.

· Manufacturing, repairing, servicing and installation of
electrical machines, instruments and equipment.

· Providing technical expert opinions on metering
instruments.

· Purchase and sales of specified measuring/metering
instruments, switching elements and other materials.

· Providing services connected with distribution, storage,
record-keeping and transporting of metering instruments
and switching elements.

· Providing services connected with supply, consumption and
utilisation of power.

VCE - MONTÁŽE, A.S.

It is an electrical installation company with orientation to the project design, construction, reconstruction, maintenance, repair and inspection of reserved electrical installations in public and industrial distribution systems. The company holds the know-how and technical traditions of the power installation branch of Východoceská Energetika, a.s. and its predecessors since 1926:

Scope of activities:

· Realisation of construction and reconstruction projects for above-ground and under-ground LV, HV and VHV (Low-, High- and Very High Voltage) electrical networks

· Realisation of construction and reconstruction projects for LV, HV and VHV substations
Industrial and house electrical installations

· Project design for LV, HV and VHV electrical networks

· Complete deliveries of project design, electrical installation and civil work according to investors' specification

· Transport and mechanisation services

VCE - ELEKTRÁRNY, S.R.O

Main subjects of activity of this subsidiary company:
· Production and sales of power

· Operation, maintenance and repairs of technological equipment for hydroelectric power stations (HPS)

· Repairs of small HPS owned by other subjects

· Consulting services in the field of HPS

· Production and sales of distilled water
Power installations and power network operation include distribution transformers. Our company, established as early as 1925, offers repairs and inspections of such transformers, as well as sales of new distribution transformers. The company exploits its 75-year long experience in this field of technology. A new transformer assembly line with modern technology facilities was put in operation in co-operation with ELIN Weiz Austria in 1994.

VCE - TRANSFORMÁTORY, S. R. O.

Products and services offered by our company:

· Installation and sales of transformers ELIN in hermetic version or with expansion vessel (according to customer requirements)
· in voltage levels:
5, 6,10,20,35 kV
· and capacities:
50,100,160,250,400,630,1000,1250,1600,2000,2500 kVA.
· Repairs and inspections of transformers of other manufacturers, including hermetic versions with nominal voltage and capacity up to 35 kV and 2500 kVA, respectively.

· Filtration and dehumidification of transformer oils by a mobile filtration station (MICAFIL)

· Transformer oil testing

· Testing of protection systems for LV, HV and VHV (Low-, High- and Very High Voltage) facilities up to 110 kV

· Testing of insulation conditions at transformer stations

· Manufacture of linkage transformers HDO

· Mechanical part production for power network installation division

· Machining-turning, milling, grinding operations

· Shop repairs of turbines and accessories for small hydroelectric power stations

· Joinery work and production of office furniture

· Liquidation of old transformers with secondary raw material sorting.



PROTECTION OF THE ENVIRONMENT

The basic strategy of Východoceská energetika, a.s. Hradec Králové is to transmit power by the way careful to the environment. Our company has concentrated on the following fields:

- reduced production/proper disposal of waste
- treatment of waste water
(including rain water from transformer sites in substations),
- impact of the Act on chemical substances on Company operation,
- implementation of good emergency policy for possible escape of
oil substances
- protection of predatory birds on high voltage lines,
- old pollution loads at sites (ecological audit, risk analysis,
rehabilitation work).

Reduced production/proper disposal of waste

In connection with reorganisation, the Company is preparing an Ecological Code as a summary of basic regulating rules in this field. With regard to required better quality and efficiency, fewer companies providing their services of waste disposal will be engaged in the future and their performance will be regularly evaluated.

Responsible staff members are trained according to a plan.
Treatment of Water Waste (Including Rain Water From Transformer Sites In Substations)
Emergency sumps are systematically checked for their tightness, including oil separators and their cleaning. Such checks are then followed by building adaptations and removal of detected faults.

A system for waste water monitoring, implemented by EMPLA Hradec Králové, has been recently improved. An automatic flow measuring system for waste/rain water will be installed at the site Plotište nad Labem, as a first facility of this type within the Company.
This includes collection and treatment of surface/rain water polluted by oil drips from installed facilities. Concrete collecting reservoirs and sumps with separators are under construction. Roofed transformer stands are constructed in new VHV and HV substations as a standard. Such design minimises risks of oil/water effluents from transformer stations.

Act on chemical substances

With regard to this Act, which requires the appointment of a responsible person, our Company has concluded an agreement with an external specialist. Obligations to report on such responsible person will be fulfilled within the period as specified by law.
Implementation of good emergency policy for possible escape of oil substances

Emergency measures for possible oil escape emergency situations have been prepared with regard to respective building locations. We intend to cooperate with external service companies and the whole area has been divided in two sectors, namely:



1. Districts Trutnov,Jicín, Náchod,Semily,
2. Districts Hradec Králové, Chrudim, Pardubice, Havlíckuv Brod,
Ústí nad Orlicí, Svitavy, Rychnov nad Knežnou.
Protection of predatory birds at high voltage lines

Východoceská Energetika works systematically at the protection of birds (especially predators) against accidents at high voltage lines since 1996. On 5th March of this year, our staff members took part in the first official meeting between the representatives of power companies and environmentalists. The meeting was held at the Czech Ministry of Agriculture based on the initiative of Central commission for protection of animals. When solving this problem, we co-operate with the following organisations:

· Czech Union of Nature Conservationists,
· Czech Ornithological Society (CSO),
· Group for Protection of Predatory Birds and Owls (within CSO),
· Moravian Ornithological Association,
· Agency for Nature and Landscape Conservation,
· Czech Ministry of Environment,
· Czech Ministry of Agriculture.

Measures being implemented can be divided in two groups:

· When constructing new power distribution lines
· When adapting existing power distribution lines
When constructing new power distribution lines, so called comb fences are routinely installed on pylons, as recommended by nature conservationists. These prevent predatory birds from settling down at horizontal brackets of pylons. The same fences are being installed at existing power distribution lines, based on observations of nature conservationists. The Czech Ministry of Environment supports such activity by offering financial grants from the Program of Landscape Conservation. In 1998, we have received a grant amounting to approx. CZK 300,000, in 1999 aprox. CZK 1 million. In the last two years, our company installed such comb fences to protect predatory birds on approx. 1,500 pylons of high voltage lines in our region.
Old pollution loads at company sites, risk analysis, rehabilitation work

As one of the first power distributing companies, Východoceská energetika has concluded an agreement with the Czech Fund of National Property on the removal of environmental damages originating in the period before privatisation. Based on the agreement with Company management, an additional environmental audit has been performed. The next step has been to prepare a risk analysis at the most loaded sites (10 sites); the remaining 18 sites are treated in similar way during the year 2000. The resulting document for risk analysis has been examined by independent experts and after its conclusions are approved by the Fund of National Property, a call for tenders for rehabilitation work will be advertised.
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