Formula for
Reliability
Cooperation
Governance
+
Technology
+
Infrastructure
+
Strategy
Federal Grid
Company
of Unified
Energy System
Annual Report
2014
Federal Grid Company’s formula for reliability is based
on four key components: infrastructure, technology,
governance, and cooperation. Once effectively applied
and continuously developed, those components help us
successfully implement our strategic business priority –
ensuring reliable and uninterrupted supply of electricity to
customers across Russia.
The Annual Report was preliminary approved by the Board
of Directors of Federal Grid Company,
Minutes No. 267 dated 25.05.2015.
Chairman
of the Management Board
A.Murov
СтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсонал
Federal Grid
Company today
• Federal Grid Company is
a unique infrastructure
company that provides
reliable and uninterrupted
electricity transmission
through backbone electric
grids in the Russian
Federation
• The Federal Grid Company’s
key activity is managing the
Unified National Electric
Grid (UNEG) that includes
a network of transmission
lines covering most of
Russia1
• Federal Grid Company is a
world leader among public
electric grid companies
in terms of the length of
electricity transmission
lines and transformer
capacity
• Federal Grid Company
is a customer-oriented
company that ensures high
standards of customer
services and stakeholder
engagement in order to
maintain sustainability of
the long-term development
• The Company ensures
reliable, uninterrupted and
safe supply of electricity
to customers through
continuous investments
in modernising and
expanding the electric
power infrastructure
using advanced innovative
technologies, and by
improving anti-terrorism
and anti-crime measures,
as well as enhancing
economic and information
security of the Company
• Federal Grid Company
is a natural monopoly
in the area of electricity
transmission and is included
in a list of systemically
important organisations of
strategic importance to
Russia
• Federal Grid is a public
company; its securities
are traded on Russian and
foreign stock markets,
including the Moscow Stock
Exchange and the London
Stock Exchange
• The Company’s major
shareholder that owns
80.13% of its common stock
is the state-owned company
Russian Grids (Rosseti)
• Federal Grid Company
was established in 2002,
in accordance with the
Russia’s electric energy
industry reform, as the
organisation that manages
UNEG for the purpose
of its maintenance and
development
KEY ACTIVITIES
Managing the
Unified National
Electric Grid (UNEG)
Providing the electricity
transmission and
technological connection
services to WECM participants
Investing activities
in the area of UNEG
development
Maintaining the UNEG
facilities and providing
technical supervision
1 Certain UNEG areas are managed by other operators: JSC Grid Company of the Republic of
Tatarstan, JSC Bashkir Grid Company, JSC Irkutsk Electric Grid Company and JSC Regional
Electric Grids (REG).
138.8
thousand km
of total length of electricity
transmission lines
332.1
thousand MVA
of transformer capacity
77
Russian regions
with a total area of more than
>15.1
mln sq. km
covered by the Federal Grid’s
transmission lines and substations
>50%
of all energy consumption in Russia is of
electricity transmitted via the Company’s
grids
branches
51
>24
thousand
employees
135.2
RUB billion
amount of capital investments
deployed in 2014
169
RUB billion
revenue at year end 2014
56.1
RUB billion
market capitalisation as of
the end of 2014
Contents
Statement from the Chairman
of the Board of Directors
Statement from the Chairman
of the Management Board
4
6
Highlights
Key Performance Indicators 8
2014 Events 10
Social responsibiity
and sustainable
development
67 Sustainable
Development Principles
69 HR Policy
75 Social Policy
77 Health and Safety
79 Environment
Strategic overview
Market overview 13
Business Model 14
Development Strategy 16
Geography 20
Corporate governance
Governance System
83 Corporate Governance
Principles
86 Board of Directors
98 Management Board
Performance results
Operating Performance
Control System
Electricity Transmission 23
Technological Connection 25
Improving Reliability 27
Development
of Communication
Networks and IT systems
31
Procurement 33
Energy Saving and Energy
Efficiency
38
Investments and Innovative
Development
Investing Activities 41
Innovative Development
Programme
49
Management’s Discussion
and Analysis
Financial Performance 54
Cash Flow 58
Financial Position 59
Tariff Regulation 62
Debt Portfolio 64
Credit Ratings 65
106 Internal Control and Risk
Management System
115 Anti-Corruption activities
Share Capital
117 Share Capital Structure
118 Stock Market
121 Dividend Policy
122 Information Policy
124 Investor Relations
Additional
information
125 Disclaimer
125 Contacts
127 Glossary
Appendices
СтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсонал STATEMENT FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
Efficient work for the benefit
of the countr y and shareholders
the entire Ural region. We completed con-
struction of power distribution scheme
from power unit No. 3 with a capacity of
1,000 MW of the Rostovskaya NPP. Its
commissioning will make it possible to
cover future demand for electricity and
capacity in the integrated power system
of South and improve the reliability of
power supply to customers. We provided
for the development of the oil and gas
complex in the Far North by commission-
ing two 220 kV substations of new gener-
ation in Yamal-Nenets Autonomous Okrug
(“Arsenal” and “Mangazeya”). Two new
electricity transmission lines from 500 kV
Tarko-Sale substations and Urengoi HPP
will be instrumental for implementation
of important infrastructure projects in the
region.
I should particularly emphasise the
commissioning of an ultra-high voltage
500 kV Yenisei substation for the supply
of electricity to Krasnoyarsk. The new
facility will be the second largest source
of energy supply in the capital city of Sibe-
ria. It will eliminate the energy shortage
in the central power district of Krasno-
yarsk Krai.
The launching of external power supply to
Vostochny Spaceport was a milestone. We
currently can deliver capacity up to 121
MW to the power receivers of the com-
plex. We intend to connect the spaceport
facilities to the Company’s second substa-
tion, 500 kV Amurskaya.
Federal Grid Company’s achievements in
2014 were largely merited to the con-
Dear shareholders!
In 2014, the Board of Directors focused
on the establishment of necessary
conditions for meeting the Company’s
strategic goals, i.e. to ensure reliable and
high-quality energy supply to the custom-
ers in the Russian Federation and lay the
groundwork for the further strengthening
of the electric power grid infrastructure.
“Federal Grid Company’s achievements
in 2014 were largely merited to the
concerted and fruitful joint efforts of the
Board of Directors and the Company’s
management team.”
Federal Grid Company improved the
reliability of the Unified National Electric
Grid’s operations in 2014. We managed
to reduce the accident rate by 14.5%, and
our actual electricity losses were below
the targets that had been approved by the
Russian Ministry of Energy.
Federal Grid Company delivered power
that was essential for the implementation
of major industrial and infrastructure
projects in Russia. By commissioning of
330 kV Vasileostrovskaya substation we
completed the construction of the energy
ring in St Petersburg that substantially
improved the reliability of electricity
supply and made it possible to connect
the city’s new facilities, including those
that are being built for the 2018 FIFA
World Cup, to the energy system. We have
built infrastructure for power delivery at
the new power unit of Beloyarskaya NPP.
Additional capacity of 800 MW will make
it possible to mitigate power shortage in
Sverdlovsk and Chelyabinsk oblasts and
improve the reliability of power supply in
certed and fruitful joint efforts of the
Board of Directors and the manage-
ment team aimed at overcoming the
impact of uncertainty in the capital
market and economic slowdown on the
Company’s operations and the sector
in general.
It is important to note prompt coop-
eration between the Board of Direc-
tors and the executive team on the
key issues of operating and investing
activities.
“The Company’s main goal in 2015 will be to
identify and use the capacity for saving and
import substitution, while the unconditional
priority will be to ensure the reliability of
UNEG and reduce the accident rate.”
the reliability of UNEG and reduce the ac-
cident rate. The implementation of social
projects that focus on the retention and
development of the Company’s profes-
sional team remains our priority.
