TAURON Group’sorganization

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The organization of the TAURON Group should be looked at in the following three contexts:

  • process (business) aspect – based on the process structure that clearly defines responsibilities and how processes are implemented. The advantages stemming from the way of conducting key business processes build value and impact the competitive position of the TAURON Group,
  • line of business aspect – related to the profile of the operations conducted and the place within the Group’s value chain,
  • capital aspect – structure of the formal and legal domination of the Group’s subsidiaries.

Process based organization

Regulations implemented in 2016, along with the Business Model, updated in 2018, introduced the management by processes within the TAURON Group. The process documentation describes the split of competences and repeatable actions performed, operational processes including the descriptions of exchanged products and services. Processes are the superior organization in relation to the organizational structure of individual subsidiaries and run horizontally across the entire TAURON Group.

Based on the main products, the TAURON Group’s processes were divided into three groups: management, operational and support processes.

The chart presented in the figure presents mega-processes identified in the TAURON Group (the highest process level).

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The owners of the mega-processes (the highest process level) are indicated TAURON Polska Energia S.A. directors. The process documentation (maps, diagrams and process sheets) defines and describes decision making powers (competences) and actions to be undertaken by the individual organizational units within the TAURON Group’s various companies. The owners of the mega-processes decompose these into lower level processes and appoint their owners. Each process has its owner and process metrics defined by the higher level process owner. The process documentation defines the course of action (interdependencies) and decision competences for the repeatable processes.

The goal of the process based management model implemented was to benefit from the operating synergies among the TAURON Group’s various companies, share and use best practices, standardize and automate processes, and also to ensure coherence of actions taken within the TAURON Group’s companies to support the implementation of the Strategy.

The essence of the management by processes lies in the continuous search for and implementation of efficiencies along with the clear and transparent division of competences and responsibilities. Processes are modified accordingly to improve their efficiencies. The process documentation is published in the intranet and available to all employees of the Group.

The competences and process interdependencies described in the process documentation supplement the competences stemming from the organizational structure of the individual companies and support the operations of the TAURON Group’s companies as a single entity.

Organization by Lines of Business

The TAURON Group’s operations are implemented based on seven Lines of Business (presented, including the assignment thereof to the individual subsidiaries of the TAURON Group, in the figure): Mining, Generation, Heat, Renewable Energy Sources (RES), Trading, Distribution and Supply.

A Line of Business is a company, several companies or a separate part of a company owned by the TAURON Group, responsible for the implementation of specific tasks related to the Group’s core business. Lines of Business are responsible for implementing the core processes and support at the Line of Business level and they participate in management processes and support processes implemented at the Group level.

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Mining

The most important tasks of the Line of Business include the implementation of plans for the extraction and processing of hard coal and limestone, as well as overhauls and support of devices covering all maintenance operations. The Line of Business prepares long-term and medium-term hard coal and limestone production plans, as well as investment plans for existing and new facilities that are subject to approval at the Group level.

Generation

The most important tasks of the Line of Business include the production of electricity and heat using power plants owned by TAURON Wytwarzanie and maintaining the Group’s production units in an appropriate technical condition (high availability and efficiency rates). The Line of Business participates in the planning of operational activities related to the production of electricity and heat, as well as the activities related to the maintenance of assets, and also performs operational tasks in this respect. In addition to tasks related to operational work and maintenance activities related to the existing generating units, the Line of Business also participates in the works related to the planning and development of new facilities.

Heat

The most important tasks of the Line of Business are focused on heat production and supply planning, heat distribution as well as the implementation of overhaul and maintenance plans for installations owned by the Line of Business. For the heat production and supply planning conducted by the Trading Line of Business, the Heat Line of Business defines the volumes of electricity production in cogeneration carried out by the heat generation sources.

RES

The Line of Business is responsible for electricity production and maintaining production capacity in renewable energy sources. Its most important tasks include the implementation of electricity production plans and the implementation of overhaul and maintenance plans for production installations, as well as the development of its generation units fleet.

Distribution

The responsibility of the Line of Business includes the distribution of electricity, including the grid operations management in the power distribution system, ensuring the ongoing and long-term security of the system’s operation, operation, overhauls and the required expansion of the distribution grid, including connecting new electricity consumers and producers, as well as connections with other power systems. The most important tasks of the Distribution Line of Business include the distribution of electricity in accordance with the grid needs and in order to meet customer needs, while maintaining its reliability, as well as the implementation of plans for overhauls, maintenance and development of the distribution grid.

Supply

The Supply Line of Business is responsible for the development of the customer base and the supply of electricity and other products and services offered by the TAURON Group. The Supply Line of Business, and in particular Customer Service, is the main contact point for customers with the TAURON Group. Its most important tasks include the implementation of electricity and other products supply plans, the development of the customer base as well as sales and service channels, and the development and maintaining good relations with this group of stakeholders.

Trading

The most important tasks of the Trading Line of Business include: planning electricity and heat production, trading in electricity, fuels, CO2 emission allowances and property rights, optimization and management of the trading portfolios, management of the generating units’ operation, preparation of plans for securing and balancing the TAURON Group’s ongoing fuel needs.

Shared Services Centers

Shared Service Centers are separate organizational units responsible for providing a specific range of support services (e.g. accounting, IT, human resources and payroll, customer service, insurance and security) to the Group’s other entities.

Formal and legal organizational structure

As of 31 December 2019, the TAURON Group’s subsidiaries, besides TAURON Polska Energia S.A. parent company, included 32 subsidiaries subject to consolidation.

The TAURON Group’s structure is presented in the figure.

 

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Parent company’s organizational structure

TAURON Polska Energia S.A is the TAURON Group’s parent company, performing the role of the corporate center. The company’s operations are managed by the Management Board within which the competences for managing the business units were split among the President of the Management Board and the Vice Presidents of the Management Board.

The figure below presents the current split of competences within the Management Board of TAURON Polska Energia S.A.

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