CEZ DISTRIBUTION BULGARIA 1 JUNE 2017
CEZ DISTRIBUTION BULGARIA AD
Stakeholder Engagement Plan
2016-2019 Investment Program
Updated January 2018
Prepared for:
European Bank for Reconstruction and Development
One Exchange Square
London
EC2A 2JN
CEZ DISTRIBUTION BULGARIA 2 JUNE 2017
TABLE OF CONTENTS
CEZ DISTRIBUTION BULGARIA AD ................................................................................................ 1
1 INTRODUCTION......................................................................................................................... 3
2 PUBLIC CONSULTATION REQUIREMENTS AND STAKEHOLDER ENGAGEMENT TO
DATE .................................................................................................................................................. 7
3 IDENTIFIED STAKEHOLDERS AND COMMUNICATION RESPONSIBILITIES ..................... 9
4 STAKEHOLDER ENGAGEMENT PROGRAM ........................................................................ 12
5 GRIEVANCE MECHANISM ..................................................................................................... 18
Annex A: List of Stakeholders and Contact Details
Annex B: Public Grievance Form
CEZ DISTRIBUTION BULGARIA 3 JUNE 2017
1 INTRODUCTION
1.1. Overview
This Stakeholder Engagement Plan (SEP) provides the requirements and applied processes for
stakeholder engagement and public consultation, stakeholder identification and grievance
mechanism planned for CEZ Distribution 2016-2019 Investment Program in Western Bulgaria.
This document is intended for public disclosure and will be made available in Bulgarian
language by CEZ Distribution.
Please do not hesitate to contact us in case of any queries, comments or suggestions that you
may have in relation to this SEP or to company’s operation using below contact details. Thank
you.
regular mail or in person: CEZ Distribution, 159, Tsarigradsko shose Blvd., Sofia, 1784,
Bulgaria;
phone number: +359 700 10 010;
e-mail: [email protected];
webportal: www.cez-rp.bg.
In case specific projects included in the 2016 – 2019 Investment Programme are classified by
the environmental authorities as having potential significant impact on the environment, CEZ
Distribution will produce and disclose to the public the project level ESAPs, NTSs and SEPs.
1.2. Objectives of Stakeholder Engagement Plan (SEP)
The primary objective of the SEP is to map out the strategy for engaging the various stakeholder groups and public in CEZ Distribution’s activities related to the projects included in the 2016-2019 Investment Program. The SEP identifies and describes the key CEZ Distribution stakeholders, summarizes the process of how consultation will work, how feedback or comments will be taken into account and how any grievances will be handled.
1.3. Background of CEZ Distribution operations
CEZ Razpredelenie Bulgaria AD (“CEZ Distribution” or “the Company”) is part of CEZ Group in
Bulgaria (“the Group”), operating in the country starting 2005. CEZ Group comprises the
companies CEZ Bulgaria (the company coordinating CEZ Group’s activity in the country), CEZ
Distribution, CEZ Electro (power supply company) and CEZ Trade (energy trading company).
The Company is the successor of Electrorazpredelenie Stolichno AD, Electrorazpredelenie
Pleven AD and Electrorazpredelenie Sofia Oblast AD as result of a privatization process
finalised on 18 January 2008. Starting 29 January 2008 the name of the Company is CEZ
Razpredelenie Bulgaria AD (CEZ Distribution).
While the assignment relates to CEZ Distribution, references to CEZ Bulgaria are also included
in the present report given the relevant role of this company in providing management services
and support to all companies within the group including CEZ Distribution.
CEZ Bulgaria coordinates and provides management support and consultancy to the Group
companies ensuring a uniform approach to policies and strategies across the Group. Services
provided by CEZ Bulgaria to the Group companies include Communication and Public
Relations, Logistics, Procurement, Financial Services, Human Resources, Legal Support,
Information and Communications Technology, etc.
CEZ DISTRIBUTION BULGARIA 4 JUNE 2017
CEZ Distribution is a public company listed on the Sofia Stock Exchange. It is majority owned by
CEZ a.s. 67% while the remaining 33% of its stocks are in the hands of minor shareholders. The
company is the legal successor of Elektrorazpredelenie Stolichno.
CEZ Distribution owns all the power distribution assets of CEZ Group in Bulgaria after the 2007
unbundling of the Group’s electricity production and distribution activities in line with EU
requirements. The Company’s activities include operation, maintenance and development of
equipment for electricity distribution between power producers and consumers.
The Company operates the following main facilities:
29 km overhead High-Voltage (HV) (110 kV) transmission lines;
33 km underground HV (110 kV) transmission lines;
17,068 km overhead Medium Voltage (MV) transmission lines;
7,311 km underground MV transmission lines;
22,898 km overhead Low Voltage ( LV) transmission lines;
9,385 km underground LV transmission lines;
26 HV/MV substations;
15,929 MV/LV distribution stations;
19,200 MV/LV transformers;
2,108,145 installed electric meters.
To address the increased pressure for energy efficiency, the Company initiated a programme of
gradual implementation of new technology on the existing worn grid infrastructure. The 2016-
2019 Investment Programme subject to EBRD financing represents a continuation of this
currently ongoing modernization plan initiated in the previous years.