As for corporate governance, Federal
Grid Company employs the best prac-
tices and implements a package of
measures outlined in the new Corporate
Governance Code. These include, but
are not limited to, provisions that are
aimed at making the Company highly
attractive for investors and, consequent-
ly, at improving its competitiveness in
the capital markets. Furthermore, the
Company’s corporate governance prac-
tices are being changed in order to make
them consistent with the requirements
of MICEX Listing Rules to the issuers,
In 2014, the Government of the Russian
Federation approved the Long-Term
Development Programme of Federal
Grid Company until 2019 and Prospects
through 2030 that had been adopted
by the Company’s Board of Directors.
The Programme does not envision any
increase of electricity demand in the
coming five years, while operational costs
should be reduced by 25% by 2017.
Much attention is being paid to import
substitution. Federal Grid Company
intends to reduce import of equipment to
a minimal level by 2030. We expect that
equipment will be manufactured domesti-
cally but also supplied by member states
of the Customs Union. The aim of import
substitution is to maintain the energy
sector’s sustainability to external and
internal economic, human-induced and
natural hazards, and minimise damages
caused by destabilising factors including
geopolitical ones.
Thus, the Company’s main goal in 2015
will be to identify and use the capacity for
saving and import substitution, while the
unconditional priority will be to ensure
whose shares are traded on the Level 1
quotation list.
In 2015, the Company will continue work
on making its internal documents, rules
and procedures consistent with the new
requirements of the Russian legislation
and recommendations of regulators. This
will help to improve the efficiency and
competitiveness and strengthen the confi-
dence of customers and investors.
A detailed overview of Federal Grid
Company’s achievements in sustainable
development is available in the Social Re-
sponsibility and Corporate Sustainability
Report, which is published annually.
Federal Grid Company faces all important
tasks in 2015. We will have to commission
new and reconstructed grid facilities in
accordance with agreed-upon schedules
and improve the efficiency of our core
business processes, including those that
are part of our operations as a member of
Russian Grids Group of companies.
I am confident that Federal Grid Company
will complete these tasks successfully
and continue its efficient work for the
benefit of the country and shareholders.
“As for corporate governance, Federal Grid
Company employs the best practices and
implements a package of measures outlined
in the new Corporate Governance Code.”
Oleg
Budargin
4
5
STATEMENT FROM THE CHAIRMAN OF THE MANAGEMENT BOARD
Reliability and Financial Sustainability
Dear shareholders!
For the first time over the past years
Federal Grid Company posted profit in
2014 despite freezes on tariff growth and
the rising inflation. This result was made
possible only due to strenuous cost-cut-
ting efforts. We will follow our course
toward internal optimisation and positive
financial results in 2015, too. In my view,
the priority objective for 2015 is to main-
tain high reliability of energy supply and
improve accessibility of our infrastructure
and the customer focus. The only way for
the Company to develop in the current
macroeconomic realities is the utmost
internal efficiency and higher quality of
services that we provide.
Operational and Financial
Results
In our operations, we have achieved the
most important objective, i.e. reliable
electricity supply to our customers.
The Company met all its targets. There
were no major accidents. The volume of
process disruptions at the facilities of the
Unified National Electric Grid went down
in the reporting period by 14.5% year-
on-year. By 2015, Federal Grid Company
achieved the highest indicators of UNEG
reliability over the last five years: the ac-
cident rate declined by 40% since 2010.
The repair work in physical terms that had
been planned for 2014 is fully completed.
The total investments in repairs amount-
ed to RUB11.7 billion. At the same time
we optimised procurement, thus ensuring
cost cutting.
In terms of the grid development, in 2014
we ensured power delivery at 10 gen-
eration facilities with the total capacity
of 4,700 MV, including 880 MV at the
fourth power unit of Beloyarskaya NPP
and 1,100 MV at the new third plant of
Rostovskaya NPP. The Company built
an electrical grid infrastructure for
8 thermal heat generation facilities
across Russia.
The Company completed the construc-
tion of an energy ring around St. Peters-
burg, ensured external energy supply to
Vostochny Spaceport, built a large feeding
centre in Krasnoyarsk krai (500 kV “Yeni-
sei” substation) and implemented several
projects for oil companies (e.g., the devel-
opment of Vankor group of fields; electric
power supply to the second phase of the
East Siberia–Pacific Ocean oil pipeline).
In 2014, Federal Grid Company reported
revenue growth to RUB168.9 billion, or by
“By 2015, Federal Grid Company achieved
the highest indicators of UNEG reliability
over the last five years: the accident rate
declined by 40% since 2010.”
8.7% as compared with 2013. It is impor-
tant to note that we managed to increase
revenues from technological connection
by sixfold (by more than RUB6 billion).
In 2014, we set on major cost optimisation
events. The result of these efforts was a
reduction of operating costs (unit cost and
administrative costs, excluding depreci-
ation and property tax payments) relative
to the 2013 level although the number of
equipment items serviced by the Compa-
ny has increased.
Federal Grid Company received net profit
of more than RUB5.1 billion for 2014 – for
the first time over the past years. The ad-
justed earnings before interest, profit tax,
depreciation and amortisation (adjusted
EBITDA) amounted to RUB99.6 billion in
the reporting year, up by 3% as compared
with 2013.
Priorities in the Period of
Increasing Uncertainty
The approval of a Long-Term Develop-
ment Programme of Federal Grid Compa-
ny for 2015-2019 by the Government of the
Russian Federation was one of the most
important outcomes in 2014. The pro-
gramme is based on a strictly pragmatic
approach. The Company cannot afford,
and does not see the need, to continue
expansive accelerated development of its
backbone electric grid complex. In the
coming five years our paradigm will be to
increase internal efficiency of operations
and investments.
This implies our continued efforts to meet
the objectives related to providing relia-
ble and accident-free work and address
new issues, such as maintenance of the
revenue base, increase of the capacity
load rate, introduction of new schemes
for the financing of technological con-
nection, and support of economic growth
areas. The continued optimisation of
operating costs and construction costs
by end-2017 by 25% and 30%, respective-
ly, becomes a more important task for
maintaining the Company’s sustainable
financial health.
As for implementation of the techno-
logical connection projects, we focus
on providing the connection within the
deadlines required by the customer. Given
financial constraints, we design various
options for obtaining project financing (via
government support and contributions
from customers).
The Company will continue to formulate
its key investment priorities in line with
the government objectives. Federal Grid
Company will continue work on such
projects as strengthening of electricity
connections between integrated power
systems of Centre and North-West, the
construction of an electricity grid infra-
structure for the extension of BAM and
Transsib, and energy supply to ESPO-2.
Federal Grid Company is focused on the
most open and transparent planning of its
investments, including flexible adapta-
In 2014, The Company received net
profit of more than RUB 5 billion for
the first time over the past years.”
tion of its investment programme to the
changing actual demand for electricity on
the part of our large customers.
In terms of geography, Eastern Siberia
and the Russian Far East as regions of
accelerated development and economic
growth remain particularly important for
the Company.
Import substitution is still our key prior-
ity. We look at the Programme of Import
Substitution until 2019 (adopted in 2014)
from the perspective of cost cutting and
mitigation of foreign exchange risks.
Federal Grid Company has a technical
policy, adopted a Regulation on the energy
management system. In 2014 we received
a certificate of compliance with the inter-
national standard ISO 50001:2011.
In our view, it is important to emphasise
that by improving energy efficiency of
Federal Grid Company we help to reduce
energy intensity of the national GDP.
Energy efficiency and import substitution,
as well as our efforts to ensure reliable
energy supply, are described in further
detail in our 2014 Social Responsibility
and Corporate Sustainability Report.
“By improving energy efficiency
of Federal Grid Company, we help
to reduce energy intensity of the
national GDP”
In the social policy the Company retains
its focus on support and development
of human capital, collaboration with the
relevant institutions of higher education,
creating opportunities for young special-
ists, support of veterans, and on ensuring
generational continuity for the transfer of
valuable professional experience.
In 2014, we completed the first five-
year targeted Energy Saving and Energy
Efficiency Programme. The programme
targets for technological and econom-
ic effect are met by 105% and 108%,
respectively. A similar programme for
the next five years has been drawn up
and approved by the Management Board.
