1.

TAURON Group 1.1. Letter from the CEO

In implementing our business goals under the TAURON Group’s corporate strategy, we do not disregard

sustainable development and corporate social responsibility. For years we have been focusing on them, and this is substantiated by numerous projects carried out by Group companies. Dear Stakeholders, As one of the largest energy holdings in Central and Eastern Europe and one of the biggest employers in Poland, the TAURON Group is aware of our significant environmental impact. The range and scale of our activity on the energy market is best reflected in figures. In 2014 alone we produced 15.4 TWh of electricity and supplied heat to 700 thousand households. The length of our distribution grids transmitting energy to over 5.4 million of our customers, exceeds 260 thousand km. Coal mines belonging to the TAURON Group control almost 20 percent of domestic hard coal reserves with our output in 2014 of 5.4 million tonnes of coal. Year by year we are generating more and more energy from renewable sources – biomass, wind and water. In 2014 we generated over 1.79 TWh from these sources, exceeding the 10 percent target of RES share in electric energy production adopted in the Sustainability Strategy. All these results delivered by our day-to-day work and the commitment of over 25 thousand employees make us the largest electricity distributor, its second producer and supplier and, consequently, an important link in ensuring national energy security. In implementing our business goals under the TAURON Group’s corporate strategy, we do not disregard sustainable development and corporate social responsibility. For years we have been focusing on them, and this is substantiated by numerous projects carried out by Group companies. Those initiatives have diverse nature and are addressed to various groups of stakeholders – mainly customers, employees, local communities. Activities aimed at environmental impact mitigation play a significant role in the area of sustainable development, including, inter alia, emission abatement, rational management of resources or electric energy and heat saving. Our objectives set out in the 2012 Sustainability Strategy act as the measure of our progress. Within the third social report of the TAURON Group we communicated the accomplishment of 70 percent of our strategic

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obligations. At the moment, i.e. a year after the last publication, we can confirm that we have accomplished 90 percent of our plan. 2015 will be the year of updating our Sustainability Strategy since the horizon of its original version comprised years 2012-2015. The main objectives of the document modification will be to adjust its content to the Corporate Strategy of the TAURON Group for 2014-2017 with an outlook until 2023, updated in June 2014 and to analyse new challenges we face in the environment in a longer-term perspective. In this scope, the environmental aspects will be particularly significant and demanding, resulting from decisions made at a European Union level in the area of the energy and climate policy. The opinion of the environment is of key importance for us, since it determines the directions we should follow. Due to this fact – as in the previous year – we have engaged a wide group of stakeholders in the process of selecting the issues to be included in the report. Over 4.6 thousand clients and employees responded to our invitation to the dialogue. However, we have not limited our consultations to these two groups. We have also involved, inter alia, representatives of local governments, universities, social and consumer organisations in our discussions. Consequently, we present you the Sustainability Report containing those subjects which were indicated by the stakeholders as issues of key importance. Each aspect discussed in the text is supported by specific initiatives implemented by companies of the TAURON Group. Owing to such approach, we can prove that better results – as compared to the previous year – represent the effort of practices implemented in reality. For example – the implementation of the electronic Customer Service Office, modernisation of Customer Service Centres, training of employees dealing with customers produced effective results. Among others, owing to these activities, the satisfaction indicator among individual clients in relation to TAURON customer service increased to 81 percent (in 2013 it reached 78 percent ) On the other hand, the implemented health and safety procedures and training courses caused the decline in the frequency of accidents in the TAURON Group by 30 percent year-on-year, whereas the modernisation and development of distribution grids resulted in shortening the duration of a power outage during the year by over 100 minutes (year-on-year) and reducing energy losses during distribution. You may read about all results achieved by the TAURON Group in 2014 in this Sustainability Report. It is our third consecutive publication. While creating the document, as in the previous year, we have applied the best international G4 reporting standards issued by Global Reporting Initiative (GRI). In order to confirm the reliability and accuracy of the data presented herein, we submitted the text of the report to external verification. I kindly invite you to read the third 2014 Sustainability Report published by the TAURON Group. We believe that, like our previous reports, it will be warmly received.

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Dariusz Lubera President of the Management Board TAURON Polska Energia

1.2. TAURON Group – as compared to other companies in the sector 1.2.1. Introduction Nowadays we cannot imagine living without electricity. It is omnipresent 365 days a year. When plugging in a TV-set or a washing machine almost nobody thinks how many people and processes stand behind making electricity available to all of us at the flip of a switch. Figures describing our holding are the best illustration of this fact. The TAURON Capital Group is the largest distributor

Over 25 thousand people are employed in the

and supplier of electricity in Poland. We supply it to

Group’s structures. Thousands of additional jobs

almost 5.4 million customers. At the same time, we

provided by our suppliers and subcontractors

are the second largest producer in Poland and the

should be added to this number. All these data

largest heat supplier in Upper Silesia. TAURON

reflect our extensive environmental impact. With

comprises not only power plants and combined

this awareness, we carry out numerous activities

heat and power plants but also hard coal mines

unrelated to our core business that are not

controlling approximately 20% of coal reserves. In

measured by profit, but by the number of smiles on

recent years we have stepped up the production of

people’s faces.

energy from renewable sources, i.e. wind, water and biomass.

1.2.2. Who we are The TAURON Group, as one of the largest economic operators in Poland and Central and Eastern Europe belonging to the top energy holdings, operates in all areas of the energy market – from coal mining, through generation, distribution and sales of electricity and heat, to customer service. The holding also conducts, on a smaller scale, wholesale sales of fuels and derivatives (coal and biomass trading). In 2014 TAURON also entered the market of gas fuel trading, consequently extending its product offering.

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In Poland the TAURON Group is one of the key entities in the power sector. It is also an important link in the chain providing continuity of energy supplies and national energy security. This is perfectly illustrated by figures characterising individual Group companies. In 2014 coal production from two coal mines in

and institutions were heated with heat supplied by

TAURON Wydobycie was 5.4 million tonnes, and

TAURON Ciepło.

power plants of TAURON Wytwarzanie generated 12.96 TWh of electricity, including 0.74 TWh from biomass. In 2014 TAURON Ekoenergia produced 0.75 TWh of energy originating from water and wind. The distribution grids of TAURON Dystrybucja cover five regions – Małopolska, Opole, Silesia, Lower Silesia and Podkarpacie, jointly comprising almost one fifth of Poland’s landmass (27.1 thousand km2). Through those grids, electricity reaches almost 5 million households and almost 500 thousand business clients (including 60 strategic customers) served in Poland by TAURON Sprzedaż. In 2014 the combined heat and power plants in TAURON Ciepło supplied heat and hot water to inhabitants of Silesia, Zagłębie and Małopolska. In total, over 700 thousand houses

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All the above facts make the TAURON Group the second biggest electricity supplier in Poland and its largest distributor. In 2014, grids belonging to TAURON transmitted 47.9 TWh of energy and retail sales reached 38.6 TWh.The generation assets of the TAURON Group are mostly located in southwestern Poland where customer service centres of TAURON Obsługa Klienta also operate. Exceptions located outside the area of distribution activity include wind farms that, due to weather conditions, are situated in the northern part of the country, and the Stalowa Wola power plant where a new CCGT unit is under construction. The head office of TAURON Polska Energia, as the parent company, is located in Katowice at 3, Ks. Piotra Ściegiennego street.

LOCATION OF TAURON GROUP’S KEY ASSETS

TAURON in figures – Net revenues on sales – PLN 18.4 billion – EBITDA – PLN 3.6 billion – CAPEX – PLN 3 billion – Net profit – PLN 1.18 billion – 25 thousand employees – 56 customer service centres – 5.4 million customers

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1.2.4. Vision and mission of the organisation Mission of the TAURON Group:

Vision of the TAURON Group:

To ensure energy supply for our customers based

To be one of the leading energy companies in the

on best practices that guarantee an increase of

region.

shareholder value.

1.2.5. Management and corporate governance The model of the TAURON Group structure is based on functioning of one leading company in each Business Area, which allows for optimisation of operations within each element of value chain.

The parent entity, TAURON Polska Energia, was established on 6 December 2006. As at 31 December 2014, key companies of the TAURON Group, besides the parent company, included 14 subsidiaries covered by consolidation. Moreover, the company holds, directly or indirectly, shares in other 44 companies.

Significant changes in the structure

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In 2014, the consecutive processes aimed at streamlining the organizational structure took place in the TAURON Group. The most important events included: 

reorganisation of RES Area companies – merger of MEGAWAT MARSZEWO and BELS INVESTMENT companies with TAURON Ekoenergia,



the next stage of Heat Area development in the TAURON Group from TAURON Wytwarzanie – separation of ZEC Bielsko-Biała, which was subsequently incorporated into TAURON Ciepło structures, and incorporation of Enpower service company,



separation of ZW Nowa from TAURON Ciepło and Elektrownia Blachownia from TAURON Wytwarzanie, which, together with the separated assets of ArcelorMittal contributed to the formation of TAMEH POLSKA company aimed at setting up the entity (TAMEH HOLDING) implementing investment and operational tasks in the scope of industrial power engineering,



No.

separation of wind farms from TAURON Ekoenergia to Marselwind company,

Company name

Core business area

Share of TAURON in

Included in

Included in the

the company capital

the annual

sustainability

and governing

report for

report for 2014

2014 1.

TAURON

Hard coal mining

100,00%

YES

YES

Generation, transmission

100,00%

YES

YES

100,00%

YES

YES

Wydobycie 2.

3. 4.

TAURON

Wytwarzanie

and distribution of

electricity and heat

TAURON

Electricity generation and

EKOENERGIA*

trade in electricity

TAURON

Distribution of electricity

99,71%

YES

YES

Services

99,71%

YES

YES

Services

99,71%

YES

YES

Dystrybucja 5.

TAURON

Dystrybucja Serwis**

6.

TAURON Dystrybucja Pomiary**

7.

TAURON Sprzedaż

Trade in electricity

100,00%

YES

YES

8.

TAURON Sprzedaż

Trade in electricity

100,00%

YES

YES

7

GZE

9.

TAURON Czech

Trade in electricity

100,00%

YES

NO

Energy 10.

TAURON Ciepło***

Production and distribution 100,00%

YES

YES

11.

TAURON Obsługa

Services

100,00%

YES

YES

12.

KW Czatkowice

Mining, crushing and

100,00%

YES

YES

Klienta

of heat

grinding of limestone rocks and stone extraction

13.

PEPKH w

Trade in electricity

100,00%

YES

NO

14.

TAURON Sweden

Services

100,00%

YES

NO

likwidacji**** Energy

*On 2 January 2014 the merger of TAURON EKOENERGIA and MEGAWAT MARSZEWO and BELS INVESTMENT companies was registered. **The share in TAURON Dystrybucja Serwis and TAURON Dystrybucja Pomiary is held by TAURON indirectly, through the subsidiary,TAURON Dystrybucja. In addition, TAURON is the user of shares/stocks held by TAURON Dystrybucja. ***On 30 April 2014 the merger of Enpower Service and TAURON Ciepło companies took place. At the same time, change of the acquiring company name to „TAURON Ciepło sp. z o.o.” took place. ****On 2 July 2014 PEPKH company was put into liquidation.

Management Board of the TAURON Group and Supervisory Board As at 31 December 2014, the Management Board of the parent entity of the TAURON Group, TAURON Polska Energia, consisted of the following persons: 

Dariusz Lubera – President of the Board.



Aleksander Grad – Vice-President of the Management Board for Corporate Affairs.



Katarzyna Rozenfeld – Vice-President of the Management Board for Commercial Affairs.



Stanisław Tokarski – Vice-President of the Management Board for Strategy and Development.



Krzysztof Zawadzki – Vice-President of the Board for Economics and Finance.

Biographies of individual members of the Management Board are available on the website (link).

The composition of the Supervisory Board was as follows:

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

Antoni Tajduś – Chairman of the Supervisory Board.



Agnieszka Woś – Vice-Chairman of the Supervisory Board.



Jacek Szyke – Secretary of the Supervisory Board.



Andrzej Gorgol – Member of the Supervisory Board.



Maciej Koński – Member of the Supervisory Board.



Leszek Koziorowski – Member of the Supervisory Board.



Michał Michalewski – Member of the Supervisory Board.



Marek Ściążko – Member of the Supervisory Board.



Maciej Tybura – Member of the Supervisory Board.

Biographies of individual members of the Supervisory Board are available on the website (link).

1.2.6. TAURON at the Stock Exchange TAURON Polska Energia is a joint stock company listed at the Warsaw Stock Exchange as of 30 June 2010.

As at the last day of 2014, the main shareholders of the company included: State Treasury holding 526 848 384 of TAURON Polska Energia shares, constituting 30.06 percent in the Company capital), KGHM Polska Miedź holding 182 110 566 of TAURON Polska Energia shares, constituting 10.39 percent in the Company capital, and ING Otwarty Fundusz Emerytalny – 88 742 929 TAURON Polska Energia shares, constituting 5.06

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percent in the Company capital. The remaining part of shares (54.49) is held by individual and institutional investors. Share quotations

Best practice – TAURON Polska Energia – Presence in the RESPECT Index list In 2014, for the second consecutive time, TAURON

management standards in terms of corporate

was included in the RESPECT Index specification.

governance, information governance and investor

This initiative is aimed at selecting companies

relations, as

managed in a responsible and sustainable manner.

environmental protection, social and employee

Consequently, each portfolio of the index includes

well as

in

areas

comprising

issues.

listed companies acting in accordance with the best

1.2.7. Membership in organisations Sharing knowledge and access to the latest information is the development foundation of each organisation. Consequently, we are trying to be present wherever any events important for the sector take place.

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Owing to the participation of our experts in various organisations, chambers and trade associations we acquire knowledge at a source and take part in the opinion-forming processes. On the other hand, we share our own experience and Best practices, which is reflected in the development and improvement of the entire energy sector performance. TAURON Polska Energia 

supporting member of the Polish Electricity Association;



member of the Chamber of Commerce for Energy and Environmental Protection;



supporting member of the Polish Higher Education-Business Forum;



supporting member of the Polish Member Committee of the World Energy Council;



supporting member of Central Europe Energy Partners;



supporting member of the Polish Association of Listed Companies (SEG);



associate member of the European Federation of Energy Traders.

TAURON Wytwarzanie

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

member of the Association of Polish Inventors and Rationalizers;



supporting member of the Chamber of Commerce for Energy and Environmental Protection;



supporting member of the Economic Society Polish Power Plants;



member of the Polish Ecology Chamber;



member of the Chamber of Commerce and Industry in Katowice;



member of the Association of Polish Electrical Engineers, Coal Basin Branch;



supporting member of VGB;



member of the Polish ISO 14000-INEM Poland forum;



member of the Polish ISO 9000 forum;



member of the Accountants Association in Poland;



member of the European Patent Institute ;



member of the Polish Electricity Association through TAURON Polska Energia;



member of the Polish Society of Professional Power Plants;



member of the Club of Technical Thought in Wielkopolska;



member of the Polish Testing Laboratories POLLAB.

TAURON Ekoenergia 

supporting member with sponsor status of the Polish Wind Energy Association;



supporting member of the Society for the Development of Small Hydroelectric Plants;



supporting member of the Society of Hydroelectric Plants;



supporting member of the Association of Polish Electrical Engineers, Jelenia Góra Branch.

KW Czatkowice 

ordinary member of the Polish Association of Aggregates Producers.

TAURON Wydobycie 

member of the Association of Coal Mining Employers in Katowice;



member of the Polish Ecology Chamber;



member of the Association of Polish Electrical Engineers;



member of the Mining Chamber of Industry and Commerce;



member of Professor Wacław Cybulski „Safe Mining” Foundation;



supporting member of the Association: Polish Committee of the World Mining Congress;



founder of the Foundation of Miner Families.

TAURON Ciepło

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

member of the Polish Society of Professional Combined Heat and Power Plants;



members of the Association of Combined Heat and Power Plant Employers;



member of the Polish Quality and Management Association POLISOLAB;



member of the Regional Chamber of Industry and Commerce in Tychy;



member of the Polish Accreditation Centre;



member of the Polish Union of Combustion By-products.

TAURON Dystrybucja 

supporting member of the Polish Society of Electricity Transmission and Distribution;



supporting member of the Association of Polish Electrical Engineers.

TAURON Sprzedaż 

supporting member of the Society of Energy Trading.

TAURON Obsługa Klienta 

supporting member of the Society of Energy Trading.

TAURON is also the co-author and signatory of the „Polish business sustainability 2050 vision”, the document defining the challenges of sustainable development significant from business perspective.

1.2.8. Awards and prizes in the reporting period We are happy that our work is appreciated, therefore we receive each information on awards granted to us with great satisfaction. Many such happy moments happened in the TAURON Group in 2014. What is worth stressing, Group companies have been recognised for their activities in various areas – business, culture, sport and social responsibility, confirming the holistic approach taken by the TAURON Group to the environment. All these distinctions make us proud but also motivate us to continue further intensive work and defend our award-winning position. In 2014 . TAURON Group received a number of awards and distinctions. Here are the main ones : February 2014 10th issue of the ranking „The most interesting of the best implemented IT projects” Award recipient: TAURON Polska Energia, TAURON Obsługa Klienta Distinction awarded by the Editor’s Office of „Nowy Przemysł” Economic Monthly and the wnp.pl portal to TAURON Polska Energia for the ability to carry out several big and complicated projects, inter alia,

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implementation of a management system for grid assets and creation of the Shared Services Centre. On the other hand, TAURON Obsługa Klienta was recognised for implementation of the national central billing system.

April 2014 Forbes Diamonds 2014 Award recipient: TAURON Polska Energia, TAURON Dystrybucja, TAURON Sprzedaż TAURON Polska Energia was one of the best companies in Silesia. The corporate website was also recognised by the jury, receiving e-Diament Forbes&Biznes.pl for transparent navigation among large corporations in Silesia. Regional awards were granted to TAURON Dystrybucja and TAURON Sprzedaż (1st place and distinction, respectively, in the category of enterprises with revenues exceeding PLN 250 million)

Responsible Companies Ranking 2014 Award recipient: Grupa TAURON TAURON was promoted to the top 20 Polish socially responsible companies. In the oil and energy sector it was ranked at a high third position.

May 2014 “Puls Biznesu”daily’s Pillars of the Polish Economy Award recipient: TAURON Polska Energia The company was ranked second among the top companies in Silesia by the jury comprising representatives of local authorities.

„Polityka” weekly Golden Leaf of CSR 2014 Award recipient: Grupa TAURON

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Having received the CSR Golden Leaf, TAURON was one of the top 14 companies ranked based on the questionnaire containing questions on business integrity, human rights, customer care and environmental protection. In the oil and energy sector, it was ranked third.

June 2014 Hero of the Capital Market 2014 Award recipient: TAURON Polska Energia Investors voting in the plebiscite organised by the Association of Individual Investors appreciated the quality of TAURON’s investor communication, openness to individual investors and high standards.

Patron of Free Poland Sport Award recipient: TAURON Polska Energia During the celebrations of the 25th anniversary of free Poland, in the plebiscite organised by „Przegląd Sportowy” daily, people and institutions that contributed to the development and promotion of Polish sports were honoured. TAURON Polska Energia received the title of Patron of Free Poland Sport for its overall activities supporting national sport, including, inter alia, support extended to Tour de Pologne, Polish basketball – TAURON Basket Liga, and sponsoring the Polish Olympic Committee.

October 2014 New Impulse 2014 Award recipient: TAURON Polska Energia „New Impulse 2014″ is an award dedicated to companies, institutions and persons contributing new quality to the Polish economy and the oil and energy sector, indicating prevailing trends and setting directions of positive change. TAURON Polska Energia received a distinction for commencing implementation of the 910 MW hard coal-fired unit construction at the Jaworzno III Power Plant. The awards are granted by the jury comprising the Editor’s Office of „Nowy Przemysł” Economic Monthly and the wnp.pl portal.

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The Best Annual Report 2013 Award recipient: Grupa TAURON In the annual competition organised by the Institute of Accounting and Taxes the Annual Report of the TAURON Group for 2013 received the main award. The online publication was recognised by the jury for its content and graphic design.

December 2014 2013 Social Reports Award recipient: Grupa TAURON The 2013 Sustainability Report of the TAURON Group was the only one among the 31 publications registered in the competition to receive two awards – the Award from Internet Users and Distinction for the bold use of the Internet. The competition has been organised by the Forum of Responsible Business, PwC and SGS since 2007.

RESPECT Index 2014 Award recipient: Grupa TAURON For the second consecutive time TAURON was included in the prestigious index of socially responsible companies. In the 8th issue of the RESPECT Index project, organised by the Warsaw Stock Exchange, 24 entities managed in a responsible and sustainable manner were recognised.

1.2.9. Key events of 2014 January 

Merger of TAURON Ekoenergia with MEGAWAT MARSZEWO and BELS INVESTMENT companies.



Separation of ZEC Bielsko-Biała from TAURON Wytwarzanie and transfer of its assets to TAURON Ciepło.

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February 

Change of name of Południowy Koncern Węglowy to TAURON Wydobycie.

March 

Appointment of the TAURON Management Board of the 4th shared term.



Signing the agreement with Polskie Inwestycje Rozwojowe to finance the construction of the 413 MWe power unit at the Łagisza Power Plant (TAURON Wytwarzanie).



Publication of the annual financial results of TAURON Group.



Concluding an agreement for the intervention cold reserve by TAURON Wytwarzanie with PSE, to comprise two units of Siersza Power Plant and one unit of Stalowa Wola Power Plant.



Ground-breaking ceremony at ZW Tychy (TAURON Ciepło) for the construction of the heating unit with a capacity of 50MWe and 86 MWt.

April 

Concluding an agreement between TAURON Wytwarzanie and the consortium of RAFAKO MOSTOSTAL for the construction of the power unit with 910 MWe capacity, for supercritical parameters at Elektrownia Jaworzno III (Power Plant II).

May 

Commencement of the deepening of the "Janina VI" shaft in TAURON Wydobycie, under the project on Increasing the production capacity of TAURON Wydobycie through the construction of the 800 m level.

June 

Adopting the updated Corporate Strategy of TAURON Group for 2014-2017 with an outlook until 2023.



Signing the letter of intent by TAURON, ENEA, ENERGA and PGE, concerning cooperation in research, development and innovation as well as joint implementation of research and development projects.

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July 

Concluding a consortium agreement between TAURON and 22 institutions, including 18 universities, 2 institutes and 2 enterprises, establishing the Motorway of Technology and Innovation Institute.



Approval of the tariff for natural high-methane gas for TAURON Sprzedaż by the ERO President.



Concluding the credit agreement by TAURON and the European Investment Bank (EIB), worth PLN 295 million, for the implementation of investments in renewable energy and energy distribution.

August 

Concluding the partnership agreement by TAURON Wytwarzanie and TAURON Ciepło and companies of the ArcelorMittal Group, concerning the establishment of a joint venture for the implementation of an industrial power engineering project (TAMEH POLSKA).

September 

Concluding the agreement by PGE, TAURON, ENEA, KGHM concerning the implementation of a joint project to build the first Polish nuclear power plant with a capacity of approximately 3 thousand MWe.



Commencement of a project to implement the smart metering system in Wrocław by TAURON Dystrybucja (Wrocław Smart City)



Launch of construction of a power unit with a capacity of 910 MWe at Jaworzno III Power Plant (Power Plant II).

October 

TAURON Sprzedaż wins group tenders for gas supply to public institutions in Lublin, Poznań and Grudziądz.

November

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

Signing agreement by TAURON EKOENERGIA for the construction of Stage II of Marszewo Wind Farm, with a capacity of 18 MW.



Handing over the construction site of the power unit of 910 MWe capacity at Jaworzno III Power Plant (Power Plant II) by TAURON Wytwarzanie.



Completing the investment project aimed at extending the life cycle of the plant by Kopalnia Wapienia Czatkowice.

December 

Issue of fifteen-year registered bonds worth EUR 168,000 thousand on the German market by TAURON Sweden Energy.



Completing the heating network modernisation by TAURON Ciepło for the following municipalities: Dąbrowa Górnicza, Sosnowiec, Będzin and Czeladź.

1.3. TAURON Group value chain 1.3.1. Value chain The TAURON Group is the largest distributor, second largest energy supplier and producer in Poland. Our power lines of 261 thousand km cover 57 thousand km2, representing more than 18 percent of Poland’s landmass. As a result, we supply electricity in five regions:

also the largest supplier of heat in Upper Silesia and

Lower Silesia, Opole, Silesia, Małopolska and

one of the largest heat suppliers in Poland.

Podkarpacie. We sell energy to customers in the whole country. In 2014 we produced a total of 13 TWh of electricity distributed to almost 5,4 million customers. Coal is our main energy source just as in Poland’s energy mix. TAURON Group consists of two coal mines controlling approx. 20 percent of domestic coal reserves. We also produce MWh from renewables (biomass, wind and water). Their share in electricity production in 2014 for the first time exceeded 10 percent. In addition, TAURON is

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In 2014 thermal power stations and boiler plants belonging to the Group produced 9,1 PJ of thermal energy which warmed 700 thousand of households and institutions in Silesia and Dąbrowa. In order to meet customers’ expectations, TAURON offers numerous and varied products and services. Information relating to our offer may be obtained from TAURON’s employees via email, post, phone or by visiting one of the 56 customer service points.

Our efforts in customer care deliver results. In 2014 more than 81 percent of customers were satisfied with our customer service.

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1.3.2. Description of key companies of TAURON Group TAURON Obsługa Klienta Year by year we enhance our service standards. In 2014, 81 percent of TAURON individual clients expressed their satisfaction from the service we provide. 5.4 million of our customers associate the company mainly with modern Customer Service Centres located in the centres of cities and towns dispersed over our distribution area. This is where our customers may meet professionally trained consultants ready to offer their advice and support. In the era of digitisation and mobility we also operate the info line and the comprehensive Internet customer service system – e-BOK which enables to deal with all issues without leaving home. However, not everybody knows that TAURON Obsługa Klienta also provides services to internal clients within the TAURON Group, i.e. to other companies. Consequently, within four Shared Services Centres, TAURON Obsługa Klienta offers the following services: 

Financial and accounting services (Centre of Shared Accounting Services),



ICT and IT (Centres of Shared IT Services),



HR and payroll services (Centre of Shared HR Services),



External customer service (Shared Services Centres: Customer Service).

TAURON Sprzedaż We are the second largest electricity supplier in the country. In 2014, retail sales of electricity reached 38.6 TWh. TAURON Sprzedaż, as its name indicates, is the company dealing with electricity supply. This service is provided all over Poland. As a result of approval of the first tariff for gas fuel trading by the President of the Energy Regulatory Office in July 2014, the company has also entered the gas market. TAURON Sprzedaż is also responsible for preparing the product offer to satisfy the expectations of even most demanding clients. The company is the mine of ideas and the result of its activities are the advertising campaigns recognised all over Poland.

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TAURON Dystrybucja We are the largest electricity distributor in the country. Our distribution grids are 260 thousand km long, covering the area corresponding to 18.3 percent of the country territory. Before electricity reaches a socket it must cover a long way from the power plant to the destination. TAURON Dystrybucja is in charge of this stage, managing 260 thousand km of power lines conducted by underground cables and overhead grids. The distribution area of the company comprises five regions of south-western Poland – Lower Silesia, Opole, Silesia, Małopolska and Podkarpacie. The whole staff of TAURON Dystrybucja cares for ensuring safe electricity supply, in adequate quantities, to all TAURON customers, at any time, day and night, whether on a hot summer day or on a freezing, windy winter evening.

TAURON Wytwarzanie We are the second largest electricity producer in the country. In 2014, we generated 13 TWh of electricity, i.e. more than 8 percent of the domestic energy output. The heart of the TAURON’s Generation Area comprises six coal-fired power plants with 4.5 GW of electric capacity and 1.3 GW of heat capacity. Besides coal, biomass, coking gas and high-methane gas are also used. Our generation units meet strict environmental protection requirements. Moreover, TAURON Wytwarzanie is running a number of research and development projects to enhance the long-term efficiency of processes and minimise the power plant’s environmental impact.

TAURON Ciepło We are the largest heat supplier in Upper Silesia and one of the largest in Poland. In 2014 we produced 9.1 PJ of heat. Besides supplying our customers with electricity, we also heat their flats and supply hot water. As in power plants, the company’s heat generation units meet national and EU environmental requirements. New units burning only biomass are also commissioned. In 2014, our four combined heat and power plants produced 9.1 PJ of heat supplied to our consumers, inter alia, through the company’s 1050 km long heat grids.

22

TAURON Ekoenergia The company is in charge of managing wind and hydro power generation units. In 2014, as a result, 0.75 TWh of „green” energy was transmitted through the power grids. Nature offers great inherent potential; therefore, we are trying to use hydro and wind energy to a greater extent. In 2014, TAURON Ekoenergia included 35 hydroelectric power plants and 4 wind farms*. These units are not only environmentally-friendly but also historically attractive since some of them are over 100 years old. 

In accordance with the Regulation of 3 November 2014 the wind assets of TAURON Ekoenergia (FW Lipniki, FW Marszewo, FW Wicko and FW Zagórze) will be spun off to the existing Marselwind company with its registered office in Katowice. Work on this spin-off and negotiations with investors concerning the disposal of shares are in progress.

Kopalnia Wapienia Czatkowice All year long our products eliminate emissions of 140 million m3 of sulphur dioxide into the atmosphere. At first glance, this limestone mine would appear to have little to do with electricity production. However, using lime, energy generated in coal-fired power plants is cleaner. Products from Czatkowice have also been applied in the metallurgical industry, construction, and even in the sugar industry. In 2014 a new deposit was commissioned to facilitate constant supply of sorbents and aggregate until at least 2060.

TAURON Wydobycie Hard coal reserves in the Group’s two coal mines account for 20% of the domestic coal reserves The company mines, prepares and sells coal from two coal mines – Zakład Górniczy „Janina” and Zakład Górniczy „Sobieski”. In 2014 TAURON Wydobycie produced 5.4 million tonnes, with 72 percent used by the TAURON Group and the remaining 28 percent sold to external customers. Valuable coal deposits are accessed in compliance with the highest Health & Safety standards and applying modern technologies. The company also pays great attention to waste management. The generated mining waste, subject to the appropriate treatment processes, is used, inter alia, in the construction of roads and motorways as well as for the reinforcement of flood embankments.

23

Within their core activities TAURON Group companies cooperate with thousands of suppliers (mostly domestic), providing employment to tens of thousand people. The nature of cooperation is diverse and aligned to the specific character of a given company. In 2014, in the Procurement Organisation Support System, the number of potential TAURON Group vendors (i.e. those participating in procurement procedures organised by Group companies) exceeded 4.6 thousand. More on the procurement policy of TAURON Group can be read on (link).

1.4. Our stakeholders 1.4.1. Stakeholders – an important voice Being such a large organisation, operating in five regions and employing over 25 thousand people and, simultaneously, representing an important entity for the national power sector and economy, TAURON has numerous groups of stakeholders. Their diversity and general characteristics are presented in the

stakeholder map. The biggest groups

include customers, employees and shareholders. In order to respond to their various expectations as well as possible, TAURON Group endeavours to engage its stakeholders at various stages. These activities are implemented on a central level and by individual Group companies. For each important investment we conduct consultations with local communities to identify their position, discuss any doubts and answer their questions. It has also become our tradition to engage stakeholders in the preparation of TAURON Group Sustainability Report. When writing this year’s report, over 4,6 thousand customers and employees took part in an online questionnaire defining the issues. Such a huge number of responses received, in the second consecutive year (last year almost 3,700 people participated) confirms that our stakeholders are willing to take an active part in various aspects of TAURON’s operations. On the other hand, from the point of view of TAURON Group, the feedback received allows us to adjust the report’s scope to environmental expectations. This practice will certainly be repeated next year.

24

Best Practice – TAURON Wytwarzanie – Conference for local business and local authorities in connection with a new investment launch In June 2014, representatives of the TAURON

Among others, the schedule of the works and the

Group and Rafako met local entrepreneurs and local

scope of works to be conducted at Elektrownia

authorities in Jaworzno, in order to discuss the

Jaworzno III was presented to participants of the

benefits of construction of the coal-fired unit with a

conference. Organisers also created an opportunity

capacity of 910 MW at Elektrownia Jaworzno III for

to exchange contacts between local companies and

the region, and a possibility of local business

the general contractor. During the implementation

participation in the investment. In accordance with

of the contract in Jaworzno, the Rafako-Mostostal

the experience of TAURON Wytwarzanie arising

consortium

from the implementation of earlier investments,

approximately 50 subcontractors. The conference

inter alia, the construction of the 460 MW unit at

was organised by the TAURON Group with

Elektrownia Łagisza, local companies play a

participation of Rafako and in cooperation with

significant role in these projects. The estimates

Jaworzno Chamber of Commerce.

plans

the

employment

of

show that during the peak of the works covered by the major contract about three thousand people will work at the site.

Best Practice – TAURON Polska Energia – Individual Investor’s Day Several dozen individual investors visited Tauron

in particular, the biomass unit with a capacity of 50

during the Individual Investor’s Day organised in

MW commissioned in 2013 and the pilot carbon

October 2014. The Individual Investor’s Day was

capture and storage installation (CCS).

organised in cooperation with the Association of Individual Investors and under the patronage of the Civic

Shareholding

programme.

During

the

presentation, investors were introduced to the updated strategy of the TAURON Group and the financial results generated in the first half of 2014. Following the presentation session, participants asked questions concerning the activities of the Group and then visited the Jaworzno III power plant,

25

During the site visit the participants also had an opportunity to see a presentation concerning the Group’s biggest investment project, i.e. the construction of the 910 MW coal-fired unit at Elektrownia Jaworzno III. This time participants of the Individual Investor’s Day also included students of economics, law, finance as well as students of technical universities taking part in the next issue of the Energy Academy project launched by Lesław A.

Paga Foundation. Its main objective is to help young

the energy sector as well as to facilitate entering

people acquire knowledge from top specialists of

the labour market in this sector.

1.4.2. Stakeholders Map

Stakeholder Group

Detailed specification Key information

Main tools of dialogue

Clients

Individual,business

TAURON Group and individual companies’

4 million clients;

websites over 500 thousand business

Social media

60 strategic clients, including,

„Polska Energia” magazine

clients

inter alia, ArcelorMittal Poland, TOYOTA MOTOR

MANUFACTURING POLAND Sp. z o.o., Górażdże Cement, ISD Huta Częstochowa, ZGH Bolesław, TELE-FONIKA KABLE S.A.,

Stalprodukt S.A., Jastrzębska

Spółka Węglowa S.A., Katowicki Holding Węglowy and Grupa Saint Gobain.

