Bord na Móna - Source Issue 11 - (Page 12)

THE NEED FOR ord na Móna has changed many times throughout its existence: it has adapted in order to survive and grow. FEEDSTOCK There is nothing new about this for anyone who is currently working in the company or has worked here in the past; even the newest employees will be aware of changes happening at some level every other day. Change is difficult, even if the benefits are clear. Ask those who have tried to kick the smoking habit! Although we are talking about organisational change here, it inevitably means change at an individual level, as an organisation cannot move on unless its people accept the change required. Understanding why things need to change as well as what the shape of the change might be is fundamental to gaining acceptance and the examples from some of our business units should help to inform this understanding. 12 | Source Spring 2013 THE NEED FOR CHANGE Severe threats to the business are coming from the expiry of the Fuel Sales Agreements (FSA) with the power stations and the Public Service Obligation (PSO) support. The PSO is the support mechanism for certain electricitygenerating plants including the peat-burning power stations. It expires at Edenderry Power in 2015 and at the ESB-owned power stations in 2019. The ending of the free carbon-emission allowances this year has increased the cost of generating electricity from peat. All of these will lead to reduced volumes and prices of peat. Increasing competition in the home heating sector from convenience fuel, lowcost Irish and foreign peat suppliers, and increasing freight transport and road-haulage costs have necessitated reducing the supply price of peat to Retail. Peat-dilution requirements in the UK will also reduce the peat required for horticulture products. CHANGE B WE ARE REGULARLY REMINDED THAT ‘CHANGE’ IS INEVITABLE IN OUR LIVES AND THIS IS AS TRUE IN OUR WORKPLACE AS IT IS IN OTHER AREAS OF OUR LIVES WHAT NOW? Feedstock is focusing on all areas - production, transport, maintenance, management and administration. Costs will be reduced by €18 million by 2016 and market and customer demand will be met with competitive prices. The cost base for the management and maintenance of assets will be cut incrementally to achieve a full-year reduction of €5.7 million by 2016. The remaining €12.3 million of cost reduction will be achieved in all other areas and involves ongoing extensive consultation and engagement with employees. This will involve innovative changes in work practices and pay systems in order to secure a sustainable business and employment into the future. BIGGEST CHALLENGE Weather, business transformation, ending of fuel sales contracts ~ Paul Riordan, Head of Feedstock

Table of Contents for the Digital Edition of Bord na Móna - Source Issue 11

Bord na Móna - Source Issue 11
Contents
News From
Crisis Management
Midland Power
Clean Energy Future
The Need for Change
The Gathering
Game On
Developments In
Heritage Corner
A Nationwide Spotlight

Bord na Móna - Source Issue 11

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