INSTITUTE OF PROFESSIONAL STUDIES (IPS)

BUSINESS POLICY AND STRATEGY

Name Level ID No Programme Date

: : : : :

Ahiabli A. Woelinam 400 08bmr212 Bachelor of Science Marketing 23 March 2011

Lecturer

Charles Barnor

GHANA ELECTRICITY COMPANY LIMITED

STRATEGIC PLAN

For 2010 2012

LOCATION: ACCRA OPPOSITE INDEPENDENCE SQUARE

FOREWORD

Every institution, industry and home needs electrical energy in one way or the order to carry out its daily activities. Being such an essential commodity the Government of Ghana in 1967 by Government Decree (NLCD 125) set up the Electricity Corporation of Ghana to provide this service. The Corporation however in February 1997 was divested and incorporated under the Companies Code, 1963 (Act 179) and known as the Electricity Company of Ghana Limited (ECG).

Sign: (Chief Executive)

GHANA ELECTRICITY COMPANY LIMITED

TABLE OF CONTENT

Title

Page No

Cover page Foreword Executive summary The Enterprise strategic plan

.. .. .. . .

i ii 4 7

EXECUTIVE SUMMARY
1.0 ELECTRICITY COMPANY OF GHANA LIMITED The Electricity Company of Ghana Limited primarily was responsible for buying and selling of electricity in Ghana. In January 1987, however, the Volta River Authority (VRA) established the Northern Electricity Department (NED), which took over from ECG the responsibility of running and developing electric power systems in the designated regions of; Brong - Ahafo, Northern, Upper East and Upper West Regions. ECG buys from twenty six (26) BSPs i.e. at Western (Sekondi, Esiama, Tarkwa, Bogosu, Akyempim and Asawinso), Central (Cape Coast, Winneba and Dunkwa), Accra West (Mallam), Accra East (Achimota), Tema (Tema), Volta (Denu, Sogakope, Asiekpe, Kpeve, Ho, Kpando), Eastern (Akwatia, Akuse, Kpong, Nkawkaw and Tafo), Ashanti West (Kumasi and Obuasi), and Ashanti East (Konongo)

1.2

POWER SECTOR MINISTRY

ECG, is a limited liability company wholly owned by the Government of Ghana, and operates under the Ministry of Energy (MoEn).

1.3

REGULATORY BODIES

In pursuance of the Power Sector Reform objectives, the Government established the Public Utilities Regulatory Commission (PURC) under Act 538 of 1997 to approve electricity prices among others in the regulated market in the country. The Energy Commission was also established under Act 541 of 1997 to regulate and licence operators within the sector. 1.4 MAIN INPUTS

ECG buys in bulk electric power from VRA at 33,000 and 11,000 volts for distribution.

1.5

MAIN OUTPUT

The Company sells electric power to its customers within the following Voltage Standards:

Voltage Standards Nominal: Minimum: Maximum: Low Voltage (LV) Network 230/400V 207/360V 253/440V 11Kilo Volt (KV) Network 11KV 10.26 kV 11.69 kV 33Kilo Volt (KV) Network 33KV 29.98kV 35.05kV

1.6

MARKET As at the 2nd quarter of 2010, ECG had 1,963,958 customers in six regions of Ghana, namely: Western, Central, Greater Accra, Volta, Eastern, and Ashanti. The customer numbers and percentages are presented in the table below.

CUSTOMER POPULATION

NO.

CATEGORY OF CUSTOMERS

NUMBER

PERCENTAGE OF TOTAL

1 2 3

Special Load Tariff (SLT) Non Special Load Tariff (NSLT) Prepayment TOTAL

1,211 1,477,316 485,431 1,963,958

0.06 75.22 24.72 100

1.7

PRICING/TARIFF Until 31st May, 2010 the ECG operated with the PURC approved Bulk Supply Tariff (BST) of GH0.0692/who, Distribution Service Charge (DSC) of GH0.0585 and an Average End User Tariff (AEUT) of GH0.1277/kwh. However with effect from 1st June, 2010, the PURC approved new tariffs. The newly approved tariffs for the various services are; Bulk Generation Charge of GHp 11.91/kWh, Transmission Service Charge of GHp 2.40/kWh, Distribution Service Charge of GHp 9.88/kWh, and an End User Tariff of GHp 24.19/kWh.