I would like to emphasise that the key to
reliable and sustainable work of Federal
Grid Company is improvement of our own
efficiency. We should continuously refine
business processes related to the ensur-
ing of reliability, cut construction costs
and build only those facilities that are in
demand, cut maintenance expenditure,
provide efficient technological connection
services, and be transparent for custom-
ers, shareholders and regulators. We have
set goals and drew up detailed action plans
for their implementation. I firmly believe
that the consistent work of our team will
help us to meet all our targets and make
Federal Grid Company even stronger, more
reliable and more successful.
Andrey
Murov
6
7
KE Y PERFORMANCE INDICATORS
Revenues, RUB mln
Adjusted EBITDA, RUB mln
168,941
155,352
138,137
138,837
96,296
99,603
84,683
82,809
111,085
+8.5%
68,301
+3.4%
Length of electricity transmission lines*,
thousand km
Number of substations*, units
138,8
135.1
131.6
919
924
891
854
124.6
121.7
+2.7%
805
+0.5%
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
* PTLs the ownership rights to which have been duly registered for Federal Grid
Company and other owners, excluding leased PTLs and SSs with 10 kW voltage and
lower operating on the territory of Krasnodar Krai and the Far East Federal University
on Russky Island owners
* SSs the ownership rights to which have been duly registered for Federal
Grid Company and other owners, excluding leased PTLs and SSs with 10 kW
voltage and lower operating on the territory of Krasnodar Krai and the Far East
Federal University on Russky Island owners
Net profit (loss), RUB mln
Total Shareholder Return (TSR), %
Electricity supply*, mln
Electricity losses within UNEG,
mln kWh
57,082
5,137
+119.8%
2010
2011
2012
2013
2014
-2,468
-24,532
-25,898
10.8
2010
2011
2012
2013
2014
503,948
486,364
522,711
518,093
514,057
22,526
22,553
22,262
21,946
-0.9%
21,261
-4.5%
-23.4
-32.2
+10.5%
-50.5
-56.4
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
* electricity supply to distribution grid companies, direct customers and
independent energy joint stock companies, overseas power systems, net
Financial leverage
Actual implementation of the investment
programme, RUB bn
Workplace accident frequency rate
per 1,000 persons
Environmental costs, RUB mln
0.44
0.44
0.32
0.22
0.14
0%
167.0
184.7
179.9
149.7
0.762
90.9
-39.3%
0.253
0.285
0.319
-61.1%
0.124
225.8
206.7
186.1
155
142.5
+9.2%
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
HIGHLIGHTS
KE Y E VENTS IN THE
REPORTING YE AR
2014
Development
Strategy
Delivery of the
Investment
Programme
Sustainable
Development
Corporate
Governance
Standard &
Poor’s Rat-
ings Services
lowered the
long-term
foreign cur-
rency credit
rating of
Federal Grid
Company
from BBB/
Negative
to BBB-/
Negative
following the
downgrade of
the Russian
Federation
sovereign
credit rating
from BBB to
BBB-
The Company
completed
the construc-
tion of the
500 kV Bo-
guchanskaya
HPP – Ozer-
naya HVL 330
km in length
between
Krasnoyarsk
Krai and Ir-
kutsk Oblast
The National
Corporate
Governance
Rating of
Federal Grid
Company was
confirmed
at 7+ level/
Well-De-
veloped
Corporate
Governance
Practice
International
rating agency
Fitch Ratings
affirmed the
Company’s
credit rating
at BBB level
Shares of
Federal Grid
Compa-
ny were
transferred
to Level 1
quotation list
of Moscow
Exchange
The Annual
General
Meeting of
Sharehold-
ers made a
resolution to
pay dividends
for the first
quarter of
2014 in the
amount of
RUB436.8
mln
The second
meeting of
the Consum-
er Council
was held in
Moscow with
participation
of repre-
sentatives
from public
and scientific
organisa-
tions, small
and medium
businesses,
power supply
companies
and our ma-
jor consum-
ers.
An Energy
Saving and
Energy Effi-
ciency Pro-
gramme for
2015 – 2019
was approved
which aims to
achieve the
operational
and economic
benefits
expressed
in 32.4 thou-
sand tonnes
of reference
fuel
The Company
Headquar-
ters and two
branches –
MES Volga
and Samar-
skoye PMES –
received a
certificate of
conformity
to the ISO
50001:2011
Energy
Management
System
Moody’s
affirmed the
Baa3 interna-
tional scale
and Aaa.
ru national
scale ratings
of Federal
Grid Com-
pany
E VENTS AFTER THE
REPORTING DATE
2015
The Envi-
ronmental
Management
Systems of
the Corporate
Headquar-
ters and the
branches
MES South,
MES North-
West, MES
Centre and
MES East
were certified
for the com-
pliance with
the require-
ments of the
international
standard ISO
14001:2004
Federal Grid
Company
connected
5.9MW ca-
pacity to new
facilities of
the Skolkovo
Innovation
Centre –
Hypercube,
Matrex,
Technopark
buildings
and the first
electric vehi-
cle charging
stations
Programme
for Import
Substitution
of Equipment,
Technologies,
Materials and
Systems for
2015-2019
was approved
aimed at
increasing the
share of do-
mestic man-
ufacturers in
equipment
procurements
from 30 to
90%
The Russian
Ministry
of Energy
approved the
investment
programmes
of Federal
Grid Company
for 2014 and
for 2015-2019
The Board of
Directors ap-
proved a new
version of the
Environmen-
tal Policy that
enhances the
environmen-
tal respon-
sibility of
Federal Grid
Company and
determines
key areas of
environmen-
tal activity
Power
facilities
were com-
missioned
to supply
electricity to
oil pumping
stations 11,
15 and 19 of
the Eastern
Siberia–Pa-
cific Ocean
(ESPO)
pipeline,
providing a
throughput
capacity of 50
mln tonnes
per year
Federal Grid
completed
testing of 330
kV Gatchin-
skaya-Len-
ingrad NPP
electricity
transmission
line that is
one of the
elements of
power deliv-
ery scheme
of the
Leningrad
NPP-2 under
construction
Following
the review of
the Russian
Federation
sovereign
rating, Fitch
lowered the
long-term
foreign cur-
rency default
rating of
Federal Grid
Company
to the level
of Russia’s
rating equal
to ‘BBB-’, the
Outlook is
Negative
Following
the review of
the Russian
Federation
sovereign
rating,
Moody’s
lowered
the Federal
Grid’s credit
ratings to
Ba1global
scale and
Aa1.ru na-
tional scale
ratings and
placed them
on review for
downgrade
A 500 kV Iset’
substation
was com-
missioned in
Sverdlovsk
Oblast to
deliver power
from a new
power unit
of Beloyarsk
NPP
Technical
re-equip-
ment of 220
kV Chara
substation in
Zabaykalsky
Krai was
competed
that improved
the reliability
of electricity
supply to
the region,
including the
Baykal-Amur
Mainline
Railway and
Udocan cop-
per field
The Board
of Directors
approved the
Long-Term
Development
Programme
of Federal
Grid Compa-
ny for 2015-
2019 and
Prospects
through 2013,
that had been
previously
approved by
the Gov-
ernment of
the Russian
Federation
A ‘Road
Map’ was
developed for
integrating
key provi-
sion of the
new Russian
Corporate
Governance
Code into the
Company’s
practice
Following its
downgrade of
the Russian
Federation
sovereign
credit rating,
Standard
& Poor’s
lowered the
credit rating
of Federal
Grid Com-
pany to BB+/
Negative
Upon com-
pletion of the
review peri-
od, Moody’s
affirmed the
Federal Grid
Company’s
Ba1 global
scale rating/
Negative,
and Aa1.
ru national
scale rating
The Board
of Directors
approved the
‘Road Map’
for integrat-
ing key pro-
vision of the
new Russian
Corporate
Governance
Code into the
Company’s
practice
Federal Grid
Company
joined the
Anti-Cor-
ruption
Charter of
the Russian
Business
The Supervi-
sory Board of
Vnesheconom-
bank made
a decision to
invest RUB40
billion of pen-
sion savings
for a 30 years
period through
acquisition of
Federal Grid’s
bonds for the
Company’s
investing
activities
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
ОАО «ФСК ЕЭС» Годовой отчет 2014
Strategic overview
Implementation of the Long-Term Development
Programme of Federal Grid Company is aimed at
maintaining and developing the Unified National Electric
Grid - a backbone electric grid infrastructure for
ensuring economic growth in Russia and uninterrupted
energy supply for consumers throughout the country
T E G Y + S
U
A
R
T
S
+
N
O
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T
A
E
R
C
S
T
A
I
N
A
B
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L
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+
S
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VAL
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LE+
Infrastructure
Reliability
=
Technology
+
Governance
+
+
Cooperation
Strategy
MARKET OVERVIE W
Preparedness for
Market Challenges
According to the Russian legislation,
Federal Grid Company is the manage-
ment organisation of the Unified Na-
tional (All-Russia) Electric Grid (UNEG).
