2007 ANNUAL REPORT Power Corporation - Aboitiz Equity Ventures
2007 ANNUAL REPORT Power Corporation - Aboitiz Equity Ventures 2007 ANNUAL REPORT Power Corporation - Aboitiz Equity Ventures
IN PREPARATION FOR OPEN ACCESS Powering customer service Davao Light has been implementing customer service enhancements long before open access became a buzzword. Its emergency response statistics show that it has surpassed other Asian distribution companies in this aspect. As the power industry heads towards a more competitive environment, utilities are faced with a tougher challenge: more demanding customers who now have the power of choice. Competition forces industry players to become more efficient, to listen to customers’ needs and strive towards service excellence above all. In anticipation of open access and retail competition, significant changes in the supply side of the business had to be made. Since electricity is a generic product, a distribution utility (DU) can only differentiate itself from its competitors by the quality of its product and the delivery of its service. DUs of Aboitiz Power Corporation (AP) have long been preparing for this inevitable but welcome change. They have lined up a range of value propositions designed to meet the customers’ individual preferences. Even as these DUs currently operate as a natural monopoly within their respective franchise areas, efficiency and customer satisfaction remain their top priorities. Leading the way in efficiency and customer service are Davao Light & Power Company, Inc. (DLPC) and Visayan Electric Company, Inc. (VECO). Davao Light has been implementing customer service enhancements long before open access became a buzzword. Its emergency response statistics show that it has surpassed other Asian distribution companies in this aspect. The company has implemented a one-day installation of residential meters as it believes that fast service creates a good and lasting impression to an incoming customer. Its goal is that upon the customer’s return home after submitting his application documents, he sees his house already connected upon nightfall that same day. Davao Light’s call center has also long been in place with representatives trained to handle almost all kinds of complaints, inquiries and requests without having to pass these on to another employee. For easy recall, the utility acquired the telephone number 229-DLPC. The center also uses a Customer Relationship Management System (CRMS) developed in-house to appropriately fit the utility’s unique requirements. The company takes its call center service a step further by informing customers in advance of scheduled power interruptions. Representatives also call back customers upon resolution of their complaints to ensure and confirm that they are satisfied with the service DLPC had provided. 38 • ABOITIZ POWER CORPORATION ANNUAL REPORT 2007
Gone are the long queues at VECO’s full-service center at the SM City (at left) and in Talisay. To ensure uninterrupted service to hospitals, water service providers, airport, city hall and other government offices, military and police institutions, DLPC has a 54.7-MW standby power plant. On a sustained basis, it can generate 40 MW and serve 17% of DLPC’s peak demand of 235 MW. To minimize or totally eliminate service interruptions during maintenance or load transfers, DLPC has a 33 MVA mobile substation to either replace substations that need to undergo prolonged maintenance or act as backup should one of its substations need repair. For its part, VECO is unceasing in its search for new ways to serve its customers better. In the first quarter of 2007, the company, together with UnionBank and Bancnet Philippines launched its online payment system. Customers can either pay their electric bill online through Internet banking or via Automated Teller Machines. In October 2007, VECO opened its Talisay full-service center for customers in the southern part of Cebu. Modeled after the first fullservice center in SM City Cebu, the new one-stop shop facility provides a complete range of services from collection, payment arrangements, complaints handling, application processing and metering services. Gone are the long queues with eight tellers now handling customers’ concerns simultaneously. In May 2008, the company made a major move as it transferred the frontliners of its Line Services Department (LSD) based in the company’s corporate headquarters in Banilad to the SM mall. The LSD receives and processes power applications for above eight kilowatts per month consumption. The transfer makes the department more accessible to customers and adds another service to the SM center. The company also has a dedicated team assigned to handle the needs of “strategic” customers, those with a kilowatt-hour demand of 500 kilowatts and above. The Key Accounts and Retail Supply Department under the Utility Economics Group, is tasked to keep strategic customers satisfied in order to attract, retain and/or recover them, once open access and retail competition are in place. Formerly known as the Power Marketing and Sales Department, the group was created in 1999 in anticipation of open access as mandated by the EPIRA. To address this challenge, Key Accounts representatives take extra care of the needs of these strategic customers and make monthly visits offering value-added services such as thermal scanning, IV scanning, load logging and transformer testings. In terms of customer service, VECO’s service level statistics have improved by leaps and bounds. Its emergency response times are now at par with those of Davao Light. The same goes for meter installations. Its same-day and one-day meter installation statistics are at the same high level as Davao Light. The goal of Aboitiz Power companies is to achieve consistency in efficiency and customer service delivery for all its customers and ultimately be the utility of choice once open access and full competition are in place. In October 2007, VECO opened its Talisay fullservice center for customers in the southern part of Cebu, modeled after the first one in SM Cebu. ABOITIZ POWER CORPORATION ANNUAL REPORT 2007 • 39
