General information about the Company
ANNUAL REPORT ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 1 Content Statement of chairman of board of directors and director general 4 4. Production performance 78 1. General information about the company 8 4.1 Transmitting power basics 79 1.1 Company basic performance 10 4.2 Electric power transmission 81 1.2 Leading events of the year that primarily effected 4.3 Technological connection 87 company development and success 11 4.4 Arrangement and principles of cooperation 1.3 Company location and timeline 17 with customers 93 1.4 Company position in the industry 21 4.5 Power saving and energy efficiency upgrade 97 2. Company mission and strategy 24 5. Technical re-equipment, development and innovation 105 2.1 Strategic goals of the company 25 5.1 Repair and maintenance activity 106 2.2 Company business priorities and development prospects 26 5.2 Technical policy of the company 109 5.3 Innovative technologies 111 3. Corporate management 28 3.1 Company management and control bodies 30 6. Investment activity 117 3.2 Share capital 64 6.1 Parameters of investment program 118 3.3 Dividend history 73 6.2 Direction and structure of capital investment 120 3.4 Company s&a 76 6.3. Long-term investment program 128
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 2 Content 3 7. Financial and economic performance data 132 10.4 Work with company personnel reserve 191 7.1 Financial results 133 10.5 Social accountability 194 7.2 Analysis of company financial situation 10.6 Key measures of efficiency 198 and performance 137 10.7 Occupational safety and health 199 7.3 Company tariff policy 142 10.8 Environmental protection 208 8. It and telecommunication 156 10.9 Forecast of emergencies at distribution grid complex 8.1 Primary areas of it-activity 157 facilities for 2014 215 8.2 Tasks and key projects planned for 2014 158 11. Public relations, relations with public authorities 218 and mass media, congress and exhibition activities 8.3 Development of automated process management systems 159 11.1 Communication with public authorities and social organizations 219 9. Internal audit and risk management 161 11.2 Public relations 219 9.1 Internal audit and risk management system 162 11.3 Interaction with mass-media 221 9.2 Main risk factors 164 11.4 Congress and exhibition activity 222 10. Human capital assets and social accountability 173 12. Procurement activities 224 10.1 Company hr and social policy 174 12.1 Regulatory control and principles of organizing 10.2 Staff size and structure 175 procurement activities 225 10.3 Staff training and development 183 12.2 Procurement procedures 226
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 3 Statement of Chairman of Board of Directors and Director General Statement of Chairman of Board of Directors and Director General
Chairman of OJSC IDGC Director General of OJSC IDGC of Siberia Board of Directors of Siberia Roman Berdnikov Konstantin Petukhov
Dear shareholders!
For OJSC IDGC of Siberia Board of Directors and Management Board last year was the year of opportunities to exercise managerial skills in challenging economic conditions. Tariff growth restraint, cross-subsidization and "last mile" issues jeopardized Company’s opportunity to show positive financial and economic performance. However, passed managerial solutions on coat saving, Company plans adjustment and asserting Company interests allowed not only to implement the Investment Program at full, provide quality and reliable power supply of the Siberian region, but to finish the year with confident results.
Due to existing tariff decisions while approving Company Business Plan 2013 Management Board and employees were
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 5 Statement of Chairman of Board of Directors and Director General challenged to prevent losses of over RUR4,478 million. Despite this, following the results of 2013, the whole team was able to achieve the indicator of RUR1,129 million, which is almost four times better than it was planned. Events for reduction of losses and control over non-contractual and non-metered consumption contributed to this result a lot.
Many events have been implemented under the investment program, which main objectives were increase in network capacity, upgrade of reliability and quality of power supply of socially relevant consumers, as well as creating conditions for technological connection.
Over the past year IDGC of Siberia specialists ensured performance of 25,615 agreements on technological connection of energy receipt devices, the total capacity of connected electric installations amounted 836.7 MW which is 3,661 agreements (17%) and 249.0 MW (42%) more than comparable indicator of 2012.
Our Company continued its productive work in the field of innovative development. One of the major projects was the project for design and development of an automated control system for maintenance and repair of equipment, which allowed to register technical facilities, certify the equipment, record violations of technological process and their investigations.
These innovations also affected personnel policy. Due to the program on business processes optimization structures of majority of branches’ management bodies subdivisions were unified and number of functional fields was centralized at the level of the executive office. Thereby, the most rational and uniform distribution patterns of spheres of action both between blocks of activities, and between subdivisions within each individual profile were introduced to the Company.
In 2013 in regard to relations with the shareholders Company, as before, aspired to adhere to the immutable principles of
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 6 Statement of Chairman of Board of Directors and Director General corporate governance, namely, accountability, transparency and responsibility. We are confident that in 2014 IDGC of Siberia will continue its development course, strengthen the achievements and will contribute to the development of the grid complex of Siberia.
Chairman of OJSC IDGC of Siberia Board of Directors Roman Berdnikov
Director General of OJSC IDGC of Siberia Konstantin Petukhov
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 7 General information about 01 the Company 01 General information about the Company
Company performs the following activities: regulated: — electric power transmission services;
— technological connection of customers to electric grids;
— electric energy (capacity) sale- performance of last resort supplier’s functions;
— heat energy production and transmission;
— water supply services;
Non-regulated: — communication services, information computational services;
— property lease services;
— provision of complex consultation services during solution of production technical, financial, managerial, legal and organizational issues as well as provision of functioning and organizational and legal development of distribution grid complex management system;
— execution of sole executive body authorities subject to jurisdiction of Distribution Grid Complex.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 9 01 General information about the Company
1.1 Company basic performance
Engineering performance 2011 год 2012 год 2013 год Transmission route total length, km, including 251 656,50 250 389,32 249 349,3 — increase within the reporting period -352,40 -1267,18 -1040
Substations capacity, MVA, including 39 992,80 40 328,13 40 542,3 — increase within the reporting period 115,21 335,33 266,4
Net generation, mln kWh 72 079,2 74 004,8 69 488,3 Energy loss, % 8,71 8,15 7,64
Financial and economic performance Sales revenue, mln rub,including: — electric power transmission 50 360 48 303 49 771 — technological connection 1 462 1 291 1 738 — electric power sale – – 11 513
Net profit, mln rub 311 1 156 - 1 129 Net assets, mln rub 29 519 30 686 29 270 Share's market value at the end of the year, rub 0,11183 0,08927 0,06993
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 10 01 General information about the Company
1.2 Leading events of the year that primarily effected Company development and success
In 2013 OJSC IDGC of Siberia commissioned 522 MVA of transformer capacity, 149.9 MVA of additional capacity and 1486 km of power lines.
Maximal capacity volume of applicant’s installations connected to electric grid of IDGC of Siberia in 2013 amounted 836.7 mW, in 2012 this indicator amounted 587.7 mW. In 2013 electric installations before 15 kW with total capacity of 253.1 mW were connected against 206.7 mW in 2012.
Company provided electricity supply of major industrial and socially significant facilities: Biysk Oleum Factory, basic cellular communication station “Trassa Baykal”, Regional Oncologic Dispensary in Krasnoyarsk.
Technological connection of generating facilities included into the list of facilities for wholesale market capacity supply approved by RF Government: TG‑12 and PGU‑90 of Omsk Central Heating and Power Plant –3 of OJSC TGC –11 with total capacity of 95.2 mW.
Electric energy loss amounted to 5.7 bln kWt (7.9% from net release), which is 0.8 bln kWt (1%) lower than 2012 in terms of conditions of 2013. Significant decrease in OJSC IDGC of Siberia losses was achieved by methodical work with customers in a part of exposure of freelance and unregistered electric energy consumption and installation of modern energy accounting meters (in 2012 47.000 “intellectual” counters).
Financing of investment program in 2013 amounted 8 bln. rub., absorption of capital investment more than 6.5 bln. rub.
In 2013 IDGC of Siberia specialists prepared grid complex to winter in quality manner and in time.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 11 01 General information about the Company
January
— Associated company of OJSC IDGC of Siberia, OJSC Sibirelektrosetservis, changed its location from Omsk to Krasnoyarsk. That increased controllability of S&A and work efficiency.
February
— From February 01 IDGC of Siberia accepted last resort supplier functions on the territory of Omsk Region. Transmission of these functions to grid companies improved situation with payment for electric energy, eliminated intermediary during work with energy companies and allowed to interact with customer in Single Window regime.
— On February 14–16 delegation of IDGC of Siberia participated in X Krasnoyarsk Economic Forum — “Russia: map of changes”.
March
— New opportunity is presented on IDGC of Siberia website: filling the applications for technological connection im-home with the help of personal computer connected to the Internet. This service can be used by both physical and legal entities.
— On March 27, IDGC of Siberia held meeting with trade union representatives. The following issues were discussed by top management with leaders of initial organization of trade unions of the branches: mutually profitable conditions of collective agreements, performance of Agreement on social partnership and field tariff agreement.
— On March 27–29 delegation of IDGC of Siberia participated in Forum of Siberia and Far East Grid Companies that took place in
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 12 01 General information about the Company
Krasnoyarsk. Developments for use at major energy companies and latest know-how were presented on the Forum.
April
— From April 3 till 5 Winter Sport Games of electric grid facilities employees took place in Sochi. Team of OGD of Siberia finished tenth of 24 teams in overall standing.
— On April 9, IDGC of Siberia published consolidated audited financial statements for 2012 prepared in accordance with international financial reporting standard (IFRS).
— On April 25 and 26, 2013, representatives of French company “Electricité Réseau Distribution France” (“ERDF”) held two- day visit to IDGC of Siberia. Analysis of electric energy loss and practice of introduction of modern steel accounting meters were the main topics of the French-Siberia meeting.
— On April 30, at All-Russian Energy Company Meeting in Moscow Oleg Budagrin, Director General of JSC Russian Grids, awarded Konstantin Petukhov, Director General of IDGC of Siberia, with Letter of Gratitude “For provision of reliable and continuous energy supply of Siberian Federal District…, for compleat professionalism and operational efficiency of IDGC of Siberia personnel during holding of emergency recovery works at energy facilities damaged in result of abnormal weather in Republic Tyva and Zabaykalsk Region.
May
— On May 1 Buryatenergo, branch of OJSC IDGC of Siberia, accepted functions of last resort provided on the territory of
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 13 01 General information about the Company
Republic of Buryatia for 1 year in accordance with current legislation.
June
— On June 19–20 VII Summer Sport Games of IDGC of Siberia took place in Barnaul. There was a strong competition among nine teams from all branches from Omsk to Chita and Company Executive body for the right to be the winner. Team of Omskenergo, OJSC IDGC of Siberia branch, won the completion.
— On June 24 Annual General Meeting of Company Shareholders following the results of 2012 was held.
— from June 27 till June 30, first energy motor rally organized by IDGC of Siberia and dedicated to the 50th anniversary of Krasnoyarsk Region Energy System was held. In terms of the rally energy festivals were held at the main city squares of Achinsk (territory of production division West Electric Grids) and Sharypovo (territory of production division KATEKelektoset).
July
— On July 5 IDGC of Siberia team being a part of JSC Russian Grids delegation participated in work of special educational program Energopolis in terms of Innovative Forum of Young Power Engineers “Forsazh‑2013”. Five young specialists of IDGC of Siberia took first place as a part of the team in defending project for: “Creation of environment for search of new energy resources”.
— reconstruction of substation Petropavlovskaya was completed in Altay Region. Approximately 13,000 of Altay Region residents, enterprises, socially significant facilities Petropavlovsy, Solonechensky, Krasnoshchekovsky, Ust-Kalmansky
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 14 01 General information about the Company
Bystro-Istoksky districts are provided with more reliable energy supply now.
August
— On August 05 IDGC of Siberia Board of Directors elected Roman Nikolayevich Berdnikov Chairman, First Deputy of Director General for technical policy of JSC Russian Grids.
— On August 12–16 professional competitions among operation and maintenance personnel of IDGC of Siberia took place at training field of Kuzbassenergo REG in v.Berezovo, Kemerovo Region. Buryatenergo team won the competition.
— On August 14 Oleg Budagrin, Director General of JSC Russian Grids, visited Kemerovo. In terms of the trip head of “Russian Grids” held working meeting with Governor of Kemerovo Region Aman Tuleev. The meeting was dedicated to preparation of energy grid complex for autumn-winter season of maximal load. Preparedness of OJSC IDGC of Siberia branch Kuzbassenergo REG and current work and preparedness to the upcoming winter was discussed at the meeting.
— On August 23 meeting of representatives of student energy teams of IDGC of Siberia with Konstantin Petukhov was held in Krasnoyarsk. In 2013 such teams were organized and successfully worked in all branches of IDGC of Siberia.
September
— On September 18 major technical reequipment of distributing point 133 (DP 133) was completed in Krasnoyarskenergo, branch of IDGC of Siberia. 24 new cells at the distribution point allowed to upgrade educational process and living conditions of students of Siberian Federal University.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 15 01 General information about the Company
October
— On October 11, IDGC of Siberia received Preparedness passport for autumn-winter period 2013–2014. Main committee’s conclusion is that energy equipment complies with all technical requirements and ready to provide continuous electricity supply of Siberian customer during upcoming winter.
— In July, September and October of 2013, RF President signed several orders on awarding the following employees of IDGC of Siberia with title “Honored Power Engineer of Russia”: C. Z. Zakharova (Kuzbassenergo REG), T. N. Kail and A. S. Pakhomov (Krasnoyarskenergo), S. N. Modenov (Omskenergo), A. L. Moskalenko (Chitaenergo).
— Free training seminars “Purchase activity of ODGC of Siberia” took place in cities of IDGC of Siberia responsibility zone. Holding such seminars helps IDGC of Siberia to ensure transparency of trade and purchase procedures.
— On October 29–31 IV International Electric Energy Forum “Innovation. Development 2013, UPGrid‑2013” was held in Moscow. Representatives of IDGC of Siberia participated in this event.
November
— On November 29, Oleg Budargin, Director General of JSC Russian Grids, and Zabaykalsk Region Governor Konstantin Ilkovsky signed Interaction Agreement. The document was signed in terms of mutual meeting of the Council with authorized representative of RF President in Siberian Federal District and Council of Interregional Association of RF Constituent Territories Economic Interaction “Siberian Agreement” dedicated to development of Siberian grid complex.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 16 01 General information about the Company
— On October 3 awarding of winners of “Best Informatization Projects 2013” took place in Barnaul. Specialists of Information Technology Department of IDGC of Siberia branch Altayenergo took third place with Phoenix project. Phoenix system is author design of IT Specialists IDGC of Siberia branch Altayenergo. Unique methods are based on modern cutting edge technologies appropriate only for this information field. Purpose of its creation is energy efficiency upgrade of energy companies work.
— On November 26–29 IDGC of Siberia delegation participated in Siberian Energy Forum — 2013.
December
— On December 14 IDGC of Siberia opened new Honourous Board.
— On December 19 on the eve of professional holiday Power Engineer Day in Kemerovo solemn commissioning of reconstructured substation “Rudnichnay” that provides electricity for the whole district of regional centre, took place. — On December 25 IDGC of Siberia received QMS Compliance Certificate in accordance with national standard GOST ISO 9001–2011. Certification that was held by the third party highly appreciated managerial decisions of IDGC of Siberia.
1.3 Company location and timeline
OJSC IDGC of Siberia serves consumers in the territory of Siberian Federal District. It covers Altai, Buryatia, Khakassia, Altai and Zabaikalsky Territories, Krasnoyarsk, Kemerovo and Omsk Regions. Territory of the Company presence exceeds 1.6 mln square kilometers. On daily basis, Company provides 11 mln people with power energy;
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 17 01 General information about the Company
Fig. 1 IDGC of Siberia service territory
Omsk
Krasnoyarsk Kemerovo
Barnaul Ulan-Ude Chita Abakan
Gorno-Altaisk Kyzyl
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 18 01 General information about the Company
IDGC of Siberia ensures work of Siberian Federal District industry represented by the first-rate enterprises of ferrous and nonferrous metallurgy, heavy and precision engineering, mining and transport branches.
Configuration of interregional distribution grids (IDGC) was established in April 2004 by OJSC RAO US of Russia Board of Directors resolution.
IDGC (including IDGC of Siberia) were established as 100% associated companies of OJSC RAO US of Russia in compliance with the resolution of OJSC RAO US of Russia Board of Directors with the purpose of effective management of distribution electric grid complex.
OJSC IDGC of Siberia was registered on 04.07.2005. Under establishment of JSC IDGC of Siberia its authorized capital amounted to 10 mln rubles and was divided into 100 ordinary shares with nominal value equal to 10 kopecks per share.
Initial configuration of OJSC IDGC of Siberia was approved by OJSC RAO US of Russia Management Board resolution dated 13.04.2005.
On 27.04.2007 and 26.10.2007 OJSC RAO US of Russia Board of Directors approved changes in OJSC IDGC of Siberia configuration, finally added by: Altaienergo OJSC, Buriatenergo OJSC, Krasnoyarskenergo OJSC, Kuzbassenergo — Regional Electric Grids OJSC, Omskenergo OJSC, Tomskaya Distribution Company OJSC, Tyvaenergo Holding OJSC, Tyvaenergo OJSC, Khakassenergo OJSC and Chitaenergo OJSC.
On 03.12.2007 Federal Antimonopoly Service of Russia approved reorganization of OJSC IDGC of Siberia in a form of the form of consolidation of Altaienergo OJSC, Buriatenergo OJSC, Krasnoyarskenergo OJSC, Kuzbassenergo — Regional Electric
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 19 01 General information about the Company
Grids OJSC, Omskenergo OJSC, Tomskaya Distribution Company OJSC, Tyvaenergo Holding OJSC, Khakassenergo OJSC and Chitaenergo OJSC.
Extraordinary General Meeting of OJSC IDGC of Siberia Shareholders, held on 25.12.2007, passed the resolution on OJSC IDGC of Siberia reorganization in the form of consolidation of Altaienergo OJSC, Buriatenergo OJSC, Krasnoyarskenergo OJSC, Kuzbassenergo — Regional Electric GridsOJSC, Omskenergo OJSC, Tomskaya Distribution Company OJSC, Tyvaenergo Holding OJSC, Khakassenergo OJSC and Chitaenergo OJSC, and on approval of the agreement on consolidation of the aforesaid companies into OJSC IDGC of Siberia.
On 31.03.2008 entry was made to the Unified State Register of Legal Entities on termination of Altaienergo OJSC, Buriatenergo OJSC, Krasnoyarskenergo OJSC, Kuzbassenergo — Regional Electric Grids OJSC, Omskenergo OJSC, Tomskaya Distribution Company OJSC, Tyvaenergo Holding OJSC, Khakassenergo OJSC and Chitaenergo OJSC activities by their consolidation to OJSC IDGC of Siberia. Company authorized capital expanded from 10,000,000 to 8,936,765,511.5 rubles.
From this moment OJSC IDGC of Siberia became the largest company in Siberian Federal District, and Company came to the new stage in its history.
OJSC IDGC Holding, the biggest infrastructural company of Russia owing 80 percent of the distribution grid complex in our country, has owned 52.88% of the Company authorized capital since 01.07.2008.
In 2011 Company initiated additional issue of shares (private placement) aimed at financing of works related to the outdoor power supply of Raspadskaya well and improvement of reliability of Mezhdurechenskiy District, Kemerovo Region, power supply.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 20 01 General information about the Company
OJSC IDGC Holding is the only purchaser of the shares. Within the reporting period Company authorized capital increased to 9,481,516,324.9 rub, and OJSC IDGC Holding share in the Company authorized capital amounted to 55.59% as a result of additional issue.
In 2013 OJSC IDGC of Siberia continued to exercise powers of sole executive body of OJSC Tyvaenergo.
1.4 Company position in the industry
At present OJSC IDGC of Siberia is one of eleven IDGCs. Company is a natural monopoly entity in the field of electric power transmission service. Company primary business activity includes electric power transmission service and technological connection of energy receptacles (power plants) of corporate persons and individuals to power networks. At the end of 2013 share of Company revenue from electric power transmission amounted to more than 78% of the total revenue. Company primary business activity is not of a pronounced seasonal nature.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 21 01 General information about the Company
Fig. 2 Structure of electric energy release from Company grid for 2013 in terms of electric grid voltage levels
7,34% СН1 16,07% НН 16,59% СН11 59,99% ВН
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 22 01 General information about the Company
Applicants, who indicated their willingness to connect energy receptacles to the Company grids, include natural persons, small and medium-sized enterprises and large industrial establishments.
The largest companies in the territory of the Company presence that conduct activity on technological connection include: OJSC Russian Railways, OJSC 28th Electric Network, OJSC Ulan-Ude Energo, ME Abakan Electric Networks, LLC Interdistrict Electric Networks, LLC EvrazEnergoTrans, OJSC North-Kuzbass Energy Company, LLC Kuzbass Grid Company, OJSC Grid Company Altaikraienergo, LLC BGC, LLC KREC, OJSC Minusinsk City Electric Networks, MUE of Shushenskiy District Heating and Electric Networks, MPME Omskelektro, OJSC ETC, MUE Gorelektroseti.
Major consumers of the Company service are: OJSC Altaienergosbyt, LLC BGC, Grid Company Altaikraienergo, OJSC Buryat energosbyt, OJSC Krasnoyarskenergosbyt, LLC Rusenergosbyt Sibir, LLC Krasnoyarsk Regional Energy Company, OJSC Russian Railways, OJSC Kuzbassenergosbyt, OJSC MEF, LLC Rusenergosbyt, LLC RUSALNovokuznetsk, OJSC Kuznetskiye Ferrous Alloys, OJSC Omskenergosbyt, MPME Omskelektro, OJSC Khakasenergosbyt, OJSC RUSAL Sayanogorsk, OJSC Chitaenergosbyt.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 23 02 Company mission and strategy 02 Company mission and strategy
2.1 Strategic goals of the Company Mission of IDGC of Siberia: IDGC of Siberia strives for effective distribution grids management that ensures reliable and qualitative electrical energy supply of growing economic demands and Siberian social sector under economical price.
Being an integral part of RF grid complex IDGC of Siberia is connected to RF Strategy on Electric Grid Complex Development till 2030 (approved by RF Government decree dated 03.04.2013 no.511‑р).
Key points of state policy in a field of electric grid industry include establishment of economic stimulation methods for grid companies, provision of conditions for tariff stabilization, attraction of new capital to grid complex in the volume sufficient for modernization and reconstruction of grid facilities to ensure electricity supply reliability.
Strategic goals: I Upgrade of reliability and quality level of services provided by end consumers. 1. Decrease of equipment depreciation level. 2. Accident rate reduction. 3. Reduction of terms of new construction, technical reequipment and reconstruction of facilities. 4. Energy efficiency upgrade and innovative development.
II Operational and investment efficiency upgrade. 1. Reduction of operating costs.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 25 02 Company mission and strategy
2. Reduction of electric energy loss. 3. Management of S&A and other assets. 4.Investment efficiency upgrade. 5. Development of information technologies.
III Upgrade of investment appeal.
IV Development of human assets. 1. Work safety. 2. HR policy in terms of attraction of graduates and upgrade of personnel motivation for achievement of strategic indicators.
V Enhancement of interaction with shareholders, company and investors.
2.2 Company business priorities and development prospects IDGC of Siberia business priorities: One of Company business priorities in 2013 was implementation of measures for improving procurement efficiency.
Economical impact following the results of purchase procedures for 2013 amounted 2.1 bln. rub. with VAT or 11.79% from announced cost of competitive purchase.
For the purpose of optimization of key business processes of IDGC of Siberia comparative evaluation system (benchmarking) was developed for key indicators of financial an economic activities of structural division (branch, production division, REG).
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 26 02 Company mission and strategy
In 2013 all Company subdivisions tried to improve their indicators by application of better methods and optimization of processes. Held events resulted in significant increase of reliability of electricity supply (average length of electricity supply interactions and overall accident risk decreased). Loss in 10–0.4 kV grids in comparison with 2012 reduced for 445 mln. kWh (-10%).
Total economic impact of implementation of production efficiency upgrade programs following the results of 2013 amounted 1.5 bln. rub., including effect from decrease of electric energy loss by 0.6 bln.rub.
Main midterm business priority is reduction of loss in 10–0.4 kV grids to the level of technical losses by 2020, and implementation of efficiency management program with reduction of specific controlled expenses by 18% to basic level of 2012.
