Electrica Oltenia reorganisation started from 22 scenarios

Twenty-two possible scenarios, 3,000 people, out of whom only 70 will work in the sales field and breaking up a company in four. This is the reorganisation of Electrica Oltenia, the largest electrical power distribution company on the domestic market, considering the number of consumers it serves.
“In the beginning we had to choose from 22 possible reorganisation scenarios. There were only two left in the end: to form a holding that would operate through a parent company with two subsidiaries: a distribution company and a supply company. The second solution was to partially break up the company. The latter was voted by the shareholders, it is cheaper and it is what the CEZ, as majority shareholder, wanted,” says Adrian Borotea, corporate affairs manager with CEZ Romania.
Borotea, 40, joined the CEZ team last February and is the head of the team that reorganised Electrica Oltenia. The Czechs from CEZ took over Electrica Oltenia two years ago through a transaction worth 151 million euros.
In total, 20 people have redesigned the structure of the old distribution company so as to prepare it for July 2007, the moment when all the companies that operate on this market will have to separate their distribution and supply activities, as well as to prepare it for a completely different competitive environment on a liberalised market. The distribution activity is related to the infrastructure, while the supply activity refers to the trade with electrical power.
Practically, after all the legal, juridical and operational steps are completed, Electrica Oltenia will disappear and it will leave room for four possible new companies, namely CEZ Distributie, CEZ Vanzare, CEZ Servicii and probably CEZ Trade. This could happen by March 15.
The team that will form CEZ Vanzare will number approximately 70 people who will try to create personalised relations with the companyes major customers. Why are there so few people when other companies in this field are training armies of hundreds of “salespeople”? “The lower the internal costs are, the more competitive you become,” says Borotea. The fierce competition in this field halved Electrica Olteniaes client portfolio, but it seems the company managed to get back certain clients.
The services have been outsourced both for the distribution and for the supply companies, therefore another company has been founded, CEZ Servicii, which will employ over 400 people.