Questionnaires Opinion surveys Open Days in companies of TAURON Group

Social consultations (inter alia, within planning of new investments)

Workshops, seminars (inter alia, sales workshops for business clients)

In meetings (e.g. within the social campaign „If you don’t know, don’t open”) Shareholders

TAURON Polska Energia is a joint stock company listed at the

Warsaw Stock Exchange (as of

2010). Main shareholders: State

Treasury (30.06%), KGHM Polska Miedź (10.39%) and ING Otwarty Fundusz Emerytalny (5.06%). Remaining part of shares

(54.49%) – institutional and individual investors

26

Roadshows Conferences presenting financial results „Polska Energia” magazine Meetings, inter alia, during the Individual Investor’s Day

TAURON Group and individual companies’ websites

Annual report

Banks/financial institutions

Ministries

inter alia, PKO BP;

Conferences presenting financial results

ING Bank Śląski;

TAURON Group and individual companies’

BNP Paribas;

Annual report

Citi Handlowy.

„Polska Energia” magazine

Ministry of Treasury

Trade conferences/seminars

Ministry of Environment;

„Polska Energia” magazine

Ministry of Economy

Working groups

websites

TAURON Group and individual companies’ websites

Annual report

Controller

Energy Regulatory Office (Urząd Regulacji Energetyki)

Training courses/workshops Trade conferences TAURON Group and individual companies’ websites

Annual report „Polska Energia” magazine

Employees

over 25 thousand people

employed in Group companies;

Questionnaires Social media Satisfaction surveys Internet portal – Tauronet Training courses/workshops Discussion panels TAURON Group and individual companies’ websites „Polska Energia” and „Nasze Forum” magazines

Environment

Suppliers and

subcontractors

hundreds of companies

Social consultations (inter alia, within

companies as well as conducting

TAURON Group and individual companies’

cooperating with Group

ad hoc cooperation, inter alia,

planning of new investments)

websites under the implementation of new „Polska Energia” magazine investment projects Non-governmental organisations

27

inter alia, SIEMACHA Association, DKMS Polska Foundation,

Iskierka Foundation, Responsible Business Forum Association. local and national

Trade conferences/seminars

authorities

TAURON Group and individual companies’ websites

„Polska Energia” magazine

representatives of

authorities and public utilities

regional offices marshal offices;

Interviews

city halls;

Discussion panels

municipal social welfare centres;

Workshops/discussion groups

consumer advocates

TAURON Group and individual companies’ websites

„Polska Energia” magazine

local community

inhabitants living in the

neighbourhood of TAURON Group assets;

local communities

Social consultations (inter alia, within planning of new investments) Questionnaires TAURON Group and individual companies’ websites

universities

universities with whom

agreements on cooperation were signed (Silesia University of Technology, University of

Economics in Katowice) and

those with whom research and

development projects are carried

Trade conferences/seminars Workshops Lectures for students TAURON Group and individual companies’ websites

out, inter alia, AGH University of Science and Technology in

Kraków, University of Technology in Częstochowa schools

inter alia, schools participating in projects organised by Group

companies (inter alia „The room

educational meetings (e.g. under the „TAURON Fuses” project)

Open Days in companies of TAURON of nature – TAURON Ekoenergia”, Group „TAURON Fuses”) and schools TAURON Group and individual companies’ were classes under TAURON

websites

inter alia, Institute of Mechanised

Workshops/seminars

patronage function scientific institutes

Construction and Rock Mining, Road and Bridge Research Institute

28

Scientific institutes TAURON Group and individual companies’ websites

media

national and local

Press Conferences Press releases Discussion panels TAURON Group and individual companies’ websites

Social media „Polska Energia” magazine

trade associations

Polish and foreign, inter alia

Trade conferences

Polish Committee of Electric

Discussion panels

Chamber of Commerce for

Working groups

Energy

Energy and Environmental Protection;

Polish Power Transmission and

TAURON Group and individual companies’

Association of Energy Trading.

„Polska Energia” magazine

Distribution Association;

websites

Central Europe Energy Partners

associations of stock exchange investors

Individual Investors’ Association

Discussion panels Trade conferences TAURON Group and individual companies’ websites

„Polska Energia” magazine

employer

associations

Employers of the Republic of Poland

Social consultations Discussion panels Working groups TAURON Group and individual companies’ websites

„Polska Energia” magazine

consumer

associations

Consumer Federation

Discussion panels Trade conferences TAURON Group and individual companies’ websites

„Polska Energia” magazine

competition

29

utilities

Trade conferences/seminars

Working groups TAURON Group and individual companies’ websites

„Polska Energia” magazine

1.4.3. Key issues for stakeholders In dialogue with our stakeholders we have identified the most important issues - from their point of view. They

are for the most part consistent with the expectations of internal stakeholders. Importantly, many aspects essential for stakeholders of TAURON Group overlap with the objectives we have set out in the Sustainability Strategy. Consequently, we know that the directions we have taken in formulating the strategic document were justified. The following problems were included among the issues of key importance for stakeholders: 

standards for ensuring the quality and security of energy supplies (security of the distribution grid) and initiatives taken for the stability of supplies,



investment fostering increasing customers’ access to energy supplies (grid development, connection processes, investment in power grid),



ethics in marketing, marketing communication, ethical standards in communication



offer transparency and responsible sales process (access to information concerning products and services, understandable sales language, clear bill / invoice, etc.),



solutions for vulnerable groups (access for individual groups depending on the needs, offer diversification, tailored solutions for less affluent consumers, the elderly, single parents, etc.),



customer service standards, complaint service system, consumer service,



projects affecting energy efficiency in distribution (grid modernisation, improvement of distribution grid quality, sustainable energy, etc.),



sustainable supply chain (considering the CSR issue in the selection of suppliers, duration of payment periods, cooperation with suppliers based on dialogue, involvement in initiatives),



environmental management strategy, environmental management systems and risk management – a comprehensive integrated approach to the company for the analysis of the environmental impact at

30

each stage of the company activity (adopted policies, strategies, norms, standards, setting environment goals), 

investment for environmental protection, financing of research projects, in the scope of the possibility to mitigate the adverse environmental impact, investment fostering an increase in the share of energy from renewable sources,



emissions into the atmosphere (type and quantities of emitted substances – measurements, targets),



education on environmental protection (education of consumers, local communities where the company operates) and engaging clients, consumers in environmental protection (e.g. encouraging to use e-invoices, etc.),



terms and conditions of employment and remuneration (Transparent system of remuneration and benefits, working time control, flexible employment forms),



Health & Safety and occupational safety,



education and employee development at various levels – building of employee competence, training,



equal opportunities at a workplace; diversity management policy, family-friendly company and worklife balance,



supporting local community, development of good neighbourhood policy; measures at a level of individual companies,

2.



strategic cooperation with social partners, cooperation with the governmental and local administration,



activities of TAURON Foundation,



sponsoring of the cultural and sport activity.

Sustainable development according to TAURON Group 2.1. Ethics and risk management 2.1.1. Corporate values of the Group

Corporate values of TAURON Group are common for all employees, irrespective of their years in service, position or function.

31

They include: Openness – means

Responsibility – mak

Professionalism – m

Cohesion – for us

that TAURON Group

es

eans

means

introduces

perform

changes

each

of our

us daily

and

transparency reliability

of

the

awareness

of

and

tasks so that we can

decisions and tasks

building

innovation

in

be proud of decisions

taken by us, aimed

common value of

response

to

made

at

TAURON

theneeds

and

and

implemented.

tasks

continuous

enhancement

expectations of its

working

environment.

and quality.

of

standards

a

single,

Group understood by its

external

environment

as

understood by us. These values are known to each employee and they are included in the Code of Business Ethics of TAURON Group. The Code of Ethics defines rules according to which each employee of TAURON Group should act in relation to his/her co-workers and the environment of the company. It is the basic tool used for the implementation of the consistent corporate culture based on business ethics rules and corporate values. In case of identifying the behaviour which is not compliant with the provisions of the Code, the employee is bound to report any suspicions to his/her supervisor or to the Ethics Commission. The role of the Ethics Commission, operating in each company, is to initiate the investigation proceedings and to resolve the issue. Reports may be also submitted to the Ethics Commission anonymously – e.g., using the main box located in the company. Figure. The path for reporting of violations

32

Members of management boards of companies and the managers are bound to promote ethical attitudes and behaviours at a workplace through the daily implementation of the Code of Ethics assumptions. Each employee of TAURON Group is obliged to get acquainted with the provisions of the Code of Ethics. Moreover, on TAURON Group intranet, in the „For the employee” section, the „Ethics and values” tab is found, where all necessary information and the diagram of the violation reporting procedure is published.

Best practice – TAURON Dystrybucja, TAURON Dystrybucja Serwis, TAURON Dystrybucja Pomiary – on Tauronet about the ethics Having in mind the applicable provisions of the

The objective of the policy is to create a working

labour law as well as the necessity to protect

environment free from mobbing and discrimination,

employees’ interests and ensure a good and

i.e. environmentally fostering the building of

effective

TAURON

positive relations among employees, irrespective of

Dystrybucja, TAURON Dystrybucja Serwis and

their jobs and positions. This document binds

TAURON Dystrybucja Pomiary, the „Policy of

employees to apply the principle of respecting the

Counteracting Mobbing and Discrimination” has

dignity and personal rights of other people in

been introduced. On Tauronet in the „For the

mutual relations.

working

atmosphere,

in

employee/ Ethics and values” section the „Antimobbing and Anti-discrimination Policy” tab was established, where the full text of the document is published. Best practice – TAURON Dystrybucja – E-learning training “Ethics at work” In order to consolidate information on company

without computer access, participated in classroom

values and the Code of Business Ethics and

training courses delivered by HR department staff.

acquaint employees with the Anti-mobbing and Anti-discrimination Policy, as well as present these issues through examples, in June 2014 the following

companies,

namely:

TAURON

Dystrybucja, TAURON Dystrybucja Serwis and TAURON Dystrybucja Pomiary launched a series of training courses entitled „Ethics at work”. The elearning course was mandatory, while employees

33

These lectures enabled us to consolidate employee knowledge on these topics and raise awareness concerning

undesirable

behaviours

in

the

workplace. The e-learning training is still available for employees and made available to newly employed persons. The e-learning training is still available for employees and made available to

newly employed persons. The e-learning training is still available for employees and made available to newly employed persons.

2.1.2. Risk management In rapidly changing times active risk management is a key element of organisation performance. In TAURON Group this process is particularly important in implementing corporate strategy goals. Risk management in TAURON is based on three pillars:

enterprise risk

commercial risk

financial and credit risk

management

management

management

Risk management is supported by the implemented enterprise risk management system (ERM) comprising all the elements of the value chain. All employees participate in the risk management process. ERM is based on documentary application: Enterprise Risk Management Policy in TAURON Group, Portfolio Management Policy in the commercial activity in the TAURON Group, Risk Management Policy in the commercial activity in TAURON Group and Credit Risk Management Policy in TAURON Group. Within the risk management process the Risk Committee plays a special role as a team of experts that permanently and continuously initiates, analyses, monitors, controls, supports and supervises the performance of the corporate risk management system in TAURON Group. The Risk Committee comprises persons with relevant knowledge on the company and its environment. Its role is to define the Group’s risk management standards and supervise the effectiveness of this process. Within the Risk Committee two separate teams have been established – one for commercial risk and one for financial and credit risk. In turn, the Risk Department in TAURON Polska Energia discharges operational functions in the risk management process. In 2014, the risk management process was updated in regulatory terms and in relation to the approach to risk identification and valuation, as well as reporting methods. At the same time, the process of controlling risk acceptance was centralised.

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2.2. Subsection: Sustainability strategy 2.2.1. TAURON Group sustainability strategy In order to harmonise activity in corporate social responsibility and sustainable development and plan the road we would like to follow, the TAURON Group 2012-2015 Sustainability Strategy with an outlook to 2020 was developed in 2012. This document was designed in such a way so as to support and supplement the business goals defined in the corporate strategy, while taking into consideration key sustainability areas, i.e. society, natural environment and the economy. Challenges defined in the strategy are divided into two directions: primary and secondary

Primary directions 

Ensuring energy supply security. TAURON Group, as a leading energy group, emphasises in its mission the need to ensure energy supply for its customers. Thus, energy supply security is a key priority for TAURON Group. In order to ensure efficient access to electricity and heat TAURON invests in new generation capacity and modernises the existing assets.



Customer orientation. Taking care of the customer and ensuring customer satisfaction is one of the main goals of the activities undertaken by TAURON Polska Energia, TAURON Ciepło, TAURON

35

Dystrybucja, TAURON Sprzedaż and TAURON Obsługa Klienta. Retaining existing customers and acquiring new ones is possible as a result of carrying out many projects that involve professional and friendly service and tailoring the offer to diverse customer needs. Furthermore, TAURON Group focuses on educational activities related to the functioning of the electricity market, energy efficiency and safe use of electricity and its infrastructure. Initiatives planned as part of this strategic direction will be related to successive implementation of new customer service standards and channels as well as significant technological solutions. Secondary directions 

Engaging the workforce in organisational growth. Employees are a key element of the organisation’s operations, a driver of corporate value and effectiveness in its growth. This is why TAURON Group is doing its best to take care of its employees’ development, satisfaction and safety. TAURON Group’s ambition is to build an effective organisation whose integral part is its coherent organisational culture based on business ethics and corporate values. Taking into account on-going demographic and legislative changes as well as changes to technologies and the related staff needs, managing workforce age and knowledge is becoming a priority while simultaneously maintaining diversity.



Environmental protection across the value chain. TTAURON Group’s operations across the value chain affect the natural environment. Taking into consideration contemporary environmental protection challenges related to climate changes, the depletion of natural resources and excessive environmental pollution, TAURON Group is effectively minimising its environmental impact. Implementation of these plans will be supported by environmental management systems as well as by developing and implementing efficient technologies. Additionally, educational activities for suppliers and customers that also affect the environment as part of their operations are planned.



Managing economic and social impact. TAURON Group is an economic agent with a significant impact on the social and economic activities of selected regions. Therefore, the company is doing its best to build partnership relations with the representatives of local communities, administration, the regulator and suppliers in order to achieve goals held in common. The objective of TAURON Group is to create opportunities for cooperation and develop understanding for mutual relationships and interdependencies with individual stakeholder groups. TAURON undertakes efforts aimed at maximizing the positive economic and social impact it has on stakeholders and effectively informing them of the magnitude of this impact. An important task is to structure social engagement activities to enable it to respond more effectively to the needs of TAURON Group’s stakeholders.

36

Our motto of sustainability The leading motto of TAURON Group in sustainable development is „Our energy – your security”. In this context, we consider security to be a multi-dimensional issue, as the security of our customers’ supply, security of their data, security of our employees and quite simply, energy security. We strive to ensure the coherence of all initiatives we undertake with this message.

2.2.2. Strategy management The implementation of the Sustainability Strategy is controlled by an entire team of people chaired by the Steering Committee consisting of the CEO of TAURON Polska Energia and the Vice-President of of TAURON Polska Energia responsible for Corporate Affairs. Selected department directors are also engaged in monitoring implementation of the strategic objectives in the Executive Committee, a body that is also responsible for the verification of strategic directions and objectives. Executive Committee members also keep on-going contacts with Sustainability Coordinators operating in each of the areas of the TAURON Group’s activities. Figure. Management structure of TAURON Group sustainability strategy

Due to the approaching final validity date of the Sustainability Strategy, in TAURON Group preparations to updating of the development are in progress. The updated text will enable us to adjust the new strategic goals to the current sustainability challenges and, at the same time, it will be adapted to the Group’s business strategy updated in June 2014.

37

2.2.3. Summary of strategy implementation Holding the strategic document not only streamlines activities in corporate social responsibility but also enables

us to review and define the current stage of our progress in accomplishing the goals by setting goals and performance measures. Last year, in connection with the publication of the TAURON Group 2013 Sustainability Report, we performed a mid-term review of strategy implementation. The findings show that as at the end of H1 2014 we accomplished over 70 percent of the goals adopted in 2012 and we are on a good path to attain the next goals. In this year’s report we also present the level of strategic goals’ accomplishment as at the end of 2014. As compared to the previous year, we have made a step forward, having fulfilled more obligations. Consequently, we have accomplished 90 percent of our goals. This means that in 2015 we will update the Sustainability Strategy and check our goals. Ensuring energy supply security Strategic direction

Goals

Progress

Activities implemented a) TAURON Polska Energia signed a credit agreement

with the European Investment Bank (EIB) for PLN 295 million (approximately EUR 71 million) for the

implementation of investments in renewable energy and energy distribution.b) In 2014 the Contract

Engineer and General Contractor were selected for the second stage of Marszewo wind farm We undertake to provide Ensuring energy supply security

access to electricity and heat to our customers using diversified generation

capacity, including RES.

construction, with a capacity of 18 MW. Construction work is in progress. Project comple

c) In March 2014, TAURON and Polskie Inwestycje

Rozwojowe (PIR) signed a preliminary memorandum of understanding concerning financing of the

construction of a 413 MW CCGT unit at Elektrownia Łagisza. In April 2014 a connection agreement with the Gas Transmission System Operator, GAZ-

SYSTEM S.A. was signed. (GAZ-SYSTEM) and in

November 2014 a call for tender was announced to

select the contractor for the CCGT unit at the Łagisza Power Plant.

a) In 2014 the capital expenditures to build new

connections and modernise and replace the existing Ensuring energy supply safety

38

We are improving energy

infrastructure were PLN 1.6 billion;b) We have

and heat supply process

distribution in relation to the previous year (in 2014 –

efficiency of the electricity

reduced energy losses in transmission and 5.31 %)

c) We are implementing smart metering systems for our clients. TAURON Dystrybucja installed 40 thousand meters. The Smart City Wrocław project was also launched (installation of 330 thousand meters).

d) We carry out the project on „A single distribution”, aimed at establishing a single organisation adjusted to the requirements of custo

Customer orientation Strategic direction

Goal Goals

accomplishment progress

Activities implemented

Comment

a) 76percent of individual clients declared their satisfaction with cooperation with TAURON (survey results of TAURON

Obsługa Klienta conducted by TNS Polska, end of 2014). The loyalty indicator hit a

record level of 83percent.b) We centralised

Customer

By 2015 at least

billing systems for mass clients. Accordingly,

customers

customer service centre.

relationship with

c) We modernised 26 stationary customer

75percent of

customers may receive service in any

orientation satisfied with their TAURON Group

service centres. The facilities are equipped with modern communication and

organisational solutions improving the quality and speed of service.

d) We are improving complaint handling procedures.

a) In 2014 TAURON joined the national Customer

We undertake to

ensure security of

orientation customer interests

educational and information campaign of

the Association of Energy Trading „Check who your energy supplier is” to warn

customers against unfair market practices.b) We organise workshops for consumer

advocates popularising sector knowledge.

Customer

We shall

a) We have launched another stage of the

educational

information campaign – „Switch on at

implement

„TAURON Fuses” educational and

programmes

work”. The initiative is addressed to

available to all

employees of construction and renovation

which they will be

energy saving was conducted, during which

orientation customers due to able to use of

electricity and

heat in a more

39

companies.b) The educational campaign on customers were educated on rational electricity consumption.

Lack of implementation of sub-goal 2.2.1.

„Introduction of the

vulnerable customer service system” – Lack of national regulations

prevents undertaking the relevant measures.

efficient and safer

c) In 2014 we conducted an educational

way.

programme addressed to customers and inhabitants of Katowice, Chorzów,

Siemianowice Śl. „Hot water -reliably and safely”. In it, conferences for customers

were organised and a series of meetings for inhabitants to present opportunities and

benefits from using systemic heat to heat hot water. We improve the Customer orientation

quality of

a) In 2014 we reduced the frequency in

heat supplies

average duration.b) The satisfaction

through upgrading

indicator concerning handling failures and

electricity and

energy supplies interruptions and their

and expanding the

power outages has also increased.

grid

a) Modernised customer service centres

By 2015

have been betted adapted to servicing the

customer Customer

orientation

elderly and the disabled – ramps, spacious

communication

waiting rooms, queuing systems.b)

channels will be

Employees of TAURON Obsługa Klienta

tailored to the

attend classes of English in order to provide

disadvantaged

service to foreign language speaking

customers’ needs

customers.

Engaging the workforce in organizational growth Strategic direction

Goals

Goal

accomplishment

Activities implemented

progress

a) Each employee of TAURON Group get acquainted with the text of the Code of

Ethics.b) Introducing mandatory e-learning Engaging the workforce in

organisational growth

By 2015 all TAURON Group

training courses on „Ethics at Work” in

get involved in achieving business

Dystrybucja Serwis and TAURON Dystrybucja

personnel will be aware of how to goals while adhering to the

companies: TAURON Dystrybucja, TAURON Pomiary.

organisation’s ethical values. c) On Tauronet – the intranet portal of

TAURON Group, a special section devoted to ethics and the Code of Ethics can be found.

a) In 2014, each employee of TAURON Group Engaging the

All employees will be able to raise

organisational

improve their skills in line with

workforce in growth

40

their professional qualifications and TAURON Group’s expansion.

received 17 training hours on average.b) We are running a „Talent Management

Programme” and „Leader’s Academy”, as well as training courses for new employees facilitating workplace orientation.

c) We offer benefits to employees upgrading their professional qualifications. a) Within Tauronet – the Group’s intranet, Engaging the workforce in

organisational growth

new functionalities facilitating teamwork are

We will provide personnel

introduced.b) We carry out a programme

conditions for sharing knowledge

aimed at knowledge management in the

and experience in order to improve

organisation – „Academy of Internal Trainers”.

the organisation’s operational efficiency.

c) We carry out a project on professional retraining of employees.

a) In 2014 the number of accidents in

Engaging the

We undertake to seek and

workforce in

implement innovative solutions

growth

for all our personnel

organisational

TAURON Group diminished by 30percent in relation to 2013.b) Members of the mining

that ensure occupational safety

rescue team of TAURON Wydobycie became world

Environment protection throughout the value chain Strategic

Goals

direction

Goal

accomplishment progress

Activities implemented a) In 2014 the net production of electricity was 15.37 TWh, including 1.79

Environment

By 2020 at least

throughout

capacity will come from

chain

sources

protection the value

10percent of installed renewable energy

TWh from renewable sources (11.6% of

our total electricity production, i.e. almost 30% more than in the previous year).

b) TAURON Group has 20 biomass co-

fired units and three dedicated biomassfired units. This reduced emissions by 871 thousand tonnes of CO2.

a) Construction of the flue gas de-

nitrification installation in six units of Environment protection

throughout the value chain

We will reduce the air pollution level by

investing in modern technologies and

upgrading existing

generation units and

enhancing productivity

Elektrownia Jaworzno III and four units of Elektrownia Łaziska.b) Generating units

of TAURON Group emitted over 4 million CO2 less than a year ago.

c) In 2014 in TAURON Group SO2

emissions were reduced by almost

30percent, NOx – by 26percent, and particulate matter – by 20percent in relation to 2013.

41

Comment

We will actively manage Environment protection

throughout the value chain

the TAURON Group

subsidiaries’ operations to minimize their

environmental impact, using the best

a) We have maintained the certification of environmental management systems in TAURON Wytwarzanie

plants.b) Environmental Protection Departments operate in individual companies, supervising their

environmental impact and implementing

standards and

measures to mitigate this impact;

environmental

management systems

internal audits are performed to assess compliance (including TAURON Ciepło).

The process of creating structures improving the

management of companies’

operations in

environmental

protection is ongoing.

a) In TAURON Wydobycie installations Developing, by 2020, Environment

the economic potential

throughout

90percent of own

chain

mining and generation

protection the value

capable of utilizing waste by the segments

we produced over a million tonnes of aggregates from waste gangue.

b) Companies of TAURON Group carry out the Grey2Green project based on

joint waste management generated by

Group companies and generation of the

maximum possible amount of disposable products.

Managing the social and economic impact on stakeholders Strategic

Goals

direction

Goal

accomplishment

Activities implemented

progress a) Companies of TAURON Group and the TAURON Foundation carry out numerous projects for the environment – Houses of Positive Energy,

Managing the

We will engage stakeholders in

economic

enhancing TAURON Group’s

social and

impact on

stakeholders

joint activities aimed at

positive social and economic impact

TAURON fuses, cooperation with GOPR (Voluntary Mountain Rescue Service).

b) In 2014 TAURON became a patron of sports

activities conducted by SIEMACHA Association. As a result of the agreement, several big sport projects were implemented, with participation of several dozen thousand children and teenagers.

a) In 2014 the TAURON Foundation provided the Managing the social and economic

impact on

stakeholders

We ensure transparency of prosocial activities by compiling the rules of their performance and evaluating effectiveness

financial support (including subsidies) at a level of

PLN 3,049,389, i.e. by over a million more than in the previous year.

b) We implement pro-social activities based on defined rules.

Managing the social and economic

42

We will cooperate with suppliers

a) In 2014 KPIs were developed and defined, based

transparent rules, taking into

2015.

and contractors based on account social and

on which the Group is implementing its goals as of

impact on

environmental criteria as well as

b) Through centralisation of procurement processes

stakeholders

human rights

significant financial and organisational effects in consolidated proceedings have been achieved. c) Due to the „Heroes Overnight” action organised by the TAURON Foundation and the DKMS Polska

Foundation, the number of potential bone marrow donors in the base has significantly increased. a) As the first company in Poland we invest in

research on Carbon Capture and Storage (CCS technology) in two mobile stations.

b) In cooperation with our scientific partners we Managing the

We will expand partnership

economic

centres aimed at advancing

social and

impact on

stakeholders

relationships with academic energy technologies and

educating future personnel

carry out projects on abatement of environmental emission of hazardous substances, e.g. mercury. c) TAURON Group concludes framework

agreements with universities (including universities of technology) which open new opportunities for research and development cooperation.

d) TAURON is a party to a agreement signed among the largest electric utilities concerning cooperation in research and development projects. a) We published the third TAURON Group Sustainability Report. Managing the social and economic

impact on

stakeholders

We will regularly communicate results of our engagement in

non-financial issues to our top groups of stakeholders

b) For the second consecutive time we belong to the index of socially responsible companies – RESPECT Index.

c) We have received the CSR Golden Leaf conferred by the „Polityka” weekly.

3.

Information on the report 3.1. About the report

TAURON Group’s 2014 Sustainability Report is the Group’s third annual social report. The information presented herein refers to the period from 1 January to 31 December 2014 (unless otherwise indicated in the text). The scope and range of the report has not changed

year’s publication, rather only those generating 98

significantly versus 2013. As before, not all

percent of the Group’s income such as: TAURON

TAURON Group companies are included in this

Polska Energia, TAURON Wydobycie, TAURON

43

Wytwarzanie, Ekoenergia,

TAURON TAURON

Ciepło,

Dystrybucja,

TAURON

descriptions of the issues flagged by our

TAURON

stakeholders as being the most important.

Dystrybucja Serwis, TAURON Dystrybucja Pomiary, TAURON Sprzedaż, TAURON Sprzedaż GZE, TAURON Obsługa Klienta and Kopalnia Wapienia Czatkowice, that are also included in the financial statements.

Consequently,

the

data

and

information concerning the entire value chain can be found in this publication. Consequently, readers may track in detail the characteristics of TAURON Group’s operations and their environmental impact. The report coincides with the TAURON Group’s operations and related to its partners and suppliers. No content changes were made to last year’s report. Minor corrections referred to the incorrect linking of Excel tables. As compared to the previous year, the report’s structure has slightly changed. In the TAURON Group’s 2013 report we answered questions posed by our stakeholders during dialogue. This publication also contains extensive

Maintaining the high reporting level while drafting the report, we have again applied our best standards. This year’s report was also prepared based on international Global Reporting Initiative standards – GRI G4 (compliance level “basic”). Moreover, as in the previous year, engaging stakeholders in the process of developing the content, we relied on the AA 1000SES standard. Last year’s report of the TAURON Group – the first fully-online report in Poland – was very positively received by our stakeholders. Confirmation is given by the awards we received in the national contest entitled Social Reports 2014. We were the only company to receive two awards: „Award of Internet Users” and „Distinction for the bold use of the Internet”. We believe that this year’s publication will be warmly received by our stakeholders and readers.

3.2. Defining report content 3.2.1. Description The topics discussed in this year’s report are not incidental. The decision on including specific issues was preceded by a several-stage analysis performed in cooperation with SGS Polska, advisory consulting company. In the process of defining the report’s assumptions, we analysed the significance of issues from the point of view of the TAURON Group’s environment and organisation. The detailed analysis included a review of trends in the sector in Poland and worldwide as well as various forms of dialogue with external and internal stakeholders.

44

The scale of our dialogue with the environment is certainly worthy of attention. As in the previous year, we engaged our customers and employees in the development process of the report. Our questionnaire containing questions concerning the selection of issues to be included in the report, was answered by 4,617 customers and employees within less than two weeks. The questionnaire entailed other forms of dialogue with the environment, i.e. a discussion panel and individual interviews. Their participants included representatives from TAURON Group environment, inter alia, trade organisations, MOPS (municipal social welfare centres), social partners, universities and consumer associations. Under dialogue inside the organisation, a workshop with managers of the TAURON Group companies was held, focusing on the selection and significance of areas important to the company, during which the provisions of the TAURON Group’s Sustainability Strategy were also taken into account. As a result of analysis, the report structure is slightly different from last year. It is more closely aligned to stakeholder expectations. However, the publication once again includes information on accomplishing the goals defined in the TAURON Group’s Sustainability Strategy. The comprehensiveness and accuracy of selection and presentation of issues ultimately included in the report is confirmed by obtaining the GRI certification – Materiality Matters Check. Ultimately, in this year’s Report, we recognised 65 indicators, including 33 profile indicators, 13 sector indicators and 19 indicators attributed to individual aspects.

3.2.2. Significance of issues for and outside the organisation The analysis of significance conducted in accordance with the GRI G4 guidelines resulted in a list of topics subsequently mapped on the matrix, followed by selection of topics defined as important (4) and very important (5) on a five-point scale, from the point of view of the environment and the company. Significance matrix of issues, indicating the most important topics

45

Workplace

Environment

Market

Society

In the table below we present the list of topics whose numbers correspond to those included in the significance matrix.

No.

Issue

Weight for

the Group’s environment

1 2 3 4 5 6

46

Standards for ensuring the quality and security of energy supplies (security of the

Weight for

TAURON Group

5

5

5

4

4

4

5

5

diversification, tailored solutions for less affluent consumers, the elderly, single parents,

5

4

Customer service standards, complaint service system, consumer service

4

4

distribution grid) and initiatives taken for the stability of supplies

Investment fostering increasing customers’ access to energy supplies (grid development, connection processes, investment in power grid)

Ethics in marketing, marketing communication, ethical standards in communication Transparency and responsible sales process (access to information concerning products and services, understandable sales language, clear bill/invoice,etc.)

Solutions for vulnerable groups (access for individual groups depending on the needs, offer etc.)

9

Projects affecting energy efficiency in distribution (grid modernisation, improvement of

4

4

4

4

4

5

5

5

4

5

4

5

5

5

5

5

5

4

5

5

4

5

42 Activities of TAURON Foundation

4

4

43 Sponsoring of the cultural and sport activity

4

4

distribution grid quality, sustainable energy, etc.) Sustainable supply chain (considering the CSR issue in the selection of suppliers, duration

10 of payment periods, cooperation with suppliers based on dialogue, involvement in initiatives)

Environmental management strategy, environmental management systems and risk 12

management – a comprehensive integrated approach to the company for the analysis of the environmental impact at each stage of the company activity (adopted policies, strategies, norms, standards, setting environment goals)

Investment for environmental protection, financing of research projects, in the scope of

14 the possibility to mitigate the adverse environmental impact, investment fostering the increase in the share of energy from renewable sources

18

Emissions to the atmosphere (type and quantities of emitted substances – measurements, targets)

Education of the surroundings in the scope of environmental protection (education of

23 consumers, local communities, where the company operates) and engaging clients, consumers in environmental protection (e.g. encouraging to use e-invoices, etc.)

25

Terms and conditions of employment and remuneration (Transparent system of remuneration and benefits, working time control, flexible employment forms)

28 Health & Safety and occupational safety Education and employee development at various levels – building of employee 31 competence, training 34 37 38

Equal opportunities at a workplace; diversity management policy, family-friendly company and work-life balance Supporting local community, development of good neighbourhood policy; measures at a level of individual companies

Strategic cooperation with social partners, cooperation with the governmental and local administration

3.3. Reliability of the report 3.3.1. GRI certification 3.3.2. Reliability of the report In order to confirm the accuracy and quality of data and information contained in the report, we have traditionally submitted its content to verification by an external auditor. The auditor has verified all data contained in the report, based on the source materials made available to us. The company conducting the verification and TAURON Group are independent of each other (no organisational relationship exists between them). Prior to publication the report was accepted by the Chairman of the Steering Committee for sustainability operations in TAURON Polska Energia.

47

3.3.3. Independent assurance report from an external auditor

3.4. GRI Table

48

3.6. Contact data Should any questions arise after you read this report or, if you just wish to share your opinion, we encourage you to contact us. The person appointed for contacts is the coordinator of the TAURON Group for sustainability matters – Katarzyna Fraś (tel. 32 774 27 54, E-mail: [email protected])

4.

Energy security 4.1. Energy Security

The main task faced by the energy sector is to ensure continuous and reliable energy supplies. In simple terms, each customer connected to the power grid, irrespective of the time of day or night, for 365 days a year, should have electricity in his/her socket. In terms of the functioning of the national power system, coordinating the performance of tens of sources generating energy with the needs of millions of customers, including the emergency situations (inter alia, failure of a power plant, grid impairments, weather anomalies) – even with the available technical potential, is a real challenge. The significance of maintaining the high level of energy security cannot be undermined since the condition of the energy sector has a direct impact on the performance of industry and the society. It is not without reason that energy issues discussed on the European Union level raise such a huge interest and emotions. Any provisions to apply on the territory of the community are thoroughly analysed by each member state separately, since each country strives to ensure energy independence for itself and, consequently, to guarantee reliable energy supplies to its citizens. TAURON Group – as the largest electricity distributor and the second largest supplier and producer of energy in Poland – represents an extremely important link in maintaining the energy security of Poland. The surveillance over distribution grids transmitting electricity to each home and plant on the territory of south-western Poland is provided by TAURON Dystrybucja belonging to the Group. Each day over 8 thousand employees of the company do their best to guarantee electricity supplies to over 5 million customers through almost 180 thousand km of grid. In order to ensure the accomplishment of the strategic goals, the Company not only conducts the current maintenance and modernisation of the infrastructure held but also actively searches for innovative solutions. It also participates in research and development works and implements new technologies, with particular attention to the smart grid technology.

