Statement by Chairman of the Board of Directors
 Dear Ladies and Gentlemen, a look in the mirror of the Západoslovenská energetika, a.s. (“ZSE”), annual report for the year 2006 shall bring a happy smile onto face of an economist – the Company reported growing results fourth year in row and better-than-planned figures. A company startegist might be reminded of the end of the first regulatory period and issues related to the adoption of a new Regulatory Act. Engineers and technicians of the Distribution Division will most probably remember steep growth in number of new power connections. On one hand, such development is encouraging, since it lays a solid foundation for further growth of the Company, on the other it puts higher demand on the amount of investments and organization of labor. But work under pressure has a positive side too. It led for instance to the implementation of FSMS system - an innovative approach to management of network maintenance, which in turn has significantly increased labor efficiency of our mobile units. Our sales people in purchase and sales of electricity demonstrated in the passed year that they understand their business – in growing competition of the business segment they managed to retain their customers and increased not only the volume of the sold electricity but also the sales margin. Both key divisions of ZSE were at the same time seriously preparing for organizational changes stemming from the unbundling process. Even though the shareholders were unable to agree on final model of the unbundled Company structure, establishment of new organizational units within the ZSE framework did take place. Distribution System Operator and Customer Services Division are reporting directly to ZSE´s Board of Directors. The new solutions were brought forward also by the Finance and Internal Services Division by implementing the accounting in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, which are part of this report. |
The year 2006 was undoubtedly the most challenging for our colleagues in customer service area. The renewed operation of the automatic reminder system for non-paying customers caused quite naturally an immediate and negative reaction of our clients. In the end, call for a debt payment is often perceived as injustice even among friends. With almost 100,000 clients in this group, the ZSE was exposed to high call volumes and thus lower availability of the customer phone line. However, the new year found us with the reminder system set in real time and the volume of receivables lowered by a third. In the Olympic year of 2006 as General Partner of the Slovak Olympic Committee we were looking forward to success of not only the Slovak athletes but of our own as well. Some of the goals remained too far to reach however. The change of government meant also a different state perception of its role in the energy sector. With its new representatives we were thus looking for a dialogue about solutions, which will retain the economic trend of the Company and, at the same time, fulfill the political expectations of our majority shareholder. I believe that we will manage to conclude the open issues we share on time. ZSE has gone a long way during five years within the E.ON group. Thanks to this partnership the Company might become a corner stone for solutions of the energy security of Slovakia. All great solutions depend on people. And that is why I would like to thank them for yet another successful year, along with thank you to all of our customers, trade and institutional partners. In 2007 we are facing a fundamental organizational change of the Company. Let me therefore wish to us all strength and good luck in retaining the Company unity on behalf of all those mentioned above. Konrad Kreuzer Chairman of the Board of Directors |
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