The backbone grid is a part of the basic
infrastructure of the Russian electricity
market, and electricity transmission
business is a natural monopoly. Being a
natural monopoly entity, the Company is
subject to the government regulation.
The infrastructural nature of the elec-
tricity industry in general and of the
electric grid in particular, explains the
high dependence of the scope and content
Key Parameters of Economic Development
in Russia
15.8
GDP growth, %
Consumer price growth, %
8.4
6.9
6.8
7.8
4.5
4.3
5.1
3.4
1.3
0.6
2010
2011
2012
2013
2014
–3.0
2015
forecast
7.3
Industrial production growth rate, %
2.2
13
5.0
0.2
Industrial production growth rate for
«Production and distribution of electricity,
gas and water»as a type of economic
activity, %
1.7
0.4
3.4
1.3
–0.4
–0.1
–1.6
–2.5
2010
2011
2012
2013
2014
2015
forecast
Source: Rosstat; Ministry of Economic Development, Social and Economic Outlook on
the Russian Federation for 2015
13
of Federal Grid’s services on the over-
all economic situation. The social and
economic conditions in the reporting
year constrained the capacity of the grid
services market. Electricity consumption
across the unified energy system (UES) of
Russia increased by 0.4% against the 2013
level and reached 1,013,900 billion kWh in
2014. A moderate increase of electricity
consumption is expected in 2015-2018.
A substantial increase in electricity
consumption across UES in these years
will be because of its expansion within the
integrated power system (IPS) South and
IPS East (integration of the western and
central energy regions of the Republic of
Sakha (Yakutia)). A modest increase of
demand for electricity is expected in the
period beyond 2018.
Given the crisis and economic slowdown,
the Company faces a certain reduction
in its operating and investing activities,
and stronger financial constraints, such
as reduction in income and increase in
funding costs.
The volume of electricity transmission
services reduced in 2014 in line with the
tendency observed since 2009. Given the
trends and the abovementioned factors,
and with regard to the transition to the
principle of measuring services at their
average arithmetic capacity, Federal
Grid anticipates a certain reduction of
the market for its services despite the
increased number of consumers. The
number of customers will increase large-
ly because direct consumers will grow in
number (including the “last mile” ones
and energy-selling organisations acting in
the interests of the customers). However,
distribution grid companies will remain
the largest customers of the Federal
Grid’s services.
Taking into account the intensity of filing
applications and contractual time-
frames, there has been no any strongly
pronounced tendency in the volume of
technological connection services in
recent years.
СтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсонал
STRATEGIC OVERVIEW
BUSINESS MODEL
Long-Term Value Creation
Federal Grid Company’s business model is aimed at ensuring the sustainable development of the Company
in the long term and the creation of values for all stakeholders through consistent implementation of our mission
R E S O U R C E S
S T R A T E G I C G O A L S A N D O B J E C T I V E S
V A L U E C R E A T I O N
SHAREHOLDERS AND
INVESTORS
GOVERNMENT
AUTHORITIES
Russian Government,
Ministry of Energy,
FTS
MISSION OF JSC FGC UES
To ensure energy security of consumers in
Russia through maintaining and developing
the electricity transmission infrastructure
• Growth of share value and
dividends for shareholders and
investors
• Interest income for debt providers
• Payment of national taxes
Financial
assets
• Equity
• Debt
Production
assets
• UNEG facilities:
1. Transmission lines
2. Substations
Intellectual
assets
• Patents
• Licenses
• Software
• Increase return on equity
• Reduce operational and investment costs
• Maintain financial sustainability
• Develop UNEG infrastructure in order to prevent
constraints on economic growth
• Ensure reliability and quality
of energy supply to customers
• Consolidate all facilities of UNEG electric grids
• Maintain a competitive level of tariffs on
electricity for industrial development
• Ensure quality customer service
WHOLESALE
ELECTRICITY AND
CAPACITY MARKET
Supply of
electric power
and capacity
GENERATION
FACILITIES
Services
E N T
M
E
Tariffs
G
A
N
A
GIC M
E
T
A
R
T
S
Purchase
of electricity
and capacity for
compensation
of losses
C
O
R
P
O
Services
R
A
T
E
G
O
V
E
Payment
for services
R
N
A
N
C
E
INVESTMENTS
ELECTRICITY
TRANSMISSION
MAJOR
CONSUMERS OF
ELECTRIC ENERGY
grid companies,
factories, Russian
Railways
and others
• Develop research and innovation capacity
• Develop and put in place new technologies
• Substitute imports in order to support
innovative development of the Russian energy
sector
SUPPLIERS AND
CONTRACTORS
F
I
N
A
N
C
I
A
L
M
A
N
A
G
E
M
E
NT
INNOVATIONS
T
N
E
M
E
G
A
N
A
K M
R I S
RESEARCH
INSTITUTIONS,
CERTIFICATION
AND EDUCATIONAL
ORGANISATIONS
Payment
for services
TECHNOLOGICAL
CONNECTION
Payment
for services
Services
Human
assets
• Employees
• Employees’ experience and
professional expertise
• Corporate culture
• Develop and train personnel
• Provide social support
• Establish a talent pool
for a «smart» energy sector
• Cooperate with higher education institutions
Natural
assets
• Water
• Air
• Energy resources
• Ensure environmentalisation and improve
energy efficiency of the electric grid
operations
• Reduce air emissions of hazardous
substances
• Reduce water consumption
C O R E PRO C E S SE S
Electricity
transmission
In accordance
with Russian
laws, services
of electricity
transmission
via UNEG are
monopoly
operations
regulated
by the State
Technological
connection
This is a service
package to
connect power
receivers of
consumers,
as well as
generating and
transmission
facilities to
Federal Grid’s
electric grids.
Investments
Implementation
of projects to
build new and
to reconstruct
the existing
facilities of the
electric grid
infrastructure
with a view to
improve the
reliability of
UNEG
HUMAN
RESOURCES
Innovations
Development and
implementation
of innovative
technologies
in the process
of modernising
UNEG
electric grid
infrastructure
AU X ILLI A RY PRO C E S SE S
Technical
maintenance
and repairs
Energy saving
and energy
efficiency
Health
and Safety
Procurement
HR policy
Social
responsibility
Environment
• New facilities: electricity
transmission lines and substations
• Reliable energy supply to
consumers for development of the
economy
• Mutually beneficial co-operation
with suppliers and contractors
• Energy security of the State
• Development of new
technologies for higher
production efficiency
• Energy saving and increased
energy efficiency within the
Company and across the country
• Wages/salaries, social
security and opportunities for
professional development for
employees
• Job creation that drive economic
growth in the country
• Balance between the use of
natural resources and the
efficiency of economic activities
THE STATE AND THE PUBLIC
S T R A T E G I C O V E R V I E W
Trends in the Mid-Term Development of the Russian
Electricity Sector
• The electricity industry’s pricing pressure on the economy will
be transformed into intensified competition for tariff revenues
among all participants in the process of electricity production,
distribution and sale
• Unequal electricity consumption across Russia because of the major
differences between various regions in terms of capacity and current
development of industrial and economic growth
• Customers will press for more reliable and better-quality energy
supply on the back of rising prices for electricity in general
• Competition will be tougher on the wholesale electricity market as
a result of commissioning new sophisticated generating capacities
under regulated contracts for capacity supply
Electricity Consumption in Russia in 2010-2014 and Forecast for 2015-2020
2010
2011
2012
2013
2014
2015
forecast
2016
forecast
2017
forecast
2018
forecast
2019
forecast
2020
forecast
Electricity consumption in
UES of Russia, billion kWh
961.7
1,000.7
1,016.5
1,009.8
1,013.9
1, 016.3
1,028.7
1,045.1
1,053.7
1,061.4
1,084.3
The continued development of the
national energy sector is based on
the scenario of innovative economic
development. According to the Energy
Strategy of Russia until 2030, as
approved by the Russian Government,
the national economy’s dependence
on the energy sector is expected to
weaken following priority being given
to the development of innovative en-
ergy-saving sectors and the imple-
mentation of energy-saving technolo-
gies. As a result, the fuel and energy
complex’s share of gross domestic
product will fall by almost half by 2030
(compared with 2005).
