Reorganization of the public utility companies

Abstract

This scientific paper includes an analysis of the provision of public city transport services and explores a new organizational model regarding the city companies, i.e. public utility companies and companies operating within a local self-government unit. The model includes separate groups of utility activities and commercial activities and centralizes the supporting functions into a new company, which will be in charge of joint affairs, thus creating a synergy. Such model ultimately generates higher revenues, higher service quality, higher operations efficiency and lower operating costs. The purpose of this scientific paper was to determine the compatibility of the public utility companies’ operations within a local self-government unit and to identify areas for improvement, which would ensure more efficient business operations. Under the assumption that the existing, general organizational structure has no conditions for a more optimal functioning, it is necessary to observe the subsystems, i.e. the elements or components and to repeat the procedure until reaching a solution which improves the functioning of the system at the level of observing it as a separate whole. An analysis of the public utility system’s productivity was carried out and the existence of compatibility among services, which would lead to synergies and business optimization, was examined. The research results indicate a fact that the introduction of the model for separate grouping of supporting activities and commercial activities creates a uniform quality, avoids data doubling, allows for a better workload organization and a more efficient planning leading to a higher level of productivity.