Annual Report 2009 - Isagen

ANNUAL REPORT 2009 / ISAGEN S.A. E.S.P.63These activities, linked to a service promotion strategy, meant total service sales to industrialend-customers of $6,704 million during 2009, an increase of 31% over 2008, as a result ofproductive solutions delivery to almost all of its customers’ industrial facilities.ISAGEN continued developing services that could allow is customers to improve productivityand competitiveness, optimizing its energy and water consumptions as well as reducing pollutingemissions, helping to improve working places and neighboring environment quality,thus contributing to world sustainability.In order to fulfill this objective, during 2008 and 2009, ISAGEN designed a service namedIntegral Energy Management Program (PGEI, for its Spanish initials) and defined to performduring 2009 pilot programs for two industrial customers. These programs ended in a satisfactoryway, identifying improvements in the energy culture, the procedures and the process’stechnology in the companies where PGEI was implemented.TABLE 18.TECHNICAL SERVICES2009 2008 Difference Growth$Million $Million $Million %Services invoicing * 6.704,1 5.083,9 1.620,2 31,9Energy points investment 654,9 430,5 224 52,1Services delivered 7.358,9 5.514,4 2.444,5 33,4* Excludes technical services commissionsRegulatory development of the Energy and Gas IndustryDuring 2009, the Ministry of Mines and Energy and CREG, for its Spanish initials), issued a significantnumber of regulations modifying the operation rules of the Wholesale Energy Market,mainly due to El Niño phenomenon and the natural gas scheduled rationing, something that alteredthe regulatory development of the year.To ISAGEN it is of high importance to consider the impact regulatory issues have on theCompany and on its industrial end-customers. Accordingly, the Company confirmed its roleas the productive partner of its customers, studying each of the regulations issued by theregulator, making comments about all billsthat could affect them and making the appropriaterecommendations by means of formalstatements or even organizing meetingswith the corresponding entities.Finally, ISAGEN informed its industrial endcustomersand technological partnersabout regulatory changes, new rules issuedby the regulator and regulation billsthat could affect them.In aspects related to the electric sector, thefollowing regulations can be highlighted:The operation rules of the WholesaleEnergy Market.Confidentiality of information in orderto promote and preserve free marketcompetitiveness.Start-up costs in order to calculate remunerationof Out-of-merit Security Generation.Adjustments to the Reliability Chargescheme.The security ring of the Reliability Chargealso called Demand Response program.The Regulated Organized Market (MOR,for its Spanish initials) which is the mechanismto trade a large part of the energysold by the Company under contracts,changing the public bidding scheme foran auction scheme.Contents Letter from the CEO Achievements2009Good GovernancePractices EvaluationCorporateManagementFinancial Management