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City Power Johannesburg Pty Ltd Draft Business Plan 2009/10

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City Power Johannesburg Pty Ltd Draft Business Plan 2009/10 City Power Johannesburg Pty Ltd Draft Business Plan 2009/10 & 2010/11 PROPRIETARY LIMITED) Registration No: 2000/030051/07 (In terms of Section 121 of the Companies Act 1 Sign Off: CEO/MD Name: …………………………………………………………………… Signature Sector ED: ………..………………..………………………………… Signature of Sector MMC: ……………………..………………………………. Date: ……………………………………………………………………………….. Receipt & Review: Signature of SHU Representative: ……………………………………………. Signature of CSU Representative: …………………………………………… Business Planning & Strategy Page 2 TABLE OF CONTENTS: BUSINESS ACRONYMS .............................................................................................................................................. 4 SECTION 1: EXECUTIVE SUMMARY ................................................................................................................... 5 HIGHLIGHTS AND CHALLENGES OF THE BUSINESS ........................................................................................................... 5 IDP INTERVENTIONS AND PROGRAMME ...................................................................................................................... 6 STRUCTURE OF THE DOCUMENT ................................................................................................................................. 8 SECTION 2: COMPANY OVERVIEW ................................................................................................................... 9 VISION , MISSION AND MANDATE ............................................................................................................................... 9 MANAGEMENT AND ORGANISATIONAL STRUCTURES .................................................................................................... 10 DESCRIPTION OF DAY -TO -DAY OPERATIONS ................................................................................................................ 16 KEY OPERATIONAL OUTPUTS ................................................................................................................................... 22 SECTION 3: STRATEGIC AGENDA .................................................................................................................... 40 STRATEGIC AGENDA PRIORITIES ............................................................................................................................... 40 STRATEGY MANAGEMENT PROCESSES ....................................................................................................................... 40 STRATEGIC GOALS ................................................................................................................................................. 40 MAYORAL PRIORITIES ............................................................................................................................................ 41 COMPANY STRATEGIC PRIORITIES ............................................................................................................................. 41 ENVIRONMENTAL ANALYSIS ..................................................................................................................................... 43 SWOT ANALYSIS .................................................................................................................................................. 44 ANALYSIS OF OUR BUSINESS AGAINST THE GDS PRINCIPLES .......................................................................................... 45 SECTION 4: COMPANY BALANCED SCORECARD PERSPECTIVES ...................................................................... 48 FINANCIAL PERSPECTIVE ......................................................................................................................................... 48 CUSTOMER PERSPECTIVE ........................................................................................................................................ 50 INTERNAL PROCESS PERSPECTIVE ............................................................................................................................. 52 LEARNING AND GROWTH PERSPECTIVE ..................................................................................................................... 53 IDP PERSPECTIVE .................................................................................................................................................. 54 SECTION 5: RISK ASSESSMENT ....................................................................................................................... 57 BACKGROUND ...................................................................................................................................................... 57 RISK MANAGEMENT PROCESS ................................................................................................................................. 57 SECTION 6: FINANCIAL IMPACT ...................................................................................................................... 61 FINANCIAL PLANNING ASSUMPTIONS ........................................................................................................................ 61 INCOME STATEMENT ............................................................................................................................................. 62 CASH FLOW ......................................................................................................................................................... 66 BALANCE SHEET .................................................................................................................................................... 68 CAPITAL EXPENDITURE : INFRASTRUCTURE & SERVICE DELIVERY CAPITAL PLAN ................................................................. 70 REVENUE AND TARIFF ANALYSIS ............................................................................................................................... 89 SECTION 7: HUMAN CAPITAL ......................................................................................................................... 96 STAFF ESTABLISHMENT .......................................................................................................................................... 96 HUMAN CAPITAL EXPENDITURE ............................................................................................................................... 96 EMPLOYMENT EQUITY ........................................................................................................................................... 97 STAFF TURNOVER / MOVEMENT DURING PREVIOUS FINANCIAL YEAR ............................................................................... 97 EMPLOYEE WELLNESS PROGRAMMES ....................................................................................................................... 98 SECTION 8: WARD PROJECTS & DEPENDENCY MATRIX .................................................................................. 99 WARDS ISSUES ..................................................................................................................................................... 99 DEPENDENCY ..................................................................................................................................................... 111 SECTION 9: APPENDICES ............................................................................................................................. 112 Business Planning & Strategy Page 3 Business Acronyms AA – Affirmative Action IDP –Integrated Development Plan AMR – Automated Meter Reader IEP – Integrated Energy Planning AMP -Amperes ISD – Infrastructure and Services Department ASGISA –Accelerated and Shared Growth Initiative LPU – Large Power Users BEE – Black Economic Empowerment LV - Low Voltage BSC – Balanced Score Card MD – Managing Director CAIDI – Customer Average Interruption Duration MFMA - Municipal Finance Manage ment Act Index CAIFI – Customer Average Interruption Frequency MOE – Municipal Owned Entity Index CAPEX – Capital Expenditure MSA – Municipal Systems Act CBD – Central Development District MV - Medium Voltage CFL – Compact Fluorescent Light MVA – Mega Volt A mperes COJ – City of Johannesburg NERSA – National Energy Regulator of South Africa DIFR - Disabling Injury Frequency Ratio NPR – Network Performance Related DOE - Department of Energy OPEX – Operating Expenditure DSM – Demand Side Management RDP – Reco nstruction and Development Programme EDI – Electricity Delivery Industry RED – Restructured Electricity Distributor EE –Energy Efficiency R & D – Research and Development EPWP – Expanded Public Works Programme SAIDI – System Average Interruption Duratio n Index GRAAP – Generally Regulated Accepted SAIFI - System Average Interruption Frequency Accounting Processes Index GDS – Growth Development Strategy SBA -Sale of Business Agreement GE – Gender Equity SCADA – Supervisory Control and Data Acquisition HV - High Voltage SDA - Service Delivery Agreement JDA – Johannesburg Development Agency SHEQ – Safety, Health, Environmental and Quality JMPD – Johannesburg Metro Police Department SHU – Shareholder’s Unit JRA – Johannesburg Road Agency SPU –Small Power Users KPI – Key Performance Indicator STI – Small Ticket Items KVA - Kilo Volt Ampere TBA – To Be Announced KWH - KiloWatt Hour Business Planning & Strategy Page 4 Section 1: Executive Summary This document spells out City Power’s expected course of action for the period 2010/2014. It provides an analysis of the day-to-day operations,
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