business plan for 2004 - EDP

2003 - Annual Report - EDP
• Bandeirante
a) Activity: Bandeirante’s sales to direct customers
totalled 9 543 GWh, in respect of 1.3 million customers,
a reduction of 6.1% compared with the previous year
as a result of the departure of a number of free
customers.
For this reason and owing to the downturn of
industrial activity seen during the year, the industrial
segment declined by 12.8%.
The residential segment, affected by lower purchasing
power, increased by 0.8%, while the commercial segment
returned a growth of 4.4% compared with 2002.
Sales
Bandeirante GWh
Other
Commercial
Industrial
Residential
b) Tariffs: in keeping with the concession contract, a new
tariff period started in October 2003. The regulator
granted Bandeirante a tariff increase of 18.08% and a
"Factor X" of 1.83% to re-establish the economic and
financial balance of the contract.
It should be pointed out that by determination of the
regulator, the repositioning will be implemented in
stages, 14.68% in the first stage. The difference of 3.4%
will be divided and added to the next 3 annual tariff
adjustments, generating an increase of revenue of 71
million reals each year, at October 2003 prices.
In an endeavour to dilute the crossed subsidies that
exist in the tariff system, the regulator, at the time of
this repositioning, applied tariff realignment. As a
result of this procedure, the Bandeirante network
access tariff increased by an average 130% for the
various voltage levels.
c) Efficiency and productivity: Bandeirante has sought to
motivate its employees through training courses in
building up a creative, innovative culture directed at
results and oriented towards customers and the
market.
Measures have been developed and implemented to
increase efficiency, such as the reduction of stocks and
of operating costs.
The measures, and the conclusion of the modernisation
projects, have allowed the company’s efficiency to
improve and staff numbers to be lowered to 1 261,
meaning that the index now stands at 1 047 customers
per employee.
• Escelsa
a) Activity: Escelsa, which covers 968,000 customers, sold
5 900 GWh of electricity in 2003, 7.3% less than in 2002.
To meet its own requirements of 7 237 GWh, Escelsa
generated a total of 1 179 GWh, or 16.3% of its
requirements, and bought in 6 057 GWh from other
producers in the interconnected system.
Sales
Escelsa GWh
Other
Commercial
Industrial
Residential
b) Tariffs: as from August 7, 2003, as provided for in the
concession contract, the electricity tariffs for Escelsa’s
customers were adjusted by an average of 17.30%.
The adjustment, provided for in the concession
contract, comprised two parts, designed to
compensate: i) costs not controlled by Escelsa, which
are passed on to the tariffs, such as bought-in energy,
transmission costs and sectorial charges; ii) costs
controlled by Escelsa, which were corrected by the
IGP-M, less the deflator of 0.63% reflecting the passing
on of productivity gains to the customers for this year,
the so-called "Factor X", as determined by ANEEL on
the occasion of the periodic tariff revision in August
2001; and iii) the costs incurred by Escelsa during the
period of rationing.
96/97