49

Taking care for comfort and security of persons having contact with electricity and the equipment supplied by it, TAURON Dystrybucja conducts educational and information campaigns under the label „TAURON Fuses” addressed to various recipients, including, in particular, children and teenagers (TAURON Fuses). The Company is also the initiator and co-organiser of other social campaigns enhancing the level of energy supply reliability as well as aimed at protection of health and life of persons staying in the vicinity of energy infrastructure.

Best practice - TAURON Dystrybucja – Social campaign “Stop illegal energy consumption” In 2014 TAURON Dystrybucja launched a social

Under this project, conferences for the police and

campaign to counteract electricity diversion. Last

real estate administrators were organised in

year the company detected 7 thousand cases of

Kraków, Częstochowa, Katowice and Bielsko –

theft. It makes several percent of the electricity

Biała. A video presenting methods of combating

transmitted, therefore, the company works with

illegal consumption was produced to be used during

the police on the most effective tools for combating

conferences. A campaign promoting the security

electricity diversion. The „Stop the illegal energy

telephone – anti-theft line was also implemented

consumption”

the

in the „Fakt” daily. Employees of the Energy

Governors of Silesia and Małopolska. Policemen,

Inspection Centre were also continuously trained.

real estate administrators, municipal social welfare

Through

centres, local governments and, first of all,

Dystrybucja appeals for assistance in liquidation of

customers, are invited to cooperate. This types of

illegal

campaigns have already been carried out locally

Damages caused due to energy diversion refer to

and, as experience shows, notifications to the anti-

everyone, since they pose a risk of fire, electrical

theft telephone number are confirmed even in over

shock and affect the level of fees for electricity use.

campaign’s

patrons

are

the

energy

company

website,

consumption

among

TAURON

clients.

40 percent of cases.

Best practice - TAURON Dystrybucja – Signing a “Memorandum of understanding for counteracting theft and destruction of infrastructure In connection with theft and destruction of energy

approximately 19 thousand clients lost energy

infrastructure, TAURON Dystrybucja and other

access due to infrastructure theft and acts of

companies in the energy, ITC and railway sector, are

vandalism.

working together to counteract these practices. In H1 2014 alone, in the distribution area of TAURON,

50

Over 320 cases of theft were recorded that not only

memorandum are, inter alia, working at mitigation

deteriorate qualitative indicators but also expose

of this phenomenon in the future and enhancing

people to hazards. The signatories of the

the security and comfort of citizens.

Best practice - TAURON Dystrybucja – Cooperation with the City Guards in order to eliminate cases of vandalism against energy facilities In May 2013 an agreement on cooperation was

It subject was to design and make graffiti at

signed between the Kraków centre of TAURON

transformer stations owned by the company in

Dystrybucja and the City Guards in Kraków. In the

indicated, specific locations. 20 works made by

agreement, the parties declared cooperation in the

young people were submitted to the jury. The Jury

scope of eliminating cases of vandalism and

selected four projects – all of them were made at

destruction of energy facilities and infrastructure.

the electric power stations at Borkowskiej street,

The competition for the design and making graffiti

Pachońskiego street and at the Piastów housing

on electric power stations, resolved in November

estate in Kraków. The award granting ceremony

2014, is the effect of the agreement and the

was held in the City Guards Department.

method to draw attention to illegal graffiti and

Cooperation with the city guards has a broader

destruction of infrastructure in Kraków. The

dimension for the company. Its goal is to provide

competition was addressed to persons aged from

aesthetic and, first of all, safe energy infrastructure.

13 to 24.

4.2. Continuity of energy supplies TAURON Dystrybucja is the key company of the TAURON Group. As the name indicates, it deals with electricity

distribution through the distribution grid consisting of power lines, connections, road lighting, electric power stations and switching transformers. Providing access to electricity The Company is also responsible for maintaining, exploitation and development of its individual elements. In total, the company manages grids with the length of over 260 thousand km, 56 thousand of transformer and 57 thousand of power stations. Length of terrestrial and underground transmission and distribution lines according to the regulatory system (km)

51

Length of transmission and distribution lines

Terrestrial [km]

Underground [km]

220 kV lines

44

0

110 kV lines

10 918

103

MV lines

40 527

22 313

LV lines

70 706

35 290

LV connections

33 111

10 170

Street lightning lines

30 573

9 147

185 879

77 023

TOTAL

TAURON Dystrybucja is the main electricity supplier in the Małopolska, Lower Silesia, Opole, Silesia and partly Świętokrzyskie, Podkarpacie and Łódź regions, providing services over an overall area of approximately 57 thousand km2 (18.3 percent of Poland). Owing to the daily work of over 8 thousand employees, electricity reaches almost 5.4 million customers, including almost 500 thousand business clients. The company has eleven branches located in Bielsko-Biała, Będzin, Częstochowa, Gliwice, Jelenia Góra, Kraków, Legnica, Opole, Tarnów, Wałbrzych and Wrocław.

In 2014 the volume of sales of distribution services was 47.9 TWh.

4.3. Reliability and energy efficiency

52

4.3.1. Reliability of energy supplies The short duration of interruptions in electricity supply is one of the basic parameters defining the quality of services provided to customers.

Accoringly, TAURON Dystrybucja, besides improvement of infrastructure and implementation of modern technological solutions, optimises processes and procedures associated with grid reliability. In case of an outage, a customer may notify TAURON via the website of TAURON Dystrybucja or the hotline of the Power Emergency Service (991 or323 030 991). If the company is responsible for the failure (if it does not result, e.g. from the breakdown of an internal installation in a customer’s home), repair efforts are taken immediately. Frequency of interruptions in electricity supply TAURON Dystrybucja S.A.

SAIFI number of interruptions/ consumer/ year)

Planned

0,62

Unplanned, excluding disasters

2,74

Unplanned, including disasters

2,74

Total

3,36

On the website of TAURON Dystrybucja, at any time it is possible to check where and when outages are planned (required, e.g. to perform a grid investment or modernisation of infrastructure). TAURON customers also have a possibility to subscribe to a special newsletter. This subscription gives them regular information on planned outages. It is obvious that failures are unpredictable, however, TAURON Dystrybucja continuously minimises their risk and reduces the response time necessary to localise and repair failures. This is possible thanks to the implementation of the Grid Assets Management System (ZMS), or increasing the level of grid automation through the application of various types of remotely controlled circuit breakers to disconnect the damaged grid fragment with no need to send employees of power emergency services into the field to locate a failure site more quickly.

53

SAIDI number of interruptions/ consumer/ year) TAURON Dystrybucja S.A.

SAIDI number of interruptions/ consumer/ year)

Planned

104,73

Unplanned, excluding disasters

150,18

Unplanned, including disasters

151,06

Total

255,79

All these measures reduced the average (mean) duration of interruptions in electricity supply by over 100 minutes versus 2014. The frequency of interruptions also diminished. Therefore, it is no surprise that in surveys among individual clients the client satisfaction index on failures and outages is steadily growing year on year.

Table showing the change in indicators in energy distribution in recent years

Average (mean) duration of interruption in electricity supplies during a year SAIDI

Frequency of interruptions in energy supplies SAIFI Client satisfaction index in relation to failures and outages

2012

2013

2014

362 min

356 min

255 min

3,96

3,75

3,36

74

76

77

Best practice - TAURON Dystrybucja – Implementation of the modern Grid Assets Management System (ZMS) In

September

2014,

TAURON

Dystrybucja

completed the first stage of implementation of the modern Grid Assets Management System (ZMS). After roll-out, full digitisation of all data and global information on the company power infrastructure will be in place. The continuous monitoring of the whole grid, regular updates of data and fast response to emerging threats are only some of the

54

benefits afforded by ZMS. Customers will feel the benefits. The new system will revolutionise analyses and simulations of grid conditions when building new connections, to reduce the time to connect new customers. It will also be helpful for planning and implementation of maintenance as well as repairs and improvements of the electric power grid.

4.3.3. Performance Improvement Although they are not visible, the improvements of processes and procedures inside the company directly translate into the entire distribution grid and effectiveness of activities, i.e. to the customer.

To this end, many projects in various areas are carried out in TAURON Dystrybucja, aimed at optimisation of processes resulting in better quality of the services offered. The best example is the „Single distribution” project concerning the Management Board of TAURON Dystrybucja’s the new direction of development in the upcoming years. The aim of the project is to create a single organisation and a shared organisational culture operating according to the same standards, processes, clearly defined tasks and levels of responsibility within all 11 branches. The tasks undertaken intend to prepare the organisation to meet the new requirements of consumers and prosumers, so that we can become a leader among distribution companies in terms of quality and effectiveness. Accordingly, the company will be able to meet expectations and care for work safety, stability of employment and employee development. Under the „Single distribution” project work is underway to roll out a consistent management model in the high voltage (HV) area and safety instrumented system (SIS) – the construction of specialised service in the maintenance of HV grid, SIS and Station Telemetry (ST) as well as provision of services in the external market. The construction of a single centre will enable the transfer of competence between branches, use of best practices as well as standardisation and development of work technology, tools and equipment. All these activities should result in increasing operational effectiveness and augmenting customer service.

Best practice - TAURON Dystrybucja – Construction of modern grid management centres In Wrocław a new grid management centre of

ultramodern tele-mechanical equipment, tele-

TAURON Dystrybucja is under development. In a

technical and IT server rooms. They provide a full

four-storey building the performance of the power

current overview of the situation and complete

grid comprising the area of the former Wrocław

control of the power grid.

region and the high voltage network of the whole Lower Silesia will be monitored. The Centre will be equipped with several independent supply sources and a significant part of its area will be filled with

55

They guarantee instantaneous identification of reasons and location of any failures and significantly facilitate crisis management during flood or storm. The construction of the facility will

take three years. Similar control centres are developed in Gliwice and Kraków.

Best practice - TAURON Dystrybucja – Aerial control of overhead and medium voltage lines The method of aerial control is based on

All these facilities allow for obtaining a detailed

registration of the distribution grid image using the

technical analysis of the observed infrastructure

stop motion digital method from the board of a

points, fostering the subsequent optimisation of

helicopter. Within a single flight, any option of

many activities. The aerial control flights performed

system configuration is possible, using the available

in TAURON Dystrybucja in 2014 have already

navigation,

and

covered approximately 7 thousand km of high and

various

medium voltage lines. Almost 100 employees have

parameters. Moreover, the navigation enables the

also been trained in the scope of using the data

measurement of coordinates of the power

from the flights and analyses in the dedicated

infrastructure

application.

laser,

photogrammetric

infra-red cameras

and

facilities

cameras with

located

in

the

surroundings of a line.

Best practice - TAURON Dystrybucja Serwis – Diagnostic measurements – exchange of experience In January 2014 in Gliwice a seminar concerning the

performing measurements on various types of

diagnostics of medium voltage cable lines was held.

medium voltage cable lines and measurement

The objective of the meeting was to check and

methods used in TAURON Dystrybucja and

compare the performance of measurement

TAURON Dystrybucja Serwis.

vehicles used during the diagnostic measurements in TAURON Dystrybucja Serwis. The meeting was attended by the company employees and employees of TAURON Dystrybucja branches as well as representatives of cooperating companies. The seminar fostered the exchange of experience and knowledge concerning the methods of

56

The participants expressed their intent to organise regular meetings since they provide the opportunity to get acquainted with methods of performing diagnostic studies in other branches of TAURON Dystrybucja.

Best practice - TAURON Dystrybucja – Construction of the largest measurement system in Europe The main objective of the project is to implement

IT infrastructure, centralisation of measurement

the Grid stream CONVERGE measurement system

data management, introduction of a single

in five branches: Jelenia Góra, Legnica, Opole,

standard

Wałbrzych and Wrocław. The target solution (the

transmission equipment.

implementation is scheduled in 2016) will acquire data from 65 thousand measurement points comprising the calculation of 910 thousand load profiles with the 15-minute averaging period. Moreover, the project is aimed at harmonisation of the reading process of business clients, unification and reduction in the number of measurement

of

electricity

meters

and

data

The decision on the construction is the response to the

growing

organisation

requirements concerning

of

the

the

whole

transfer

of

measurement data and reduction of measurement data transfer time to both external and internal customers.

interfaces to the third systems, simplification of the

4.3.4. Energy efficiency Transmission losses are an inherent element of electricity transmission over long distances. Distribution grids through which lower voltage current is transmitted are particularly exposed to this phenomenon (as compared to higher voltage transmission grids), since the ratio between voltage and losses is inversely proportional. In other words – the lower the voltage in the grid, the higher the energy losses. Reducing energy losses to zero is technically impossible; however, TAURON Dystrybucja aims at the maximum limitation of energy losses in distribution. To this end, it uses modern solutions as well as permanently monitors, modernises and develops its infrastructure. Consequently, energy losses in distribution in 2014 amounted to 5.31 percent, showing progress in relation to 2013 when losses of 5.69 percent were recorded. Transmission and distribution losses as a percentage of the total energy transmitted / distributed Distribution losses, including the specification of causes of the losses:

57

MWh

Technical losses

2 169 443,88

Non-technical losses

594 679,12

TOTAL LOSSES

2 764 123,00

Transmission and distribution losses as a percentage of total electricity generated

5,31

Smart metering Energy may be also lost in other circumstances. A TV set or a computer switched on during our absence at home, older household equipment, an old fluorescent lamp – contribute to wasting energy. In a single household they generate a minor energy loss, however, if multiplied by 13 million homes (the approximate number of households in Poland) generates enormous quantities of wasted energy. That is why TAURON Dystrybucja launched the AMI (Advanced Metering Infrastructure) project for its customers to monitor energy consumption. AMI is a smart metering system allowing for automatic processing, transmission and management of measurement data. It enables two-way communication between electricity meters and the distributor, simultaneously providing access of the customer to current information concerning electric energy consumption. A smart meter is a part of the smart energy metering system. The installation of the meter offers many benefits to customers, including: – shorter time of failure fixing, – automatic reading of meters, with no need of TAURON employee visit, – protection against „meter reader” fraud, a customer will not be exposed to unfair behaviour of people impersonating employees of the energy provider, – monitoring energy consumption through the website www.amiplus.pl. Energy consumption may be also followed on a smartphone and tablet, using the TAURON eLicznik application, – in the future the customer will pay for the energy consumed in real time (without forecast settlements), – the customer will not incur fees for replacement of the electricity meter. On the other hand, owing to the implementation of smart energy metering, utilities have, among others, a possibility to: – acquire information concerning energy consumption by specific households automatically, – enhance the effectiveness of measurement data management, – improve power grid performance security, – strengthen customer service, e.g. verify complaints faster, – act faster and more efficiently in case of grid failures and, consequently, reduce time of interruptions in energy supply,

58

– simplify the procedure for energy supplier change, – adjust offers to individual consumers’ needs. In 2014 TAURON allocated PLN 35,042 for the installation of meters.

Best practice - TAURON Dystrybucja – Smart City Wrocław TAURON Dystrybucja launched the installation of

measurement data read from the meter by mobile

smart meters for over 330 thousand electricity

phone or the web.

consumers in Wrocław – in all houses, flats and small enterprises of the Wrocław agglomeration. In September 2014 the company finalized the tender and signed an agreement with the LG CNS consortium for their installation. New meters are intuitive in terms of service and ready to cooperate with home automatic solutions more and more commonly used in the contemporary construction industry. In addition, TAURON Dystrybucja created a

possibility

for

its

customers

to

The dedicated platform called eLicznik makes this possible. The implementation started in 2015 and will be continued in 2016. So far, the company has conducted ten pilot projects associated with the supply and installation of a total of 40 thousand smart meters conducted in several cities of southern Poland, including Kraków, Tarnów, Toszek and in Lower Silesia.

access

Installation of the smart metering stems from EU and Energy Regulatory Office recommendations. In accordance with the EU directive, until 2020 new meters should be installed for 80 percent of consumers.

4.4. Investment and research 4.4.1. Description of the approach Capital expenditures constitute an important budget item of the TAURON Group. The corporate strategy updated in June 2014 assumes that the total capital expenditures of the TAURON Group in 2014-2023 would be approximately PLN 37 billion (about PLN 29 billion until 2020).

The main objective of such an ambitious investment programme is to ensure the reliability and continuity of energy supplies not only for TAURON customers but also for all electricity consumers across the country.

59

In 2014 the capital expenditures of the TAURON Group were approximately PLN 3.1 billion.

4.4.2. We invest in the grid The TAURON Group plans to spend approximately PLN 21.1 billion for investment in distribution by 2023. These

funds will be mainly allocated for connecting new customers and sources and the related grid construction as well as for modernisation and improvement of existing infrastructure. Through its investment plan and development plan, TAURON Dystrybucja provides for the implementation of investments associated with connecting new customers, developing the grid and modernising assets. The needs in the scope of connecting to the grid are fulfilled on request of clients, after the appropriate connecting agreement. In the scope of development and modernisation of the infrastructure investments arise from the current assessment of the technical condition, measurements of electricity supply quality and analysis of the failure rate, condition and age of individual devices. For several years, the rules of prioritisation of investment needs have applied. Such an approach is aimed at targeting the expenditure at places that have the strongest impact on the improvement of electricity supplies and effectiveness of the distribution grid performance, including the enhancement of the qualitative electricity indicators. The adjustment of the infrastructure to connecting low capacity renewable sources will be a significant challenge for distribution system operators, including, in particular, prosumers, i.e. entities to generate electricity for own use and transmitting its surplus to the grid. The characteristics of renewable energy sources (i.e. dependence on weather conditions, volatility) results in the necessity to apply modern regulatory solutions or building new, smart grids that will ensure maintaining of high qualitative parameters of the energy transmitted. The most important investment in the distribution grid in 2014 In 2014 in the Distribution Area major funds were spent on the construction of new connections (PLN 512 million) as well as modernisation and replacement of existing grids (PLN 1,151 million). The CAPEX to develop new technologies also represented a significant item in the budget (construction of fibre optic networks, dispatching communication system, implementation of a system for power grid surveillance and management), with an allocation of PLN 136,900. The objective of the modernisation of the building and Modernisation of the pre-war Kurów GPZ (Primary Power Supply Substation)

equipment of the 30 and 15 kV substation, comprising, inter alia, building-in of new type switchboards, was to

improve the reliability, functionality and aesthetic values of the building.

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The modernisation of the 110/15/6 kV station was completed, comprising the reconstruction of the 110 kV Modernisation of Andrychów GPZ

switchboard and its secondary circuits and transformer

fields as well as tele-mechanical systems. The objective of modernisation was to increase the reliability of energy supplies and to reduce operating expenses.

Modernisation of MV lines across forest areas in Bolesławiec

The modernisation work covered the replacement of 7.5 km of overhead lines, applying better insulation and

replacement of 72 poles. As a consequence, grid reliability will improve.

For the purpose of improvement of the security and

reliability of supplies, as of November 2013 modernisation of the 110/15 kV Tuchów station was conducted, Modernisation of Tuchów station

comprising the total replacement of the 110kV switchboard equipment, thermal modernisation of the medium voltage substation building, construction of water supply and

sewage installation junction as well as construction of new fencing, station lighting and installation of the new monitoring system.

The modernisation comprised the 110 kV substation,

access roads and fencing. The building of the medium Modernisation of Piaskówka station in Tarnów

voltage substation and control room is subject to total

reconstruction. The drainage of the station premises was also an important task.

The investment refers to two 110 kV lines along the route: Kłobuck – Rębielice Królewskie GPZ with the length of Grid investments in the area of Częstochowa

approximately 10 km and Rębielice Królewskie –

Działoszyn with the length of about 6 km. The aim of

replacement of the wires is to reduce energy losses and to decrease transmission costs.

The modernisation was related to the double-track 110 kV overhead line along the route: Groszowice GPZ (Opole) – Reconstruction of the double-track 110 kV overhead line

Hermanowice (Brzeg) GPZ, including access to Gracze GPZ. The main objective of the reconstruction will be to improve

the technical condition of the line, increase the capacity and reliability of consumer supply as well as to reduce technical losses. Within the reconstruction of the overall high voltage

New Tuchów station

equipment and modernisation of breaker protection

circuits, the comfort of station management was enhanced, alongside employees’ safety and reliability of equipment performance.

The complex reconstruction of the station was aimed at Modernisation of 110/15/6 kV Mikuszowice station

increasing the reliability of supplies for the Bielsko-Biała city. The replacement covered foundations, support constructions and the equipment of the station.

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As a result of several years’ works aimed at reducing losses in electricity distribution, the Radomyśl Primary Power Reconstruction of GZP Radomyśl

Supply Substation (GPZ) and the 110 kV line were

constructed. The overhead medium voltage line of over 60 km was also reconstructed.

Best practice - TAURON Dystrybucja – Supporting the development of renewable energy As a result of the comprehensive modernisation of

next key element of the project was the

the 110/20 kV Górka station in Legnica –

construction of the 110 kV cable line between this

comprising the reconstruction of the station to

station and the 110/20 kV Przybków station.

performance according to the new working system, taking into account the perspective of its further development – connecting the EWG Taczalin wind farm through the cable line was possible. The connection of the photovoltaic power plant planned in the direct neighbourhood is also envisaged. The

It has both improved energy security of Legnica and enabled further energy transmission from Taczalin wind farm. The reconstructed section of the 110 kV cable line is the longest in Lower Silesia, amounting to 6 km.

Best practice - TAURON Polska Energia – Agreement with the European Investment Bank TAURON Polska Energia signed a credit agreement

TAURON Group will use the funds acquired from

with the European Investment Bank (EIB) worth

the loan to extend distribution grids and modernise

PLN 295 million (approximately EUR 71 million) for

existing infrastructure, as well as implement a pilot

the implementation of investments in renewable

programme on smart metering and modernise

energy and energy distribution. The

several hydroelectric power plants in TAURON Group.

4.4.3. New and modernised generation capacity Investments ensuring the continuity and reliability of energy supplies to customers will be also implemented in Generation, Heat and Renewable Energy Sources Areas. In this scope TAURON Group plans the restoring and increasing of installed generation capacity up to the level of approximately 6.15 GW in 2023 from the currently operated 5.4 GW. The growth of capacity will result from the commissioning of high efficiency hard coal and gas fired power units, as well as wind farms.

62

Within the planned investment projects the target is to commission generation capacity at a level of approximately 2200 MW, including, in particular: – 1030 MW in the technology based on hard coal (910 MW at Elektrownia Jaworzno III, co-generation capacity: 65 MW at Zakład Wytwarzania Tychy); – approximately 675 MWin the gas technology (225 MW at Elektrociepłownia Stalowa Wola (the unit constructed jointly with PGNiG) and about 450 MW at Elektrownia Łagisza); – approximately 500 MW in wind energy. In 2023, TAURON Capital Group will hold wind sources with the total capacity of approximately 700 MW which will allow to accomplish the RES capacity target at a level of 800 MW (including biomass). Planned generation capacity and the foreseen long-term electricity demand, divided into sources TAURON Wytwarzanie

TAURON Ciepło

TOTAL

ENERGY SOURCE investments

in progress Hard coal

planned

investments

investments

in progress

planned

investments

investments

in progress

planned

investments

910

0

58

135

968

135

0

0

0

0

0

0

coking gas

0

450

0

0

0

450

Biomass

0

0

0

0

0

0

910

450

58

135

968

585

Brown coal Natural gas and

TOTAL

Best practice - TAURON Wytwarzanie – Construction of a modern 910 MW hard coal fired unit

63

TAURON Wytwarzanie started the construction of

contract performance with a gross ticket of

the 910 MW capacity hard coal fired power unit.

approximately PLN 5.4 billion.

This will be the TAURON Group’s largest investment

significantly

contributing

to

the

improvement of its generation effectiveness. Several thousand people will be employed during

The unit will also guarantee several thousand jobs for decades in the neighbouring hard coal mines to supply coal. The commissioning shall take place at the end of the current decade.

TAURON also plans to include nuclear energy in its energy mix through the Group’s participation in the construction of a unit with strategic partners. An important element to ensure energy independence is guaranteeing raw material supplies for energy production. To this end, TAURON Wydobycie, comprising two hard coal mines – ZG Janina in Libiąż and ZG Sobieski in Jaworzno, carry out investment projects aimed at gaining the access to new coal deposits. Investments in generation capacity conducted in 2014 In 2014 TAURON Group carried out the following investment projects to expand its generation fleet. Investment

Status of investment implementation

Construction of the CCGT unit of 449 MWe capacity, including the heat generation

component of 240 MWt capacity in Stalowa Wola (the investment is being implemented with the

strategic partner – Polskie Górnictwo Naftowe i Gazownictwo S.A. (PGNiG).

Execution of construction and installation work is in progress in the

scope of main unit equipment as well as the accompanying systems and economies, including: assembly of the gas and steam turbine set as well as installation of the waste heat boiler. Works related to the

modernisation of the retaining dam on the San river entered their final Contractor: Abener Energia (Abener Energia)

stage. Machinery, equipment and components included in the unit have been supplied to the construction site.

Scheduled date of investment project completion: 2015

In 2013 the investment project was completed in its part related to the Construction of new generation capacity in co-

modernisation of the existing fluidised bed boiler and its adjustment to

ZW Tychy (TAURON Ciepło).

MWt). In the part of the investment project related to the construction of

generation at the level of 50 MWe and 86 MWt at

Contractor: Elektrobudowa

biomass burning and the construction of the coal-fired water boiler (40 the 50 MWe co-generation unit, construction and development works

are implemented. In 2014, the assembly of the steel construction and boiler drum was completed, as well as the construction of

turbogenerator foundation on which the generator was placed, and Scheduled date of investment project completion: 2016

64

works associated with the construction of the foundations and walls for transformers (step-up and tap transformers).

Construction of a new power unit of 910 MWe capacity, for supercritical parameters on the premises of Jaworzno III Power Plant (TAURON Wytwarzanie).

In April 2014 the master contract for the construction of the unit was

signed with the consortium of RAFAKO and MOSTOSTAL. In November

2014 the contractor submitted the basic design of the unit, whereas the

client handed over the site of the unit. Contractors for the construction of the first part of the carbonation system were selected. The process of

Contractor: RAFAKO and MOSTOSTAL consortium designing and tendering of contractors for ash removal systems, water treatment station and wastewater treatment plant, track system and Scheduled date of investment project completion: 2019

others, is on-going. The decision on the building permit was obtained for the construction of the 1st stage of the overhead 400 kV power line.

Construction of the installation for flue gas de-

nitrification in six blocks of Elektrownia Jaworzno III and four blocks of Elektrownia Łaziska belonging to TAURON Wytwarzanie. Contractor: Jaworzno III Fortum Power and Heat Oy i ZRE K-ce, Łaziska – Strabag (Sp. z o.o.) and

Until the end of 2014 modernisation works were completed in seven of ten units.

Strabag (AG)

Scheduled date of investment project completion: 2016

Construction of the CCGT unit of 413 MW

In March 2014, TAURON and Polskie Inwestycje Rozwojowe S.A. (PIR)

component of 266 MWt capacity on the premises

construction. In April 2014 the connecting agreement with the Gas

capacity, including the heat generation

of Elektrownia Łagisza (TAURON Wytwarzanie). Contractor: selection process in progress

signed the preliminary agreement concerning the financing of the unit Transmission System Operator, GAZ-SYSTEM (GAZ-SYSTEM) was signed. Procedures associated with the selection of the Contract

Engineer are under implementation. In November 2014 the call for

tender was announced for selection of the contractor for the CCGT unit in Łagisza Power Plant. The environmental impact assessment report was

Scheduled date of investment project completion: 2018

prepared and preparations were commenced in relation to the

documentation required to obtain the building permit and permit for design works for the generation unit.

Construction of the 18 MW Marszewo Wind Farm, constituting the 2nd stage of construction of the wind farm with the total capacity of 100 MW in Marszewo location.

Contractor: Iberdrola Engineering and

Construction Poland and Iberdrola Ingenieria Y

In 2014 the Contract Engineer and the General Contractor were selected for the investment project, including the supply of turbines.

Construcción.

Scheduled date of investment project completion: 2015

4.4.4. Research and development The rate of change and technological progress in various areas of life make it necessary to plan and forecast forward-looking changes.

65

The situation in the energy sector is not different. In order to prepare for further transformations as well as possible, TAURON Group decided to focus more intensively on innovation. The foundations of the innovative philosophy were included in the corporate strategy updated in June 2014, where emphasis was put on the Group’s R&D management. Effective R&D management aims at intensifying innovation and maximising the benefits arising from knowledge and experience gained by implementing such undertakings. In 2014 team work commenced on the R&D policy to help tap into staff potential and foster an innovative approach to energy generation and distribution, emission abatement, mining and generation waste management to produce measurable effects for TAURON Group. The implementation of the process is supervised by the Research and Development Office established in 2013 in TAURON Polska Energia reporting to the Vice-President responsible for Strategy and Development. TAURON Group’s competitive advantage is that it controls the full value chain. Accordingly, innovative implementation projects, due to involvement of several areas, generate a multiplier effect. While reaching for new solutions, TAURON Group companies not only analyse the directions of regulatory changes but also use the knowledge and experience of academic centres and research entities, closely cooperating with industrial partners. All these efforts mean that the solutions being tested are not unrealistic and provide a real opportunity of market success. Within this innovative approach, emphasis will also be put on products for customers.This project includes Smart City Wrocław, carried out by TAURON Dystrybucja, under which the smart metering system is being implemented, fostering conscious energy use. Best practice - TAURON Polska Energia – Signing an agreement on R&D cooperation with other energy groups TAURON Polska Energia, ENEA, ENERGA and

The coordinated approach to R&D will not only

Polska Grupa Energetyczna started cooperation in

provide added value in the form of economies of

research,

enhancing

scale and technological synergy. It will also

competitiveness. In June 2014 the CEOs of the top

contribute to the more comprehensive exploitation

four Polish energy groups signed a letter of intent

of Poland’s scientific and research potential,

concerning

and

thereby generating an essential development

development projects. The main goal is the

stimulus for regional academic centres, business

intensive

partners and the entire economy.

innovation

and

cooperation

search

for

in

research

technological

solutions

corresponding to the key challenges faced by the Polish energy sector.

66

5.

Customer orientation 5.1. Our customers 5.1.1. Strategic approach

TAURON Group’s overriding goal is to meet customers' expectations and needs. This assumption is being implemented by all Group companies – both through the optimisation of internal processes, corporate governance, and through enhancing the quality of customer service and increasing the range of products and services offered. Customer orientation is the next key direction of TAURON Group’s sustainability – next to ensuring energy supply security ( Sustainability Strategy). Efforts aimed at accomplishing the assumed goals in this scope are based on many measures in each of the value chain areas, inter alia, through grid modernisation, searching for solutions enhancing customer satisfaction, ensuring security of customer interests, care for vulnerable clients and disadvantaged groups as well as through continuous education in the area of effective energy use.

5.1.2. Our customers and the offer Consumers today expect individual treatment and products tailored to their need. Such preferences are also expressed by power sector customers. Almost 5.4 million customers, including over 486 thousand business clients, are connected to the grid of TAURON Dystrybucja. Agreements for energy sales (with TAURON Sprzedaż and TAURON Sprzedaż GZE) were signed, in total, by over 4.8 million individual clients and almost 436 thousand business clients. Number of individual and business clients Individual clients Business clients (including institutions) TOTAL

2014 Sales Area

Transmission and distribution 4 821 815

4 890 280

435 982

487 215

5 257 797

5 377 495

TAURON tries to meet expectations of various customers groups, offering a wide range of modern services and non-standard products. TAURON Sprzedaż and TAURON Sprzedaż GZE are responsible for electricity sales.

67

The products offered are available to inhabitants across Poland. In 2014 almost 5.4 million customers trusted TAURON. This number means commitment, therefore TAURON endeavours to provide top quality products to its customers. Another Group company – TAURON Obsługa Klienta is responsible for contacts with customers and for providing comprehensive customer service. Offer for the household 

Current with the electrician 24H – free electricity and 24-hour service included



Ecological Product – 100 percent of energy from European renewable sources



ECO Heating Product – ecological heating of TAURON 2- or 3-year guarantee of fixed price



Heat Pump Product – Attractive price offer for the purchase of Viessman heat pump

Offer for SMEs 

Safe Company Product – electricity price even 7 percent lower than in the tariff (for C11 tariff group) plus security of valuables

Offer for corporations 

TAURON ECO Premium – offers energy originating in 100 percent from renewable energy sources



TAURON ECO Business – Guarantees reduced CO2 emission into the environment



TAURON Exchange – Offer based on stock exchange indices



TAURON Exchange Property Rights – Product allowing for price shaping based on exchange quotations



TAURON Discount – Protects customers in case of significant volatility of market electricity prices



TAURON Compensation – Offer allowing for reducing costs due to passive energy consumption



TAURON Measurements – Offer allowing for adjustment of meters to the company needs



TAURON Monitoring – Product enabling the overview of electricity consumption and cost control



LED Special Offer – Offer allowing for electricity cost reduction



Installation Review Special Offer – conducting the assessment of the technical status of electric installation

68

Offer for public institutions TAURON Ciepło deals with heat energy sales. In 2014 700 thousand inhabitants from the Silesia-Dąbrowa Górnicza region received network heat from TAURON. Market sectors serviced by TAURON Ciepło include: 

residential buildings (housing cooperatives, housing communities, municipal housing resources, private buildings (multi-family))



offices and institutions (inter alia, offices, schools, kindergartens, universities, hospitals, sports halls swimming pools)



services and industry (inter alia, commercial centres, industrial plants, hotels, office premises, small entrepreneurs)



other (parishes, associations)

Best practice - TAURON Sprzedaż – Extending the offer to include gas sales In 2014 TAURON also entered the market of gas

The offer protects against gas price inflation and

fuel trading, consequently extending the scope of

allows companies to

products offered. TAURON Gaz is an offer tailored

budgetary

to customer needs for a selected period, with a

products, the gas purchase offer from TAURON is

fixed price guarantee throughout the term of the

available across Poland.

planning.

engage in long-term As

in

electricity-based

agreement.

5.2. Responsible communication and marketing 5.2.1. Description of the approach At present, with the extremely extensive and often aggressive market competition, genuine and sustainable relations with customers are built on mutual trust.

By embracing this assumption in the TAURON Group we construct offers that they clearly and transparently show benefits to customers, resulting from their choice, simultaneously explicitly presenting the rights and obligations arising from signing a sales agreement. In case of any questions or doubts, a customer may always

69

visit the website containing offers and promotions or contact a TAURON advisor at 555 444 555, where he/she will obtain all the required information. In the company responsible for the preparation of offers and the marketing campaign – TAURON Sprzedaż, work on devising internal procedures streamlining sales communication is on-going. Currently, each offer is consulted in detail with the legal department to check transparency and accuracy of the offer constructed in terms of compliance, i.e.: 

Act on combating unfair competition,



Act on counteracting unfair market practices,



Act on the protection of competition and consumers,



Civil Code,



Act on the protection of some consumer rights and responsibility for the damage caused by hazardous product,



Act on personal data protection.