THE ENTERPRISE STRATEGIC PLAN

2.0

ECONOMIC OUTLOOK FOR 2010 - 2012

ECG has adopted the Split Metering procedure to boost revenue as well as reduce Systems Losses arising from meter tampering and by-passing of meters. ECG will confront the challenge of energy theft by rerouting service connection tails to be visible.

Remote reading of Special Load Tariff (SLT) meters has begun in Tema and it will be rolled out to Accra and Takoradi in the coming year(s).

The vision of ECG for 2010 is to delight its customers. In order to achieve this, internal marketing will be enhanced so that staff will be the primary agents for the achievement of this laudable vision of delighting customers.

3.0

MISSION, VALUES AND VISION STATEMENTS

Mission Statement

ACHIEVING A STEP CHANGE IN QUALITY OF SERVICE TO OUR CUSTOMERS Values Statement y y y y WE ARE PASSIONATE ABOUT OUR CUSTOMERS WE WANT TO BE THE BEST WE VALUE EACH OTHER WE CAN BE TRUSTED

Vision Statement ACHIEVING CUSTOMER DELIGHT ECG operates in an environment which continues to be characterised by rapid advance in New product development and technology which has substantially resulted in the frequent Introduction

of new products, features and performance competiveness. This strategic plan addresses the following key strengths, weakness, threats and opportunities for ECG.

4.0

CORPORATE OBJECTIVES:

Refer to Annual Plan 2010 for full details of corporate objectives.

During the contract period the principal objectives of ECG will be:

4.1

To co-operate with government and its agencies in the demand side management of power for the success of the National Electrification Scheme (NES).

electric

4.2

To obtain targeted Sales of 5,579 GWh valued at GH1,162 million at the end of the contract period in 2010.

4.3

To achieve a Staff Productivity Ratio of 0.95 GWh per staff by the close of the contract

year.

4.4

To reduce System Losses from 26% to 23% by the end of the year 2010.

4.5

To achieve a Revenue Collection to Sales ratio of 100% by December 2010.

4.6

To achieve 100% execution of all planned preventive maintenance schedules throughout 2010 in order to achieve the targeted performance efficiencies and effectiveness of our systems.

4.7

To continue to adopt appropriate maintenance culture and practices, which will prolong the life span of all physical assets and ensure maximum utilization in harmony with and environment? friendly to the

4.8 To achieve 100 and 30 customer lost hours for rural and urban respectively.

4.9

To install computerized Materials Management System by 30th September, 2010.

4.10 To maintain optimum fleet holding of 1000 operational/service vehicles and 250 motorbikes by December 2010.

4.11 To maximize returns on ECGs financial investments in excess of the prevailing Treasury Bill Rate by at least 2%.

4.12 To ensure that all ECGs assets and interests are appropriately safeguarded.

4.13 To ensure that all titles to land and right of way/payment of compensation are determined accurately.

4.14 To lobby for legislation to support the work of the company.

5.0

CONSTRAINTS

5.1

Customers unwillingness to pay for energy consumed.

5.2

High operating cost in Government funded National Electrification Areas

5.3

Inadequate Distribution Service Charge (DCS).

5.4

Financial gap in investment, continuous lack of adequate investments in the network leading to insufficient capacity to cope with load growth and inability to replace obsolete plant.

5.5

High incidence of energy theft

5.6

Inadequate laws to safe-guard the operations of ECG such as transmission line protection laws on way leave etc

6.0

STRATEGIES

Within the contract period, ECG shall implement these strategies towards the achievement of its objectives:

6.1

Continue with the improvement and expansion programmes to reinforce the sub-transmission system and extend the distribution system in the areas of operation.

6.2

Continue to assist the Government in the implementation of the National Electrification Programme by extending grid electricity to qualified communities under Self-Help Electrification Plan.

6.3

Pursue vigorously activities leading to institutional restructuring and strengthening through staff development and focusing training activities on customer service.

6.4

Co-operate with the Ministry of Energy in the Electricity Conservation, Demand Side Management, Supply Management and other Programmes.

6.5

Implement Training and Development programmes through in-house as well as local and Overseas training schemes.

