TAURON Group’s Business and Operational Model

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The Business and Operational Model is a response to the needs and goals set out in TAURON Group’s Strategy.

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This document defines the Group’s management model, defines the high-level architecture of the processes as well as the functions and tasks of the Corporate Center, Lines of Business and other units. In order to ensure flexibility, resilience and adaptation of TAURON Group to the changes in the environment, in particular those resulting from climate change, the current Business and Operating Model of TARON Group takes into account the role of ESG (as an increasingly important tool of the communications with the environment (stakeholders)). TAURON Group’s Business and Operational Model also includes comprehensive provisions indicating the independence (unbundling) of the operations conducted by the Distribution System Operator (hereinafter also called: DSO).

A new TAURON Group’s Strategy for the years 2022 – 2030 with an outlook until 2050 was adopted in June 2022.

The key assumptions of the above mentioned strategy include the spin-off of the coal assets outside TAURON Group, the development of the renewable energy capacity, as well as the digitalization and ensuring information security. These issues were taken into account in the update of the Business Model, which in 2022 included: bringing all of TAURON Group’s subsidiaries under the Business Model, assigning new subsidiaries to the specific Lines of Business, dividing of the roles within IT/OT, clarifying the issues related to the RES acquisitions.

Due to the reorganization processes underway at TAURON Group, affecting the ultimate shape of TAURON Group’s structure and its Business and Operational Model, further updates resulting from the implementation of TAURON Group’s Strategy are assumed.

  • building the value of TAURON Group as a whole (priority of the economic interest of the Group),
  • environment protection and adaptation to the challenges stemming from climate change,
  • focus on customers (internal and external),
  • adhering to the Group’s values (PRO values),
  • accelerating and simplifying the decision making processes,
  • taking advantage of the knowledge, qualifications and competences of TAURON Group’s personnel.
  • being applicable at all of TAURON Group’s subsidiaries,
  • wsparcie budowy wartości Grupy TAURON zgodnie ze Strategy Grupy,
  • providing support for the building of TAURON Group’s value in line with the Group’s  Strategy,
  • acting in accordance with the corporate values (PRO values),
  • Group wide organizational and decision making consistency,
  • ensuring compliance with the principles of ”unbundling” towards the DSO within TAURON Group,
  • clear division of duties and responsibilities,
  • efficient exchange of information, utilization of the personnel knowledge,
  • variability of the Modelu Business and Operational Model,
  • flexibility, resilience and adaptation to changes in the external and internal.

The Business Model introduces the division of roles and responsibilities, based on the assignment of process competences among the Corporate Center, Lines of Business and Shared Service Centers.

Corporate Center

Superior organizational unit responsible for the management of TAURON Capital Group’s operations and taking the most important decisions affecting TAURON Capital Group, the Lines of Business, the Shared Services Center (CUW) and TAURON Capital Group’s subsidiaries,

Lines of Business

6 lines of TAURON Capital Group’s core business operations, defined in accordance with the links of the electricity and heat production value chain: Generation, Renewable Energy Sources (RES), Heat, Distribution, Trading and Supply,

Shared Services and Customer Service Centers

Units responsible for the provision of the specific support services (for example accounting, IT, human resources and payroll, insurance, customer service, security) for the other units of TAURON Capital Group.

For the purpose of reporting TAURON Group’s results its continued operations were, as of December 31, 2022, divided into 4 main Segments (Operating Segments), hereinafter also referred to as the Lines of Business:

That comprises mainly electricity generation using conventional sources, including co-generation, as well as electricity generation from biomass burning. This Segment also includes heat generation and supply as well as the generation equipment’s overhaul operations.

That comprises electricity generation from renewable energy sources, i.e. hydroelectric, wind and solar power plants.

That comprises distribution of electricity using the distribution grids located on the territory of the following provinces: Małopolska, Lower Silesia, Opole, Silesia, partly: Świętokrzyskie, Podkarpackie, Łódź, Wielkopolska and Lubuskie. The Segment also includes the operations that cover the technical support services related to the electricity metering systems and the metering data acquisition.

That comprises electricity and natural gas supply to the final consumers and electricity, natural gas and derivative products wholesale trading, as well as trading and management of the CO2 emission allowances, property rights and innovative services related to, among others, the management and maintenance of the street lighting, smart city products, e-mobility products, as well as the services focused on energy efficiency.

Apart from the main Segments of operations, TAURON Capital Group’s is also conducting the operations presented as part of the Other Operations that comprise, among others, the customer service for TAURON Capital Group’s customers, the provision of the support services for TAURON Capital Group’s subsidiaries with respect to accounting, human resources (HR) management, information and communications technology (ICT), as well as the operations related to the extraction of stone (rocks) and the production of sorbing agents. The Other Operations also include the financial operations, utilization (management) of the hard coal combustion and extraction processes’ by-products, biomass processing, real estate administration, as well as the technical support services for the vehicles.

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