Advisory. Naftogaz of Ukraine. Presentation of the Gas Transmission System Operator Unbundling Roadmap

Transcription

1 Advisory Presentation of the Gas Transmission System Operator Unbundling Roadmap

2 For the past one and a half year, has been conducting numerous projects supporting unbundling process List of projects Name Advisor Time Scope Key outcome 1 Naftogaz Unbundling Project Management 2 Ukrainian Gas TSO Target Operating Model Comprehensive study of Underground Gas Storage Facilities in Ukraine 4 Support in unbundling process implementation EUfunded EUfunded ongoing ongoing To facilitate the efficient and timely unbundling of gas transmission activity of Naftogaz of Ukraine To prepare a business and structural plan and a target operating model based on European best practices To run independent technical review of existing assets and define optimal storages portfolio together with implementation roadmap To support NAK in unbundling process implementation through pilot function optimization and strategic business plan Development of the action plan for TSO extension and separation. Input to the presentation TSO created in Preparation of TOM for the future TSO of Ukrainian GTS Comprehensive study on UGS facilities in Ukraine Strategic Business Plan, investment planning function transferred to TSO ; Action plan for TSO extension and separation 2

3 Unbundling action plan is divided into stages which will allow to reach a final goal formal legal unbundling Unbundling roadmap 1 Storage separation 2 TSO extension and optimization Organizational separation at all levels Adjustment to comply with EU standards Cost and process optimization Formal legal unbundling

4 Separation of Storage is planned to be based on Lvivtransgaz regional branch and includes also flattening of management structure Storage separation plan As-is To-be Services/ other UTG HQ Regional branches Cherkasytransgaz Prykarpattransgaz Kharkivtransgaz Kyivtransgaz Lvivtransgaz Storage Production Units (SPUs) 7 units under regional branches TSO From those branches only LPUs related to storages Main base for Storage 1 st 2 nd rd Flattening structure from - levels to 2- levels Storage based on Lvivtransgaz LvivTG aparat (~220 FTEs) UTG aparat (15-20 FTEs) KyivTG aparat aparat (-4 FTEs) Proletarske SPU Stryi SPU Mryn SPU Bogorod -chany SPU PrikarpatTG aparat (-4 FTEs) KharkivTG aparat (-4 FTEs) Dashava SPU Uhersko RSS Opary SPU 1 st 2 nd SPUs 4

5 Full separation of transmission and storage functions within UTG is planned to be performed till beginning of 2019 Schedule of Storage separation plan (main tasks) I. Storage separation plan 1. Formal decision about Storage creation 2. Selection and transfer of assets, people, procedures, updating IT systems. Construction / reconstruction of measurement points for all storages 4. Creation of necessary Storage functions currently not present in UTG 5. Storage SCADA development and implementation 6. Optimization and effectiveness improvement Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec H1 H2 Storage creation finished

6 Target structure of Storage could be achieved at the beginning of 2019 Concept of storage system operator org structure (Storage ) Lvivtransgaz Storage Initial concept of UTG Technical and operational functions Commercial and business dev. Technical dispatching Fuel and energy resources, energy saving, ecology Metrology (gas measurem ent) Planning and ordering of maintenance and repairs, supervision Technical documentation Autotransport, machine tools, loadlifting equipment Information technology, automation and communication Labour protection Capital construction Commercial dispatching Commercial relations, contracts and customer service, international relations Strategy and development Relationship with the Regulator Support functions Financial functions HR department Legal services Security Materials and technical resources Procurement Property and land Administrative and household support Secret paperwork and mobilization training Finance and Accounting SPUs (all storage SPU s will be transferred to Lvivtransgaz) Proletarske UGSS Mryn UGSS Dashava UGSS Opary UGSS Stryi UGSS Bogorodchany UGSS Uhersko RSS 6

7 Extension plan foresees merger of TSO with Regional es as well as flattening of the management structure from to 2 levels Key assumptions of TSO extension plan As-is To-be Services/ other UTG HQ Regional branches Kharkivtransgaz Prykarpattransgaz Cherkasytransgaz Kyivtransgaz Lvivtransgaz Linear Production Units (LPUs) 5 units under regional branches TSO Base for Storage 1 st 2 nd rd Flattening structure from - levels to 2- levels Reduction in number of LPUs from 5 to Kharkivtran -sgaz ~ 17 FTEs transferred to TSO in October 2018 (pilot project) ~ FTEs transferred to TSO in June 2019 ~ FTEs shall stay in UTG and should act as external service TSO Prykarpattransgaz Kyivtransgaz Cherkasytransgaz LPUs LPUs LPUs LPUs 1 st Regional branches merged with TSO 2 nd LPUs manage technical processe s only 7

