City Power Johannesburg (SOC) Ltd Business Plan 2017 – 2018 Final City Power Draft Business Plan 2017-21 Official sign-off It is hereby certified that this Strategic Plan: • Was developed by the management of City Power SOC Ltd under the guidance of the Managing Director. • Takes into account all the relevant policies, legislation and other mandates for which the City Power SOC Ltd is responsible. • Accurately reflects the strategic outcome oriented goals and objectives which City Power SOC Ltd will endeavor to achieve over the period 2017-2018. Sign Off: MD Name: ……………………… Signature: …………………… Date: ……………… Sector ED Name: ………..…………. Signature: …………………… Date: ……….……… Sector MMC Name: ………………… Signature: …………………… Date: ………………. Company Details Company Name: City Power Johannesburg (SOC) Ltd Company Registration Number: Reg 2000/030051/30 Physical Address: 40 Heronmere Road, Reuven Postal Address: PO Box 38766, Booysens, 2016 Phone Number: (+27) 011 490 7000 Fax Number: (+27) 011 490 7590 E-mail: [email protected] Website: www.citypower.co.za Customer Contact Centre: (+27) 011 375 5555 Final 2 City Power Draft Business Plan 2017-21 Contents 1. EXECUTIVE SUMMARY ............................................................................................................................. 6 1.1. CITY POWER STRATEGIC DIRECTION .................................................................................................... 6 1.2. PROBLEM STATEMENT ........................................................................................................................ 6 1.3. CORE MANDATE/PURPOSE/OBJECTIVE ............................................................................................... 7 2. INTRODUCTION ....................................................................................................................................... 8 2.1. BACKGROUND ..................................................................................................................................... 8 2.2. OVERVIEW .......................................................................................................................................... 9 3. STRATEGIC ENVIRONMENTAL ANALYSES ............................................................................................... 11 3.1. BACKGROUND ................................................................................................................................... 11 3.2. HIGH LEVEL SWOT ANALYSIS ............................................................................................................. 11 3.3. HIGH LEVEL PESTLE ANALYSIS ............................................................................................................ 12 3.4. INDUSTRY CHANGE DRIVERS ............................................................................................................. 13 3.5. THE TOP 10 CHANGE OPPORTUNITIES: .............................................................................................. 14 4. SHAREHOLDER ALIGNMENT TO GDS AND IDP ....................................................................................... 15 4.1. BACKGROUND ................................................................................................................................... 15 4.2. THE STRATEGIC THRUST FOR 2017/18 IDP REVIEW OF THE SHAREHOLDER ....................................... 15 4.2.1. COJ VISION .................................................................................................................................... 15 4.2.2. COJ MISSION ................................................................................................................................. 15 4.2.3. COJ OUTCOMES AND PRIORITIES .................................................................................................. 15 4.2.4. CITY POWER ALIGNMENT .............................................................................................................. 16 5. BUSINESS PERFORMANCE OBJECTIVES ................................................................................... 17 5.1. FINANCIAL PERFORMANCE ....................................................................................................... 18 5.2. STAKEHOLDER/CUSTOMER PERFORMANCE ....................................................................... 19 5.3. INTERNAL PROCESSES .............................................................................................................. 20 5.4. HIGH PERFORMANCE TEAMS ............................................................................................................ 22 6. DAY TO DAY OPERATIONS ..................................................................................................................... 24 6.1. COMMUNICATION AND STAKEHOLDER MANAGEMENT .................................................................... 24 6.1.1. INTEGRATED COMMUNICATIONS STRATEGIC APPROACH ............................................................. 24 6.1.2. STAKEHOLDER MANAGEMENT APPROACH ................................................................................... 27 6.2. REVENUE MANAGEMENT .................................................................................................................. 29 6.2.1. TECHNICAL LOSSES ........................................................................................................................ 29 6.2.2. NON-TECHNICAL LOSSES ............................................................................................................... 29 6.2.3. IN LIGHT OF BUDGET LEKGOTLA: IMPLEMENTATION PLAN ........................................................... 31 6.3. SERVICE DELIVERY MAINTENANCE PLAN ........................................................................................... 32 Final 3 City Power Draft Business Plan 2017-21 6.3.1. BACKGROUND ............................................................................................................................... 32 6.3.2. CRITICAL CHALLENGES .................................................................................................................. 32 6.3.3. RESPONSE TO THE SERVICE DELIVERY CRITICAL CHALLENGES ....................................................... 34 6.3.4. FUNDING REQUIREMENTS AND ALLOCATION ............................................................................... 34 6.3.5. SERVICE DELIVERY KEY PERFORMANCE INDICATORS .................................................................... 35 6.4. SECURITY OF SUPPLY ......................................................................................................................... 36 6.4.1. LOAD SHEDDING ........................................................................................................................... 36 6.4.2. ENERGY MANAGEMENT (INCLUDING DSM AND SSM) ................................................................... 36 6.4.3. ASSET MANAGEMENT ................................................................................................................... 37 6.4.4. ELECTRIFICATION OF INFORMAL SETTLEMENTS ............................................................................ 37 6.5. ANTI-FRAUD AND CORRUPTION PLAN – 2017/2018 .......................................................................... 40 6.5.1. OBJECTIVES ................................................................................................................................... 40 6.5.2. APPROACH .................................................................................................................................... 40 6.5.3. TARGET AUDIENCE ........................................................................................................................ 41 6.5.4. DEFINING SUCCESS ........................................................................................................................ 41 6.5.5. POTENTIAL RISKS .......................................................................................................................... 41 6.5.6. ANTI-FRAUD AND CORRUPTION CAMPAIGNS ROLL OUT ............................................................... 41 7. COMMUNITY BASED PROGRAMME ....................................................................................................... 44 7.1. REGION A .......................................................................................................................................... 44 7.2. REGION B .......................................................................................................................................... 45 7.3. REGION C .......................................................................................................................................... 46 7.4. REGION D .......................................................................................................................................... 46 7.5. REGION E ........................................................................................................................................... 47 7.6. REGION F ........................................................................................................................................... 48 7.7. REGION G .......................................................................................................................................... 50 8. FINANCIAL PLAN AND IMPACT .............................................................................................................