Evidence confirming the legitimacy of this approach is embodied by the fact that in 2014 the TAURON Group had no cases of non-compliance with provisions concerning service or product labelling, marketing communication resulting in a requirement to pay a penalty.

Best practice - TAURON Sprzedaż – Participation in the “Check who your energy supplier is!” In 2014 TAURON Sprzedaż joined the national educational and information campaign of the Association of Energy Trading called „Check who your energy supplier is!”, aimed at warning customers against unfair practices used in the energy sector and presenting the methods of protection against fraud (inter alia, education in the scope of consumer rights and obligations when signing agreement on electric energy sales, such as: the right to check the sales representative, the right of consideration, the right of withdrawal from the agreement within 10 days – and as of 2015 – 14 days – without stating the reason) and communicating the acceptance of the Code of Best practices in companies participating in the project (during the press conference opening the campaign). Within the campaign, a dedicated website has been launched where customers may find all required information in the scope of energy sales: www.toe.pl/sprawdzkto

70

5.2.2. Communication channels with the customer Various needs and expectations of customers result not only in construing a diversified sales offer but also in creating numerous communication channels.

TAURON Obsługa Klienta, wishing to be as close to its customers as possible, communicates with them using various forms and tools. Channels of communication between TAURON and its customers: – Telephone Customer Service – available at the following numbers: 

32 606 0 606 – Customer service; business days from 7.00 a.m. – 6.00 p.m.;



991 – Energy emergency service; 24/7



555 444 555 – offers and promotions; business days from 7.00 a.m. – 6.00 p.m.;

– Customer Service Centres – stationary centres located in 56 cities over the distribution area of TAURON; open on business days from 8.00 a.m. – 4.00 p.m. – Individual consultants for corporate clients – dedicated consultants for business clients, assisting in adjusting the offer to individual needs of the company or the institution – eBOK – electronic Customer Service Office; available 24/7 after logging in – eBiuro for companies – 24-hour access to invoices and reports on energy consumption – website – on the website a contact form is available; after its filling in and sending, TAURON employee will contact the customer in order to resolve the issue

Best practice - TAURON Obsługa Klienta – New Customer Service Centers (POKs) In 2014, 26 customer service centres of TAURON (inter alia, in Częstochowa, Nowy Sącz and Tarnów) gained better appearance owing to the reconstruction compliant with the Visual Identification System introduced by Tauron. The facilities were equipped with comfortable service desks and waiting rooms adapted to the needs of the disabled. In each centre, a call room is located, from which customers may call the telephone service free of charge, as well as comfortable sofas, tables and toys for children.

71

Modern architectural design, communication and organisational solutions contribute to the improvement of customer service quality and speed, and enhance the working comfort of employees. In 2015 the adjustment of consecutive POKs to new standards will continue.

Best practice - TAURON Obsługa Klienta – eBOK The Electronic Customer Service Office was first made available to customers on 21 June 2013 in the area of Gliwice. A year after its launch, the service already had over 100 thousand registered users, and it is visited by over 100 thousand clients every month. Before the end of 2015 eBOK will be available for all customers of TAURON. Owing to the e-BOK service customers have access to the current data concerning their accounts with the settlements for electricity. At any time convenient for them, customers may verify the status of electricity settlements, the current balance, meter readings and contact data. Using of the service is free of charge. It is a convenient and safe form of contact 24 hours per day, 7 days per week.

5.3. Customer service standards 5.3.1. Openness to customer’s needs By taking care of customers' living comfort through supplying their homes and workplaces with electricity and heat, the TAURON Group strives to make sure that customers feel well with us and know who to contact and where to find the necessary information provided in accessible form in case of any problems or doubts.

That is why we are constantly working on solutions assisting us in enhancing customer service standards in direct contact with our top stakeholders. In order to improve customer orientation, in 214 the Catalogue of Best practices was prepared. This publication – serving as a guide for employees of TAURON Dystrybucja, TAURON Dystrybucja Serwis and TAURON Dystrybucja Pomiary – contains valuable client contact comments. The preparation of the catalogue aimed at raising employee awareness and meeting customers’ expectations, to be measured by means of regular Mystery Shopper surveys and Client Satisfaction Surveys, maintaining the procedures applicable in companies.

72

Another factor contributing to improvement in the quality of customer service for clients supplied with electricity by TAURON Dystrybucja is the introduction of smart meters under the Smart City Wrocław pilot project, described in more detail here . The enhancement of business customer service quality was fostered, inter alia, by the development of „Business Customer Service Standards of TAURON Sprzedaż”. The standards constitute a set of qualitative norms defining the desirable model of behaviour in relations with customers. They were mainly introduced in order to enhance the quality of business customer service in TAURON Sprzedaż and TAURON Sprzedaż GZE as key factors of success targeted at building professional sales organisation and construction of long-term relations of the company with business clients. The level of service is reflected in the annual satisfaction surveys among this group of customers. In 2015 the review of Business Customer Service Standards of TAURON Sprzedaż and TAURON Sprzedaż GZE is planned, including their potential update. While introducing all the facilities and improvements, we care about the security of our customers’ data. As a result, any situation of customer data loss did not have place in 2014 in TAURON.

Best practice - TAURON Obsługa Klienta – Centralisation of billing systems for mass clients The centralisation of billing systems in TAURON

The centralisation of billing systems is a tool

Obsługa Klienta refers to solutions used in

enabling us to make the electronic Customer

customer service for individual clients and MSPs.

Service Office (e-BOK ) available to customers – as

The new billing system allows us to cater to clients

a safe and convenient form of contact 24 hours a

at any Customer Service Centre, irrespective of

day, 7 days a week. The implementation of the new

their residence address. The new system will also

billing system, launched in 2014, for approximately

enable access to the new and consolidated product

4 million Group customers will take two years.

offer and modern communication channels.

Best practice - TAURON Obsługa Klienta – Changes in the business clients area In 2013 the Business Customer Service Centre was

best

established in TAURON Obsługa Klienta. Its

customer’s needs. The next big step towards

business consultants are in constant contact with

improvement of the quality of services provided to

customers, processing their notifications on an on-

TAURON business clients was the implementation

going basis and assisting them in selecting the offer

of the digitisation and archiving of agreements for

73

tailored

to

individual

and

diversified

this group of customers, providing fast access to

In 2014 the service of free electronic Business

agreements for business clients, maintaining the

Customer Service Office was made available to

high level of security of the data stored.

business clients 24 hours a day, 7 days a week.

5.3.2. We do our best to understand customers Not always do things go as expected. However, the most important thing is to draw constructive conclusions

for the future. Therefore, in TAURON Group, complaints submitted by customers are analysed with particular attention. In order to understand the customer perspective better, since 2013 regular workshops prepared based on complaints have been conducted in TAURON Dystrybucja and TAURON Obsługa Klienta. Jointly with employees working in areas to which a given complaint refers, causes and potential alternative solutions are analysed. Accordingly, the idea of a self-learning organisation is being implemented. In 2014 six workshops were organised, with 150 employees trained. The next issued of the workshops are planned. In addition, since 2012 TAURON Dystrybucja, TAURON Sprzedaż and TAURON Sprzedaż GZE have been conducting joint workshops for consumer representatives – consumer advocates, the Energy Regulatory Office and the Office of Competition and Consumer Protection. During these classes, advocates have the opportunity to get better acquainted with the specific nature of the energy sector. These workshops also facilitate cooperation on processing issues reported by clients to consumer organisations. So far, four such training courses have been held in Wrocław and Katowice, each time attended by 100 consumer advocates. Due to the great interest and positive response, these workshops will be held again next year.

Best practice - TAURON Obsługa Klienta – “Difficult situations in customer service: training In 2014, e-learning training for Customer Service Centres (POK) employees was prepared, containing



communicating with customers,



building customer trust,



methods and techniques to control

methods and techniques of handling difficult situations in customer service. This training is

emotions,

mandatory for all customer service centre employees (but it is simultaneously available to all other employees). The topical scope contains:

74



handling customer objections,



effective handling complaints.

This

training

is

exceptional

as

employees

1 to 6). The great success of this training, there are

participating in a professional photo session

plans to introduce similar training courses

contributed to its establishment by role-playing

strengthening competence of employees servicing

employees and POK clients. Its objective is to

the internal client (IT, Accounting).

strengthen employee competence in customer service and to provide employees with knowledge on coping with stress. In 2014, 351 direct customer service employees were trained, and their training assessment in the feedback was 4.96 (on a scale of

5.3.3. Responsibility to customers In view of over 5 million customers, it is impossible to avoid difficult situations. TAURON Group companies try to identify incidents on an on-going basis. As with complaints – they are subsequently analysed and, whenever possible and justified – the organisation tries to implement remedial measures. The approach to vulnerable consumers is certainly one of the difficult areas in the energy sector. This issue is essential from the point of view of TAURON Group. It is confirmed by the fact that it has been included among goals in TAURON Group Sustainability Strategy for 2012-2015: „We undertake to ensure the security of customers’ interests and introduce a system of vulnerable consumer service”. However, in view of the lack of national legal provisions regulating this area and lack of perspectives for detailed regulation of these issues in the near future, it will not be implemented by the end of 2015. While waiting for the adoption of legal provisions related to vulnerable consumers, Group companies take various measures toward disadvantaged consumers. Among others, Customer Service Centres accommodate the needs of the disabled with ramps and waiting rooms. Moreover, in 2014, in order to provide service to foreigners, English language courses were provided in all Customer Service Centres. Vulnerable groups also include seniors who are particularly sensitive to the use of unfair practices by sellers – not only electricity. That is why TAURON engaged in a national campaign entitled „If you don’t recognize it, don’t open it”, under which it conducts lectures for seniors in the biggest spa resorts (Ustroń, Rabka Zdrój, Polanica Zdrój, Duszniki Zdrój), as well as at the third age universities. We provide more information on this issue in the chapter on the economic and social impact ( TAURON Fuses).

75

5.4. Customer satisfaction 5.4.1. Description of the approach Facilities and improvements implemented by the TAURON Group for customers are prepared based on feedback. The opinion of the biggest group of stakeholders is extremely significant. That is why for several years TAURON has conducted dedicated surveys showing changes in customer satisfaction, with particular focus on the quality of service in all contact channels. We are proud and optimistic since customer satisfaction survey results are improving year by year and place TAURON as a market leader. In parallel with customer satisfaction loyalty is also growing, evidencing that in the face of enhanced competition customers trust us and are willing to stay with us for longer. The survey – besides individual clients – also covered business clients (both small business and customers from higher – A, B and C2 tariff groups). Due to higher expectations of entrepreneurs, satisfaction and loyalty scores are lower than in households, but they remain at a high and satisfactory level. Survey results measuring customer satisfaction in various groups of customers [%]

2014

Customers satisfied with cooperation with TAURON

76%- individual clients 72%- SME clients (small and medium

Customers satisfied with their service

81%- individual clients 76%-SME clients (small and medium

enterprises) 72%- business clients enterprises) 81%- business clients

2011

2012

2013

2014

Satisfaction and loyalty among Tauron Customers in 2011-2014 (household segment) Billings and payments

79

79

80

86

Loyalty index

73

77

77

83

Customer service

77

80

78

81

Failure / outages

74

75

76

77

Satisfaction index

71

73

73

76

Image

66

67

69

73

Price

50

55

57

63

76

A separate module of the survey referred to the quality of individual customer service. Using the Mystery Shopper technique, compliance with the applicable direct service standards (in POKs), telephone and mail service standards in practice were investigated. TAURON received very high scores in all client contact channels. Mystery Shopper Index for individual contact channels Direct Customer Service

86%

Telephone Customer Service

88%

Email correspondence

92%

Traditional mail

94%

The high standards and professionalism in customer service were recognised by the Management Observatory Foundation leading to TAURON Obsługa Klienta receiving the „Customer Friendly Company” emblem for the third time in 2014. This is a research and certification programme aimed at assessing customer satisfaction and probability of a company recommendation. It is an award from customers for high quality cooperation awarded based on results of independent surveys conducted by the organiser – the Management Observatory Foundation.

5.5. Client education 5.5.1. Description of the approach In TAURON Group we attempt to maintain client relations that are not limited only to providing products and services.

77



rational use of electricity,



environmental impact abatement,



issues related to customer security,



raising awareness of the energy sector.

The educational and information functions are mostly implemented through actions organised under TAURON Fuses. Within the framework of the programme, employees of TAURON warn various groups of recipients against numerous threats they may be exposed to as electricity consumers . („Tauron Fuses”) The rational use of electricity and care for natural environment is the next area in which TAURON is trying to develop awareness of its customers. The Group’s approach arises mainly from responsibility for the natural environment and future generations.

5.5.2. Sharing sector knowledge Due to its complexity and specific nature the energy sector is not easy for others to understand. Description of the approach Therefore, for the TAURON Group, building awareness of the energy sector, not only among business and institutional clients but also among individual clients is extremely important. To achieve this goal, Group companies carry out numerous campaigns to explain basic terms in the sector, as well as how it operates

Best practice - TAURON Ciepło – Training Academy for customers and representatives of local government In 2014 two conferences were held, targeting

training free of charge to representatives of

customers and representatives of local authorities

cooperatives, communities, design offices and

to expand knowledge and raise awareness of

representatives of local governments, enhancing

customers concerning the energy and heat sector.

their knowledge of heat products.

The meeting was attended by experts of TAURON Ciepło and academics from AGH University. The Training Academy of TAURON Ciepło (ASTC) is an educational project dedicated to the most active stakeholders in which TAURON Ciepło provides

78

Each conference was attended by about 70 persons. During eight hours of training, five lectures and four presentations were delivered. The Company intends to continue offering training.

Best practice - TAURON Ciepło – Educational programme “Hot water – reliable and safely” In 2014, customer conferences were organised and

Representatives of companies provided their

a series of meetings for inhabitants in order to

professional support, assisted in the estimation of

present possibilities and benefits arising from the

investment costs and offered their assistance to

use of systemic heat for the purpose of hot water

building owners in completing the documents

heating. „Hot water – reliably and safely” is the

required for the settlement of investments and

educational programme addressed to customers

obtaining the reimbursement of a part of

and

expenditure incurred. In 2014 a conference with a

inhabitants

Siemianowice

of

Śląskie.

Katowice,

was

debate was organised for about 100 key customers

implemented in cooperation with the company

from the area of Katowice, Chorzów, Siemianowice

Elektrociepłownia Chorzów ELCHO. Experts of

Śląskie. Within the framework of the project many

TAURON

ELCHO

individual meetings with inhabitants and building

participated in meetings with governing bodies of

administrators and representatives of housing

housing communities and in inhabitants’ meetings,

communities

during which they presented concepts of typical

promoting hot water from the network is continued

internal installations of hot water supplied from the

in various forms, inter alia, in the form of the

network.

campaign on „New colour of hot water”.

Ciepło

and

The

Chorzów,

EC

project

Chorzów

were

held.

The

programme

Best practice - TAURON Sprzedaż – Marketing campaign “We set a good example” The aim of the initiative was to increase the

„We set a good example” is the follow-up of

awareness of TAURON customers (both individual

maintenance activities conducted on the internal

clients and owners of SMEs) on the attractiveness

area of TAURON Sprzedaż, i.e.: „Check who your

of the offer and business standards distinguishing

energy supplier is”, in cooperation with TOE, „If you

TAURON in view of unfair actions of competitors.

don’t recognise it, don’t open it” in cooperation with

TAURON respects client privacy, provides full

the Foundation of Active Citizens.

information concerning the offer and uses transparent documents bearing the company logo.

79

Best practice - TAURON Dystrybucja – Opole Energy Congress TAURON Dystrybucja, in cooperation with the

Another item of the project was a study tour.

Marshal Office, Economic Development Centre in

Project participants comprised representatives of

Opole, Regional Centre of Eco-energy, Agricultural

the

Advisory Centre in Opole, organised the Second

representatives of the University of Technology and

Opole Energy Congress under the title „Energy

University of Opole, professionally associated with

efficiency in the municipality and in the company”. It

RES. Participants of the meeting were introduced

was attended by over 150 representatives of local

into functioning of the Hydroelectric Power Plant in

governments, economic institutions, entrepreneurs

Nysa and the wind farm in Lipniki, belonging to

and scientists. Representatives of universities from

TAURON Ekoenergia, the Nysa Region and the

Germany and USA were also present, providing

modern GPZ Cieszanowice (participating in the

detailed information on aspects of RES functioning

consumption of ecological energy) were also

in their countries. The meeting provided the

presented . The additional element of the Opole

opportunity for sharing knowledge on regulatory,

Congress was awarding of the distinction – the

infrastructural, systemic

as well as

„RES of Opole” statue to the companies TAURON

opportunities and threats for further development

Dystrybucja Branch in Opole and TAURON

of energy management, both on the national and

Ekoenergia in the Business and Eco-energy

regional

currently

category. The Congress was organised under the

implemented investments were discussed. The

patronage of the Ministry of Economy, Ministry of

total

Agriculture, Energy Regulatory Office, Opole

level.

The

programme

issues

planned

comprised

and

over

twenty

professional presentations.

Marshal

Office,

regional

institutions,

University of Technology and University of Opole.

Best practice - TAURON Wytwarzanie – Cooperation with secondary schools and universities In March 2014 TAURON Wytwarzanie signed a

Lectures, study tours and laboratory classes were

letter of intent with Technical Secondary School in

organised for students and teachers by scientists

Jaworzno and the AGH University of Science and

from AGH. Within the framework of the agreement

Technology in Kraków. The parties established

study

cooperation in the scope of sharing and using the

accompanied by guardians in the facilities of

experience gained and information on the current

TAURON Wytwarzanie, lectures will be also held

events

concerning the experience gained during the

in

the

energy,

electrotechnics

electronics sectors. Technologies.

80

and

tours

will

be

organised

for

pupils

implementation of research works associated with Carbon Clean Technologies.

Best practice - TAURON Sprzedaż – Energy workshop and conference for business clients In 2014 TAURON Sprzedaż organised three

and Katowice, over 200 clients representing

initiatives addressed to strategic clients, public

medium business segment participated. They had

institutions and medium-sized business and public

the opportunity, inter alia, to obtain information

institutions, aimed at better introduction into topics

concerning micro-installations and evolution of the

associated with the functioning of the energy

RES support system.

sector and strengthening of business relations:

– workshop concerning energy purchase based on

– energy workshop – participants of the meetings

the public procurement law – during five meetings

became acquainted, inter alia, with the secrets of

all over Poland, 120 clients were trained –

the sector functioning and ethical criteria of

representatives of local governments, hospitals,

decision-making in emergency situations. During

universities, municipal companies and public

two issues of the workshop, held in Katowice, over

entities. Representatives of the team for public

200 strategic and key customers participated,

customers of TAURON Sprzedaż conducted customers, step by step, through all stages of the

– conferences „Partnership in Business” – in three

tender for energy purchase.

issues of the meetings held in Kraków, Wrocław

6.

TAURON Group Employees 6.1. Our employees – a strategic approach 6.1.1. Our employees – a strategic approach

Through the daily work and commitment of its employees the TAURON Group builds its value and strengthens its competitive position. The TAURON Group is aware of this and that is why it is so important to care for the

continuous development and safety of the staff, internal communication and raising the level of employee satisfaction with their duties. These tasks are not easy considering the fact that in TAURON structures specialists of various disciplines are employed, ranging from mining and energy to accounting and marketing. An additional challenge in this context,

81

arising from demographic and personnel changes is embodied by issues associated with managing knowledge and diversity inside the organisation. In TAURON Group companies, 25,402 persons are employed based on employment contracts. 2,181 persons are employed in total on terms other than an employment contract. The company employing the largest number of people is TAURON Dystrybucja – over 8 thousand employees. The smallest company included in the report is TAURON Sprzedaż GZE employing 15 persons.

82

Employment by type of fixed contract by gender – summary table NUMBER

TAURON

EMPLOYEES

Energia

OF

Polska

Kopalnia

Wapienia

Czatkowice

TAURON Ciepło

TAURON

TAURON

TAURON

Ekoenergia Wydobycie Wytwarzanie

TAURON

TAURON

Obsługa TAURON Sprzedaż Klienta

Sprzedaż

GZE

TAURON

Dystrybucja

TAURON

TAURON

Pomiary

Serwis

TOTAL

Dystrybucja Dystrybucja GRAND

WORKING UNDER AN EMPLOYMENT CONTRACT, INCLUDING: FULL TIME

324

295

1 765

208

6 058

3 218

2 79

251

10

7 992

1 560

861

25 341

women

140

52

379

48

699

513

1 847

130

6

1 403

263

25

5 505

men

184

243

1 386

160

5 359

2 705

952

121

4

6 589

1 297

836

19 836

PART TIME:

5

1

2

1

2

5

10

5

5

23

2

0

61

women

1

1

1

1

2

4

6

2

2

14

2

0

36

men

4

0

1

0

0

1

4

3

3

9

0

0

25

TOTAL

329

296

1 767

209

6 060

3 223

2 809

256

15

8 015

1 562

861

402

83

25

6.1.2. Employment conditions In the TAURON Group workplace management is based on the underlying documents regulating individual issues. These include the Labour Code, organisational by-laws, Company Collective Agreements, employee

remuneration regulations, remuneration policies, job descriptions, staff and bonus regulations for individual companies. The type and scope of detailed guidelines is individually adjusted to the specific character of a given company’s activities. In the entire TAURON Group, 95.2% of employees are covered by collective agreements.

84

Number of employees by activity region, age, gender and type of agreement NUMBER OF EMPLOYEES

TAURON

Kopalnia

Polska

Wapienia

Energia

Czatkowice

TAURON Ciepło

TAURON

TAURON

TAURON

Ekoenergia Wydobycie Wytwarzanie

TAURON

TAURON

Obsługa

TAURON Sprzedaż

Klienta

Sprzedaż

GZE

TAURON TAURON

Dystrybucja

TAURON

Dystrybucja Dystrybucja GRAND Pomiary

Serwis

TOTAL

EMPLOYMENT CONTRACTS TOTAL NUMBER OF EMPLOYEES WORKING

UNDER AN

EMPLOYMENT CONTRACT,

INCLUDING:

329

296

1 767

209

6 060

3 223

2 809

256

15

8 015

1 562

women

141

53

380

49

701

517

1 853

132

8

1 417

265

men

188

243

1 387

160

5 359

2 706

956

124

7

6 598

1 297

861 25 402 25

5 541

836 19 861

INCLUDING: FOR A TRIAL PERIOD:

0

2

12

0

21

0

12

1

0

1

0

0

49

women

0

1

5

0

1

0

6

1

0

1

0

0

15

men

0

1

7

0

20

0

6

0

0

0

0

0

34

PERIOD:

15

4

11

1

171

0

188

31

0

3

2

0

426

women

7

2

4

1

6

0

135

19

0

2

1

0

177

men

8

2

7

0

165

0

53

12

0

1

1

0

249

PERIOD:

308

290

1 739

207

5 868

3 223

2 593

223

15

8 011

1 560

women

129

50

367

48

694

517

1 699

111

8

1 414

264

men

179

240

1 372

159

5 174

2 706

894

112

7

6 597

1 296

6

0

5

1

0

0

16

1

0

0

0

FOR DEFINITE

FOR INDEFINITE

FOR

REPLACEMENT:

85

861 24 898 25

5 326

836 19 572 0

29

women

5

0

4

0

0

0

13

1

0

0

0

0

23

men

1

0

1

1

0

0

3

0

0

0

0

0

6

Percentage of employees covered by collective agreements TAURON Polska

Kopalnia

Wapienia TAURON

Energia Czatkowice

TAURON

TAURON

TAURON

Ciepło Ekoenergia Wydobycie Wytwarzanie

TAURON

TAURON

Obsługa TAURON Sprzedaż Klienta Sprzedaż

TAURON

TAURON

Pomiary

Serwis

TOTAL

TAURON Dystrybucja Dystrybucja

GZE Dystrybucja

Total

number of employees (from G410)

25 329

296

1 767

209

6 060

3 223

2 809

256

15

8 015

1 562

861

402

0

296

1 453

209

6 060

3 223

2 545

256

15

7 993

1 477

661

188

0,00%

100,00%

82,20%

100,00%

100,00%

100,00%

90,60%

100,00%

100,00%

99,70%

94,60%

Total number of

employees covered by collective

agreements

24

Percentage of

employees covered by collective

agreements

76,80% 95,20%

On the other hand, the basic document defining the rules of the Group’s operations, cooperation within companies and cooperation with the external environment, and defining Group values is TAURON Group Code of Business Ethics. It is the basic tool used to implement a consistent corporate culture based on business ethics and corporate values.

86

Best practice – TAURON Dystrybucja – streamlining position names and the bonus system In 2014 in TAURON Dystrybucja, TAURON

employees with the same obligations and rules of

Dystrybucja Serwis and TAURON Dystrybucja

remuneration are consistent.

Pomiary a project was conducted to streamline the names of positions and develop a consistent system of basic salaries for employees in these three companies. As a consequence, in all branches, position names, scopes of responsibility of

Managers of individual business units were engaged in the process. Consequently, consistent names and common job descriptions were developed, adjusted to the new organisational structure implemented as of 1 January 2015.

6.1.3. Equality and diversity In the TAURON Group, in accordance with the adopted Code, the rule of equal treatment of employees and offering them equal development opportunities apply. All forms of discrimination by age, gender, religion, sexual orientation, appearance, disability or diversity of opinions are unacceptable. This rule applies in the recruitment process, during the working relationship as well as in case of employee resignation. Compliance with the provisions in the Code of Ethics is supervised by Ethics Commissions established in each company. In case of receiving a notification of behaviour non-compliant with these ethical provisions, the commission initiates explanatory proceedings to solve the issue. Due to the specific nature of activity of some Group companies, i.e. TAURON Wydobycie, TAURON Wytwarzanie and TAURON Dystrybucja, men constitute the major part of employees in the Group – over 78 percent. The proportions are reversed in TAURON Obsługa Klienta where women constitute over 65 percent.

87

Composition of supervisory boards and employees by employment category, gender, age, membership in minorities and other diversity indicators TAURON TOTAL

Polska

Kopalnia

Wapienia

Energia

Czatkowice

TAURON Ciepło

TAURON

TAURON

TAURON

Ekoenergia Wydobycie Wytwarzanie

TAURON

TAURON

Obsługa TAURON Sprzedaż Klienta

Sprzedaż

GZE

TAURON

Dystrybucja

TAURON

TAURON

Pomiary

Serwis

Dystrybucja Dystrybucja

TOTAL

NUMBER OF

EMPLOYEES

25

(G4-10)

402

329

296

1 767

209

6 060

3 223

2 809

256

15

8 015

1 562

861

women

5 541

141

53

380

49

701

517

1 853

132

8

1 417

265

25

188

243

1 387

160

5 359

2 706

956

124

7

6 598

1 297

836

men

19

861

The TAURON Group has experienced employees. Persons aged from 30 to 50 represent the most numerous employee group (60 percent). Every third employee is over 50.

88

Composition of employees by age and gender TOTAL ≤ 29

30-50

51 ≤

2 207

15 340

7 855

360

3 163

2 018

1 847

12 177

5 837

PERCENTAGE OF EMPOLYEES BY AGE [%]

9%

60%

31%

women

6%

57%

36%

men

9%

61%

29%

NUMBER OF EMPOLYEES BY GENDER women men

36 persons sit on the companies’ management boards. Most management board members (55 percent) are over 50.

Composition of management boards by gender and age TOTAL ≤ 29

30-50

51 ≤

NUMBER OF EMPLOYEES IN THE MANAGEMENT BOARD TOTAL

0

17

19

women

0

2

1

men

0

15

18

PERCENTAGE COMPOSITION OF THE MANAGEMENT BOARD ACCORDING TO AGE AND GENDER [%]

TOTAL

0%

47%

53%

women

0%

67%

33%

men

0%

45%

55%

6.1.4. Employee benefits and employer branding The rule of diversity is also used in relation to the issue of access to allowances and benefits for full-time employees and temporary employees.

89

Depending on the company, employees are offered additional benefits transcending the labour law such as the following: 

Employee Pension Scheme



Group life insurance



Multi Sport card for employees and their families



Discount for electricity purchase



Free coal supply



Co-financing of transfers to work



Subsidy for lunch



Employees’ Loan and Benefit Fund

6.1.5. Sharing knowledge with students An essential element in employing highly qualified staff is hiring new specialists. A reasonable strategy should not only help in filling the generation gap but also guarantee the continuous inflow of the best possible specialists. Contrary to common opinion, this is a challenging task, mainly due to the specific nature of activity of some companies, inter alia, TAURON Wydobycie, TAURON Wytwarzanie and TAURON Dystrybucja, where employees must meet strictly defined requirements. This means that for TAURON Group investing in future staff is equally important as caring for the development of current employees. This process goes on at many levels and at various stages of education. Measures undertaken in this scope by TAURON Wydobycie serve as the best example.

Best practice – TAURON Wydobycie – Partnership cooperation with universities and schools Considering achieving of the goals related to the

TAURON Wydobycie has already conducted

employment policy in the hard coal mining sector

activities aimed at acquiring the adequately

and growth of the sector efficiency, assumed in the

educated middle and top level technical staff. The

strategic plans of the company, for several years

Company has become one of the signatories of the

90

agreement on cooperation between the AGH



cooperation with authorities of the

University of Science and Technology in Kraków,

university in relation to the improvement

the city of Jaworzno and Południowy Koncern

of the educational process and equipment

Węglowy (currently TAURON Wydobycie). This joint

base,

initiative is aimed at supporting the functioning of



the AGH Field Educational Centre in Jaworzno, with

for the implementation of tasks included in

the seat at John Paul II Group of Secondary Schools

the scope of the Company activities,

no 3, mainly in the scope of education at the faculty of Mining and Geology, with the speciality of



engineering.

Within

the

extension

of

joint research and educational initiatives under the European Union programmes,

underground deposits exploitation techniques and fossil processing and the faculty of environmental

using the scientific potential of universities



participation in post-graduate studies,

this

specialised studies, scientific conferences,

cooperation, this agreement also covered the city

training activities and courses organised

of Libiąż.

by the university,

TAURON Wydobycie has also concluded an



informing of staff needs of the Company

agreement on cooperation with the Silesian

and

University of Technology in Gliwice and two

university graduates in the plants of

patronage

TAURON Wydobycie S.A.

agreements: with the Group of

Secondary Schools no. 6 in Jaworzno and the Group of Schools in Libiąż. These schools run classes of Mining Technical School with a deposit mining speciality. The agreements concluded enable, inter alia:

employment

opportunities

for

– organising professional placements and practical classes and employing graduates of patronage classes whose average grade is at least 3.5 in the learning cycle, pass the maturity exam and the exam confirming professional qualifications, a

– taking scientific placements, student internships

professional exam. TAURON Wydobycie also

and apprenticeships by students of faculties

provides a funded scholarship to the six best

associated with the company’s activity, including:

graduates of patronage classes in case they



making equipment and materials available for the execution of diploma theses and doctoral dissertations,

91

continue university education at faculties defined by the company. At the end of the academic year, the company funds awards for each class.

In 2014 TAURON Polska Energia also continued its participation in the educational project of the Lesław A. Paga Foundation – Energy Academy under which the trainees of the foundation take a training in TAURON Polska Energia. Under the project’s fourth edition, three trainees were accepted. TAURON Ekoenergia also cares for future staff. In 2014, the „green” company of TAURON Group enabled the implementation of professional programmes, school practices and student placements in the area of renewable energy sources, accounting and administration. They were held in Jelenia Góra, Wrocław and Nysa. Students of secondary schools and Polish and foreign universities were enrolled to the placement programmes. In 2014, in total, 13 persons, including two foreigners, took their professional training in TAURON Ekoenergia.

Best practice – TAURON Dystrybucja – Academy of Knowlage The main assumption of the „Academy of

AGH University of Science and Technology in

Knowledge” of TAURON Dystrybucja established in

Kraków.

2009 is to promote the company as the desirable employer, cooperate with universities as well as share practical knowledge supplementing the theoretical knowledge with students. In 2014, employees of the company, simultaneously acting as internal trainers, delivered six lectures dedicated, inter alia, to students of Częstochowa University of Technology, Silesian University of Technology and

In the presentations, among others, issues associated with infrared tests and security automation were discussed. The students received the lectures with great interest. As a result, in 2015 the next issue of the Academy of Knowledge is planned. The subjects of the lectures will cover, inter alia, the balancing market, transmission line easement and smart metering.

Best practice – TAURON Polska Energia – Singning the framework agreement on cooperation with the University of Technology in Gliwice In November 2014 TAURON Polska Energia signed

position of the TAURON Group companies in joint

a

actions.

framework

agreement

with

the

Silesian

University of Technology in Gliwice related to the educational, scientific, research and development and advisory activities. The objective of this agreement is to use the experience and scientific output of the university as well as the potential and

92

Within the framework of the agreement, the parties have envisaged, inter alia, the organisation of student internships and placement in companies belonging to the TAURON Group, cooperation in the scope of fund raising for joint projects and

research-innovative initiatives, organisation of

implementation of research topics in the form of

post-graduate studies for TAURON employees and

diploma thesis and scientific dissertations.

Due to its market position on the economic map of Poland, in the eyes of future graduates TAURON is perceived as an attractive employer. The ambition of TAURON Group is to maintain this trend in upcoming years through continuous education of future staff.

6.2. Striving for continuous improvement 6.2.1. Employee training and development According to the principle "not to go forward is to go backward", TAURON Group companies pay a lot of attention to upgrading employee qualifications.

This assumption is being implemented through the employee development policy and various training forms aligned to the specific nature of the activity and needs of each company. Across the Group employees may participate in various types of conferences, courses, workshops, seminars, studies and symposiums to upgrade their qualifications. The training policy is regulated by companies’ internal procedures, such as: Regulation issued by the CEO of TAURON Wydobycie defining the procedural rules in cases associated with referring employees to training, not arising from the legal regulations, in order to acquire or upgrade professional skills and qualifications in out-of-school forms and other forms of training, regulating the issue of the associated additional benefits. 

Regulations on granting benefits associated with upgrading professional qualifications by employees in the form of non-residential 1st and 2nd degree studies and post-graduate studies.



Regulation issued by the CEO of TAURON Wydobycie concerning the rules of referring mine employees in TAURON Wydobycie to professional training courses and their costs.



Order issued by the CEO of TAURON Wytwarzanie concerning training/conferences for employees of TAURON Wytwarzanie.



Ordinance concerning the regulations of education/supplementary education of employees of Południowy Koncern Energetyczny.

93



Employee Development Policy in TAURON Obsługa Klienta.



Employee training rules in TAURON Obsługa Klienta.



Rules on co-financing of studies in TAURON Obsługa Klienta.