At the same time, the energy sector will
maintain its key role in making funda-
mental strategic decisions pertaining to
the national development. This is par-
ticularly true of the construction of a new
power infrastructure that will accelerate
the social and economic development
of Eastern Siberia and the Russian Far
East, help to overcome infrastructural
imbalances between regions and form
new territorial and production clus-
ters based on energy-generating and
-processing facilities. The geography
of energy and service consumption
will change in the medium term as
new “growth points” will appear in the
Russian economy. The highest relative
increase of electricity transmission
services is anticipated in the integrat-
ed power systems of East and South,
including because of implementation of
national investment projects.
The lessening dependence of the economy
on the energy sector will be accompanied
by qualitative changes in the role of the fuel
and energy complex in the national economy.
The Russian energy sector will maintain its
influence on the social situation in the country
because the Russian citizens’ living standards
depend largely on the level of energy comfort
and the availability of energy resources.
Strategic goal
KPI1
2014
TARGET
2014
ACTUAL
2015
TARGET
Reliability of
power supply to
customers
No increase in the
number of major
accidents
Preventing increase in
the number of persons
injured in accidents
0
0
0
Zero
increase
Zero
increase
Zero
increase
Achieving reliability
level of services
1 *
1 *
1 *
Reduction
in operating costs2
Reduction in
investment costs2
Electricity losses
Effective
management
15%
21.7%
17.03%
At least
24%
At least
15%
4,13%
of supply
No more
than 4,27%
of supply
At least
10%
No more
than 4.34%
of supply
DE VELOPMENT STR ATEGY
Long-Term Development Programme
From Outstripping Expansive Development
to Higher Internal Efficiency
Labour productivity
-
-
At least
17%
In December 2014, the Board of Direc-
tors approved1 a Long-Term Development
Programme of Federal Grid Company for
2015-2019 with a forecast through 2030 that
had been approved by the Government of the
Russian Federation.
The above Programme summarises the re-
sults achieved in the first long-term period
of tariff regulation with respect to strategic
objectives. It formulates the Company’s
new goals, objectives and key performance
indicators for the second long-term period
of tariff regulation with due regard of the
current and prospective economic situation
in the Russian Federation. The Programme
identifies the priorities of technical and
investment policy, a forecast-based
financial model, key risk factors and an
action plan to achieve the strategic goals
and objectives.
findings of this audit must be commu-
nicated as proposed adjustments of the
Programme to the Ministry of Energy no
later than 10 July of the year following
the reporting year.
The Board of Directors approved2 a
standard for an annual independent audit
of the Programme implementation. The
The Long-Term Programme is consistent
with the targets and provisions of the
Development Strategy for the Russian
Electric Grid Complex, as approved by
Resolution No. 511-r of the Government
of the Russian Federation, dated 3 April
2013, and Methodological Guidelines on
the Drafting of Long-Term Development
Programmes approved by the RF Ministry
of Economic Development in 2014 .
Federal Grid’s Development Programmes
• Long-term development programme for 2015-2019 and prospects
through 2030
• Investment programme for 2015-2019
• Innovative development programme for 2013-2017 and through 2020
• Fixed assets renovation programme
• Maintenance and repair programme and targeted programmes
• Energy saving and improved energy efficiency programme for 2015-2019
• Programme for substitution of imported equipment, technologies,
materials and systems
2010 – 2014
First long-term period
of tariff regulation
2015 – 2019
Second long-term period
of tariff regulation
Implementing strategic objectives
to overcome technological lags and
ensure outstripping development
of the electric energy infrastruc-
ture by implementing a large-scale
investment programme
Transition from the model of out-
stripping expansive development
of UNEG to a model of higher
internal efficiency while main-
taining the reliability and techno-
logical development levels
Development
of UNEG
infrastructure and
implementation
of projects
of national
significance
Meeting schedule
for facilities
commissioning
At least
95%
100,9%
At least
95%
* The actual value of the service reliability indicator is not higher than the plan value set by FTS
RESULTS
of the first long-term period
of tariff regulation,
2010 – 2014
PLANS
for the second long-term
period of tariff regulation,
2015 – 2019
• Reliability and
• Reduce undersupply
quality parameters
improved, the number
of accidents were
reduced, and the fallout
of the accident at the
Sayano-Shushenskaya
HPP was minimised
• Injury rate at the
Company’s facilities
lowered and the
number of fires was
reduced
• Electricity losses
declined from 4.56%
to 4.13%
• An automated system
of commercial
metering of electric
power was developed
and put in place
• Innovative
development,
energy efficiency,
energy saving and
import substitution
programmes are
being implemented
of electricity to
customers and
optimise the
utilisation of the
existing capacities
• Reduce operational
costs relative to the
2012 level by 25% by
2017 while maintaining
reliability and quality
of electricity supply to
customers
• Implement a long-term
investment programme
in an environment
where restrictions are
imposed on the growth
of tariffs, and reduce
investment costs
relative to 2012 by 30%
by 2017 with minimal
reduction of physical
parameters
• Implement innovative
development, energy
efficiency, energy saving
and import substitution
programmes
• A large-scale
• Implement new
investment projects of
national significance
on schedule, such
as energy supply
to Baikal-Amur
and Transsiberian
railways; ensure
reliable operation of
UES of Russia working
separately from the
energy systems of the
Baltic States; develop
reliable power
supply to customers
in the Southern
Federal District;
provide electric grid
infrastructure for
schemes of delivery
of capacity to the
newly commissioned
substation facilities
investment programme
(RUB772.2 billion
in 2010-2014) was
completed
• Since 2010,
transformer capacity
increased by almost
7% to 332.1 MVA; the
number of substations
increased by 14% to
924; and the length of
electricity transmission
lines increased by
more than 14% to
138.8 kilometers.
• Investment projects of
national significance
(including projects
of electric power
infrastructure
development in
Vladivostok before
APEC summit and in
Sochi before the Winter
Olympic Games) were
implemented
1 Minutes No. 243 dated 19 December 2014
2 Minutes No. 245 dated 31 December 2014
3 Methodological Guidelines on the Drafting of Long-Term Programmes for the Development of Strategic Open Joint-
Stock Companies and Federal Sate Unitary Enterprises and Open Joint-Stock Companies in Which the Total Share of the
Russian Federation in the Authorised Capital Exceeds Fifty Percent
1 Methodology for Calculation and Evaluation of Key Performance Indicators for Federal Grid’s
Senior Management is approved annually by the Board of Directors
2 Reduction of operating and investment costs relative to the
2012 level
16
17
Strategic goal
KPI1
2014
TARGET
2014
ACTUAL
2015
TARGET
Return on invested
capital (ROIC)
Financial leverage
At least 1
1.77
At least 0.9
Not higher
than 1.5 **
0.44
Not higher
than 1.5 **
Maintenance
of financial
stability
Total shareholder
return (TSR)
At least the
average
value of
MICEX PWR
- 50.5%
Higher than
the average
value for
the past
three years
before the
reporting
year by the
amount
established
by the Board
of Directors
RESULTS
of the first long-term period
of tariff regulation,
2010 – 2014
PLANS
for the second long-term
period of tariff regulation,
2015 – 2019
• The Company has
investment grade
credit ratings (two
of them equal
to the sovereign
rating) which made
it possible for it to
contract long-term
(up to 35 years)
debt at the average
weighted rate of 8%
• Contract long-term
financing at lower
rates, including
from the National
Wealth Fund, for
implementation of
investment projects of
national significance
Our Company’s financial standing will
largely depend on how effectively we will
address these challenges. Measures
included in the log-term development pro-
gramme are aimed at resolving thereof.
sian Electric Grid Complex. Yet, the Com-
pany aims to achieve these higher targets
because it needs to complete a long-term
investment programme and maintain a
sustainable financial position.
