Visions and goals

The key document which delimits the company activities is a business plan for the period 2005-2010 which was approved by a general assembly in June 2005. This business plan is connected with the previous one which was valid until 1995.

The aims of company business plan for the period until 2010 were determined on the basis of a relevant inner and external environment and are as follows:

• Ensuring of The Czech Republic and European Union legislation fullfilment (so-called strategic investment) – the condition is the existence of water management infrastructure with the parameters that enable the completion of more strict ones. This is possible only due to maximal effective usage of the current facilities in combination with other investment activities focused on the reconstruction and modernization of the current facilities and the finishing of the building of the missing facilities.
• Ensuring property renewal – property care as well was property renewal are the main goals of company that lead to its establishment and that should be continuously ensured. The fulfillment of this aim is able only due to volume increase and investment improvement in the reconstruction and renewal of the current property.
• Ensuring development and reasonable company expansion – this aim is not able to reach in the long term period to the prejudice of ensuring of the previous aims or to the prejudice of the price of water rate and sewage charge. That is why the individual cases of development, expansion and acquisition of company will be measured in term of investment return and in the long term they will not be financed from the own resources of the company, it means that to the investment only the external resources will be needed.
• Meeting criteria of the maximum defined price development of the water rate and sewage charge – this aim is mentioned as the last one nevertheless the given order cannot be perceived as the order of importance of the individual goals. Performance of this obligation defines the maximal progress (in light of the amount increase) of water rate and sewage charge for this period providing the current fulfillment of the previous aims.

The business plans until 2010 were forumulated firstly to adequately and effectively fulfill the requirements of relevant internal and external company environment but secondly also to be real from the point of view of engineering investment, supplier and territorial dispensable capacities.

For ensuring of the above mentioned aims in intention of the business plan is necessary to create the sufficient amount of resources. The needed volume of resources can be ensured due to the different combination methods of own and external financial sources. The controlling interest of external financial sources is the endowment from Solidarity Fund (cohesive fund) of the European Union which is purposefully bound to the funding of already approved group projects (i.e. ISPA/FS Podkrušnohoří and FS Lužická Nisa).
Owned resources are substantially created due to the hire of the water management infrastructure property and profit of the operating company. The height of these items immediately influence the water price. Because of the social acceptability the maximum annual price increase of water rate was defined in the amount of 10,2%. Other factors that can influence the creation of own resources are fow example the demand elasticity, water management environment in the Czech Republic, legislative conditions in the area of price adjustment, shareholders, company bodies, co-owner and operators of SčVK. In the case of the next external sources obtaining (fund, credit) it might come about the demands´ limitation of the own sources or their distribution to the long-term perspective. In such a case it will be able to keep the total business plan and reasonably decrease the annual water price increase.

It is expected that due to the factors´ activity influencing the business plan there will be several changes in the internal an external company environment and because of this the management and company bodies will every year approve the water price and optimize its development with regard to the fulfillment of the business plan, progress of water requirement, social acceptability and other factors. The company management will continuously monitor, criticize and control development of the external sources creation ( stress on acquisiton of other dotation) at the rate of creation of the own resources in the for of profit, realize the measure pointing to minimalization of company tax stress and thereby creates the possibility of lower water rate increase.