Strategic

MANAGEMENT

CTEEP has adopted a strategy based on solidity in the areas of finances, efficiency and competitiveness, and on the growth of the business.

CTEEP has a set of strategic guidelines as part of the ISA group, allowing for the adoption of an integrated model for actions and conduct in all the companies in the group. At the start of 2007, ISA defined a grand, ambitious goal known as MEGA, with an audacious challenge: “to achieve revenues of US$ 3.5 billion by 2016 and to be among the three largest electricity transmission companies in the Americas and the largest in Latin America”. Around 80% of the expected increase in the energy transmission business is to be raised outside Colombia, with Brazil seen as one of the platforms for this growth.

In line with the group’s priorities, in 2008 CTEEP developed a definition of its new vision, which will contribute to the success of ISA’s MEGA goal. With the aid of an international consultancy, individual and group strategic discussions were held, involving people from within and outside the organization, taking into account market data, economic and financial analyses and studies of the potential for transmission line infrastructure growth in Brazil.
As a result, the company’s new vision was presented at the end of 2008: “In 2016, CTEEP will be the principal non-state owned company in the energy transmission sector in Brazil with revenues of R$ 3.5 billion, of which 25% originating from operations conducted outside the state of São Paulo”.

In order to ensure the implementation of this long-term goal, CTEEP has adopted a strategy based on solidity in the areas of finances, efficiency and competitiveness, and on the growth of the business, to be realized through the optimization of existing assets, participation in auctions for new transmission lines, and the ongoing evaluation of acquisition opportunities on the market.

In line with the ISA strategic management model, the company relies on a set of actions and tools that help to strengthen its market share, including the modernization of systems, innovation in processes and the expansion of the capacity of its transmission lines.
The company’s strategic direction makes use of the Strategic Map, devised on the basis of the Balanced Scorecard (BSC) methodology. As well as providing an understanding of the strategic goals and their causal relations, the BSC allows balanced follow-up of the development of the strategy, by means of strategic indicators grouped in four perspectives: Financial, Clients and Market, Productivity and Efficiency, and Learning and Development. A number of strategic initiatives were developed in 2008, and will be highlighted throughout this report.

For 2009, the main strategic directions are:

  • Build closer institutional relationships with companies and public bodies that operate in the Brazilian electricity sector, and with the regulatory agenda;
  • Strengthen the financial structure so as to make the planned level of growth achievable;
  • Prepare the organization and its human talent for growth, ensuring that its processes are in compliance with the ISA group;
  • Grow with efficiency, reliability and quality and maintain the level of service;
  • Create and take advantage of opportunities for growth in expansions, reinforcements and new concessions.