The 2016 -2019 Investment Programme comprises numerous projects including low and
medium voltage transmission lines (overhead and underground), underground high-voltage
transmission lines, substations upgrades, electrometers and switch changes, electrical
switchboards overhaul, relocation of electrical switchboards, equipment investments, buildings
repairing/ maintenance, implementation of environmental measures, connection of new
consumers to the network. The investment programme does not include any projects related to
above-ground high voltage (110 kV) transmission lines.
CEZ Distribution has the obligation to acquire part of the facilities it operates, in the
frame of a mandatory buyout. This buyout is considered as part of 2016-2019
Investment Programme. While the cost associated with the Investment Programme
(including the mandatory buyouts) was incorporated into the household energy
distribution tariff, this did not result in a significant affordability impact.
1.4. General Social Context
CEZ Distribution is headquartered in Sofia and provides power supply in ten regions in Western
Bulgaria: Sofia City, Sofia District, Pernik, Kyustendil, Blagoevgrad, Pleven, Lovech, Vratsa,
Montana and Vidin regions.
CEZ DISTRIBUTION BULGARIA 5 JUNE 2017
Those ten regions cover an area of about 39,084 km
2 and have an overall population of more
than 2 million inhabitants living in 1,560 villages and towns including the Bulgarian capital Sofia. CEZ Distribution Bulgaria employs 2,611 staff (February 2016 data), of which 21% are women.
2605 persons are full-time employees while 6 are working part time.
Wage levels in the Company are determined by the specific requirements and responsibilities
for the position and are not in correlation with the gender of employee. The average wages
within CEZ Distribution are higher than the medium salary in Bulgaria (of approximately EUR
450 /month) and at the same level with average salaries within the sector.
CEZ is a socially responsible company that works actively and openly with local and central
authorities, experts, consumer organizations, key opinion leaders and is deeply involved in
communities’ social programs within all the ten regions. The company’s CSR activities include
environment protection, rehabilitation of kindergartens, schools, children’s playgrounds and
parks, support for local communities, support for projects for improving of urban environment,
volunteer labour, donations, sponsorship for sport competitions, exhibitions, and other
sponsorship activities.
CEZ Distribution Bulgaria ranks among the 5% of all companies in the World, following the
Investors in People standards for people management. (https://www.investorsinpeople.com/).
Moreover, it is the first company in Bulgaria accredited on June 6, 2014 with Investors in People
Bronze award (bronze medal).
CEZ DISTRIBUTION BULGARIA 6 JUNE 2017
The Company operates under the following principles of external communication:
Strict compliance with legal and regulatory provisions
Transparency
Publicity of the information concerning CEZ activities in Bulgaria
Active dialogue with all stakeholders
Clear, concise and timely communication
The Company operates under the following principles of internal communication:
Every CEZ employee has two roles – a client of internal communication and a source of external communication. Effective internal communication will bring long-term reputation benefits to CEZ group of companies in Bulgaria;
CEZ management should ensure that employees understand and share the company mission, vision and will work for its goals;
At each stage of the communication it should be clear – what is the problem, how it will be resolved and who is responsible;
The responsibilities in the internal communication require different expertise and thus a clear terms should be drawn to allow the PR and HR department to collaborate effectively for the best results;
Effective communication channels and messages are crucial for the staining of trust between CEZ management and employees.
CEZ DISTRIBUTION BULGARIA 7 JUNE 2017
2. PUBLIC CONSULTATION REQUIREMENTS AND STAKEHOLDER ENGAGEMENT TO
DATE
2.1. Bulgarian legal requirements for public consultation
The Bulgarian legislation states that the public should be informed about the projects which
have a potential significant impact on environment, to have the opportunity to comment on the
information provided to it during the development/discussion of the project. Such projects are
subject to the full procedures for Environmental Impact Assessment (EIA) and the related public
consultation procedures.
The EIA process in the Republic of Bulgaria is controlled at the national level by Chapter 6 of
the Environmental Protection Act (EPA) and Ordinance on the conditions and order for carrying
out an EIA. These above legislative documents are transposing the EU EIA Directive
(85/337/EEC, amended and supplemented with Directive 97/11/EC, Directive 2003/35/EC, and
Directive 2009/31/EC - collectively codified by Directive 2011/92/EU and Directive 2014/52/EU).
Projects subject to mandatory EIA procedure are listed in Annex 1 of the EPA, while projects
listed in Annex 2 of the EPA are subject to EIA screening (i.e. authorities judge whether the
specific project has to pass an EIA procedure or not). According Annex 1 of the EPA, only
overhead power lines with voltage equal or exceeding 220 kV and with length equal or
exceeding 15 km are subject to obligatory EIA procedure. The investment programme of CEZ
Distribution does not include such projects and the Company confirmed that they have never
had such projects.
In any case, Bulgarian legislation requires the project developer to officially notify the
municipalities and Regional Environment and Water Inspectorates on the territories of which the
project will be developed.
Generally, the main organisational form of determining the public opinion is public hearings.
Public hearings are organized by the project developer, are announced in newspapers in local
languages with 30 days in advance and announce availability of the EIA Report, the modalities
to review the documents and submit the comments and the details on public hearing (location,
date, hour etc.).
Participants of public hearings include interested public, public and non-governmental
organisations and associations, local executive and representative bodies, governmental bodies
authorised to make relevant decisions, mass media. During the hearings, any participant has
the right to express his or her opinion, address questions related to the project. The results of
public hearings shall be recorded in the Minutes of Public hearing which will be attached to the
permitting documentation and considered by authorities in the process of decision making.
In addition to the public hearings, various public announcements should be posted at
appropriate locations like the company website, on Regional Environment and Water
Inspectorate website, website of the municipality, announcements board at the municipal
building or in newspapers.
2.2. Stakeholder actions undertaken to date by CEZ Distribution
All of the 2016-2019 Investment Programme’s projects developed by CEZ Distribution to date
were considered by the environmental authorities to not pose a potential significant impact on
the environment. Hence, the projects are subject only to short EIA procedures for which public
hearings are not required. The projects were disclosed to the public mainly through public
announcements in media and announcements board at the mayoralty.
CEZ DISTRIBUTION BULGARIA 8 JUNE 2017
To date and in relation to the projects part of the 2016-2019 Investment Program, CEZ did not
receive any officials comments related to environmental or social issues as a result of such
announcements.
Data on scheduled maintenance activities, extension of networks, rehabilitation of facilities etc.
are regularly announced by the company using personal meetings, letters, publications in
printed media, radio, TV or other available channels.
CEZ DISTRIBUTION BULGARIA 9 JUNE 2017
3. IDENTIFIED STAKEHOLDERS AND COMMUNICATION RESPONSIBILITIES
Stakeholder engagement is coordinated at Group level by the Public Relations and Customer
Care Departments of CEZ Bulgaria.
External stakeholders for the 2016-2019 Investment Programme were identified in line with CEZ
Bulgaria Communication Strategy and the communication plans. They were mapped among
groups and individuals that will potentially be impacted by or can have influence on the
investment programme.
Company’s stakeholder groups as identified by CEZ Bulgaria include:
1. State institutions, administrative bodies, Energy regulator, National ombudsman, local
and regional authorities;
2. Land users and local communities
3. General Public / NGOs / independent experts, opinion leaders;
Group of Stakeholders Stakeholders
1. State institutions,
administrative bodies and local
authorities
- National /central authorities (e.g: Government,
Ministry of Energy, Ministry of Economy, Ministry of
Environment and Waters, Ministry of Interior, relevant
Parliamentary committees, state Energy Regulator
(KEVR), National Ombudsman, Commission for
protection of competition, Commission for protection
of consumers, etc)
- Local authorities (e.g: Mayors, Municipal Councils,
District Governors, Regional Environment and Water
Inspectorates etc.)
2. Land users and population of
the villages;
- Villages and localities inhabitants impacted by
implementation of the 2016-2019 Investment Program
3. General Public, independent
experts, opinion leaders;
- Energy and economy experts;
- Local opinion leaders;
- General public;
4. Media - National media – newspapers, TV, radio, websites;
- Local media;
- Social media;
5. Clients, Consumer
Organizations
- Households (including people having issues with
paying the bills);
- business clients;
- Consumer organizations;
- Civic organizations;
6. Business Organizations - Business organizations and associations;
- Branch organizations;
7. Internal Stakeholders
- Company staff ;
- Contractors and contractors’ staff;
CEZ DISTRIBUTION BULGARIA 10 JUNE 2017
4. Media;
5. Clients and Consumer organizations (including people having issues with paying the
bills);
6. Business/ branch organizations;
7. Internal Stakeholders (employees, contractors, major equipment suppliers);
8. Other companies within the CEZ Group;
9. Vulnerable people.
Dear Reader/Stakeholder:
If you are not included on the below stakeholder list and wish to receive information about the
2016-2019 Investment Programme, please contact our company by using the contact details
specified in Section 1 of this SEP.
The main stakeholders identified so far are detailed in Table 3.1. below. The list will be updated
and modified in the course of the 2016 Investment Programme development to reflect any
changes in the investment programme’s stakeholders (e.g. add new stakeholders).
Table 3-1 Identified Groups of stakeholders
Under point 5 above: A particular interest is for the people with issues in paying the electricity
bills, mainly located in Botevgrad, Dupnitsa, Ihtiman and Samakov. In those localities, installing
the electricity meters at up to 7 meters height was considered in the past a standard safety
measure of CEZ Distribution even before the privatization and, in the Company’s view, was
aimed to reducing the thefts of electricity in risky regions thus lowering the losses of the
Company and preventing unfortunate incidents endangering human life and health.
Currently, dealing with this issue is part of the long-term communication policy on the CEZ
Distribution. Recently, a strategic management decision was adopted to find technical solutions
in risky regions in order to reduce theft without the need to install electricity meters at height.
In addition, the Company, with the support of local non-governmental organizations performs
periodic training to the relevant community leaders (including, but not limited to Roma people)
on the best practice to reduce the bills and to save electricity.
Under point 9 above: To date, the Company has not initiated any official identification of the
stakeholders under the “vulnerable people” group.
A recent definition was released by the Ministry of Energy in May 2016. According to this
definition, “Vulnerable customers are households whose members are persons who because of
their age, health or income are at risk of social exclusion in relation to the supply and
consumption of electricity and who are benefiting from measures of social protection to ensure
their necessary electricity supplies”.
- Major equipment suppliers;
8. Other companies within the
CEZ Group
-CEZ Bulgaria;
- CEZ Electro; - CEZ Trade Bulgaria;
9. Vulnerable people - to be determined
CEZ DISTRIBUTION BULGARIA 11 JUNE 2017
CEZ expects also the results of a World Bank Report prepared at the request of the Bulgarian
Government for the Energy sector, aiming to implement a new support mechanism for
vulnerable customers with significantly expanded scope.
These definitions will be further considered by the Company in development and
implementation of the plans and strategies.
In Bulgaria, the last statistics on vulnerable people were produced 2007. In general, under the
vulnerable people group are pensioners, families with many children, low income families,
Roma people, unemployed people, widows, orphans, people with disabilities and chronical
diseases etc.
During the last years, the government analysed various proposals for providing support to
vulnerable people for paying the electricity bills, with allocations varying on consumption and
income. However, to date, none of the proposals was selected and implemented by the state
authorities.
CEZ’s companies in Bulgaria have implemented measures to alleviate all the clients regardless
of their age, income or social group. These measures include various options for rescheduling
of financial obligations towards CEZ. In order to benefit of these measures, the clients have to
contact CEZ’s centers and submit an application form.
Although the current bills for electricity are below the ones in 2013 and salaries increased (e.g.
minimum salary from 158 EUR/month in 2013 to 215 EUR/month in June 2016), the affordability
for the consumers is still an issue to be carefully handled by the Bulgarian state and by all the
distribution companies.
CEZ Distribution does also not expect significant impact of their 2016-2019 Investment Program
on the total price of energy distribution to be applied in the following regulatory period.
Information disclosure
CEZ companies have a long-term communication program about investments in the grid which
include regular press-releases (on monthly basis), publications of price proposals during their
submission to the Energy and Water Regulatory Committee, publication of the new prices when
they are adopted, interviews with CEZ representatives and 3rd
parties.
Main messages:
CEZ is a socially responsible company that has always strictly adhered to the legal and regulatory provisions in execution of its basic commitments to clients and society.
We are always ready to provide journalists and citizens the needed information related to CEZ's activities in Bulgaria.
CEZ is a transparent and open company. The opportunities for contacts with us are publicly available
Keeping open and direct communication helps us to achieve our strategic goal of delivering reliable power and modern home and business services according to the European standards.
Each investment project aims to improve service quality and expand the number of services we offer.
CEZ is investing each lev it receives on the Bulgarian market in the grid.
The client is in the focus of the activities of CEZ in Bulgaria.
CEZ DISTRIBUTION BULGARIA 12 JUNE 2016
4. STAKEHOLDER ENGAGEMENT PROGRAM
The Company has identified specific project information that is to be disclosed to the majority of the
stakeholders groups, as well as the proper means of communication with each of them.
The analysis of these groups has been performed by the Company based on specific criteria and
resulted in defining the engagement actions to be performed through different specific approaches
including newsletters, periodical updates, newspaper articles, announcements on community boards,
brochures, meetings etc.
The Company has developed the following procedures for establishing clear internal and external
communication:
At the beginning of each year regular meetings of top management of CEZ Distribution with local authorities take place. They are organized with the active cooperation of the regional and municipal organizations in the ten regional centers of the area serviced by CEZ. During the meetings, the participant discuss the company's investment plans and other issues of interest for the local population.Usually these meetings are attended by CEZ Distribution CEO, COO, Regional Asset Manager and the Director of Customer Service. Meetings with local authotities are an important communication channel for CEZ
In addition, regular meetings and consultations are held between the representatives of municipalities and CEZ Distribution’s Regional asset managers.
Several mobile offices are organized in different villages in Western Bulgaria every year – tipically where there is no customer service center of CEZ or in a case of emergency. The goal is faster and more effective communication and better customer service.
In order to improve customer services CEZ has created two unique for Bulgaria bodies: Consumer Council and Energy Ombudsman. The Consumer Council is an advisory body with the participation of CEZ experts as well as external experts and consumer organizations. It has 12 members.The Council holds several meetings yearly in order to analyze existing business practices of CEZ in Bulgaria and recommend their improvement. The Energy Ombudsman has a team of two people. It examines hundreds of alerts every year and makes suggestions for changes in order to optimize business practices and achieve greater customer satisfaction. In addition, the Energy Ombudsman regularly organizes mobile offices during which he meets clients who are unable to arrive to visit him in the head-quarter. The two organizations have their own channels for communication with clients and stakeholders, which are available on the CEZ Distribution website (www.chez-rp.bg).
For each stakeholder group the anticipated information disclosure needs and means of communication
are summarised in the table 4-1 below.
CEZ DISTRIBUTION BULGARIA 13 JUNE 2017
Information Disclosed or
Engagement Actions
Form(s) of communication Location and
Dates
Target Stakeholders Responsibilities
EIAs outcomes and mitigation
measures considered, in line with
national regulations, only in case
projects within the 2016-2019
Investment Program require EIAs
or AAs (Appropriate Assessments)
Public hearings
Posters, public announcements at local offices of CEZ Distribution and on CEZ Distribution website, according with the requirements of the national regulations.
Community
center the
relevant villages
Local population;
Administrative Bodies
and Authorities
Landowners/farmers in
the project area that may
be directly impacted;
General Public / NGOs /
Independent experts
Mass media
CEZ Distribution in
collaboration with
Environmental
regulatory authority
and EIA/AA
producer
Non-technical summary (NTS)
Environmental and Social Action
Plan (ESAP), Stakeholder
Engagement Plan (SEP),
Grievance Mechanism (*High
level or for each project with
significant impact on local
population and/or environment)
Upload on company website at
http://www.cez-rp.bg
http://www.cez-
rp.bg/en/contacts/map/
In printed/hard copy form at CEZ
Distribution Customer Services
centres (location and schedule here:
http://www.cez-
rp.bg/en/contacts/map/)
Initial
disclosure:
2016
Updated
versions: as
needed, on on-
going and
project basis
General Public and Local
population;
CEZ Distribution
Specific Projects information prior starting any rehabilitation/construction works (leaflets, posters) relevant for local public, in line with national regulations.
Information panels in affected villages for each of the Project in the Investment Programme with significant impact on local population and/or environment, information disclosed on company website, according with the requirements of the national regulations Meetings with local authorities or
Information
panels
Disclosed
information
updated as
needed on on-
going basis
Local population
Landowners /farmers in
the projects area
CEZ Distribution
and its
construction
contractors
CEZ DISTRIBUTION BULGARIA 14 JUNE 2017
Information Disclosed or
Engagement Actions
Form(s) of communication Location and
Dates
Target Stakeholders Responsibilities
their representatives
Individual meetings with clients
Letters
Announcements
Leaflets and trainings on energy
savings for reducing the electricity
bills and on risks of unauthorized
electrical works on human health
Communication with local
communities with issues in paying
electricity bills (including but not
limited to roma people) through
different organizations /NGOs or as
suggested by the local
administration
Individual meetings with clients
(roadshow of the Energy
Ombudsman, mobile offices)
Meetings with local authorities and
key opinion leaders
Ongoing
basis/as
needed/feasible
People with issues in
paying bills
CEZ Distribution
with support from
local NGOs and
local authorities
Providing the local population
(clients) (especially in areas with
vulnerable people) with
information and guideline on main
investment projects, tips for
energy savings in order to reduce
the electricity bills and
state/company support, if
applicable
Upload on company website at
http://www.cez-rp.bg
Meetings with local authorities or
their representatives
In printed/hard copy form at CEZ
Distribution Customer Services
centers (location and schedule here:
http://www.cez-
rp.bg/en/contacts/map/
Ongoing basis Vulnerable / low income
people
CEZ Distribution
with support of
local
authorities/mayoral
ties
CEZ DISTRIBUTION BULGARIA 15 JUNE 2017
Information Disclosed or
Engagement Actions
Form(s) of communication Location and
Dates
Target Stakeholders Responsibilities
Media articles and intevires
Press-releases
Antitheft of electricity and
equipment measures (e.g.
investments in grid to reduce
losses and ensure quality of
supply; protection of human life;
equitability principles in paying the
bills for real consumption)
Media publications: articles (press-
releases), interviews; articles by
opinion-makers; reports in main and
local media;
Media workshops / letters/ meetings
with institutions and local
authorities
Press-releases
Upload on company website at
http://www.cez-rp.bg
and facebook
Ongoing basis/as
needed/feasible
Clients; State Institutions;
Local authorities; Media;
Parliament; Regulators;
Opinion leaders; Other
utility companies
CEZ Distribution
Liberalization of the market for LV
end-users. Message: CEZ
Distribution remains the operator
of the grid regardless of choice of
end-suppliers. The tariffs of grid
services continue to be regulated.
CEZ has the necessary know-how
to operate on an open market with
all participants on it.
Media publications: articles (press-
releases), interviews; articles by
opinion-makers; reports in main and
local media;
Media workshops / letters/ meetings
with: institutions and local
authorities
Press-releases
Upload on company website at
http://www.cez-rp.bg
and facebook
Ongoing basis/as
needed/feasible
Clients: households and
business on LV;
State institutions;
Local authorities;
Opinion leaders;
Experts;
CEZ Distribution
Improvement in quality of energy
supply. Message: We are
investing every lev in the grid to
ensure quality. We are a hard-
working, professional and
Media publications: articles (press-
releases), interviews; articles by
opinion-makers; reports in main and
local media;
Ongoing basis/as
needed/feasible
Clients; State institutions;
Local authorities; Media;
State Regulator; Opinion
leaders; Business and
Branch organizations;
CEZ Distribution
CEZ DISTRIBUTION BULGARIA 16 JUNE 2017
Information Disclosed or
Engagement Actions
Form(s) of communication Location and
Dates
Target Stakeholders Responsibilities
customer oriented company. We
are open and transparent. We are
improving each segment of our
work processes in order to serve
customers better
Media workshops / letters/ meetings
with institutions and local authorities
Upload on company website at
http://www.cez-rp.bg
and facebook
Customer organizations
Disruptions by excavation works.
