Ecuador
The struggle to build the Nation



René Morales Cardozo

Interview with:

René Morales Cardozo,
Hidropaute Executive President

HIDROPAUTE

René Morales Cardozo
Executive President
Address: Panamericana Norte Km 7 (Capulispamba)
FOTO GERENTE Cuenca -Ecuador
Telephone: 00593 7875191- 875731
Fax: 00593 787556
E-mail: rmorales@hidropaute.com
PRESENTATION

To preserve the quantity and the quality of the available water in the Paute river, few programs have been developed by hidropaute on the capacity of sustainable conduct of the natural resources, project of reforest, studies and investigations. Moreover, Hidropaute participated in the creation of a basin, in the behalf of the Convention with the " Convenor of Programs of Emergency works" in the River Paute basin and its affluent.

Being the pioneer of the companies operating in the hydroelectric sector in the country, hidropaute since the first year of activity has conducted a policy focused on the improvement of its annual turnover. The results achieved are the synchronized collaboration between the Paute Electric Central and the cut in extra costs and extra employees. In fact hidropaute only employ 28 people the rest is an outsourcing, employees hired by a third part. This system introduced by the company called "Tercerización" started in 1999, and it is nowadays extended to other activities such as a dredge service of the national army. The decision taken by hidropaute to contact outsourcing, to accomplish with the skilled positions in the operation and maintenance of the Hidroelectric Central Paute , has produced more employments for the national workers decreasing the needs to contact foreigners' skilled technicians. This made possible to help in decrease the high unemployment rate of the region.


PRODUCTION


Hidropaute is the generator that more contributed to the Electric Market with more the 40.13%, followed by Electroguayas with 12.94% and Hidroagoyan with 10.50% of the energy at the national level. This shows how hidropaute is today one of the major electricity producer in the country.

The rough production touched the 4,557.7 GWh and the deliver at the Electric Market it was of 4,532.2 GWh, notwithstanding that the hydrology was presented as dry dilemma in the 2002, with total incoming of 3,135.61 Hm3. The deposit en 2003 is 799,000 m3 that makes a cumulative total of 39' 419,000.oo, of which 26'000.000.oo are in the utility volume and the rest stays at the original volume.

In the 2002 the production throughout the year has been of 4.557.7 that correspond to the third most proficient year as shown on the graph above where the best year has been in the 2000.


Here in this graphic is represented the Hidropaute annual production since the 1996. This graph also shows the stability of the production that has been steady in seven years, and goes from a minimum of 4.214 GWh in 2001, to a maximum of 4865 GWh in 2000.

Some interesting figures:

Maximum Power (may) 1087 MW
Max monthly energy (July) 548,50 GWh
Max daily energy (23rd August) 21,94 GWh
Minimum daily energy (November) 2,36 GWh
Number of fails 4

Maximum synchronized cumulated (U2) 124.454,45 hours

Minimum synchronized cumulated (U10) 57.988,53 hours

A valuable indicator to calculate the productivity of Hidropaute is given by the relation between the annual rough productions and the volume of the incoming water, better shown in the graphic here above. In 2002 it is the highest (1,45) of the analysed period that started in 1996

GRAPH PRODUCTIVITY

INFRASTRUCTURES

A lot importance is done to the machinery and the infrastructures, as every year hidropaute continues in investing for the maintenance and improvement of Paute Electric Central, in order to maximise its life cycle.

MARKETS AND CUSTOMERS TRENDS

The hidropaute participation in the Electric Market with its 4,532.2 GWh, continue to be preponderant and conform as the above graphic is showing.


Hidropaute energetic contributions vary roughly around 4,500 GWh, but the percentage participation has the tendency to fall due to the rising of the demand, in the order of 6.52% on the 2002. One of the main Hidropaute customers is PPA´s Complementarios, of which contracts subscribed with some distributing companies, allowed the flow and liquidity. Another important segment of a customer that Hidropaute achieved this year is given by the "Grandes Consumidores" that began in March with a customer and successfully ended in September with four customers. This latter segment is growing and the forecast foresee an even major growing in the future.
The above graphic shows the different hidropaute customers and their participation in term of Energy.

CUSTOMERS STRUCTURE CHART

In the Mercado Ocasional market segment it is not present anymore the company EMELEC. The ponderate prices in the Markets are 3.409 Ë /KWh in the Mercado Ocasional, 1.788Ë/KWh, in the Market a term with a total ponderate of 2.356 Ë/ KWh. The company net income reach almost a total of $138'246,355 of which $ 106'790,113 (77,25%) correspond to the energy value, and the rest goes to the recognize the rewardable power and the charges for the frequency regulator.

HIDROPAUTE WITH THE COMMUNITY

In the vision of the company also corporative values and social responsibilities are included. As far as this initiative are concerned Hidropaute has undertaken many activities, among those the most relevant have been:

· Credit with preferential rate of interest, to companies that participate in the same sector, such as Transelectric, for the project of interconnection with Colombia, and Hidroagoyan to consolidate the concession and the also a financial support for the construction of the Hydroelectric Centre of San Francisco.
· Donation of any movable pieces of furniture , for the total value of 153,600,oo$, in favour of no lucrative entities, that develop the promotion of social activities.
· Economic donation to those entities that develop social promotion, and public interest activities.

Foundation Lluminar (Foundation that has installed, and developed all the lights system that has given to the city of Cuenca , a touch of art and beauty),Minibasket Ecuadorian Association, "San José La Salle" College, and the Patronage of the Provincial Convexo of the Azulay, all those entities have been helped and sustained by Hidropaute to carry on these kind of activities.
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