Company development perspective. Company performs its activity on the territory of Siberian Federal District. At the present it is one of the most rapidly developing Russian territories. IDGC of Siberia has important issues to solve, such as: — introduction of modern technologies of “smart” electric grids that allow to increase carrying capacity and continuity of electricity supply, reduce losses and expenses for technical and commercial registration;
— upgrade customer service level, provide high quality, secure electricity supply and modern and transparent technological connection to electric grids at available price;
— perform big-scale modernization of Company assets. Lack of investments during the last 20 years led to significant depreciation of electric grids. Solution of this problem is one of main priorities of IDGC of Siberia. In the medium term depreciation level has to be reduced in distribution electric grids up to 50 percent.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 27 03 Corporate management 03 Corporate management
Corporate management includes a whole range of relations between Company management, Management Board, shareholders and other parties concerned. Corporate management determines frames, within which Company goals shall be arranged, and means for achieving the goals and control over Company performance.
Primary goal of the corporate management is to ensure Company successful development with due regard to balance of interests of shareholders, investors and Company management.
In compliance with its primary goal, corporate management has tasks as follows: — providing guarantee to the shareholders rights; — keeping balance of responsibility between the people interested in the Company activity; — improvement of the Company investment attractiveness and shareholder value; — ensure maximum information transparency and openness of the Company.
Solving the problems, Company is governed by Federal Law “On Joint Stock Companies”, Charter, Company Corporate Management Code, approved by Board of Directors resolution dated 11.09.2009 (The Minutes no.40/09), Provision on Information Policy approved by Board of Directors resolution dated 29.08.2013 (The Minutes no.126/13), best world methods of corporate management and Corporate Management Principles, underlying formation, functioning and improvement of the Company corporate management: — fair play; — openness; — accountability of Company management bodies to shareholders;
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 29 03 Corporate management
— transparency; — responsibility.
3.1 Company management and control bodies
Structure of the Company corporate management. Company Management Bodies: — General Shareholders Meeting; — Company Board of Directors; — Board (Company collegial executive body); — Director General (Company sole executive body);
Control bodies: — Audit Commission.
Management bodies General Shareholders Meeting. General Shareholders Meeting is the supreme management body of OJSC IDGC of Siberia, it makes decisions on Company activity in compliance with current legislation of the Russian Federation and Company Charter.
In accordance with Federal Law “On Joint Stock Companies” and Company Charter General Shareholders Meeting covers issues on introduction of amendments and additions to the Company Charter, approval of redrafted Company Charter, Company
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 30 03 Corporate management reorganization and dissolution, election of the Board of Directors and company Audit Commission staff, annual reports approval, allocation of profits, dividend payment, approval of transactions in cases specified by current legislation and other issues.
Issues, attributed to the exclusive competence of General Shareholders Meeting, cannot be transferred the Company executive bodies, Company Board of Directors, apart from issues prescribed by Federal Law “On Joint Stock Companies”.
On June 24, 2013, Annual General Shareholders Meeting following the results of 2012 approved Annual Report, annual financial statements, including Company Profit and Loss Statement for 2012, elected new staff for the Company Board of Directors and Audit Commission, approved Company Auditor and Agreement on cancellation of indebtedness under Service agreement on electric energy transmission by Unified National (All-Russia) Electric Grid between OJSC IDGC of Siberia and OJSC Sibirelektrosetservis, classified as transactions of interest, under which OJSC Sibirelektrosetservis was determined as a winner in result of tender procedures that can be held in the future in the course of regular business activity of IDGC of Siberia.
Internet address of the page(s) where full text of the Annual General Shareholders Meeting resolutions is available: http://www.mrsk-sib.ru/shareholders/corporategovernance/Pages/shareholdersmeeting.aspx.
Board of Directors. Board of Directors is a strategic management body of the Company, that performs general management of the Company activity, apart from issues assigned to General Shareholders Meeting authority by legislation of the Russian Federation.
Activity of the Board of Directors is governed by Federal Law “On Joint Stock Companies” and other legal acts of the Russian Federation, Company Charter and Provisions for order of convening and holding of the Company Board of Directors meetings.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 31 03 Corporate management
In accordance with the Company Charter, Board of Directors authority includes determination of the Company business priorities and strategy of its development, preparation and convocation of General Shareholders Meetings, electing Director General and Board staff, creating and electing staff for Commissions of the Board of Directors, approval of the Company business-plan, preliminary approval of resolutions for the Company to make transactions and other issues.
In 2013 Company Board of Directors held 21 meetings, considered 452 issues, including issues with significant importance for the Company: on preparation and convocation of the Annual General Shareholders Meeting, Company Director General Report on passing 2012-2013 autumn-winter period and on Company preparedness to 2013-2014 autumn-winter period, approval of the Company Business-Plan for 2013 (including Investment Program), approval of new organizational structure of Company executive body, determination of cases (amounts) of transactions with OJSC IDGC of Siberia property, subject to preliminary approval by Board of Directors.
Information on consideration of the issues related to Company business priorities by Board of Directors is presented in Appendix No. 11 to the Annual Report.
Within consideration of the issues on different directions of the Company activity, Board of Directors approved a range of documents essential for performance of the Company activity, including: 1. Pension-Plan for the staff of OJSC IDGC of Siberia for 2013.
2. Company Insurance Coverage Program for 2014.
3. OJSC IDGC of Siberia Annual Purchase program for 2013.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 32 03 Corporate management
4. Updated register (sale program) of Company non-core assets.
5. Corrected OJSC IDGC of Siberia Program of Innovative Development synchronized in terms of 2012-2016 with Company Investment Program for 2013-2018 approved by executive bodies of RF constituent territories.
6. Corrected OJSC IDGC of Siberia OJSC IDGC of Siberia Power Saving and Energy Efficiency Upgrade Program for 2013- 2018.
7. OJSC IDGC of Siberia adjusted Program for registration of title to real estate and registration/re-registration of land use rights for the period of 2011-2018 with due regard to work implementation aimed at preparation of information on the borders of protective zones at power facilities.
8. Standard “Procedure holding of technological and price audit of major investment projects”.
Payment of remuneration and compensations for Company Board of Directors shall be done in accordance with Provision on Payment of remuneration and compensations approved by General Meeting of Shareholders to OJSC IDGC of Siberia Board of Directors members. In accordance with abovementioned Provision remuneration of members of Company Board of Directors shall depend on results of Company activity and individual work of Board of Directors members.
Information on participation of Board of Directors member in Company Board of Directors meetings in 2013 is presented in Appendix no. 16.
Total amount of remuneration paid to members of Board of Directors for 2013 is RUR13,538,795. Information on remuneration
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 33 03 Corporate management paid to members of Board of Directors for 2013 is presented in Appendix no.17.
In 2013 members of Board of Directors did not perform transactions with Company shares. Company is not aware on making a claim in 2013 against members of Company Board of Directors.
Company provided no training of members of the Company Board of Directors at its expense in 2013.
For reporting 2013 year Company management was performed by 2(two) memberships of OJSC IDGC of Siberia Board of Directors.
Personal membership of Company Board of Directors elected by Extraordinary General Meeting of Shareholders on 28.08.2012 is presented in Appendix no. 15.
Table no. 2. Current membership of Company Board of Directors elected by Annual General meeting of Shareholders on 24.06.2013
Full name Position held at the moment of nomination Roman Nikolayevich Berdnikov Member of OJSC IDGC Holding Management Board
Aleksey Evgenyevich Bay Director for Legal Issues and Corporate Assets, member of LLC Siberian Generating Company Management Board
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Full name Position held at the moment of nomination Leonid Valeryevich Neganov Deputy Director of Department for Electric Energy Industry Development, Russian Ministry of Energy. Samuil Moiseyevich Zilberman Director General of OJSC FGC UES branch, Highway Networks of Siberia.
Sergey Nikolayevich Mironosetsky Director General, Chairman of LLC Siberian Generating Company Management Board Konstantin Yuryevich Petukhov Director General of OJSC IDGC of Siberia
Oksana Vladimirovna Shatokhina Director for Economics of OJSC IDGC Holding
Sergey Vasilyevich Podlutsky Deputy Head of Department, Head of Division for summary analytics of external production resources, Investment Department, OJSC IDGC Holding . Anton Mikhaylovich Kislyakov First Deputy Head of Department for Legal Groundwork, OJSC IDGC Holding .
Igor Yuryevich Sorokin Technical Director Deputy, Director for Investments, member of LLC Siberian Generating Company Management Board
Vladimir Valeryevich Rashevsky Director General of OJSC Siberian Coal Energy Company.
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Roman Nikolayevich Berdnikov Chairman of Board of Directors Year of birth: 1973, graduated from Moscow Energy Institute. Positions held for the last five years: 2009–2010. — Member of Management Board, Director Development and Interaction with clients of OJSC FGC UES; 2010–2012. — Deputy OJSC FGC UES Management Board; 2012–2013. — First Deputy of Chairman of OJSC FGC UES Management Board; 2013 till present. — Member of Management Board, First Deputy of Director General for Technical Policy of JSC Russian Grids. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Aleksey Evgenyevich Bay Year of birth: 1978, graduated from Far Eastern State Technological University. Positions for the last five years: 2007–2009: Head of Group for Corporate Procedures with Energetic Assets Directorate, Head of OJSC Siberian Coal Energy Company Directorate for Corporate Interaction with energetic organizations; 2009 –2013: Director for Corporate Assets, Director for Legal Issues and Corporate Assets of LLC, Siberian Generating Company. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Leonid Valeryevich Neganov Year of birth: 1972, graduated from Moscow State Engineering Physical Institute, State University — Higher School of Economics. Positions for the last five years: 2009–2011. — Deputy Director General of OJSC Bashkirenegro. 01.2012–07.2012 — Director General of OJSC Acid group. 08.2012–2013. — Deputy Director of Department for Electric Energy Development in Russian Ministry of Energy. 2013 — till present. — Ministry of Energy of Moscow Region. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Samuil Moiseyevich Zilberman Year of birth: 1946, graduated from Krasnoyarsk Polytechnical University. Positions for the last five years: From 2002 till present time: Director General of OJSC FGC UES branch Siberian Transmission Electric Grids. OJSC IDGC of Siberia authorized capital amounts to 0.000478%.
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Sergey Nikolayevich Mironosetsky Year of birth: 1965, graduated from Novosibirsk State University. Positions for the last five years: 2005–2011: Deputy Director General of OJSC Siberian Coal Energy Company; 2009–2013: Director General of LLC, Management Company Siberian Generating Company. (Director General of LLC, Siberian Generating Company). 2013 — till present: member of Board of Directors of LLC Siberian Generating Company. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Konstantin Yuryevich Petukhov Year of birth: 1965, graduated from Altaysky State Technical University named after I. I. Polzunov. Positions for the last five years: 2006–2008: Head of OJSC IDGC of Siberia Department for Electrical Energy Transmission, Deputy Director for Development and Service rendering of OJSC IDGC of Siberia. 2008–2010: Director for Development and Service Rendering of OJSC IDGC Holding; 2010–2011: Director for Strategy and Development of OJSC IDGC Holding; From 2011 till present time: OJSC IDGC of Siberia Director General. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Oksana Vladimirovna Shatokhina Year of birth: 1975, graduated from Financial Academy with RF Government. Positions for the last five years: 2008–2012: Head of OJSC FGC UES Department for Economic Planning and Budgeting 2012–2013: OJSC FGC UES Financial Director, OJSC IDGC Holding Director for Economics From 2012 till present: Deputy Director General for Economics and Finances of JSC Russian grids. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Sergey Vasilyevich Podlutsky Year of birth: 1980, graduated from State Management University, Management in Energy Industry. Positions for the last five years: 2009–2013. — Deputy Head of Department, Head of Division for Summary Analytics of External Production Resources, Investment Department, OJSC IDGC Holding. 2013 — till present. — Head of Directorate of Summary Planning and Report, JSC Russian Grids. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Anton Mikhaylovich Kislyakov Year of birth: 1970, graduated from Moscow State Legal Academy. 2008 — till present. — Head of Directorate for provision of current activity of OJSC Russian Grids Legal Department. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Igor Yuryevich Sorokin Year of birth: 1974, graduated from Moscow State Technological University Stankin. Positions for the last five years: 2009–2012. — Deputy Technical Director — Director for Investment of LLC Management Company Siberian Generating Company. 2012–2013. — Director for Innovative Development of LLC Siberia Generating Company. 2013 — till present. — Director General of LLC Management Company of commercial immovable property facilities. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Vladimir Valeryevich Rashevsky Year of birth: 1973, graduated from Financial Academy with RF Government, Postgraduate studies in Financial Academy with RF Government (awarded with degree of Ph. D. in Economics). Positions for the last five years: 2008 — till present. — Member of Management Board of All-Russia Union of Employers with Russian Union of Industrialists and Entrepreneurs. 2010 — till present. — Member of Council of Skolkovo Fund. 2011 — till present. — Member of Board of Directors, member of Strategy Committee of OJSC Siberian Coal Energy Company, member of Board of Directors of LLC Siberian Generating Company. 2012 — till present — Member of Presidium of non-commercial partnership The Council of Railway Rolling Stock Service Market Members. 2013 — till present. — Member of Board of Directors of Siberian Coal Energy Company PLC, member of OJSC IDGC of Siberia Board of Directors. This member does not own a share in OJSC IDGC of Siberia authorized capital.
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Committees of the Board of Directors Committees of the Board of Directors are established for preliminary consideration of the uttermost important agenda issues of the Board of Directors Meeting, settlement of disputes between shareholders prior to meeting, preparation of well-grounded recommendations to the Board of Directors for passing resolutions.
Currently Company has created and keeps operating of: — Strategy, Development, Investments and Reforming Committee; — Reliability Committee; — Audit Committee; — Personnel and Remuneration Committee; — Committee on Technological Connection to Grids.
Strategy, Development, Investments and Reforming Committee The Committee was created by Company Board of Directors resolution of 25.04.2007. Essential tasks of the Committee include development and submission to Board of Directors proposals on Company business priorities, enhancement of investment attractiveness, improvement of investment activity, Company performance evaluation.
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Table 3. Staff of Strategy, Development, Investments and Reforming Committee, elected by Company Board of Directors on 31.07.2013
Full name Position held at the moment of election
Sergey Yuryevich Lebedev Chairman of Committee, Director of Department for Strategic Development of OJSC Russian Grids
Konstantin Yuryevich Petukhov Acting Director General, OJSC IDGC of Siberia
Aleksey Evgenyevich Bay Director for Corporate Assets, Member of LLC Management Company Siberian Generating Company Board
Ksenia Valeryevna Khokholkova Deputy Head of Directorate, Head of Division for Disclosure of Information, Department for Corporate Management and Shareholder Interaction, JSC Russian Grids.
Valery Ivanovich Isaev Head of Directorate for Finances, Department for Corporate Finances, JSC Russian Grids.
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Full name Position held at the moment of election
Sergey Vasilyevich Podlutsky Head of Directorate for Summary Planning and Reporting, Department of Investment Activity of JSC Russian Grids.
Tatiana Aleksandrovna Ivanova Head of Directorate for Methodology of Tariff-making, Department of Tariff Policy of JSC Russian Grids
Marina Aleksandrovna Lavrova Head of Economics Directorate, Department of Economic Planning and Budgeting, JSC Russian Grids
Igor Yuryevich Sorokin Director for Investment Development of LLC Siberian Generating Company
Astkhik Artashesovna Consultant of Corporate Management Division, Department for Corporate Bashindzhagian Management, Pricing Environment and Control and Revision Work in branches of fuel and energy industry branches of Russian Ministry of Energy.
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Provision on this Committee can be seen on IDGC of Siberia corporate web-site in the Internet at the address: http://www.mrsk-sib.ru/shareholders/corporategovernance/Pages/internaldocuments.aspx.
Total amount of remuneration and compensations paid to members of Committee for Strategy, Development and Reforming in 2013, amounted RUR830, 967 00 kopeks.
Reliability Committee The Committee was created by Company Board of Directors resolution of 30.03.2006. Primary task of the Committee is appraisal of technical management performance, taking necessary actions to ensure reliable work of equipment and personnel in crisis and pre-crisis situations, meeting requirements of complex reliability, appraisal of completeness and sufficiency of the measures taken after accidents and technological violations and control over their fulfillment.
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Table 4. Staff of Reliability Committee, elected by Company Board of Directors on 31.07.2013
Full name Position held at the moment of election
Farit Gabdulfatovich Shaidullin Chairman of Committee, Head of Committee, Head of Directorate of Assets Analy- sis, Department for production Assets Management, OJSC Russian Grids
Andrey Valeryevich Abramov Deputy Director General for Economics and Finances, OJSC IDGC of Siberia
Evgeny Vladimirovich Mitkin Deputy Director General for Technical Issues, Leading Engineer of OJSC IDGC of Siberia
Aleksey Vasilyevich Petukhov Deputy Director General for Development and Service Rendering, OJSC IDGC of Siberia
Igor Yuryevich Sorokin Director for Investment Development, LLC Siberian Generating Company
Aleksey Evgenyevich Bay Director for Corporate Assets, Member of LLC Management Company Siberian Generating Company Board
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In 2013 Reliability Committee held 5 meetings in absentia. Committee considered and submitted to the Board of Directors proposals on issues within the Committee authority, including consideration of the Company Director General reports: on passing 2012–2013 autumn-winter season by OJSC IDGC of Siberia, on OJSC IDGC of Siberia preparedness to 2013–2013 autumn- winter season, on Company performance within fire danger period of 2013 and other issues: analysis and development of recommendations.
Provision on this Committee can be seen on IDGC of Siberia corporate web-site in the Internet at the address http://www.mrsk-sib.ru/shareholders/corporategovernance/Pages/internaldocuments.aspx.
Total amount of remuneration and compensations paid to members of Reliability Committee in 2013, amounted RUR134, 371.50 kopeks.
Audit Committee. The Committee was created by Company Board of Directors resolution of 12.12.2008. The basic idea of the Committee performance is supervision of keeping annual independent audit of the Company bookkeeping and financial (accounting) reports, supervision of the process of the Company auditors selection, appraisal of the Company Auditor's report, appraisal of the efficiency of the Company internal control procedures and submission of the proposals for their improvement.
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Table 5. Staff of Audit Committee, elected by Company Board of Directors on 31.07.2013
Full name Position held at the moment of election
Oksana Vladimirovna Shatokhina Chairman of the Committee, Deputy Director General for Economics and Financ- es, JSC Russian Grids
Igor Yuryevich Sorokin Director for Investment Development, LLC Siberian Generating Company
Aleksey Evgenyevich Bay Director for Legal Issuer and Corporate Assets, LLC Siberian Generating Company
Samuil Moiseyevich Zilberman Director General of OJSC FGC UES branch, Highway Networks of Siberia.
Sergey Vasilyevich Podlutsky Head of Directorate for Summary Planning and Reporting, Department for Invest- ment Activity, OJSC Russian Grids
Anton Mikhaylovich Kislyakov Head of Directorate for provision of current activity of Legal Department of JSC Russian Grids.
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In 2012 Audit Committee held 8 meetings in absentia. Committee considered and submitted to the Board of Directors proposals on issues within the Committee authority, including preliminary consideration of Company Annual Report for 2012, appraisal of the audit report on the Company accounting statements for 2012, candidacy of the Company external Auditor for keeping audit of the Company financial (accounting) statements for 2013 and other issues.
Provision on this Committee can be seen on IDGC of Siberia corporate web-site in the Internet at the address: http://www.mrsk-sib.ru/shareholders/corporategovernance/Pages/internaldocuments.aspx.
Total amount of remuneration and compensations paid to members of Audit Committee 2013, amounted RUR217, 187.50 kopeks.
Personnel and Remuneration Committee The Committee was created by Company Board of Directors resolution of 12.12.2008. Committee primary function includes development and submission to the Company Board of Directors proposals on determination of principles and criteria for fees of the Company Board of Directors members, members of the collegial executive body and persons performing functions of the sole executive body, including management company or manager, material terms and conditions of the agreements made with members of the collegial executive body and persons performing functions of the sole executive body, criteria of the candidates selection to the Company Board of Directors, collegial executive body and sole executive body, appraisal of the sole executive body performance (management company, manager) and collegial executive body performance.
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Table 6. Staff of Personnel and Remuneration Committee of OJSC IDGC of Siberia Board of Directors, elected by Company Board of Directors on 31.07.2013
Full name Position held at the moment of election
Yuriy Nikolayevich Mangarov Chairman of Committee, Deputy Executive Director, Head of Back Office, JSC Russian Grids
Dmitry Aleksandrovich Chevkin Director of Department for HR policy and Organizational Development, JSC Russian Grids
Natalia Ilyinichna Erpsher Head of Directorate of Organizational Development, Department for HR Policy and Organizational Development, JSC Russian Grids
Igor Yuryevich Sorokin Director for Investment Development. LLC Siberian Generating Company
Aleksey Evgenyevich Bay Director for Legal Issues and Corporate Assets of LLC, Siberian Generating Company
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In 2013 Personnel and Remuneration Committee held 10 meetings in absentia.
Committee considered and submitted to the Company Board of Directors proposals on issues within the Committee authority, including issues: on approval of candidates for positions of Deputy Directors of Company branches, on consideration of redrafted Provision on financial stimulation of OJSC IDGC of Siberia Director General, on preliminary consideration of organizational structure of Company Executive body. Committee submitted proposals to the Company Director General on organization structure of Company Executive body and considered candidacies to the positions of the Deputy Directors of the Company branches.
Provision on this Committee can be seen on IDGC of Siberia corporate web-site in the Internet at the address: http://www.mrsk-sib.ru/shareholders/corporategovernance/Pages/internaldocuments.aspx.
Total amount of remuneration and compensations paid to members of Personnel and Remuneration Committee in 2013 amounted RUR272,300.50 kopeks.
Committee on Technological Connection to Grids. The Committee was created by Company Board of Directors resolution of 10.02.2009. Creation of the Committee was aimed at ensuring of the activity transparency and non-discriminatory access to technological connection of consumers to the Company grids. Committee tasks include development and submission to the Company Board of Directors proposals on improvement of the legislative grounds of antimonopoly regulation and Company internal by-laws on providing non-discriminatory access to technological connection of consumers to grids, appraisal of the efficiency of the Company performance related to technological connection of consumers to grids.
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Table 7. Staff of Committee on Technological Connection to Grids, elected by Company Board of Directors on 29.08.2013
Full name Position held at the moment of election
Anton Mikhaylovich Kislyakov Chairman of the Committee, Head of Directorate for proviso if current activity of Legal Department, JSC Russian Grids
Igor Yuryevich Sorokin Director for Investment Development, LLC Siberian Generating Company
Aleksandr Yuryevich Korneev Head of Directorate for regulation of technological connection, Department for Perspective Development of Grids and Technological Connection, JSC Russian Grids
Aleksey Vasilyevich Petukhov Deputy Director General for Development and Service Rendering, OJSC IDGC of Siberia
Aleksey Evgenyevich Bay Director for Legal Issues and Corporate Assets, LLC Siberian Generating Company
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In 2013 Reliability Committee held 5 meetings in absentia.
The Committee considered and submitted to the Company Board of Directors proposals on issues within the Committee authority, such as consideration of Director General reports on Company performance at technological connection of energy receptacles of applicants to power grids, on implementation of technological connection agreements made with privileged applicants, report for technological connection of privileged applicants for 2012 and other issues.
Provision on this Committee can be seen on IDGC of Siberia corporate web-site in the Internet at the address: http://www.mrsk-sib.ru/shareholders/corporategovernance/Pages/internaldocuments.aspx.
Total amount of remuneration and compensations paid to members of Committee on Technological Connection to Grids in 2013 amounted RUR123,147.00.
Management Board. The Board, Company collegial executive body, operates on the grounds of the Company Charter and Provisions for Board, Company internal document, approved by General Meeting of Shareholders, Provision on Management Board can be seen on IDGC of Siberia corporate web-site http://www.mrsk-sib.ru/shareholders/corporate/int_doc/. Quantitative composition of Company Board is determined by Board of Directors resolution dated 30.07.2010 (The Minutes no.60/10) in report period amounted 7 people. Tasks of the Company Board include solving of the issues related to current management of the Company activity in compliance with resolutions of General Shareholders Meeting and Company Board of Directors, and preliminary consideration of the issues submitted to Company Board of Directors in accordance with the Company Board authority. Board is subordinate to Company Board of Directors and General Shareholders Meeting.
