Natural monopolist in electrical energy experienced a problem with raising investments for renewal of an enormous amount of the production assets all across the country. According to the plan the reform should be resulted as a free electricity market with floating pricing via separation of the electrical generation, its transportation and distribution, and sales. With due regards to redundance and reliability of the electricity transportation, this function should be kept under goverment control, but the whole energy system should be reformed.
What did the client want:
In the furtherance of the industry reform a new multilevel management structure needed to be designed and implemented in order to manage the electricity transportation all over the country. The demanded solution should be reliable, feasible and comply with all industry players as well.
For the design of the management structure, the basis was the business processes of the existing natural monopoly entities. The processes of the existing AO-Energy in several regions, as well as the central management apparatus, were analysed and modelled. After the drafting and coordination of ideas and principles of distribution of management in the new structure, new processes were designed. On this basis, a management structure and organizational structure of new business units were designed. For the control of the activities of all subjects, a system of scorecards was built, decomposing the main goals and principles and tied the KPIs to business processes. Based on the concept, functional duties and responsibilities of both the subjects of the system and individual organizational units in them were formulated.
As a result, a management concept was developed for the power distribution grid complex with a multi-level structure. In this structure, the functions for each level (National – Inter-regional – Regional – District – Local) and responsibility were determined. Additionally, business processes were designed, mechanisms of interaction between the structural units of the levels were developed, KPIs and scorecards were proposed as well.
The developed concept allowed to continue the reform of the industry, which led to attracting investments for the renewing of the assets while maintaining the reliability of energy supply throughout the country.