1Bas Wehman NL Session 5 – Block 2

Barcelona 12-15 May 2003

Asset Management in practice at Essent Netwerk Zuid

Bas WehmanBarcelona14 May 2003

2Bas Wehman NL Session 5 – Block 2

Barcelona 12-15 May 2003

Agenda

•Introduction

•Management summary

•Latest developments

•Answers to questions in special report

3Bas Wehman NL Session 5 – Block 2

Barcelona 12-15 May 2003

Essent Netwerk Zuid

•Part of the Essent holding•Responsible for management of infrastructure•Key figures

– Turnover 2002 € 700 mln– Customers

• Electricity 1.400.000• Gas 900.000• Heat 35.000

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ENZ

ENN

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Barcelona 12-15 May 2003

Management summary : Starting points

•Business sense – Business values– KPI's

•Mastery of skills– Technical knowledge– Project management

•Shared vision within organisation– Clear goals– No sub-optimalisation

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Management summary :Organisation

•2 basic models :– Separation of roles– Process-orientation

•Ideal organisation combines benefits•Rules of reorganisation :

– One job at a time– Focus on processes– Motivate personnel

•Gradual implementation, processes first

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Management summary :Roles and responsibilities

Asset OwnerAsset Owner Asset ManagerAsset Manager Service ProviderService Provider

Ro

leR

esp

on

sib

ilit

iees

• Provides funding for new infrastructure

• Provider of all technical services/support

• Manages all AO’s assets

• Business planning • Project manager• Investment planning & implementation

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Management summary :Processes within ENZ

•Connections

•New infrastructure

•Replacements

•Maintenance

•Interruptions

•Customers

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Management summary : Steering model

•Model differs slightly per process– Decoupling point– Standards, design criteria– Local autonomy

•Added value important criterion•Minimal bureaucracy•Internal benchmarking as steering tool

10Bas Wehman NL Session 5 – Block 2

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Management summary :Results 1996-2001

50%

60%

70%

80%

90%

100%

1996 1997 1998 1999 2000 2001

CostsInvestmentsCML

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Latest developments

•IT implementation complete– Combination ERP - GIS

•Introduction Dynamic Business Modeling– Simulation long term effects of decisions

•Integration Essent Netwerk Zuid and Essent Netwerk Noord

– Economies of scale– Bundling of skills

• ENN : risk management

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Barcelona 12-15 May 2003

Answer to special report

5.11 How to prevent the growth of the organisation,

when separating Asset Owner, Asset Manager and

Service Provider ?

•A little growth is inevitable, but is compensated by greater effectiveness and efficiency (FTe –25%)

•Growth is minimalised by thoroughly implementing processes first (less coordination needed)

•Fighting bureaucracy (see question 5.12)

13Bas Wehman NL Session 5 – Block 2

Barcelona 12-15 May 2003

Answer to special report

5.12 How to deal with the managerial effort of the formalisation of contracts etc.

•Starting point : shared vision (different roles, but same goals)

•Thoroughly implementing processes first reduces need for extensive contracts

•Determine prices in joint effort (commitment)