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Table 8. Staff of Management Board as of 31.12.2013
Full name Position held
Konstantin Yuryevich Petukhov Chairman of the Management Board Director General, OJSC IDGC of Siberia
Andrey Valerievich Abramov Deputy Director General of Economics and Finance, OJSC IDGC of Siberia
Aleksey Vladimirovich Leontyev Chief Accountant, Head of Department for Accountancy and Tax Registration, OJS IDGC of Siberia
Vladimir Alekseyevich Leontyev Deputy Director General for Capital Construction, OJSC IDGC of Siberia
Evgeniy Vladimirovich Mitkin Deputy Director General on Technical Matters, Chief Engineer, OJSC IDGC of Siberia.
Aleksey Vasilyevich Petukhov Deputy Director General for Development and Service Rendering, OJSC IDGC of Siberia
Ruslan Anatolyevich Yakovlev Deputy Director General for Corporate Management, OJSC IDGC of Siberia
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In 2013 Management Board held 44 meetings.
Meeting of the Board considered issues related to Company current activity, including productive and financial issues, business- planning and investments, Deputy Director General reports on business activities, and issues submitted for consideration of the Board of Directors and requiring preliminary consideration of the Management Board.
Amount of fees for OJSC IDGC of Siberia Board is determined by authorized person of the Board of Directors in compliance with Provisions for Management Board.
Total amount of remuneration paid to members of Management Board in 2013 amounted RUR1,137,695.22
In 2013 members of the Board made no transaction with the Company shares, no claims were filled to the Board members.
Director General Director General, elected by resolution of the Company Board of Directors, Company sole executive body, performs management of OJSC IDGC of Siberia current activity. Competence of Company Director General includes all matters of Company operations current management, except for the issues falling within the competence of Company General Meeting of Shareholders and Board of Directors.
Director General is subordinate to the Board of Directors, operates in compliance with resolutions, made by Company Board of Directors, and systematically accounts for its performance to the Board of Directors.
Konstantin Yuryevich Petukhov was born in 1971 in Barnaul, Altay Region. He graduated with honors from Altay State Technological
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University. Major: electric power supply. His second higher university degree was obtained in Altay State University. Major: finance and credit. He also completed the training under programs as follows: "State regulation of tariffs on electric and heat energy" (Further Vocational Education Institute for Continuing Education of Civil Service Employees) and "Company development management" (National Economy Academy with the Russian Federation Government).
His professional experience started in 1989 at Altay Engine Plant, in 1992–2000 he was employed at Production Association Sibenergomash, where he raised through the ranks from Electrician of the 3rd category to the Head of Marketing Department, Head of the Sales Department Office.
2000–2003: Head, Department of Energy Balances, Technologies and Investment Programs, Regional Electric Power Commission of Altay Region. 2003–2006: held different executive positions in OJSC Altayenergo and OJSC IDGC of Center and North Caucasus
In 2007 he was appointed as Deputy Director General for Development and Sale, OJSC IDGC of Siberia. From September 2008: Director for Development and Service Sale, OJSC IDGC Holding. From April 2010: Director for Strategy and Development, OJSC IDGC Holding.
Konstantin Yuryevich Petukhov was assigned to the position of OJSC IDGC of Siberia Director General from 09.09.2011 by resolution of OJSC IDGC of Siberia Board of Directors of 08.09.2011. This member does not own Company ordinary shares. In 2013 Director General made no transactions with Company shares. Director General remuneration was paid in compliance with the labor agreement and Provisions for financial stimulation of OJSC IDGC of Siberia Director General, approved by resolution of OJSC IDGC of Siberia Board of Directors of 17.07.2007.
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Control bodies. Revision Committee. For the purpose of control over Company financial administrative activity Company General Meeting of Shareholders elects Revision Committee for the term till next annual General Meeting of Shareholders. Quantitative composition of the Company Revision Committee is five (5) persons in accordance with the Company Charter.
Revision Committee shall analyze and verify financial and business activity of the Company and control use of the fixed and other assets in compliance with current legislation of the Russian Federation.
Table 9. Staff of the Revision Committee, elected by Annual General Meeting of the Company Shareholders on 24.06.2013
Full name Position held at the moment of election
Irina Aleksandrovna Philippova Chairman of Audit Committee, Leading Expert of Audit and Expertise Division, Department for Internal Audit and Risk Management, OJSC IDGC Holding Sayan Balzhinimayevich Tsyrendashiev Deputy Head of Directorate of Corporate Events, OJSC IDGC Holding
Sergey Yuryevich Knyazev Head of Economic Safety Department, OJSC FGC UES
Igor Yuryevich Bogachev Leading Expert of Audit and Expertise Division, Department for Internal Audit and Risk Management, OJSC IDGC Holding Elena Aleksandrovna Klisakova Leaing auditor of OJSC Eniseyskaya TGC (TGC- 13)
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Table 10. Staff of the Revision Committee, elected by Annual General Meeting of the Company Shareholders that was valid until 24.06.2013
Izumrud Aligadzhievna Alimuradovna Chairman of Audit Committee, Director for Internal Audit and Risk Management (Head of Department for Internal Audit and Risk Management), OJSC IDGC Hold- ing
Vladimir Nikolayevich Arkhipov Head of Security Department , OJSC IDGC Holding
Igor Yuryevich Bogachev Leading Expert of Department for Internal Audit, Revisory Inspections and Con- trol, Department of Internal Audit and Risk Management, OJSC IDGC Holding
Elena Aleksandrovna Klisakova Leading Auditor of OJSC Eniseyskaya Territorial Generating Company (TGC -13)
Irina Aleksandrovna Philippova Leading Expert of Audit and Expertise Division, Department for Internal Audit and Risk Management, OJSC IDGC Holding
Fees and compensations are paid to members of Revision Committee in accordance with Provisions for Fees and Compensations Payment to Members of Revision Committee of OJSC IDGC of Siberia approved by General Meeting of Shareholders (Provision for Fees and Compensations Payment to Members of Revision Committee of OJSC IDGC of Siberia can be seen on IDGC of Siberia corporate web-site in the Internet at the address: http://www.mrsk-sib.ru/shareholders/corporategovernance/Pages/internaldocuments.aspx.
Total amount of annual fees and compensations, paid to the members of Revision Committee in 2013 amounted RUR1,531,862.50,
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Individual Income Tax included. In 2013 Members of Revision Committee made no transactions with Company shares. Company has no information related to filing claims to members of the Company Revision Committee in 2013.
3.2 Share Capital
Table 11. Company Share Capital
Indicator 31.12.2012 31.12.2013
Type of shares ordinary shares ordinary shares
State registration number of issue (additional issue) 1-01-12044‑F 1-01-12044‑F
Number of ordinary shares issued, ea 94,815,163,249 94,815,163,249
Size of the Authorized Capital, rub 9,481,516,324.9 9,481,516,324.9
Nominal value per share, rub 0.10 0.10
Number of authorized shares, ea 1,157,512,902 1,157,512,902
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Table 12. Information on the persons registered (regardless information on clients of nominal holders), as of 31.12.2013
Number of Share in authorized Type of nominee shareholder Number of shares, ea shareholders capital (%)
Shareholders - natural persons: 24,896 2,304,775,934 2.431
including non-residents of the RF 47 14,132,881 0.015
including residents of the RF 24,849 2,290,643,053 2.416
Shareholders - legal entities: 160 268,764,791 0.283
including non-residents of the RF 13 53,330,437 0.056
including residents of the RF 147 215,434,354 0.227
Nominee shareholders: 12 92,241,622,524 97.286
Trustees: 6 0 0.000
Issuer’ account: 1 0 0.000
TOTAL: 25,075 94,815,163,249 100.000
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Table 13. List of the registered persons at whose accounts are recorded of more than 5% of the Company shares
Share in authorized capital (%) as of: Shareholder's name 31.12.2012 31.12.2013
Limited Liability Company 63.3360 63.3360 Depositarnyie Korporativnyie Tekhnologii (nominee holder)
Non-banking credit company 33,2996 33,924 closed joint stock company National calculating depository (nominee holder)
TOTAL: 96.6356 97.26
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Fig. 3 Structure of Company stock capital as of the most recent compilation date of the list of persons entitled to participate in General Shareholders Meeting (17.05.2013), % of the authorized capital
6,67% Others 7,75% OJSC MMC Norilsk Nickel 29,99% Donalink Limited 55,59% OJSC Russian Grids
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Table 14. Information on share of the Company authorized capital owned by state, constituent entities of the Russian Federation, municipal bodies
Share in authorized Shareholder's name Number of shares, ea capital (%)
Russian Federation represented by Federal Agency for 52,611,656 0.055489 State Property Management (federal ownership)
Altai Territory represented by Main Directorate for Property 3,154 0.000003 Relations in Altay Region (ownership of constituent entities of the Russian Federation)
Municipal Unit, Urban District, Omsk, Omsk Region 221,344 0.000233 represented by Property Relations Department of Omsk City Administration (municipal ownership)
TOTAL: 52,836,154 0.055725
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 68 03 Corporate management
3.3 Information on Company securities market
As of 31.12.2013 Company shares were listed at CJSC MICEX Stock Exchange.
Stock Exchange Name of section, list Ticker Postal address E-mail address name
MICEX Stock market section, MRKS 13, Bolshoy Kislovskiy www.micex.ru list Б Pereulok, Moscow
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 69 03 Corporate management
Fig. 4 Comparative dynamics of IDGC of Siberia share weighted average price fluctuations at MICEX Stock Exchange within the period from 08.01.2013 to 30.12.2013
а
0,095
0,075
0,055
08.01 08.02 08.03 08.04 08.05 08.06 08.07 08.08 08.09 08.10 08.11 08.12.2013
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 70 03 Corporate management
Fig. 5 Comparative dynamics of IDGC of Siberia share weighted average price fluctuations at MICEX Stock Exchange within the period from 08.01.2013 till 30.12.2013 (data provided by MICEX Stock Exchange)
IDGC of Siberia МICEX PWR
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 71 03 Corporate management
Within the period from January 8 till December 30, 2013 IDGC of Siberia share weighted average price decreased by 19% (from 0.08676 rub. to 0.06993 rub.). Company capitalization as of 08.01.2013 amounted to RUR6,630,424,366.
For the period from January 08, till December 30, 2013 IDGC of Siberia share weighted average price decreased by 19%, value of field indicator of MICEX Power Industry decreased by 41%.
Factors (news) that essentially effected fluctuation of IDGC of Siberia capitalization in 2012: — freeze of tariff indexation for 2014; — damping of demand for securities of electric energy field due to absence of investment ideas and uncertainty of further tariff policy in electric energy; — payment of dividends following the results of IDGC of Siberia work in 2012; — unsolved issue of last mile and shortfall in income, reduction of investment program due to to tariff freeze.
Table 15. Results of the Company securities trading in 2013
Market operator Volume Volume Number of Transaction price name (ea) (rub) transactions Min. price (rub.) Max. price (rub.)
MICEX 590,540,000 48,829,830.4 3908 0.06773 0.09903
За 2013 год денежный объем торгов по сравнению с показателями 2012 года умньшился в 2,6 раза.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 72 03 Corporate management
3.3 Dividend history
In accordance with Cl.7 of OJSC IDGC of Siberia Charter, Company is entitled to make a decision on (declare) dividends on the issued shares at the end of the Q1, six months and nine months of financial year and (or) at the end of financial year.
On 30.08.2010 (The Minutes no. 62/10) Board of Directors approved Provision for OJSC IDGC of Siberia Dividend Policy, in accordance with which Company dividend policy shall be based on the principles as follows: net profit remaining balance can be allocated to dividend payments, re-evaluation of the financial investments after net profit allocation to forming obligatory reserves, investment program, reimbursement of undistributed deficit of prior years from operating activity not included. Furthermore, Company approved mandatory conditions, simultaneous fulfillment of which is obligatory for making decision on dividend payments: presence of net profit with re-evaluation of financial investments not included, debt (at the end of the year) — EBITDA ratio shall be no more than three, fulfillment of the planned values of reliability and quality level.
Table 16. Dividend history
Dividend accrued Dividend paid, taxes Dividend amount per Period (thous rub) included (thous rub) 1 ordinary share (rub)
AGSM Annual General Meeting of OJSC IDGC of Siberia Shareholders, held on 29.05.2008, made a at 2007 decision not to pay dividend at 2007‑year-end. year-end
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 73 03 Corporate management
Dividend accrued Dividend paid, taxes Dividend amount per Period (thous rub) included (thous rub) 1 ordinary share (rub)
AGSM 142 273 140 188 0,001592 at 2008 year-end
AGSM Annual General Meeting of OJSC IDGC of Siberia Shareholders, held on 18.06.2010, made a at 2009 decision not to pay dividend at 2009‑year-end. year-end
AGSM Annual General Meeting of OJSC IDGC of Siberia Shareholders, held on 15.06.2011, made a at 2010 decision not to pay dividend at 2010‑year-end. year-end
AGSM Annual General Meeting of OJSC IDGC of Siberia Shareholders, held on 29.06.2011, made a at 2011 decision not to pay dividend at 2011‑year-end. year-end
AGSM 289 186 285 310 0,003050 at 2012 year-end
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 74 03 Corporate management
OJSC STATUS, Company Registrar, makes dividend payments to shareholders subsequent to the results of 2012.
Reasons for non-payment of full amount of dividends: — Data necessary for performance of payment was missing from questionnaires of registered persons entitled to receive dividends; — Return of dividends non-received by shareholders and sent by postal order.
Allocation of profit. OJSC IDGC of Siberia closed 2013 with the net profit in the amount of 1,129 mln rubles. Financial result is determined due to the data of the Company accounting report. Payment of dividends following the results of 2013 is not planned.
Table 17. Net profit allocation, mln.rub.
Name of indicator at 2011 year-end at 2012 year-end at 2013 year-end
Retained net profit 311 1 156 (1 129)
Reserve Fund 16 58 —
Dividend — 289 —
Production development 295 809 —
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 75 03 Corporate management
3.4 Company S&A
№ S&A name S&A location S&A primary activity Company S&A profit S&A financial share in S&A (thsd. rub.) results capital (%) (thsd. rub.)
1 Open Joint Stock 650021, Repair and — — — Company 17 Stantsionnaya str., reconstruction of Sibirsetremont** Kemerovo, Kemerovo transmission lines Region.
2 Open joint stock 660062, Krasnoyarsk, 7 Repair and 100% 736 233 9 706 company Vilskogo str. reconstruction of Sibirelektrosetservis equipment and transmission lines
3 Open Joint Stock Recreation camp Recreational service, 100% 45 059 -6 359 Company Sotssfera named after Strelnikov, including children Chernoluchye village, health recreation. Omskiy District, Omsk Region, 644518, Rus- sian Federation
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 76 03 Corporate management
№ S&A name S&A location S&A primary activity Company S&A profit S&A finan- share in (thsd. rub.) cial re- S&A capital sults (%) (thsd. rub.)
4 Open Joint Stock 4, Rabochaya St., Electric power 98,96% 827 233 731 Company Kyzyl city, Tyva generation and Tyvaenergo Republic, 667001, transmission Russian Federation
5 Open Joint Stock bld. 1, house 5, Energy audit 100% 34 384 1 457 Company Energy Ser- Vzlyetnaya St., vice Company of Siberia Krasnoyarsk, Krasnoyarsk Region, 660135, Russian Federation
* on 26.06.2012 Kemerovo Region Arbitration court under case no. А27–21406/2011 made a ruling on acknowledgement of OJSC Sibirsetremont as insolvent (bankrupt) and bankruptcy proceedings were started for the period of 6 months until December 26, 2012. In connection with authority of Director General and Board of Directors were terminated, Maksim Nikolayevich Chereshko was appointed as a receiver. On 29.12.2012 Kemerovo Region Arbitration court under case no. А27–21406/2011 made a ruling on prolongation of bankruptcy proceedings for the period of 4 months until April 26, 2013. On 29.04.2013 Kemerovo Region Arbitration court under case no. А27–21406/2011 made a ruling on prolongation of bankruptcy proceedings in regard to OJSC Sibirsetremont for the period of 6 months until October 26, 2013.
On 29.10.2013 Kemerovo Region Arbitration court under case no. А27–21406/2011 made a ruling on prolongation of bankruptcy proceedings in regard to OJSC Sibirsetremont for the period of 6 months until April 26, 2014.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 77 04 Production performance 04 Production performance
4.1 Transmitting power basics
OJSC IDGC of Siberia power supply system is a complex of overhead and underground power lines and transformer substations of different voltage type, united by common operating regime, having general power reserve and centralized operational dispatch management.
Transmitting power major characteristics. Total length of 0.4–110 kV OPL is more than 243 thousd.km. of 35–110 kV and 6–10–35/0.4 kV transformer substations is more than 50 thous pcs.
35–110 (220) transformer substation, Circuit length of power lines Name of the branch 10/0,4 substation
OPL, km OPL, km Number, ea OPL, km Altayenergo 54 027,3 219,3 11 213 6 441,1
Buryatenergo 24 241,6 72,1 4 734 2 583,9
Gorno-Altayskiye Power 6 967,7 1,1 1 397 554,5 Grids
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35–110 (220) transformer substation, Circuit length of power lines Name of the branch 10/0,4 substation
OPL, km OPL, km Number, ea OPL, km Krasnoyarskenergo 43 675,5 3 332,6 9 947 10 059,2
Kuzbassenergo — Regional 30 256,2 571,7 4 776 9 126,7 Electric Grids
Omskenergo 42 393,6 228,6 9 866 5 922,8
Khakassenergo 9 588,5 630,9 2 567 2 300,5
Chitaenergo 32 510,2 632,4 6 252 3 553,6
Total for IDGC of Siberia 243 660,6 5 688,7 50 752 40 542,3
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 80 04 Production performance
4.2 Electric power transmission
Table 19. Results of production performance for 2013
Output to consumers and Grid output, mln Loss Name of the branch adjacent territorial grid kWh companies, mln kWh mln kWh % Altayenergo 7 957,10 7 310,30 646,8 8,1
Buryatenergo 3 680,30 3 217,72 462,6 12,6
Gorno-Altayskiye Power Grids 546,3 455,2 91 16,7
Krasnoyarskenergo 18 145,80 16 139,80 2 006,00 11,1
Kuzbassenergo — Regional Electric Networks 20 851,40 19 995,60 855,7 4,1
Omskenergo 8 832,00 8 146,00 686 7,8
Khakassenergo 11 4 41,60 11 130,60 311 2,7
Chitaenergo 3 778,10 3 093,10 685 18,1
Total for IDGC of Siberia 75 232,40 69 488,30 5 744,10 7,6
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 81 04 Production performance
Table 20. Dynamics of electric power net generation in 2012–2013
Volume of net generation, mln kWh
Name of the branch 2012 2013 Change
mln kWh mln.rub. mln kWh mln.rub. mln kWh mln.rub. % Altayenergo -66 333 -1%
Buryatenergo 3 069 2 915 3 166 3 691 97 776 3%
Gorno-Altayskiye Power 418 778 417 833 -1 55 0% Grids Krasnoyarskenergo 23 197 7 747 15 499 9 564 -7 698 1 817 -33%
Kuzbassenergo — Regional 22 341 17 831 19 159 15 769 -3 182 -2 062 -14% Electric Networks Omskenergo 7 708 5 895 7 591 5 843 -117 -52 -2%
Khakassenergo 11 800 4 151 11 039 4 434 -761 283 -6%
Chitaenergo 2 926 3 562 2 964 3 880 38 318 1%
Total for IDGC of Siberia 78 773 48 306 67 083 49 773 -11 690 1 468 -15%
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 82 04 Production performance
As a result of OJSC IDGC of Siberia performance in 2013, volume of electric power net generation amounted to 67,083 mln kWh, that is 15% lower than results of 2012 (78 773 mln kWh). Therewith, following the results of 2013 profit for electric power transmission services increased by 3%, in comparison with 2012, and amounted 49 773 mnl.rub.
The following branched significantly influences decrease of volume of electric power transmission services: — Krasnoyarskenergo — due to exclusion of delivery points for last mile facilities and also due to change of taiff-agreement model; — Kuzbassenergo- REG– due to exclusion of delivery points for last mile facilities, exclusion of cuonsumption for OJSC Kuznetskiye ferrous alloys, construction of own 110 kV facilities and direct connection to facilities of OJSC FGC UES and also decrease of consumption for coal industry facilities due to adverse market conjuncture; — Khakasenergo — due to decrease of OJSC RUSAL Sayanogorsk production.
Table 21. Actual electric power loss in 2012–2013
Electric energy loss
Name of the branch Actual 2012 Actual 2013 Change mln % (in comparable mln mln % (in comparable % % % kWh conditions**) kWh kWh * conditions**) Altayenergo 763 9,4 9,4 646,8 8,1 -116,2 -1,2 -1,2
Buryatenergo 550 15 15 462,6 12,6 -87,4 -2,4 -2,4
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 83 04 Production performance
Electric energy loss
Name of the branch Actual 2012 Actual 2013 Change mln % (in comparable mln mln % (in comparable % % % kWh conditions**) kWh kWh * conditions**) Gorno-Altayskiye Power 101,1 18 18 91 16,7 -10,1 -1,4 -1,4 Grids Krasnoyarskenergo 2323,9 12,4 12,5 2006 11,1 -317,9 -1,3 -1,5
Kuzbassenergo — Regional 970,3 4 4,7 855,7 4,1 -114,6 0,1 -0,6 Electric Networks Omskenergo 748,1 8,3 8,5 686 7,8 -62,1 -0,5 -0,8
Khakassenergo 372,7 3 3,2 311 2,7 -61,7 -0,3 -0,5
Chitaenergo 734,1 19,4 19,4 685 18,1 -49,1 -1,3 -1,3
Total for IDGC of Siberia 6563,2 8,2 8,7 5744,1 7,6 -819,1 -0,5 -1,0
* Рассчитывается как разница между величиной 2013 года и величиной 2012 года ** Уровень потерь электрической энергии за 2012 год рассчитывается в условиях, сопоставимых с условиями 2013 года.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 84 04 Production performance
Actual loss of electric power in IDGC of Siberia grids amounted 5,744.1 kWh or 7. 6% of net release. In comparison with similar period of 2012 (in comparable conditions of 2013) with decrease of net release by 0.6%, decrease of electric power loss amounted 819.1mln. kWh or 0.64% in regard to electric power net release.
Transmission volume excluded from balance in 2013 due to conclusion of direct agreements with OJSC FGC UES: — Kuzbassenergo REG branch — exclusion of consumption of metallurgical plant RUSAL Novokuznetsk Aluminuim Plant due to adverse market conjuncture. Exclusion of consumption of OJSC Kuznetsky ferrous alloys (change of feed circuit of plants: Yurginsky ferrous alloy plant and Kuznetsky ferrous alloy plant. Construction of own 110 kV facilities allowed to connect plants directly to OJSC FGC UES). Exclusion of part of facilities in accordance with order of RF Ministry of Energy dated August 24, 2012, no.403 «On approval (refuse in approval) of transfer of electric grid facilities included into the Unified National Power Grid for lease to territorial grid organization, following the result of 2013.Total excluded volume amounted 3,581.2 kWh. — Krasnoyarskenergo branch — exclusion of last mile volume — 280 kWh; — Omskenergo branch — exclusion of last mile volume — 270.7 kWh; Khakasenergo branch — decrease of OJSC RUSAL — Sayanogorsk consumption — 723.8 kWh.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 85 04 Production performance
Fig. 6 Structure of electric energy release from company grids for 2013 by customer groups (Diagram is composed based on indicators of Distribution Control System),%
2% State (miunicipal) organizations 2% Agricultural industries 3% Transport 4% Non-commercial customers 7% Population 31% Commercial customers 51% Territorial Grid Organizations
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 86 04 Production performance
Events for decrease of electric energy loss. In terms of preferred direction IDGC of Siberia implements complex of events aimed at optimization (decrease) of electric energy loss.
Due to implementation of complex of events for optimization of loss in 2013 saving volume amounted 562.3 mln.kWh (1,238.1 kWh), saving volume due to organized events amounted 267.4 mln. kWh (510.8 mln.rub), saving volume due to technical events amounted 4.1 mln. kWh (5.2 mln. rub.), saving volume due to events for enhancement of electric energy registration system amounted 290.9 mln.kWh (722.1 mln.rub.).