6.6

Control cost through budgetary controls and monitoring of expenses.

6.7

Improve Revenue Collection by deploying more prepayment meters.

6.8

Intensify Revenue Protection Activities to reduce energy theft.

6.9

Continue to make representations to the PURC for granting of economic tariffs to fully cover distribution costs.

6.10 To ensure that credit customer accounts do not exceed average of two months consumption.

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6.11

Intensify efforts to reduce the system losses to 23%

7.0

EXPECTED KEY RESULT AREAS (CORPORATE)

This current corporate plan is design to see a great improvement in following key areas. Performance and services: the current corporate plan is design to show improvement in ECG company performance and services with emphasis the following key performance areas; y y y Process and out comes Customers service links Service quality consideration

Premium income: ECG is expecting to increase it premium over the entire period of the corporate plan. Branch: ECG is expecting to open new branches in other areas as stipulated in it

current corporate plan. Business operating: The ECG is expecting to take greater percentage of the market product both in local and foreign.

PLANNIG ASSUMPTIONS

8.1

The projections for 2010 is based on the old tariff operated from January 01 May

31,

2010 and the new tariff from June 01, 2010.

8.2

The provision of adequate funds by Government of Ghana for the implementation of Self-Help Programmes.

8.3

The following average exchange rates of the Ghana cedi against the major foreign currencies are

expected to prevail in 2010 for official transactions: US Dollar GBP EURO 8.4 1.7500 2.7000 2.4000

Positive support from Government by making adequate provision in the national budget to settle timeously the cost of power consumed by the subvented state organisations and agencies.

8.5

Governments support by providing guarantee in ECGs effort to obtain loans to finance the investment needed to complete the on-going rehabilitation and expansion of the distribution system.

8.6

Inflation is estimated at 3% for foreign and 15% for local transactions.

9.0

STRATEGIC ISSUES

Following the stakeholder analysis, SWOT analysis, Mission Statement, Values Statement and Vision Statement, the following strategic issues were identified to be the focus of the Strategic Plan 2007 2011.

Table 4 Issue

Strategic Issues Significance of Issue

1. Energy sector reforms

A major Government policy initiative that will heighten competition in the energy sector

2. ECG/NED Merger

A major Government decision with implications for ECGs systems, strategy, staffing and shared values

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3. Customer service delivery

Quality customer care is the basis for increased revenue and financial viability

4. Low revenue collection

Affects the financial viability of the Company

5. High system losses

Leads to low revenue and weak financial base

6. Strengthening ICT

Key strategy to address problems of poor customer care

7. Ageing network

Creates undesirable power outages, affects quality of service, and negatively impacts customer satisfaction, and increased line losses.

8. Staff productivity

Affected by factors such as uncompetitive conditions of service, inappropriate organizational structure, low morale, lack of commitment, high staff turnover, poor customer care, and unhealthy industrial relations

9. Organizational practices and values systems 10. Strategic management

Affects productivity and general organizational performance

Effective strategic management, including strategic thinking and anticipatory management, is an effective strategy in a competitive environment

11. Abuses, malpractices and mismanagement of resources 12. Negotiating adequate tariffs

Affects Companys financial stability, weakens staff morale and leads to poor corporate image The Company needs to negotiate adequate tariffs to enhance the profitability of operations

10.

PLAN IMPLEMENTATION, MONITORING AND EVALUATION

10.1

Implementation

A strategic plan is only effective when people commit themselves to its purpose and integrate the

mission, vision, values and goals into their daily activities. As such, the successful achievement of the vision of ECG will depend on the commitment of the Board, Management and staff to implement the policies and programmes that have been identified in the plan to address the strategic issues that confront the Company.

A number of steps have been taken during the preparation of the 2007-2011 Strategic Plan to ensure its effective implementation. These include the following features:

The Plan is directed at addressing strategic issues that have been identified on the basis of stakeholder analysis, SWOT analysis, scenario analysis, and the vision statement.

The strategic issues have been addressed through specific strategic actions and action steps.

All Head Office Directorates prepared business plans covering the Strategic Plan period.

All Head Office Directorates and operating Regions prepared Annual Plans for 2007.

