"Our primary goals are satisfied customers,
company prosperity and long-term development, and
staff prospects and motivation".
 INTRODUCTION
|
Západoceská energetika, Co. (ZCE)
was founded by the National Property Fund of the
Czech Republic, the sole founder on the basis of
a charter dated December 14th, 1993, detailing the
decision according to the corresponding provisions
of law no. 513/1991 Coll. The founding of the company
was preceded by the privatisation of Zapadoceske
energeticke zavody. In addition to ZEE the following
entrepreneurial entities were created: Plzenska
teplarenska, Co., Karlovarska teplarenska, Co.,
Ostrovska teplarenska, Co., Teplarna Klatovy, Co.,
Vytapeni Marianske Lazne, Ltd.
ZCE was founded for an unlimited period of time.
It was entered into the Commercial Register at the
District Court in Plzen, Section B, Insert 390 on
January 1st, 1994 with Registration Number 49790463.
The company has its Registered Office at the address:
19 Guldnerova, Plzen, postal code 303 28, the Czech
Republic.
| BASIC
INFORMATION |
· ZCE is the most important distributor of
electricity in Western Bohemia, acting over a region
of 10,836 square kilometres, with a population of
858 000.
· ZCE operates on the basis of licences assigned
according to law no. 458/2000 Coll. (permission
for trade with electricity, distribution of electricity
by means of very high-voltage, high-voltage and
low-voltage grid in the territory of Western Bohemia
and the production of electricity). The permission
for trade with gas was not used for business in
the year 2001. Licences provided according to law
no. 458/2000 Coll. substituted the state authorisation
(see law no. 222/1994 Coll.). ZCE operates on the
basis of professional licences in some other 30
fields in addition to the obtained licences.
· Today, ZCE represents a modern regional
distribution company, based on a sophisticated strategy,
effective control system, developed infrastructure,
and estabilished and balanced structure of customers.
At its disposal is a dense transfer network of very
high-voltage, high-voltage and low-voltage lines,
switching stations, control stations, remote control
of appliances, means for maintenance and quick repair
of facilities.
· ZCE belongs to the group of eight power
distribution companies who provide the distribution
of electricity in the Czech Republic, sale of electricity
to customers and appropriate services. It shares
about 8% of the total sale of electricity in the
Czech Republic and that means in technical units
nearly 3,9 TWh in the year 2001.
· During the last couple of years ZCE has
been preparing for the opening of the power market
according to plan. In the year 2001 intensive preparation
for the changes continued, which were launched by
the new power legislation. This preparation also
included radical re-engineering of trade - by January
1st 2001 the Trade with Energy division was established,
which has the task of providing electricity on the
free market. During the year the Sale of Power division
was restructured on the basis of newly specified
market segments.
· ZCE participated in the preparation of
power legislation; its experts helped to create
the market rules, rules for measurement, rules for
regulation and operation of distribution network,
rules for the operator activities on the market.
· ZCE is the only company in the Czech Republic
that performs so-called "live working".
The Live Working system was prepared and introduced
in cooperation with Electricité de France.
With the support of this work offer it is possible
to connect with many distribution companies.
· ZCE has high-quality rating. It reflects
the company position as a dominant supplier of electricity
supplier in Western Bohemia, the balanced structure
of customers, especially lower concentration of
industry and higher share of customers with high
profitability. The agency Standard & Poor's
provided the company a rating of A-/Stable/A-2 in
2002 as well as in 2001.
· ZCE has already issued for four years running
a half-yearly report with audited economic results
as only one of the few domestic companies.
· ZCE takes care of the environment. Former
ecological burdens with local effects can now be
removed successfully. Production of electricity
in four hydroelectric power stations represents
a concrete step towards protection of the environment.
More then 15 km of useless grid lines were removed
from the Sumava National Park, costing over 1 million
Czech Crowns. Starting from April 2002, ZCE offers
electricity produced from ecological sources (so-called
GREEN POWER).
Basic entrepreneurial activities
· Production, purchase, distribution and
sale of electricity
· Management of distribution electricity
network
· Operation, maintenance, repair, building,
reconstruction and update of power facilities, of
equipment for control and telecommunication and
of technical equipment for management of electricity
consumption
· Providing services in connection with delivery,
withdraw and usage of electricity, including IT-services
· Providing services in the telecommunication
field
· Design of electrical devices
· Assembly, repair, maintenance and inspection
of specified electrical equipment.
| THE
MISSION |
The ZCE Company, with a rich tradition and highly
skilled employees and partners, is here to satisfy
as far as possible the needs of customers but not
only in the field of power supply. It uses ecologically
economical ways and supports its activities with
a high living quality in the relevant region.
Vision
Power supplier of Western Bohemia - the most often
wanted supplier in the field of power supplies.
Corporation strategy
Západoceská energetika has entered
the new millennium with a clearly specified strategy
and with a goal to reach full competitiveness in
the free market environment. Providing above-standard
services, a reliable supply of electricity, individual
and friendly attitude towards the customer, and
the development and introduction of new products
are considered the key factors for achieving that
goal. We want to provide excellent customer service.