The base case scenario underlying Federal
Grid’s financial model is based on the
meeting of key performance indicators
including the cuts of operational costs by
25% relative to the 2012 level and invest-
ment costs by 30% already by 2017. These
targets are more ambitious than those set
in the Development Strategy for the Rus-
The risks of deviation from the base case
scenario of the long-term financial model
are taken into account in a moderately con-
servative scenario that envisions reduced
revenues from the electricity transmission
service. This is because Resolution No.
740 dated 31 July 2014 will become effec-
tive and the Company’s settlements with
its direct customers will be based on the
actual capacity as of 1 January 2015, while
the existing procedure of payments by grid
organisations will remain in place.
The situation in the Russian economy
developed in the second half of 2014 is
making a significant impact on the param-
eters of Federal Grid’s strategic develop-
ment than had been set earlier. Therefore,
the Long-Term Development Programme
might be adjusted to reflect the forecasts
of the social and economic development of
Russia.
• Contracts for
technological
connection to UNEG
facilities were
implemented (273
applications). This
helped to reduce the
number of zones with
free cross-flows from
29 to 21 and intensify
competition on the
wholesale market
• Ensure customer
satisfaction with the
quality of services
including the level
of tariffs, and
schedule and price
of technological
connection of new
customers
• Reduce the cost
of technological
connection of new
customers
Strategy in the Context of Sustainable Development
Traditionally, sustainable development is
based on the ambition to meet the needs of
the existing generation without threatening
the needs of future generations. This can
only be done if all stakeholders’ positions
are taken into account, with continuous
communication with these stakeholders
and integration of these practices in all of
the Company’s business processes.
Programme aimed, among other things,
at the renovation, modernisation and
innovative development of UNEG. The suc-
cess of this programme largely depends
on constructive cooperation between the
Company and a broad range of stakehold-
ers. These include suppliers, contractors,
project and R&D think tanks, distribution
electric grid companies, IDGCs, custom-
ers, generators, infrastructure regulators,
labour unions, government authorities,
public and environmental organisations
and the expert community.
Effective
engagement
with customers
Meeting deadlines
for technological
connection
Not higher
than 1
0.72
Not higher
than 1.1
** Or not higher than the value set in the business plan
Challenges
Trends in the development of the Russian
economy and, in particular, the energy
sector are placing new challenges for the
Company. Successful overcoming of these
challenges will depend on the consist-
ency in implementation of the corporate
strategy.
• The actual growth rates of electricity
consumption are below the targets due
to macroeconomic deterioration. This
poses new objectives for the Company
with respect to rational planning of grid
development and building an adequate
economic model of payment for re-
serves.
• Electricity consumption by applicants for
technological connection has not been
increasing to a level that would provide
for return on investment via the electric-
ity transmission tariff. As a result, the
Company needs to make new mecha-
nisms for distributing responsibility,
investment costs and risks of inaccurate
planning of energy consumption among
Federal Grid and applicants.
• The tariff should at least cover the cost
of debt and other mandatory costs, pro-
vide for financing of future investments,
and ensure profits for shareholders.
Therefore, Federal Grid Company needs
to reduce its operational and investment
costs substantially without lowering
its reliability and increasing the future
costs.
• In late 2014, FTS approved the following
regulatory parameters and tariffs for
electricity transmission via UNEG for
2015-2019: return on invested capital is
set at 10%; tariff increase will be 7.5% in
2015, 5.5% in 2016 and 4.5% annually in
2017-2019. Tariff increase will be about a
half of the anticipated inflation rate, and
the operational costs efficiency index is
set at 3% for 2015-2019. This means that
the Company will need to make substan-
tial cuts of its operational costs in base
prices of the first year of regulation.
• Given restrictions on the growth of
tariffs, the Company should tighten its
criteria for assessment and selection
of investment projects and find new
funding mechanisms. The need to imple-
ment new long-term projects that have
national significance and are exposed
to high commercial risks will require
long-term financing at low rates, which
is currently available from the state
budget only.
• Depreciation of the national currency
and growing inflation rates increase the
uncertainty of investment expectations
and might bring about delays in imple-
mentation of investment projects run by
electricity consumers and in the gen-
eration sector. Not only new projects of
technological connection will be delayed
but new facilities will have a load lower
than had been planned.
• Restricted access of large banks to the
global capital markets and the raising of
the key rate by the CBR result in deterio-
rated terms of lending and higher cost of
debt. Therefore, Federal Grid’s invest-
ment opportunities in implementation
of new projects might diminish, thus
having an adverse impact on its overall
investment attractiveness.
Owing to its specific role in the energy
sector, economy and social development,
Federal Grid Company expands and
complements the traditional concept of
sustainability in its operations.
As a monopoly operator of UNEG, The
Company ensures electricity transmis-
sion via backbone electric grids and is
responsible for providing a reliable power
supply for consumers across the Russian
Federation.
The Company’s responsibility for the effi-
cient administration and development of
UNEG is not only to ensure a safe, reliable
and uninterrupted electricity supply but
also to provide non-discriminatory access
to its grid services that should be provided
in a transparent, honest (corruption-free)
and innovations-based manner. This is
why one of the Company’s most important
tasks in terms of philosophy and values
of corporate social responsibility and
sustainable development is to continuous-
ly seek the balance between public and
economic interests in our work.
Federal Grid Company, as one of the larg-
est electric power companies in Russia, is
responsible for the condition of UNEG, the
lynchpin of the national grid system and a
vital public infrastructure. Having as-
sessed existing problems and prospective
threats, the Company developed and began
implementing a Long-Term Development
Strategic Priorities
of Federal Grid’s Sustainable Development
• To build mechanisms
and practices for the
synchronisation of
stakeholder plans that
envisage the development
and expansion of UNEG
• To achieve import
substitution for the
purposes of the innovative
development of the national
energy
• To form a talent pool for the
smart energy sector
• To develop responsible HR
management practices
• To improve labour protection
and industrial safety
• To strengthen environmental
protection and improve the
energy efficiency of grid
operations
• To ensure a fair distribution
of economic value and assess
the economic expediency of
implementing innovations
and new technologies
• To integrate Corporate Social
Responsibility (CSR) strategy
in the internal business
processes
18
18
19
19
STRATEGIC OVERVIEW GEOGR APHY
Countr y-Wide
Reliability
Our Company operates in 77
Russian regions covering an
area of more than 15.1 million
sq. km. The territory in which
the Company’s facilities are
located is divided into zones
of responsibility for corporate
branches - backbone electric
grids (MES), and their
local enterprises ( PMES).
Underpopulated territories
with no large customers –
such as Chukotka, Kamchatka,
Magadan Oblast, Sakhalin,
Nenets Autonomous Okrug
and Altai Republic – are not
integrated into UNEG because
they do not have economic
conditions necessary for
laying electricity transmission
lines and establishing large
substations.
