Strategy

The overall strategy of the company is a strategy that aims to strengthen its position on power market, in the context that this market denotes a reduced degree of predictability together with a significant decrease of nationwide energy consumption and the emergence of new producers that get a generous help from the state.
The company Strategy was developed after analyzing the external, internal and competitive environment, structured on three strategic levels: corporate strategy, business strategy and operational strategy.

CE Oltenia strategic objectives are focused on:

1. EXCELLENCE
2. DIVERSIFICATION
3. PROFITABILITY
4. PARTNERSHIPS
5. HUMAN RESOURCES
6. SUSTAINABLE DEVELOPMENT AND SOCIAL RESPONSIBILITY

 

Breakdown of CE Oltenia strategic objectives:

1. EXCELLENCE

– Achieving a performant production of lignite and energy (that is efficient, safe and clean), at European standards, that would be competitive at national and international level;
– Maintaining our market share of 25 %, with the possibility to increase this percentage to 30% in 2017;
– The penetration of foreign markets while reducing the national energy consumption, together with the occurrence of new producers.

2. DIVERSIFICATION

– Achieving a mix of power generation sources by the mergeing with electricity producers from hydro and photovoltaic sources or wind ;
– Getting incomes from other opportunities offered by the operating activities within the company .

3. PROFITABILITY

– Performance and competitiveness through a continuous growth of human potential value, of the owned assets and by predictable and profitable business and good risk management;
– Power units operation based on load curve at nominal load to ensure high yields and low costs;
– Covering the peaks of loads with hydropower generated by CE Oltenia;
– Streamlining the production process by decreasing the operating costs, increasing of operating revenues and investment implementation, with immediate positive effect on production cost structure, in order to achieve a competitive sale price.

4. PARTNERSHIPS

– Developing partnerships with investors in order to replace current production capacity with more reliable and higher yielding or for the implementation of new capacities;
– Long-term partnerships with communities in the area in which the company operates, aimed to provide support in solving its social problems;
– Collaboration with universities and research institutions in various fields and geographical areas of central and local government bodies, organizations within the business and with scientific and professional bodies in order to optimize and streamlining the production process;
– Developing partnerships with local authorities in order to access grants for various environmental objectives (reclamation of dumps for agricultural and forestry use).

5. HUMAN RESOURCES

– Ongoing commitment to professional excellence by providing continuous training of staff and implementation of a company-wide performance culture based on discipline, procedures and recognizing individual and team contributions;
– An attractive, stable, motivating, safe and healthy work environment;
– Providing a flexible organizational chart (adapting the organizational chart to current demands by reducing the number of hierarchical levels);
– Correct sizing of personnel number according to the company real needs and elaboration of social development programs for the exceeding personnel.

6. SUSTAINABLE DEVELOPMENT – SOCIAL RESPONSIBILITY

– Sustainable development – Providing a safe power generation on lignite (that is independent from atmospheric factors influence, is clean and efficient, made in sustainable conditions complying the requirements for environmental protection and preservation);
– Social Responsibility – proving the company responsibility regarding environmental protection and involvement in the field of social responsibility towards local communities where it is present.

In order to accomplish the strategic objectives, the global strategic plan is divided into several strategic operational plans attached to each objective and functional field as follows:
– Strategic Plan for Production;
– Strategic Plan for Acquisitions, Sales / Marketing;
– Financial Strategic Plan;
– Strategic Plan for Environmental Protection;
– Strategic Plan for Modernization and Development (investment);
– Strategic Plan in the Field of Human Resources.

The time horizon considered when developing the strategy is 5 years.