A Corporate Planning Manual has been prepared to provide guidance to officials on how to prepare, implement and monitor the various plans that are formulated in the Company.

During the implementation of the plan, several initiatives would be taken to enhance successful execution. Specifically: y The annual budget preparation and monitoring process would be closely linked to the implementation of the Strategic Plan. The Finance Directorate will use the Plan as basis for determining budget priorities.

The Human Resource Directorate will review the Companys performance appraisal system to ensure that staff performance reviews are closely related to the contribution of employees to the achievement of the goals and objectives of the Plan.

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The Human Resource Directorate, in collaboration with the Corporate Planning and Monitoring Directorate, will prepare and execute a training schedule to ensure that all managers are given training in strategic planning and management.

The Corporate Planning and Monitoring Directorate will establish a strategic analysis capacity in the Company to ensure that representatives of the various directorates meet periodically to assess internal and external developments affecting the companys operations and develop appropriate responses to ensure the Companys progress towards the achievement of strategic goals.

The Human Resource Directorate will conduct values audit and analysis early in 2007 to ensure that the values held by the staff of the Company are aligned to those specified as corporate values in the Strategic Plan. The purpose of this initiative is to establish a corporate culture that supports the effective implementation of the Strategic Plan.

The Human Resource Directorate will arrange appropriate courses in change management to help staff to re-orient and focus their attention on the demands of the Strategic Plan.

10.2

Sustaining Strategic Thinking

The process for preparing strategic plans at ECG involved the analysis of the internal and external environment affecting the future operations of the Company. The purpose was to identify strengths, weaknesses, opportunities and threats that should inform strategic choices. Clearly, both the internal and external environments are subject to change, resulting in the emergence of new opportunities and challenges. It is thus necessary to sustain the process of collating and analyzing strategic information and using it to update the strategic plan.

A key element of the strategic thinking process is the establishment and maintenance of appropriate strategic management information system, including the strengthening of organizational capacity to enhance strategic foresight in corporate performance management.

During the first quarter of 2007, the Corporate Planning and Monitoring Directorate will establish appropriate systems and procedures to ensure that the strategic thinking process is sustained.

10.3

Monitoring and Evaluation Monitoring and evaluation activities are key elements in the strategic management process. It is important to ascertain progress in the implementation of the strategic plan through the process of monitoring and evaluation. To the extent that monitoring and evaluation may be considered as a process, they need to be planned, implemented, monitored and evaluated.

Monitoring and evaluation are closely related activities. They are both forms of assessment of the achievement of goals and objectives on the basis of information gathered.

Monitoring and evaluation involve several activities, including:

y y

Establishing consensus on indicators for monitoring and evaluation; Agreeing on the modalities for generating and utilizing information for monitoring and evaluation;

y y y y y y y

Specifying reporting requirements; Establishing monitoring and evaluation responsibilities; Providing adequate budget for monitoring and evaluation; Observing the implementation of the plan; Analyzing emerging planning and implementation problems; Finding solutions to problems identified; and Implementing solutions to ensure that plan implementation is on course.

To strengthen the monitoring and evaluation capacity of the Company during the Plan period, the Corporate Planning and Monitoring Directorate will:

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Review the existing corporate performance management metrics to ensure that they are adequate to monitor progress in the implementation of the Strategic Plan.

Establish a strategic management information system to ensure that the Companys foresight and anticipatory management capacity is enhanced.

Put in place an effective monitoring and evaluation system to ensure that the Strategic Plan is effectively monitored. This includes the establishment of the key monitoring and evaluation indicators as well as a reporting system that communicates the relevant information on plan performance to all stakeholders for appropriate action.

10.4

Review of the Strategic Plan

The Strategic Plan will be reviewed annually in the context of the preparation of Directorate and Regional annual plans. All Head Office Directorates and operating Regions will prepare annual plans as a basis for making their budget submissions. Such submissions will take account of ongoing programmes, new programmes envisaged in the Plan, and the directives contained in the Managing Directors and Directors Planning Letters. The Finance Directorate will establish budgeting and budgeting control procedures to ensure strict adherence to this policy.

STRATEGIC ISSUE 1: COPING WITH GOVERNMENTS ENERGY SECTOR REFORMS Goal 1: To position ECG to maximize opportunities and minimize potential threat from the reforms Objectives Monitoring Indicators 1.1 To prepare and implement plans for improving key corporate performance factors by end 2007 Results of assessment of performance indicators List of key Corporate performance indicators Conduct baseline assessment of performance indicators and conduct periodic assessments as basis for achieving performance improvements Availability of plan to respond to reforms 1.2 Identify opportunities and threats presented by the Energy Sector Reforms and prepare coping strategies by end March 2007 1.2.3 Prepare adequate coping plans including improvements in key corporate performance in plan period Report on threats and opportunities with ECGs response strategy Use in-house committee 1.2.1 Study Government policy on the Reforms 1.2.2 Identify the opportunities and threats presented by the reforms 1.1.3 Carry out periodic measurements to assess performance improvements 1.1.2 Conduct baseline studies to identify current levels of corporate performance indicators 1.1.1 Design corporate performance indicators Strategy Strategic Actions

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STRATEGIC ISSUE 2: IMPLEMENTING ECG/ NED MERGER Goal 2: To ensure smooth absorption of NED into ECG operations Objective Monitoring Indicator 2.1 To fully integrate NED into ECG operations by end 2007 Revised organization structure to incorporate NED Communication of Job descriptions for new posts merger information to staff 2.1.3 Carry out induction, socialization and training and development plans for new Orientation, training and development plans for new staff Implementation of staff rationalization plan 2.1.4 Disseminate merger information to staff and the Manuals for Directorate Operations Involve VRA and VRA (NED) in the merger planning / committees Staff Rationalization Plan 2.1.5 Discuss and involve identifiable bodies in the preparation and implementation plan general public staff Training and development 2.1.2 Prepare job descriptions for new positions Merger Implementation Plan Review organizational 2.1.1 Review current structure organizational structure to incorporate NED operations Strategy Strategic Actions

Communication Plan

STRATEGIC ISSUE 3: ENHANCING CUSTOMER SERVICE DELIVERY Goal 3: To deliver efficient and friendly customer service and ensure customer satisfaction

Objective

Monitoring Indicators

Strategy

Strategic Actions

3.1 To provide well designed and resourced customer

Ratio of number of established Customer Services Centres to

Construct and resource one customer

3.1.1 Prepare programme for establishment of Customer

services center in each Centres for all operational ECG Regional Capital areas

services centers in all number of operational ECG operational areas by 2010 areas

Construct and resource modern Customer Services Centres throughout the country

3.1.2 Design, construct and resource Customer Services Centres

3.1.3 Recruit and select professional marketers

Improve ICT to link Customer Services Centres 3.1.4 Conduct education and training

Implement audit systems for customer care

3.1.5 Establish audit systems aimed at improving customer care

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STRATEGIC ISSUE 4: IMPROVING REVENUE COLLECTION Goal 4: Objective 4.1 To collect 100% of all billed revenue To maximize revenue Monitoring Indicators Ratio of collected revenue to billed revenue Strategy Education, information and communication (IEC) Strategic Actions 4.1.1 Conduct consumer survey and research 4.1.2 Design and implement Age analysis of debts Expansion of network of collection centres 4.1.3 Develop and implement plans to extend Lobby for review of existing legislation impacting negatively on Company operations 4.1.4 Initiate actions for review of existing laws applicable to ECGs
Disconnection

IEC strategy

network of revenue collection points

operations 4.1.5 Develop and implement plans for effective disconnection management

Improvement in customer services

Establishment of audit systems and processes for improved revenue collection 4.1.6 Develop and implement audit systems to address problem of revenue Improved customer service leakages 4.1.7 Develop ICT systems to improve billing accuracy

