Assignment

Done by: ID:

Organizations - 1

(Public Sector Company)

ADDC

(Abu Dhabi Distribution Company)

Introduction: Established over 10 years ago, Abu Dhabi Distribution Company is mainly responsible for the water and electricity network in the emirate of Abu Dhabi. ADDCs core business is the planning, design, construction, and operation of the Abu Dhabi water and electricity distribution network.

Type of Business: ADDC is a public sector company which provides regulated service to its customers and its revenues are overseen by the Regulation & Supervision Bureau (RSB), which monitors all the companies in the public sector.

Ownership of Business: -

Abu Dhabi Water and Electricity Authority (ADWEA), a public sector company wholly owned by the government of Abu Dhabi.ADWEA is the 100% owner of ADDC. All capital required by ADDC is provided via direct equity investment from ADWEA. Over the last few years, ADWEA has permitted increased levels of autonomy to each of its subsidiaries including ADDC. However, ADDC continues to operate within the overall policy framework set by ADWEA, particularly in the areas of personnel, procurement and financial policy. Its board of directors includes high-ranking government officials:

Ahmed Saeed Al Mureikhi Chairman, Managing Director, ADDC

1

Abdul Jalil Al Khoory Deputy Chairman and Managing Director, BPC Hassan Ibraheem Al Hosani Director of Projects Division, ADWEA Hassan Al-Nassay Chairman, Emirates Sembcorb Company (Fujairah Plant) Abdulrahman Obaid Al Dhaheri Deputy Managing Director, ADDC

Purpose of Business : -

ADDC is committed to supporting the government vision by becoming a leading water and electricity distribution and supply company, comparable with the best in the world.ADDC will improve the quality and efficiency of its operations and customer service delivery.

Stakeholders
Definition: - Person, group, or organization that has direct or indirect stake in an organization because it can be affected by the organization's actions, objectives, and policies. Key stakeholders in a business organization include creditors, customers, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.

The major stake holders in ADDC are:

1. The Executive Council 2. Abu Dhabi Water and Electricity Authority 3. Regulation and Supervision Bureau
2

4. TRANSCO These stakeholders are all wholly government owned companies.

Stake holders in the business:

The Executive Council: The Executive Council is the local

executive authority of the Emirate of Abu Dhabi. The Abu Dhabi Executive Council is pursuing ambitious economic growth and development plans. These have been described in the Abu Dhabi Policy Agenda and in the Plan Abu Dhabi 2030. The water and electricity sector, of which ADDC is a key player, is vital to the realization of these plans through the provision of the water and electricity essential to support these developments.

ADWEA: It is a public company with a separate legal identity and financial and administrative independence. ADWEA determines all business relating to the formulation, development and implementation of the policy of the government in relation to the water and electricity sector in Abu Dhabi.

RSB: The Regulation and Supervision Bureau is the independent

regulatory body for the water, wastewater and electricity sector of the Emirate of Abu Dhabi.It has exclusive authority to regulate all companies undertaking activities associated with electricity and water production, transmission, distribution and supply. In addition, the Bureau also regulates the wastewater sector which is responsible for ensuring the safe collection, treatment and disposal of wastewater products. The RSB has the responsibility of granting operating licenses to companies in these sectors, and ensures licensee compliance to the terms and condition of these licenses. The RSB works with sector licensees to develop all regulation and codes in relation to technical, economic and customer service matters.

TRANSCO: It is a subsidiary of ADWEA and is responsible for developing, operating and maintaining the high voltage electricity transmission and bulk water transmission networks within the
3

Emirate of Abu Dhabi. Transco directly transmits water and electricity from generation companies to ADDC. As such, ADDC has regular interaction with Transco, both on a day-to-day operational and long term infrastructure planning perspective.

Strategic Planning Process:

Factors that influenced the setting of aims and objectives:
1. Government: ADDC is committed to supporting the government

vision by becoming a leading water and electricity distribution and supply company, comparable with the best in the world.
2. Customers: Ensure provision of water and electricity with the

highest levels of quality, safety and excellence; demonstrating professionalism in all customer dealings and ensuring that all business actions are driven by customer needs. Analysis of the current situation: ADDCs customer base is comprised of 412,540 service agreements for the supply of water and/or electricity, which is distributed to customers throughout three regions: Eastern Region, Western Region and Abu Dhabi Island.

Planning Strategies:

Public sector service provision: Being the sole water and electricity provider in the country, ADDC caters to the needs of all the various sectors of the economy although there concessions given to the public sector companies as well as the private sector companies. Quality Assurance: ADDC won the prestigious "Sheikh Khalifa Excellence Award (SKEA) as well as achieved BVQI ISO 9001: 2000 quality certification in 2004 for its operations; In addition,the laboratory achieved ISO 17025:1999 status, as well as the HSE ISO 14001:1996 and OHSAS 18001:1999 certification.These achievements ensure the quality of the products that are delivered. Provisions at or below cost: The RSBs oversight of ADDC is done in the interest of customers, and limits are placed on the amount of revenue ADDC can earn in a particular year via the application of
4

price controls that provide incentives for ADDC to improve the quality of service to customers while reducing costs.

The Organizational Chart:

The DMD: The deputy managing directors office controls the core activities that are: 1. Finance 2. HR & Administration 3. Supply 4. Projects It also oversees the various other departments which are customer services, asset management, network services and the DMS. These departments are dependent on each other for the smooth functioning of the organization.

External factors that can impact the business activities:

5

Economic: The economic factor plays an important role in the

normal functioning of the buisness.The fluctuations in the economy directly affect the budget and ADDC being a public business entity may face challenges to cope with the fluctuations.

Social: Society also plays a major in the flow of the business

activities.The customs and trends of a society do affect the way the business is functioning although these customs might be favorable to the businesses.

Technological: ADDC being a provider of water and electricity

faces a constant change in technologies as these fields are quite researched.To provide the best services it has to constantly upgrade its infrastructure and has to bring chnges in its technologies.

Source: (www.addc.ae)