1. MES Centre
2. MES North-West
3. MES Western Siberia
4. MES Siberia
SS - 196 / 95,999 MVA
SS - 100/ 38,622 MVA
SS - 84 / 36,800 MVA
PTL - 463 / 28, 971 km
PTL - 278 / 14,516km
PTL - 193 / 13,283 km
PMES
Valdaiskoye
Verkhne-Donskoye
Volga-Donskoye
Volga-Okskoye
Vologodskoye
Moskovskoye
Priokskoye
Chernozemnoye
PMES
Bryanskoye
Vyborgskoye
Karelskoye
Leningradskoye
Novgorodskoye
Severnoye
PMES
Vostochnoye
Tsentralnoye
Yuzhnoye
Yamal-Nenetskoye
SS - 118 / 44,271 MVA
PTL - 332 / 24,210 km
PMES
Zabaikalskoye
Zapadno-Sibirskoye
Krasnoyarskoye
Kuzbasskoye
Omskoye
Tomskoye
Khakasskoye
1
6
2
7
5
5. MES South
6. MES Volga
7. MES Ural
8. MES East
3
SS - 143 / 27,476 MVA
SS - 88 / 32,254 MVA
SS - 105 / 41,894 MVA
SS - 90 / 14,820 MVA
PTL - 346 / 12,120 km
PTL - 185 / 12,486 km
PTL - 242 / 16,520 km
PTL - 192 / 16,689 km
PMES
Kaspiiskoye
Kubanskoye
Rostovskoye
Stavropolskoye
Sochinskoye
PMES
Nizhne-Volzhskoye
Sredne-Volzhskoye
Samarskoye
Nizhegorodskoye
PMES
Permskoye
Sverdlovskoye
Yuzhno-Uralskoye
Orenburgskoye
PMES
Amurskoye
Primorskoye
Khabarovskoye
8
4
Federal Grid Company collects and processes
information about electricity transmission along
140 cross-border electricity transmission lines.
Unified
National
Electric Grid
(UNEG)
power
transmission
lines 0.4-750 kV (PTL)
2 231 units/
138.8
*
thousand km
substations
6-1150 kV
(SS)
*
924 units
/
332,133 MVA
International Operations
Cross-border electricity transmission
lines that cross the state border of the
Russian Federation meet the statutory
criteria of treating electric grid facilities
as UNEG facilities.
Federal Grid Company facilitates the
transit of the Russian electricity through
electric grids of foreign states being a a
technical contactor under commercial
contracts of importers and exporters on
the WECM and, pursuant to the contracts
with JSC Inter-RAO UES and JSC TGC-
1, provides services on electricity
transmission throughout Russia and right
up to its borders via electric grid facilities
that are integrated into UNEG and legally
owned or possessed by the Company.
There are currently several agreements
in force, stipulating parallel operation
of the Russian UES with the electric
power systems of foreign states. The
parties to these agreements are Federal
Grid Company and economic entities
of Georgia, Kazakhstan, the Baltic
countries and the Republic of Belarus.
The Company also signed an Inter-
system Agreement with Finland. It also
signed agreements on technical support
of parallel operations with Ukraine, the
Republic of Belarus, Azerbaijan and
Mongolia.
• Being an organisation that manages
cross-border electricity transmission
lines, Federal Grid Company:
• coordinates commercial contracts for
the import/export of electricity and
provides their engineering support
• arranges and implements commercial
metering of electricity transmitted
along cross-border electricity
transmission lines
• measures actual volumes of electricity
that has been transmitted across the
State border, and arranges for their
customs clearance.
20
20
* PTLs and SSs the ownership rights to which have been duly registered for Federal Grid Company and other
owners, excluding leased PTLs and SSs with 10 kW voltage and lower operating on the territory of Krasnodar
Krai and the Far East Federal University on Russky Island
Subsidiaries
and Associates
Core Subsidiaries and
Associates
As of 31 December 2014, Federal Grid
Company had 21 subsidiaries and
associates that operate in different
industries, including those that support
electric grid facilities (core subsidiaries
and associates).
JSC MUS Energetiki
JSC R&D Centre of FGC UES
JSC CIUS EES
JSC ESSK EES
JSC Elektrosetservis UNEG
100%
100%
100%
100%
100%
Index Energetiki – FGC UES LLC
100%
JSC Tomsk Trunk Grids
AO OES GruzRosenergo
JSC Kuban Trunk Grids
52%
50%
49%
21
21
of Federal Grid
Company
branches
Electric Grid
Enterprises
(PMES)
51 regional
41 Backbone
1 Technical
1 Special Purpose
8 Backbone
Electric Grids
(MES)
Supervision
Centre
Production Centre
“Bely Rast”
STRATEGIC OVERVIEW PERFORMANCE RESULTS
When improving reliability, efficiency and safety of
electric grid infrastructure, Federal Grid Company
recognises the importance of comprehensive
modernisation, new technological capabilities and
customer orientation in the delivery of services. All this
involves the Company’s active role in the processes of
innovative economic development and investments.
O A C H + MODER
N
I
S
R
P
P
D A
E
T
N
E
I
R
O
-
R
E
M
O
T
S
U
C
+
Y
T
I
L
I
B
RELIA
A
T
I
O
N
+
I
N
V
E
S
T
M
E
N
T
S
+ IN
N
O
V
A
T
IONS+
Technology
=
Infrastructure
+
Strategy
Reliability
Governance
+
+
Cooperation
OPER ATING PERFORMANCE
ELECTRICIT Y TR ANSMISSION
The core activity and main revenue source
for Federal Grid Company is the elec-
tricity transmission through the Unified
National Electric Grid (‘UNEG’).
The cost of electricity transmission ser-
vices is based on tariffs that are set by the
Russian Federal Tariff Service (FTS) and
includes:
• the cost of electricity losses in UNEG
allowed by the relevant technological
standards in the Russian regions.
In accordance with Russian laws, Federal
Grid’s services of electricity transmission
via UNEG are monopoly operations regu-
lated by the State.
• the cost of electricity transmission for
the maintenance of electric grid facili-
ties that are part of UNEG;
In 2014, the volume of electricity
transmission services to consumers
via UNEG amounted to 515,250 mil-
lion kWh, down by 0.9% from 2013.
Volume of Services Provided by Federal Grid in 2010-2014*
530,000
520,000
510,000
500,000
490,000
480,000
470,000
460,000
450,000
Electricity losses in UNEG, %
Supply of Electricity from UNEG, mln kWh
4.72
517,131
519,983
515,250
4.56
509,287
4.43
4.24
4.28
493,570
4.13
468,302
2009
2010
2011
2012
2013
2014
5.00%
4.80%
4.60%
4.40%
4.20%
4.00%
3.80%
3.60%
3.40%
3.20%
3.00%
* relative value for 2009-2011 was recalculated to comparable conditions
Federal Grid enters into direct contracts with customers. The number of counterparties has been increasing steadily because
of new technological connections to UNEG and phased discontinuation of the “last mile” principle.1.
A
Federal Grid at Wholesale Electricity and Capacity Market (WECM)
C
%
Since 01.01.2006, Federal Grid,
on its own, has been purchasing
electricity on the WECM to
B
compensate for actual UNEG
losses net of losses that have
been measured and paid for in
equilibrium prices by the WECM
participants.
Объекты по производству электроэнергии
Распределительные сетевые компании
ATS, JSC CFR and the seller of
6%
electricity and capacity.
44%
Потребители (крупный бизнес – ТЭК,
металлургия, строительство и т.п.)
C
A
B
Since 01.01.2011, Federal Grid
has been purchasing electricity
and capacity at free (non-
regulated) prices in accordance
with the wholesale market’s
rules. Purchases of electricity and
capacity on the wholesale market
for compensation of losses in
the non-pricing zones are made
under quadripartite contracts by
and between JSC FGC UES, JSC
50%
The price of electricity and
capacity that Federal Grid
purchased to compensate for the
losses, in 2014 RUB11.81 billion
net of VAT, including RUB4.15
billion (net of VAT) for electricity
and RUB7.66 billion for capacity
(net of VAT).
Number of Process Disturbances Caused by Employee Errors
1 The “last mile” principle is a form of cross-subsidisation where large industrial customers that are connected directly to Federal Grid Company’s transmission grids
pay an additional tariff for distribution grids of IDGCs to which some of the Company’s capacity (the “last mile”) are leased.
