Services of Pražská energetika, a. s.

Long-term strategy of Pražská energetika

The entire process of restructuring the company, its transformation into a customer-oriented entity, which will succeed also in the growing competitive environment, began already in 1995. In the first years of transformation (1995–1998) we mapped out the processes inside and outside the company. We thus laid the foundations for the future, significantly higher quality system of managing the company’s individual activities and subsequently formulate the new strategy along the line of envisaged development in the electricity sector. Simultaneously we respected the current legislation. The long-term company strategy has been continuously updated in accordance with changes of the external environment.

Petr Holubec, PRE Press Spokesman

Priorities of the Future Company Development (Key Changes):

Purchase of Electricity

• Maintain the optimum structure of suppliers
• Actively manage the daily load profile
• Effective trading with electricity and its derivatives

Sale of Electricity

• Segmentation of customers in order to ensure higher quality service
• Delineation of new products and services
• Creation of new sale business conditions
• Monitoring of new marketing methods, etc. 

Regulated Trading Services

• Define these services and maintain high quality of such services
• Set up interactions with the distribution part of the company in accordance with the new legislation conditions

Administration, Operation and Maintenance of Networks

• Overall optimisation of the processes
• Maintain the ideal proportion between the quality of electricity supplied and its price  

Non-supply Delivery

• Create a comprehensive, efficient procurement system for all the necessary inputs, except electricity 

Performance Management

• Introduce system of indicators, benchmarks and methodologies for the definition, evaluation and increase of performance in individual units of the company

Human Resources

• Provide for continuous education of employees
• Maintain environment that supports loyalty of employees
• Seek new motivation methods

Organisational Changes

• Adapt and optimise the company organisational structure to the new business conditions
• Build a risk management system in the company   

Trading activities of Pražská energetika, a.s.

Trading activity is one of the key processes that take place in the company. This is an area where the toughest struggle takes place to gain customers and where decisions are made about the future economic success or failure of the company. PRE traditionally co-operates with almost all entities actively operating on the wholesale market in the Czech Republic and at the same time the company attempts to enhance its portfolio to include foreign partners. 

Electricity Suppliers and Purchase

In average, PRE purchases approximately MWh 6.0 million of electricity every year (MWh 6.4 million in 2004). In the long-term perspective there is an increase in the number of concluded business transactions each year. Apart from standard business transactions, PRE also performs business transactions that are “tailored” to meet the requirements of customers.
The major electricity supplier is the power company ČEZ, a. s. from which PRE purchases in average 88 % of all electricity every year. By tradition, PRE uses also independent sources, including small water sources and co-generation units, which represent about 1 % of electricity purchase. A small amount of electricity was supplied as part of overflows of the distribution networks interconnected with Středočeská energetická, a.s.
“To ensure 100% reliability of supplies, we have introduced a system of assessing the risks of trading partners that sell electricity to the company on the open market” stated Mr. Uwe Benkendorff, Director of the Strategy and Sale Division.

Customer Services and Trading Support

Constant improving of quality and enhancing spectrum of services provided to customers is a priority task of PRE. This was proven by extensive telephone survey among twelve hundred customers in Prague, which PRE ordered from a renowned company Incoma Research in 2005. According to the results, more than 70 per cent of respondents perceive the Prague electricity supplier as a customer-oriented and strongly regional company, which is active in the capital city also in the areas of charity, culture and also sport.

New Trading Systems

In 2004 and 2005 Pražská energetika, a.s. replaced its existing trading computer systems used for selling electricity to end customers (the SPP Project) and for supporting processes of electricity trading on the wholesale market (the OSNE Project) with new systems. These systems shall provide for efficient electricity trading on the fully liberalised market. For several months tens of experts among employees were participating in preparation of these system.

“These systems guarantee stability of optimum electricity prices, continuity of supply and quality and reliability of services for the customers. They will help to minimise variances between the electricity purchase and its real consumption and thus the costs of covering such variances. In a word they will ensure efficient planning of trading. New trading systems unified all the partial tools that were used until now,” as explained Petr Karkoška, Head of the PRE Project Sub-department. In his opinion the maximum efficiency of trading with electrical energy is the key factor for PRE with regard to the competitive environment. It influences processes, through which the electricity for end customers is procured on the wholesale market.

Together For Prague

In 2004 Pražská energetika, a.s. (PRE) together with other city companies that carry out their activities on the capital city territory participated in the “Together For Prague” (Spolu pro Prahu) Project, which runs under the auspices of the Prague City Council. The main objective of the project is to save the effort and time of the capital city citizens That is why PRE together with other companies presents itself on Internet pages www.spoluproprahu.cz and together with the joint stock company Pražská plynárenská a shared commercial centre was opened in the Adria Palace in the city centre, where Prague citizens can settle all the matters related to electricity and natural gas.

Customer Centre

In 2005 PRE modified business hours and structure of its commercial centres to suit the customers and market needs. The company concentrated services into three Customer Centre branches:

• Prague 1, Jungmannova 36/31 (Palace Adria) 
• Prague 4, Vladimírova 18 (Vladimírka) 
• Prague 9, Ocelářská 5a (Balabenka) 

At the same time the company cancelled the so-called territorial effectiveness of every branch. That means that now the customers can visit any Customer Centre branch regardless of their permanent residence. PRE Customer Centre branches are open from Monday to Thursday, from 9.00 a.m. to 6.00 p.m. and on Friday to 12.00 a.m.

PRE Consultancy Centre  

The PRE Consultancy Centre (PIS) provides free advice on economic utilisation of electricity in households and for small businesses in the company seat in Prague 10, Na Hroudě 4. Theme exhibitions are regularly prepared for the customers. Every year PIS answers and handles more than twenty thousand queries and requirements. 

Call-Centre, Internet Services, Customer Magazine, Trade Fairs and Exhibitions

Customers can call to the following telephone numbers:

• Spolu pro Prahu (Together For Prague) 840 555 333
• PRE Call-Centre 267 05 5555

Customers can obtain information also

• Via e-mail at pre@pre.cz
• At the company Internet site www.pre.cz
• At the Internet site of the “Together For Prague” Project of the Prague City Council www.spoluproprahu.cz 

During the year PRE publishes customer magazine “PREfórum” and presents itself at some exhibitions and trade fairs - For Arch, Aqua-therm, etc.

Virtual House

Since December 2004 the visitors of PRE Internet site can walk through the “Virtual Advisory House”. This is an application that guides the visitor through an interactive house equipped with electrical heating appliances, white goods and standard household appliances. It acquaints the visitor with their use, optimum operation and provides advice concerning their purchase.

Discount Campaigns, Competitions

Every year Pražská energetika prepares different discount campaigns for its customers. In the past the campaigns involved, for example, discounts for the purchase of storage heaters, equipment for electrical water heating, air-conditioning units that serve as thermal pumps, etc.  Several times a year, customers can also take part in the PRE competitions for white goods and economical fluorescent lamps.

Ecological Electricity

Commencing May 2004 PRE offers – for special PREKO tariff, with the surcharge of 0.10 CZK/kWh to standard electricity prices – electricity supply from renewable sources to the customers who care about protection of surrounding environment. 

Pražská energetika, a.s. utilises the funds acquired from PREKO tariff surcharges for supporting projects of electricity generation from renewable resources in the entire country.

The following chart shows the growing number of PREKO customers, month by month: