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TRANSCRIPT
CEZ DISTRIBUTION BULGARIA 1 JULY 2016
CEZ DISTRIBUTION BULGARIA AD
Stakeholder Engagement Plan
2016-2019 Investment Program
July 2016
Prepared for:
European Bank for Reconstruction and Development
One Exchange Square
London
EC2A 2JN
CEZ DISTRIBUTION BULGARIA 2 JULY 2016
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 .........................................................................................13
5 GRIEVANCE MECHANISM ..................................................................................................................19
Annex A: Stakeholder Contact Details
Annex B: Public Grievance Form
CEZ DISTRIBUTION BULGARIA 3 JULY 2016
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 Environmental and Social Action Plans (ESAPs), Non-Technical Summaries
(NTSs) and Stakeholder Engagement Plans (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), CEZ Trade (energy trading company) and TPP Varna (a 1260 MWh
thermoelectric power plant).
The Company is the successor of Electrorazpredelenie Stolichno AD,
Electrorazpredelenie Pleven AD and Electrorazpredelenie Sofia Oblast AD as result of
CEZ DISTRIBUTION BULGARIA 4 JULY 2016
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 refers 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 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. CEZ Distribution is in process of obtaining finance of its 2016-2019
Investment Program from the European Bank for Reconstruction and Development
(EBRD). The 2016-2019 Investment Programme 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
CEZ DISTRIBUTION BULGARIA 5 JULY 2016
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.
Those ten regions cover an area of about 39,084 km2 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 works actively with local and central authorities and is deeply involved in
communities’ social programs within all the ten regions. The Company’s activities
CEZ DISTRIBUTION BULGARIA 6 JULY 2016
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, donation of furniture and
electronics, sponsorship for sport competitions, exhibitions, and other sponsorship
activities.
The Company operates under the following principles of the 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 Public Relation (PR) and Human Resources ( HR) departments 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 JULY 2016
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.
CEZ DISTRIBUTION BULGARIA 8 JULY 2016
2.2 Stakeholder actions 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 announcement boards
at the respective local mayor offices.
CEZ has not received any comments related to environmental or social issues as a
result of such announcements for projects conducted so far as part of the 2016-2019
Investment Program.
Data on scheduled maintenance activities, extension of networks, rehabilitation of
facilities etc. are regularly announced by the company using printed media, radio, TV
or other available channels.
CEZ DISTRIBUTION BULGARIA 9 JULY 2016
3 IDENTIFIED STAKEHOLDERS AND COMMUNICATION RESPONSIBILITIES
Stakeholder engagement is coordinated 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;
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, while their
contact details are provided in Annex 1 . 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 3-3-1 Identified Groups of stakeholders
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,
CEZ DISTRIBUTION BULGARIA 10 JULY 2016
Group of Stakeholders Stakeholders
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;
- Major equipment suppliers;
8. Other companies within the
CEZ Group
-CEZ Bulgaria;
- CEZ Electro; - CEZ Trade Bulgaria;
- Varna TPP;
9. Vulnerable people - to be determined
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.
CEZ DISTRIBUTION BULGARIA 11 JULY 2016
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”.
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.
CEZ DISTRIBUTION BULGARIA 12 JULY 2016
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 used in answers to media inquiries, interviews and press releases are
the following:
No business can operate at a loss for a long-term period;
Currently CEZ Distribution realize losses from each kWh sold in night tariff
because there is no recognition of actual amount of operating expenses, lowering
the allowable rate of return as well as of the failure to recognize the full amount of
technological losses;
The price for households continues to be significantly lower than the price at
which the company buys energy from National Electric Company AD;
The final decision on prices is in the hands of the regulator;
Retention of approved revenue at current levels would exacerbate the existing
problems in the grid. To overcome them will be required much larger investments
in the future;
Independent experts have estimated that every year about 150 million Leva (BGN)
have to be put in the grid of Western Bulgaria;
CEZ is investing every Lev it receives on the Bulgarian market in the grid;
In its price proposals in the period 2005-2015, CEZ has request the recognition of
investments amounting to 1,335 billion Leva but the State regulator has approved
only about 55% of it or slightly above 737 million Leva. Nevertheless, CEZ has
invested 845 million Leva in the distribution grid - 108 million Leva more than the
approved investments by the Regulator.
CEZ DISTRIBUTION BULGARIA 13 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:
o Management of internal communication;
o Management of external communication;
o Management of communication in crisis situations;
o Management of Corporate Social Responsibility (CSR activities).
CEZ has prepared and implemented a series of plans meant to provide guidance, planning
and instructions to the personnel in charge with stakeholder engagement within the
Company and programs to communicate the Company’s topics towards external and
internal publics, such as:
o Communication Plans on different business topics;
o Crisis Management Plan incl. Procedures for Issues Management Communication
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 14 JUNE 2016
Source: CEZ Distribution
In 2013, CEZ Bulgaria, at its initiative,
has created an organization called “Consumer Council”, which is headed by the
representative of CEZ Bulgaria and in which different consumer, civic and experts
organizations are taking part. CEZ Distribution has its own representative in the Council.