In 2013 with planned modernization of 54 thousd. registration points and planned expenses of 486.2 mln. rub.more than 84 thousd. registration points were modernized, expenses amounted 509.04 mln.rub. Distant collection of data from more than 84 thousand registration points (with planned indicatior of 55 thousd. Registration points) were organized.
Decrease of loss amounted 592.4 mln. kWh from planned amount or 0.6% in regard to electric energy release.
4.3 Technological connection
One of Company primary business activities is technological connection of energy receptacles (power plants) of corporate persons and individuals and generation facilities to electric grids.
In 2013 Company concluded: — 33,655 agreements on technological connection with energy receptacles with total capacity of 1,162.7 mW, including
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 87 04 Production performance
2 agreements for technological connection of generation facilities with total capacity of 141 mW. — 25,615 agreements on technological connection of energy receptacles with total capacity of 836.7 mW were performed. IIncluding electric installations of privileged applicants up to 16 kW amounted 23,837 pcs. and 253.1 mW, and 3 agreements on technological connection of generation facilities, namely, turbine set no.15 of Novo-Kemerovskaya Central Heating and Power Plant with capacity of 120 mW, PGU‑90 with capacity of 85.2 mW and turbine set no.12 after reconstruction with capacity of 10 mW of Omsk Central Heating and Power Plant‑3.
Performed agreements on technological connection of major industrial facilities: — industrial building of main step-down substation no.3 17 mW (Federal State Institution Biysky Oleum Factory); — 0.9 mW metal tolling chop (LLC Production and Commercial Plant Sibmetal-Omsk); — 10 mW ore-dressing complex Aleksandrovsky (CJSC Aleksandrovky mine); — 6.3 mW mining and processing plant on the base of Verkhne-Aliinsky gold ore field minefield (CJSC Gold ore company Omchak); — mokhovsky coal strip mine 5 mW (LLC Management Company Kuzbassrazrezugol); — grain processing and storage complex 0.34 mW (LLC KEAgro); — smini-plant for processing of milk 0.3 mW (LLC Agricultural Production Union Niva); — Hothouse Plant 2 mW (LLC Agricultural Production Union Niva Hothouse Plant
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 88 04 Production performance
Таблица 22. Основные показатели деятельности по технологическому присоединению в 2013 году*
Number of submitted ap- Agreements closed (actual con- Agreements made Name of the connection plications for TC nection made) category ea kW ea kW ea kW up to 15 kW, total 38 369 436 102 31 169 355 552 23 837 253 077
including natural persons 31 705 377 610 26 373 311 330 19 627 213 701
from 15 to 150 kW 2 956 183 557 1 856 109 555 1 381 81 832
from 150 to 670 kW 1 123 379 587 525 176 871 334 109 564
more than 670 kW 438 1 662 001 103 379 727 60 177 043
Total for IDGC of Siberia 42 886 2 661 247 33 653 1 021 705 25 612 621 516
* — power generation facilities excluded
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 89 04 Production performance
Amount of applications in 2013 reduced within 1% in comparison with 2012. Therewith, total amount of maximal capacity of submitted applications exceeded such indicator of 2012 for 14% or at 362 953 kW.
Number of applications grew on service territory of Altayenergo and Khakasenergo branches, including: — for Altayenergo branch by 20% for number for submitted applications and by 31% for total capacity, number of applications increased for allcategories of connection; — for Altayenergo branch by 21% for number for submitted applications and by 95% for total capacity. Significant growth of applications submitted to Khakasenergo branch is mentioned in category of privileged customers up to 15 kW (27% for number and 31% for total capacity).
Number of agreements concluded in 2013 reduced by 9% or for 3455 pcs., total capacity of conluded agreements decreased in comparison with 2012 for 18% or at 262 mW. Decrease can be seen at all categories of connections. Therewith, significant growth of concluded agreements can be seen in the following branches, namely, Altayenergo for 16% for number of agreements and by 34% for total capacity of all connection categories, in Khakasenergo for 25% for number of agreements and by 22% — for total capacity. In regard to Khakasenergo branch growth is mentioned mostly in the category of privileged connections up to 15 kW.
Number of performed agreements (connection to electric grids is performed) is for 17% or at 3661 pcs. more than in 2012. Total capacity of connected energy installations exceeded such indicator of 2012 for 42% or at 249 mW. Increase in number of connections or preservation of level achieved in 2012 is mentioned for all branches excepts for Gorno-Altayskiye Electric Grid branch where number of performed agreements decreased for 33% or at 559 pcs., total capacity of performed agreeemnts is decreased for 35% or at 8.7 mW.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 90 04 Production performance
Table 23. Dynamics of technological connections indicators in 2013 in comparison with 2012 in accordance with branches*
Increse/decrese
Number of submitted Agreements closed (actual Name Agreements made of the connec- applications for TC connection made) tion category ea kW ea kW ea kW % +/- % +/- % +/- % +/- % +/- % +/- до 15 кВт, всего -1 -531 1 4 354 -9 -3 016 -6 -23 390 16 3 283 22 46 335
в т. ч. физ.лица 1 195 3 12 061 -6 -1 768 -4 -14 108 23 3 615 29 47 920
от 15 до 670 кВт -1 -60 1 7 011 -14 -379 -17 -60 001 27 365 21 32 830
более 670 кВт 16 59 19 266 589 -34 -54 -19 -88 744 28 13 -11 -22 815
МРСК Сибири -1 -532 12 277 953 -9 -3 449 -14 -172 135 17 3 659 10 56 350
* — power generation facilities excluded
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 91 04 Production performance
Table 24. Dynamics of technological connections indicators in 2013 in comparison with 2012 in accordance with branches *
Increse/decrese Number of submitted Number of submitted Number of submitted appli- Name of branch applications for TC applications for TC cations for TC ea ea ea ea ea ea % +/- % +/- % +/- % +/- % +/- % +/- Altayenergo 20 879 133 207 193 16 610 44 41 959 30 812 47 24 942 Gorno-Altayskiye Power 3 52 5 2 529 -10 -162 -26 -8 758 -33 -559 -35 -8 714 Grids Buryatenergo 3 135 -48 -114 135 12 368 -3 -1 856 28 516 7 3 310 Krasnoyarskenergo -10 -1 512 4 34 473 -30 -3 496 -21 -74 663 45 2 077 62 67 696 Kuzbassenergo – -13 -532 0 1 986 -20 -698 -48 -142 848 -10 -248 -43 -73 987 Regional Electric Networks Omskenergo -2 -153 32 87 950 -12 -762 -13 -17 375 41 1 507 75 39 434 Khakassenergo 21 746 5 7 865 25 786 34 31 915 -8 -128 8 2 056 Chitaenergo -4 -147 32 50 093 -3 -95 0 -510 -10 -318 2 1 614 IDGC of Siberia -1 -532 12 277 953 -9 -3 449 -14 -172 135 17 3 659 10 56 350
* — power generation facilities excluded
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 92 04 Production performance
4.4 Arrangement and principles of cooperation with customers
Interaction with the consumers is maintained through the principles as follows.
Sufficient awareness of consumers about company and service. Complete and reliable information about all procedures for interaction with Company is public and subject to submission to consumers in available form. Territorial accessibility and comfortable conditions of face-to-face service. Location of face-to-face service infrastructure ensures coverage of the grid company responsibility zone and service availability for consumers. Company face-to-face service is provided in compliance with unified requirements to quality of the service rendered within the whole territory of the Company responsibility and is very convenient for all categories of consumers.
Availability and promptness of appropriate service. Channels of correspondent communication with consumers ensure twenty- four-hour access to relevant service and Company prompt response to the requirements of consumers. Interactive service is provided with convenient and high-speed access; interface and workbench of interactive service are ergonomic and consumer- friendly.
Skilled performance of service. Organization of all kinds of service ensures high level of skills and competence of the Company staff.
Transparency of business-processes related to consumer service. Business-processes related to consumer service are formalized, described and transparent to ensure accountability and manageability of the procedures related to interaction with consumers.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 93 04 Production performance
Objectivity of consumers' complaints investigation. Company ensures unbiased and impartial handling of complaints within the prescribed terms.
Company arranges cooperation with consumers as follows: — at the level of IDGC executive body; — at the level of branches' executive bodies; — at production divisions (production division, production division Energosbyt) and in electric grids zones (REG).
General management of services is performed by Deputy Director General of IDGC of Siberia for development and service rendering.
Company policy related to interaction with its consumers is dedicated to providing customer-oriented approach.
Main target of customer-oriented approach is creating consumers' loyalty to the Company through high-quality service and full satisfaction of their needs for service.
Customer service is held in-presence and in absentia.
In-presence service is provided in rendered in Service Centers and Applications Receipt Centers in production divisions and in electric grids zones. In 2013 OJSC IDGC of Siberia branches, Buryatenergo and Omskenergo, on the basis of Rf Ministry of Energy orders (dated 25.04.2013 no.211 and dated 24.01.2013 no. 24) transferred functions of last resort provider on the territory of Republic of Buryatia and Omsk Region, respectively. In 2013 territory of responsibility of Buryatenergo and Omskenergo
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 94 04 Production performance branches was served by specialists of productional division Energosbyt.
In absentia service is held through uniform call-centre (8–800–1000–380), interactive servicea and mail.
Company call-centre is a centralized reference service of Company customers’ support. Call from the RF territory is free for customers. Operators reveive phone calls in 24‑hour regime. When all operators are busy customer can leave a voice mail that later will be processed by operator.
Due to performance of last resort provide’s functions in Buryatenergo and Omskenergo branches hot lines were organizaed in addition to call centre for issues related to energy sale activity.
Interactive service is implemented through Company website (www.mrsk-sib.ru), branches’ websites and controlled company.
In 2013 more than 400 thousd. customer applications were processed which is 180% more previous year figure. Therewith, number of complaints reduced by 1.4%, number of consultations and informational messages increased three times and thirty times respectively.
Indicators of quality of provided services determined by regulating authorities for 2013 are achieved by all branches and company controlled by IDGC of Siberia.
In regard to client interaction in 2013 the following results were achieved: 1. Consumer councils were organized in all branches and S&A, procedure of Consumer councils functioning was developed and approved. In 2013 all Councils held meeting and determined list of topical issues for further consideration;
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 95 04 Production performance
2. the following interactive services are implemented at the Company website: — «Personal account» is a chance to submit an application for technological connection and monitor performance of works under application. For applications for technological connection of energy receptacles with capacity up to 150 kW inclusively agreements are prepared on the basis of documents submitted to Personal account without actual visit of a customer of company subdivisions; — «On-line consultation» is a chance to get information on electricity supply in on-line regime; — «Ask specialist» «Submit a complaint/opinion to the branch» — services allow to get quick answer to a question that does not require consideration of Company Management (unlike the previous version of the website that provided an opportunity to submit application only to Company Director General.; — information on planned outage of electric power — publication of information onplanned outage in Company grids is provided;
3. 3 call centres for service of 2nd category clients are opened: — Gusinoozersk (Buryatenergo branch.; — Urban-type settlement Inskoy (Kuzbassenergo REG branch.; — Kalachinsk (Omskenergo branch..
4. specialists who directly work with customers received training in order to develop effective communication skills: — customer autoinforming service on progress in work for applications for technological connection is implemented via sms and e‑mails that are sent to applicant; — customer autoinforming service on outages is implemented via sms;
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— books of complaints and offers where all customers can write their opinions on Company activity were placed in all Client Service Centres; — pollings were held in order to determine level of customer satisfaction with the quality of provided services, corrective actions were made following the results of such polls.
The following events are planned to be implemented in 2014: — adjustment of Company standard «Customer Service System» on the basis of Unified Standards for Grid Organization Service (planned to be approved by Russian Ministry of Energy.; — development of event plan for bringing customer service system into compliance with Unified Standards for Grid Organization Service; — implementation of «personal account» function for commercial registration; — holding of polls for determination of level of customer satisfaction with the quality of provided services; — holding of trainings for employees that interact with customers; — holding of field audit of service organization in branches and S&A.
4.5 Power Saving and Energy Efficiency Upgrade
Work for power saving and energy efficiency upgrade in IDGC of Siberia in 2013 was organized in accordance with IDGC of Siberia Power Saving and Energy Efficiency Improvement Program for the period from 2013–2018, approved by IGDC of Siberia Board of Directors resolution dated 14.02.2013 no.113/13.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 97 04 Production performance
Target values of Power Saving and Energy Efficiency Improvement Program: — Energy loss during transfer and distribution in electric grids; — power consumption for economic needs; — fitting with modern energy accounting meters at retail electricity market in accordance with Power Saving and Energy Efficiency Improvement Program. Numerical value of the Program are determined for 2013–2018.
Table 25. Planned and actual effect in natural and monetary values for 2013
2013 Name of an indicator Measurement unit Plan Fact Electric loss, included: mln.kWh 6 860,80 5 74 4,11
% to net release 9,05 7,64
expenses for own needs of substations mln.kWh 131,98 115,4 4
Resources ofor household needs, including for mln.rub 845,61 809,98 types of resources
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 98 04 Production performance
2013 Name of an indicator Measurement unit Plan Fact fuel and energy, including: thousd. tonns of fuel 100,998 88,84 oil equivalent
mln.rub 839,75 805,46
tonns of fuel oil 0,19 0,17 equivalent for 2 m2 of premise floor electric energy mln.kWh 197,64 176,188
mln.rub 407,76 351,11 heat energy Gcal 62 043,94 53 713,55
mln.rub 59,82 51,55 gas thousd.m3 99,8 83,15
mln.rub 0,48 0,28
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 99 04 Production performance
2013 Name of an indicator Measurement unit Plan Fact other (diesel fuel, kerosene, gasoline and other) thousd. tonns of fuel 23,57 20,07 oil equivalent
mln.rub 371,69 402,52 hot water supply thousd.m3 40,19 34,39
Gcal 0 0
mln.rub 1 1,06 cold water supply thousd.m3 226,64 187,21
mln.rub 4,86 3,45
Equipping with modern electric energy accounting % 87,76 88,03 meters at the wholesale market
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 100 04 Production performance
Program consists from chapters, target subprograms (events) and correspondent events that are divided, in its turn, to events for decrease of electric energy loss during transfer and distribution in electric grids and events for decrease of energy resources expenses at facilities of production and administrative needs and that are divided on organizational and technical events.
Target events are events which, when implemented, provide reduction of energy resources (including electric energy) and (or) water for, at least, 15% from annual consumption of correspondent resource with pay-off period of 80 percent of invested means for the last 5 years for consumption of energy resources and (or) water for production and administrative needs and pay-off period of not more than 10 years for events that ensure decrease of loss during transfer and distribution of electric grids.
Correspondent events for optimization of expense for production and administrative needs and events for decrease of electric energy loss are events that have positive energy efficiency and that do not comply with conditions to be recognized as target.
Therewith, all events (disconnection of transformer in the modes of small loads at the substation with two or more transformers, disconnection of transformers at substations with seasonal load, aligning of load phases in the 0.38 kV distribution grids, holding of control readings from the accounting meters, detection of irregularities in the accounting system, execution of orders to disconnect/connect, conducting audits of accounting complexes, identifying the facts of non-contractual electricity consumption) are performed annually, aimed at support of existing level of energy loss and do not influence company electric energy balance indicators.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 101 04 Production performance
Table 26. Planned and actual effect in physical and monetary terms in 2013
Measurement Name of event Planned effect Achieved effect units Total for program mln.kWh 148,39 562,31
mln.rub 344,61 1251,76 without VAT
Target values/events mln.kWh 92,12 267,37
mln.rub 202,12 524,48 without VAT
Target values for decrease of electric energy loss mln.kWh 92,12 267,37
mln.rub 197,17 510,84 without VAT
Target values for decrease of electric resources thousd.tonns of fuel 0,784 2,401 output flow at facilities of production and adminis- oil equivalent trative needs mln.rub 4,94 13,64 without VAT
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 102 04 Production performance
Measurement Name of event Planned effect Achieved effect units Non-target programs/events mln.kWh 56,27 294,94
mln.rub 142,5 727,28 without VAT
Program of registration system development mln.kWh 44,14 290,85
mln.rub 125,52 722,1 without VAT
Program on technological re-equipment and mln.kWh 12,14 4,09 reconstruction mln.rub 16,97 5,17 without VAT
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 103 04 Production performance
Effect from supporting events amounted 33.4 mln. kWh for total amount of 56.9 mln.rub.
Expenses for implementation of events amounted 1,756.9 mln.rub without VAT. Financial sources of Power Saving Program are as follows: investment program in the amount of 1,622.2 mln.rub, repair program in the amount of 134.7 mln.rub).
Following the results of 2013 effect from implementation of target events for decrease of electric energy loss in Company amounted 267.4 mln. kWh for total amount of 524.5 mln.rub
Following the results of 2013 effect from implementation of target events for decrease of expense of resources for administrative needs in Company amounted 2.402 thousd. tonns of fuel oil equivalent for amount of 13.6 mln.rub with planned indicator of 0.784 thousd. tonns of fuel oil equivalent for amount of 4.9 mln.rub. Planned indicators have been achieved.
по Обществу составил 267,4 млн. кВтч на общую сумму 524,5 млн руб.
П о результатам 2 0 13 г о д а э ф ф е к т от реализации ц е л е в ы х мероприятий по снижению р а с х о д а р е с у р с о в на хозяйственные нужды в целом по Обществу составил 2,402 тыс. т. у. т. на сумму 13,6 млн руб. при плане 0,784 тыс. т. у. т. на сумму 4,9 млн руб. Плановые показатели достигнуты.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 104 05 Repair and Maintenance Activity 05 Repair and Maintenance Activity
5.1 Repair and Maintenance Activity
OJSC IDGC of Siberia repair program for 2013 is planned in the amount of 2,225 mln.rub, absorption is equal to 2,620 mln. rub, including contracting method in the amount of 761 mln. rub (29%), and in-house method amounting to 1,858 mln.rub (71%).
The following main types of works have been performed: — Overhead power transmission line 35–220kV: replacement of supports — 1,206 pcs., replacement of wires — 173 km, replacement of insulators — 42,517 pcs., glades clearing –5,103 ha, the expenses amounted to 359 mln.rub; — Overhead power transmission line 0,4–20kV: replacement of supports — 38,218 pcs., replacement of wires — 1,083 km, replacement of insulators — 40 016 pcs., glades clearing — 3,970 ha, the expenses amounted to 1,126 mln.rub; — Repair of the equipment of substations 35–220kV: transformers 35–220 kV — 895 pcs., switches 35–220 kV — 1,589 pcs., breaker switches 35–220 kV — 3,839 pcs., switches 6–10 kV — 5,021 pcs., costs — 391 mln.rub; — Repair of cable lines 0.4–220 kV — 60 km, costs — 99 mln.rub; — Repair of transforming substations 6–10/0.4kV in the amount of 7,395 pcs., costs — 210,660 thsousd. rub.; — Repair of buildings and constructions, costs — 253 mln.rub; — Repairs of other objects (repair of leased lines, relay protection and emergency controls, motor transport and special machines, etc.), costs — 182 mln.rub
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 106 05 Repair and Maintenance Activity
Table 27. Cost assignment to branches
Annual plan of repair Fact of execution, thous Name of the branch % of execution work, thous rub rub Altayenergo 269 337 345 450 128%
Buryatenergo 301 568 309 656 103%
Gorno Altayskiye Electric Grids 37 296 49 355 132%
Krasnoyarskenergo 445 817 617 154 138%
Kuzbassenergo – Regional Electric 626 287 631 364 101% Grids Omskenergo 231 490 264 982 114%
Khakasenergo 123 141 140 278 114%
Chitaenergo 189 636 261 379 138%
Total for OJSC IDGC of Siberia 2 224 572 2 619 618 118%
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 107 05 Repair and Maintenance Activity
Fig. 7 Generalized structure of the Company repair programs for 2012-2013.
2012 2013
7% Other 7% Other
9% Transforming substations 10-0,4kV 8% Transforming substations 10-0,4kV
12% Buildings and Constructions 10% Buildings and Constructions
16% Substations 35-110kV 15% Substations 35-110kV
56% Power transmission lines 0,4-110kV 60% Power transmission lines 0,4-110kV
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 108 05 Repair and Maintenance Activity
Considering that consumers are mainly connected to OJSC IDGC of Siberia grids at 0.4–10 kV, the Company, when forming its repair programs, gives preference to works executed at distribution grid facilities, to ensure reliable electric power supply of consumers.
Moreover, repair programs, which are target programs, include work on carrying technical condition of substations (unitized transformer substations) to the standard requirements, bringing 10–110kV OPL glades to the standard value, replacement of 110 kV insulation, replacement and renewal of 35–110 kV overhangs, replacement of wires and ground wires with exhausted normative period of use.
5.2 Technical Policy of the Company
In 2013 OJSC IDGC of Siberia activity in the field of technical policy is realized according to the requirements of the Provision on Standard Technical Policy of OJSC IDGC Holding in Distributive Electrical Grid Complex.
From 2014 JSC Russian Grids Provision on Technical Policy in Grid Complex will be enacted together with update of Company standard “Unified requirements to equipment. Provision”.
The purpose of IDGC of Siberia technical policy is determination of main technical directions that ensure upgrade of reliability and efficiency of short-term and mid-term grid complex functioning under condition of proper industrial and environmental safety on the basis of invovative development principles that ensure non-discriminatory access to electric grids for all participants of the market.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 109 05 Repair and Maintenance Activity
Main tasks of the Unified Technical Policy are as follows: 1. Upgrade of eletric grid preparedness to transmission and distribution of electric energy for provision of customers with reliable electric energy supply.
2. Creating conditions for connection of wholesale and retail market participants to electric grid on the basis of non-discriminatory access to electric grids under condition of technical capability and participant’s compliance with determined access rules.
3. Efficiency upgrade and development of facility diagnostic system and use of its results in operation algorithms for automatic systems of regime and emergency control.
4. Drop in investment and operating costs in facilities due to optimization of technical solutions during development of design documentation, application of modern types of equipment, building constructions, reduction of area occupied by electric grid facilities.
5. Upgrade of energy efficiency of applied technologies, equipment, materials, systems, development of energy saving program and decrease on technologic loss of electric energy in electric grids.
6. Cope with aging tendency in regard to main funds of electric grid and electric grid equipment by their modernization, optimization of works for their reconstruction and technical re-equipment and due to application of equipment with increased operational lifetime.
7. Automatization of substations, introduction and development of modern control systems of technical conitions, automatic diagnostics and monitoring of technological equipment.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 110 05 Repair and Maintenance Activity
8. Enhancement of operation technologies, technical maintenenace and repair. Provision of professional training of operational and repair peronnel taking into account new technologies and innovative equipment.
5.3 Innovative Technologies
In 2011 OJSC IDGC of Siberia Board of Directors worked out and approved Innovative Development Program of the Company for 2011–2016.
The purpose of the Program: — form an effective business mechanism for realization in IDGC of Siberia of an innovative cycle creating favorable conditions for producing and promoting of high-technology equipment and high technologies for the Company on perpetual rollover basis; — form strategic competitive advantages of the Company through introduction of innovative decisions, methods, competences and technologies in the Company’s business processes; — provide Company’s structural divisions with high-performance native technologies and equipment, scientific and technical and innovative decisions in the amounts necessary for avoiding of “tight spots” and negative factors influencing the key values of IDGC of Siberia.
The main activities of the Program: — Research and Advanced Development planning; — Transfer of innovations;
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 111 05 Repair and Maintenance Activity
— Human Resourcing; — Collaboration with institutions of high education and scientific organizations; — Collaboration with innovative companies of small and medium business.
Scientific and technical activity of IDGC of Siberia is implemented in the following fields: — upgrade of reliability and safety of customer electricity supply; — optimization of management system, efficiency upgrade of financial and economic, operational and repair activity (development of perspective solutions and events on development of grid facility service system); — upgrade of environmental, production and informational, anti-terrorist safety, labor protection; — generation of software and databases for computers.
