E-CO Vannkraft Welcome to
www.e-co.no
www.e-co.no Organisation per 01.01.2003 Odd Øygarden Managing Director Egil Skøien Economy/Finance Dag Hollekim Human Resources Tore Kolstad Power wholesaler El-engros Per Are Hellebust Power plant operator Egil Skøien Power plant owner Vidar Hansen Production and power trading Ada Solberg Economy and reporting Øystein Rafoss Special adviser Ola Gunleiksrud VTA Kristian Karlsen Operations manager Helge Russ Maintenance Aurland Gunnar Fredriksen Maintenance Hallingdal Øystein Rafoss Chief Engineer Solbergfoss Kristian Karlsen Operations manager Peder Golberg Technical supervisor
Ownership stakes - E-CO Vannkraft www.e-co.no E-CO Vannkraft as 1890 GWh 2700 GWh 1200 GWh 590 GWh 18 GWh 600 GWh 720 GWh 50 GWh 1000 GWh 800 GWh Hol Hemsil 100% Aurland 93% Statkraft 7 % Usta Nes 57,1 % AK/UNAS 42,9 % Solbergfoss Mørkefoss 64,4 % Statkraft 35,6 % Småkraftverk 100 % Opplandskraft Oslo Lysv. 25 % AK/OEAS/HEAS 75 % Vinstra Kraftselskap 66,7 % HRE/SE 33,3 % Uvdal I og II 10 % SK 90 % Oppland Energi 59,5 % Oppl.eiere 40,5% Buskerud Kraftprod. 30 % EBAS 70 % Leinafoss 100 % Bruksrett i 40 år fra 1992 Eierandelen referer til fallrettigheter forvalter kraften som Oslo Lysverker eier Own Own operation operation Stakes Stakes in in plants plants operated operated by by others others Shares Shares in in powerproduction powerproduction Total Total production production capasity capasity 6,4 6,4 TWh TWh 1,4 1,4 TWh TWh 1,8 1,8 TWh TWh ca. ca. 9,6 9,6 TWh TWh AK = Akershus Kraft HEAS = Hedmark Energi AS AK = Akershus Kraft HEAS = Hedmark Energi A HRE = Hamar-regionen Energiverk SE = Stange Energi AS HRE = Hamar-regionen Energiverk SE = Stange Energi AS UNAS = Uste Nes AS SK = Skagerak Kraft AS UNAS = Uste Nes AS SK = Skagerak Kraft AS OEAS = Oppland Energi Produksjon AS OEAS = Oppland Energi Produksjon AS EBAS = Energiselskapet Buskerud AS EBAS = Energiselskapet Buskerud AS
www.e-co.no E-CO Vannkraft as Founded in 1996 as Oslo Energi Produksjon AS Change of name in June 2001 Owned by E-CO Energi as (80 %) and Statkraft Holding AS (20 %) The second largest power producer in Norway
www.e-co.no Vision To be a leading hydro power producer, acknowledged for expertice and cost efficiency.
Three sectors www.e-co.no POWER PLANT OWNER is responsible for the use of capital and evaluate reinvestments in production plants. Localised in Oslo WHOLESALE are responsible for the use of the production resources and sells the production in the spot market. Localised in Oslo POWER PLANT OPERATOR is responsible for operations management, control and maintenance of the power plants and dams. Localised with departments in Aurland, Hol, Gol and Askim.
Value chain power production www.e-co.no Supervise and regulate Power Plant Operator Maintenance Horisontal integration Reinvestment Vertical focus Wholesale Short-term planning Prod.volume (hours) Long-term planning prod.volume (day/weeks/year) Horisontal integration Market acting Power Plant Owner Consider reinvestment size and timing Horisontal integration Vertical integration
Value chain power production (detailed) www.e-co.no Industrial share-holder Power Plant Owner Wholesale Power Plant Operator Core-activity Finance Governmentcontact Maintenancebudget Reinvestment Analyzing the Power Market Planning Operate, maintenance and reinvestments New investment Taxes Benchmark of Elengros and Power Plant Operator production Securing prices and risk managment Coordinate maintenance Planning maintenance and buy services Technical responsible of the water-system according to the Leading operations market Crisis plan Supervise and control production Corecompetence Finance, taxes and lobbying Collecting data, information, Market, powersystem and risk Administrate and motivate to deliver technical and management quality and commercial productivity. evaluation
www.e-co.no Primary goal 2003-2005 MNOK 2000 in value added over a 30-month period
E-CO Vannkraft will operate: www.e-co.no A lean maintenance organisation, combined with a focused wholesale function featuring core competence in The integration of technical hydropower and wholesale expertise Risk management Quality measurement of power plant operation and the wholesale function
www.e-co.no The integration of technical hydropower and wholesale expertise The utility value adjusted availability is to be better than 96 percent and average annual availability greater than 90 percent The purchase of external services should constitute more than 30 percent, while power plant productivity should outpace the industrial average by 10 percent Regulary talks with co-workers and working for a crative company culture Yearly research of the co-workers cultur Re-evaluate the company organisation and leadership
www.e-co.no The integration of technical hydropower and wholesaling expertise Further professionalisation of the process of reinvestment and large maintenance work to further increase the competence of the company s co-workers in longterm planning and project management. Follow the quality of co-workers management of projects and operative management Quarterly meetings between Wholesale department and Power Plant Operator to evaluate the integration of market acting and maintenance work
www.e-co.no The integration of technical hydropower and wholesale expertise Absence due to illness should be less than 5 percent Reporting on dangerous conditions related to power plant operations should comprise at least three reports per employee per year All project management should be handled by inhouse personnel, while the operative management of assignments should be handled by in-house staff on a minimum of 80 percent of the projects; At least 85 percent of all work is to be planned
Risk management 2003-2005 www.e-co.no Register an average sales price from 2003 through 2005 of more than 110 percent of the average spo price during the period (hourly weighted); Risk management that decreases the potential loss in periods with low prices, but gives and facilitate higher income in periods with high prices (Strategi dynamic price hedging). Exploite competence and production resources to achieve increased income with price fluctuations in the power market
Quality measurment of power plant operation and wholesale function www.e-co.no Comparing the company's gross operating margin with other Norwegian power production companies each year Each year, the company's gross operating margin should place it among the three best Norwegian power production companies Monthly evaluation of the system for balanced achievement of our goals Annual evaluation of the wholesale function where the financial results are compared with other companies. (Qriteria: Average sales price in percentage of the average spot price during the last three years) Annual evaluation of operating and reinvestment costs per weighted maintenance object compared with other power plant operators