012 - ČEZ Distribuce

ČEZ Distribuce, a. s.
Introduction by the Chairman of the Board of Directors
Introduction by the
Chairman of the Board of Directors
Ladies and gentlemen,
The company posted a very favorable income result in 2012, despite unfavorable impacts in the area of mandatory purchasing
from renewable energy sources. We achieved 105% of our income target when correction factors are included, and the
company posted net income of CZK 4,306 million. The company also met the prescribed quality parameters for electricity
supply, as well as operational safety and reliability standards. Streamlining of internal processes was another significant
accomplishment.
In early 2012, we took an important step in improving management of distribution assets. The Asset Management project
implemented at ČEZ Distribuce had the objective of managing distribution assets more effectively, in both technical and
economic terms. A revised management model, supported by a reorganization, went into effect on February 1, 2012. The new
model is based on a unified view of capital expenditure and an optimized planning and prioritizing process. At the same time,
we introduced active management of internal and external suppliers, and imposed stricter controls on our dealings with them.
In our standard line management, we implemented the Design-to-Cost method, which is being used more and more at
CEZ Group to optimize the technical aspects of strategic construction projects.
From the moment it became technically possible to connect installations for generation of electricity from renewable sources to
the Czech Republic Power System until the end of 2012, ČEZ Distribuce processed 19,365 new applications and approved
over 8,000 sets of project documentation. As of the last day of 2012, a total of 6,097 new renewable power sources with an
aggregate total of nearly 215 MW of generation capacity had been connected to ČEZ Distribuce’s network. Most applications,
a large number of which were submitted in the last few weeks of the year, related to roof-top photovoltaic power plants. I would
like to take this opportunity to thank all the employees who took on the task of processing the extraordinarily large number of
applications for connection of new generation installations.
In 2012 we successfully defended our prestigious “Safe Enterprise” status. By obtaining this certificate, we reaffirmed that we
are aware of our responsibility towards all who may be impacted by our activities, as well as of our duty to meet high standards
in protecting their health and safety. All companies of CEZ Group have been tasked with finding more room for improvement in
their internal processes and procedures. In our case, we will be doing so primarily through the Provision of Services within
CEZ Group project, which will bring about a substantial reduction in intra-corporate red tape and reduce costs even further.
In years past we demonstrated our ability to deal with complex change. This gives me confidence that our company has
everything it takes to successfully meet demanding goals, ensure high quality of electricity supplies, and maintain grid safety.
007
Dear business partners, dear co-workers,
allow me on behalf of the Board of Directors of ČEZ Distribuce to thank you for your support and cooperation in the past year.
Richard Vidlička
Chairman of the Board of Directors
and General Manager
ČEZ Distribuce, a. s.