Table 28. Cumulative costs for implementation of innovation development program
Year Actual financing, mln.rub 2011 926,8
2012 813,9
2013 657,3
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 112 05 Repair and Maintenance Activity
List of equipment, technologies, meterials and systems developed in terms of implementation of Research and Deelopment Program in IDGC of Siberia. In 2013: 1. Corporate Information System of Equipment Technical Maintenance and Repair System was revised.
Information support of the following tasks in terms of main Company activity was provided: — introduction of organization structure of Maintenance Service; — maintenance of network topology; — registration of technical facilities; — equipment record; — registration of actual equipment repairs and service; — registration of equipment condition; — registration of technology violations; — investigation of technology violations.
2. Functional of Corporate Information System of Equipment Technical Maintenance and Repair System was developed and optimized.
List of facilities where results of Research and Development Program are planned to be implemented or have already been implemented, list of field where results of Research and Development Program are applied. Field of application of Research and Development Program results: IDGC of Siberia, structural subdivisions of IDGC of Siberia.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 113 05 Repair and Maintenance Activity
As of 01.01.2013 Corporate Information System of Equipment Technical Maintenance and Repair System was introduced to Executive Body of IDGC of Siberia and branches of OJSC IDGC of Siberia, namely, Altayenergo, Gorno-Altayskiye Electrcic Grids, Buryatenergo, Krasnoyarskenergo, Kuzbassenergo REG, Omskenergo, Khakasenergo and Chitaenergo.
List of patents/cartificates for results of Research and Development Program obtained in report period. Following the results of Research and Development Program in 2013 Russian Patent Bureau registered 2 intellectual property objects, and 3 intellectual property objects are planned to be registered in 2014.
Enhancement of Information Support System of Producation and Business Processes Management. Introduction of effective Enterprise Asset Management System (EAM — Enterprise Asset Managemen) is one of Company paramount tasks because it exerts direct influence on operational efficiency of IDGC of Siberia and quality of provided services (reliability of energy supply of customers). Introduction of system is implemented through Corporate Information System of Equipment Technical Maintenance and Repair System on the base of SAP ERP.
In 2013 Russian Patent Bureau registered 20 intellectual property objects. Moreover, 5 applications were submitted to Russian Patent Bureau for registration of intellectual property rights on objects in 2014.
Development of Inventive and Rationalization activity. Presently, rationalization activity is regulated by Company standard “Rationalisation activity.Provision”
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 114 05 Repair and Maintenance Activity
Fig. 8 Dynamics of Rationalization Activity for the period of 2011–2013.
%
45 Total inventions studied, pcs. 40 42 40 41 35 Inventions acknowledged 30 as rationalization ones, pcs. 25 25 20 24 Implemented inventions, pcs. 21 15 20 14 10 12 5 0
2011 2012 2013 ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 115 05 Repair and Maintenance Activity
Interaction with Equipment Manufacturers IDGC of Siberia developed Provision on Presentation Day which is held within two-day meeting of Company Science and Technology Committee session.
The main topical directions of presentation days: — substations main equipment; — high voltage overhead lines; — diagnostics and testing of electrical equipment; — relay protection and relay ladder logic system.
Purpose of the Presentation Day is to provide conditions for effective exchange of information on progressive samples of electrical products, services provided and accompanying materials, to establish steady state contacts between consumers and manufacturers, to create a ground for exchange and integration of best experience.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 116 06 Investment activity 06 Investment activity
Investment program for 2013 was approved in RF constituent territories on the territory of IDGC of Siberia service.
Providing secure energy supply and creating conditions for implementation of social and housing programs, and development of the regions as a whole, were primary goals of investment program implementation in 2013. Under investment projects implementation the Company improves reliability of electric power equipment work, eliminates deficit and creates capacity reserve, that additionally leads to increase of electric power sales, cost saving for repair and maintenance, and decrease of energy under-supply at power disturbances.
6.1 Parameters of Investment Program
Table 29. IDGC of Siberia Performance of Investment Program for 2013
2013 Total installed FA input Financing Capacity input Capacity surplus Name of the cost* barnch mln.rub mln.rub, mln.rub without МВА km MVA km without VAT with VAT VAT Altyenergo 962 563 1130 48 235 20 114
Burtyatenergo 451 404 522 98 161 42 118
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 118 06 Investment activity
2013 Total installed FA input Financing Capacity input Capacity surplus Name of the cost* barnch mln.rub mln.rub, mln.rub without МВА km MVA km without VAT with VAT VAT Gorno-Altayskiye 211 208 245 29 77 13 39 Electric Grids
Krasnoyarskenergo 661 376 950 27 183 24 156
Kuzbassenergo-REG 934 634 1025 163 101 62 78
Omskenergo 922 797 1242 80 359 58 284
Khakasenergo 559 191 668 15 72 14 60
Chitaenergo 1798 640 2122 62 298 51 275
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 119 06 Investment activity
2013 Total installed FA input Financing Capacity input Capacity surplus Name of the cost* barnch mln.rub mln.rub, mln.rub without МВА km MVA km without VAT with VAT VAT Executive Office 69 11 77
TOTAL for IDGC of 6567 3824 7981 522 1486 284 1124 Siberia
Investment volume in 2013 is 31% more in comparison with 2012.
Growth of investments in 2012 is connected with realization of large projects: — provision of electricity supply of railroad substations of OJSC Russia Railways in south directions of “Yuzhny khod” railway; — provision of electricity supply of facilities of Noyon-Tologoisky lead and zinc minefield.
6.2 Direction and Structure of Capital Investment
Big share of technical re-equipment and reconstruction in IDGC of Siberia Investment Program is indicative of the need for capital renewals, decrease of depreciation and increase of power energy supply reliability for consumers.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 120 06 Investment activity
The largest projects on new construction that were put in commission or begun in the reporting period. Altaenergo branch: — Construction of substation 110/10kV Solnechnaya Polyana. The goals and tasks of the project: implementation is to improve power supply reliability for consumers in Leninskiy and Industrialniy Districts in Barnaul.
In 2013 of 207 mln.rub of capital investment were absorbed. Cost of unfinished construction as of 01.01.2014 amounted 273 mln. rub. Comissioning of facility is planned in 2014.
Chitaenergo branch: — Construction of 110 kV OPL Zabaykalsk — Central Heating and Power Plant Priargunskoye Production Mining and Chemical Division, “Yuzhny khod” project. The goals and tasks of the project: implement electric power supply of transport infrastructure on the south of the Zabaikalye Territory for provision of electric power supply of traction substations of Zabaikalye railway and to perform its obligations under the agreement with OJSC Russian Railways on technological connection.
In 2013 of 208 mln.rub of capital investment were absorbed. Cost of construction in progress as of 01.01.2014 amounted 198 mln.rub.
Khakasenergo branch: — Construction of two-chained 110 kV OPL Abakanskaya Central Heating and Power Plant — substation Kalininskaya.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 121 06 Investment activity
The goals and tasks of the project: increase of capacity release of re-introduced 4th generating unit of Abakan Central Heating and Power Plant.
In 2013 of 252 mln.rub of capital investment were absorbed. Cost of unfinished construction as of 01.01.2014 amounted 260 mln. rub. Comissioning of facility is planned in 2014.
The largest projects on reconstruction and technical re-equipment that were put into commission or begun in the reporting period.
Kuzbassenergo REG branch: — Reconstruction of Belovskaya substation 110/35/6kV (equipment replacement under 110/35/6kV). The goals and tasks of the project: improvement reliability of power supply of consumers and to reduce maintenance and repair costs.
Cost of unfinished construction in 01.01.2014 amounted 128 mln.rub. Comissioning of facility is planned in 2016.
Chitaenergo branch: — Reconstruction of Zabaikalsk substation 110/35/10kV with outdoor switchgear‑110kV widening and replacement of line transformers 16 MVA and 25 MVA by 2 x 40 MVA.
The goals and tasks of the project: implementation of electric power supply of transport infrastructure on the south of the Zabaikalye Territory for provision of electric power supply of traction substations of Zabaikalye railway and to perform its obligations under the agreement with OJSC Russian Railways on technological connection.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 122 06 Investment activity
Absorption of capital investment amounted 284 mln.rub.
Cost of unfinished construction as of 01.01.2014 amounted 294 mln.rub. Comissioning of facility is planned in 2014.
For the period of 2014–2018 rate of growth of IDGC of Siberia capital investments assimilation will not exceed the growth rate of transmission service tariff defined by RF Ministry of Economic Development and Trade.
Table 31. Structure of IDGC of Siberia capital investment for 2011–2018, mln.rub without VAT
Name of ODGC branch 2011 2012 2013 2014 2015 2016 2017 2018 Name of ODGC branch 7090 4995 6567 5859 6215 5866 6162 5786 Total for IDGC of Siberia 3257 2418 4121 4143 4183 4570 5128 4468 Retooling and modernization 3590 1650 2175 1659 1996 1245 953 1142 New construction 465 532 738 935 1759 1035 854 577 Large projects, includ. 92 46 285 460 415 315 342 275 Retooling and modernization 373 486 453 476 1344 719 512 302 New construction 1439 272 0 0 0 0 0 Programs of crucial importance 0 0 0 0 0 (federal, etc.)
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 123 06 Investment activity
Name of ODGC branch 2011 2012 2013 2014 2015 2016 2017 2018 Retooling and modernization 1439 272 0 0 0 0 0
New construction 5186 4192 5829 4925 4457 4831 5308 5208
Large projects, includ. 793 673 776 1150 1283 1842 2384 1782
Retooling and modernization 471 58 98 158 235 220 333 623
New construction 1579 971 2754 1595 458 377 189 885
Technological connection 446 125 965 1084 305 170 22 735
Objects of technological 330 66 251 167 0 29 0 28 connection with capacity of more than 670 kW (ВН, СН1) Objects of technological 73 62 168 36 0 0 0 0 connection with capacity from 150 to 670 kW (СН2) Objects of technological 731 718 1119 183 152 179 167 123 connection with capacity from 15 to 150 kW
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 124 06 Investment activity
Name of ODGC branch 2011 2012 2013 2014 2015 2016 2017 2018 Objects of technological 0 0 252 124 0 0 0 0 connection with capacity up to 15 kW Generation 706 316 372 456 722 910 930 545
Distribution grids 631 303 322 428 700 880 909 532
Retooling and modernization 75 13 50 29 22 32 21 13
New construction 289 252 361 563 605 453 366 220
Automatization of technological 498 372 509 412 582 559 601 601 management Mean of electric energy control, 44 18 59 38 65 68 56 76 registration Security programs 166 818 43 45 160 51 81 175
Acquisition of electric grid assets, 639 714 858 508 348 353 368 301 land parcels and other facilities. Other programs and events
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 125 06 Investment activity
Absorption of capital investment (without VAT). Volume of capital investment absorption in IDGC: — for 2013 volume amounted 6,567 mln.rub; — in 2014 planned volume will amount 5,859 mln.rub, which is 11% lower than in 2013; — in 2015 planned volume will amount 6,215 mln.rub, which is 6% more than planned volume of 2014; — in 2016 planned volume will amount 5,866 mln.rub, which is 6% lower than planned volume of 2015; — in 2017 planned volume will amount 6 162 mln.rub, which is 5% higher than planned volume of 2016; — in 2018 planned volume will amount 5 786 mln.rub, which is 6% lower than planned volume of 2017.
Total planned volume of capital investment absorption for 2014–2018 amounted 29,888 mln.rub
Volume of fixed asset commissioning in IDGC of Siberia (without VAT): — for 2013 amounted 3,824 mln.rub; — in 2014 planned volume amounted 7,405 mln.rub, which is 94% higher than in 2013; — in 2015 planned volume will amount 6,561 mln.rub, which is 11% lower than planned volume of 2014; — in 2016 planned volume will amount 6,521 mln.rub, which is 1% lower than planned volume of 2015; — in 2017 planned volume will amount 6,117 mln.rub, which is 6% lower than planned volume of 2016; — in 2018 planned volume will amount 6,015 mln.rub, which is 2% than planned volume of 2017.
Total planned volume of capital investment absorption for 2014–2018 amounted 32,619 mln.rub.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 126 06 Investment activity
Fig. 9 Structure of capital investments in 2013.
4% Other
33% New construction
63% Retooling and modernization
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 127 06 Investment activity
Planned spending on retoling and modernization is 4,121 mln.rub without VAT (63%). Planned spending on new construction is 2,175 mln.rub. without VAT (33%). Planned spending on other capital investment is 271 mln.rub without VAT (4%).
6.3. Long-term investment program
Company Investment Program for 2014–2018 was approved in the order determined by legislation provided on all RF constituent territories where IDGC of Siberia performs its activity.
Table 32. Long-term investment program for different regions
Duration period Date of program Executive body authorized to approve Region of the program approval investment programs
Altayenergo 2013-2018 гг. 31.12.2013 Altay Territory Directorate on Industry and Energy
Buryatenergo 2014-2018 гг. 25.03.2014 Ministry of Industry and Energy of the Republic of Buryatia
Gorno Altayskiye 2014-2018 гг. 27.03.2014 Tariff Committee, Ministry of Energy Development Electric Grids of the Republic of Altay, Government of the Republic of Altay
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 128 06 Investment activity
Duration period Date of program Executive body authorized to approve Region of the program approval investment programs
Krasnoyarskenergo 2013-2017 гг. 20.09.2013 Ministry of Industry and Energy of Krasnoyarsk Region
Kuzbassenergo 2013-2018 гг. 30.09.2013 Administration of the Kemerovo Region Regional Electric Grids
Omskenergo 2012-2017 гг. 30.09.2013 Russian Department of Energy
Khakasenergo 2013-2018 гг. 30.09.2013 State Committe for Tariffs and Energy of the Republic of Khakassia
Chitaenergo 2013-2018 гг. 31.03.2014 Government of the Zabaikalye Territory
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 129 06 Investment activity
IDGC of Siberia Investment Program for на 2014–2018 includes financing capital investment in the amount of 35,524 mln.rub with VAT, including division by years:
2014–6 871 mln.rub
2015–7 280 mln.rub
2016–7 206 mln.rub
2017–7 325 mln.rub
2018–6 842 mln.rub
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 130 2011 2012 2013 06 Investment activity
Fig. 10 IDGC of Siberia long-term investment program for 2014–2018, mln.rub without VAT
mln. rub, without VAT Volume of capitalinvestment forInvestment Program 2014–2018, mln. rub, withoutVAT
6 300 6215 6 200 6162 6 100 6 000 5 900 5859 5866 5 800 5786 5 700 5 600 5 500
2014 2015 2016 2017 2018
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 131 Financial and Economic 07 Performance Data 07 Financial and Economic Performance Data
7.1 Financial Results
Table 33. Financial results, mln. rub.
Fact, 2011 Fact, 2012 Fact, 2013 Product (service) sales revenue 52 422 49 707 63 156
including electric power transmission 50 360 48 303 49 771
including technological connection 1 462 1 291 1 738
including electric power sale – – 11 513
Production (service) prime cost, including management and commer- 50 210 48 733 61 850 cial expenses including electric power transmission 49 510 48 437 49 702
including technological connection 139 212 311
including electric power sale 11 657
— material costs (apart from the electric power purchased for loss 1 610 1 939 2 401 compensation and resale)
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 133 07 Financial and Economic Performance Data
Fact, 2011 Fact, 2012 Fact, 2013 — industrial work and service (apart from grid companies) 2 295 1 286 1 048
including equipment repair and maintenance 1 586 1 099 848
— electric power purchased for loss compensation 6 152 6 728 6 317
— electric power purchased for resale 7 781
— JSC FGC UES service 12 731 10 432 10 803
— service of territorial grid companies 12 210 12 275 15 457
— fixed and fictitious assets depreciation 3 179 3 618 4 072
— salary budget, including insurance payments and non-state pension 9 158 10 007 10 192 fund — other expenses 2 874 2 447 2 779
Net profit 311 1 156 -1 129
Net assets 29 519 30 676 29 270
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 134 07 Financial and Economic Performance Data
Fig. 11 Prime cost structure in 2013
1,7% Industrial works and services
3,9% Material costs
4,6% Other expenses
6,7% Fixed and fictitious assets depreciation
10,4% Electric power purchased for loss compensation
12,8% Electric power purchased for resale
16,7% Salary budget, insurance payments and non-state pension fund
17,8% JSC FGC UES services
25,4% Services of territorial grid companies
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In 2013 JSC IDGC of Siberia maintained its activity in conditions of “last mile” problem existence, which resulted in shortfall in income equal to 6 bln rub.
However, due to results of 2013, Company loss amounted to 1.1 bln rub.
Considerable improvement of the financial result in comparison with a planned one is connected with implementation of activities on business process optimization and with influence of exterior factors (growth of electric power consumption and considerable demand for technological connection).
Key factors of a planned financial result improvement: — growth of income from technological connection by 1.9 bln rub;
— growth of electric power consumption secured growth in income by 1.9 bln rub;
— conduct of effective sale and purchase activities, implementation of the program aimed at reduction of expenses and other activities enabled prime cost decrease from electric power transmission by 2.4 bln rub;
— implementation of the program aimed at energy and resource saving resulting in 0.6 bln rub;
— credit portfolio minimization and reduction of interest payment amount by 0.5 bln rub.
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7.2 Analysis of Company Financial Situation and Performance
Table 34. Analysis of financial situation. Dynamics of payables and receivables
Form of indebtedness 31.12.2011 31.12.2012 31.12.2013 change within 2013 Accounts receivable 6 373 8 355 8 287 -68
including debt of electric power 3 825 5 568 5 576 8 supply companies Accounts payable 11 163 12 138 13 012 874
Credit portfolio 6 603 6 502 10 834 4 332
Accounts payable (credit portfolio 17 766 18 640 23 846 5 206 included)
2013‑year-end receivables amounted to 8,287 mln rub, which was 68 mln rub less than in 2012. Inconsiderable decrease of receivables level conditioned change of indebtedness structure: — There emerged receivables for services related to electric power sale in the amount of 1,715 mln rub as a result of assuming functions of a guarantee supplier in two regions of IDGC of Siberia area of responsibility.
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— Restructured indebtedness of Altai Region Administration was fully repaid (500 mln rub). — Receivables in the amount of 1 021 mln rub reflected based on court decision on laying damage at Krasnoyarsk Region in the name of the Ministry of Finances were reversed because of refusal to satisfy the claim by an appeal.
In order to avoid financial loss caused by improper performance of contractual obligations by consumers, Company Board of Directors quarterly approves a detailed activity plan on reduction of a level of overdue and disputed debts of electric power consumers using judicial and pre-judicial procedures.
As of 31.12.2013, payables amounted to 13, 012 mln rub, which was 874 mln rub more than in 2012 and was conditioned by: — growth of advance payments received in the amount of 376 mln rub, including for technological connection (190 mln rub). — growth of debts for investment activity (282 mln rub) and other debts by 299 mln rub, including 362 mln rub for IT-services related to purchase of licenses for use of SAP software. — emergence of current liabilities to the wholesale market for electricity and power (891 mln rub) was compensated by decrease of payables for TSE, including for LLC KREK due to submission of enforcement orders.
Credit portfolio as of 31.12.2013 amounted to 10,834 mln rub. Its growth in 2013 was 4,332 mln rub, including: 3,699 mln rub for performance of operational activity of unprofitable branches and 633 mln rub for financing of Company investment activity.
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Table 35. Company activity indicators
Indicator Formula 31.12.11 31.12.12 31.12.13
Liquidity ratio Absolute liquidity ratio (с. 1240 ф.1. + 0.09 0.02 0.01 с. 1250 ф.1)/с. 1500 ф.1
Acid liquidity ratio (с. 1260 ф.1. + 0,54 0,63 0,55 с. 1250 ф.1+с. 1240 ф.1. + с. 1232 ф.1)/с. 1500 ф.1 Current liquidity ratio с. 1200 ф.1./с. 1500 ф.1 0,66 0,73 0,68
Financial stability ratio Equity (financial independence) ratio с. 1300 ф.1./с. 1700 ф.1 0,58 0,57 0,51
Joint debt to EBITDA ratio с. 1410 ф.1.+с. 1510 ф.1/EBITDA 1,64 1,17 3,08
Working capital ratio (с. 1200 ф.1. — с. 1231 ф.1‑с. -0,58 -0,37 -0,47 1500 ф.1)/с. 1200 ф.1
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Indicator Formula 31.12.11 31.12.12 31.12.13
Profitability ratio Return on equity (ROE) с. 2400 ф.2 /((с.1300 ф.1 report + 1,08 3,84 -3,77 с.1300 ф.1 bas.)/2)*100% Return on total assets (ROTA) for income с. 2300 ф.2 /((с.1600 ф.1 report + 0,97 2,81 -2,09 before taxation с.1600 ф.1 bas.)/2)*100% EBITDA profitability ( EBITDA/ с.2110 ф.2)*100% 0,08 0,11 0,06
Business activity ratio Receivables to payables rate ratio RR/PR, where: 0,6 1,72 0,65
RR=с.1230 ф.1rep./с.1230 ф.1bas.
P=с.1520 ф.1rep./с.1520 ф.1bas.
Total receivables to payables ratio с.1230 ф.1./(с. 1450 ф.1+ с.1520 ф.1) 0,57 0,69 0,64
Most liquid receivables to payables ratio (с.123201 ф.1.+ с. 123206 ф.1)/(с.1521 0,62 1,3 0,79 ф.1+ с.1528 ф.1)
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Decrease of liquidity ratio in 2013 in comparison with 2012 was due to growth of liabilities connected with assuming functions of a guarantee supplier of JSC Omskenergo and JSC Buryatenergosbyt. In spite of active implementation of activities aimed at receivables mobilization providing for intensification of pre-judicial and judicial work with debtors, a problem of improper performance of contractual obligations by consumers is still urgent.
As of 31.12.2013, financial independence (equity) ratio was 0.5, thus remaining on the level of common standard value (not lower than 0.5).
Results of Company activity in 2013 revealed decrease of profitability ratio in comparison with 2012 because of negative financial result.
Decrease of business activity in 2013 in comparison with 2012 was connected with growth of payables related to assuming functions of a guarantee supplier and requalification of indebtedness from long-term to a short-term one in accounting for the amount of 3.7 bln rub (JSC FGC UES).
In order to stabilize financial situation and financial and economic indices, the Company developed and approved Advanced Development Plan (ADP) for 2012–2015 providing for implementation of:
— tariff policy, securing tariff and balance solutions, providing for increase of tariffs in accordance with decisions of tariff regulation authorities; — cost management program and energy saving program; — activities on receivables mobilization providing for intensification of pre-judicial and judicial work with debtors;
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— activities on payables restructuring.
By the results of ADP implementation JSC IDGC of Siberia is planning to: — stabilize Company financial and economic situation and to reach a breakeven level in 2014; — to secure observance of all maximally permitted values of debt status limits and transfer of the Company to credibility group “A” by the results of 2014.
7.3 Company Tariff Policy Tariffs for electric power transmission services. Services on electric power transmission are rendered by the Company in eights constituents of the Russian Federation: Altai Region, Republic of Buryatia, Republic of Altai, Krasnoyarsk Region, Kemerovo Region, Omsk Region, Republic of Khakassia and Zabaikalye Territory. The Company is a natural monopoly entity whose activity on electric power transmission is regulated by the government. Tariffs for electric power transmission services are approved by executive authorities of RF constituents in the sphere of government tariff regulation on the corresponding territories of Company activity.
From January 1, 2013, regulating authorities approved tariffs for electric power transmission services in the regions of Company presence. Pursuant to Government Decree No. 1178 dated 29.12.11, tariffs for electric power transmission services were approved broken down by half years.
Tariffs for electric power transmission services by IDGC of Siberia are available on the Internet: http://www.mrsk-sib. ru/customer/transmit/Pages/tariff.aspx
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Table 36. Dynamics of necessary gross revenues for electric power transmission services by branches, mln rub.