Therefore in the year 2001 we introduced a Codex
where we specify the standard level of provided
services in the field of distribution and salesof
electricity.
| HISTORY
|
In the second half of the 19th century developing
industry brought increased demands in machines and
lighting. Near industrial factories and in bigger
cities in Western Bohemia power stations were built.
At the beginning the city power stations produced
power mainly for public lighting. To the emerging
electric network residential houses were later connected.
The source of energy was turbines, working with
direct current, driven by steam or diesel engines.
In the countryside water energy drove mills and
cutters, also used for the production of electricity.
The area of Plzeñ
In Plzeñ, the biggest cultural, economic
and social centre of Western Bohemia, the beginning
of electrification was also connected with the creation
of the electric tram.
In the beginning, direct current production did
not allow transmission over longer distances. Its
use was confined to limited distances. Only the
later use of alternating current and its possible
transformation allowed the transmission of power
over bigger distances. That brought wider use of
electricity in industry and in households and created
the conditions for the methodical introduction of
electricity in all parts of the territory over the
next few years.
In the first decade of the 20th century power stations
were built in Western Bohemia, especially in industrial
factories. Many of them have enough performance
and also offered the power supply to other consumers.
In this period the foundation of public associations
that would care for production and distribution
of cheap electricity not only for city inhabitants
and industry, but also for wide application in agriculture,
was also considered. Therefore legal conditions
already at the very beginning of the Czechoslovak
Republic were formed for the fast organisation of
"useful all-purpose associations", ensuring
the introduction of electricity to the whole country.
The beginning of the century
Basic conditions were created in July 1919 by acceptance
of a law concerning state support for methodical
electrification. On this basis "useful all-purpose
associations" were created with strong support
from state and self-governing units.
In Western Bohemia in the same year power companies
in Plzen, Tachov, As and Cheb were founded. In Plzen
Zapadocesky elektrarsky svaz Ltd was founded, and
in the year 1925 the joint-stock company Zapadoceske
elektrarny was created.
Development and distribution of electric energy
in the following years took various paths in particular
parts of the Western Bohemia, depending mainly on
the development of economy in the relevant territory,
on the activities of single power companies, cities
and villages. |
After the Second world war and after the liberation
of Czechoslovakia in 1945 came the nationalisation
of important industrial factories. At the beginning
of 1946 the national company Zapadoceske elektrarny
was established in Plzen, covering Western Bohemia,
which included 284 former entities. Power and electrical
companies were incorporated into the new company,
but also cooperatives from cities and villages,
power plants and smaller factories, dealing with
installation of electric networks.
After the War the conditions of technology and economy
were very poor. The equipment in power plants and
distribution stations was mostly old, worn-out and
uneconomical. The worst situation was near the border,
where grids with high-voltage from 1 kV to 30 kV
operated.
Various technical versions of distribution equipment
mostly did not comply with the standards and regulations
from ESC (Elektrotechnicky Svaz Cesky). The next
decade the company spent striving to develop a technical
and operational basis and create conditions for
the reliable delivery of power.
In the 50's
New territorial organisation of the Republic in
1951 led to a constitution of Plzensky and Karlovarsky
districts, where independent power distribution
companies were established. In 1960 were both districts
unified into Zapadocesky kraj. Connected with this
change of territorial layout were also the unification
of both distribution companies and the establishment
of the common company Zapadoceske energeticke zavody,
national company Plzen (ZCE), with factories in
Domazlice, Klatovy, Plzen, Rokycany, Stribro, Cheb,
Karlovy Vary and in Sokolov.
After constitution of the Federal Republic changes
in the organisation of power suppliers also occurred.
Ceske energeticke zavody (CEZ) was founded and took
control of power producing companies as well as
seven district distribution companies. This arrangement
came into existence on January 1st 1977. By July
1st 1990 ZCE was set aside as independent state
company. The last change occurred during privatisation
on January 1st 1994 when the joint stock company
Zapadoceská energetika was formed.
The development of company from the foundation of
Czechoslovak Republic is best shown by the growth
of power delivery:
IN 1920 0,567 MWh
IN 1930 21,695 MWh
IN 1939 43,680 MWh
IN 1950 403 GWh
IN 1980 3101 GWh
IN 1990 3389 GWh
IN 2000 3641,9 GWh
IN 2001 3887,5 GWh
Today
The joint-stock company Západoceská
energetika is a company with a long tradition, reaching
back more then three-quarters of a century. During
this period it was overseen by generations of power
engineers, whose credo was professional work for
the people in Western Bohemia. This tradition continues
with actual activities and efforts, accompanied
by the formation of a new company and entrepreneurial
culture. The former technocratic company is changing
into a power company with trading features aiming
at the permanent improvement of relations towards
customers and optimisation of provided services.