- Page 1 and 2: Power Corporation Powering New Fron
- Page 3 and 4: P o w e r i n g New Frontiers ABOIT
- Page 5 and 6: FINANCIAL SUMMARY For the Year (In
- Page 7 and 8: R E P O R T T O O U R S T O C K H O
- Page 9 and 10: h Powering New Frontiers With deman
- Page 11 and 12: Results of Operations POWER D I S T
- Page 13 and 14: R E S U L T S O F O P E R A T I O N
- Page 15 and 16: A SFELAPCO crew does live line work
- Page 17 and 18: Results of Operations POWER G E N E
- Page 19 and 20: POWER G E N E R A T I O N Hedcor si
- Page 21 and 22: STEAG State Power Inc. (SPI) contri
- Page 23 and 24: We expect our distribution companie
- Page 25 and 26: The strong and stable financial per
- Page 27 and 28: DIRECTORS SPECIAL AND REGULAR BOARD
- Page 29 and 30: Director and Senior Executive Compe
- Page 31 and 32: The Office of the Chief Compliance
- Page 33 and 34: Employee Relations In AP, people ar
- Page 35 and 36: P o w e r i n g New Frontiers F E A
- Page 37 and 38: The rest of its capacity is traded
- Page 39: The annual energy requirement will
- Page 43 and 44: The three utilities aim to provide
- Page 45 and 46: CPPC, meanwhile, is situated on a 1
- Page 47 and 48: and reliable supply of electricity.
- Page 49 and 50: The fulfillment of sharing the frui
- Page 51 and 52: Board of Directors Jon Ramon M. Abo
- Page 53: Corporate Officers Benjamin A. Cari
IN PREPARATION FOR OPEN ACCESS<br />
<strong>Power</strong>ing customer service<br />
Davao Light<br />
has been<br />
implementing<br />
customer service<br />
enhancements<br />
long before open<br />
access became<br />
a buzzword.<br />
Its emergency<br />
response<br />
statistics show<br />
that it has<br />
surpassed other<br />
Asian distribution<br />
companies in this<br />
aspect.<br />
As the power industry heads towards a more competitive<br />
environment, utilities are faced with a tougher challenge:<br />
more demanding customers who now have the power of<br />
choice. Competition forces industry players to become more<br />
efficient, to listen to customers’ needs and strive towards<br />
service excellence above all.<br />
In anticipation of open access and retail competition,<br />
significant changes in the supply side of the business had to<br />
be made.<br />
Since electricity is a generic product, a distribution utility<br />
(DU) can only differentiate itself from its competitors by the<br />
quality of its product and the delivery of its service.<br />
DUs of <strong>Aboitiz</strong> <strong>Power</strong> <strong>Corporation</strong> (AP) have long been<br />
preparing for this inevitable but welcome change. They<br />
have lined up a range of value propositions designed to<br />
meet the customers’ individual preferences. Even as<br />
these DUs currently operate as a natural monopoly within<br />
their respective franchise areas, efficiency and customer<br />
satisfaction remain their top priorities.<br />
Leading the way in efficiency and customer service are<br />
Davao Light & <strong>Power</strong> Company, Inc. (DLPC) and Visayan<br />
Electric Company, Inc. (VECO).<br />
Davao Light has been implementing customer service<br />
enhancements long before open access became a buzzword.<br />
Its emergency response statistics show that it has surpassed<br />
other Asian distribution companies in this aspect.<br />
The company has implemented a one-day installation of<br />
residential meters as it believes that fast service creates a<br />
good and lasting impression to an incoming customer. Its goal<br />
is that upon the customer’s return home after submitting his<br />
application documents, he sees his house already connected<br />
upon nightfall that same day.<br />
Davao Light’s call center has also long been in place with<br />
representatives trained to handle almost all kinds of complaints,<br />
inquiries and requests without having to pass these on to another<br />
employee. For easy recall, the utility acquired the telephone<br />
number 229-DLPC. The center also uses a Customer Relationship<br />
Management System (CRMS) developed in-house to appropriately<br />
fit the utility’s unique requirements.<br />
The company takes its call center service a step further<br />
by informing customers in advance of scheduled power<br />
interruptions. Representatives also call back customers upon<br />
resolution of their complaints to ensure and confirm that they are<br />
satisfied with the service DLPC had provided.<br />
38 • ABOITIZ POWER CORPORATION <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2007</strong>
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