ANNUAL REPORT • 2013 Annual Report 2013
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ANNUAL REPORT • 2013 Annual report 2013 APPROVED BY: Annual general meeting of shareholders JSC “Grid Company” June 27, 2014 Protocol No. 32 of July 1, 2014 PRELIMINARILY APPROVED BY: Board of directors JSC “Grid Company” May 24, 2014 Protocol No.12/05-2014 of May 27, 2014 TABLE OF CONTENTS Appeal of the chairman of the board of JSC “Grid Company” . 4 Appeal of Director General of JSC “Grid Company” . 6 1 . Highlight figures and key events of 2013 . 8 2 . General Information about the Company . 16 3 . Analysis of financial state and results of the company’sactivities . 28 4 . Production activity . 40 5 . Investment activity and innovation development . 56 6 . Corporate management . 66 7 . Control, audit and risk management system . 82 8 . Human resource policies and social responcibility . 90 9 . Schedules . 106 Book-keeping (financlal) statement of jsc “grid сompany” for 2013 according to russian accounting standards . 108 Data on compliance with corporate code of conduct . 116 List of transactions considered according to the federal law “On joint-stock companies” transactions with a self-interest and approved by the Company’s management bodies in 2013 . .124 List of transactions considered according to the federal law “On Joint-Stock Companies” significant transactions and approved by the Company’s management bodies in 2013 . 131. Glossary, abbreviations . 132 4 I.SH. KHALIKOV TO THE SHAREHOLDERS THE TO KHALIKOV I.SH. Dear shareholders! The Republic of Tatarstan is the top performer among the regions of the Volga Federal District according to the total rat- ing of the socioeconomic index . Tatarstan ranks the first among the regions of the Volga Federal District for its GRP, per person including, and the industrial output . The persistent and conse- quent resolution of the issues of maintaining and all-round de- APPEAL OF THE CHAIRMAN OF THE BOARD OF JSC“GRID COMPANY” velopment of the real economy, successful implementation of the projects of federal and republic significance are part and parcel of the reliable functioning and dynamic advancement of the network complex of the Republic of Tatarstan . The operating results gained by the JSC “Grid Company” in 2013 are the evidence of the successful solution of the assigned tasks and the progressive development of the Company . In 2013 the Company was implementing the large-scale investment plan oriented to the modernization of the network based on the application of the modern equipment and tech- nologies to favour the development of the network complex of the Republic of Tatarstan and the national task of the en- hancement of energy efficiency and savings . The Company has finished the construction of the largest for the last 50 years network object in the Republic, namely the Shchelokov Substation 500 kV, which will provide the consumers insur- ing the economic well-being of the Republic with the primary 5 2013 ANNUAL REPORT ANNUAL reliability rating . To provide reliable high-quality power supply The enhancement of the customer-oriented approach and to the consumers of the industrial and municipal area of Na- introduction of innovation technologies, including the project “Re- berezhnye Chelny, western part of Almetievsk and Vysokogor- gional Smart Energy Network at the JSC “Grid Company”, were sky region the reconstruction of the Promkomzona, Gorods- the priorities of the Company in the past year . kaya, Vysokaya Gora substations of 110 kV was undertaken The successful achievement of the Company’s goals was as- which opens the potential for the long-term growth of these sured by the efficient collaboration and cooperation of the Com- regions . As a result of the reconstruction the capacity of the pany’s Board of Directors and its management, along with the autotransformers at the Central substation of 220 kV which is qualified and fruitful work of the Company’s staff . the Kazan tie-station providing with energy the southern part The enhancement of the reliability of the power supply of the of the city doubled . Republic of Tatarstan, new technologies introduction, energy ef- The actions undertaken in the framework of the develop- ficiency advancement and the customer-oriented approach will ment of the Kazan network assured the high-quality uninter- remain the priorities of the Company in the near-term outlook . rupted power supply of the Universiade 2013 facilities, which Steadily functioning and growing network infrastructure will guar- was an important event of 2013 making history not only the antee the high tempo development of the Republic economics . Republic but the country on the whole . The Republic of Ta- On behalf of the Board of Directors of the JSC “Grid Com- tarstan, thanks in large part to its power engineering special- pany” I sincerely thank to the management and all the team of the ists confirmed its high public profile and thus demonstrated Company