2009 2010 2011 2012 2013 Филиал total own total own total own total own total own Altaienergo 3 992 2 499 4 319 2 462 5 497 3 144 5 612 3 142 6 145 3 531
Buryatenergo 2 464 1 496 3 048 1 881 3 648 2 450 3 831 2 220 4 410 2 600
Gorno-Altaiskiye 398 333 543 387 678 466 766 513 859 591 Power Grids
Krasnoyarskenergo 8 667 3 797 11 191 4 744 12 978 4 095 12 756 4 561 13 226 4 453
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2009 2010 2011 2012 2013 Филиал total own total own total own total own total own Kuzbassenergo- 13 906 3 154 15 666 3 502 18 378 3 731 18 147 3 661 17 678 3 294 Regional Electric Networks
Omskenergo 4 463 2 526 5 185 3 000 6 087 3 629 5 936 3 404 5 799 3 280
Khakassenergo 2 391 1 014 3 387 1 248 4 153 1 069 4 206 1 222 4 788 1 377
Chitaenergo 3 268 2 153 3 837 2 293 4 647 2 743 4 918 2 855 5 370 3 149
Total 39 548 16 972 47 177 19 519 56 066 21 326 56 171 21 577 58 275 22 276
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Fig. 12 Structure of IDGC of Siberia revenue for services rendered on electric power transmission in 2013 by consumer groups
GS ESC ТSС Other consumers
IDGC of Siberia 48 17 9 18 Chitaenergo 62 16 2 Khakassenergo 30 5 5 60 Omskenergo 54 17 17 13 Kuzbassenergo-REG 53 24 23 Krasnoyarskenergo 39 4 7 49 GAEG 100 Buryatenergo 37 31 31 2 Altaienergo 56 12 32
0% 20% 40% 60% 80% 100%
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Fig. 13 Dynamics of necessary gross revenue structure for electric power transmission by IDGC of Siberia
mln. rub. ТSС Losses FGC NGP own
58 275 60 000 56 066 56 171 11 379 (+6%) 50 000 47 177 9 648 (+14%) 10 701 (+11%) 39 548 8 489 (+22%) 7 519 (+41%) 8 198 (+7%) 40 000 7 636 (+2%) 6 977 5 319 (-3%) 30 000 5 458 17 573 (+27%) 16 256 (-7%) 16 422 (+1%) 13 851 (+37%) 10 142 20 000
10 000 16 972 19 519 (+15%) 21 326 (+9%) 21 577 (+2%) 22 276 (+3%) 0
2009 2010 2011 2012 2013
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According to decree No. 24 dated 24.01.2013 by Russian Department of Energy, JSC IDGC of Siberia acquired status of a guarantee supplier in regard to activity area of JSC Omskenergosbyt. Order No. 10/4 dated 29.01.13 by Regional Energy Commission introduced corresponding sales increase.
According to decree No. 211 dated 01.05.2013 by Russian Department of Energy, JSC IDGC of Siberia acquired status of a guarantee supplier in regard to activity area of JSC Buryatenergosbyt.
According to Clause 65 of Pricing Basics approved by RF Government Decree No. 1178 dated 29.12.2011 On pricing in the field of regulated process (tariffs) in electric power industry, in case of change of a guarantee supplier in accordance with basic provisions of retail electric power market functioning during a regulation period before beginning of the next regulation period, sales increase of an organization acting as a previous guarantee supplier shall apply.
Thus, beginning from 01.05.2013 Buryatenergo, a guarantee supplier of OJSC IDGC of Siberia, by authority of law applies sales increase introduced by Order No. 1/54 dated 26.12.2012 of RST RB On sales increase of JSC Buryatenergosbyt guarantee supplier on the territory of RB for 2013.
In 2013 tariffs for electric power transmission services in OJSC IDGC of Siberia are regulated as follows:
Altaienergo — return on investment method;
Buryatenergo, Gorno-Altayskiye Electric Grids, Krasnoyarskenergo, Kuzbassenergo, Omskenergo, Khakassenergo, Chitaenergo — method of necessary gross revenue adjustment.
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Table 38. Regulation periods
Наименование филиала Период регулирования Алтайэнерго 2012–2017 Бурятэнерго 2014–2018 ГАЭС 2012–2017 Красноярскэнерго 2012–2017 Кузбассэнерго-РЭС 2014–2018 Омскэнерго 2012–2017 Хакасэнерго 2012–2016 Читаэнерго 2012–2014
Tariffs for services on technological connection. In 2013 cost of technological connection was approved by executive authorities in the field of tariff regulation according to Article 87 of Government Decree No. 1178 dated 29.12.2011 On pricing in the field of regulated process (tariffs) in electric power industry, in a form of standardized tariff rates — rate per 1 kW of maximum capacity broken down by consumer categories, tension level of electric grids to which technological connection is performed, and (or) volumes of connected maximum capacity.
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Table 39. Analysis of average rate per power unit dynamics by branches, rub./kW
Branch 2011 2012 2013 Altaienergo up to 15 kW inclusively 1) 1125,755 1125,755 more than 15 kW 1) 1125,755 1125,755 up to 15 kW with voltage of 0,4 kv 1085,7 more than 15 kW with voltage of 0,4 kv 220,9 up to 15 kW with voltage of 6-10 kv 861,3 more than 15 kW with voltage of 6-10 kv 162,3 more than 150 kW with voltage of 6-10 kv 35,3 Buryatenergo more than 15 kW with voltage of 0,4 kv 1 132,66 more than 15 kW with voltage of 6-10 kv 1 162,40 from 04.03.2011 more than 15 kW with voltage of 0,4 kv 2158,24 2158,24 more than 15 kW with voltage of 6-10 kv 1862,09 1862,09 tariff for maximum power unit 1363,88 from 15.08.2013 tariff for maximum power unit 1186,73
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Branch 2011 2012 2013 Gorno-Altaiskiye Power Grids from 23.07.2012 with voltage of 0,4; 10 kv 609,06 tariff for maximum power unit 640,5 Krasnoyarskenergo up to 100 kW with voltage lower than 35 kv 267,42 267,42 up to 10000 kW with voltage lower than 35 kv 275,76 275,76 up to 8900 kW with voltage lower than 35 kv 304,4 Kuzbassenergo- Regional Electric Networks from 20.04.2011 up to 10000 kWA with voltage lower than 35 kv 2337,18 from 22.02.2012 up to 10000 kWA with voltage lower than 35 kv 5277,4 tariff for maximum power unit 33,81
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Branch 2011 2012 2013 Omskenergo up to 100 kW with voltage lower than 35 kv 205,45 more than 100 kW with voltage lower than 35 kv 205,45 up to 100 kW with voltage lower than 35 kv 2) 104,68 up to 100 kW with voltage lower than 35 kv 3) 129,84 more than 100 kW with voltage lower than 35 kv 3) 129,84 from 01.08.2011 up to 100 kW with voltage lower than 35 kv 234,04 234,04 more than 100 kW with voltage lower than 35 kv 234,04 234,04 up to 100 kW with voltage lower than 35 kv 2) 205,46 205,46 tariff for maximum power unit 295,45 Khakassenergo lower than 35 kW and capacity less than 10 000 kVA, except for ap- 4796,47 plicants indicated above (reliability category III) from 09.06.2011 up to 10 000 kVA with voltage lower 35 kv 235,3 235,3 tariff for maximum power unit 143,47
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Branch 2011 2012 2013 Chitaenergo 0,4 - 1 kv up to 30 kW 4 484,81 4 484,81 more than 30 kW and up to 100 kW inclusively 5 232,35 5 232,35 6 kW and more up to 100 kW 5 646,81 5 646,81 more than 101 kW and up to 750 kW 6 108,18 6 108,18 more than 750 kW 6 293,35 6 293,35 more than 15 kW and up to 150 kW with voltage of 0,4 kv 118,45 more than 150 kW and up to 670 kW with voltage of 0,4 kv 46,26 more than 670 kW with voltage of 0,4 kv 50,63 more than 15 kW and up to 150 kW with voltage of 6-10 kv 160,11 more than 150 kW and up to 670 kW with voltage level of 6-10 kv 54,09 more than 670 kW with voltage of 6-10 kv 50,63
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1. Cost rate for technological connection to electric grids of Altaienergo, branch of JSC IDGC of Siberia, includes expenses on preparation of technical conditions in the amount of 292.74 rub/kW;
2. For applicants: — for legal entities or individual entrepreneurs for the purposes of technological connection via one electric power source of power receivers, which maximum capacity constitutes up to 100 kW inclusively (taking into account capacity connected to this connection point earlier); — for the purposes of temporary (no more than 6 months) technological connection of power receivers belonging to it in order to supplier electric power to mobile objects with maximum capacity of up to 100 kW inclusively (taking into account capacity connected to this connection point earlier); — for physical persons for the purposes of technological connection of power receivers with maximum capacity of up to 15 kW inclusively (taking into account capacity connected to this connection point earlier) that are being used for domestic and other needs not related to entrepreneurship and electric supply of which is realized via one source).
3. For applicants who are legal persons or individual entrepreneurs total connected capacity of receivers of which does not exceed 750 kvA.
Beginning with 2013 after acceptance of Procedural Guidance on Assessment of Cost of Technological Connection to Power Grids approved by FTS order No. 209‑э/1 dated 11.09.2012, approach to tariff regulation in the part of calculation and cost assessment for technological connection has changed.
In 2011–2012 cost of technological connection was approved as a unified rate — rub/kW, exclusive of investment component in most branches. Table 39 contains comparative data on tariffs for maximum power unit (rub/kW), exclusive of tariffs for “list mile” construction (from the existing electrical grid facilities to Applicant’s power receivers being connected).
Exception is made for Kuzbassenergo- Regional Electric Networks, Khakassenergo and Chitaenergo branches, payment for technological connection in which in 2011–2012 was approved as a unified tariff including investment component, however
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 153 07 Financial and Economic Performance Data these tariffs cannot be compared with tariffs set in 2013, because beginning with 2013 tariffs for 1 kW of connected power are approved by work types, including construction of “last mile” facilities with reference to specification of types of lines being installed, cable brands and types of substations.
Information on approved tariffs for technological connection by branches is given in Appendix 18.
In general in most contracts executed in 2013 by the Company cost of technological connection was calculated applying tariff for 1 kW of maximum power. Share of such contracts constitutes 94% of total number of executed contracts (except for contracts on connection of power receivers with maximum capacity not exceeding 15 kW inclusively, tariff for which is determined by current law in the amount of 550 rub for connection). Application of standardized rates when calculating cost of technological connection amounted to 5% of total contract number, while payment calculation for an individual project does not exceed 1%.
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Fig. 14 Analysis of frequency of usage (applicant’s choice) of this or that method of payment for technological connection
Individual project Standardized rates Tariff for a power unit
IDGC of Siberia 94 5 1 Chitaenergo 63 32 5 Khakassenergo 97 3 Omskenergo 97 1 2 Kuzbassenergo-REG 15 67 18 Krasnoyarskenergo 99 1 GAEG 99 1 Buryatenergo 94 5 1 Altaienergo 96 3 1
0% 20% 40% 60% 80% 100%
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8.1 Primary Areas of IT-Activity
Development of IT and telecommunication in 2013 was defined by the Strategy in the field of IT, automation and telecommunication (ITT) for the period up to 2016. IDGC of Siberia strategy in the field of ITT for the period up to 2016 was approved in 2012 by resolution of Company Board of Directors.
To execute assigned tasks of improvement of the management system efficiency, in 2013 Company implemented projects on creating unified corporate information management system.
Company implemented activities in IT field at technological level (teleautomation of substations and network control centers (NCC)) within fulfillment of the program for increasing observability/manageability of power industry facilities and improvement of power grid complex reliability.
In 2013 the following main projects were realized: — establishment of a through integrated system of planning and investment control: PS, MM, TORO (within the scope of work in 2013); — planning and actual accounting of labor time in SAP TORO, with cost separation according to cost methods; — development of automation module for calculation of planned expenses on works on technological connection and repair using technological cards; — SMS-notification of consumers; — creation of soft hardware complex SAP on Intel-Microsoft platform (within the scope of work in 2013).
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Implementation of ITT-Strategy in 2013 brought the following results: — in regard to corporate information system of repair management, process of planning and actual accounting of labor time of primary technical staff was realized, planning process for repair and operational programs using technological cards was organized; — SMS-notification of consumers on cuts was introduced, as well as automatic notification of applicants on a status of applications and agreements on technological connection of objects on Company website and via SMS-notifications; — personal computer systems and printing devices were renewed; — the first stage of the project on establishing software and hardware SAP complex on Intel-Microsoft platform was performed; — work on formalization of IT-processes and work procedures of IT subdivisions. Existing IT — infrastructure supports the platform in terms of implementation and further development of projects aimed at introduction of corporate information systems (KISU) on SAP ERP platform and of automation systems of technological level.
8.2 Tasks and Key Projects Planned for 2014
For 2014, within implementation of JSC IDGC of Siberia ITT Strategy, Company planned implementation of activities as follows: — Development of a corporate-wide solution “SAP-based investment planning system” in terms of use of functional for calculation and evaluation of equipment technical state, as well as calculation and analysis of consequences of equipment failure; — realization of a planning functional on the basis of prioritized and ranged equipment lists of production programs (PP) and
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control of PP execution; — development and introduction of an automated system of claim-related work accounting in the Company based on SAP ERP program complex; — automation of a business process on planning and performance of the procurement plan using SAP SRM functional; — creation of a through integrated system of planning and investment control (PPM); — development and implementation of an information system on SAP Business Objects platform securing automated receipt of report data in flexible and fixed formats; — execution of a unified information system for management of the process of cooperation with consumers on the basis of SAP CRM; — creation of software and hardware SAP complex on Intel-Microsoft platform (stage two).
8.3 Development of Automated Process Management Systems
In 2013 activities on APMS development were carried out as follows: — Tele-automation of substations. 25 substations of JSC IDGC of Siberia were tele-automated; — creating of dispatcher information system in 58 distribution zones; — activities on development of NCC hardware and software based on KOTMI software, and were established remote-control signals for all tele-automated substations in 41 branches of distribution zones; — capacity of main communication channels of IA IDGC of Siberia — branch 100 Mbit; — capacity of communication channels was increased to PO and REN (no less than 256 Kbit, 2 Mbit, 100 Mbit);
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For 2014 Company planned implementation of activities as follows: — Creation of backup communication channels for distribution zones and improvement of reliability for current channels; — automation of distribution zones dispatch centers; — Providing NCC with necessary communication channels for performance of their functions; — Implementation of Satellite Navigation System Program; — development of corporate multiservice network with systems of management and communication monitoring.
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Providing efficiency and constant improvement of Internal Audit and Risk Management System is one of the Company key business priorities. Development of internal audit and risk management aims at pursuing Company strategic goals in the most efficient way, soundness of assets and investment attractiveness, compliance with legislative requirements, submission of reliable reports, maintenance of efficient management providing consumers with failure-free power supply and power efficiency.
9.1 Internal Audit and Risk Management System
Internal audit and risk management system (further IA and RMS) of IDGC of Siberia is an element of corporate management system of the Company which includes a whole variety of procedures, methods and mechanisms of control that are introduced and used by the Board of Directors, Audit Commission, executive bodies and all employees of the Company to provide reasonable guarantees of achieving goals in the following directions: — efficiency and productivity of Company activity; — compliance with legal requirements applicable to Company activity, as well as requirements of Company local regulatory acts; — prevention of misconduct by Company employees and third parties in relation to Company assets; — reliability, completeness and timeliness of preparation of all types of reporting.
In order to develop IA and RMS in the Company the Board of Directors approved the following normative acts: — Internal Audit Policy; — Risk Management Policy.
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IA and RMS improvement is being realized on all the stages of Company management in the following directions of control: — preliminary control (risk management system) which includes identification, evaluation and management of risks (threats and possibilities) for the purpose of effective realization of corporate and strategic goals, and identification and management of economic and energetic security risks; — current control which includes regulation and unification of business processes with defining of control procedures and responsibility of business processes participants according to management levels; — follow-up control which includes audit control of reporting reliability, assets safety, compliance of finance and business performance with legislation, Charter and local normative acts, internal audit of efficiency of Company business processes and IA and RMS, adherence to corporate ethics and anti-corruption control.
Normative acts of the Company introduced a “distributed” model of IA and MRS that established responsibility as follows: — the Board of Directors of the Company defines directions of IA and MRS development; — Audit Committee of the Company Board of Directors controls efficiency of IA and RMS; — Internal Audit and Risk Management Department audits and appraises efficiency of IA and RMS, corporate management system and follow-up control procedure. It also manages and coordinates report making on risks, provides data on risks and internal audit procedures in the Company to interested parties; — executive bodies of the Company are responsible for organization of effective performance of current and preventive control procedures and realization of IA and RMS local normative acts; — Authorities (business processes owners) are responsible for introduction and execution of control procedures and activities on risk management and timely identification and evaluation of risks.
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9.2 Main Risk Factors
Company activity is adjacent to risks that should be considered by investors. Further main risk factors actual for IDGC of Siberia now are provided.
Country and Regional Risks Country and regional risks are first of all determined by macroeconomic factors occurring on a global level in the Russian Federation and separate districts. The said factors can negatively influence the possibility of capital gearing, liquidity indices, investment and operational efficiency and, as a result, shareholder value of the Company. Moreover, crisis developments in the world economics adversely affect industrial output and consumption of electric power, which results in reduction of Company profit.
A main factor of macroeconomic risk is a continuing world financial crisis that influences key indicators of raw and financial markets: prices for fuel and energy and other raw materials reserves, cost of capital, world currency rate and inflation.
In order to minimize macroeconomic risk consequences, IDGC of Siberia realized a complex of measures on optimization of the share of borrowings in total capital structure, attraction of long-term loans with fixed interest, enhancement of Company operating and investment expenses efficiency.
Branch Risks IDGC of Siberia main activities — realization of services on electric power transmission and technological connection to power grids- are regulated by the government. Due to specificity of Company activity, its main branch risks are tariff risks.
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The government directly influences Company activity by means of regulating tariffs for services on electric power transmission and introducing tariffs for technological connection to electric grids via authorized bodies on tariff introduction in RF constituents.
Tariff regulation policy is aimed at electric power tariffs restraint, which can lead to restraint of tariff sources for investment and operational activity of the Company.
Another significant risk factor is a mechanism of cross-subsidization of other categories’ consumers, including population, by big industrial consumers. Big industrial consumers directly connected to UNPG must pay for services on electric power transmission provided by the Company according to tariffs on electric power transmission in cases when, under “last mile” agreements concluded between the Company and OJSC FGC UES, these objects have been leased to the Company. Separate big industrial consumers switched to direct contracts with JSC FGC UES via judicial decisions. In 2012 on the basis of Order No. 402 dated August 24 of Russian Ministry of Energy, IDGC of Siberia and JSC FGC UES concluded “last mile” agreements for 2013, which caused fall-out revenues in 2013.
Based on Federal Law No. 308‑FZ dated 06.11.2013, “last mile” agreements are terminated in most of the regions of Company presence from 01.01.2014, in the Republic of Buryatia and the Zabaikalye Territory — from 01.07.2029; in the Republic of Khakassia — from 01.07.2017.
From 01.01.2014 tariffs for some RF constituents — the Republic of Khakassia and Kemerovo Region — are approved by regulating authorities exclusive of 7% of tariff growth provided for in i.1.4 Art. 23.2 Federal Law No. 35‑FZ “On Power Industry” (in order to reduce cross subsidization).
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Cross subsidization rate for 2014 in the Republic of Khakassia is less than the rate calculated in accordance with Art. 23.2 Federal Law No. 35‑FZ “On Power Industry” (amendatory to No. 308‑FZ dated 06.11.2013).
To minimize the said risks the Company maintains policy on improvement of investment and operational activity efficiency, aimed at reduction of costs and optimal planning of funding source structure. For these purposes the Company implements a program on cost management. Work with regional services on introduction of tariffs for RF constituents is held for the purposes of economic justification of costs included in tariffs, as well as with regional and local authorities for the purposes of coordination of long-term programs of regional in the area of Company presence.
Financial Risks The Company is a subject of natural monopoly and its primary activity type (power transmission) is subject to state tariff regulation. Accordingly, growth of interest rate for credit portfolio service is not covered by current tariff, which leads to issuer’s fallout revenues that will be compensated by tariff regulation in the following periods and may be included in final consumer’s tariff. Power industry belongs to a category of capital-intensive industries, and in case Company activity requires considerable investment expenses in its investment projects, growth of interest rates in the market may lead to appreciation of investment programs.
Inflation risk influences market fluctuations, particularly, increase of cost of materials, services of subcontractors, etc., which may result in increase of prime cost of services rendered by the Company and, further, decrease of all basic financial indices. In order to manage the said risk, the Company takes measures on making long-term contracts with suppliers fixing process and amounts on the basis of competitive bids and implements its cost management program in order to optimize Company expenses.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 166 09 Internal Audit and Risk Management
Legal Risks The Company performs its activity in compliance with regulations of current law of the Russian Federation, including currency and tax law, and constantly monitors its changes.
Legal risks are conditioned by specificity of current law and judicial system revealed in different judicial practice for one and the same issue and interpretation of law in general, collision of legal norms, relatively recent introduction of numerous laws and legal acts, and ambiguity and inconsecutiveness of their interpretation and application.
Company management assumes that IDGC of Siberia fully observes tax law in regard to its activity, which, however, does not eliminate potential risks of its bringing to responsibility in case of changes in state fiscal policy related to some taxes and levies, as well as changes (not in favor of a taxpayer) of judicial practice for some categories of tax cases. This risk is treated as inconsiderable. In order to minimize different legal risks, the Company conducts preliminary legal analysis of planned corporate procedures, transactions to be made and other aspects of financial and economic activity provided for by current law and Company Articles of Association.
Transaction Risks Company activity is potentially connected to possibility of emergency situations and accidents at power grid facilities Human- induced risks may result in material effects for the Company in the form of loss of the reputation due to break of electric power supply reliability, and economic losses as a result of contingencies related to mitigation of consequences and reconditioning of the equipment.
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As measures enforcing decrease of possible industrial risk realization, the Company maintains: centralized control over industrial safety; training, control and certification of the staff engaged in maintenance of the hazardous production facilities; insurance program implementation; measures aimed at submission of prompt and full information about accident and its possible reasons with provision of reliable communication lines.
Transaction and technological risks influencing power supply reliability are first of all connected with high physical and moral deterioration of electric grid assets, violation of operating conditions and operational regimes of electric supply equipment, as well as nonobservance of repair program to the right extent. The said factors influence amounts of loss in electric grids, thus, increasing Company expenses for purchase of electric power in order to compensate the losses. These risks lead to considerable economic and reputation consequences.
IDGC of Siberia take measures facilitating decrease of possibility of transaction and technological risks aimed at improving reliability of electric power supply of consumers by means of reconstruction of objects of electric grid facilities, expansion of the stock of emergency electric power sources and auto- and special machinery. The Company also performs complex modernization of electric grid assets, switching equipment and tele-automation systems, as well as perfection of data collection and transfer systems.
Moreover, in order to minimize transaction and technological risks, IDGC of Siberia observes the Provision on Standard Technical Policy in Electric Grid Complexes approved by JSC “Russian Grids” Board of Directors (Minutes No. 138 dated 23.10.2013) accepted as its internal document by resolution of JSC IDGC of Siberia Board of Directors (Minutes No. 133/13 dated 23.12.2013). In addition to that, the Company implements business assets management system on the basis of factual state of equipment index.
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Investment Risks IDGC of Siberia actively assimilates investments aimed at renewal and widening of grid infrastructure and, in the process of implementation of investment programs and programs of innovative development and R&D, faces efficiency downside risk and capital investments devaluation risk.
Growing amounts of investment programs on Company development requires attraction of significant financial resources — both equal and borrowed ones. Moreover, IDGC of Siberia realizes socially significant investment projects that are not always effective from economic point of view.
Even in case that there is enough financial resources for investment program implementation, there is a possibility of nonobservance of capital investments assimilation scheduled data and delay in start-up of investment programs objects, including consequences of non-fulfillment or untimely fulfillment by contractors and suppliers of their liabilities.
To minimize investment risk, IDGC of Siberia plans investment programs taking into account the following key criteria of efficiency: increase of grid infrastructure availability, reduction of deterioration and modernization of objects of electric power grid facilities and achievement of high capacity utilization.
IDGC of Siberia takes measures aimed at quality improvement of project realization, decrease of construction unit cost, achievement of high capacity utilization and automation of investment management system.
Compliance Risks Frequent changes of Russian Federation legislation in conditions of state regulation of the industry, a wide range of regulations
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 169 09 Internal Audit and Risk Management and limitations are risks factors connected with non-observance by IDGC of Siberia of legislation and other legal acts and requirements of regulatory and oversight bodies, and other IDGC of Siberia internal documents defining its internal policy, rules and procedures (compliance risks). Since the Company is controlled by the government via its main shareholder (JSC Russian Grids) and executes some orders of the President and Russian Federation Government, compliance risk factors are very important.