The organisation hosts regular meetings, with participation of NGOs, customers,
regulators, Ministry of Energy etc. During these meetings, the participants discuss topics
such as the means for controlling the electricity consumption, the behaviour to reduce the
energy bills, causes for interruption of energy, metering etc.
For each stakeholder group the anticipated information disclosure needs and means of
communication are summarised in the table 4-1 below.
CEZ DISTRIBUTION BULGARIA 15 JULY 2016
Table 4-1 Stakeholder Engagement Programme
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), for which EIA is
required.
Upload on company website at
http://www.cez-rp.bg
http://www.cez-rp.bg/en/customer-
service/new1708-plan.html
In printed/hard copy form at CEZ
Distribution Customer Services centres
(location and schedule here:
http://www.cez-rp.bg/en/customer-
service/where-you-can-find-us.html)
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
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 16 JULY 2016
Information Disclosed or
Engagement Actions
Form(s) of communication Location and
Dates
Target Stakeholders Responsibilities
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
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 energy savings for
reducing the electricity bills and
state/company support, if applicable
Upload on company website at
http://www.cez-rp.bg
In printed/hard copy form at CEZ
Distribution Customer Services centers
(location and schedule here:
http://www.cez-rp.bg/en/customer-
service/where-you-can-find-us.html
Ongoing basis Vulnerable / low income
people
CEZ Distribution
with support of local
authorities/mayoral
ties
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
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.
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
Upload on company website at
http://www.cez-rp.bg
Ongoing basis/as
needed/feasible
Clients: households and
business on LV;
State institutions;
Local authorities;
Opinion leaders;
Experts;
CEZ Distribution
CEZ DISTRIBUTION BULGARIA 17 JULY 2016
Information Disclosed or
Engagement Actions
Form(s) of communication Location and
Dates
Target Stakeholders Responsibilities
CEZ has the necessary know-how to
operate on an open market with all
participants on it.
and facebook
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
customer oriented company. We are
opened and transparent. We are
improving each segment of our work
processes in order to serve customers
better
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
Upload on company website at
http://www.cez-rp.bg
and facebook
Ongoing basis/as
needed/feasible
Clients; State institutions;
Local authorities; Media;
State Regulator; Opinion
leaders; Business and
Branch organizations;
Customer organizations
CEZ Distribution
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;
News conference, Round table with
Construction Chamber, letters/
meetings with: institutions and local
authorities
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
Yearly, on Q3 Clients; Institutions; Local
authorities; Media; State
Regulator; Opinion
leaders; Consumer
organizations
CEZ Distribution
CEZ DISTRIBUTION BULGARIA 18 JULY 2016
Information Disclosed or
Engagement Actions
Form(s) of communication Location and
Dates
Target Stakeholders Responsibilities
and facebook
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;
Upload on company website at
http://www.cez-rp.bg
and facebook.
Consumer Council meeting.
Ongoing basis/as
needed/feasible
Clients: business and
domestic;
Institutions; Regulator;
Construction Chamber;
Construction companies;
Business and Consumer
organizations
CEZ Distribution
General support to and engagement
with local communities
Direct communication with local
administrations
Ongoing
basis/as
needed/feasible
Local population CEZ Distribution
and its construction
contractors
*High level ESAP, NTS and SEP refers to current documents produced by ERM, an independent international consulting firm, 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, for which an EIA is required.
CEZ DISTRIBUTION BULGARIA 19 JULY 2016
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 of this document) 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.
CEZ DISTRIBUTION BULGARIA 20 JULY 2016
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.
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/customer-service/where-you-can-find-us.html);
By sending an email to the following address: [email protected];
By calling our company at: 0700 10 010 (hotline) or by sending a fax to (02) 8959 667;
By web portal at: http://www.cez-rp.bg/edee/qf/en/ramjet/cez-rp/contact-us/formPage .
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.
CEZ DISTRIBUTION BULGARIA 21 JULY 2016
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.
Five 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, (iv) through the client relations centre or (v)
through the web portal.
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 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).
CEZ DISTRIBUTION BULGARIA 22 JULY 2016
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 or to the line manager;
Assignment of an independent Commission for Investigation of the complaint;
Review of the complaint and its grounds and priority;
CEZ DISTRIBUTION BULGARIA 23 JULY 2016
Meetings, evidence collections, 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.
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 24 JULY 2016
Annex A
Stakeholder Contact Details
CEZ DISTRIBUTION BULGARIA 25 JULY 2016
Name Contact details Responsibility /
Involvement in the
project/project area (if
applicable)
State institutions, administrative bodies, regulator, national ombudsman, local
and regional authorities
Independent experts/opinion leaders /NGOs
Media
Consumer Organizations
Business / Branch Organizations
Major equipment suppliers and contractors
Other companies within the CEZ Group
CEZ DISTRIBUTION BULGARIA 26 JULY 2016
Annex B
Public Grievance Form
CEZ DISTRIBUTION BULGARIA 27 JULY 2016
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
CEZ Distribution Bulgaria AD
Address: 1784 Sofia 195 Tsarigradsko shosse Blvd. ; e-mail: [email protected]
We will register your complaint and provide an answer within up to 21 calendar days.