Rules on foreign language learning in TAURON Obsługa Klienta.



System of development and carrier management in TAURON Polska Energia.



Regulations on upgrading professional qualifications in TAURON Polska Energia.



Talent Management Programme in TAURON Polska Energia.



Regulation issued by the CEO of TAURON Ekoenergia concerning upgrading professional qualifications by employees of TAURON Ekoenergia.



Regulations on upgrading professional qualifications and education of employees of PEC Katowice.

Training activities target managers and lower level employees. Accordingly, persons employed at individual positions in the Group have a possibility to select various training methods assisting them in developing their knowledge and gaining new interpersonal skills useful for the performance of daily duties and fostering their self-development. In 2014, the average number of training hours in the TAURON Group per employee amounted to 17.

94

Average annual number of training hours per employee, according to employment structure and gender. TAURON Polska Energia

TOTAL

Kopalnia Wapienia Czatkowice

TAURON Ekoenergia

TAURON Ciepło

TAURON Wytwarzanie

TAURON Wydobycie

TAURON Obsługa Klienta

TAURON Sprzedaż.

TAURON Sprzedaż GZE

TAURON Dystrybucja

TAURON

TAURON

Dystrybucja Pomiary

Dystrybucja Serwis

F

M

TOTAL

F

M

TOTAL

F

M

TOTAL

F

M

TOTAL

F

M

TOTAL

F

M

TOTAL

F

M

TOTAL

F

M

SUMA

F

M

TOTAL

F

M

TOTAL

F

M

TOTAL

F

M

TOTAL

F

M

TOTAL

75

60

63

138

104

111

16

64

54

272

175

195

20

32

28

123

30

49

88

69

72

32

42

38

16

78

72

0

0

0

22

33

32

8

16

11

0

54

54

45

27

30

69

85

77

39

15

20

106

39

45

37

8

21

17

11

12

59

20

25

58

37

47

77

78

77

16

4

8

26

36

34

4

1

2

32

15

15

POSITIONS

17

20

19

35

63

50

22

18

21

25

25

25

12

23

17

2

3

3

25

23

24

23

24

23

44

55

49

33

32

33

10

17

15

1

0

1

12

65

53

BLUE COLLAR POSITIONS

3

13

12

0

0

0

0

1

1

4

7

6

0

17

17

4

17

16

1

1

1

22

18

18

0

0

0

0

0

0

1

17

17

0

0

0

0

23

23

18

17

17

45

68

58

19

5

8

27

18

20

16

18

18

4

15

14

23

9

11

24

25

24

47

62

54

31

24

28

11

19

18

2

0

1

12

26

26

MANAGEMENT AND DIRECTORS TOP AND LOWER LEVEL MANAGERIAL POSITIONS OTHER ADMINISTRATIVE

TOTAL AVERAGE NUMBER OF TRAINING HOURS

95

6.2.2. Training addressed to employees Best practice – TAURON Dystrybucja – Academy of Internal Trainers In 2014 internal training courses were conducted



managing conflicts.

on professional and general development topics. The offer prepared by the Academy of Internal Trainers comprises, among others, such topics as: 

infrared

thermography

in

power

engineering,

Internal training activities are mainly dedicated to employees of TAURON Dystrybucja, TAURON Dystrybucja Serwis and TAURON Dystrybucja Pomiary. In 2014, 636 persons in total were



measurement systems,



balancing difference in the DSO grid,



effective team work,

trained. In 2015 the company plans project followup and extension of the training offer and recruitment of new trainers.

Best practice – TAURON Wydobycie – Training for employees and benefits for employees upgrading professional qualifications in the form of studies In order to acquire and upgrade professional skills

Based on feedback, the HR Office keeps a database

and

of training companies.

qualifications

in

TAURON

Wydobycie,

procedural rules were introduced concerning issues related to referring employees to training not arising from the Labour Code and the Act on geological and mining law, including executive acts. The

company

covers

costs

of

employee

participation in training and costs associated with participation

for

training

held

outside

Taking into account the development of abilities and skills, in order to enable employees of TAURON to upgrade their professional qualifications, the following benefits are provided:

the

– obligatory – in the form of training leave and paid

company’s premises. Following completion of

release for the whole or a part of the working day,

training employees fill in an evaluation sheet,

for the time required to arrive on time to the site of

providing their feedback on the professional

the obligatory classes and for their duration, and

preparation of the training, practical applicability of the knowledge provided, organisation and training conditions, the trainers’ communication skills and the general fulfilment of participant expectations.

96

– additional benefits – such as reimbursement of education costs and, especially in case of postgraduate

studies

–

reimbursement

of

accommodation and travel costs – in case the school is located at a distance over 100 km away from the employer’s seat.

Best practice – TAURON Dystrybucja – Occupational re-training In 2014 an employee cross-training project was

representatives was conducted so that they can

developed for employees whose job description

provide support to employees and supervisors in

changed due to organisational changes introduced

planning development tasks in the cross-training

under the Single Distribution project. In accordance

process.

with this project, employees affected by change obtain a cross-training plan agreed individually during a meeting with his/her supervisor and an HR department December

representative.Consequently, 2014

a

workshop

for

in HR

The project’s expected final outcome should be for employees to gain new qualifications and skills to be effective at a new position. The occupational cross-training project will last until mid-2015.

Best practice – TAURON Obsługa Klienta – E-learning for new employees “Welcom on board!” The training was prepared specially for new



to within its operations?

employees and those who joined TAURON Obsługa Klienta from other companies in TAURON Group (in



what is the structure of the organisation?



what normative acts apply to TAURON

the migration and recruitment process), although employees with a longer period of service may also

Group?

gain many practical guidance in this training. This training facilitates orientation. The „Tauronek”





what does TAURON Group do?



what are TAURON’s guiding corporate values?

97



how is it possible to develop within the organisation?

what is the organisation’s vision and mission?

what kind of benefits are available to each employee?

small bull is a guide to acquire information: 

who does the organisation render services



how to

operate

the

systems and

applications binding in the company? In 2014, 588 persons were trained this way. Each participant taking the training evaluated its

usefulness. On a six point scale, the average score

upgraded as needed (changes implemented in the

was 5.18 in 2014. The training is available to all

company).

employees, without limitation, and its content is

Best practice – TAURON Sprzedaż – Monday “Electrifying thought for new week” This practice is based on sending an „Electrifying

When implementing this best practice, 24

thought for the new week” to employees every

newsletters were sent to employees. Following

Monday, i.e. a quotation from a recognised world

completion, all thoughts were collected in a single

business and science authority with a commentary,

presentation and placed on Tauronet in the Training

developing the thought, construed to inspire

and development section, so that each user can

employees to implement desirable behaviours,

come back to them and new employees may

attitudes, creativeness in their approach to daily

review them.

duties, etc. Accordingly, employees had a possibility to track best practices in certain skills.

6.2.3. Management training Developing managers is extremely important in each company since reasonable management makes it possible to maximise employee performance. Particularly satisfying results are achieved if the working atmosphere in the team is based on mutual assistance and trust. This means that managers are not only sent to training courses to upgrade their hard skills but also soft skills. What is important, training activities focus on upgrading skills of employees already holding managerial positions and those demonstrating abilities to take such positions in the future. Each company implements its management development programme individually, depending on demand and conditions.

Best practice – TAURON Polska Energia – Talent Management Programme The Talent Management Programme is an

seasoned

exclusive programme for high potential and high

management potential. In January 2014 the third

flying employees. Participants are divided into

programme was launched to last over two years.

groups with two being dedicated to managers:

Improving management skills entails development

98

managers

and

persons

with

activities in the form of post-graduate studies,

In 2014, the „Company with Energy” project, co-

courses, coaching and individual training.

financed by EU funds ended. In this project, managers had a possibility to upgrade their jobrelated skills.

Best practice – TAURON Sprzedaż – “TAURON ACADEMY – Key Account Management” The project’s aim was to support the organisation

Creating a system facilitating the enforcement of

in implementation of its strategic tasks through

sales targets after project completion.

more effective use of the Sales Department potential. The project has mainly focused on the development of „soft” skills. Participants included employees of the Business Client Departments of TAURON Sprzedaż and the Business Client Sales Area of TAURON Sprzedaż GZE. The project ran from October 2012 to June 2014. The

„TAURON

ACADEMY

–

Key

Account

Management” project aimed to do the following:

In 2014 training continued, followed by measuring results, changes in employee attitudes and skills. The project culminated with a detailed report. Results measurement took the form of one day of coaching on job meetings for participants to define the current level of specific competences and compare them to each participant’s targets. Consequently, individual reports for each employee

Enhancing sales conversion and efficiency in

were prepared, containing a description of the

connection with switching from sales targets

changes

expressed as the volume of energy consumption to

development activities. The final effect also

sales targets expressed as a margin.

included a collective report depicting the overall

Improving the skills of Business Client Department employees.

observed

and

proposed

follow-up

project’s process and outcomes. The report and its results were discussed at a meeting with the management boards of TAURON Sprzedaż and TAURON Sprzedaż GZE.

Best practice – TAURON Ciepło – “Leader’s Academy” In 2014 the „Leader’s Academy” training project,

framework of the „Leader’s Academy”, all persons

addressed to managers and surveillance staff of

employed in the company, formally or informally

TAURON Ciepło was carried out. Within the

managing employees, were enrolled in the training.

99

The objective was to prepare supervisors to run

feedback and performing evaluation interviews

reliably

were developed. 320 people participated in training.

and

impartially

the

first

Annual

Performance Summary; skills of constructive

Best practice – TAURON Wytwarzanie – training for managers In

2014

managers

participated

in

various

conferences, seminars, workshops and external training courses. The thematic scope comprised not only issues associated with the company’s core business, i.e. energy issues and legal regulations,

but also topics associated with accounting and management. In addition, top level managers had an opportunity to polish their foreign language acumen in classes run by language teachers.

Best practice – TAURON Obsługa Klienta – “Manager’s Zone” „Manager’s Zone” is a space in the TAURON Group’s

In addition, in the „Manager’s Zone” links are in

corporate intranet called Tauronet, dedicated to

place to the following topics:

managers. Each manager has access to the most



manager’s library,



most important tools (Manager’s Portal –

important information: 

formal and legal aspects of a manager’s

easy access to applications used on a daily

job, 

own

basis). and

employee

professional

development.

The role of the Zone is to facilitate access to information on labour law, finance and tasks in management positions.

Best practice – TAURON Ekoenergia – management education In 2014, the company’s managers participated

The topical scope comprised issues related to

mainly in open enrolment training, conferences,

water, wind energy and biomass, the RES Act,

seminars and forums.

financial and economic training and management training.

100

Best practice – TAURON Dystrybucja – “We are building a team of leaders” The „We are building a team of leaders” project



implementation of work improvement measures.

consists of two programmes. The development programme, implemented in 2014, targeting top level managers, comprising about 70 leaders. Its objective is to strengthen managerial skills in terms of the new business model and the new model of leadership competence: 

strengthening leader roles,



strengthening (strategic management,



leader thinking, human

The second programme is, on the other hand, addressed to top level managers and comprises 30 leaders. Its objective is to provide knowledge of innovative

and

progressive

organisation

management methods (building a pro-effective competence

culture, new trends in strategic management),

performance

strengthening managers in modern organisation

resources

building. The

development programmes

for

management, decisiveness, change and

managers focus on building leadership competence

innovation management, customer focus),

across the whole organisation and responding to

improvement of managerial effectiveness,

the challenges managers face.

6.3. Communication and knowledge sharing and satisfaction 6.3.1. Communication and knowledge sharing Management of information exchange, sharing knowledge and experience as well as engagement and encouraging employees to provide feedback is a huge challenge for such a big group like TAURON.

Due to the diversified nature of work and dispersion of employees across an extensive area (the distribution grid of TAURON covers almost a fifth of Poland’s landmass), it is necessary to employ various forms of communication. Tauronet is the most powerful communication tool in the TAURON Group, i.e. the Group’s shared intranet. It currently caters to almost 16.5 thousand users in 270 geographical locations. The structure and functionalities of Tauronet resulted in its inclusion in the prestigious Nielsen Norman Group list as being one of the top ten intranet systems of the world in 2015. Tauronet gives each user access to the Group’s current events. Each user also has his/her own individual zone on Tauronet to manage documents and information uploaded and share them with other co-workers, thereby creating new opportunities for team work. In addition – in dedicated

101

sections – employees may place public announcements, e.g. carpooling (the „Hitchhiking” section) or sharing culinary ideas. In case of employees without computer access, corporate magazines serve as a source of knowledge. Since 2008, the „Polish Energy Magazine” monthly has been published, presenting the latest events in TAURON’s various entities and news from the national and global energy sector. In 2014 the average monthly circulation of the magazine was 12 thousand copies.(Polish Energy Magazine). In addition, TAURON Wydobycie, TAURON Wytwarzanie, TAURON Ciepło, TAURON Dystrybucja, TAURON Ekoenergia, TAURON Obsługa Klienta have their own internal magazines called „Nasze Forum” („Our Forum”) published on a monthly basis. In „Nasze Forum” magazines, the latest information concerning life in a given company may be found. Many articles are written by employees who do not work in communication and PR business units, sharing their travel experience and passions with other co-workers. Besides group tools, companies have developed their own communication channels as well as tools and initiatives facilitating work and communication among co-workers.

Best practice – TAURON Dystrybucja – Communication of the “Single distribution” project Under the „Single distribution” project, extensive

Within the framework of the Open Days,

internal communication is conducted so that

information is cascaded. After the meetings of the

company employees are well informed and

management board with employees of the

understand why and in what direction the company

branches, the managers of the branches meets

follows. In this scope, numerous activities were

employees of all regions;

undertaken:

– project communication is handled on an on-

– once a year, the „Open Days” are organised.

going basis through internal publications, such as

These are meetings of the management board with

articles in „Nasze Forum” or the Newsletter

employees in all branches of the company. Their

dedicated to employees. On Tauronet, the „Single

goal is to summarise activities carried out so far

distribution” tab has been established to publish all

under the project and present plans for the future.

project-related information;

102

– the Team for Change Implementation has been

established to conduct open dialogue concerning

established in the company, comprising the

change;

management board of TAURON Dystrybucja, the „Single distribution” project manager, the director of HR Policy and Communication Department and leaders of trade union organisations. The Team was

– in each branch, the Team for Change Implementation has been established to support employees affected by change.

Best practice – TAURON Wytwarzanie – Organisation of export training for power plant employees Organisation

of regular

for

Moreover, participants expand their knowledge on

employees of Branches – Power Plants and CZ,

the Energy Law, RES, environmental protection and

facilitates the exchange of experience, establish

implementation regulations to these acts. In 2014,

closer cooperation, extend expert knowledge on

over 50 employees of Maintenance Control and

maintenance of energy installations, learn new

Chemical Laboratories were trained. The following

technologies and maintenance practices used in

plans include the commencement of initiatives in

various

the scope of acquisition of energy efficiency

branches.

The

expert training

training

is

regular.

Representatives of Maintenance Control share

certificates of origin.

their experience to expand knowledge and skills on maintenance control of generation units.

Best practice – TAURON Dystrybucja – Conference of the Managers In November 2014, the second Management

with

Conference of TAURON Dystrybucja was held. It

highlighting these topics. The conference was also

was attended by almost 400 managers from the

an opportunity to summarise measures taken in

head office and branches as well as TAURON

the Single Distribution project, exchange experience

Dystrybucja Serwis and TAURON Dystrybucja

and plans for future.-

Pomiary. The Management Board of TAURON Polska Energia also participated in the conference.

Management

Board

presentations

In the workshop part of the conference department and branch directors discussed process areas

The leading topic concerned the values of the

identified in the Distribution Area. All participants in

Distribution

teams considered how to implement processes

Area:

openness,

cohesion,

professionalism, responsibility and customer focus

103

from the perspective of our values.

The conference is a standing item in the schedule of managers meetings and in October 2015 the third annual staff conference is planned.

Best practice – TAURON Dystrybucja – Communication Audit In 2014 the second internal communication audit

The survey is anonymous and findings are

was performed. It consists of two parts: a survey

presented as collective reports. Issues audited

and in-depth interviews. All employees of TAURON

include

Dystrybucja, TAURON Dystrybucja Serwis and

supervisors

TAURON Dystrybucja Pomiary take part in the

communication – employee cooperation, sources

survey in an on-line version and printed version for

of information acquisition, level of identification

employees without access to e-mail. In-depth

with the company; in addition, communication tools

interviews are conducted with 70 employees

used in the company are assessed. Survey findings

representing a cross-section of business units.

are communicated to all employees. After the

managerial and

communication employees,

between operational

survey, action plans are devised with their effects being verified in the next audit.

6.3.2. Satisfaction of employees and building engagement In TAURON Group, employees are the most important; therefore, it is extremely important for them to feel well and desire to develop in the organisation.

To this end, the feedback from the employee satisfaction survey is invaluable. In 2014 a satisfaction survey on employment conditions and pay was conducted in three companies: TAURON Polska Energia, TAURON Sprzedaż and TAURON Sprzedaż GZE. TAURON Group has certainly still a lot to do in this area, in particular, to extend surveys to all companies, however, this topic is gaining credence in the plans devised by the units responsible for HR management, therefore, more work on this subject may be expected in the near future.

104

Best practice – TAURON Polska Energia – Employee satisfaction survey Its main objective was to recognise employee

work, level of company ties, work organisation and

opinions (excluding management board members

relations with co-workers.

and advisers) concerning the functioning of the company in relations with supervisors, level of pay satisfaction, market image, level of autonomy at

The questionnaire covered 76 percent of company employees. Survey results are analysed by the HR department.

Best practice – TAURON Sprzedaż and TAURON Sprzedaż GZE – Employee opinion survey The survey, circulated to all employees, was

style, staff selection, remuneration policy and

delivered electronically, in a manner ensuring

working conditions with several questions on each

anonymity to its participants. The obtained

topic.

response return rate reached 61 percent. The goal of the questionnaire was to acquire employee opinions on their job satisfaction and current practices

in

management,

focusing

on

remuneration and career paths. The analysis covered the atmosphere at work, management

The survey was performed under the project on „Designing the optimum remuneration policy in the Company – valuation of positions based on job descriptions”. Regular repetition of the survey is under consideration.

6.4. Safety of our employees 6.4.1. Safety of the TAURON Group employees Over 25 thousand people are employed in the TAURON Group. This figure is comparable to the population of a small city and, at the same time, signifies the employer’s great responsibility for employee health and safety. Management of occupational health and safety

nature of duties performed. In each company,

(H&S) in TAURON is based on the applicable legal

inspections of working conditions and compliance

regulations. Avoiding accidents remains

with H&S regulations and rules at individual posts

the

overriding goal. Due to the variety of areas in individual companies there are no group-wide health and safety regulations. Moreover, H&S regulations in a single company are aligned to the

105

are conducted. Some Group companies, due to the nature of operations conducted or the necessity arising from higher exposure of employees, implemented their

own safety management systems, procedures or

by the specific nature of the activities of these

policies. The most extensive regulations concerning

companies (handling processes related to coal

health and safety were developed in TAURON

mining, generation of electricity and heat as well as

Wydobycie,

their distribution) and the multiple types and levels

TAURON

Dystrybucja,

TAURON

Wytwarzanie and TAURON Ciepło. This is dictated

of risk employees face in doing their duties.

H&S systems and procedures in TAURON Group Kopalnia Wapienia Czatkowice The Company has a programme whose implementation leads to reduction of employees’ exposure to hazardous factors at a workplace. At least once a year the company receives a programme for approval, containing proposals of technical and organisational measures aimed at counteracting the risks and improvement of working conditions. The occupational risk is assessed and documented on an on-going basis. The training courses are conducted in compliance with the legal regulations applicable in this scope. Moreover, the following training courses are provided: – „department” training based on orders containing training topic and implementation deadline – training for positions in the maintenance of a mining plant – instructions for employees working at the railway siding ramps

TAURON Wydobycie The Integrated Management System (ZSZ) in the scope of H&S operates in the company, which fulfils the following goals: – Prevention of fatal, group and severe accidents at work and maintaining the safety standards at the average level of the last three years; – Elimination of hazards associated with the working process; – Enhancing occupational safety culture; – Elimination of hazards associated with the working environment;

106

– Mitigating employee risk of exposure to factors noxious for health in case their elimination is not possible; – Minimising the occupational risk during activities performed by employees at workstations; – Reduction of high risk behaviours among employees; – Enhancing occupational safety culture. The effectiveness of ZSZ is evaluated periodically, inter alia, during the annual management review. The evaluation covers the implementation of the planned tasks, in relation to the material and financial plan, as well as the H&S status in the company. As a result, the specification is prepared and the analysis of the conducted surveys on accidents at work, occupational diseases and near misses is performed. In addition, selected areas of the system are assessed through internal audits aimed at improvement of the system through adjustment and preventive measures. In 2014, 46 internal audits in total were conducted in the company, during which, within the continuous improvement of ZSZ, 82 irregularities and 58 observations were recorded. For each irregularity, a card of adjustment and preventive measures has been issued, within which the irregularity indicated was described and a person responsible specified the relevant measures in order to eliminate it, thus preventing the recurrence of the irregularity in the area examined.

TAURON Wytwarzanie The „Policy on quality, environmental protection and occupational safety” has been applicable in the company since 2013. Its goal in occupational safety is to ensure a high level of working conditions, including the prevention of accidents at work and occupational diseases, eliminating or limiting occupational environment factors noxious for health, identification and elimination of near misses. Moreover, company management has also committed to do the following: – continuous fulfilment of the requirements and obligations arising from the applicable legal regulations and other requirements, in particular, those related to environmental protection and occupational safety as well as the concluded contracts, – raising awareness, feeling of responsibility and engagement of employees in the scope of quality, environmental protection and H&S, – ensuring the adequate resources and funds enabling the implementation of this policy, – continuous improvement in the area of quality, environmental protection and occupational safety.

107

This policy is executed continuously through the internal normative acts implemented in the company, i.e.: orders, procedures, official instructions, circular letters, regulations, etc. The approach to management also comprises, e.g.: – implementation of detailed goals, – annual execution of the „H&S conditions improvement plan”, – mitigating (preventing the possibility) the adverse effects through the identification and monitoring of near misses, – organising the „Competition on occupational safety knowledge” in the Company, participation of the Company employees in the National Competition on H&S Knowledge Competition, – full execution of official instructions aimed improvement of H&S conditions, – conducting inspections and audits, both internal and external, – preparing analyses, including analyses of accidents at work and reports concerning the H&S status, and implementation of the conclusions, – participation in the competition: Employer – Organiser of Safe Work – 1st place on a regional level in 2014 for Elektrownia Jaworzno III Branch. The adopted approach to the management of the area is effective, which can be confirmed by: – monitoring and control of the status of the goals adopted, – monitoring and control of the implementation status of the „H&S conditions improvement plan”, – elimination of near misses, conducting the analyses of near misses, – exchange of experience in order to undertake preventive measures in the areas for improvement, – full execution of official instructions aimed improvement of H&S conditions, – on-going identification of needs and adjustment of internal normative acts to the legal requirements, – implementation of control and audit plans resulting in the written documentation containing records related to defaults or areas for improvement. The issued recommendations or cards of adjustment measures are checked in terms of their implementation and persons responsible for their implementation report their status,

108

– preparing quarterly reports and annual analyses of the H&S status, including conditions which are implemented and included in the measures undertaken in order to improve the working conditions, – analysing accidents, with special attention to source causes of accidents at work, introduction of adjustment measures in the form of post-audit instructions.

TAURON Ekoenergia The approach to managing H&S issues is mainly based on compiling two aspects, i.e. projects to apply technical and organisational solutions in the process of electricity production, mitigating the occurrence of potential hazards for employee health and life or enabling people to avoid risk to the highest extent possible, and, to a lesser extent, creating and implementing explicitly safe and positive solutions. The specific measure for assessing the effectiveness of the adopted H&S solution is the number and category of registered adverse incidents at work (the number of which was insignificant in 2014 and in previous years) which, as compared to the number of employees and the occupational environment are very demanding in terms of H&S, generates a positive image and confirms the relevant effectiveness of this approach.

TAURON Ciepło The approach to H&S management is aimed at avoiding and mitigating adverse effects and generating positive effects. In 2014, in TAURON Ciepło preparations to develop health and safety management procedures took place. Currently, work on implementation of health and safety management procedures are in progress, based on the formal instruction issued by the CEO concerning the development of health and safety management procedures in TAURON Ciepło. The objective of their implementation is to reach a high standard of working conditions and health protection of TAURON Ciepło employees, through ensuring safe working conditions as best practices, providing the required resources, creating and dispatching instructions and procedures in all areas where risks occur.

TAURON Dystrybucja The goals in H&S area management include: Elimination of electrical accidents and continuous reduction in the number of other accidents at work (monitored using the LTI indicator).

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Avoiding and mitigating adverse effects by raising the quality of personal protective equipment – the programme on implementation of clothing protecting against the discharge arc has been launched. Generating positive behaviours supported by including best examples (to be praised) in control evaluation. Assessment of effectiveness of the measures is performed based on monitoring LTI. (At the end of 2014 it was 3.89). As a target, the implementation of the 3-year plan assumes achieving 3.64. Within the adjustment and H&S level improvement measures, in 2014 the workshop for order issuers (persons organising work of electrical fitters on the power grid) was held in TAURON Dystrybucja. Accidents and near misses are communicated and discussed in the organisation on an on-going basis, and the resulting preventive measures are introduced.

TAURON Dystrybucja Pomiary In the company, the H&S Commission operates, representing all employees. It includes representatives of the employer and a physician providing preventive health care. The basic requirements concerning occupational safety are reflected in the staff rules applicable in the company. At workstations an occupational risk assessment was performed, covering all employees. Measures fostering the elimination of threats were introduced. Technical and organisational solutions were also provided in the scope of collective and personal protective equipment. The assessment of effectiveness of the measures is monitored using LTI which was 4.8 at the end of 2014. The company’s goal is to reduce the number of accidents at work to zero. In addition, accidents and near misses are communicated and discussed in the organisation on an on-going basis, and the resulting preventive measures are introduced. At present, TAURON Dystrybucja Pomiary is testing a new method of performing inspections based on a control list containing questions related to safe work organisation. The rules of inspection were prepared jointly with TAURON Dystrybucja and TAURON Dystrybucja Serwis. The procedures implemented and the training courses organised for employees generate measurable effects. Year by year significant decline is recorded in the overall number of employee accidents and in their frequency and severity. In 2013 in TAURON Group 229 accidents (including two fatal) occurred). A year later, this number fell by 30%. In 2014 the total number of accidents affecting employees amounted to 167 (including one fatal accident in TAURON Wydobycie). 37 accidents occurred in 2014 in the work done by subcontractors, including one severe accident.

110

Employee accident incidence (frequency of accidents) by gender (Injury rate – IR) TAURON

Kopalnia

Polska

Energia

Wapienia

Czatkowice

TAURON

TAURON

TAURON

TAURON

TAURON

TAURON

Obsługa Klienta

TAURON Sprzedaż

Sprzedaż

ACCIDENTS

0

2

9

2

47

4

10

women

0

0

2

0

0

0

men

0

2

7

2

47

4

Ciepło

Ekoenergia Wydobycie Wytwarzanie

TAURON

TAURON

GZE

TAURON

Dystrybucja

Dystrybucja

Dystrybucja Serwis

TOTAL

8

0

63

13

9

167

7

3

0

7

0

0

19

3

5

0

56

13

9

148

Pomiary

TOTAL

NUMBER OF ALL

INCLUDING: NUMBER OF FATAL

ACCIDENTS AT WORK

0

0

0

0

1

0

0

0

0

0

0

0

1

women

0

0

0

0

0

0

0

0

0

0

0

0

0

men

0

0

0

0

1

0

0

0

0

0

0

0

1

AT WORK

0

2

9

1

45

4

10

8

0

62

12

9

162

women

0

0

2

0

0

0

7

3

0

7

0

0

19

men

0

2

7

1

45

4

3

5

0

55

12

9

143

AT WORK

0

0

0

1

0

0

0

0

0

0

1

0

2

women

0

0

0

0

0

0

0

0

0

0

0

0

0

men

0

0

0

1

0

0

0

0

0

0

1

0

2

0

0

0

0

1

0

0

0

0

1

0

0

2

NUMBER

OF LIGHT ACCIDENTS

NUMBER

OF SEVERE

ACCIDENTS

NUMBER OF MASS

ACCIDENTS

111

women

0

0

0

0

0

0

0

0

0

0

0

0

0

men

0

0

0

0

1

0

0

0

0

1

0

0

2

0

6,69

4,35

1,16

3,62

32,13

0

7,29

10,44

6,4

ACCIDENT INCIDENCE RATE Accident frequency = (number of accidents at work x 1000 ) /

Average number of employees at the end of the reported period

9,01

7,69

11,81

women

0

0

0,97

0

0

0

2,54

12,05

0

0,81

0

0

0,73

men

0

6,69

3,38

9,01

7,69

1,16

1,09

20,08

0

6,48

11,81

10,44

5,67

0

10,5

46,89

94,5

75

37,5

26,6

20,13

0

38,97

38,31

48,33

48,48

women

0

0

9,5

0

0

0

28,29

21,33

0

30

0

0

25,84

men

0

10,5

57,57

94,5

75

37,5

22,67

19,4

0

40,09

38,31

48,33

51,4

ACCIDENT SEVERITY Accident severity = Total number of days of inability to work of

employees injured in accidents at work (lost days rate) / Number of

persons injured in accidents at work ( excluding persons injured in fatal accidents)

In relation to the previous year, the number of occupational diseased diagnosed among employees of TAURON Group has also decreased. In 2014 the indicator of occupational disease incidence (calculated as the number of cases of occupational diseases x 1000 in relation to the average number of employees) at the end of the reported period amounted to 0.04.

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6.4.2. Raising awareness on safety In accordance with the old medical adage "It is better to prevent than cure", TAURON, as an employer, pays a lot of attention to expanding employee knowledge on H&S to avoid dangerous incidents. In TAURON Group, employee training on H&S is provided, in accordance with the requirements of Polish Law. Training programmes are aligned to the job done and include general instructions on H&S, on-the-job- training, periodical training in H&S for administrative and office employees, periodical training in H&S for managers. Training is also provided to apprentices and trainees who work for short periods. External employees, contractors and subcontractors performing work commissioned by Group companies are not offered additional H&S training. However, when employees of external companies are hired, they are required to submit valid medical tests, as well as appropriate permits and licenses to do their jobs. Inception training is delivered according to the approved General H&S instruction programme for employees of external companies and on-the-job training is provided. The fact of having taken general instruction training is confirmed by the trainee’s signature in the Logbook of external company employee training. The fact of having taken onthe-job training is confirmed by the trainee’s signature in the Logbook of H&S training in the department where the employee is to perform his/her work. The coordinator for cooperation with external company employees is appointed to control compliance with H&S regulations.

Best practice – TAURON Dystrybucja – H&S knowlage competition In 2014 the H&S competition for TAURON

organisation with power devices, first aid and fire

Dystrybucja President’s Cup was organised. The

protection.

initiative was addressed to employees dealing with maintenance

of

electricity

equipment

in

surveillance and exploitation. In this competition, knowledge of H&S regulations was checked, as well

256 employees from TAURON Dystrybucja, TAURON

Dystrybucja

Serwis

and

TAURON

Dystrybucja Pomiary entered the competition.

as the knowledge of instructions on safe work

Best practice – TAURON Wydobycie – H&S training for the personnel In 2014, 53 inception training courses were

recruited employees as well as students to take the

performed in the company, during which all

practice/ apprenticeship were trained. In total, 200

113

training courses were organised, during which all

In the Janina mine exams were introduced, with the

TAURON Wydobycie employees were trained. The

application of interactive techniques for solving the

training courses are organised based on the

final tests. Practical exercises were also introduced

permanent cooperation with the Company of

during first aid classes in accidents or disorders. As

Mining

Górniczych)

a result, in 2014 all company employees were

operating within TAURON Group. The trainers are

trained. Safety metrics improved versus last year.

the most experienced engineers and employees –

The overall number of accidents at work decreased.

instructors of practical vocational training. Training

The accident incidence rate (per 1,000 employees)

videos with accident simulations in TAURON

fell by 26.2%. Moreover, each employee is able to

Wydobycie and other coal mines are used. The

provide first aid effectively in case of an accident or

questionnaire

in case of disorders.

Services

(Spółka

surveys

Usług

evaluating

trainers’

performance are conducted on an on-going basis.

Best practice – TAURON Wydobycie – mining rescue team of TAURON Wydobycie – champion in mining rescue During the competition with twenty one teams

providing first aid and control of the W-70 working

from all over the world held in the form of a world

apparatus.

championship in Poland in September 2014 – the rescuers participating on behalf of TAURON Wydobycie were invincible. The Black Gold patrol consisting of rescuers from the „Janina” and „Sobieski” mines took the gold meld in two disciplines: mechanics

of the

P-30

rescue

apparatus and mechanics of the BG-4 rescue

The patrols competed with each other in disciplines organised in accordance with the international formula, i.e. mainly based on regulations applicable in the host country. Rescuers from TAURON Wydobycie have been world class leaders for years, regularly winning medals individually and as a team.

apparatus. They also won the silver twice for

6.5. TAURON for the health and families of employees 6.5.1. Promotion of health and physical activity According to the data of EUROSTAT, an average Pole spends about 42.5 h weekly at work. For this reason, promoting a healthy lifestyle and physical activity among employees is extremely important.

114

The protection of employee health, early detection of diseases, limiting absenteeism (sick leaves), not only shape the attitude based on care for own health among employees but also lead to achieving many measurable benefits for the employer, including, inter alia, better functioning of employees in professional and daily life, increased engagement of employees in company development and, as a consequence, more effective implementation of economic tasks of the company. In the TAURON Group, besides providing additional private medical care, individual companies encourage employees to perform regular prophylactic and control tests. On the other hand, various types of sport-friendly initiatives initiated by Group companies, not only promote better employee health and well-being but also help to build positive relations and foster integration among employees. Employees are encouraged to use various forms of active leisure. TAURON organises various activities and encourages employees to join external tournaments and campaigns. In 2014 TAURON was, inter alia, the main sponsor of Tour de Pologne race for Amateurs, within which the classification for power engineers was also distinguished. Under cooperation with Andrzej Bachleda-Curuś, the company organised a series of contests with the Polish Championships of Power Engineers in alpine skiing (TAURON Bachleda Ski). The spectrum of disciplines in which representatives of TAURON participate is broad – from fishing, through skiing, cycling, tennis, bowling, to team sports – basketball, football and volleyball. All employees eager to spend time actively may find something to their liking.