Message: We are a responsible
company abiding to the laws. We
are calling the rules to be
respected in order to minimize the
inconvenience for our clients. We
are a trustful partner in providing
service to the population.
Media publications: articles (press-
releases), interviews; articles by
opinion-makers; reports in main and
local media;
Meetings with branch organizations
Upload on company website at
http://www.cez-rp.bg
and facebook
Ongoing basis/as
needed/feasible
Clients; Media;
Regulator;
Ministry of Energy;
Ministry of Construction;
Construction Chamber;
Opinion leaders;
Construction companies
CEZ Distribution
Preparation for the winter season.
Message: We conduct a voluntary
inspection of power equipment to
prepare it for the increased
consumption during the winter
season. We invest a maximum
within our resources to replace or
prepare equipment
Media publications: articles,
interviews; news reports in main and
local media;
Exclusive TV Report; News
conference, media workshop,
Upload on company website at
http://www.cez-rp.bg
and facebook
Yearly, on Q3 Clients; Institutions;
Local authorities; Media;
State Regulator; Opinion
leaders; Consumer
organizations
CEZ Distribution
Simplification of procedure for
connecting new clients to the grid.
Message: We are a hard-working,
professional and customer
oriented company.
We are improving each segment
of our work processes in order to
serve customers better.
Media publications: articles,
interviews; news reports in central
and regional media;
Meetings with local authorities
Meetings with branch organizations
Upload on company website at
http://www.cez-rp.bg
and facebook.
Ongoing basis/as
needed/feasible
Clients: business and
domestic;
Institutions; Regulator;
Construction Chamber;
Construction
companies;
Business and Consumer
organizations
CEZ Distribution
CEZ DISTRIBUTION BULGARIA 17 JUNE 2017
Information Disclosed or
Engagement Actions
Form(s) of communication Location and
Dates
Target Stakeholders Responsibilities
Buyouts of facilities built by 3rd
parties
Direct communication
Interviews and articles
Press-releases
Regular meetings with local
authorities
Ongoing-basis Investors and
construction companies
CEZ Distribution
*High level ESAP, NTS and SEP refers to current documents produced by ERM as part of the 2016 ESDD for the 2016-2019 Investment Program.
Similar with these general documents, CEZ Distribution will produce ESAPs, NTSs and SEPs for each of the major (with impact on socio-
economic and environment) project in the 2016-2019 Investment Program.
CEZ DISTRIBUTION BULGARIA 18 JUNE 2017
5. GRIEVANCE MECHANISM
Reporting Grievances
CEZ Distribution has implemented an Internal Grievance Procedure (called Directive
No.78/2011) allowing for appropriate stakeholder grievance management. The Directive
addresses the process of receiving, recording, investigation, resolution, reporting and
response to grievances and is interconnected with other specific procedures implemented at
the Company.
A grievance is an actual or perceived problem or other issue related to a project of the
investment programme that might give grounds for complaint by a member of the public or
other stakeholders. As a general policy, the Company will work pro-actively towards the
prevention of grievances through the implementation of impact mitigation measures and
community liaison activities that enable CEZ Distribution to anticipate and address potential
issues before they become grievances
Nevertheless, should grievances emerge, the Company is committed to addressing these in a
timely and effective manner in accordance with the national legislation, international best
practice and the Company's Internal Grievance Procedure.
A Public Grievance Form (provided in Annex B) should be completed by anyone wishing to
lodge a grievance in written form. The form comprises fields for (i) the name and contact
details of the person lodging the grievance (for the purposes of enabling communication on
grievance process and its resolution) including preferred means of communication, (ii)
description of the grievance/incident, (iii) the date when the grievance/incident occurred, (iv)
grievance resolution outcome expected by the person lodging the grievance, (v) grievance
categorization and (vi) indication on the expected resolution time as per the Company
procedure.
This Form is to be made available in Bulgarian language at Company’s Customer Services
Centres in all the ten regions in Western Bulgaria and on the website.
All grievances submitted to the Clients Servicing Centres have to comply with the following
requirements:
To be written in Bulgarian;
To include the name and address of the person lodging the grievance;
To be signed by the person lodging the grievance;
To include clear description of the grievance/request;
To include details on the specific case as well as evidences if available;
Place of electricity consumption if the grievance is related to a specific object of electricity consumption.
Grievances that do not comply with the above requirements are also accepted and registered
(e.g. anonymous), but their resolution may take longer time. In case a grievance includes a
phone number as contact details, the CEZ employees will call and request additional details
on the case in order to clarify the circumstances described in the grievance.
