The preparation for CEZ Group´s restructuring in Bulgaria started already during last year by initiating the „Common Vision“ project, which should make the functioning of CEZ Group in Bulgaria more effective, including necessary changes relating to Bulgaria´s entry into the European Union.One of the goals of the project was the implementation of unbundling, that is a separation of electricity sales from its distribution into individual firms, as required by EU legislation. We adopted these measures at the very beginning of the year when the sales activities of all our three distribution companies were consolidated into newly established CEZ Elektro Bulgaria.
„The original distribution companies, which still keep distribution assets after unbundling, have been consolidated now. Already during this year, we have implemented consistent organizational structure and rules of functioning in them to faciliate their consolidation into one company as much as possible, and we have laid foundations for their more effective functioning in the future. We have used our experience gained during the realization of a similar process in the Czech Republic,“ added Lubos Pavlas, regional manager of CEZ Group in Bulgaria.
Overall, the restructuring of CEZ Group in Bulgaria should bring CEZ Group´s customers superior services, enhance the quality of electricity supplies as well as lead to higher effectivity of our operation in Bulgaria. Future economies will amount to several tens of millions of euros.
The first stage of the restructuring alone was initiated on September 1, 2006, when the activities relating to providing human resource, information technology and public relations services were centralized in CEZ Bulgaria EAD and management accounting and relationship management were coordinated.
The second stage of the restructuring was accomplished on January 3, 2007, when all other services – accounts, cash transactions, management accounting, customer services, logistics, asset management and legal services – were centralized as well. At the same time, the company CEZ Elektro Bulgaria, which covers electricity sales to end customers in the Bulgarian market, was established. The consolidation of the distribution companies into one was therefore a natural continuation.
CEZ entered Bulgaria at the very beginning of 2005, when it acquired majority shares in three Bulgarian distribution companies of so called western group, EDC Stolichno AD, EDC Sofia Oblast AD and EDC Pleven AD, in the privatisation process. At the end of 2006 CEZ Group extended its operation in Bulgaria by purchasing 100 % share in the largest Bulgarian coal-fired power plant in Varna.