Best practice – TAURON Group – Representing the Group during sport events of national range In 2014 TAURON Group was represented during

various companies of TAURON Group competed

various

under one banner.

competitions

and

tournaments

–

individually and as a group – appointing teams consisting of employees of individual companies to the contests. From this point of view, an exceptional event was the second Capital Market Games during which 22 contestants representing

115

The contest covered 12 disciplines including volleyball, basketball, athletics and cycling. As a consequence, by joining forces, TAURON took second place in the general classification of the championships.

Best practice – TAURON Wydobycie – Health prophylaxis among employees of TAURON Wydobycie In 2014 the implementation of health prevention

health. Each employee of the company may

programmes was launched, comprising: motion

register to individual prophylactic programmes

organs,

directly at health care centres or outpatient clinics.

eye

examinations,

cardiologic

examinations, a „Healthy woman” examination package, a „Healthy man” examination package, diagnostic imaging, a package of examinations to detect cataract and disease of the retina. The implementation of the programmes is aimed at protection of TAURON Wydobycie employees’

Employees were informed of the scope of the prophylactic programmes and the procedure on registration via e-mails circulated to employees, in announcements placed on information boards and on Tauronet.

Best practice – TAURON Obsługa Klienta – “Action – Health” In 2014 numerous activities within the framework

Health-friendly

of the „Action – Health” programme were

included: back pain – a civilisation disease of the

conducted, aimed at encouraging employees to get

21st century and informed nutrition.

acquainted with the healthy lifestyle topics:

lectures

–

topics

discussed

The initiatives were received with great employee

The photo competition – „Healthy start” aimed at

interest (over 50 submitted competition proposals

promoting active leisure.

in the competition „Action health – Healthy start”

„In the land of sounds” – a newsletter encouraging employees to get acquainted with relaxation methods. „Yellow week” – an educational campaign promoting prophylactic vaccinations against type B WZW.

and over 80 applications in the competition „Action health – direction: health”). The feedback after completion in the questionnaire survey showed that over 80 percent of the employees recognised the information to be reliable, understandable and valid, and 71 percent recognised it as useful in their work.

Best practice – TAURON Ekoenergia – Energetic Association The objective of the association established in

education, ecology and renewable energy sources,

2013 is the promotion of tourism, physical

in particular:

116

the development and popularisation of tourism,

particular,

sightseeing and physical education and recreation,

supporting the economic development, including

promotion of ecologically-friendly activity in the scope of natural heritage protection, preservation

and

monuments

cultural

improvement

of

heritage, technology,

cross-border

cooperation,

the development of entrepreneurship. Since its establishment the Association has

of

natural

environment status, maintaining

the

including

the

development

promotion and using renewable energy sources and energy conservation,

organised 15 one and two-day excursions, including, inter alia, to Turów Power Plant, Kłodzko Valley and to several mountain chains. Moreover, several lectures on renewable energy and ecology were provided at local schools in Jelenia Góra. The Association has 32 active members. On an ad hoc basis, sightseeing excursions and trips associated

education and upbringing of adults, children and

with power industry are organised (hydroelectric

teenagers,

power plants, conventional power plants, coal mines, etc.). The members of the Association are

fostering the development of local communities,

also in the process of reaching the Sudety Crown

integration and development of contacts and

and plan to organise a course for the yacht sailor in

cooperation

cooperation with the local sailing club.

among

societies,

including,

in

6.5.2. TAURON for the family Each person’s power is rooted in his or her family. That is why TAURON Group believes that employee relatives are as important as our employees.

Therefore, the Group companies organise events in which families participate. These events vary – recreational, tourist, cultural and sports. The attractions taking place during these events are universal enough to satisfy older and younger family members. The ultimate goal is to make employees feel comfortable in their free time. This approach fosters integration and the presence of families additionally improves the atmosphere at events, consolidating family ties.

Best practice – TAURON Polska Energia – Two hours for the family In 2014 the company joined the national campaign

on 15 May employees of TAURON Polska Energia

– „Two hours for the family”. Under this initiative,

shortened their work day by two hours to spend

117

with the family to strengthen family ties. The

memories, relatives, neighbours, friends with

leading topic was the slogan „Every generation has

different generations. Employee response was very

its dreams”.

friendly. That is why in 2015 TAURON took part

Under this campaign, the organisers encouraged

once again and key Group companies joined.

employees to talk about dreams, childhood

Best practice – Family picnic of TAURON Ekoenergia and TAURON Dystrybucja The aim of the picnic that took place on 30 August

On the other hand, adults checked their potential in

in Miłkowo, was to integrate employee families of

a quad race, in paintball and arm wrestling. As usual,

TAURON Ekoenergia and TAURON Dystrybucja. A

the competition during the football contest

common Saturday afternoon was full of attractions

generated the greatest emotions. The party lasted

for the small and the big ones. The youngest took

until late in the evening.

part in games and musical, dancing and arts activities.

Best practice – Kopalnia Wapienia Czatkowice – Family picnic for Employees In September 2014 the first Family Picnic for

Soundwalker’s concert including a light and firework

Employees of Kopalnia Wapienia Czatkowice was

show.

held, in which approximately 900 persons participated – employees with their families. The event entailed a host of attractions for older and younger persons alike, including, animation for children, tournament of giant table football and artificial cow milking. The main attraction was the

118

Especially for this occasion, a video on coal mine employees was screened, a big surprise for all. The aim of this exceptional meeting was to build employee ties and to warm the company’s image among employees and their families. This picnic will take place again.

8.

Environmental impact 8.1. Environmental impact management 8.1.1. Our impact on the environment

We are aware of the fact that our activity affects the natural environment. Due to this fact, companies belonging to the Group take many actions - both those required in accordance with the national and EU regulations as well as those going beyond the legal regulations - aimed at minimising of the environmental impact.

Environmental aspects are particularly important for our power plants, combined heat and power plants and coal mines which, due to the characteristics of their activity, interfere with the natural landscape more than other Group companies. The key environmental issues for the Generation, Heat, Distribution and Mining Areas include: ambient emissions (both carbon dioxide, other greenhouse gases and other pollutants), 

water and wastewater management,



energy efficiency of processes,



waste management.

Due to the level of significance of environmental aspects within the Group, one of three directions supporting the Sustainability Strategy of the TAURON Group is „Environmental protection throughout the value chain” (Sustainability strategy). In the scope of this direction, goals were defined, comprising, inter alia, reducing the air pollution level, increasing the share of renewable sources in energy production and increasing waste management from the Mining and Generation Area. The strong focus on mitigation of environmental impact and increasing energy efficiency of processes in the areas of coal mining, heat and electricity generation and energy distribution does not exclude the environmentally friendly activities to be undertaken by other Group companies. TAURON Obsługa Klienta and TAURON Sprzedaż also conduct activities oriented towards reducing the environmental impact by promotion of ecological attitudes among clients.

8.1.2. Systemic management The TAURON Group’s power plants meet the most stringent environmental requirements.

119

In 2003 Kopalnia Wapienia Czatkowice also successfully completed implementation and certification of the Quality Management System according to the ISO 9001 standard and the Environmental Management System according to the ISO 14001 standard in mining and processing limestone. The systems implemented result from the modern management and engagement of all employees and illustrate full professionalism. The audits conducted regularly (every three years), in case of positive assessment, renew certification. Moreover, Łagisza, Łaziska, Siersza and Jaworzno III power plants, belonging to TAURON Wytwarzanie, hold EMAS certification. The EMAS ( Eco-Management and Audit Scheme) is the system of environmental management, in which enterprises may w participate on a voluntary basis. Its main assumption is to distinguish such organisations which go beyond the scope of the minimum compliance with the regulations and continuously improve effects of their environmental activity. Each employee (business unit) in TAURON Wytwarzanie, depending on the scope of its activities, takes part in the processes. The daily business obligations are fulfilled taking into account the conscious environmental impact and costs, through the application of Best practices, techniques and technologies as well as systemic documents allowing for conducting the activities in the manner mitigating the environmental impact. EMAS contributes to acquiring of the following benefits in certified power plants: 

optimisation of natural resources consumption (fuel, water, energy, other raw materials and materials),



reduction of quantities of generated waste,



reduction of fees associated with the use of the environment,



better prevention, faster detection and response to the occurrence of any irregularities and failures which may have adverse impact on the environment,



improvement of company organisation and management.

The implementation of environmental protection tasks takes place also in coal mines of TAURON Group. Investments required to obtain the ecological product and preserve the environmental protection conditions during the technological process are as important as investments associated with the increased coal output. Accordingly, the programme outlining the main directions of environmentally-friendly activities was adopted. Taking into account elimination of factors posing adverse impacts on the environment „at a source”, i.e. in the phase of their occurrence and production, the following measures are undertaken: 

in-depth analysis of parameters of deposits designated for exploitation (elimination of coal deposits with high sulphur and ash content),

120



designing excavations with the smallest possible share of stone in the cross-section,



the appropriate adjustment of enclosure for gallery and exploitation works in terms of the lowest possible growth of waste rock and elimination of the ceiling waste,



the relevant technique of preparation,



minimising waste content in the excavation waste.

Waste management and reclamation of post-excavation areas play an important role in environmental impact management in TAURON Wydobycie.

8.1.3. Initiatives mitigating the environmental impact Best practice – Kopalnia Wapienia “Czatkowice” – Reducing the environmental impact for the implementation of the investment consisting in expansion of deposit exploitation In 2014 the company completed the first stage of

deposit exploitation in the direction of the

afforestation of a protective belt to cover ultimately

Paczółtowice village to species and settlements

approximately 33 ha. About 67 thousand trees

under protection”.

were planted: larch, pine, spruce, lime and beech trees on 14 ha. The creation of this protective belt, about 200 m wide spanning approximately 33 ha is for prevention and mitigation. It will reduce the threat to an insignificant level insignificant under the environmental impact goals of Nature 2000 for

This belt is being created on the northern and eastern side of the mining area. In September and October 2014 protected plant species were relocated to replacement positions from areas designated to mine the newly documented deposit.

the project entitled „Expansion of carbon limestone

Best practice – TAURON Dystrybucja – “our stork” action More and more often storks build their nests on

year by year, may weigh up to several hundred

eclectic poles. Unfortunately, the power grid often

kilograms and may cause serious power line

poses threat to their life. In particular, uninsulated

failures. It is estimated that on electric poles

electrical wires may be hazardous to birds and their

administered by TAURON Dystrybucja about 1.5

young. At the same time, the storks’ home, growing

thousand stork nests are located.

121

Each year company employees clean and move

Power engineers cooperate with ornithologists on

nests to special enclosures above overhead

a daily basis and consult with them to help storks

electricity transmission cables. This enables young

the best they can. In 2014 five exhibitions entitled

storks to grow in a safe nest and enables TAURON

„In a stork’s nest” were organised, presenting the

Dystrybucja to maintain power grids in good

company’s commitment to protecting the white

technical condition. In addition, training courses for

stork in Chorzów, Lubliniec, Cieszyn, Sosnowiec and

employees are organised, so that they know how

Racibórz.

to care best for the birds, how to prepare the nest professionally and place it on the platform safely. Injured animals that fall from their nests are transported by power engineers to specialised centres. During last year’s winter many employees also fed storks.

A video was also produced for employees of TAURON Dystrybucja, presenting how to care for a stork’s nest; a campaign was also conducted in regional newspapers showing the company’s activities to protect the white stork. During the last winter the company cleaned, modernised, or moved as many as 164 stork nests to specially prepared steel platforms.

Best practice – TAURON Ekoenergia – Assessment of wind farm environmental impact TAURON Ekoenergia regularly performs activities

The preliminary results of the studies indicate that

assessing the impact of commissioned wind farms

the impact of Lipniki wind farm on species under

on the natural environment. In 2014, the post-

protection in the nearest forests of Nature 2000

execution natural monitoring was commissioned in

and on the stability of other species of birds and

2012 in two wind farms – Lipniki and Wicko.

bats populations in Poland and in the European

Activities aimed at commissioning the post-

Union, is insignificant. The observations will

execution

continue until the end of 2015.

ornithological

and

chiropterological

monitoring at the Marszewo wind farm were also conducted.

122

Best practice – Kopalnia Wapienia “Czatkowice” – Thermal modernisation of building roofs The task was based on modernisation of roofs of

Building BA2: consumption of primary energy

administrative buildings belonging to the coal

(average) down by 21.58 kWh/m2*year than the

mines. Its scope comprised thermal insulation of

consumption for the underlying status, expected

building roofs using the method of polyurethane

savings in primary energy consumption over the

foam spraying, replacement of damaged elements

year after modernisation: 36603.35 kWh; foreseen

of flashing, including the replacement of gutters,

difference in final energy for the needs of heating

repair of lightning protection installation. The

and hot water: 28153.17 kWh

modernisation resulted in reducing heat losses and decreasing heat demand.

Building BA3: consumption of primary energy (average) down by 27.63 kWh/m2*year than the

Building BA1: consumption of primary energy

consumption for the underlying status, expected

(average) down by 18.36 kWh/m2*year than the

savings in primary energy consumption over the

consumption for the underlying status, expected

year after modernisation: 34793.91 kWh; foreseen

savings in primary energy consumption over the

difference in final energy for the needs of heating

year after modernisation: 11869.74 kWh; foreseen

and hot water: 26758.06 kWh

difference in final energy for the needs of heating and hot water: 9133.99 kWh

The scale of engagement of TAURON Group in environmental protection is confirmed by the level of funds allocated for this goal in 2014. The Group companies spent the total amount of over PLN 743 million for proecological measures.

123

Total capital expenditure allocated for environmental protection according to the type [PLN] Kopalnia

Type of expenses

Wapienia

TAURON

TAURON

Czatkowice

Wytwarzanie

Wydobycie

TAURON Ciepło

TAURON

TAURON

Ekoenergia

Dystrybucja

GRAND TOTAL

Costs of waste utilisation, flue gas cleaning, cleaning and removal of generated pollutants*

302 466

278 761 800

22 887 902

4 448 893

170 536

2 752 254

309 323 852

86 178

34 773 429

8 668 716

10 736 959

150 001

266 299

54 681 583

700 985

257 280 978

0

11 960 474

107 349 000

2 157 900

379 449 337

Costs of environmental management, including environmental fees** Capital expenditure

for environmental protection***

TOTAL EXPENDITURE FOR

ENVORONMENTAL PROTECTION

1 089 630

570 816 207

31 556 618

27 146 326

107 669 537

5 176 454

743 454 772

COMMENTS: * The item comprises: waste treatment and utilisation, costs of wastewater cleaning and collection. ** The item comprises: discharge of wastewater to water or ground, intake of surface or underground water, discharge of gases or particulate matter into the air, expenditure for the purchase and use of emission allowances, studies and measurements: emission of substances into the air, noise emission, water and wastewater quality, level of water table in wells; expenditure reducing air emission (filters, substances), environmental management systems (implementation, training, audits). *** The item comprises: insurance for liabilities in environmental protection, expenditures on installation and purchase of clean technologies (e.g. additional costs exceeding costs of standard technology), capital expenditure on large, significant investments aimed at mitigating the environmental impact.

8.2. Responsible use of raw materials 8.2.1. Raw materials in TAURON Group’s chain The generation structure of the TAURON Group is not divergent in relation to the national energy mix. It means that in TAURON portfolio fossil fuel (non-renewable), more precisely - hard coal, dominates. This raw material is combusted in power plants of TAURON Wytwarzanie and in combined heat and power plants of TAURON

Ciepło. In 2014 six coal-fired power plants produced 4.5 GW of electric capacity and 1.3 GW of heat capacity, whereas four combined coal-fired heat and power plants generated 1.3 GW of heat capacity and 0.3 GW of electric capacity.

124

Description of the approach This raw material is also mined in coal mines belonging to TAURON Wydobycie, with the bulk being directed to the Group’s generation units. In 2014 ZG Janina and ZG Sobieski produced 5.4 million tonnes of coal, of which only 28 percent was sent to external customers. The remaining 72 percent was consumed inside the Group. In the recent years TAURON has been also increasing its production of energy from renewable sources, i.e.

wind, water and biomass. In accordance with the Corporate Strategy of TAURON Group for 2014-2017 with an outlook until 2023, updated in June 2014, in 2023 the installed capacity in new RES sources (including biomass) should reach the level of approximately 800 MW. TAURON Group holds in total 20 biomass co-burning units (19 in TAURON Wytwarzanie, one in TAURON Ciepło) and three dedicated units, i.e. only biomass-fired (two in TAURON Wytwarzanie and one in TAURON Ciepło). Installed electric capacity of individual biomass co-burning units is contained in the range of 60-225 MW, whereas for dedicated units burning biomass only – it ranges from 30-50 MW. Biomass boilers burn the „forest” biomass (chips, pellets, sawdust) and „agro” biomass (biomass from energy crops, pellets). In order to reduce the consumption of non-renewable resources, TAURON Group implements solutions allowing for obtaining higher energy savings. Owing to the construction of units in new technologies demonstrating better parameters in the scope of energy efficiency, lower quantity of fuel is necessary to generate the same quantity of energy. Moreover, fuel with poorer calorific value (coal mud) is included in mixtures with coal of better parameters, accordingly, they it is not treated as waste, but as a fuel. For the production of energy TAURON Group also uses the power of wind and water. „Green” energy is generated in 35 hydroelectric power plants and in 4 wind farms.

125

Raw materials / materials used, according to weight and volume TAURON Wydobycie

Kopalnia Wapienia

TAURON

Czatkowice

Wytwarzanie

TAURON Ciepło

GRAND TOTAL

NON-RENEWABLE RAW MATERIALS Net coal [tonnes]

5 188 814

1067

6 523 407

992 766

12 706 054

0

0

0

105 168

105 168

0

1 818 300

2 359 340

1 890 600

6 068 240

0

0

28 195

4 004

32 199

Blast furnace gas [m ]

0

0

0

3 041 685 000

3 041 685 000

Convector gas [m ]

0

0

0

83 041 000

83 041 000

Coking gas [m ]

0

0

366 539 440

64 693 000

431 232 440

Diesel fuel [m ]

1 192

1 072

0

0

2 264

Lime [tonnes]

0

1 962 506

0

0

1 962 506

1 819 372

368 898 780

3 191 309 600

3 562 028 944

1 963 573

6 551 602

1 938 770

14 700 759

Mud [m ] 3

Natural gas [m ] 3

Heat oil [tonnes] 3

3

3

3

TOTAL CONSUMPTION OF NON-RENEWABLE RAW MATERIALS

[m3]

1 192 5 188

[tonnes]

814

RENEWABLE RAW MATERIALS Biomass [tonnes] Agro [tonnes]

0

0

286 749

96 121

382 869

Forest [tonnes]

0

0

385 554

252 379

637 933

0

672 303

348 499

1 020 802

TOTAL CONSUMPTION OF RENEWABLE RAW MATERIALS

[tony]

0

Best practice – TAURON Wydobycie – Strategic coal supplier Within the increase of the status of available

production capacity of TAURON Wydobycie – will

resource base in current mining areas of the

make it possible to exploit coal resources which,

company’s coal mines, two strategic investment

due to the depth of the deposits, are currently

projects are in progress: the construction of the

inaccessible.

Grzegorz shaft at ZG Sobieski and the construction of the 800 m level at ZG Janina. Both projects – besides improvement of occupational safety aspects,

simplification

of

the

underground

infrastructure of coal mines, enhancing the effectiveness of the production process, extending the coal mine operation period and increasing the

126

With the acquisition of unmanaged areas adjacent to coal mines, activities are conducted to license mining activity in „Brzezinka 1″ and „Dąb” (licensing). The acquisition of new areas will extend the life of coal mines by 50 years.

8.2.2. Water and wastewater management Water is an extremely important medium in the process of coal extraction and production of electricity. The TAURON Group’s generation units and coal mines aim at consuming the minimum quantities required to run

production processes and ensure the relevant qualitative parameters for those water resources that are discharged into the environment from coal mines and power plants. Description of the approach In the scope of rational management of water resources both mining plants of TAURON Wydobycie have water law permits – the decision of the Marshal of the Region concerning intake and discharge of underground water to surface water in which the levels of permissible pollutants of effluents are defined. The basic parameters defined in the permit include permissible quantity of chloride and sulphate ions and suspension. Mining plants take every effort to comply with the norms required under the provisions of the decision on the norm, consequently mitigating the environmental impact. The main sources of water intake for Group companies include rivers, underground water and municipal water.

Total water intake according to the source Kopalnia

Wydobycie

Czatkowice

Wytwarzanie

TAURON

TAURON Ciepło

Ekoenergia

rivers

0

47 922

155 396 378

741 846

0

lakes

0

0

0

0

0

0

wetlands

0

0

0

0

43

43

2 364 857

66

12 432 910

0

1 103

14 798 936

0

0

154 571

0

0

154 571

water from municipal network

305 875

9 440

3 833 129

1 024 714

2 228

5 175 385

Other (described in comments)

538 375

0

3 922 254

1 410 858

0

5 871 487

3 209 107

57 428

175 739 242

3 177 418

3 373

[m3/year]

TAURON

Wapienia

TAURON

GRAND TOTAL

Surface waters (rivers, lakes),

including water from wetland

156 186 146

Other: underground water rainwater collected directly and

stored

Total volume of water intake from all sources considered

182 186 568

In TAURON Group, TAURON Wydobycie, TAURON Wytwarzanie, TAURON Ciepło and KW Czatkowice consume the highest quantities of water. All companies treat wastewater in their own installations, using mechanical, mechanical – biological, and biological mechanical methods.

127

Total volume of wastewater according to quality and destination Wastewater volume [m3] Destination of wastewater discharge,

including thermal discharge

Kopalnia Czatkowice

Wapienia

Wytwarzanie

TAURON

Wydobycie

TAURON

TAURON Ciepło

Ekoenergia

TAURON

GRAND

0

142 211

249 450

307 249

1 633

700 543

0

0

15

0

225

240

TOTAL

Wastewater discharged to the sewage network (municipal utilities) Wastewater discharged to wastewater treatment plants using transport means

Wastewater discharged to surface waters: lakes

0

0

0

0

0

0

rivers

52 205

132 584 688

36 368 967

217 730

1 031

169 224 621

0

0

0

0

0

0

0

0

0

77 917*

52 205

132 726 899

36 618 432

602 896

Wastewater discharged to underground water other Total volume of

wastewater

77 917 2 888

170 003 320

COMMENTS:

* In the „other” line, industrial wastewater and wastewater from the cooling system is included, transmitted to sewage installations of the municipal utility after treatment in the Company Mechanical Wastewater Treatment Plant.

8.2.3. Waste management Waste management is a very important issue in terms of functioning of generating and mining companies of

the TAURON Group. The importance attributed to this area is also confirmed by the fact that an ambitious goal was set in the Sustainability Strategy. By 2020, TAURON Wytwarzanie and TAURON Wydobycie strive to reach the possibility of managing 90 percent of post-production waste generated in their coal mines, power plants and combined heat and power plants. Description of the approach Mitigation of waste generation and the policy of its management produces visible results. In 2013 5,404,815 tonnes of waste were generated in the Group. In 2014, 4,417,038 tonnes were generated, i.e. by almost 1 t less. In 2013 almost 89 percent of waste other than hazardous was subject to management through reuse, recycling and recovery. In 2014, 99 percent of waste other than hazardous, generated by companies of the TAURON Group, was managed using those methods.

128

Total mass of hazardous waste according to waste treatment method Mass of hazardous waste [tonne] Kopalnia Wapienia

Czatkowice

Wytwarzanie

TAURON

Wydobycie

TAURON

TAURON Ciepło

Ekoenergia

TAURON

Dystrybucja

TAURON

GRAND

Reuse

11

7

0

0

0

0

18

Recycling

0

1

22

0

0

1287

1 310

0

29

36

6

4

0

75

Disposal

0

18

35

40

0

638

731

Storage

0

0

0

0

0

0

0

Warehousing

0

37

0

9

0

0

47

Incineration

0

0

0

0

0

0

0

81*

0

0

0

0

0

81

93

92

93

55

4

1 925

2 262

TOTAL

Recovery (including energy recovery)

Other TOTAL WASTE MASS

COMMENTS: *In the „other” line, waste subject to R12 process is recognised.

Total mass of waste other than hazardous, according to waste treatment method Mass of waste other than hazardous [tonne] Kopalnia Czatkowice

Wapienia

Wytwarzanie

Wydobycie

TAURON

TAURON Ciepło

Ekoenergia

Dystrybucja

TAURON

GRAND

0

508 174

0

0

0

0

508 174

118

391

23

144

143

3616

4 435

18

1 021 980

2 554 680

297 323

1

0

3 874 002

Disposal

0

1 006

530

52

0

1738

3 326

Storage

0

5 354

4 046

35

352

0

9 787

Warehousing

0

1 387

115

2 309

0

0

3 811

Incineration

0

9

0

0

0

0

9

261

1 770

6 994

2 207

0

0

11 232

398

1 540 071

2 566 388

302 070

496

5 354

4 414 777

Reuse Recycling

TAURON

TAURON

TOTAL

Recovery (including energy recovery)

Other* TOTAL WASTE MASS

COMMENTS: *In the „other” line, individual companies recognised the following waste: KW Czatkowice – waste subject to R12 process and slag at a quantity of 192 Mg transferred to natural persons, in accordance with the Regulation of the Minister of Environment concerning the list of waste types which the waste

129

holder may transfer to natural persons or organisational units other than economic operators, and permissible methods of waste recovery (Journal of Laws of 2006 No. 75, item 527). TAURON Wytwarzanie – waste management in own installations: use in IOS; supporting the flue gas desulphurisation process in fluidised bed boilers of Siersza power plant), use for soil fertilising and conservation on the premises of the plant (Stalowa Wola power plant). TAURON Wydobycie – Scrap sold to external companies on the auction. TAURON Ciepło – In the data, waste generated in 2014 and transferred to the external recipient was included.

An excellent example in the scope of waste management is the approach presented by TAURON Wydobycie. In 2014, in line with the strive to create a waste-free coal mine, the following measures were undertaken: 

ash recovery from generating plants of TAURON Wytwarzanie was carried out on installations in mining plants of TAURON Wydobycie. – for that purpose, the relevant agreement for ash sales was signed with TAURON Wytwarzanie,



the recovery of waste gangue was carried out through production of aggregate in processing installations in mining plants of TAURON Wydobycie,



in ZG Janina ash was added to aggregate in coarse assortments on a conveyor belt in order to remove moisture and improve physical parameters of stone designated for sales and for heap construction and development,



the conceptual design of innovative technology was developed for the mobile installation for comprehensive management of materials deposited in ground sedimentation tanks,



in ZG Sobieski tests and analyses of dry stone removal from excavated coal were performed on the pilot research installation belonging to the Institute of Mechanised Construction and Rock Mining,



in ZG the installation for pelletisation of coal mud intended both for power industry and for building in ground facilities was commissioned,



jointly with companies of the TAURON Group the Grey2Green project is carried out, based on common management of waste generated by companies inside the Group and generation of the maximum possible amount of disposable products.

130

As a result, in 2014 the total quantity of waste managed in TAURON Wydobycie amounted to over 2.5 million tonnes, i.e. by almost half a million less than in the previous year. In addition, in 2014, TAURON Wydobycie produced 1.045 million tonnes of aggregate from the waste gangue. This aggregate was used in:

For comparison, in 2013, the total quantity amounted to 164 thousand tonnes.

The project of the coal mine is being implemented with considerable involvement, since this solution will generate many benefits for the Group. They include: 

reduction of waste landfill costs,



mitigation of the environmental impact of the waste generated,



prevention of waste generation at a source,



processing of waste generated into products,



gaining profit due to sales of products generated based on waste (aggregate, aggregate mixtures and granulate),



131

minimising the quantities of waste sent to sedimentation tanks,



implementation of new environmentally-friendly technologies of basic production and waste processing,



consolidation of activities associated with waste management in the Group.

For the following years, consecutive activities have already been planned, to generate further environmental and economic benefits. They include: 

implementation of the technology for the mobile installation for comprehensive management of materials deposited in ground sedimentation tanks,



implementation of the technology for the mobile installation used for generation and location of ash emulgate underground in the coal mines,



commissioning and construction of the stationary installation for location of power plant and mining waste underground in the coal mines,



conducting research and development works related to waste management, improvement of production quality and generated products,



cooperation with scientific and research centres in order to develop new practical technologies associated with quality improvement and waste management.

8.3. Energy 8.3.1. Description of the approach Entities belonging to TAURON Group produce electricity, i.e. this energy which powers all devices we use every day, and heating energy accumulated mainly in water, which heats households and institutions and provides hot water in the tap. In 2014 the available installed capacity of all units (conventional and renewable) belonging to TAURON Group amounted to over 6.5 GW.

132

Installed capacity in MW according to the type of the fuel used Installed capacity in MW according to the type of the fuel used

GRAND

TAURON Wytwarzanie

TAURON Ciepło

TAURON Ekoenergia

TOTAL

Hard coal

4 426

1 278

0

5 704

Natural gas and coking gas

155

85

0

240

Biomass

80

110

0

190

Wind energy

0

0

183

183

Water energy

0

0

140

140

Fuel oil

0

90

0

90

TOTAL

4 661

1 563

323

6 547

TAURON Wytwarzanie

TAURON Ciepło

TAURON Ekoenergia

Power plants (MWe)

4 661

0

323

4 984

CHP plants (MWe)

0

281

0

281

CHP plants (MWt)

0

1 093

0

1 093

Heat plants (MWt)

0

188

0

188

TOTAL

4 661

1 563

323

6 547

Installed capacity, divided into basic energy sources Installed capacity, divided into types of generating units

GRAND TOTAL

In 2014, the generating units of TAURON Group produced over 15.3 GWh of electricity and over 16 GJ of heat energy. These are huge quantities of energy which are subsequently transmitted to customers through power grids and heating networks.

Quantity of net energy produced, according to the energy source (and regulatory requirements) TAURON Wytwarzanie Electric energy

TAURON Ciepło

TAURON Ekoenergia

Electric energy

Electric energy

GRAND TOTAL Electric energy

[GWh]

Heat [GJ]

[GWh]

Heat [GJ]

[GWh]

Heat [GJ]

[GWh]

Heat [GJ]

11 469

3 209 850

1 116

7 458 259

0

0

12 585

10 668 109

Mud

0

0

71

167 111

0

0

71

167 111

Lignite

0

0

0

0

0

0

0

0

567

158 646

18

657 685

0

0

585

816 331

0

0

191

5 066 909

0

0

191

5 066 909

806

225 581

258

1 097 175

0

0

1 064

1 322 756

Wind energy

0

0

0

0

374

0

374

0

Water energy

0

0

0

0

378

0

378

0

103

28 838

3

148 774

0

0

106

177 612

12 945

3 622 915

1 657

14 595 913

752

0

15 354

18 218 828

Hard coal

Natural gas and coking gas Blast furnace gas Biomass

Liquid fuel TOTAL

133

The production process of any product (including energy) consists of many sub-processes absorbing energy to a larger or lesser extent. These represent a plant’s own needs. Own needs mean nothing other than the energy required to power hundreds of devices – inter alia, machines, pumps and fans in the process. In order to minimise energy consumption, solutions improving energy efficiency are used in TAURON Group. In other words, energy conservation activities are implemented which, instead of being consumed by inefficient equipment – allow energy to be transmitted to our customers’ sockets. More on savings in the energy distribution process can be found in the chapter on Energy Efficiency. Due to smart meters introduced by TAURON Dystrybucja, customers will have a possibility to monitor energy used on an on-going basis. Accordingly, customers will be able to eliminate bad habits and cut their electricity bills. Besides offering modern solutions, TAURON Group also conducts numerous educational activities targeting clients, advising them how to use electricity and heat in an optimum way.

8.3.2. Diversity of generating capacity Production of energy in the TAURON Group is based on various generating capacity. In 2014, the generation

fleet comprised: six coal-fired power plants, four coal-fired combined heat and power plants, four wind farms and 35 hydroelectric power plants. In TAURON Wytwarzanie and TAURON Ciepło units co-burning biomass and coal also operate. In total, there are 20 units of this type (19 in TAURON Wytwarzanie and one in TAURON Ciepło). Moreover three units burning exclusively biomass also participate in energy production (two in TAURON Wytwarzanie and one in TAURON Ciepło). In 2014, 0.74 TWh of energy was produced from biomass. Three companies are responsible for energy production (electricity and heat) – TAURON Wytwarzanie (which is in charge of coal-fired power plants), TAURON Ciepło (controlling CHP plants generating simultaneously heat and – to a lesser extent – electricity) and TAURON Ekoenergia (managing hydroelectric power plants and wind farms). The development of the diversified generation portfolio arises from the assumptions of the TAURON Group business strategy which, in turn, is the response to the European Union climate policy. The constantly increasing EU requirements in the scope of carbon dioxide are disadvantageous for coal-fired units prevailing in the TAURON structure (and in the Polish energy sector). Due to this fact, it is necessary to introduce energy mix of technologies based on other energy sources. In 2014, 92 percent of the installed generation capacity in the Group was contributed by the hard coal technologies.

134

In accordance with the Corporate Strategy updated in June 2014, in 2023 their share will decline to approximately 74 percent, including modern, high-efficiency coal-fired units that will constitute 25 percent. The share of low-emission technologies, i.e. gas, wind, water, biomass will constitute the remaining 26 percent. In a longer-term perspective, the Group also plans to have nuclear energy in its generation mix. To this end, TAURON carries out activities aimed at participating in the project of construction of the first nuclear power plant in Poland. LOCATION OF TAURON GROUP’S KEY ASSETS

135

Total consumption of energy from non-renewable sources (own and purchased) in GJ [GJ] coal

TAURON Wytwarzanie

TAURON Ciepło

TAURON

Kopalnia Wapienia

Ekoenergia

Czatkowice

GRAND TOTAL

128 962 217

20 613 526

0

21 340

149 597 083

6 373 944

1 147 805

0

71 823

7 593 572

0

815 254

0

0

815 254

1 158 631

167 997

0

0

1 326 628

liquid fuels

0

0

1 389*

39 137**

40 526

blast furnace gas

0

11 037 879

0

0

11 037 879

natural gas and coking

gas

mud fuel oil

TOTAL

136 494 792

33 782 461

1 389

132 300

170 410 942

COMMENTS: * liquid fuels comprise: motor gasoline and unleaded gasoline, Diesel oil, white spirit and special gasoline, motor oil, compressor and turbine lubricants and other. ** The value provided refers to the consumption of Diesel oil used by working machines and exploitation vehicles.

