ANNUAL Report 2011
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ANNUAL REPORT 2011 ENERGY OF LIFE APPROVED BY: Annual general meeting of shareholders of “Grid Company” OJSC June 18, 2012 Minutes No.26 dated June 20, 2012. Preliminary approved by Board of Directors of “Grid Company” OJSC May 14, 2012 Minutes No.11/2012 dated May 16, 2012 TABLE OF CONTENTS: Statement by the Chairman of Board of Directors of «Grid Company» OJSC 3 Statement by the General Director of «Grid Company» OJSC 4 Company’s Mission and Strategic Targets 7 Key Events – 2011 11 1. General Information about Company 19 2. Equity Capital 33 3. Corporate Governance 39 4. Financial and Economic Activity 59 5. Social Responsibility 79 6. Productive Activity 95 7. Annexes 137 Provision of overheating of our economy has become First steps were taken for development of “Regional possible owing to innovative development of high-quality intellectual network in the Republic of Tatarstan” strategic and knowledge-intensive production, intensification of Project. This innovative project would permit to decrease interrepublican and interregional cooperation, setting-up significantly the length of cable links, to increase many times of technological and industrial parks. A variety of major the precision of energy accounting measurements and to ORT industrial projects has been successfully implemented; provide high-noise immunity and ecological friendliness P results-oriented preparation for holding the largest world of equipment. RE sports forums is being carried out at full pelt — 2013 Summer Universiade and 2018 FIFA World Cup. Thus, our Summarizing the activity for 2011, it is necessary to note Republic has buttressed its positions more as one of the that positive results have been attained in all the areas of ANNUAL most dynamically developing subjects of the Russian the Company’s production operation. It is necessary herein Federation. It managed to attain such high performance to pursue traced course aimed at rising administrative also at the expense of steadily functioning electrical grid effectiveness, capitalization growth and implementation infrastructure. of socially important programs. Within the framework of execution of the Republican program on energy saving and «Grid Company» OJSC is developing in compliance with efficiency upgrading for 2011-2015 we expect to perform 3 the strategy of reforming of electric power system of a large amount of work aimed to reducing energy loss in Tatarstan, directed to setting-up of stable power supply process of transportation in the mains. DEAR system by forming investment-attractive and competitive companies. ompany’s Board of Directors and staff operate Development of network infrastructure, improving of SHAREHOLDERS! being completely aware of the fact that progressive advance quality and reliability of services rendered, work serving of the prime sectors of economy is impossible without consumers’ interests should remain key principles of the Tatarstan of nowadays is one of the regions, where the reliable and high-quality functioning of electricity supply Company’s activity. issues of keeping and all-round development of the network complex. 2011 economy are being consistently solved. The projects in The priority strategic target of the Company for 2012 is the sphere of oil refining, petrochemistry, energetic, aircraft In the accounting year the Company’s Management directed careful scheduling and full-scale implementation of building, automobile production, instrument engineering its efforts to handling of such problems like improvement investment program in compliance with the development are being successfully implemented in our Republic. The of reliability of power-supply system of the Republic, thrust of the Republic. Republican enterprises take a noteworthy place in the world mobilization of complementary investments and innovative differentiation of labor, both in the sphere of extractive and development. I wish you fruitful work and further success. manufacturing activity. Prime Minister of the Republic of Tatarstan, Chairman of Board of Directors of «Grid Company» OJSC I.Sh.Khalikov y” OJSC AN MP O C D I R “G DEAR SHAREHOLDERS! 