City Power (Pty) Ltd Final Business Plan 2008-2012 For Submission on: 20 May 2008 Board Approved City Power Business Plan 2008/13 Sign Off: MOE : City Power (Pty) Ltd Business Planning Period : 2008-2013 MD Name : Silas Zimu Signature of MD : ………..……………………… Receipt & Review: Signature of Finance Officer: ………………………………………………… Signature of SHU: ………………………………………………………………. Signature of MMC: ……………………………………………………………… Signature of CSU Representative: …………………………………………… Revision 3.1 2 of 113 City Power Business Plan 2008/13 Executive Summary ..................................................................................................................... 6 Introduction .............................................................................................................................. 6 How has City Power developed its business plan? .................................................................. 6 Challenges and highlights of the business plan ....................................................................... 6 Structure of the document ........................................................................................................ 7 Section1. Who we are? ........................................................................................................... 9 1.1. Vision ........................................................................................................................... 9 1.2. Mission ......................................................................................................................... 9 1.3. Aspired values .............................................................................................................. 9 1.4. Business Operations Principles .................................................................................... 9 1.5. Company Details .......................................................................................................... 9 1.6. Type of Business .......................................................................................................... 9 1.7. Operating History....................................................................................................... 10 1.8. Business Services ....................................................................................................... 10 1.9. Organisational Management and Structure ................................................................ 11 1.9.1. Board of Directors.............................................................................................. 11 1.9.2. Organisational structure ..................................................................................... 14 Section 2: Our Core business .............................................................................................. 16 2.1 Provide Network Infrastructure ................................................................................. 16 2.2 Distribute Electricity .................................................................................................. 17 2.3 Network Restoration .................................................................................................. 18 2.4 Suppliers of Materials ................................................................................................ 19 2.5 Sell Electricity ............................................................................................................ 20 2.5.1 Demand Customers ............................................................................................ 20 2.5.2 Domestic Customers .......................................................................................... 21 2.6 Quality of key customer Relations ............................................................................. 23 2.6.1 Customer Base ....................................................................................................... 23 2.6.2 Call Take ............................................................................................................ 26 2.6.3 Network Related Contacts ................................................................................. 26 2.6.4 Non Network Related Contacts ......................................................................... 27 2.6.5 Quality customer information ............................................................................ 27 2.6.6 Provide Services................................................................................................. 27 2.7. Support Processes ...................................................................................................... 28 Section 3 Our Strategic Agenda ............................................................................................. 29 3.1 Strategic Agenda Priorities ........................................................................................ 29 3.2 Strategy management processes ................................................................................ 29 3.3 Strategic Goals ........................................................................................................... 29 3.4 Mayoral priorities....................................................................................................... 29 3.5 Company Strategic Priorities ..................................................................................... 30 3.6 Five year strategy, IDP and delivery agenda ............................................................. 30 Section 4 Our Operational Agenda ........................................................................................ 37 4.1 Company Projects ...................................................................................................... 37 4.1.1 Company Value Chains ..................................................................................... 37 4.1.2 Implementation of Business Process Automation and Document Management 38 4.1.3 Company Data Quality Improvement ................................................................ 38 Revision 3.1 3 of 113 City Power Business Plan 2008/13 4.1.4 Enterprise Application Integration (EAI) .......................................................... 39 4.1.5 Disaster Management Strategy .......................................................................... 39 4.1.6 SHER management system implementation: Awareness and Training ............ 40 4.1.7 Project Clean Audit ............................................................................................ 41 4.1.8 Human Resource Strategy.................................................................................. 41 4.2 Priority Objectives ..................................................................................................... 42 4.2.1 Electrification ..................................................................................................... 42 4.2.2 Public lighting .................................................................................................... 48 4.2.3 Reduction of losses ............................................................................................ 49 4.2.4 Reduction of outages.......................................................................................... 49 4.2.5 Demand side management programme .............................................................. 51 4.2.6 Inner city rejuvenation ....................................................................................... 56 4.2.7 2010 Projects ...................................................................................................... 56 Section 5 Performance Framework ........................................................................................ 62 5.1 Balanced Scorecard Perspectives ............................................................................... 62 5.2 Key Performance Indicators ...................................................................................... 62 5.2.1 Financial Perspective ......................................................................................... 62 5.2.2 Customer Perspective......................................................................................... 64 5.2.3 Internal Process Perspective .............................................................................. 66 5.2.4 Learning and Growth Perspective ...................................................................... 67 5.2.5 Community Value Perspective .......................................................................... 68 Section 6 Risk Analysis ......................................................................................................... 71 6.1 Background ................................................................................................................ 71 6.2 Broad Definition ........................................................................................................ 71 6.3 Risk Management Process ......................................................................................... 71 6.3.1 Risk Identification .............................................................................................. 71 6.3.2 Risk Assessment and Treatment ........................................................................ 71 6.3.3 Monitoring and Reporting.................................................................................. 74 6.3.4 Auditing ............................................................................................................