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Main results of a general assembly of ZCE, a. s. company

12. 5. 2003

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Main results of a general assembly of ZCE, a. s. company

Today's extraordinary general assembly of Zapadoceska energetika a.s. (ZCE), a regional power company, appointed new members of company Supervisory Board, who are in favour of the merger between CEZ and regional distributors.

The general assembly also dealt with the subject of the company business plan. The general assembly charged the company Board of Directors with revising the Company business plan, which would reflect the establishment of the new group and make the operation of the larger unit more economical. The general assembly was completely without friction.

The assembly was summoned by the ZCE Board of Directors, after a request from CEZ, its new majority owner. CEZ became the majority owner of ZCE after a governmental resolution, valid as of April 1 this year, when it purchased a 50.26% equity in ZapadoÄŤeska energeticka from the State Property Fund for 4 988.54 mil. CZK.

 

The newly appointed members of the Supervisory Board are:

  • Eng. Jaroslav Mil, M.B.A the Chairman of CEZ Board of Directors and the company CEO
  • Eng. PĹ™emysl SkoÄŤdopol an expert responsible for administering CEZ equity participations
  • Eng. Jaroslav Suk the Director of CEZ Financing Section
  • Eng. Jaroslav Paul the Head of the CEZTrade Commercial and Marketing Department for key customers 
  • Eng. Mgr. Klara MaleÄŤkova 
  • Eng. Miloslav Šimak
  • Eng. Jan Škurek
The following members have been removed from the office:

  • Eng. Pavel KonÄŤel
  • Eng. Jaroslava Zelena
  • JUDr. Lenka Loudova
  • Eng. Vaclav Nechuta
  • Mgr. Jan BroĹľek
  • Dipl.-Kfm. Lorenz Pronnet
The revision of the company business plan is aimed at utilising all benefits resulting from the newly established group. It is generally assumed that the proposed changes will, apart from other things, reflect the financial and legal audits of the company, as was the case with other distribution companies whose majority share CEZ acquired.

CEZ group ranks among the largest power utilities in Europe and is becoming the most significant player in Central European electricity market. The merger will be beneficial both for the entire CEZ group and for its individual members, as it entails:

  • becoming more competitive in the context of the European energy market,
  • improving the position of individual distribution companies on regional markets,
  • better negotiating position for purchasing products and services,
  • easier access to financial resources,
  • better chance of keeping the loyalty of end customers,
  • becoming better protected against the volatility of both the retail and wholesale markets.
CEZ Power Company is fully aware of how important it is to carry out the integration of CEZ Group in a way which would be transparent for the other co-owners of the regional distribution companies.  This is why the company decided to use its own funds in order to prepare and implement so-called REAS Project, which will function as a primary tool for tuning up an optimal business model of the CEZ group.

With regard to the scope and significance of the issue, CEZ decided to entrust the fine-tuning process to a reputable consultant who had had experience with both Czech and global electrical industry. CEZ aims to make the employees of individual regional power companies participate in the project (both its preparation and implementation), thus increasing their productivity. The main function of the selected consulting firm and CEZ employees will be to coordinate these activities.

The implementation of the REAS Project will have some impact on all areas of company management, and is capable of generating considerable benefits for the entire CEZ Group, mainly in the area of marketing, electricity distribution, administration of company assets, purchase of products and services, IT, organisation and personnel-related issues, economic agendas together with planning and controlling, communication, but also company culture and possibly also in other areas identified during the initial stage of the REAS Project.

The overall objective is to make full use of any potential for cost cutting in all the managerial areas of the group, thus ensuring long-term growth of the assets of both the CEZ Group and its individual members.

 

Ladislav Kriz, CEZ Press Officer