4.2 To collect 10% of all recoverable debts

List of uncollectable revenues

Identify and write off uncollectable revenue

4.2.1 Identify uncollectable revenues

List of write-off revenues

4.2.2 Write off uncollectable revenues

STRATEGIC ISSUE 5: MINIMIZING SYSTEM LOSSES Goal 5: To maximize energy sold OBJECTIVE Monitoring Indicators 4.1 To reduce the existing Ratio of sales to Effective monitoring of 5.1.1 Prepare plans for injecting power purchases new equipment and redesigning sections of the system Power network improvement 5.1.2 Implement plans for injecting new equipment and redesigning sections of the system Establishment of technical audit systems 5.2.1 Meter and record all primary and distribution substation reading regularly % of commercial 5.2 To reduce existing commercial losses to (3%) by end of plan period Policy management on 5.2.3 Develop and implement rewards and sanctions policy on rewards and sanctions for staff and informants losses Public information, education and communication 5.2.2 Develop and implement public information, education and communication programmes Strategy Strategic Actions

technical losses to (2%) by purchases end of plan period

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Goal 6: To provide timely and accurate information to deliver prompt service Objective 6.1 To provide global communication network facility for the organization by end 2012 Installed and functional ICT facility Training Data on supply restoration time (time it takes to restore disrupted supply) 6.1.5 Set up system for monitoring and Data on faults response time Availability of software to manage Network Database 6.2 To provide facility to monitor the entire ECG network and installation system by end 2012 Completed and functional facility Design and installation of equipment and software system 6.2.3 Acquire software Training 6.2.4 Train personnel 6.2.2 Define scope of implementation 6.2.1 Conduct feasibility studies evaluation 6.1.4 Train personnel Monitoring Indicator Completed and functional ICT network system Strategy Design and installation of equipment and software system 6.1.3 Acquire software 6.1.2 Define scope of implementation Strategic Actions 6.1.1 Conduct feasibility studies

6.2.5 Set up system for monitoring and evaluation

6.3 To improve fault response time by 50% by end 201

Fault response time

Design and installation of equipment and software system

6.3.1 Conduct feasibility studies

6.3.2 Define scope of implementation

6.3.3 Acquire software Training 6.3.4 Train personnel

6.3.5 Set up system for monitoring and evaluation

6.4 To establish ICT Directorate by end 2012

Established and functioning ICT Directorate

Integrate and incorporate all ICT related operations at the Directorate level

6.4.1 Set up a committee (management) to be responsible for implementation

6.4.2 Appoint consultants to conduct feasibility study and propose structure, role and function

6.4.3 Establish Directorate

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STRATEGIC ISSUE 7: MODERNIZING THE NETWORK Goal 7: To improve network efficiency Objectives 7.1 To rehabilitate all obsolete / overaged equipment and supplies at Network and Substation by 2010 Ratio of rehabilitated equipment to planned schedule Monitoring Indicators Equipment rehabilitation programme for the plan period Strategy Design and implementation of phased and prioritized network rehabilitation programme 7.1.2 Prepare and implement equipment rehabilitation plans Strategic Actions 7.1.1 Carry out network audit to identify obsolete / averaged equipment

STRATEGIC ISSUE 8: IMPROVING STAFF PRODUCTIVITY Goal 8: To improve employee productivity Objective 8.1 To improve staff productivity by (%) during plan period Periodic measurement of employee productivity 8.1.2 Carry out periodic assessment of employee productivity and performance Monitoring Indicator Staff productivity and performance indicators Strategy Create supportive environment for improved staff performance Strategic Actions 8.1.1 Develop employee productivity and performance indicators

8.1.3 Develop and implement policy on human resource management

8.2 To upgrade the Training School to a Directorate level by end 2012

Established and functioning Directoratelevel Training School

Build on existing structure

8.2.1 Set up committee to be responsible for implementation

8.2.2 Appoint consultants to propose structure, role and function

8.2.3 Establish Directorate

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STRATEGIC ISSUE 9: INSTITUTIONALIZING SOUND ORGANIZATIONAL PRACTICES AND VALUES SYSTEMS Goal 9: To establish and implement sound organizational practices and values systems Objective 9.1 To establish and implement sound organizational practices and values systems by end 2012 Periodic organizational audit and analysis Baseline organizational culture audit Monitoring Indicators Brief on the system Strategy Periodic culture audits and action plans to align prevailing culture with desired organizational culture Action plans to address problems of weak organizational practices and values systems 9.1.3 Prepare and implement plans to ensure sound organizational practices and values systems 9.1.4 Design and conduct change management courses 9.1.2 Conduct baseline study of organizational practices and values systems Strategic Actions 9.1.1 Develop system for conducting audit of organizational practices and values systems