Total consumption of energy from renewable energy sources in GJ TAURON [GJ] biomass

Wytwarzanie

TAURON Ciepło

Kopalnia

TAURON

Wapienia

Ekoenergia

Czatkowice

GRAND TOTAL

9 063 158

3 775 003

0

0

12 838 161

biofuel

0

0

0

0

0

wind farm

0

0

98 818

0

98 818

water energy

0

0

23 128

0

23 128

SUMA

9 063 158

3 775 003

121 946

0

12 960 107

Total energy consumption (purchased and own), divided into its types, in GJ Kopalnia [GJ] electric energy heat energy

TAURON

Wytwarzanie

136

TAURON Ekoenergia

Czatkowice

GRAND TOTAL

5 662 204

1 533 160

132 794

76 679

7 404 837

733 724

791 866

951

0

1 526 541

0

0

0

12 283

12 283

steam TOTAL

TAURON Ciepło

Wapienia

6 395 928

2 325 026

133 745

88 962

8 943 661

Energy sales in GJ Kopalnia [GJ] electric energy heat energy steam TOTAL

TAURON

Wytwarzanie

TAURON Ciepło

TAURON Ekoenergia

Wapienia

Czatkowice

GRAND TOTAL

49 874 965

5 964 552

2 706 927

173

58 546 617

3 301 671

7 543 286

0

0

10 844 957

321 244

632 905

0

217

954 366

53 497 880

14 140 743

2 706 927

390

70 345 940

8.3.3. Energy from renewable sources The share of renewable sources - biomass, wind and water - in energy production in the TAURON Group is

successively increasing year by year. In 2014 the renewable units produced 1.78 TWh of the "green" electricity, which makes 13 percent of the total energy produced. In accordance with the investment programme adopted in the Group for the following years, the RES area will increase its importance, mainly in terms of wind energy development. Consequently, in 2023 the Group should achieve the target in new RES sources at a level of 800 MW (including biomass). The increase of RES share in the Group portfolio is one of the goals defined in the Sustainability Strategy. In accordance with its provisions, by 2020 at least 10 percent of installed capacity will come from renewable energy sources. In 2014 the capital expenditures in the RES Area amounted to approximately PLN 116 million, including PLN 20.6 million allocated for the construction of the second stage of Marszewo Wind Farm. Besides TAURON Ekoenergia, other companies of the TAURON Group also invested in renewable energy sources. TAURON Wydobycie allocated PLN 40 thousand for this purpose and TAURON Wytwarzanie – PLN 53 thousand.

TAURON Ekoenergia – Construction of the second stage of Marszewo wind farm In November 2014, TAURON Ekoenergia signed the

three-year

agreement for the construction of the second stage

implemented within approximately 12 months.

of Marszewo wind farm, with a capacity of 18 MW. Within the project, nine wind turbines will be constructed, with a capacity of 2 MW each. The investment worth PLN 100 million (including the

137

guarantee

service)

should

be

It is the second stage of construction of Marszewo wind farm; under the first stage, in October 2013, 41 turbines with a capacity of 2 MW each were commissioned. Following the implementation of

the second stage, Marszewo wind farm (located in

municipality near Nosalin) will consist of 50 turbines

the Western Pomerania region, in Postomino

with the total capacity of 100 MW.

8.3.4. Energy efficiency Optimisation of processes in the TAURON Group, resulting in the improvement of energy efficiency, is conducted at all stages of energy production, i.e. during coal mining, production of energy and heat and their transmission to customers.

On-going monitoring of processes enables to identify those processes which are not sufficiently efficient in terms of energy and, to perform modernisation, repairs or improvements resulting in energy savings. The evidence of this type of activities is winning of tenders for the white certificates (certificates confirming the improvement of energy efficiency due to the actions implemented) by companies of the TAURON Group. In 2014 white certificates issued by Energy Regulatory Office were obtained by TAURON Wydobycie, TAURON Ciepło and TAURON Dystrybucja. Energy intensity

Energy intensity ratio Type of energy

138

TAURON Wytwarzanie

TAURON Ekoenergia

TAURON Ciepło

11,30%

4,73%

14,12%

Energia elektryczna i

ciepło

Energia elektryczna

Energia elektryczna i

ciepło

Investment aimed at ensuring the reliability of energy supplies and promotion of sustainable development Costs (incurred in connection with

implementation of INVESTMENT CATEGORY

COMPANY

Type of investment – name of investment

TAURON

Description

Savings in utilities

Jaworzno III in Jaworzno

TAURON

Construction of BC50 unit in

Construction of the fluidised bed boiler, extraction-condensing steam turbine

Ciepło

ZW Tychy

and electric generator with 65 MW capacity, including auxiliary services

Modernisation of the pump

Within the framework of the investment, in 2014 the design documentation

station of the main drainage of

was prepared, the pump set, OW 300AMT/6 type was bought and built-in,

level 350m at ZG Janina

Development of the complex,

Wydobycie

PLN

EFFICIENCY

139

TAURON

Dystrybucja

CATEGORY

including the electric fittings, with lower electricity consumption

58 500,00 128 395 163,11

1 109 998

tracker system of passive

The investment was based on the supply and commissioning in 2014 of the

grid in ZG Janina

the main 6 kV switching station

227 041

by energy saving sources

Modernisation of street lightning (replacement of wires, fixtures)

31 940,00

Mitigation of losses

Replacement of MV/LV transformers by low-loss units with reduced losses

44 500,00

power compensation in 6 kV

second section of condenser battery with core gland of 900kVAr capacity in

Replacement of light sources ENERGY

TOTAL COSTS IN

Optimisation of water consumption for hydro-transport of slag in Elektrownia

Wytwarzanie

TAURON

the investment) in

PLN 129 867 142,14

8.4. Emissions 8.4.1. Carbon dioxide emissions The problem of carbon dioxide emission is one of the key issues discussed at the European Union level. Due to

the TAURON Group’s energy mix based on hard coal, CO2 issues and the associated risks are analysed with particular attention. Description of the approach In accordance with the act on trading in greenhouse gas air emission allowances, power plants and combined heat and power plants belonging to TAURON Group are bound to monitor production installations in terms of emission of carbon dioxide and to prepare annual reports presenting the emissions. Such reports are subject to obligatory verification by an independent institution. The European Union regulation concerning the method of emission level monitoring, provides in detail how measurements and calculations should be conducted so that the annual emission report can be prepared, and the accuracy of the adopted calculations can be confirmed during the independent verification. The major part of carbon dioxide emission is associated with the combustion of the basis fuel – hard coal. Moreover, in the settlements, emissions from combustion of heavy fuel oil, coal mud and CO2 generated during the flue gas desulphurisation process in fluidised bed boilers is also included.

Direct emissions of greenhouse gases (scope 1) Carbon dioxide emission [tonnes of CO2] Kopalnia Wapienia Czatkowice

Total direct emission Biogenic emission

TAURON

Wytwarzanie

TAURON Ciepło

GRAND TOTAL

7118

12 789 612

4 959 019

17 755 750

0

873 063

401 845

1 274 908

Initiatives taken in order to reduce carbon dioxide emission Application of modern technologies in electricity production, increasing the share of biomass burning and coburning, with the simultaneous enhancement of efficiency of the processes results in successive reduction of carbon dioxide emission. In 2014, the overall emission associated with the generation of electricity and heat in TAURON Group reached over 17.7 million tonnes of CO2. It means that entities of TAURON Group emitted almost 4 million tonnes of carbon dioxide less than in the previous year.

140

Owing to the replacement of coal by biomass within its burning in dedicated boilers or co-burning with coal – only in TAURON Wytwarzanie emission of 870,891 tonnes of CO2 was avoided. The growth of biomass share in energy production has also contributed to the reduction in carbon dioxide emission in TAURON Ciepło by 389,163 tonnes. Projects aimed at emission abatement are also carried out by Kopalnia Wapienia Czatkowice. In 2014 the company conducted thermal modernisation of building roofs, which resulted in reducing energy intensity of the facilities. In addition, in the milling plant of the coal mine, installations for heat recovery from the compressor were assembled, which also results in reducing the heat demand and the consequent emission abatement. Moreover, TAURON Group actively participates in research initiatives reducing carbon dioxide emission from the energy production processes. The flagship projects in the scope of CO2 emission reduction are the studies conducted in TAURON Wytwarzanie concerning capture and storage (CCS technologies). Since 2013 two installations for CO2 capture pioneer in the country – the pilot installation for amine removing carbon dioxide from flue gases and the variable pressure pilot installation allowing for testing CO2 capture from flue gases – have been tested through connecting them to power units with various parameters in order to obtain the most comprehensive material for analysis which will help to take further decisions concerning the application of the CCS technology in TAURON Group.

TAURON Wytwarzanie – System for CO2 methanisation for electricity storage through SNG production Within the framework of implementation of the

provisions of the agreement on intellectual

project aimed at examining a possibility to

property management among parties participating

exchange carbon dioxide into SNG – for the purpose

in the project implementation were drafted.

of energy storage, technical consultations were performed, associated with the preparation of the project, the feasibility study of the installation for production of synthetic natural gas (SNG) in the CO2

The project of international character (two partners from France and five partners from Poland) is cofinanced by KIC InnoEnergy.

methanisation system was prepared and the

8.4.2. Air emission of pollutants One of the overriding goals of the TAURON Group in the scope of environmental protection, defined in the

Sustainability Strategy, is to reduce emission of particulate matter and gas pollutants into the atmosphere, including mainly nitrogen oxides, sulphur oxides and dust.

141

Description of the approach In order to provide for the relevant emission levels, the generation units of the TAURON Group are equipped with systems and installations using the modern technologies enabling the minimisation of emission. Due to these measures TAURON Group is successively reducing emissions of nitrogen oxides, sulphur oxides and dust, year by year. In 2013 Group companies emitted, in total, 28,625 tonnes of NOx, 36,101 tonnes of SO2 and 2,127 tonnes of dust, and a year later – 21,173 tonnes of NOx, 25,868 tonnes of SO2 and 1,713 tonnes of dust.

Emission of NOx, SOx compounds and other air emission Kopalnia Wapienia Czatkowice

TAURON Wytwarzanie

TAURON Ciepło

GRAND TOTAL

NOx

5 273

17 022 987

4 144 584

21 172 843

SOx

6 708

19 457 308

6 404 205

25 868 221

14 279

914 608

783 869

1 712 756

4

9 029 575

1 059 939

10 089 518

Total dust Other Total of all air emissions [kg]

26 263

46 424 478

12 392 596

58 843 338

An important element in the efforts to achieve lower emission levels across the Group is the diversification of generation capacity based on increasing of renewable sources and gas units share in energy production. Moreover, the TAURON Group intends to continue its activities in the area of research and development related to modern technologies of emission and pollution abatement. Only in 2014 TAURON Wytwarzanie spent PLN 4,451,500 for studies aimed at reducing emissions of substances harmful for the environment.

Best practice – TAURON Wytwarzanie – Demonstration installation for the monitoring and reduction of mercury emission generated by coal combustion in pulverised fuel boiler Preceding potential regulations in the scope of

in Kraków, carries out a project (co-financed from

minimising mercury emission in combustion

the EU funds by the European Institute of

processes, TAURON, in cooperation with the world

Technology (EIT) through the Knowledge and

of science, has been searching for innovative

Innovation Community – KIC), concerning the

solutions in the area of monitoring and reducing

monitoring and reduction of mercury emission in

mercury emission. The TAURON Group, together

coal gasification and combustion processes. Its aim

with the AGH University of Science and Technology

is to define the scale of the problem of mercury

142

emission

in

generating

units

of

TAURON

Wytwarzanie.

supervised by researchers from AGH. They are aimed at acquisition of data related to real mercury

Under the project, the company constructed the demonstration installation for mercury removal from flue gases, located in Elektrownia Łaziska, which started its 20-week trial operation in 2015. The plan of the studies was prepared and is

emission into the atmosphere and knowledge in the scope of mercury removal from flue gases, but mainly, at determining the most economically and technically effective method for active mercury emission reduction.

8.5. Educational activities 8.5.1. Description of the approach Education is an important area in the scope of environmental impact abatement. Information and educational programmes concerning environmental protection methods and energy consumption saving are addressed both to local communities and to the customers. The younger generations – children and teenagers – make a particularly important group of consumers who, within the perspective of the next decades, will care for the sustainable development of the country. At the first sight it might seem that educational activities promoting energy saving among customers are contrary to the main business goal of the energy company, i.e. energy sales. However, as the socially responsible company, we pay attention to energy consumption reduction issues, really assisting in eliminating bad, energy intensive habits, and we influence raising customers’ awareness. This approach is simultaneously consistent with the mission statement of the sustainable development of the TAURON Group: „Our energy – your safety”.

8.5.2. Educational initiatives addressed to local communities Best practice – TAURON Polska Energia – TAURON Green Island of Silesia TAURON Green Island of Silesia is the ecological

sixth issue of the action the young participants of

and arts campaign aimed at educating children and

the workshops held in Silesian schools planted, in

teenagers

and

total, under the supervision of the Regional

environmentally-friendly behaviours. During the

Directorate of State Forests, 4786 plant cuttings

143

in

the

scope

of

ecology

(Katowice – 1050; Żory – 1119; Chorzów – 1306;

daily basis, including, inter alia, the rules of waste

Rybnik -1311), whereas during meetings with

segregation and reducing energy consumption

experts, during games and competitions, they

while performing daily activities.1,650 youngest

learnt the ecological approach to be applied on a

ecology fans engaged into the project.

Best practice – TAURON Ekoenergia – Ecological lessons on renewable energy sources In 2014, the „Energetic” Association established by

Within

the

framework

of

five

ecological

employees of TAURON Ekoenergia, with the

presentations, the pupils were presented benefits

financial support of the company, provided

arising from renewable energy sources, the rules of

ecological lectures on renewable energy sources in

operation of hydroelectric power plants and wind

educational facilities on the area of Lower Silesia. In

farms were discussed and „green energy” was

the meetings, 360 persons participated (school

promoted. The lessons will be continued in the next

children and teenagers).

school year in 2015.

Best practice – KW Czatkowice – Co-organisation of the World Earth Day in Krzeszowice The celebrations of the World Earth Day in

presented for this occasion.Two arts competitions

Krzeszowice were held for the fifth time, however,

for schools and kindergartens was the innovation

for the first time, Kopalnia Wapienia Czatkowice

also organised by KW Czatkowice. In total, over 600

was the main organiser. This involvement resulted

children from local schools and kindergartens

from the intention to participate in the cultural life

participated in the event and, additionally, children

of Krzeszowice municipality inhabitants and

who arrived on that day with their guardians. The

promote environmentally-friendly attitudes among

involvement of the company in organisation of this

children. The event was traditionally enriched by the

project received very positive response of the local

costume parade for children „Small frogs, frogs and

authorities

toads”, during which children from local schools and

unquestionably warming the image of the company

kindergartens presented frog clothes, specially

in the eyes of the local .

144

and

inhabitants

of

Krzeszowice,

8.5.4. Educational initiatives addressed to customers Best practice – TAURON Sprzedaż – Competition “Saving on the screen” In November 2014 the national campaign

The winning clip, for which broadcast on national TV

„TAURON is more than electricity” was launched.

was foreseen, was selected in two-stage voting,

Within the framework of the campaign a

out of 100 materials sent for evaluation. All works

competition for students of junior high schools and

may

secondary schools was organised with the aim of

on www.konkursenergooszczedny.pl.

be

watched

producing a 30-second advertising video on energy saving.

Best practice – TAURON Sprzedaż – Energy guide “Enrgy Saving” On the website of the company, within the energy

The clearly described examples of pro-efficient

guide, a section on „Energy Saving” can be found,

activities

containing useful tips on how to reduce energy

bathroom, room, environment, are to help

consumption while performing daily activities.

customers in conscious energy use in their daily life.

divided

into

subsections:

kitchen,

Link to the website.

Best practice – TAURON Sprzedaż – “Energy Saving” Campaign Within the framework of the national campaign

and in the company. The action was accompanied

promoting energy saving among customers,

by circulation of leaflets and inserts in press.

TAURON prepared the „Energy Saving Guide of TAURON” in which useful tips are included concerning reducing energy consumption at home

9.

A dedicated website www.energooszczędny.pl, was also launched, presenting the catalogue of Best practices in energy saving.

Managing economic and social impact 9.1. Strategic approach

Managing economic and social impact – under this slogan, challenges in the scope of corporate social responsibility are hidden, which we have set out for ourselves in the TAURON Group Sustainability Strategy, in

145

relation to the nearest environment, i.e. social partners, local communities, regional and local administration as well as suppliers. Activities in this area are implemented both by individual companies, TAURON Foundation and through sponsoring actions. Importantly, many of those initiatives are long-term since our experience shows that they are very often much more effective and, moreover, they allow for better planning and organisation of activities and, consequently – more effective implementation of Shared plans. They also enable building long-lasting relations with partners we cooperate with on individual projects as well as with recipients and beneficiaries of specific initiatives. Numerous assets of TAURON Group (i.e. power plants, combined heat and power plants, coal mines, distribution grids) located in south-western Poland make us feel co-responsible for the environment in which our assets operate every day. It has been well known for ages that a friendly neighbour is a real treasure, therefore companies of TAURON Group pay so much attention to relations with local communities. It is confirmed by many actions conducted by individual plants belonging to the Group – both in the area of mitigation of environmental impact and in the scope of engaging inhabitants neighbouring with TAURON plants, particularly, at the stage of investment planning. Owing to them, TAURON assets have been not only permanently incorporated into the local landscape but they have simultaneously rooted in the awareness of the surrounding communities making TAURON being perceived as a good neighbour.

Best practice – TAURON Dystrybucja – Illumination of interesting architectural facilities in the area of company operations For many years TAURON Dystrybucja has been

TAURON Dystrybucja tries to promote the latest

trying

to

build

relations

with

local

technologies improving the comfort of life, safety,

illumination

of

most

which are cheap i terms of maintenance (energy

interesting architectural facilities or symbols of

saving light fixtures are used). The project is

cities under the project „Dressed in light”. In the

continued and will be developed. In 2015 the

recent years, the decorative illumination was

project will be implemented in Czernica, Gaszowice,

provided, inter alia, to: church in Nakło Śląskie, City

Katowice-Panewniki.

governments,

good

funding

Hall in Tworóg, City Hall in Tarnowskie Góry, St. Stanislaus church in Pyskowice; works on a submaster plan for Rybnik are in progress.

146

Children, teenagers and students make a particularly important group, to which many initiatives are addressed by companies of TAURON Group. Educational and environmentally-friendly activities addressed to them have been continuously gaining popularity for many years. As organisers of those initiatives, employees of the Group also enjoy and gain great satisfaction owing to the meetings with the young generation. The activities are not only a source of interesting inspiration but they also often enforce intellectual gymnastic, since questions emerging in the meantime are very demanding even for experienced practitioners. Within the framework of our projects we apply various tools and communication channels in order to appeal to the young people the best we can. Taking care for the future of children and teenagers, we also do not forget about their activation to take recreational and sports activities. We believe that sport is an important element in the education of a young man. Managing economic and social impact is one of three directions supporting TAURON Group Sustainability Strategy, within which the Group conducts activities aimed at: creating opportunities for cooperation and building understanding for mutual relations and interdependence with individual groups of stakeholders, taking efforts towards maximum enhancement of the positive economic and social impact on the environment and effective informing of its scale, and conducting structured activities in the scope of social engagement.

The goals adopted under managing economic and social impact are as follows: 

engaging key groups of stakeholders in joint activities aimed at enhancing positive social and economic impact,



ensuring transparency of pro-social activities by compiling the rules of their performance and evaluating effectiveness,



expanding partnership relationships with academic centres aimed at advancing energy technologies and educating future personnel,



cooperation with suppliers and contractors based on transparent rules, taking into account social and environmental criteria as well as human rights,



regular communication of results of TAURON Group engagement in non-financial issues to top groups of stakeholders.

The fact that the path we have determined is relevant, is confirmed by numerous awards and distinctions we receive for our activity in the area of corporate social responsibility and sustainable development. In 2014 TAURON was once again included in the prestigious group of companies managed in the socially responsible

147

way, joining the RESPECT Index list once again. The company was also ranked third in the oil and energy sector, in the ranking of Socially Responsible Companies of 2014, and gained the „Polityka” weekly Golden Leaf of CSR for the first time. The publication of TAURON Group 2013 Sustainability Report was also appreciated in the annual competition on Social Reports 2014.

A mini-calendar – the specification of CSR awards* April 2014 Responsible Companies Ranking 2014 TAURON was promoted to top 20 Polish socially responsible companies. In the oil and energy sector it was ranked at a high third position.

May 2014 „Polityka” weekly Golden Leaf of CSR Having received the Golden Leaf of CSR, TAURON was included among top 14 companies ranked based on the questionnaire containing questions related, inter alia, to the issues of business integrity, human rights, customer care or environmental protection. In the oil and energy sector, it was ranked third.

December 2014 2013 Social Reports TAURON Group 2013 Sustainability Report, as the only one among 31 publications registered in the competition, received two awards – the Award of Internet Users and the Distinction for the bold use of Internet. 2014 RESPECT Index For the second consecutive time TAURON was included in the prestigious index of socially responsible companies. In the 8th issue of the RESPECT Index project, 24 entities managed in responsible and sustainable manner were recognised.

148

9.2. TAURON Foundation Our mission of offering help to others is also implemented through activities of TAURON Foundation established in April 2012. It is a corporate foundation acting based on the acquired funds and charity activities of employees, undertaken within the employee voluntary work. The goal of the Foundation is to act to the benefit of public welfare, mainly in the scope of education, upbringing and teaching, and additionally, in the scope of health protection, development of economy, culture and arts, social welfare and social care, sport and recreation, environmental protection, protection of cultural assets and national heritage as well as volunteer aid and organisation. The income of the Foundation comes, inter alia, from donations, inheritance, subsidies, grants or amounts corresponding to a part of income tax due by tax payers. Its scope of activities is very broad. Within the framework of its initiatives, TAURON Foundation: 

raises and collects funds and material resources for the implementation of goals of the Foundation,



creates fellowship programmes and provides support to educational programmes enhancing the quality of education and programmes equalising education opportunities, promoting talents and extraordinary skills of children and teenagers,



supports entities conducting activity consistent with the goals of the Foundation in organisational, material and financial terms,



provides financial and material support to natural and legal persons, institutions, centres and facilities,



conducts and supports pro-social campaigns,



conducts and supports school and informational campaigns,



organises or finances educational, sport, recreational or cultural events,



organises or supports initiatives for the benefit of corporate social responsibility,



promotes and develops the idea of employee voluntary work,



supports (in financial, material, organisational or legal terms) organisations, companies and private individuals in their activity consistent with the goals of the Foundation.

149

In 2014 TAURON Foundation provided the financial support (including donations) at a level of PLN 3,049,389, i.e. by over a million more than in the previous year.

Management Board of TAURON Foundation Paweł Gniadek – President of the Management Board Iwona Kliś – Vice-President of the Board Elżbieta Karcz – Vice-President of the Board

Board of TAURON Foundation Krzysztof Surma Andrzej Rejner Paweł Starżyk

More useful information on activities of TAURON Foundation can be found on the website. Contact with the Foundation. Through supporting the social activity and undertaking actions under the employee voluntary work, the foundation also implements the assumptions of the TAURON Group Sustainability Strategy. The flagship projects implemented by the TAURON Foundation include „Heroes Overnight” and „Houses of Positive Energy”.

9.2.1. Projects under implementation Heroes Overnight The aim of the project, carried out in cooperation

Consequently,

with DKMS Polska Foundation is to build the base

companies of the TAURON Group, the Donor’s Day

of bone marrow donors and to promote

has been organised, within which employees –

information

through submission of a genetic material sample –

150

concerning

the

donation.

since

2012

in

consecutive

may become potential bone marrow donors, who

(Górskie Ochotnicze Pogotowie Ratunkowe) as well

may save health of life of people waiting for

as fans of TAURON sponsoring events, such as

transplantation. On Tauronet, a dedicated sub-

TAURON New Music, are encouraged to register. In

page has been created where all information

2014 registration actions were also conducted in

materials, Newsletters sent to employees by e-

the north of Poland during the campaign „Summer

mail are collected, and the information campaign is

with ENERGY„. Owing to all those campaigns, in

also supported by leaflets, films and articles.

2014 818 persons joined the database of bone

In 2014 TAURON Polska Energia, TAURON Ciepło and TAURON Wydobycie was joined by TAURON Obsługa Klienta. The Donor’s Day was held in 11

marrow donors. Since the beginning of the „Heroes Overnight” action, owing to TAURON, almost 3.5 thousand potential donors joined the project.

branches of the company (Katowice, Wrocław,

The project of TAURON Foundation not only

Kraków, Gliwice, Tarnów, Częstochowa, Legnica,

influences the extension of the database of bone

Opole, Bielsko-Biała, Wałbrzych, Jelenia Góra). In

marrow donors but also generates benefits for the

total, 167 employees of TAURON Obsługa Klienta

company. Engaging employees in the development

registered in the donor base.

of the organisational, also in off-balance sheet

Moreover, participants of actions organised by TAURON and Voluntary Mountain Rescue Service

terms, is essential from the point of view of creating the corporate culture.

Houses of positive energy The Houses of Positive Energy action is addressed

thousand and 20 winning orphanages gained the

to

Its

main prize PLN 50 thousand each. In total, over 3

assumption is to improve the living conditions of

thousand children participated in semi-final gala

children staying in orphanage. At the beginning, the

ceremonies.

24-hour

educational-care

centres.

range of the initiative comprised only Lower Silesia and Opole regions (2005-2011), however, it was later extended to the whole area of the TAURON Group operations. Within this extended formula (2011-2014) 320 orphanages from five regions took part in the action. They are inhabited, in total, by over 11 thousand children. In this period, each of 60 semi-finalists won the award of PLN 10

151

Over 70 participating orphanages, inhabited by 2100, events organised for over 800 children, attractive financial awards for semi-finalists and finalists from five regions – this is the balance of activities conducted within the 10th anniversary issued of the Houses of Positive Energy action 2014.

The

action

organised

by

TAURON

Foundation and TAURON Dystrybucja was carried

out under the slogan „We are the house of Positive

In 2014, children from orphanages, within the

Energy”.

competition work, presented why they make a

The final event was held on 11 September in the Kraków Com-Com Zone centre in Nowa Huta, a facility of SIEMACHA Association, for which TAURON is a sport partner. Everything went on in the spirit of positive energy – children participated in sport and arts events. And Kraków was the place where five winners of the anniversary issue of the action were announced. The winners, besides the title of the House of Positive Energy, received the

house of positive energy in the form of photo- or video-presentation. Being aware of the changes introduced in orphanages in Poland, following the completion of the 2014 action, organisers conducted consultations with representatives of educational-care centres participating in the action. All these activities were undertaken in order to react actively to the on-going changes and to offer help even more effectively to those in need.

financial prize – PLN 50 thousand each.

9.3. Good neighbour policy 9.3.1. Educational activities TAURON fuses TAURON Group pays special attention to the security issues. To this end, the information and educational programme „TAURON fuses” was established, gradually extending its scope to consecutive groups of recipients and becoming a brand in itself. Currently, under the „TAURON fuses” programme, initiatives addressed to adults operate („TAURON fuses. Switch on for the house and family”), seniors („TAURON fuses. Switch on for the senior”), children („TAURON fuses. Switch on for a child’s benefit”) and employees of construction and renovation companies („TAURON fuses. „Switch on at work”). Official website of TAURON Fuses. “TAURON fuses. Switch on for the house and family” The educational campaign of TAURON Sprzedaż

competitive) and notifications submitted directly by

„TAURON fuses” launched in 2012 was created

TAURON customers concerning unfair sales

mainly to protect customers of TAURON Group and

representatives

provide for their security in the energy sector. Due

presenting false information about TAURON, in

to greater market activity by sales representatives

2014 the decision was made to continue customer

of competitors (as the market becomes more

education through informational campaigns related

152

and

misleading

people

by

to possible reaction to unfair activities of sales

campaign „Check who is your energy supplier”, was

representatives; inter alia, in cooperation with the

conducted, protecting customers against unfair

Society of Energy Trading, the informational

practices of energy suppliers (Our customers).

“TAURON fuses. Switch on for the senior” „If you don’t know, don’t open” is the educational

In total, 2855 people participated in three issues of

campaign dealing with the problem of using unfair

the campaign „If you don’t know, don’t open”, in

sales practices by sales representatives offering

meetings with Michał Fajbusiewicz held in 2014 in

unfavourable purchases or agreements in the direct

the most popular spa resorts.

sales channel. The action presents the problem in a broad context, recognising the electricity market as one of the most exposed to the aforementioned activities. The initiative is addressed to the group of

Would you recommend „If you don’t know, don’t open”? meeting to other person (Issue II)

sensitive customers, i.e. the elderly. The campaign was organised jointly by Józef Dietl Foundation of Active Citizens and TAURON Polska Energia. The Minister of Labour and Social Policy,

Would you recommend the “If you don’t know, don’t open” meeting to other person? (Issue II) Yes

96%

No

4%

the Ombudsman, professor Irena Lipowicz and the Police engaged in implementation of the action. Partners of the action actively engaged into the preventive and warning activities against swindlers and unfair salesmen. Michał Fajbusiewicz, the journalist known, inter alia, from the TVP programme „Criminal Chronicle 997″ became the ambassador of the campaign „If you don’t know, don’t open”.

153

Would you recommend „If you don’t know, don’t open”? meeting to other person (Issue III)

Would you recommend the “If you don’t know, don’t open” meeting to other person? (Issue III) Yes

93%

No

7%

“TAURON fuses. Switch on for a child’s benefit’” The „TAURON fuses. Switch on for a child’s benefit”

materials tailored to the needs of the programme.

programme is aimed at education of the youngest

The list is still increasing, comprising, inter alia:

users of electricity – children, in the scope of safe

educational

electricity use. During the classes the youngest

handbooks, multimedia presentations, as well as

learn where electricity comes from, how the

competition – the national competition for schools

equipment supplied with the current should be

in the form of an on-line game.

used, how to behave during a thunderstorm or power

failure.

Important

elements

of

the

programme also include competitions and mobile educational cities enabling to reach a larger group of children which may be taught through entertainment. The main element of the programme are the educational lessons conducted by company employees within the employee voluntary activities in elementary schools located across the area of TAURON Dystrybucja operations. In 2014, before the changes entered into force, lessons were also held in kindergartens. The classes, adapted to the age of the young audience, are conducted based on educational

films,

theatre

performances,

The programme is carried out by TAURON Dystrybucja

in

cooperation

with

TAURON

Foundation, under the honorary patronage of the Minister

of

National

Education

and

the

Ombudsman for Children. The effects of the first issue of the programme include over 50 thousand trained children during 1800 educational activities in 530 schools. Mobile educational cities including the energy road show, with participation of lecturers and students of Wrocław universities visited, among others, Wrocław, Głogów, Gliwice, Wałbrzych, Ustroń, Częstochowa,

Katowice,

Gdynia

and

Świnoujście.[KF1]

“TAURON fuses. Switch on at work” In October 2014 TAURON launched another

awareness and promote knowledge concerning

information and education action: „TAURON fuses.

safe work using electric devices.

Switch on at work” – a programme created mainly for employees of construction and renovation companies but also for all home „handymen” and „do-it-yourselfers”. Its main objective is to build

How to work with electricity safely, how to avoid danger and provide first aid to the injured – it is only a part of the knowledge disseminated through the new programme of TAURON Dystrybucja. The company, jointly with the State Labour Inspection

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as a patron of the action, mainly intends to educate

have occurred recently. On the website, each

about threats arising from irresponsible work with

entrepreneur may also download the template of a

electricity.

poster and leaflets with numbers of emergency

On

the

information

website and

www.bezpiecznikitaurona.pl educational

materials

are

published. They include, inter alia, a guide on safe work with electricity, describing the rules of using electric devices and tips on providing the first aid to persons affected by electrical shock. Besides, it includes examples and causes of accidents which

services to be notified in case of accident. The pilot action was launched in 2014 in Opole Region. Owing to the cooperation with the State Labour Inspection, Opole Chamber of Commerce and local governments, the educational materials (leaflets, posters) reached people

employed on the

construction site of Elektrownia Opole.

Cooperation with GOPR Górskie Ochotnicze Pogotowie Ratunkowe (Voluntary Mountain Rescue Service) (GOPR) is an important social partner of TAURON. The cooperation launched in 2009 is perfectly incorporated into the assumptions of TAURON Group Sustainability Strategy and the Group’s motto – „Our energy – Your security”. Moreover, the scope of GOPR operations overlaps with the distribution area of TAURON Group in southern Poland, which underlines the coherence and legitimacy of the partnership even more. The aim of numerous educational campaigns conducted jointly in various periods is to increase the level of security in mountain areas through enhancing the awareness of threats each tourist may be exposed to, depending on the weather and season of the year. The educational campaigns also comprise lessons of first aid. All those efforts are undertaken in order to increase the safety of amateur sportspeople and tourists. The support of TAURON, owing to which the rescuers are equipped, inter alia, with vehicles and rescue equipment, additionally contributes to the enhancement of safety in the mountains.

Best practice – TAURON Polska Energia – Safe summer with GOPR Safety in the mountains is the leitmotiv of the

safe behaviours while practising mountain tourism

holiday project of Górskie Ochotnicze Pogotowie

and summer sports.

Ratunkowe (Voluntary Mountain Rescue Service) (GOPR). During events, GOPR rescuers encourage tourists to safe leisure, talk about method of safe travelling in the mountains and teach the rules of

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The summer action in 2014 took place in six biggest and most popular mountain resorts: Istebna, Kluszkowce, Zakopane, Ogrodzieniec, Krynica and

Karłowo.

TAURON

provided

numerous

participants

of

the

action

enjoyed

and

competitions and animations to the youngest

simultaneously learnt safe behaviour in the

tourists

mountains during holiday.

and

their guardians, during

which

Best practice – TAURON Ekoenergia – GOPR training Cooperation of TAURON with GOPR is not only the

The programme of the training organised with the

education of tourists and skiers. TAURON also

assistance of TAURON Ekoenergia employees

supports mountain rescuers in special training

comprised such elements as rescuing using a

activities aimed at providing aid to others. In 2014

pontoon, techniques of moving in a mountain river

this exceptional manoeuvring, as a part of

and evacuation of drowning people. The training

specialised GOPR training, took part on the Bóbr

conducted in the vicinity of Wrzeszczyn power plant

river, below the dam of Wrzeszczyn hydroelectric

enabled the rescuers to learn the details of the

power plant. GOPR exercises on fast-flowing

specific nature of this kind of actions and master

waters take place every year and prepare, inter alia,

the skills of providing effective aid.

to actions during rapid river surge.

