CHERNIVTSIVODOKANAL 2018-2022 BUSINESS PLAN and

Transcript:CHERNIVTSIVODOKANAL 2018-2022 BUSINESS PLAN and:
CHERNIVTSIVODOKANAL 2018-2022 BUSINESS PLAN and TARIFF ADJUSTMENT PLAN CONTENT CHERNIVTSIVODOKANAL AT A GLANCE CHALLENGES FOR THE FUTURE RATIONALE FOR ELABORATING A 5-YEAR BUSINESS PLAN KEY ACTIVITIES & OUTCOMES TARIFF PROJECTIONS 1. CHERNIVTSIVODOKANAL AT A GLANCE POLICY STATEMENT MISSION: Providing customers reliable water and sewerage services at high quality and affordable costs. VISION: We are a trusted, reliable, successful and financially sustainable water and sewerage service provider, contributing to environment protection and social wellbeing. FACTS & FIGURES WATER BALANCE DETERIORATING INFRASTRUCTURE 2. CHALLENGES FOR THE FUTURE CHALLENGES WE ARE FACING Past under-investment and resulting deterioration of the infrastructure assets Regulatory uncertainty Affordability of tariffs Recruitment and retention of highly skilled and motivated employees Operational efficiency Meeting European Union (EU) standards of service Financial support from the Chernivtsi City Council cannot be assured indefinitely An uncertain political and economic environment Climate change and environmental expectations 3. RATIONALE FOR ELABORATING A 5-YEAR BUSINESS PLAN WHY WE PREPARED A 5-YEAR BUSINESS PLAN New financial commitments (EUR 17 million ODA loan) require us to be more disciplined in our commercial and financial management. Longer term plans provide greater stability and predictability of tariffs. Inform the Regulator about the impacts of the tariff calculation methods and help guide improvements to them for the future. We recognise the need for our activities to be more transparent. New incentive-based tariff method requires a more long-term planning approach (minimum 3 years). Longer term plans help to provide a stable and predictable environment for our management and staff. Sharing our planning experience with other water utilities in Ukraine. 4. KEY ACTIVITIES & OUTCOMES KEY ACTIVITIES 2018-2022 Investment of EUR 17 million (KfW loan) into rehabilitation of most critical assets, incl. major pump stations, treatment plants, transmission and network (more investments envisaged in future phases). Investment in modern technology for our consumer facing activities. More cost-efficient operations through adjusted pump schedules. Introduction of computerised asset management and investment planning system. Systematic detection and repair of small, invisible leaks and illegal connections. Gradual shift from reactive towards more preventive maintenance and repair. Better metering systems and new billing procedures. More pro-active public relations and communications. Computerisation and modernisation of management procedures. KEY OUTCOMES Reduced water losses from currently 18 million m3/year to 10 million m3/year by 2022. Reduced emergency repair incidents from currently 2600 per year to about 2000 per year by 2021. Annual energy cost savings of UAH 20 million per