STRATEGIC ISSUE 10: STRENGTHENING STRATEGIC MANAGEMENT Goal 10: To enhance the anticipatory management and strategic thinking capacity of the Company Objectives 10.1 To establish an effective strategic planning and management system by end 2010 Strategic analysis sessions conducted Training Monitoring Indicator Planning manual Strategy Dissemination of Planning manual Strategic Actions 10.1.1 Prepare and implement plan to institutionalize strategic planning and management system

Strategic monitoring and evaluation reports 10.2 To train all managers in strategic planning and management by 2010 Number of managers trained in strategic planning and management

Periodic strategic analysis sessions Use external training provider 10.2.2 Prepare schedule of training sessions 10.2.3 Prepare training material 10.2.4 Conduct training 10.2.1 Select training provider

10.3 Establish Directorate of Corporate Planning and Monitoring by end 2012

Established and functioning Directorate of Corporate Planning and Monitoring

Get external consultants to offer advice

10.3.1 Set up committee to be responsible for implementation 10.3.2 Appoint consultants to propose structure, role, function, operating systems and guidelines 10.3.3 Establish Directorate

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STRATEGIC ISSUE 11: ABUSES, MALPRACTICES AND MISMANAGEMENT OF RESOURCES Goal 11: To reduce abuses, malpractices and mismanagement of resources Objective 11.1Design a policy framework to deal with abuses, malpractices and mismanagement of resources by end 2012 Education and training 11.2 Develop structures for implementation of policy framework by end 2012 Document on structures and systems Structures and systems established Internal control systems Rewards and sanctions systems 11.3 Monitor and evaluate performance during the plan period Monitoring reports Reduction in the levels of abuses, malpractices and mismanagement of resources Implementation Actions taken on monitoring reports of monitoring and evaluation reports Audit reports Use in-house committee to develop structures for implementation 11.2.3 Educate staff on the Education and training Establish unit to conduct monitoring and evaluation 11.3.1 Conduct periodic monitoring and evaluation structures 11.2.2 Develop structures 11.2.1 Set up committee to develop the structures Monitoring Indicator Policy framework document Strategy Use in-house committee to develop policy 11.1.2 Develop policy 11.1.3 Educate staff on policy Strategic Actions 11.1.1.Set up committee to be responsible for policy design

STRATEGIC ISSUE 12: NEGOTIATING ADEQUATE TARIFFS Goal 12: To improve ECGs overall financial viability Objective Monitoring Indicator 12.1 To achieve adequate tariffs by 2012 Ratio of PURC approved tariff / ECG proposed tariff 12.1.2 Conduct public Level of operating profit 12.1.3 Conduct training on Difference between bulk supply and end user tariff tariff negotiation education on tariff Annual reports Strengthen negotiation capacity 12.1.1 Develop comprehensive and accurate data base to support tariff negotiation Strategy Strategic Actions

12.2 To prepare for negotiation towards automatic tariff adjustment mechanism by 2011

Level of system losses Develop negotiation strategy Report on negotiation strategy

12.2.1 Prepare negotiation strategy

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11.0

CUSTOMER SERVICES

My Mission To improve customers positive perception of electricity services delivery by 30% in order to improve Customer satisfaction by Dec 2011. My Goals (Measures) are to: 1. 2. 3. Improve customer care by at least 30% above the level as at November, 2010. Reduce commercial losses by 2% points through improvement of billing and metering systems. Reduce debtor days from 122 to 110 by the end of 3rd quarter 2011through improved revenue management Processes. 4. 5. Stem revenue leakage by at least 1% of sales as at the end of 2010 Build sufficient level of capability within my directorate to ensure that all our goals for 2011 are achieved as planned

OPERATIONS My Mission To provide quality and reliable power supply, in a safe environment to our customers in order to improve customer satisfaction.

My Goals (Measures) 1. To build sufficient level of staff capability to achieve 100% fully meets expectation within my Directorate by end of 2011. 2. To achieve customer loss hours of less than 10hrs/qtr for urban and 25hrs/qtr for rural customers by end of 2011. 3. To achieve average number of outages to the customer of less than 2times/qtr and each outage not more than 8hrs for urban areas by end of 2011. 4. 5. To achieve response time to customer complaints of 8hrs in urban areas by end of 2011. To increase redundancy in the 11kV network in urban areas to ensure continuity of supply within regulatory standards by end of 2011.