IDGC of Siberia activity is regulated and controlled by different bodies, such as Public Prosecution Office, FAC, FTC, Bank of Russia, FTS of Russia, Department of Energy, Accounts Chamber of the Russian Federation, Federal Financial Monitoring Service, Rosstandard, Rosprirodnadzor and others.
IDGC of Siberia, being a subject of natural monopoly, is subjected to risks of antitrust offence admission, especially in the part concerning provision of services on technological connection of consumers’ electric installations to electric grids. Applications of consumers to territorial directorates of FAS are caused by nonobservance of legally introduced terms of connection and other factors.
To reduce influence of the factors causing realization of the said risk, the Company monitors operational efficiency of consumers’ applications and references processing, regulates and controls timely information disclosure under Russian Federation legislation. IDGC of Siberia imperfects business processes on technological connection of consumers by means of simplifying its internal procedures and implementing new forms of consumer service, connected with online means of service, for example.
IDGC of Siberia owns, rents or has a right in unlimited use of most land plots where distribution assets are located. Nevertheless,
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 170 09 Internal Audit and Risk Management property rights on some of them are not executed under legislation. To minimize the said factor, the Company realized the Program on IDGC of Siberia Registration/Re-registration of Rights for Use of Immovable Property and Land Plots for 2011–2014, given conducting of works on preparation of data on fenced-off area borders of power grid facilities, which enables control of asset management risks.
In order to minimize compliance risk factors, the Company realizes measures on compliance control perfecting and monitors changes in current legislation concerning different aspects of Company activity. The Company introduced local documents aimed at enhancement of efficiency and transparency of Company activity and corruption prevention.
Statutory requirements in the field of insider information to IDGC of Siberia as an issuer emerge due to introduction of financial instruments (shares) of the Company on Russian trading floors — CJSC MICEX Stock Exchange. Bank of Russia manages and controls Company activity in a part related to observance of Russian Federation law on securities, including disclosure of information on important events that may have significant influence on cost of securities, as well as counteracting to unauthorized use of insider information.
In order to observe legal requirements, the Company maintains control in the field of insider information.
IDGC of Siberia Board of Directors approved revised Organization Standard Insider Information. Statement (Minutes of the Board of Directors No. 122/13 dated 03.06.2013) that takes into account changes and amendments of the Federal Law No. 224 of July 27, 2010, on Suppression of Improper Use of Insider Information and Manipulation of Market and on Introduction of Amendments in Some Legislative Acts of the Russian Federation, which came into force beginning from 01.01.2013.
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The following procedures have been introduced within the Statement: formation of IDGC of Siberia insider information list, introduction of handling rules for insider information, conduct of transactions with insider financial documents and making agreements on protection of confidentiality of Company insider information.
In order to imperfect preventive control, IDGC of Siberia Board of Directors approved the Code of Conduct regulating corporate responsibility and conduct of IDGC of Siberia insider workers.
Within current compliance control IDGC of Siberia keeps insider list, accounts notifications on inclusion of persons into insider list or exclusion from the list and on transactions of insiders with IDGC of Siberia securities, controls observance of the rules of operations with insider financial instruments of IDGC of Siberia on the basis of information (notifications) on transactions of insiders and controls observance of legislation in the field of insider information within the frames of pre-contractual work.
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10.1 Company HR and Social Policy
Main target of JSC IDGC of Siberia HR Policy is achieving strategic and tactic Company goals through its running Human Resources management System.
HR Policy Fundamentals: — systemacity principle; — Company HR Policy is an integral, interrelated, dynamic system covering all categories of staff. — legal safety principle; — This Principle assumes strict observance of laws and other legal acts, standards of Administrative, Civil, Labor and Economic Law of the RF. — social partnership principle; — HR Policy is maintained on the grounds of mutual respect, coordination of activities and responsibility of parties in the relations between employees, staff representative bodies and Company management. — operational efficiency principle; — Timely decision making based on analysis of the situation and improvement of HRMS, preemptive deviation offset; — optimality principle; — Choice of the most efficient variant of solving particular tasks.
HR policy guidelines: — providing Company staff with skilled personnel of major qualifications;
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— implementation of activities on Company personnel anti-aging; — development of interaction system with Higher and Secondary Educational Institutions; — development of personnel training, re-training and advanced systems; — implementation of work with personnel reserve; — improvement of employee incentive programs, Company social and social partnership programs; — development of Company corporate culture, information and feedback system; — enhancement of work on psychophysiologic safety measures for labor activity.
10.2 Staff Size and Structure
In 2013 OJSC IDGC of Siberia average staff number was 21,516 people. Increase of average staff number, as compared with previous years, is determined by assuming functions of a guarantee supplier of services on electric power sale in the territories of the Republic of Buryatia and Omsk Region.
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 175 2011 2012 2013 10 Human Capital Assets and Social Accountability
Fig. 15 Dynamics of Company average staff number in 2011–2013, pers.
22 000 21 516 21 500 21 000 20 532 20 500 20 000
19 500 19 221 19 000 18 500 18 000
2011 2012 2013
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Fig. 16 Distribution of staff in 2013, pers.
1% Executive office 2% GAEG 5% Khakassenergo 12% Buryatenergo 12% Chitaenergo 13% Kuzbassenergo-REG 17% Omskenergo 19% Altaienergo 19% Krasnoyarskenergo
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Fig. 17 Personnel supply level,%
% 96,1 96,2
96
95,8 95,695,6
96,6
95,4
95,2
01.01.2012 01.01.2013 01.01.2014
Personnel supply level decreased by 0.5% in comparison with 2012 and amounted to 95.6%.
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Fig. 18 Dynamics of staff structure by categories for 2011–2013.
% Workers Specialists/employees Managers
100 90 16,6 16,6 14,9 80 70 26,1 26,9 35,6 60 50 40 30 57,3 56,5 49,5 20 10 0
2011 2012 2013
In 2013 Company category of managers and workers decreased by 1.7 and 7.0 points respectively. At the same time category of employees increased by 8.7 points. It is related to assuming functions of a guarantee supplier (category of specialists in the hired personnel prevails — 71.3%).
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Fig. 19 Dynamic staff structure by age for 2011–2013.
% 4,2 4,5 4,5 100 Working pensioners 90 23,4 22,5 21,6 80 From 50 till pension age 70 60 50 25-50 40 64,4 65,4 67,2 30 Under 25 20 10 0 8 7,6 6,7
2011 2012 2013
OJSC IDGC of Siberia staff structure by age certifies that 67.2% of staff is in the active, employable age group from 25 to 50. Share of employees by age categories has not considerably changed as compared to 2012.
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Fig. 20 Dynamic staff structure by educational level for 2011–2013. As of December 31, 2013, share of employees having Candidate of Science degree is 0.1%.
% 2,9 3,2 3,6 100 Higher education in 2 90 or more specialties 80 33,7 34,8 36,9 70 Higher vocational education 60 50 29,9 30,1 30 40 Secondary vocational education 30 10,3 10,5 10,3 20 Elementary vocational education 10 16,6 21,3 19,2 0 Secondary/junior secondary education 2011 2012 2013
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40,5% of IDGC of Siberia personnel have higher vocational education, which is 2.2 points more than 2012.
Gradual decrease of a number of employees having no vocational education is being observed: their share is 2.1 points less than in 2012.
Considerable share of personnel belongs to employees having secondary vocational education. It is explained by the fact that 50% of total personnel number stands for “Workers’ category, for which such level of education is sufficient.
Systematic growth of qualification characteristics of staff is a result of IDGC of Siberia purposeful behavior on development of cooperation with institutions of higher and secondary education, within which personnel have an opportunity to improve their skills. IDGC of Siberia hires perspective graduates selected in the result of professional orientation activities: — making agreements with students having relevant specialties on their work after graduation in IDGC of Siberia divisions located in rural and remote areas under terms of scholarship paid by the Company; — management of student practice, including paid summer practice in a form of power crews. In 2013 for the first time project on student power crews’ organization was implemented in all regions of IDGC of Siberia presence. 335 students took part in it.
In order to increase a number of school graduates continuing their education in relative specialties and career guidance of students of educational institutions of general, secondary and higher vocational level, the Company annually holds event called “IDGC of Siberia’s Week”. The event includes meetings with students and excursions to power facilities. In 2013, 9567 pupils and students took part in the event.
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10.3 Staff Training and Development
Education belongs to a category of priority directions of IDGC of Siberia HR policy and is regulated by Company standard “Personnel Training, Re-training and Development”.
In the reporting period 7 299 employees of IDGC of Siberia, or 34.09%, of average headcount were trained. Share of personnel trained as of 31.12.2013 increased by 1.47% (+776 people) in comparison with the same period of 2011, however it decreased by 8.18% (-1 396 people) in comparison with the same period of 2012. It is explained by mass education of personnel employed in electric power transport block conducted in 2012 and growth of personnel number in 2013 due to assuming functions of a guarantee supplier.
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Fig. 21 Share of employees that participated in training events, and relation of costs of personnel training to Labor Compensation Fund in the reporting period,%
Share of trained employees, % Share of employees trained on the base of SibKEUC (Private Institution of Continuing Professional Education) % Expenses on education to Labor Compensation Fund ratio, %
80 70 1,00 60 0,86 0,73 0,75 50 0,64 0,65 0,64 0,62 40 0,43 0,44 30 20 10 0 34 6 33 16 33 24 22 20 40 18 42 39 26 14 75 9 15 12 34 19 Executive officeАEBEGAEGКEКuE ОЭ KhECE IDGC of Siberia
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For the period 2011–2013 share of Company trained personnel steadily exceeds 30%, which corresponds to its goals in the sphere of personnel development. Low values of this index in branches PSPP, Omskenergo and Chitaenergo are conditioned by economic factors and deficiency of budget for personnel training. Relatively high values of trained personnel in Khakassenergo are mainly explained by loyal price policy of regional suppliers of educational services. In the conditions of cost optimization, number of in situ training activities is growing: with reference to pre-examination personnel training, share of employees involved in training activities at these branches is more than 39%, and amounts to 60.25% for the whole Company.
In 2013 IGDC of Siberia spent RUR52.27 mln or 0.61% of Labor Compensation Fund on personnel training. In the conditions of cost optimization, special attention is paid to cost of services being offered when choosing contractors.
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Fig. 22 Distribution of trained personnel by categories
19,44% Specialists
32,24% Managers
48,32% Workers
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In order to observe requirements on mandatory training (Rules of work with personnel at power facilities, Rostekhnadzor requirements, etc.) in “Professional Training” direction, 4 683 people or 64.16% of number of people trained in the reporting period were trained, for which RUR13.71 mln or 32.44% of annual amount of finances on training was spent.
Cooperation with FSBEI UMC Federal Service for Environment, Technological and Nuclear Supervision (UMC Rostekhnadzor) was continued, and seminar “Labor protection management at electric grid facilities” was held in April, 2013.
On the basis of Petersburg Energy Institute of Further Training and Novosibirsk Branch of Petersburg Energy Institute of Further Training dispatchers from Network control center were trained.
Company trained were further trained under Master of Business Administration (MBA) program, “Management and regulation of economic activity in international power industry” on the base of a specialized school of JSC Russian Grids in MIEP MGIMO (U) MIA of Russia.
IDGC of Siberia is aimed at meeting the basic demands for personnel training in its own training center — Private Institution of Continuing Professional Education “Siberian Corporate Energy Training Center” (SibKEUC), with central office located in Krasnoyarsk, branches are in Barnaul, Kemerovo, Omsk, Chita and Ulan-Ude.
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Fig. 23 Data on IDGC of Siberia training center
Moscow
Omsk Krasnoyarsk
Kemerovo
Abakan Chita Barnaul Ulan-Ude
Gorno-Altaisk Kyzyl
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SibKEUC performs educational activity under License 7316‑л dated 28.06.2013 issued by Krasnoyarsk Region Service of Control in the Sphere of Education.
As of 31.12.2013, 4 043 people (55.40% of total trained people) were trained in the center, which was more than in 2012: +13,83% (+429 people) in 2013 in comparison with 2012. Expenses on the center amounted to RUR22.63 mln, which was also more than in the previous year: +12,8% (+RUR5,39 mln) in 2012 in comparison with 2012.
Training of personnel in its own center has some advantages, which are as follows: — introduction of unified standards and forms of education; — formation of education principles related to Company strategic plans; — prompt reaction and reorganization of education process; — use of Company training polygons; — cost reduction; — qualification of trained personnel is maximally close to Company needs; — assessment of training efficiency.
SibKEUC branches have lecture space, laboratory complexes and Company training polygons for practical lessons.
In the reporting period 14 corporate seminars were held in SibKEUC, with participation of 746 IDGC of Siberia employees. In order to secure maximum correspondence of teaching materials to professional activity of listeners, Company experts coordinated seminar programs. For this very purpose Company employees were hired as teachers to SibKEUC.
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SibKEUC renders services to outer consumers on the whole territory of Company presence, thus, successfully competing with other educational institutions: JSC IDGC of Siberia share in SibKEUC revenue amounted to 56.3% in 2013.
Interaction with Educational Institutions. There are 9 universities and 18 academies among specialized educational institutions cooperating with JSC IDGC of Siberia, such as Siberian Federal University, Altai State Technical University, Zabaikalye State University, Omsk Industrial and Economic College, Nazarovo Power Construction College and Gusinoozersky Power College.
JSC IDGC of Siberia Decree No. 210 dated 03.06.2013 approved the Program on cooperation with educational institution aimed at implementing systematic approach and bringing actions of Company branches to uniformity. The Program includes 17 directions of work with students of schools, colleges, and universities, as well as their parents and teachers.
Its projects include both traditional and absolutely new activities, such as: — “Welcome to Big Power Industry!” project consisting in forming careergrams of graduates’ development in the process of employment; — realization of corporate scholarship programs under terms of allocating young specialists to subdivisions located in rural area; — updating working programs of student training, for which purpose in 2012–2013 academic year 9 specialized universities organized probations of teachers in the sphere of electric power transport and asset management; — involving students and young teachers in IDGC of Siberia contest of scientific works.
The Company implemented a pilot project on creation of its information stand on the basis of Siberian Federal University
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(Krasnoyarsk). It is planned to place information on IDGC of Siberia as a potential employer in all specialized partner universities.
10.4 Work with Company Personnel Reserve
One of IDGC of Siberia primary tasks related to HR management is formation and preparation of personnel reserve.
The Company established management personnel reserve and youth personnel reserve.
Management personnel reserve is formed with the aim of prompt and quality provision of Company needs with employees ready to work at leading positions.
Formation of personnel reserve is performed: in executive apparatus — for the positions of higher and medium management, in PO — for the positions of leaders (including heads of RES and operating managers), for the positions requiring long training (on the condition that these positions are taken by employees of retirement and pre-retirement age).
Special attention is given to provision of engineering and technical subdivisions with personnel reserves.
Work on youth personnel reserve development is held in order to involve young specialists in resolution of burning problems of power grid complex, improve their professional competence and assist them in their career growth. Youth personnel reserve includes the most perspective and competent employees under 35. When enlisting to the youth personnel reserve preference is given to young specialists actively participating in Company social life and having achievements in rationalization, inventive and innovative activity. As of 31.12.2013, management personnel reserve includes 1187 employees, while youth personnel reserve includes 68 employees.
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Fig. 24 Provision of IDGC of Siberia management positions with personnel reserve by the end of the reporting period,%
% 100 100
80 67 69 60
40
20
0
Executive apparatusManagement apparatuses of branches PO, RES
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Personnel reserve shall be minimally by 70% formed of key positions. As of 31.12.2013, ratio of provision management apparatuses of branches, PO and RES with management personnel reserve is less than necessary. It is connected with problems of personnel reserve forming in remote and rural areas due to deficit of qualified specialists.
Company pays special attention to development of professional competence of employees forming personnel reserves: 253 reservists were trained in specialized activity areas in exterior educational institutions.
One of the most effective ways of management competence development is performance by a reservist of head’s duties in a target position during its absence.
Corporate trainers from among subdivisions’ employees on personnel management hold business trainings in order to develop management competences: Development of Communicative Skills for Enhancement of Activity Efficiency, Effective Time Management and Effective Personnel Management. In 2013 279 members of management personnel reserve and 15 members of youth personnel reserve were appointed to higher positions.
Table 40. Assignment of reservists to senior positions
Number of reservists appointed to senior positions, persons Type of personnel reserve to target position others Management personnel reserve 129 150
Youth personnel reserve 7 8
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Work with active and perspective specialists has received a status of ongoing and developing project in IDGC of Siberia.
10.5 Social Accountability
IDGC of Siberia supports development of social partnership. The Company is a member of All-Russian Branch Association of Electric Power Industry Employers (PIE), which, on behalf of employer, participates in development and signing of Branch Tariff Agreement in Electric Power Industry. In 2013 Collective agreements made in IDGC of Siberia for 2013–2015 were in effect. Primary trade union organizations include 57% of total staff number and ensure control over observance of legal rights and interests of employees in Company branches. Relations between trade unions and employer are based on social partnership and interaction of parties in labor relations. Opinion of trade union participants, as direct representatives of an employee, is considered when developing and approving different social projects, for example, when making a collective agreement, developing standards, making decisions on industrial issues in a part of HR management, and developing programs of social and economic cooperation with regional administrations.
Non-State Pension Provision. OJSC IDGC of Siberia performs unified Program of Non-State Pension Provision, which primary target is: — providing respectable level of IDGC of Siberia employees well-being after retirement; — retention of skilled specialists and attraction of employees on positions deficient for IDGC of Siberia.
The Program is implemented on the grounds of Non-State Pension Fund of Electric Power Industry.
In 2013 priority direction of implementation of OJSC IDGC of Siberia pension programs was Supportive Program for employees,
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 194 10 Human Capital Assets and Social Accountability qualified for pension, whose work experience in electric power industry is more than 5 years. The Company at its own expense provides employees, who have over 5 years of experience in electric power industry and who terminated labor relations with IDGC of Siberia due to retiring age achieving, with additional pension.
Cultural-Mass Events and Recreative Sports. In order to develop nonmaterial stimualtion of personnel and support health of personnel directly influencing professional activity reliability, cultural-mass events and recreative sports activities are held.
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Fig. 25 Information about cultural and mass work
Number of events, ea Number of participants, persons
30 000 26 663 25 979 26 457 25 000
20 000
15 000
10 000
5 000 377 129 118 0
2011 2012 2013
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Fig. 26 Information about recreative sports work
Number of events, ea Number of participants, persons
8 000 7 000 6 718 6 000 4 890 5 017 5 000 4 000 3 000 2 000 1 000 321 113 108 0
2011 2012 2013
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In 2013 the Company took part in Winter Sports Contest of Powermen of Distribution Grid Complex held in Sochi. From June 18 till June 20, 2013 the VII Summer Sports Contest of IDGC of Siberia took place in Barnaul. From October 21 till December 6, 2013 IDGC of Siberia organized and held Children Drawing Contest dedicated to Power Engineers' Day. About 2500 children of IDGC of Siberia employees took part in the contest.
Guarantees and Compensations to IDGC of Siberia Employees. Guarantees and compensations in the field of remuneration of labor, protection of labor and employment are stipulated in collective agreements effective in all branches of IDGC of Siberia. Social guarantees and compensations are first of all realized via welfare assistance paid to employees for family reasons (birth of a child, death of relatives, etc.).
10.6 Key Measures of Efficiency
System of key measures of IDGC of Siberia management efficiency at all management levels reflects implementation of goals and purposes included in the Strategy of Electric Grid Complex Development approved by resolution of Russian Federation Government. In 2013 changes were made to key measures of Higher and Leading managers of IDGC of Siberia. Managers of directorates and departments were transferred to quarterly bonus payment. Heads of PO and RES were switched to quarterly bonus payment too. This measure enhances employees’ motivation to achieve short-term goals.
The following key measures of efficiency are introduced for IDGC of Siberia management: 1. Achieving financial result set by Company business plan;
2. Receipt (availability) of readiness certificate in time;
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3. Absence of lethal industrial accidents or group accidents involving serious injuries of people caused by nonperformance (improper performance) of duties by Company employees;
4. Level of electric loss for electrical supply;
5. Reliability of work: — Average duration of end of electric power transmission (annual); — Prevention of a bigger number of breakdowns (quarterly); 6. Turnover of receivables for electric power transmission services;
7. EBITDA;
8. Cash flow from operations control;
9. Coefficient of accomplishment of a plan on primary equipment repair;
10. Quality level of services being rendered and others.
Target values of the indices are also synchronized with goals of the Strategy of Electric Grid Complex Development.
10.7 Occupational Safety and Health
The main principle of IDGC of Siberia policy in the sphere of labor protection is securing safe labor conditions, and safety of employees’ life and health.
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Fig. 27 Information on accident rate
2011 2012 2013
12 11 10 10 10 9 8 6 6 5 5 4 4 4 3 2 2 2 2 00 0 Number of accidentsSNumber of injured persons light injuries Heavy injuries Fatal injuries
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In 2013 OJSC IDGC of Siberia increased accident rate from 4 events in 2012 to 10 events (11 injured persons) in 2013. No cases of lethal accidents were registered; coefficient of general accident rate increased from 0.2 to 0.52, coefficient of lethal accident rate is 0.
In 2013 major hazards that inflicted harm to employees included:
Electricity-related Injuries: decreased from 1 event in 2012 to 0 events in 2013;
Falling from Height: remained on the same level — 2 cases;
RTI — increased from 1 event in 2012 to 3 events (1 of which is a group one) in 2013;
Other accidents, hazards: increased from 1 event in 2012 to 4 events in 2013.
The main reasons of accidents were: traffic violation, breakdown in process; non-use of personal protective equipment; employment of a worker not according to its specialty, widening of workplace and scope of tasks, other reasons.
Loss experience inflicted by accidents and occupational diseases in the Company amounted to RUR1.02 million in 2013 which is 3.1‑fold more, as compared with 2012, when loss was equal to RUR326 thousands.
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Fig. 28 Indicators of accident rate
2011 2012 2013
0,6 0,52 0,5 0,47
0,4
0,3 0,2 0,2 0,11 0,1 00 0 Total injury frequency rate Fatal injury frequency rate
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Fig. 29 Expenses for occupational safety
thous. rub. 2011 2012 2013
450 000 409 903 423 347 400 000 350 000 344 509 302 530 310 184 300 000 250 000 243 619 200 000 150 000 100 000 50 000 0 Expenses for occupational safety, thous. rub. Expenses for providing employees with personal protective equipment, thous. rub.
In 2013 expenses for occupational safety increased by 3.28%, as compared with 2012, and amounted to RUR423.3 millions, at the same time, expenses for providing employees with personal protective equipment also increased by 2.53%, as compared with 2012, and amounted to RUR310.2 millions.
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One of the main directions of IDGC of Siberia activity in the field of labor protection is constant revision of occupational safety management system, introduction of modern methods of occupational safety management based on international standard OHSAS 18001:2007 and interstate standard ГОСТ 12.0.230–2007.
Within this direction the Company developed and implemented measures aimed at determination (identification) and elimination (restriction) of risks within the Company Standard "Hazards identification and risk assessment for occupational safety and health. Methodology". Workgroup meetings in all Company divisions considered found health risks and determined additional measures for their decrease. The Company developed and approved lists of critical risks and worked out preventive programs on injury risks for 2013 in every branch to reduce these risks.
OJSC IDGC of Siberia Program for injury risks decreasing for 2013 prescribes 114 activities, including 30 activities (20.8%) that require material costs, and 84 activities (79.2%) requiring no material costs. Expenses for Program 2013 implementation amounted to RUR450.7 millions, with RUR494.4 millions planned. Physically the Program was implemented by 100%. Material implementation of the Program amounted to 91.2% due to conduct of trade and purchasing activities leading to decrease of prices of agreements on supply of electrical protective means and special clothing.
Execution of measures of the program on reduction of injury risks enabled compliance with the rules and norms of labor protection during work of Company employees at electric installations, which resulted in absence of lethal accidents in the Company in 2013.
