1. Mart van der Meijden The Netherlands Session 6 - block 2 – Question 9 Barcelona 12-15 May 2003 1 Question 9: What is the experience so far in altering the organisation of the utility ? Are there any possible pitfalls to keep in mind ? Mart van der Meijden Convenor CIGRE Working Group C1-1: Asset Management of Transmission and Distribution Systems

2. Mart van der Meijden The Netherlands Session 6 - block 2 – Question 9 Barcelona 12-15 May 2003 2 Pitfalls to keep in mind with Asset Management Organisation Increase in bureaucracy Complex 'service level agreements’ Master Slave Relationship ("us and them"). Not working together as business partners, but concentrating on their own work and interests. Both AM and SP develop self supporting infrastructures, ie inefficiencies and duplication in Finance, HR, IT, Legal etc. Fight for scarce resource between AM and SP, eg both feel they must have specialists.

3. Mart van der Meijden The Netherlands Session 6 - block 2 – Question 9 Barcelona 12-15 May 2003 3 Pitfalls to keep in mind with Asset Management Organisation Too much implementation at the same time. Too optimistic time schedule. Poor communication. Can be viewed as "trendy", ie what you must become if you want to be seen as a leading/world class company - without understanding how your company can realise benefits. Can provide a golden opportunity for consultants and lawyers. Requires an increase in trust across the organisation but the reverse can occur.