Západoceská energetika a.s. today
represents a modern industrial company, building
its activities on an effective management system
and striving to provide perfect services for its
customers. At its disposal it has a reputable technical
base - a dense network of very high, high, and low-voltage
lines, switching stations, control stations, remote
control of appliances, means for maintenance and
quick repair of facilities. The company has at its
disposal competent and skilled staff.
| COMPANY
STRATEGY - LOOKING TO THE FUTURE |
ZCE's long-term strategy has been drawn up in line
with the legislation for the liberalized electricity
market and on the basis of expected developments
in the power industry. It is founded on the ambitious
vision of 'Západoceská energetika
- the most sought-after service provider in the
energy sector'. By lending specifications to its
vision in the form of a strategy, ZCE has clearly
identified the goals it must achieve if it wants
to hold its ground in a competitive environment.
2001 was the last year that the distribution companies
on the electricity market enjoyed monopoly status.
On 1 January 2002 end customers consuming more than
40 GWh of power per year and the distribution companies
that supply them found themselves on an open electricity
market. Ultimately, after the next two stages have
been implemented, the market will open up for all
end customers (this will take place by 1 January
2006).
ZCE's core business is licensed operations where
it trades in (i.e. buys and sells) electricity,
distributes electricity (including sales to captive
customers), and, to a lesser extent, generates electricity
at its own plants.
Aware of the potential risks of a liberalized electricity
market, ZCE is also focusing on secondary activities,
including the provision of products and services
connected with its core business, the development
of ancillaries, and diversification into utility
products. These products and services are provided
to customers either by ZCE itself or by its subsidiaries.
Other operations include cooperation on products
with other entities where there are grounds for
suitable mutual accomplishment of goals and skills.
ZCE has already taken some major steps to implement
its vision:
· it has separated its power distribution,
trading, and sales activities
· it has adapted its processes and organizational
structure to the conditions of the liberalized market
· it has introduced financial management
where costs are transparent and savings can be identified
· it has modernized its assets, forming a
quality basis for efficient power supplies
· it has increased customer loyalty by focusing
on customer requirements
· it has developed new products and services
to support its core business.
| STRATEGIC
PRIORITIES |
One of the most important tasks in the near future
is to maintain our market position in the region
and reinforce our status on the domestic market.
In terms of electricity procurement, ZCE intends
to achieve excellent results by:
· optimizing its supplier portfolio while
retaining the obligation to purchase from renewable
energy sources and from CHP facilities
· introducing a new process of energy trading
risk management.
In terms of electricity sales, the aim is to stabilize
the base of reliable, satisfied, long-term customers.
This will entail providing customers with lasting
quality services and products via the company's
sales representatives, customer service, the Internet,
sales offices, and the services of our subsidiaries.
In this respect ZCE has initiated an alliance where
public-service enterprises in the region cooperate
with each other. One of the primary goals of the
Alliance Project is to concentrate network services
into a joint centre for customers, and at some stage
for non-customers, in Western Bohemia. Three major
service providers have been involved in this project
since it was launched at the beginning of 2002:
Západoceská energetika, a.s., Západoceská
plynárenská, a.s., and Vodárna
Plzen a.s.
This project, unique in the Czech Republic, will
result in enhanced service convenience and will
cut the costs connected with handling customer requirements.
Customers will be assured of a guaranteed quality
of service (i.e. the services provided by the Alliance
will always comply with a common Code of Services).
Another advantage will be the opportunity of selecting
optimum energy rates (e.g. the most economical combination
of electricity and gas) and payment transparency.
The first specific step concerns joint readings
of electricity and gas meters.
New distribution system operator activities required
under new legislation, including relations formed
in the scope of electricity sales to captive customers,
are already being incorporated into ZCE's core business
of electricity distribution. The company has a clear
vision of future developments in technology and
in the management of the distribution network, and
in the immediate future will be concentrating on
the following aims:
· appointing and monitoring supply and service
standards
· setting the ideal quality specifications
for supply and supply prices
· applying process management to breakdown
solutions and connection construction
· digitizing network documentation.
| CUSTOMER
RELATIONS MANAGEMENT - AN INTEGRAL PART OF
THE COMPANY STRATEGY |
CRM is a mechanism of processes and systems for
the management of relations with customers. The
idea behind implementing CRM is to gain the support
of information technology in marketing, sales, and
customer care as we approach market liberalization.
This mechanism will make it possible to have comprehensive
access to all customer information and will help
make identifying and meeting their requirements
fast and efficient. CRM implementation will also
cut operating costs, increase the quality of service,
enhance customer loyalty, and increase the company's
market position.
In the long term, the key vision is the application
of CRM in the broader Alliance, based on region
and the results of restructuring (privatization),
and the merger of several distribution and sales
companies. The CRM system should allow the Alliance
to service customers through standard channels and
instruments so that all communications are handled
on a single platform.
The tender for the delivery and implementation of
the CRM system has been completed, and on 7 February
2002 a contract was signed with Soluziona s.r.o. |