All grievances are registered in the Clients Information System (CIS) - SAP business
operations and customer relations software system - and receive unique reference numbers.
Responsibilities are defined for each process stage.
CEZ DISTRIBUTION BULGARIA 19 JUNE 2017
In case the grievance is submitted in other format, the CEZ employee receiving the appeal will
fill in all the data in the designated Grievance form and will assure its registration in the CEZ
grievance system CIS.
The Grievance Procedure will be advertised on company website at http://www.cez-rp.bg and
on printed / hard copy forms at CEZ Distribution Customer Services Centres.
How to Register a Grievance?
There are several ways that a grievance will be able to be registered:
By sending a completed Grievance Form to our headquarter at 159 Tsarigradsko Shose Blvd. Sofia 1784;
By sending a completed Grievance Form to one of our offices: (Addresses and schedule here: http://www.cez-rp.bg/en/contacts/map);
By sending an email to the following address: [email protected]; [email protected]; [email protected]
By calling our company at: 0700 10 010 (hotline) or by sending a fax to (02) 8959 667;
In addition to the above mentioned requirements, the grievances submitted to the dedicated
email address ([email protected]) should include information on the preferred means of
communication.
Confidentiality
Some grievances may be raised in confidence under this procedure. Grievances will not be
disclosed without the consent of the stakeholder.
Grievance Procedure
CEZ Distribution handles grievances received in line with the Directive No.78/2011
implemented at the Company. Directive No.78/2011 includes a separate section related to
grievances received from governmental institutions.
The procedure addresses the process of receiving, recording, investigation, resolution,
reporting and response to grievances received and is interconnected with other specific
procedures implemented at the Company. Responsibilities are appropriately defined for each
process stage. The procedure also provides for continuous improvement based on feedback
from all involved in handling the grievance process.
The current Grievance Procedure is very general and mainly customers oriented. This is to be
revised to specify that covers also environmental, social, land use, biodiversity, cultural
heritage and other non-customers related topics and situations.
Four process streams are defined for handling the grievances, pending on how the grievance
is received: (i) by email or by fax, (ii) by regular mail or in person/verbal, (iii) through the call
centre/hotline or (iv) through the client relations centre.
In all cases, once received, a grievance is registered, managed and tracked using the SAP
business operations (Clients Information System (CIS) used and operated by the Company.
Along with the filling in of the relevant information in the CIS, the responsible
department/person for the specific grievance is defined. The grievance is then forwarded to
that department/authorized person for resolution which will distribute it to appropriate
responsible. Employees of Customer Service Department are in charge with the monitoring of
the process of answering the grievance and the deadline to communicate the resolution to the
CEZ DISTRIBUTION BULGARIA 20 JUNE 2017
appellant. Once the person in charge with solving the grievance prepares the answer, this is
forwarded to the authorized his immediate superior manager for review and
approval/signature. Based on the approved statement, the employees of Customer Service
Department prepare an answer to the person lodging the grievance. There are additional
steps in the grievance resolving process for the cases when there are clients’ claims for
compensations for damages, complaints related to poor quality of the supplied electricity or in
other cases on higher difficulty.
The term for answering to the written grievance is of 21 days, with the exception of the
grievances received from authorities when the deadlines are shorter (2 to 7 days, depending
on applicable legislation).
Recording Phase Resolution Phase Monitoring Phase
Grievance
recording
and
allocation
Classification Analysis and
resolution
Response to
grievance
Reporting and
evaluation
Grievance
receipt
(through five
possible
streams
Grievance
allocation to
the relevant
grievance
administrator
and
recording in
SAP system
Grievance
classification
by grievance
administrator
Assignment
of resolution
deadline (with
consideration
of legal
requirements
when
applicable)
Grievance
allocation to
relevant
employee or
Company
department
for analysis
and
resolution
Grievance
analysis and
resolution
Preparation
and
provision of
response to
grievant
Grievance
closure
Periodic monitoring
based on key
performance indicators
(KPI) when applicable,
reporting, continue
process improvement
In period 2010-2016, there were 60,900 grievances registered by the Company, focused
almost exclusively on the issues directly connected to distribution of the electricity (meters
functioning, damages to the powerlines, quality of electricity, licenses, quality of services, theft
of electricity, facilities for purchase electricity, overcharged recuperation, invoicing etc). There
was no information available whether any of those grievances was also sent to court of justice
for resolution.
Workers’ Grievances
The grievance mechanisms regarding working conditions and attitude of employees are in
compliance to current legislation in Republic of Bulgaria (Labor Code, Law for protection of
discrimination, labour safety conditions regulations, etc.) and internal rules and procedures.
The steps in the formal process are the following:
submission of the complaint to HR department, leadership of the company, to the line manager and the Ethic hotline on CEZ Distribution website (section Contacts)
CEZ DISTRIBUTION BULGARIA 21 JUNE 2017
Assignment of an independent Commission for Investigation of the complaint;
Review of the complaint and its grounds and priority;
Meetings, evidence collection, interviews with involved employees (including employee who has submitted the complaint)
Preparation and submittal of the proposed resolution to the management board of the Company with final conclusions and opinion of the Commission for Investigation.