4 The Republic of Tatarstan is one of the most energy- During 2011 legal entities and individuals submitted 16 546 consuming regions of the country with the great number applications for technological connection, over 13 thousand of industrial facilities on its territory, such as facilities of oil contracts have been executed, among them 12.7 thousand production, petroleum chemistry, petroleum processing contracts with legal entities and individuals for linked up and other industrial facilities. In this connection the main power up to 15 kW. In 2011 the operations related to the objective of all the enterprises of electric power industry, connection to the electrical grid infrastructure of OSJC including «Grid Company» OJSC is continuous and high- “TANEKO” network of petrochemical and petroleum refining quality provision of consumers with electric power, as well plants of 159.9 mW aggregate capacity have been completed. as timely connection of applicants to network infrastructure. ENERGY OF LIFE In 2011 the Company successfully dealt with the task. Last year the Company performed a large amount of work on commissioning of new facilities and reconstruction and In 2011 the scope of services on power delivery made 21.7 modernization of the existing ones. Totally the Company billion kWh, overall power of consumers’ power receivers utilized 4.9 billion rubles over the year. To comply with connected to the Company’s electrical networks during the advanced development of the Republic the Company the year made 321.7 mW. carries out large-scale re-equipment of the mains, for instance by developing electricity supply network complex of Nizhnekamsk power district. ORT P RE ANNUAL In the build-up to the APEC Summit in 2012 and 2013 Resource-2011" and XII “Energy Efficiency and Energy participation in implementation of “Cultural Heritage of Summer Universiade, the reconstruction of the power Saving” International Symposium, the Company Tatarstan” Global Project. supply network facilities of Kazan power district was was awarded the diploma for active participation in carried out: in the branch of "Kazan Electric Networks implementation of long-term programme “Energy Saving Development of network infrastructure, increase of quality 5 "Company the works on complete reconstruction of Gorki and Energy Efficiency Upgrading” Program in the Republic and reliability of services rendered, the work in the interests substation, reconstruction of Sovetskaya and Krylovka of Tatarstan for 2010-2015 and for long term till 2020”, of consumers have always been and remain the basic substation have been carried out, the operations at 500-kV as well as by 1st degree Diploma in accordance with principles of the Company’s staff activity. Kinderi substation, 500kV OL ZaiEMCZ – Kinderi, 110 kV the contest results “Energy-efficient Equipment and OL - Central Eastern are being continued; the operations Technologies” nominated “The Best Debut in Power The top-priority tasks of the Company for 2012 are as follows: on complete reconstruction of 220kV substation Central Engineering” of “Digital Substation” Project. development of distinct standards of forming of investment have been commenced; "Privolzhskie Electric mains”, “Grid program, Company’s operating activities efficiency Company” have completed reconstruction of Airoport and The Company’s social policy was also recognized. Last upgrading, introduction of integration management system 2011 Tura substations; "Naberezhno-Chelninskie Electric mains" year the Company received the occupational health and and mastering of lean manufacturing system. The special carried out reconstruction of the third stage of Sidorovka safety management system certificate of conformance attention shall be paid to transmission arrangement in the backbone substation; "Nizhnekamskie Electric mains" have with the requirements of the International Standard Republic for the 2013 Summer Universiade, to reconstruction completed reconstruction of Gorodskaya SS, 220kV OL OHSAS-18001-2007 and GOST 12.0.230-2007 (ILO-OSH and renovation of distribution mains, equipping of power Zainskaya EMCZ – Nizhnekamsk. 2001). The Company became a prizewinner in “For Efficient facilities with automated electric power metering systems, Ecological Management” nomination in “ECOleader” implementation of the actions within the Republic Program In 2011 according to results of “Resource Efficiency. Republican Contest, was acknowledged one of the winners for energy saving and energy performance upgrading for Energy Saving” Republic competition, the official of “Charity Provider of the Year” Contest, was awarded 2011-2015. results of which were drawn up within the framework a letter of appreciation of the Republican Foundation for of the XIII International Specialized Exhibition "Energy. Historical and Cultural Monuments Restoration for active General Director of “Grid Company” OJSC I.Sh.Fardiyev COMPANy’S MISSION AND StrategIC ORT P TARGETS RE ANNUAL What attracts one’s attention in the architectural panorama of any ENERGY OF city? Perhaps, bridges do. “Millennium” is the highest bridge in Kazan 7 — it was named so in honor of the millennium anniversary of the MOTION capital of Tatarstan. The first letter of its name “M” (more than 45 meters high and 64 meters from foundation to cap) is implemented in the style of a pylon and it is thank to it that Kazan bridge may not be confused with