1Mart van der Meijden The Netherlands Session 6 - block 2 – Question 9

Barcelona 12-15 May 2003

Question 9: What is the experience so far in altering the organisation of the utility ? Are there any possible pitfalls to keep in mind ?

Mart van der Meijden

Convenor CIGRE Working Group C1-1:

Asset Management of

Transmission and Distribution Systems

2Mart van der Meijden The Netherlands Session 6 - block 2 – Question 9

Barcelona 12-15 May 2003

Pitfalls to keep in mind with Asset Management Organisation

• Increase in bureaucracy• Complex 'service level agreements’• Master Slave Relationship ("us and them"). Not

working together as business partners, but concentrating on their own work and interests.

• Both AM and SP develop self supporting infrastructures, ie inefficiencies and duplication in Finance, HR, IT, Legal etc.

• Fight for scarce resource between AM and SP, eg both feel they must have specialists.

3Mart van der Meijden The Netherlands Session 6 - block 2 – Question 9

Barcelona 12-15 May 2003

Pitfalls to keep in mind with Asset Management Organisation

• Too much implementation at the same time. Too optimistic time schedule. Poor communication.

• Can be viewed as "trendy", ie what you must become if you want to be seen as a leading/world class company - without understanding how your company can realise benefits.

• Can provide a golden opportunity for consultants and lawyers.

• Requires an increase in trust across the organisation but the reverse can occur.