8 Pilot Project assumes creation of the new Network Development and Planning Department in TSO and transfer of the function in October 2018 Network Development employees transfer As-Is location of employees involving in network development function 1 Departments that are subject to analysis for FTE s transferring 1 2 UTG HQ 16 FTEs Regional es 140 FTEs Transfer to TSO ~16 FTEs ~121 FTEs TSO Transfer before 18.Oct 2018 Capital Construction Sub- Department Investment Project Sub- Department UTG HQ s departments that are subject to analysis in terms of FTE s transferring to branch TSO LPUs 22 FTEs NA ~17 FTEs Transferred at a later stage 2 Regional es Regional es' departments that are subject to analysis in terms of FTE s transferring to branch TSO The final number of FTEs that will be transferred will be clarified after confirmation of design of to-be processes Department of compressor stations operation Department of gas pipeline operation Capital construction Department Budget office (excl. Kharkiv) 8

9 Creation of fully functional and certifiable extended TSO based on TSO and Regional es is planned to be finished in mid 2019 Schedule of TSO extension plan (main tasks) III. TSO separation plan 1. Formal decision about TSO extension 2. Assets (low value assets, land) 2.1. Selection of assets related to transmission not yet transferred to TSO and subsequent transfer 2.2. Identification and resolving of land plot issues. Organizational structure & people.1. Analysis, approval and development of Extended TSO 2-level org structure.2. Selection and transferring of people, merger of RBs with TSO and merger of LPUs 4. Preparation and/or updating of internal processes and procedures 5. SLAs & internal agreements preparation, acceptance and signing by all sides 6. Selection and transferring of existing contracts to Extended TSO 7. IT systems - selection and transferring of IT related assets to TSO together with Identification of required changes to IT system and implementation 8. Headcount outsourcing SLA with UTG 9. Project Management activities execution Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec H1 H2 TSO extension kick-off TSO extension finished TSO ready for conditional certification mid

10 A new optimized TSO structure will be developed and equipped with all needed functions prior to legal unbundling in 2020 Concept of target TSO structure Target TSO structure assumes that: 2 level structure will be developed All critical functions will be transferred or created within TSO HQ All decisions will be made at TSO FTEs will be mostly optimized Follows EU recommendations on TOM (WECOM) Unbundled TSO structure All critical functions within TSO HQ (centralized) TSO HQ* Regional branches within TSO HQ RSCs (not filias) based on reduced number of LPUs Regional service centers Regional service centers Regional service centers Regional service centers 10

11 Unbundled TSO structure will centralize functions, so far scattered, improving operational efficiency of the entity Target TSO organizational structure according to WECOM s TOM HQ EUfunded Supervisory board Executive body (executive board or CEO) Compliance officer* Corporate secretary* HSEQ Officer Risk management* Internal audit* Corporate communication C Commercial C1 Regulatory management C2 Strategy, business development and internat. relations C Network development and Invest. planning C4 Contracting and customer relations C5 Allocation and commercial balancing TM Transport management TM 1 Dispatching TM2 Metering data management TM Dispatching execution AM Asset management AM 1 Strategic asset management AM 2 Engineering AM Project management AM 4 Inspection and maintenance AM 5 Right of way IT IT 1 IT policy & strategy IT 2 IT operations and projects F Finance F 1 Treasury and cash management F 2 Financial accounting F Management accounting budgeting F4 Economic and financial analysis CS Corporate services CS 1 HR CS 2 Legal services CS Procurement CS 4 Facility and fleet management CS 5 Cyber security AM 6 Technical documentation * Reporting either to the supervisory board or the executive body 11

12 TSO legal unbundling plan assumes TSO readiness for certification in mid-2019, while conditional certification is expected in H Schedule of TSO legal unbundling (main tasks) High-level roadmap work in progress III. TSO legal unbundling 1. Creation of the new company under UTG (NewCo TSO) 2. Transfer of TSO employees to the NewCo TSO. International partner involvement 4. Application for conditional certification 5. Change of ownership of NewCo TSO 6. Transmission assets to NewCo TSO 7. Implementation of conditional certification decision Sep Oct Nov Dec H1 H2 H1 H2 NewCo TSO applies for conditional certification mid 2019 NewCo TSO operational (aligned with TSO extension) Conditional certification H

13 Thank you! Thank you! 12