Best practice – TAURON Polska Energia – Safe winter with GOPR In 2014 rescuers, jointly with TAURON, once again

equipment on the slope, e.g. lack of helmet or unfit

educated tourists how to spend time safely on a

ski binding.

mountain slope. During winter holiday, in January, February and March 2014, in seven most popular ski stations in Poland (Ustrzyki Dolne, Kluszkowce, Białka

Tatrzańska,

Czarna

Góra,

Jaworzyna

Krynicka, Istebna, Zieleniec) GOPR promoted safe mountain tourism. Each skier or snowboarder on holiday, using the winter craziness, was able to get acquainted with the rules applicable in the mountains and learn how to prevent accidents. Owing to the fun and fantastic atmosphere, tourists resting in the mountains learnt, among others, about the dangers arising from insufficient

156

GOPR rescuers were also teaching how to provide the first aid and distributed booklets containing the „Skier’s Decalogue”. Winter picnics were also full of emotional skiing competitions, rescue shows and numerous competitions and games with prizes. In total, 42 GOPR and TOPR rescuers participated in the action, conducting 70 mountain rescue shows, TAURON distributed 800 helmets and 400 pairs of goggles and during each weekend of the action, 170 persons received free skiing lessons. In the

overall action on the slopes during all weekends, about 30 thousand people participated.

Partnership in the educational programme „Civic Shareholding” Best practice – TAURON Polska Energia – Partnership in the educational programme „Civic Shareholding” „Civic Shareholding. Invest consciously” is the educational programme initiated by the Ministry of Treasury in order to propagate knowledge on the stock exchange among individual investors. In 2014, under the programme the e-learning training devoted to investing on the stock exchange was launched. Within the framework of the training, eleven courses, numerous animations, interesting graphics, exercises, tests and competitions were made available to participants, gradually approximating the world of exchange investments. After registration on the platform, the trainee received a package of knowledge which each stock exchange investor should learn in order to invest on the exchange floor consciously. After passing the final test, the best participants received the certificate of completion of the course. Training courses on the e-learning platform were free of charge.

9.3.2. Support for children and families Best practice – TAURON Polska Energia – TAURON – The sport partner of SIEMACHA In 2014 TAURON joined the group of SIEMACHA

most important events promoting sport and

Association Friends. Receiving the title of Sport

physical culture among children and teenagers in

Partner, it actively supports the Progres Sport

Małopolska region. The engagement of TAURON in

Academy and social projects in the Com-Com Zone

SIEMACHA activities also enables to implement

Development Centres. Within the framework of

emotional sport events and interesting social

cooperation in the Com-Com Zone Development

projects, the Com-Com Zone Development Centres

Centre Nowa Huta in Kraków, numerous sport

are famous for, as well as the activity of Progres

projects are implemented. The most important

Sport Academy – the biggest training centre for

projects include the football tournament „Jerzy

children and teenagers in Małopolska whose

Dudek TAURON CUP:”, „Swimming Meeting for

Honorary Patron is Jerzy Dudek.

TAURON CUP”, the training project „I swim with TAURONE” and the biggest „Football Children’s Day with TAURON” in Małopolska. TAURON also supported the organisation of Juliada – one of the

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AS Progres is the place where 500 children and teenagers supervised by carefully selected trainers develop their talents and achieve first sport successes in three disciplines: football, table tennis

and swimming. TAURON is the founder of sports

competitors and trainers), it supports the daily

equipment for the Academy (inter alia, balls for

activity of the Academy and actively participates in

football, swimming boards, sports suits for all

sport tournaments and training camps for players.

Best practice – TAURON Polska Energia – Football Children’s Day with TAURON In the football tournament under the patronage of

On that particular day TAURON cared for

TAURON, implemented following the initiative of

attractions for the youngest – „Tauronek” small

SIEMACHA

Football

bulls, without a minute of rest, encouraged the

Association of Małopolska, over 1800 female and

children and motivated them to compete – in the

male football players aged six to nine participated.

special TAURON zone located nearby pitches

The matches, played in the system 2 x12 minutes,

numerous animations were presented.

Association

and

the

took part on 36 small pitches and the competition was supervised by over 70 referees looking after security and appropriate progress of the game.

Best practice – TAURON Polska Energia – Juliada 2014 Tauron, as Siemacha Sport Partner, had its debut in

From 29 June to 27 July 2014 the competition of

Juliada in 2014. Juliada is a sport and recreational

almost 10 thousand participants in 10 sport

event held in Kraków since 1999, organised by the

disciplines went on. Besides traditional football,

City Hall of Kraków and Siemacha Association

volleyball or table tennis tournaments, the

whose sport activity is supported by Tauron. The

participants were also fighting on a climbing wall

initiative is addressed to young people spending

and in breakdance contest.

holiday in the city.

Best practice – TAURON Polska Energia – Partner of Zagłębie Sosnowiec Football Academy In 2014 TAURON Polska Energia extended its

trainers

patronage

Football

physiotherapist, trainer for technical preparation

Academy. In the Academy almost 450 children and

and the sport dietician. Owing to the solid training,

teenagers aged 3 to 18 train, and the security and

members of the Academy include representatives

proper progress of the training is supervised by 25

of the region and Poland. Under the cooperation

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to

Zagłębie

Sosnowiec

as

well

as

by

the

psychologist,

with TAURON, in October 2014 a tournament for

general development games, sports competition

the youngest football players of Zagłębie was also

was also present. Commemorative diplomas were

organised under the title: „Zagłębie educates and

awaiting all participants. In the break between

positively electrifies”.

sports games, players and their parents were

In the sports hall of Complex of General Secondary Schools no. 3 in Sosnowiec, classes and competitions for the youngest students of our Academy, i.e. children from Junior Football. Besides

shown the educational film of the action: „TAURON fuses. Switch on for a child’s benefit” The main objective of the presentation was to show threats to which young users of electrical equipment are exposed.

Best practice – TAURON Wydobycie – Participation in the Big Family Card programme Pursuant to the agreement signed in December

and Janina in Libiąż, which are labelled with a special

2014 with the Minister of Labour and Social Policy,

logo „Here we accept the Big Family Card”.

TAURON Wydobycie became the partner of the Big

Consequently, TAURON Wydobycie is included in a

Family Card project. This action is the element of

group of over 500 companies and institutions all

the pro-family policy of the state, and it is aimed at

over Poland which joined the programme.

improving the difficult demographic situation of the country. As a result of signing of the agreement, the company offers to holders of the Big Family Card a 3 percent discount for coal purchases in customer

Consequently, TAURON Wydobycie is included in a group of over 500 companies and institutions all over Poland which joined the programme.

service centres of coal mines: Sobieski in Jaworzno

Best practice – TAURON Wydobycie – Participation in the activities of Foundation of Mining Families Within its membership in the foundation, the

In 2014 TAURON Wydobycie transferred the

company has a possibility to provide financial

amount of PLN 10,000 for the assistance to

support and assistance to families of miners who

persons in need cared for by the Foundation of

lost their lives as a result of their work, mining

Mining Families. In 2015 the company intends to

invalids facing a difficult living situation, their

continue the cooperation, it also plans to promote

children and subordinates, receiving assistance in

the activities of the foundation and support its

the form of social, scientific or special fellowships

subordinates, to make it more and more

(under medical assistance, e.g. for the disabled).

recognisable, also outside the mining environment

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9.3.3. Health Best practice – TAURON Polska Energia – Base of bone marrow donors during the “Summer with ENERGY” During the national „Summer with ENERGY”

TAURON Foundation together with the DKMS

campaign which visited the biggest Polish seaside

Polska Foundation.

reports, visitors of Good Energy Zone had the opportunity to register in the national Base of bone marrow donors. The initiative was a part of the „Heroes Overnight” action co-organised by

During six weekends, 651 persons used the opportunity to become a potential bone marrow donor.

Best practice – TAURON Dystrybucja – Third issue of the action “Energy sector employee for life” In TAURON Dystrybucja the fourth issue of the

Only throughout 2014, 12 actions were held, in

action „Energy sector employee for life” was

which blood was donated by almost 270

completed. In 2014 employees of the company

employees. Actions took place in Jelenia Góra,

donated 120 litres of blood, and since the beginning

Legnica, Opole, Wrocław, Częstochowa and

of the campaign – over 440 litres.

Kraków.

Best practice – TAURON Sprzedaż – Hearth examinations in Polish – American Heart Clinics Specially for TAURON customers and their families,

Within the Heart Balance, customers of TAURON

Polish-American Heart Clinics prepared a set of

receive results of examinations, including a detailed

diagnostic examinations which guarantee diagnosis

analysis conducted by specialists in cardiology as

of the general heart condition, at promotional

well as recommendations associated with further

prices.

prophylactic procedure or treatment.

Best practice – TAURON Group – Energy sector choir supported Children’s’ Oncology Orchestra TAURON Group joined the project on organising an

Orchestra. On that single day, small patients of

extraordinary concert of Iskierka Foundation – „If

Silesian oncology centres and their families became

there is POWER, there is JOY”. 40 energy sector

artists, whereas artists found childhood fantasy

employees accompanied the most important

and sensitivity inside themselves. Artists were also

heroes of the evening – Children’s’ Oncology

160

present: Kamil Bednarek, Maciej Miecznikowski,

Foundation. Funds collected during the concert

Szymon Majewski and Jarosław Boberek.

were transferred as aid for children suffering from

The concert that took place in 2014 for the eighth time, is aimed at providing aid to patients of Iskierka

cancer, and the income from sales of a calendar sponsored by TAURON, issued in 1000 copies – for the purchase of medical equipment.

Best practice – TAURON Wydobycie – Participation in the 22nd Final of the Great Orchestra of Christmas Charity The mining company of the TAURON Group joined

Visitors from Gorzów Wielkopolski followed exactly

the national campaign of fund raising for WOŚP, by

the same route as the one covered daily by miners.

auctioning the tour of Zakład Górniczy Sobieski.

Thus, at the beginning there was descend down the

This attraction was bid for almost PLN 1 thousand

shaft, to the depth of 500 m, then they travelled by

by a couple from Gorzów Wielkopolski. Ms

the underground railway and overhead conveyor,

Agnieszka and Mr Ireneusz who are physicians

and were transported by belt conveyors adapted to

have never had the opportunity to go underground.

the transport of people. The underground journey finished with a difficult passage along the gallery to the operating longwall.

9.4. Sponsoring activity 9.4.1. Sponsoring activity of TAURON Group – social and business aspect Although public opinion surveys indicate that sponsoring helps in warming the brand image, we are aware that it should mainly support core activities of TAURON, since customers evaluate us mainly from the perspective of the offer and service quality. Therefore, TAURON uses the sponsoring activity as one of the business tools. Sponsoring mainly fulfils trade supporting function and promotion function, playing an important role in the scope of building relations and acquiring loyal customers as well as creation and dissemination of brand recognition. Sponsoring promotes the brand, expresses the corporation action strategy and allows for reaching many groups of stakeholders. Due to the huge number of customers, the sponsoring mix of TAURON is diversified and comprises numerous socially important areas, reflecting variable interests. While selecting specific sponsoring activities, TAURON is driven by social interest since only successful choice in terms of stakeholders’ interests, guarantees effectiveness, enhanced by the permanent professional supervision over the implementation of projects. Similar

161

to corporate social responsibility, sponsoring projects are long-term and the site of their implementation reflects distribution of TAURON Group customers. Due to the concentration of Group’s customers in southern Poland, most campaigns take place here though many have national impact. TAURON Group conducts sponsoring activity, supporting, in particular: 

cultural activity, including, in the scope of mass culture,



education and public schools at various levels,



environmentally-friendly initiatives,



sports, including professional sports,



social campaigns.

The assumptions implemented through sponsoring

Sponsoring activity generates the results the Group

activity, are perfectly embedded in the goals of

expects as confirmed by the Sponsoring Monitor

TAURON Group Sustainability Strategy in the area

2014 survey conducted by ARC Market and

of

impact.

Opinion, in which respondents named TAURON

Particularly important recipients of sponsoring

Group as the most effective sponsor in the energy

projects are children and teenagers for whom the

sector (chart). The survey also shows that more

sponsoring activity carried out by TAURON poses

than 50% of Poles rate companies involved in

an opportunity to develop passions in many

sponsoring higher than those who are not.

Managing

social

and

economic

disciplines – cultural, sports and scientific.

Most effective sponsors in the energy sector (ad hoc responses) TAURON

8%

PGE

7%

PGNiG

5%

ENERGA

4%

ENEA

2%

Source: Sponsorin Monitor 2014, annual report, ARC Market and Opinion, January 2015 On the sponsoring market, TAURON has the opinion of a careful player reasonably managing a budget relatively lower than the competition. The Group tries to spend funds allocated in the budget for this goal effectively. Permanent monitoring and surveys of sponsoring activity effectiveness performed after termination of the activities are helpful.

162

Initiatives sponsored by the TAURON Group

163



Tour de Pologne



June of Freedom in Silesian Park



Cooperation with Górskie Ochotnicze Pogotowie Ratunkowe



650th Anniversary of Jagiellonian University



Parade



Lang Team Grand Prix



Life Festival Oświęcim



Wrocław Opera



Polish Olympic Committee



TAURON Basket Liga



TAURON Bachleda SKI



TAURON BANIMEX MKS Dąbrowa Górnicza



TAURON New Music



STU Theatre



Unia Tarnów Żużlowa SA



WKS Śląsk Wrocław



Girls’ Cathedral Choir Puellae Orantes



Royal Festival Office – Film Music Festival



Marcin Gortat Camp



Tour de Pologne of Amateurs



Handball Club Ruch Chorzów



Room of Nature TAURON Ekoenergia

9.4.2. Supporting culture Supporting cultural events by business is not as popular in Poland as supporting sport activities. It may result from the fact that – as the Sponsoring Monitor 2014 survey indicated – Poles are more interested in sport than in culture.

Nevertheless, TAURON pays equal attention to sport promotion and to sponsoring cultural events of various nature. Consequently, TAURON helped in financing the concert hall of the National Symphonic Orchestra of Polish Radio in Katowice, currently the best in Poland in terms of acoustics, which became the national pride and facility, where the most recognised from all over the world want to perform. On the other hand, the solid history lesson provided in attractive form is the filmed history of Colonel Kukliński, materialised, owing to TAURON funds, in the form of film production, Jack Strong, one of the top Polish firms that gathered the biggest audience in 2014. In 2014 TAURON also took over patronage over an unprecedented event, namely, Wandering in Poland with the first in history, simultaneous staging of three most distinguished dramas by Wyspiański: Wesele [The Wedding] – Wyzwolenie [Liberation] – Akropolis. This huge artistic project is being implemented by STU Theatre from Kraków. In addition, TAURON has been sponsoring great music events for many years, including TAURON New Music Festival, Kraków Film Music Festival, Life Festival Oświęcim.

Initiatives sponsored by TAURON in 2014 in the area of culture:

164



June of Freedom in Silesian Park



Girls’ Cathedral Choir Puellae Orantes



Film Music Festival



Parade



Life Festival Oświęcim



Wrocław Opera



Sponsoring of Jack Strong Film



Tauron Summer Opera Festival



TAURON New Music



STU Theatre

Best practise – TAURON Polska Energia – Triptych of drama by Wyspiański – STU Theatre in Kraków STU Theatre, sponsored by TAURON Polska

Akropolis [Acropolis]) directed by Krzysztof Jasiński,

Energia for seven years, set off for a trip across

were staged at the same time.

Poland with „Wandering across Poland by Stanisław Wyspiański”. For the first time in history, on 11 November 2014 all three masterpieces written by the renowned drama writer (Wesele [The Wedding] – Wyzwolenie [Liberation] –

The inauguration show took place in Kraków and started the national tour to visit 50 Polish cities. In total, the artists will perform 100 shows, two in each location. Project completion is scheduled in 2016 on the 50th Anniversary of the STU Theatre.

Best practice – TAURON – Wrocław Opera In June 2014, Wrocław Opera organised the fifth

.The Wrocław Opera performers comprising almost

annual TAURON Summer Opera Festival. On six

300 people threw an exceptional show. „Macbeth”

June evenings over 20 thousand spectators

was the 33rd production of Wrocław Opera which,

watched the opera super production of „Macbeth”

as previous performances, was a great success.

by Giuseppe Verdi in the Centenary Hall in Wrocław.

Best practice – TAURON Polska Energia– the main sponsor of “Jack Strong” film The adaptation for the screen of Colonel Ryszard

The engagement of TAURON in this production

Kukliński’s

Władysław

received recognition from the jury of the

Pasikowski, premiered in January 2014 and gained

competition „Guardian of Memory 2014″ which

recognition among viewers and reviewers. The

honoured the company in the „Patron” category.

Polish spy thriller attracted over a million

This distinction is granted to entities providing

spectators, thereby becoming the most eagerly

particular financial support to historical memory.

story,

directed

watched production Q1 2014.

165

by

9.4.3. Supporting education Supporting education and public schools is being implemented by TAURON Group on various levels and in many ways (Our employees and to TAURON Fuses. Switch on for a child's benefit ). Sponsoring is one of them. Such

activities foster the strengthening of company's positive image also in this area - which is a niche in terms of sponsoring activity. In 2014 TAURON engaged in the celebrations of Jagiellonian University in Kraków – the oldest university in Poland and one of the oldest in Europe, becoming the strategic sponsor of the event. The celebrations of the 650th anniversary of UJ made a great feast not only for students and graduates but also for inhabitants of Kraków. During the celebrations lasting over a week many events too place, among others, lectures, exhibitions, concerts, creating a real attraction for participants.

9.4.4. Supporting sports Sports sponsoring is an essential tool supporting TAURON’s business goals. Through our engagement in

sporting events we always try to be where our customers are and motivate them, build positive brand recognition and make them more loyal. TAURON sponsors professional sports ensuring high promotional effectiveness, while also supporting mass sports, school events and teenagers’ tournaments in TAURON Group’s operating area and beyond. At the same time, each sponsoring activity, to a certain extent, shows the social responsibility of the company. A good example is the support offered to basketball or the Olympic family. Financial resources generated by TAURON, on the one hand, support both organisations in business terms, but simultaneously enable the basketball environment or the Polish Olympic Committee to develop their activities. The engagement of TAURON in sponsoring of Polish sport was recognised in the plebiscite of the „Przegląd Sportowy” daily organised during celebrations of the 25th anniversary of free Poland, in which TAURON received the title of Patron of Free Poland Sports for its overall activities supporting national sports.

Initiatives sponsored by TAURON Group in sports in 2014

166



Tour de Pologne



Lang Team Grand Prix MTB



KPR Ruch Chorzów



Marcin Gortat Camp



Polish Olympic Committee



TAURON Basket Liga



TAURON Bachleda SKI



Tour de Pologne of Amateurs



TAURON



Unia Tarnów Żużlowa SA



WKS Śląsk Wrocław

BANIMEX

MKS

Dąbrowa

Górnicza

Best practice – TAURON Polska Energia – Official Sponsor of the 71th Tour the Pologne In 2014, for the sixth time, TAURON sponsored the

The tour is a huge organisational and logistic

legendary cycling race – Tour de Pologne, classified

project. In 2014, almost 170 competitors from 21

in the top international cycling league for

teams from all over the world participated. The 400

professionals – UCI World Tour. TAURON is also the

km route traversed 400 Polish cities and villages.

founder of the award for the best mountaineer.

21 thousand people took part in securing the overall race. In total, 2.7 million spectators watched the competition along the whole route.

Best practice – TAURON Polska Energia – Sponsor of the Polish Olympic Representation – Sochi 2014 TAURON has been the sponsor of the Polish

In 2014 TAURON was the sponsor of the Polish

Olympic Committee since 2010. Within the

representation for the winter Olympic Games in

framework of this cooperation it supported, among

Russian Sochi where Poland ranked high in 11th

others, the national Olympic representation for the

place in the general classification, winning six

winter Olympic Games in Vancouver, Youth Olympic

medals (four gold, one silver and one bronze).

Games in Singapore and Innsbruck, and summer Olympic games in London.

Best practice – TAURON Polska Energia – Sponsor of youth representation – Nankin 2014 Almost 4 thousand young athletes from 204

The competition was held on 34 arenas in 28 sport

countries, including Poland’s 59-person strong

disciplines. Polish athletes performed very well,

national representation, sponsored by TAURON,

returning home with six medals – five gold and one

visited China’s Nankin, where the second Youth

bronze.

Olympic Games were held.

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Best practice – TAURON Sprzedaż – Sponsor of Marcin Gortat Camp 2014 The Marcin Gortat Camp 2014 was the 7th training

and show business figures, which gathered 15

course run by Poland’s sole NBA player with

thousand spectators on the stands of TAURON

children and teenagers. For them it was not only a

Arena Kraków.

possibility to learn the basics of sport skills from the best Polish basketball player but also an opportunity to listen to his valuable advice. In 2014 the training with Marcin was held in the second half of June in three cities – Sopot, Warsaw and Kraków. 750 children aged 9-17 participated. The event ended with the Gortat Team playing the Polish

The most talented competitors of these Camps won a trip to the United States to watch the Washington Wizards, Marcin Gortat’s

team.

TAURON funded basketball balls for all camp participants and nine winners from individual cities received vouchers to purchase sports equipment.

Army with Polish soldiers and Polish star athletes

Best practice – TAURON Polska Energia – Main sponsor of the Toru de Pologne of Amateurs Tour de Pologne of Amateurs is the accompanying

The race combines sport competition with

event of Tour de Pologne UCI World Tour.

recreation. In 2014 almost 1400 participants kicked

Competitors feel like professional cyclists since the

off from Bukowina Tatrzańska to cover the 38-

circuit covered by amateurs is covered by the Tour

kilometre route. Within the framework of the

de Pologne peloton several hours later. An

competition, separate classification is also carried

additional attraction is the picturesque route

out – e.g. for the energy sector or for the fire

comprising tourist locations and tracks, providing

departments.

not only sport emotions but also many tourist and sightseeing experiences.

Best practice – TAURON Polska Energia – Sponsor of the Polish basketball In 2014 TAURON extended the scope of sponsoring

consequently, TAURON became the sponsor of the

in basketball, receiving the title of sponsor of

whole top level Polish basketball for women and

Tauron Basket Women League extra class. Its

men (sponsor of men’s extra class and Polish

patronage also covered women’s representation,

basketball representation).

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In the club competition 16 male and 12 female

number of spectators. The Hit of 2014 was the

teams participated with more than 400 games in

game between Stelmet Zielona Góra and Rosa

the 2014/2015 season. Tauron Basket League

Radom with 83,751 viewers.

matches broadcast on TV are watched by a growing

9.4.5. Supporting social campaigns In TAURON, sponsoring activities in which social outcomes are more important than pure business outcomes (sales or promotion) are treated as a separate group. This means that activities initially classified as sponsoring involvement in cooperation with GOPR and TAURON Green Island Silesia in 2014 were shifted to corporate social responsibility, coordinating cooperation projects with the SIEMACHA Association and the Iskierka Foundation. The decision to separate them from sponsoring activity was made because they had a larger social impact than just business. Therefore, TAURON sets other requirements for these projects, emphasising social goals such as rescue or ecological activity, transcending business needs.

9.4.6. Supporting environmentally-friendly initiatives Care for the natural environment is reflected in various aspects of activities of the TAURON Group companies

(Environmental protection). An important element in this process is building the awareness of the environment in the scope of reasonable management of natural resources and developing environmentally-friendly behaviours, particularly among children and teenagers.

Due to this fact, TAURON engages with great satisfaction in various projects of ecological nature which – besides their content-related value – strengthen the image of socially responsible and environmentally-friendly company. It is even more important due to the fact that the energy sector, for many years effectively reducing its environmental impact, inter alia, by emission abatement (Emission reduction) and caring for water resources, is illegitimately perceived as the sector operating contrary to the sustainable development rules.

Best practice – TAURON Ekoenergia – Room of Nature of TAURON Ekoenergia The Room of Nature is an original social campaign

Ekoenergia’s area of operations. In 2014 two

addressed to elementary schools from TAURON

consecutive issues of the competition were held

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(third and fourth), where, in each issue, five equal

issue – Public Elementary School no. 3 in Brzeg,

main prizes of PLN 40 thousand each were granted

Elementary School no. 8 in Jelenia Góra, Elementary

to schools for renovation and equipment of the

School in Gorzanowo, Elementary School in

educational room for natural science lessons

Szczenurza and Elementary School no. 9 in

(schools awarded in the third issue – Elementary

Wrocław).

School no. 93 in Kraków, Elementary School no. 118 in Wrocław, Elementary School in Maszewek, Elementary School in Mokrzeszów and Complex of

The awarded schools also received the honorary title of „The NATURALLY best school”.

Social Schools in Jelenia Góra; awarded in the fourth

9.5. Responsible cooperation with suppliers One of the important stakeholder groups with whom all TAURON Group companies have daily contact consists of suppliers. That is why improving procurement effectiveness is an important challenge. The implementation of Regulations on contract awarding procedures in TAURON Group and the new Rules of Cooperation in Procurement under resolutions adopted by TAURON Management Board in 2014 should be certainly recognised as a way of achieving this goal. The new regulations complete the key stage of standardisation of procurement procedures. In 2014 the shared Regulations on contract awarding procedures covered the eight biggest companies. The essential qualitative changes to be achieved by TAURON Group owing to the single regulation in the procurement area also include the possibility to select reliable and diligent contractors in a transparent manner, equal in all Group companies. At the end of 2014 eight companies had the common regulation in place, the status expected at the end of June 2015 is 14 Group companies. In 2014 the KPI measures were developed and defined, based on which the Group is implementing its goals as of 2015. The most essential measures which should be indicated in terms of effectiveness improvement include: 

growth of competitiveness of procurement processes – the expectation in this area refers to the growth of the general competitiveness of procurement procedures, both through increasing the number of bids received in the proceedings under competitive terms, and limiting the number of proceedings under the negotiated contracts;



savings in procurement – increased effectiveness of the procedures conducted is expected;



use of electronic tools in the implementation of procurement processes – this goal should promote the use of electronic auctions in procurement procedures, with the conscious and appropriate selection of

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procedures for which auction should be used. Owing to the popularising of the electronic form of communication with the market, TAURON Group promotes the transparent approach to price negotiations, offering equal opportunities to all contractors and, in which negotiations with all parties are conducted on an equal basis.

Due to such approach and the priorities we have set out in the procurement area, we strive to be even a more serious partner for suppliers and an example to be followed for others. In 2014 – owing to the centralisation of procurement processes – significant financial and organisational effects were achieved in consolidated proceedings, among which, inter alia, the following initiatives are worth mentioning: property protection services with the value of PLN 50 million, life insurance for employees of the Group with the value of PLN 100 million and cleaning services with the value of PLN 100 million. The consolidated procedure for cleaning services conducted by TAURON Polska Energia was unique on a national scale in the context of public procurement procedures. The value of the contract placed this procedure in the group of the biggest procurement proceedings for cleaning services in Poland. The agreement implemented a unique system of quality assessment of the services performed, based on the SLA method. The Awarding Authority also decided to provide appropriate working conditions for line employees, reserving that under the specific terms, employees should be recruited under the employment contract. Owing to the consolidation of the proceedings, only in the scope of cleaning services and security, it was possible to reduce the number of contracts from several dozen to several, which is reflected in better supervision over their implementation. In 2014 the development of a concept for IT system functioning was commenced entailing classification and assessment of contractors cooperating with individual companies of TAURON Group (Eligible Vendor Base). This base will enable us to evaluate cooperation with suppliers on an on-going basis, and with constant access to historical data, it will also enable us to control whether cooperation with a given supplier is deteriorating or improving. Accordingly, it will be possible to mitigate the risk of cooperation with unreliable suppliers. This module will enable bilateral communication with vendors and reduce the time allocated to vendor selection significantly. In 2014 we recorded significant growth in the use of the Purchasing Organisation Support System in the Group (SWOZ) confirmed by the scope of electronic auctions and the use of the RFX tool. The SWOZ has been operating in TAURON Group since 2012. SWOZ is the central system of TAURON Group, aimed at planning contracts,

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registering contract awarding procedures, including auctions and electronic proceedings (e RFx), reviewing drafts and contract templates, registering awarded contracts (purchasing agreements), registering other agreements and reporting purchasing data. The number of potential vendors has significantly increased in the base: 

2013 – 3,821 potential vendors



2014 – 4,616 potential vendors

Since 2013, electronic auctions have become more widespread. In 2013-2014 auctions were used in four Group companies, whereas, according to KPIs for 2015, electronic auctions will be used in all Group companies covered by TAURON Group’s Rules of Cooperation in Procurement. Growth of SWOZ use 2013-2014 2013

2014

Responsible cooperation Number of SWOZ users – TAURON Group (in thousand)

1.49

1.62

Customers registered in SWOZ (in thousand)

3.82

4.62

Competitiveness of procedures

2.39

2.63

Number of REX procedures (in thousand)

0.308

1.94

Number of electronic auctions (in thousand)

0.235

0.522

Growth of indicator, % Competitiveness of procedures (average number of bids for a part of the procedure) - growth rate 2013

100

2014

110

KPI target for 2015

125

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Glossary

White certificates – certificates confirming saving a specific volume of energy as a result of investments aimed at improving energy efficiency. CCS (Carbon Capture and Storage) – technology used to capture, transport and geologically store carbon dioxide. Network heat – hot water produced in co-generation with electricity. Heat flowing through installations is used for district heating and hot water supply needs. Waste free power plants – power plants that do not generate waste (e.g. combustion by-products) or any waste is converted into other useful products (e.g. gravel) used in other industries (e.g. construction). Electricity generation by prosumers – electricity generation, primarily for own needs, on a small scale, from installations that use renewable energy sources. Households and enterprises doing this are called prosumers, i.e. they simultaneously act as electricity producers and consumers. Primary Power Supply Substations – transformer stations converting high or medium voltage into low voltage: 230 V. They supply electricity to one or several cities; they are usually located outside an urban area. Overhead high voltage (HV), e.g. 110 kV (110 thousand volts), or medium voltage (MV) 15 kV (15 thousand volts) lines are connected to substations. At a substation, using transformers, high or medium voltage is converted into low voltage (LV) of 230V that is distributed to our homes by cables. Smart metering – a comprehensive integrated IT system comprising customer premises, smart energy meters, telecommunications infrastructure, a central database and management system. Smart measurement systems enable bi-directional communication in real time between IT systems and electronic energy meters installed in customer premises. Furthermore, they can automate the entire billing process for electricity consumers – from obtaining measurement data, through its processing and aggregation and issuing invoices. ISO 14001 – one of Ithe SO standards applied in natural environment management. Fluidized bed boiler – a boiler used to generate steam or hot water, equipped with a fluidized bed furnace. A fluidized bed enables suspending dispersed fuel in the upward flowing air stream. Such boilers provide very favourable conditions facilitating chemical reactions generating a lot of heat. Aggregate – bulk material of organic or mineral origin, used mainly to manufacture mortar and concrete, as well as for road construction.

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Best Available Technology (BAT) – most efficient and advanced level of technology and methods of conducting specific operations. BATs are set for various industries. In the power sector it provides the basis for setting, among others, cap emission levels aimed at eliminating or, if it is not practically possible, reducing emission and its impact on the environment as a whole. Vulnerable customer – in accordance with the Energy Law a vulnerable user of electricity is a person who is awarded a housing subsidy, who is a party to a combined electricity distribution and supply agreement or an electricity supply agreement and who resides at the point of electricity delivery. Climate package – energy and climate package consisting of six draft legal acts that will enable accomplishing general targets with respect to counteracting climate changes. „3 x 20″ – a directive adopted by the European Union. Its assumption is to reduce, by 2020, greenhouse gas emissions by 20 percent versus 1990, increase the share of renewable energy sources in the energy mix by 20 percent of the total energy consumption on average in the EU in 2020 and raise by 20 percent energy efficiency by 2020. Heat pump – mechanism with its basic task being to “transport” heat with a lower temperature to a place with a higher temperature. This process is possible through the appropriate design of the pump equipped with a compressor or heat exchangers. Heat pump accumulates heat energy picked up from, for example, air or soil, in order to dissipate the heat to the environment. KIC InnoEnergy (Knowledge and Innovation Communities) project – a European commercial project promoting innovation in the power sector. TAURON Polska Energia is one of the signatories of the agreement concluded to establish the CC Poland Plus company forming the base for the operation of the Polish KIC Energy node. The task of the first Polish node is primarily to conduct research and coordinate activities in the clean hard coal based technologies. The formation of the special purpose vehicle called CC Poland Plus is the coronation of cooperation between academic partners and the TAURON Group. In 2013 the TAURON Group received the Golden Laurel for Innovativeness in the Mining and Steel Industry category for the “Pilot mobile system used to remove CO2 from flue gases”. This prize is awarded to companies that have successfully implemented the best ideas, solutions and inventions to achieve commercial success. RESPECT Index – index consisting of responsible companies listed on the Warsaw Stock Exchange. Its goal is to include entities managed in a responsible and sustainable manner. Furthermore, it strongly stresses the investment attractiveness of companies demonstrating: high quality reporting, investor relations and corporate governance. SAIFI – System Average Interruption Frequency Index, a reliability index calculated by dividing the number of customers exposed to the effects of all interruptions over a year by the total number of customers served.

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SAIDI – System Average Interruption Duration Index, expressed in minutes per customer, a reliability index calculated by dividing the sum of the products of the duration of all customer interruptions and number of customers exposed to effects of all interruptions over a year by the total number of customers served who are connected to the grid. Power grid – a set of functionally and electrically interconnected cables and devices used to transmit, process and distribute electricity in a given area generated by power plants and to power equipment. Grids can be classified as: transmission grid, i.e. highest and high voltage grids, distribution grid, i.e. medium and low voltage grids. Mineral sorbents – obtained by dispersing minerals and subjecting them to thermal processing in order to increase the absorbing surface. Sorbent is in the form of small granules that permeate through accessible slots and absorb liquid from any substrate. Conventional resources – in other words, non-renewable resources, fossil fuels, such as: hard coal, lignite, peat, crude oil and natural gas. This group also includes nuclear energy with uranium as the raw material. EMAS System – Eco Management and Audit Scheme, is an EU instrument with its goal to encourage various organisations (enterprises, factories, institutions) to improve their environmental impact continuously. The essence of EMAS is to search for possibilities to mitigate the environmental impact of operations conducted and to raise the efficiency of these operations. Smart grid system – power system integrating the operations of all energy market participants to supply energy in a reliable, safe and cost effective manner taking into account environmental protection requirements. Tauronet – TAURON Group’s corporate intranet portal, one of the most important tools for communicating with staff members. At the time of publishing this Report, it is one of the largest platforms of its type in Poland. Thermal insulation of industrial facilities – changes to both heating and ventilation systems, as well as the building structure and hot water supply installations. The scope of thermal insulation, similar to its technical and economic parameters, is defined by way of an energy audit. The most frequent actions taken include additional insulation of outer walls and roofs, replacing windows, replacing or upgrading heating systems. Green energy, renewable energy, eco-energy – energy obtained from renewable energy sources, i.e. from wind, solar radiation, biomass combustion.

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