for their high performance and efficient skillful activity in that it is prepared to host in Kazan the coming global scale 2013 . I am confident that in 2014 as well the Company staff will events – 16th FINA world championship in 2015 and 2018 manage the tasks of reliable and high-quality functioning of the FIFA World Cup . power network complex of the Republic of Tatarstan and inno- The growth of power consumption and large-scale pro- vation advancement and efficient performance of the Company . jects like the construction of Kazan’s satellite innovation towns – Science City Innopolis and Smart City – dictate the solvation Prime Minister of the Republic of Tatarstan, of new tasks . The success of this development will directly Chairman of the board of directors of JSC “Grid Company” depend on the teamwork of the Company . I.Sh.Khalikov 6 I. SH. FARDIEV SH. I. THE TO SHAREHOLDERS Dear shareholders! In recent years the Republic of Tatarstan ranks among the most economically efficient regions of the Russian Fed- The JSC “Grid Company” is one of the largest power net- eration . The Republic’s strategy aimed at its stable develop- APPEAL OF DIRECTOR GENERAL OF JSC“GRID COMPANY” work companies, functioning in the Volga region and infra- ment is in accord with the Compnay’s Investment program of structural company of the Republic of Tatarstan, presenting 2013-2015, targeting at fulfilling the tasks of the development more than 90% of the power transmission market . of the republican electric power network and the national The hosting of the 2013 Universiade became one of the task to enhance energy efficiency saving . In the framework key events of the Republic . The mission of uninterrupted and of the measures taken by the Company to provide power reliable supply of the Universiade facilities entrusted to the safety and emergency vulnerability reduction of the power Company has succeeded . supply network facilities, to enhance the reliability of the The results gained by the Company in 2013 are the evi- power supply to the consumers of the Republic, prospective dence of its dynamic development and successful realization development of the power network complex of Kazan region of the primary spheres of activity . there is the reconstruction of the Central Substation 220 kV, The scope of power transmission services provided by construction of the cable-overhead line of the Kutlu-Bukash- the Company to the consumers of the Republic of Tatar- Central 220 kV . The company finished the construction of stan was 22,6 billion kW-h, i .e . 180 million kW-h more than the largest project of 2013, Substation Shchelokov 500 kV it was the year before . The Company has received more (named after the prominent power engineering specialist than 23 thousand applications for technological connec- Jury Shchelokov), which provided the residents of the Spe- tion of the power receivers to the power network, with to- cial economic zone of the JSC “Alabuga” with additional 250 tal maximum capacity of 1 456,4 megawatt . The growth of mWt of electric power of the top reliability rating . The Com- the applications reached 13,3% in comparison with 2012 . pany is implementing the global reconstruction of the Kinderi More than 20 thousand contracts of technological connec- substation 500kV which will have been finished in 2016 . The tion were signed to provide a total of 741,2 mWt, which Central, Promkomzona, Vysokaya Gora substations were put is 9,4% more than in 2012, with a total of 17,7 thousand into operation after their reconstruction . Overall reconstruc- contracts fulfilled to provide a total of 580,2 mWt, which is tion of the Bolghar substation 110 kV completed the innova- 8,5% more than in 2012 . tion of power supply facilities of the State Bolghar historical 7 2013 ANNUAL REPORT ANNUAL and architectural conservation area . All in all in the framework naya 110 kV (Kazan), substation BCE 110 kV (Naberezhnye of capital construction and reconstruction more than 3 000 Chelny), construction of the HV line 110 kV – network 1 and objects were put into operation in 2013 . On the whole the 2 Toima 2 – 2 Distribution point -1 SEZ “Alabuga”, construc- capital investment into the enhancement of the power net- tion design of the Shchelokov-Central HV line 220 kV . Such work of the Republic reached more than 8 billion rubles . works as construction of the Sviyazhsk-Innopolis and Isak- The evidence of the Company’s stable position is the A++ ovo-Innopolis aerial-cable line 110 kV, reconstruction of the rating of creditworthiness assigned to the Company by the substation Sviyazhsk 110 kV are interconnected with the Rating Agency “Expert RA”, confirming the high probability of creation of the external power supply network of Kazan’s in- the Company’s repay its medium-term obligations . novative satellite town science city Innopolis . The current targets of the Company are innovation tech- Among the other priorities of this year are the switching nologies .