ENGINEERING
[

My Mission To provide engineering services in the form of system planning, design, project management & supervision and ICT support to enable ECG to achieve Mission 2011. My Goals (Measures) 1. To work with the Materials & Transport Director to implement materials management system that ensures adequate and timely delivery of materials to projects (Dec 2011) and to implement and mainstream the use of project management software (Promasoft) for all ongoing and future projects (Dec 2011) 2. 3. To complete all due projects for 2010 by the second quarter of 2011 (refer to Appendix 1 for list) To complete all projects due 2011by the end of 2011 (refer to Appendix 2 for the on-going projects list) 4. To pilot the network information system (Facilplus) in Tema to test all the capabilities of the software and to enhance the planning & design functions of the engineering directorate (March 2011) 5. To develop staff in project management and also develop in-house training manuals for each division for use by staff. (Dec 2011) 6. Extend the WAN and LAN to all the district offices

The directorate also intends to: 1. 2. Establish long term master plan for the company by the close of 2011 Enhance project feasibility by ensuring that detail designs are fully completed before initiation of procurement MARKETING ECGs marketing policy is building sustainables relationship with both internal and external customers, responding to customers 24 hours. FINANCIAL ECGs policy is to establish concrete financial bases to enhance operation and financial success of the company.

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HUMAN RESOURCES Mission 2011 My directorate will attract and maintain a workforce of appropriate size and quality to improve productivity. Goals (measures) 1. To improve conditions of service for staff and Management to a competitive level within the energy sector so as to improve productivity. 2. To consolidate the PFHP for Managers, and performance appraisal system for Senior & Junior staff so as to maximize employee contribution towards the attainment of mission 2011. 3. To fill key vacant positions timely in order to provide the critical skills required for the achievement of job objectives. 4. To develop comprehensive Human Resources Policy Document and review job descriptions for all directorates in order to facilitate effective human resources management within ECG. 5. 6. To build sufficient level of capability within ECG for the realization of key company objectives. To embed the desired organizational culture for increased productivity.

PRODUCTION ECGs production policies aim at delivering high quality service to customers, in their benefit and distributing wide range of power to meet the various class customers. The following policy will be pursued; Effectiveness Timeliness THE NEEDED RESOURCES ECG needs many resources which will be instrumental to achieve it strategic plan, mission statement and which will provide long-term profit to shareholders They include. Physical Resources; to facilitate production, marketing and information about technology Financial Resources; Capital to finance the company Budgeted estimated amount required to make smooth flow of the ECGs strategic plans Projected Financial Strategic plan; To know where to place the company in order to compute with other

competitors in the near two years to come. New machines are needed to replace the old once.

Key assumptions 1. it is base Revenue targeted on the stated production target for the period 2. Producer price represents 70% of project value. 3. Government duty represents net operating revenue. 4. It is anticipated that from year 2011 onward oil revenue inflows will support the cedi to stabilize the exchange rate. 5. Export Duty includes cocoa road improve funds. 6. Inflation rate of 10% per annum to be achieved on the back of prudent fiscal and monitory policy. y The Risk y Cash overflow and working capital risk y Pricing risk y Premium default risk y Competition Limiting Factors y Exchange rate y The investment needed to complete the on-going rehabilitation and expansion of the distribution
system.

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Strength The company qualifies personnel who have gained experience and will be committed to the work. These will increase supervision of work and quality will be enhanced. Also, the management team will work as a system in

y Opportunity With few companies in the ECG, the company is in the verge of succeeding, should it get access to capital. The company can also expand to all the regions once the company is widely known as the leading power provider in West Africa.

y Threats Achieving a common goal. Best technological skills acquired will also help introduce more product offerings. The company has a strong research and development team to innovate into the industry and bring out new product to customers. Moreover, the companys website has being update to feature the companys entire range of services.

y Weaknesses The company has a poor public image due to its inability to advertise it product features in all electricity companies in Ghana. The company fined it difficult to acquire huge sum of capital for expansion. Due to financial difficulties, The ECG cannot expand in time. Also, the company depends too much on few key staff for decision making.