Assessment of Work Places. Bringing of Working Places into Line with Current Norms and Rules. Provision of Employees with Instruments, Protective Equipment and Devices. In 2013 OJSC IDGC of Siberia assessed work places for working conditions. Total number of Company working places subject
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 204 10 Human Capital Assets and Social Accountability to attestation is 17 027, 16 359 of which have been assessed. Results of the attestation have shown that 5 356 working places, where 7 658 people work, do not comply with normative requirements of work safety.
The main reasons of incompliance of working places to requirements of work safety are excess of maximum allowable norms for: noise, general vibration, intensity and burden of working process.
Employees performing their duties on working places that “do not comply with state normative regulations of work safety” are paid compensation for work in harmful working conditions, given additional leave, milk and other analogous product compensation.
Providing Employees with Instruments, Devices, Special Clothing and Footwear, Including Resistant to Electric Arc Impact. Employees are provided with personal protective equipment in accordance with approved Standards of Free-of-charge Special Clothing, Footwear and Other Personal Protective Equipment, and Company own standards "Special Clothing, Footwear, and Other Personal Protective Equipment against Thermal Impact of Electric Arc, and Other Personal Protective Equipment", "Procurable Tools, Devices and Other Protective Equipment".
OJSC IDGC of Siberia pays great attention to provision of employees with special clothing and footwear resistant to electric arc impact.
In 2013 in accordance with the said norms there were planned activities related to provision of employees with protective means, including instruments and devices for the sum of RUR349.2 mln. Actual expenses in 2013 amounted to RUR314.9 mln, such cost cutting is conditioned by decrease in prices during trade and purchase activities.
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Injury Rate of Outside Persons and Organizations. In 2013 there were 13 cases of injuries of outside persons, including subcontractors, in IDGC of Siberia electric installations, which is 23.5% less in comparison with 2012 (17 cases). Rate of lethal injuries reduced by 30.8% — from 13 cases in 2012 to 9 cases in 2013.
Main reasons of lethal injuries were unlawful acts undertaken by the third parties, such as stealing of electric power equipment, unauthorized execution of work (including unauthorized connection of electric accounting meters), uncoordinated actions when executing works in OPL protected zones, and entering electric stations with different aims.
Children and teenage injury rate amounted to 6 cases (children injuries were not registered in 2012).
These are the reasons of accidents with children and teenagers: — absence of locking devices; — performing rash acts by injured persons; — absence of proper control of children on the part of adults; — accessibility of conducting electric parts.
Growth of children and teenage injury rate took place in IDGC of Siberia branches: — Altainenergo — 2 cases with 3 injured persons; — Gorno-Altai Electric Grids, Kuzbassenergo-REG, Khakassenergo — 1 case.
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Fig. 30 Information on injury rate of the third parties
2011 2012 2013
30 28
25
20 19 17 15 13 13
10 9 6 5 5 0 0 Number of injured persons Including fatal events Number of injured children and youngsters
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In order to prevent children and third party electrical accidents at IDGC of Siberia facilities and introduction of a complex system of accidents prevention at regional and local levels, in 2013 the Program on third party injury prevention at IDGC of Siberia facilities for 2013–2015 was developed.
Action plan prescribes 35 activities, including 11 activities (31%) that require material costs, and 24 activities (69%) requiring no material costs. Planned costs for implementation of the said activities in 2013 amounted to RUR35.6 millions, actual implementation of activities in 2013 was equal to RUR36.6 millions that was 102% more than the planned costs.
All activities planned for 2013 by the Program on third party injury prevention at IDGC of Siberia facilities for 2013–2015 were performed.
10.8 Environmental protection
OJSC IDGC of Siberia to the full extent realizes its responsibility before society for environmental protection and sound environmental management in all regions of its activity.
Within its activity OJSC IDGC of Siberia influences environment insignificantly, nevertheless, the Company recognizes the impact, determined by emission into the atmosphere of pollutants from immobile and mobile sources, disposal and recycling of production and consumption wastes.
To minimize the said impact on environment, the Company is governed in its everyday work by the Federal Laws On Protection of Atmospheric Air No. 96 of 04.05.1999, On Protection of Environment No. 7 of 10.01.2002, On Production and Consumption of
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Wastes No. 89 of 24.06.1998.
JSC IDGC of Siberia has declared and applies Statement on Environmental Policy. Main directions, determined by the Company top management in a part of environmental protection, include: — continuous improvement of environmental protection activity and ecological management; — openness and availability of information about its environmental protection activities to the public; — continuous financial and organizational support of environmental policy; — regular analysis of Company impact on environment, recording of such analysis results for establishment and restatement of environmental tasks and goals; — staying within prescribed exposure limits; — providing reliable and eco-friendly transport and distribution of energy.
To implement its Environmental Policy, the Company developed and approved in each branch and executive apparatus Programs of Environmental Policy Implementation for 2011–2015, which determine primary goals, tasks and primary activities in environmental protection and providing ecological safety for a long-term period.
Environmental payments for IDGC of Siberia in general amounted to RUR2.1 mln in 2013, which was 10,7% more than in 2012. One of the reasons causing increase of payments are growth of the coefficient taking account of inflation, as well as development of supplementary design normative documents, and payment of state fees related to changes of RES branches’ structure.
Total amount of wastes produced in 2013 was 3 997,6 tons, which was 2.6% less than in 2012. In 2013 3696,9 tons of wastes were transferred to other organizations, 217.9 tons were salvaged and 1.433 tons were disposed.
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Fig.31 Dynamics of payments for negative impact on the environment, thous.rub.
тыс. руб. Payment for air Payment for water Payment for mineral resources
2 500
2 000
1 500
1 000
500
0
2011 2012 2013
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Table 41. Most important activities on environmental protection
Expenses, Name of activity thous. rub. Development of regulatory and design documentation 2896,5
Carrying out manufacturing supervision of pollution emissions to atmosphere, rain-storm runoff 1455,9 analysis
Monitoring of ground waters on drilling holes 229,9
Assessment of groundwater operational resources 2869,8
Purchasing bird guards 2130
Purchasing containers for collection and temporary storage of industrial wastes 1045,3
Transfer and disposition of waste waters 849,2
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IDGC of Siberia developed a schedule of decommissioning and salvage of equipment containing PCB for 2011–2025.
In 2013 the Company made agreement with CJSC “Zeleny Gorod” and performed work on salvage of equipment containing persistent organic pollutants — poly-chlorinated biphenyls- in the amount of 438 pcs. (25.3 tons) for the sum of RUR1.4 mln: — in Buryatenergo branch — 9.1 tons; — in Chitaenergo branch — 16.2 tons.
In order to observe legal requirements on fauna protection, in accordance with Federal Law No. 52‑FZ dated 24.04.1995 On Fauna and implementation of the schedule for 2013, activities on installation of bird guards on 6–10 kV HV lines were performed. In 2013 the Company bought and installed 5 064 sets of bird guards for the sum of RUR2.13 mln.
Current expenses of IDGC of Siberia for environmental protection in 2013 amounted to RUR16.1 rub.
Table 42. Dynamics of environmental expenses
Current expenses for environment protection, Branch name thous.rub. 2011 2012 2013 Altaienergo 1736,6 2512,9 2265,8
Buryatenergo 3703,7 676,8 2887
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Current expenses for environment protection, Branch name thous.rub. 2011 2012 2013 PSPP 357,8 1568,9 788,4
Krasnoyarskenergo 3970,6 3205,2 3721,3
Kuzbassenergo-RES 5673,1 2151,4 1508,4
Omskenergo 835,7 1364,5 1445
Khakassenergo 1520,5 1284 1138,4
Chitaenergo 1664 1009 2151,5
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Current expenses for environment protection, Branch name thous.rub. 2011 2012 2013 Management apparatus 506,9 249 212
Total for IDGC of Siberia 19968,8 14021,7 16117,8
Increase in expenses is related to performance of works planned under the schedule of PCB salvage.
Application of Perspective Technologies and Solutions (Eco-oriented) at Transport and Electric Power Distribution. According to OJSC IDGC of Siberia Engineering Policy Regulation, one of Company’s strategic goals is minimization of impact on environment from construction, reconstruction, maintenance and repair of electric power facilities.
At present the Company uses self-supporting insulated wires in reconstruction or new construction of 0,4–10 kV OPL. Application of the said technology allows cutting down trees and bushes during constructing and further maintenance of OPL in minimum volumes, that can practically exclude negative impact on environment. OJSC IDGC of Siberia provides eco-safety when constructing OPL using self-supporting insulated wires for birds’ protection.
Replacement of oil-poor circuit breakers by vacuum ones made it possible to increase reliability of power grids operation and to reduce negative exposure to the atmosphere by way of exception of oil product spilling on relief.
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Information on Development, Introduction and Certification of Environment Management System with Reference to Require- ments of ISO 14001 International Standard. Company activity in the sphere of ecology and environment protection in accordance with requirements of ISO 14001 International Standard was begun in 2010 and still remains an priority direction in the environment management system.
Efficiency of the environment management system is proved by results of internal environmental audits and audits of an integrated quality management system.
10.9 Forecast of Emergencies at Distribution Grid Complex Facilities for 2014
Man-made emergency situations, not higher than of local and municipal level, are possible on step-down substations of 35kV and higher and on line transformers of all classes in case of wrong actions of personnel and influence of external adverse factors of hydrometeorological phenomena both on substations and power transmission lines.
Natural emergency situations. Due to absence of forecast from services on monitoring of natural environment for the coming year, an emergency situation forecast has been made according to lasting observations.
On the territory of IDGC of Siberia area of responsibility the following phenomena are possible in 2013:
— severe frost (period — December, January; territories — the Zabaikalye Territory and northern regions of the Republic of Buryatia and Krasnoyarsk Region);
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— blizzards (period — January, February; territories — the Altai Territory); — flooding of territories during spring flood (period — April, May; territories — the Altai Territory, the Kemerovo Region, southern and central territories of the Krasnoyarsk Region, and the Republic of Khakassia); — landscape (natural) fires (period — April, May; reason: agricultural fires; territories — the Zabaikalye Territory, the Republic of Khakassia, the Altai Territory, southern and central territories of the Krasnoyarsk Region; period — July, August; reason: dry storms; territories: central and northern territories of the Krasnoyarsk Region, northern territories of the Republic of Buryatia and the Zabaikalye Territory; period — September; reason: agricultural fires; territories: the Zabaikalye Territory, the Republic of Khakassia); — flooding of territories because of heavy precipitation (period — June, July, August; territory — the Republic of Buryatia); — strong (hurricane) wind (period — June, July; territories — the Kemerovo Region, southern and central territories of the Krasnoyarsk Region).
Number of possible unfavorable conditions that in case of combination of negative influencing factors may lead to emergencies: up to 4 in Krasnoyarskenergo branch; up to 2 in Buryatenergo; up to 2 in Kuzbassenergo-RES; up to 3 in Altaienergo and up to 4 in Chitaenergo.
Man-made emergency situations. Operation of power complex systems may be disturbed because of stealing at power lines. Another source of emergences is deterioration of technological equipment.
IDGC of Siberia organized work on liquidation of technological violations in accordance with Company standard “Organization of
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 216 10 Human Capital Assets and Social Accountability works on prevention and liquidation of technological violations and emergencies in a power grid complex. Procedure”.
Main requirements of the Procedure: — In case of liquidation consequences of emergencies resulting in disconnection of consumers or high risks of interruption of consumer supply in post-fault plans, emergency recovery works shall be performed and completed as soon as possible, including by means of around-the-clock work per shifts. — In case of emergency branches shall secure commencement of work on its liquidation within 2 hours after receipt of information by operation staff. — In order to reduce time of consumer supply recovery (especially when liquidating mass violations), consumers are supplied with temporary electric power using secondary power supply resources prior to conduct of main emergency recovery work in 0.4–20 kW grids, if time for preparation and connection of secondary power supply sources is considerably less than time necessary for consumer supply recovery according to a normal or fallback circuit.
Moreover, in order to minimize time necessary for liquidation of serious technological violations at power grid complex facilities leading to mass disconnection of population, socially important facilities, vital infrastructure and big industrial consumers, branches developed and approved lists of special control facilities: 143 HV lines and 153 substations of 35–10 kv. Liquidation of serious technological violations at special control facilities is performed in accordance with developed planned including schedules of emergency recovery works and operative reaction cards marking special control facility on a map, indicating basing sites of mobile emergency repair and restoration brigades and areas of responsibility during conduct of works on the facility, as well as emergency stock, equipment and length of approach roads.
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11.1 Communication with Public Authorities and Social Organizations
One of the main tasks of IDGC of Siberia is timely establishment of effective communication with state authorities and public organizations.
In 2013 the Company has been actively collaborating with Civil Defense and Emergency Situations press centers, Ministry of Internal Affairs, state government bodies of constituents of the Russian Federation, municipalities and deputy bodies on the territory of Company presence.
On November 29, 2013, with active participation of IDGC of Siberia, JSC Russian Grids and Government of the Zabaikalye Territory signed an agreement on cooperation. The solemn ceremony was held within the frames of the joint Meeting of the Council in the presence of authorized representative of RF President in the Siberian Federal District and Council of the Interregional Association of Economic Cooperation between RF constituents “Siberian Agreement” devoted to development of Siberian power grid complex. Implementation of this agreement will enable increase of power supply reliability in the region and create conditions for connecting of new consumers.
11.2 Public Relations
Priority direction of Company activity in 2013 was prevention of non-accountable and non-contractual power consumption on the territory of IDGC of Siberia servicing. During this year regional and district mass media published materials describing punishments awarded to particular people for power stealing and informing on consequences of this antisocial action. Records
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 219 11 Public Relations, Relations with Public Authorities and Mass Media, Congress and Exhibition Activities placed on the radio and TV were aimed at involving law abiding citizens into fight with power stealing and making people understand that stolen kilowatts is not an innocent economy but social wrecking. This goal was achieved. Steady growth of a number of calls to the helpline 8–800–1000–380 is indicative of it. 718 messages from citizens were received during the past year with information on supposed power stealing cases, which is 1.6‑fold more than in 2012.
In summer 2013 posters were made and placed in public places in order to warn power stealers of danger of giving bad examples of dishonest behavior to the younger generation — their children. If a child watches his/her dad regularly breaking a law, he/she may think that this is a norm of life, while such a “norm” is a step to violation of law and imprisonment.
A problem of power stealing was covered in mass media from different points of view. Tragic cases of people’s death as a result of unauthorized intervention in power equipment operation in order to reduce amount of payment for electricity, also became a newsbreak for another public involvement into the problem. At the beginning of the year two bright banners were made in order to prevent accidents and to remind people that power stealing can become a reason of people’s death. The banners were placed in district newspapers on the territory of Company servicing.
In March 2013 IDGC of Siberia PR-program on prevention of non-accountable and non-contractual power consumption was included in the short list of a contest of PR-projects “KonTEKst”, annually held with the assistance of Russian Ministry of Energy.
From June 27 till June 30, 2013 IDGC of Siberia organized the first power car run across cities of Krasnoyarsk Region devoted to 50th anniversary of electric system in the region. Within the frames of the car run power festivals were held on main city squares of Achinsk (territory of PO “Zapadnye Electricheskie Seti” presence) and Sharypovo (territory of PO “KATEKelektroset”
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 220 11 Public Relations, Relations with Public Authorities and Mass Media, Congress and Exhibition Activities presence). Organizers of the power festival created open air sites on power efficiency and power safety, and held an exhibition of specialized powerman automotive equipment. 1500 people participated in the festivals of these two largest cities in the region. Power car run was widely commented in municipal mass media.
In the reporting period work on implementation of the Program of public and informational activities aimed at third party injury prevention at power grid facilities of JSC IDGC of Siberia, within the frames of JSC “Russian Grids” Program. Thus, the Company issued an order On approval of PR-program “Prevention of third party electric injury at IDGC of Siberia facilities, JSC Tyvaenergo”. Within implementation of this local act in November-December 2013 a contest of children posters called “In the Country of Safe Electricity” was held. The contest was held on the territory of Altai, Zabaikalye and Krasnoyarsk Regions, the Republics of Buryatia, Tyva and Khakassia, and in Omsk and Kemerovo Regions. About 2500 posters of participants from villages, settlements and cities of 8 regions of Company presence were received by regional organizing committees. Representatives of regional ministries of education and main directorates of Russian Ministry of Emergency Situations acted as co-organizers of the contest.
11.3 Interaction with Mass-Media
In 2013 The Company actively developed informal communication means using a microblog service, twitter. All branches of IDGC of Siberia maintained a news channel with references to their websites, which enabled a user community to get a complete idea of Company information activity. The Company also conducted work on keeping of blogs devoted to power cutoff and HR issues. Moreover, there appeared representative offices of IDGC of Siberia in popular social networks: facebook.com and vkontakte.com, securing prompt publication of information in newsfeed (main mews and points of discussion of the Company).
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Cooperation with leading federal, regional and district socio-political, specialized and branch mass media was continued.
In 2013 corporate newspaper “Power Industry of Siberia” devoted to corporate PR was published. 5 issues of the corporate newspaper were published. A pilot project on publishing of thematic informational micro-editions of A6 format has been started; its target audience is all Company employees: from regions with electric grids and production departments to branches and executive apparatus of IDGC of Siberia. All types of the printed goods complement each other with cross-references and advance advertisements, thus, all together forming an intracorporate public opinion. 9 micro-editions on Company activity were published in 2013.
11.4 Congress and Exhibition Activity
One of the main aspects of IDGC of Siberia strategic development is conduct of its congress and exhibition and international activity.
In 2013 examples of such activity were effective participation of IDGC of Siberia in X Krasnoyarsk Economical Forum “Russia: a Map of Change”, IV International Electric Power UPGrid Forum “Power Grid Complex. Innovations. Development 2013” and Siberian Energetic Forum.
Implementation of youth policy via participation in special educational projects is another important element of the Company. In 2013 “Energopolis” event held within the frames of the Innovative Forum of Young Powermen “Forsazh‑2013” was such a project. It was organized by “Rosatom” state corporation with the assistance of the International Association of Corporate Education and Rosmolodezh. Five young specialist of IDGC of Siberia acting within a picked team took the first place for project
ANNUAL REPORT of OJSC IDGC of Siberia on performance | 2013 222 11 Public Relations, Relations with Public Authorities and Mass Media, Congress and Exhibition Activities defense on a topic “Arrangement of Environment for Search of Principally New Energy Types”. Thus, there appeared a new perspective for forming a positive image of IDGC of Siberia not only in Russia but also among an international alliance of power companies.
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12.1 Regulatory Control and Principles of Organizing Procurement Activities
The main normative document regulating Procurement activity of IDGC of Siberia is Provision on Procurement of Goods, Works and Services approved by JSC IDGC of Siberia Board of Directors on 21.06.2013 (Minutes No. 123/13). The Provision is developed for the purpose of Federal Law No. 223‑FZ dated 18.07.2011 On Procurement of Goods, Works and Services by Separate Types of Legal Entities” and regulates procedures for procurement of goods, works and services (products) irrespective of their cost.
The main principles of performance of IDGC of Siberia procurement activity are the following: 1. market analysis;
2. timely planning of production requirement;
3. securing possibility of prompt making of decisions on adjustment of procurement parameters (when necessary) based on Company Central Control Commission decision;
4. informational availability of procurement;
5. equality, justice, nondiscrimination and absence of unjustified competence limitations in relation to procurement participants;
6. honest and reasoned choice of most desirable offers during complex analysis of adding and subtracting (of product price and quality first of all);
7. target and economically efficient use of money for procurement of goods, works and services;
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8. absence of limitations for participation in procurement by means of introducing very complex requirements to procurement participants;
9. availability of regulating sphere;
10. availability of a well-established procurement infrastructure (informational support, e‑commerce means, certification and professional advisors);
11. availability of trained personnel for procurement;
12. observation of corporate uniformity of procurement rules;
13. securing availability of procurement activity;
14. application of modern IT, means-of e‑work flow and procurement activity automation, including use of e‑trading floor functional;
15. collegial decision-making on most important issued of procurement activity organization in general and for separate procurements in particular.
12.2 Procurement procedures
The Company uses the following methods of procurement: Competitive tender
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Depending on a possible participant range a competitive tender may be open or close.
Depending on a form of holding a competitive tender may be held using paper media or in e‑version.
Depending on a number of stages a competitive tender may be single-, two- and multiple-staged.
Depending on availability of a procedure of preliminary qualification selection a competitive tender may be held with or without preliminary qualification selection.
Auction Depending on a possible participant range an action may be open or close.
Depending on a form of holding an auction may be held using paper media or in e‑version.
An action may be only single-stage.
Depending on availability of a procedure of preliminary qualification selection an auction may be held with or without preliminary qualification selection.
Post-qualification and a right to alternative offering are not implied during holding an action.
An auction is held for procurement of products having an operating market and in regard to which its initiator has formed detailed requirements in a form of a technical assignment. The Central Procurement Body is entitled to set a list of products purchased based on results of an auction.
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Request for Quote Depending on a possible participant range a request for quote may be open or close.
Depending on a form of holding a request for quote may be held using paper media or in e‑version.
Depending on a number of stages a request for quote may be single-, two- and multiple-staged.
Depending on availability of a procedure of preliminary qualification selection a request for quote may be held with or without preliminary qualification selection.
In case of procuring especially complex products, a request for quote may be held using special procedures for procurement of complex products.
A request for quote is held in case of fulfillment of at least one of the following conditions: — there is no time for holding of a contest or its holding is not reasonable for some important reasons, however, there are no circumstances requiring immediate procurement from a single supplier (executor, contractor), and level of product complexity or conditions of its delivery do not permit holding an action and requesting for quote; — it is necessary to negotiate with participants, while use of a two- and multi-staged competitive tender is not reasonable in regard of time required or for other important reasons; — when a supposed procurement amount does not exceed RUR10 mln (including VAT); — procurement of design and survey works on construction, technical re-equipment and reconstruction of power grid facilities necessary for execution of measures on technological connection is performed;
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— procurement of works on power grid facility engineering for the sum of less than RUR100 mln (including VAT) is performed.
Request for Price Depending on a possible participant range a request for price may be open or close and also following the results of an open competitive procurement procedure, after which a frame agreement (contract) is signed.
Depending on a form of holding a request for price may be held using paper media or in e‑version.
A request for quote may be used when procuring usual products having an operating market. The only criterion is price, provided that an agreement price does not exceed RUR5 mln (including VAT) for an open request for price and there is no time for holding an auction.
A request for price based on results of an open procurement procedure may be held regardless of an initial (maximum) agreement price (lot price), provided that suppliers with whom frame agreements are made are involved in such a request for price.
It is prohibited to procure complex or unique equipment by means of a request for price.
Competitive Negotiations Depending on a possible participant range competitive negotiations may be open or close.
Depending on a form of holding competitive negotiations may be held using paper media or in e‑version.
Depending on availability of a procedure of preliminary qualification selection competitive negotiations may be held with or without preliminary qualification selection.
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Competitive negotiations are held during purchasing especially complex products, when it is necessary to negotiate with participants, and a two-staged competitive tender or quotation for request are not reasonable in terms of time costs or for other reasons.
Usual Procurement Usual procurement are held only if Customer’s revenue for a reporting financial year is more than RUR5 mln, this method of procurement is not implied for other cases.
Depending on a possible participant range usual procurements may be open or close.
Depending on a form of holding usual procurements may be held using paper media or in e‑version.
Usual procurements are held for sums from RUR100 000 to 500 000 including VAT. A usual procurement may be held by the decision of Customer for a sum less than RUR100 000 including VAT.
Usual procurements may be held in case of fulfillment of at least one of the following conditions: — presence of exactly formulated technical requirements to products being purchased, including functional characteristics (consumer properties) of a good, sizes, package, and dispatch, specific requirements to results of works (services) are set in a form of a technical assignment; — absence of time necessary for conduct of another competitive tender.
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Small Procurements Small procurements are held for sums less than RUR 100 000 including VAT.
Small procurements may be held in case of fulfillment of at least one of the following conditions: — presence of exactly formulated technical requirements to products being purchased, including functional characteristics (consumer properties) of a good, sizes, package, and dispatch, specific requirements to results of works (services) are set in a form of a technical assignment; — absence of time necessary for conduct of another competitive tender.
Procurement from a Single Supplier (Executor, Contractor). More detailed information on procurements is given on the Internet: http://www.mrsk-sib.ru/purchasing/Pages/default.aspx
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