Feedback to the employee who has submitted the complaint.
Taking follow-up measures (if applicable)
If preferred by the complainant /if considered more feasible / in case of sensitive issues, it is
also an option to address the grievances by having informal discussion and escalation of
working issues with the line manager and HR department. In addition, three psychologists
were recently hired by CEZ as part of the newly opened unit Internal Assessment Centre. The
scope of this unit is evaluation and development of the managerial positions and employees.
Although their role is mainly related to organizational psychology as opposed to addressing
conflicts, in sensitive cases, the psychologists may also provide support and expertise upon
need.
The period of time for providing a resolution depends on its complexity, but will be done in a
reasonable period of time (in case no detailed investigations are needed, up to 30 days).
In 2015 there were four written grievances registered by the CEZ employees. These refer to
complaints on the line managers, bonuses system, discrimination and sexual harassment and
all were solved internally, without escalating the case to the court and without any complains
or risks on violation of the human rights.
CEZ DISTRIBUTION BULGARIA 22 JUNE 2017
Annex A
Stakeholder List and Contact Details
CEZ DISTRIBUTION BULGARIA 23 JUNE 2017
Name Contact details Responsibility / Involvement
in the project/project area (if
applicable)
State institutions, administrative bodies, regulator, national ombudsman, local and
regional authorities
KEVR Sofia 1000, 8-10
Dondukov Blvd.
Ministry of Energy Sofia, 8 Triaditsa Str
Parliamentary
committees
Sofia, 1 Knyaz
Alexander I Square
National Ombudsman Sofia 1202, 22 George
W. Street
Commission for
protection of
competition
Sofia 1000, 18 Vitosha
Blvd
Commission for
protection of
consumers
Sofia 1000, Slaveykov
Square 4 A
Governor of Sofia-town Sofia 1000, Alabin 22
Governor of Sofia
Governor of Pleven 1 Vazrazhdane Square,
fl. 4, Pleven 5800
Governor of Lovech 43 Targovska Str.,
Lovech 5500
Governor of Vidin 6 Dunavska str., Town
of Vidin 3700
Governor of Montana Jeravitsa Square,
Montana 3400
Governor of Vratsa 1 Demokratsia Blvd.,
Vratsa 3000
Governor of Kustendil Kyustendil 2500, 44
Demokratsiya Street,
Governor of
Blagoevgrad
Georgi. Izmirliev
Square 9, Blagoevgrad
2700
Governor of Pernik Pernik 2300, 1B Ivan
Rilski Str
Independent experts/opinion leaders /NGOs
CEZ DISTRIBUTION BULGARIA 24 JUNE 2017
Institute for Energy
Management
Sofia, 1000, Lege 5,
floor 1
Bulgarian Energy and
Mining Forum
1000 Sofia,Bulgaria
4 Trapezitsa Str., 4-th
floor
Media
Newspaper Group
Bulgaria
Sofia 1124,
Tsarigradsko Shose 47
Newspaper Stroitel Mladost, 6, Mihail
Tenev Str., Sofia 1784
Consumer Organizations
Federation of
consumers
Sofia 1303, 35
Sanchefano Stambolov
Str
National Association
Active Consumers
Sofia 1000, 26 Vrabcha
Str
Independent Union of
consumers
Sofia 1000, Klokotnitsa
Str. 33-35 B
Business / Branch Organizations
Association of Industrial
Capital in Bulgaria
1527 Sofia, 15 Trakia
Street, floor
Bulgarian Construction
Chamber
Mladost, 6, Mihail
Tenev Str., Sofia 1784
Confederation of
employers and
industrialists in Bulgaria
Sofia 1463, 8 Khan
Asparuh Str
Bulgarian Industrial
Association
1000 Sofia, 16-20,
Alabin Str.
Bulgarian federation of
the industrial energy
consumers
Sofia 1700, 1
Universitetski park Str.
Other companies within the CEZ Group
CEZ Electro Bulgaria Sofia 1784,
Tsarigradsko Shose
159
CEZ Trade Sofia 1000, Pozitano
Square 2A
CEZ DISTRIBUTION BULGARIA 25 JUNE 2017
Annex B
Public Grievance Form
CEZ DISTRIBUTION BULGARIA 26 JUNE 2017
PUBLIC GRIEVANCE FORM
Reference No:
Full Name
Contact Information
Please mark how you wish to
be contacted (mail, telephone,
e-mail).
By Post: Please provide mailing address: ______________________________________________________________________________________________________________________________________________________________________________
By Telephone: _______________________________________________
By E-mail _______________________________________________
Preferred Language for
communication Bulgarian
Other, please specify: ___________________
Description of Incident or Grievance: What happened? Where did it happen? Who did it happen to?
What is the result of the problem?
Date of Incident/Grievance
One time incident/grievance (date _______________)
Happened more than once (how many times? _____)
On-going (currently experiencing problem)
What would you like to see happen to resolve the problem?
Signature: _______________________________
Date: ______________________________
Please return this form to: Customer Service Department
We will register your complaint and provide an answer within up to 21 calendar days.