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Quarterly Report April - June 2016

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QUARTERLY REPORT APRIL - JUNE 2016 PREPARED BY MANAGEMENT CONTRACTOR TABLE OF CONTENT 1. COMMERCIAL DIRECTORATE .................. 4 2. OPERATIONAL DIRECTORATE ................. 8 3. WATER REMOVAL DIRECTORATE ........ 32 4. ADMINISTRATIVE & FINANCIAL DIRECTORATE ................................................ 38 5. INTERNAL CONTROL DIRECTORATE .... 43 6. HUMAN RESEOURCE DIRECTORATE .... 47 7. QUALITY, SAFETY & ENVIRONMENT DEPARTMENT ................................................. 50 8. PUBLIC RELATIONS DEPARTMENT ....... 53 9. INVESTMENT PROGRAMS COORDINATION DIRECTORATE ................ 55 10. INDICATORS ............................................. 72 11. APPENDIX ................................................ 83 COMMERCIAL DIRECTORATE 1.1 Billing and revenue ................................................................................................................................................... 5 1.2 Customers service center .......................................................................................................................................... 6 Installation of new high quality water meters is over. About 40 000 water meters ( about 32 000 resi- dent-customers) were installed. Research proves that the program is justified and old water meters must be replaced with “C” class water meters. Below is the result of installed new water meters in Abovyan, Hrazdan and Ashtarak towns. Table 1 Number of Average consumption Average consumption customers with old water meters with new water meters Hrazdan 2 423 6.6 10.1 Abovyan 3 370 8.2 12.9 Ashtarak 1 994 8.0 16.8 Similar results were registered also in other set- Table 2. Average invoiced consumption per residential tlements. The issue is that the old water meters customer / km/ (especially B class) didn’t register slow flow of 18 16.8 water as well as the customer could stop the wa- 16 ter meter with the help of magnet which disrupt 14 12.9 12 the regular operation of the latter. 10.1 10 It should be mentioned that after installation of 8.2 8.0 8 new water meters the company informed the 6.6 6 customers through different means (TVs, NGOs) 4 to eliminate the leaks. 2 There were drawback in payments. The payment 0 level doesn’t correspond with billing level in Hrazdan Abovyan Ashtarak comparison with 10% billing increase, payments old water meter new water meter increase was just 4%. Table 3 January-June 2015 January-June 2016 Growth % Billing Revenue Billing Revenue Billing Revenue Total 2 415 581 2 157 840 2 590 136 2 237 865 7 4 Customer 1 753 940 1 581 485 1 935 732 1 645 817 10 4 Main budget 248 202 190 324 251 809 207 503 1 9 Econ. entity 413 439 386 032 402 596 384 545 -3 0 1.1 BILLING AND REVENUE Billing The billing level has been increased due to new installed water meters. 2016-II quarterly report - Commercial directorate 5 Table 4 1 400 1 301 1 226 1 200 10 % 1 000 800 7 % 600 6 % mln AMD 428 442 402 431 433 400 391 2015 200 2 % 2016 0 qrowth % April May June Total II quarter Billing level in comparison with the same period of last year has increased by 75 million AMD (or about 6%). The increase for 6 months was about 177 million AMD (or about 7%) Payments The payment level was also improved, but the results are not satisfactory. There was increase compared with the same period of the last year and the increase was 8 million AMD (or about 1%). Table 5. Comparison of payments indicators 3 % 1 187 1 200 1 179 1 000 1 % AMD mln AMD 800 1 % mln 600 402 406 411 2015 400 385 375 389 -3 % 2016 200 0 growth % April May June Total II quarter Taking into consideration the results of II quarter of previous year the increase of 8 million AMD was not enough. Parallel with implemented commercial activities (reminders through SMSs, court cases, water supply inter- ruptions) Customer Service Center regularly implements calls. 1.2 CUSTOMERS’ SERVICE CENTER Table 6. Number of calls according to issue type During the II quarter Customer service center 1 054 registered 4767 calls, as well as about 948 voice 815 mails which were studied and were according- 783 745 ly processed. Customer service center replies to 587 electronically sent inquiries and requests. 389 188 108 98 April May June Commercial Exploitation/Technical Other 6 Commercial directorate - 2016-II quarterly report During the II quarter a large number of customers Table 7. Number of received calls apply to call center in regard to commercial issues. 6 662 The increase of phone calls is mainly due to the fact that the customers are informed about their water meters readings and debts. The increase of 4 767 commercial calls is also due to the fact that compa- ny sent reminder-notifications. 3 149 In comparison with the same period of last year 1 999 a decrease of phone calls was registered by 1895 1 514 1 749 1 658 calls (about 28%). 1 360 The decrease of calls compared with the same pe- riod of last year is connected with the fact that ex- April May June Total II quarter ploitation type calls reduced. 2015 2016 Table 8. Number of calls according to issue type 7 000 6 662 -8 % 6 000 5 000 4 767 4 000 3 042 2 871 3 000 2 652 -28 % calls 2 000 1 721 2015 II quarter 1 000 749 2016 II quarter -43 % 394 0 -47 % growth % Commercial Exploitation/Technical Other Total Sharp increase in consumption wasn’t registered because the water wasn’t consumed for irrigation purposes (especially in Ararat and Armavir regions). It should be mentioned that parallel with the rise of calls the quality is also changed. The company continues to send SMSs to customers informing them about monthly consumption, debts or incomplete payments. As a result large number of calls was registered. In case of inaccuracies appropriate adjustments are made online (address changes, water meter readings, debts etc.) From June 2016 Call center operators carried out telephone monitoring. The employees contacted custom- ers to find out the reasons for non-payment and urged to pay as soon as possible. During June operators contacted with “Abovyan” sector’s customers who haven’t paid from January to May 2016 and have debts. The total number was 300 customer-residents. Called customers June 2016 2016 January-May unpayed billing /1000 Number of paying Amount paid Sector N AMD customers % /1000 AMD % Abovyan 300 3 689 97 32 972 26 It should be noted that ue to these activities customers become regular payers. This activity will continue till the end of the year. 2016-II quarterly report - Commercial directorate 7 OPERATIONAL DIRECTORATE 2.1 Key Performance indicator ......................................................................................................................................... 9 2.1.1 Service duration indicators .................................................................................................................................. 9 2.1.2 Financial performance indicators ................................................................................................................... 10 2.1.3 Water losses indicators ..................................................................................................................................... 11 2.1.4 Water quality indicators ................................................................................................................................... 11 2.2 Exploitation unit .........................................................................................................................................................12 2.2.1 Water production ............................................................................................................................................. 13 2.2.2 Distribution ....................................................................................................................................................... 15 2.2.3 Operation and repair works ............................................................................................................................. 16 2.3 New technologies unit ............................................................................................................................................... 18 2.3.1 Information technologies ................................................................................................................................. 18 2.3.2 Mapping division ............................................................................................................................................... 18 2.4 Water quality ............................................................................................................................................................. 19 2.4.1 Water Quality Control ................................................................................................................................... 19 2.4.2 Natural resources utilization ........................................................................................................................... 22 2.5 Technical department ................................................................................................................................................ 23 2.5.1 Technical investigations, design ....................................................................................................................... 23 2.5.2 The control of capital expenses ........................................................................................................................ 25 2.6 Asset management department ................................................................................................................................
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