CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May Implementation and results from Deregulation 1.Introduction 2.Consequences of the liberalization 3.Illustration : the Electrabel case 4.Example of an important change program 5.Lessons and recommandations 6.Conclusion
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May Introduction schedules and rhythms of liberalization starting situations possibility to compare action plans final business models already liberalized countries return of experience countries still in the starting blocks
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May Consequence of the liberalization losses of synergy breaking up of value chain (high) costs of unbundling to compensate by : –new horizontal synergies –maximising efficiency of asset management and operation new functions –performant IT applications optimizing existing processes
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May Illustration by the Electrabel case complex and interesting case : 4 Regulating Bodies unbundling - generation low cost producer - transmission network : new independent company (Elia) - trading risk management - sales activity new products, services, pricing techniques - distribution networks in association with the municipalities pressures regulators NB : shareholders grid companies - State and/or municipalities (B,NL,F, SP) 2 tendencies - Privatising (UK)
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May Example of an important change program 4.1. regulated network business - independant environment - new contractual rules - connections contracts - supply contracts - access contracts
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May The new situation (contractual) GEN Customer - management of the networks - management of * connection contracts *access contracts - billing to supplyers for *acces to the networks *use of the networks Supplier 1 DGO access contract supply contract connection contract DGO
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May transformation program - supply projects - network projects : access and transit meter reading, treating and forwarding management of customer request data bases 3 major factors : process reengineering IT development "on-site" implementation applications, integration and data
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May NEW Relational Scenarios Access & Transit National Communication Network Acces Register PHYSICALL SCENARIOS As today but modified Treat Complaints – Outages – Technical Problems WORKS OTHER PLAYERS Collect Treat Forward Metered Data INDEXIS Project Smallworks / ISUNET Project Acces & Transit Project China Project MRCO Project TTG/UNINOM Contact Clients Client Supply Call Center Supplier Access Responsible Net Call Center
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May on the field implementation heavy impact on organizations - unbundling call center - works applications - access and transit facility - independant organization Indexis - service level agreements - flexibility
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May some milestones and figures - start : end milestones : full liberalization E and G in Flanders (?) (?) - estimated budget : > 60 M € till ressources : > 200 people
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May major observed risks - instability of regulation - migration of huge quantities of data - interfaces between IT applications - field implementation
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May Lessons and recommandations to anticipate the evolution and cooperate for the establishment of the rules. being a private incumbent and vertically integrated dominant company comfortable ! - constructive dialogue with authorities - efficiency of activities on home market - to expand core activities outside home market experience of deregulation - increase in efficiency (but manpower ) - no increase of revenues on the traditionnal home market - increase of revenues outside the home market only if sound expanding policy.
CONNEROTTE_BE_ALPHA6_BLOCK1.PPT Barcelona May Conclusions Key words of the Electrabel transformation program : - progressiveness, harmonization and synergies / Regions Keep the customer happy !