61
23
19
4,858
6,000
5,000
4,000
3,000
2,000
1,000
3,565
3,090
2,768
2,042
2010
2011
2012
2013
2014
57
12
39
9
19
4
2013
18
4
2014
2010
2011
2012
All employees
Operatingemployees
Rate of Process Disturbances Caused by Operating Employee Errors
0,032
0,020
0,033
0,012
0,026
0,008
2010
2011
2012
2013
2014
0,016
0,003
0,014
0,003
Таrget
Actual
A
B
%
K
C
D
E
F
G
H
I
J
A
B
C
D
E
F
G
H
I
J
K
ОАО «Тюменьэнерго»
ОАО «МРСК Центра»
ОАО «Ленэнерго»
ОАО «Кубаньэнерго»
ОАО «Московская объединенная электросетевая компания»
9,18%
ОАО «МРСК Урала» - «Свердловэнерго»
ОАО «Дальневосточная распределительная сетевая компания»
3,07%
ОАО «МРСК Урала» - «Челябэнерго»
ОАО «РУСАЛ Красноярский алюминиевый завод»
ОАО «МРСК Центра и Приволжья» - «Нинжновэнерго»
Прочие
9,72%
9,65%
4,48%
4,40%
3,27%
3,01%
2,21%
2,14%
48,87%
Динамика удельной аварийности на объектах ФСК
3.01
2.52
2.13
1.79
1.47
2010
2011
2012
2013
2014
3,260
2,871
2,596
2,286
1,954
2010
2011
2012
2013
2014
СтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсонал
530,000
520,000
510,000
500,000
490,000
480,000
470,000
460,000
450,000
Electricity losses in UNEG, %
Supply of Electricity from UNEG, mln kWh
4.72
517,131
519,983
515,250
4.56
509,287
4.43
4.24
4.28
493,570
4.13
468,302
2009
2010
2011
2012
2013
2014
5.00%
4.80%
4.60%
4.40%
4.20%
4.00%
3.80%
3.60%
3.40%
3.20%
3.00%
A
B
%
%
K
C
D
E
F
G
H
I
J
A
Share of Federal Grid’s Largest Customers in Terms
9,72%
of Revenues from Electricity Transmission Services, 2014
9,65%
ОАО «Тюменьэнерго»
ОАО «МРСК Центра»
B
ОАО «Московская объединенная электросетевая компания»
9,18%
JSC Tyumenergo
ОАО «МРСК Урала» - «Свердловэнерго»
JSC IDGC Centre
ОАО «Ленэнерго»
JSC MOESK
ОАО «Кубаньэнерго»
JSC JDGC Ural-Sverdlovenergo
ОАО «Дальневосточная распределительная сетевая компания»
3,07%
JSC Lenenergo
ОАО «МРСК Урала» - «Челябэнерго»
JSC Kubanenergo
ОАО «РУСАЛ Красноярский алюминиевый завод»
JSC Far East Distribution Grid Company
ОАО «МРСК Центра и Приволжья» - «Нинжновэнерго»
K
JSC JDGC Ural-Chelyabenergo
Прочие
JSC RUSAL Krasnoyarsk Aluminium Plant
JSC IDGC Centre and Volga-Nizhnovenergo
Others
C
D
E
F
G
H
I
J
A
B
C
D
E
F
G
H
I
J
K
9.72%
4,48%
9.65%
4,40%
9.18%
3,27%
4.48%
4.40%
3,01%
3.27%
2,21%
2,14%
3.07%
48,87%
3.01%
2.21%
2.14%
48.87%
A
%
C
B
A
B
C
Объекты по производству электроэнергии
6%
Распределительные сетевые компании
Потребители (крупный бизнес – ТЭК,
металлургия, строительство и т.п.)
44%
50%
4,858
6,000
5,000
4,000
3,000
2,000
1,000
3,565
3,090
2,768
2,042
2010
2011
2012
2013
2014
2010
2011
All employees
61
19
57
12
Динамика удельной аварийности на объектах ФСК
Among the Company’s branches, the largest volume of electricity is supplied by MES Centre (24%), MES Siberia
(16%) and MES Ural (14%).
Operating Results of Federal Grid Company in 2014
3.01
3,260
2,871
Federal Grid
2,596
2,286
1,954
Supply of Electricity* million kWh
2.52
2.13
Electricity Losses
Million kWh
1.79
515,250
21,261
* Supply of electricity from the grid network to customers and related territorial network organisations within balance sheet and operational attribution
2010
2011
2012
2013
Electricity Supply to Neighbouring Countries
2010
2011
2012
2013
2014
Number of Process Disturbances Caused by Employee Errors
2010
2011
2012
2013
2014
%
1.47
2014
4.13%
Growth
2014/2013
Net supply of electricity via UNEG to neighbouring countries
(according to WECM’s data), million kWH
15,716
19,285
15,769
12,974
10,572
- 18.5%
Reducing Electricity Losses
39
19
Actual Electricity Losses in 2013-2014
4
18
4
2014
Operatingemployees
2013
Rate of Process Disturbances Caused by Operating Employee Errors
2010
2011
2012
TECHNOLOGICAL CONNECTION
Client-Oriented Approach in Developing
High-Quality Services
Technological connection is a service
package which the Company offers to con-
nect electricity consumers’ power receiv-
ers, electricity producing facilities and grid
facilities to Federal Grid’s electric grids.
We provide technological connection
services to new and existing customers
if the latter need to change the operating
parameters of their power facilities. Our
objective is to synchronise the develop-
ment of industry across the country with
the potential of the backbone electric grid
complex and to prevent the risk of excess
investment.
Management Board that is designed
to increase the efficiency of such
operations and increase utilisation of
transformer capacity.”
The Company’s activities on
technological connection in recent
years have been loss-making.
What are the possibilities for
changing this situation?
“If you look at technological
connection as a separate business
process, it would inevitably be
loss-making, since for the actual
connection of a consumer in most
cases you need significant capital
expenditure, including those relating
to the changes in the grid’s topology,
increase in transformer capacity and
schemes of external power supply.
However, technological connection is
a comprehensive service and should
be looked at in the context of Federal
Grid’s core activity, i.e. transmission
of electricity via trunk grids. Since
completed connection projects
lead to contractual relations with
customers in respect of electricity
transmission, in the medium- and
long-term, the connection activities
bring profit.
Moreover, in order to increase
revenues from technological
connection services, we are
implementing a plan approved by the
Alexey Molsky
Deputy Chairman of the Federal
Grid’s Management Board
9
2012
Actual electricity losses in the Company’s
2013
grids in 2014 amounted to 21,261 million
kWh, down by 1,001 million kWh compared
to the previous year. The relative level
of 2014 losses was 4.13% of electricity
supplied by the grid. As compared to 2013,
it decreased by 0.15 percentage points and
for the preceding 5-year period, by 0.43
percentage points. The reduction of losses
was driven by the optimum load of the
transmission grid and by measures taken
as implementation of the programme for
reducing electricity losses.
0,020
0,032
2010
The measures to reduce electricity losses
for the reporting period were approved as
part of the Programme for Energy Saving
and Improving Energy Efficiency of Feder-
al Grid Company. They were implemented
in three key areas:
Таrget
2014
Growth
2014/2013
In 2014 Federal Grid signed 2261 agree-
ments for technological connection with
consumers, distribution grid companies
and generation companies, down by
65% from 2013. The key factor contrib-
uting to the decrease of the number of
agreements signed was the regulatory
limitation in respect of the applications
for technological connection for voltage
class below 110 KW and the economic
situation in Russia.
million kWh
22,526
22,553
21,946
22,262
21,261
- 1,001
Key Indicators for Technological Connection
0,033
%
4.56
4.43
0,026
4.24
4.28
4.13
0.15 p p
2010
2011
2012
2013
2014
• optimisation of scheme and mode pa-
0,012
0,008
2011
rameters in the process of the running
and operational management of electric
grids;
2012
0,016
• construction, reconstruction and devel-
opment of electric grids, and commis-
sioning of energy-saving equipment.
2013
2014
0,003
Actual
• cutting of electricity consumption for
substation needs;
As a result of implementing the above meas-
ures, electricity losses were reduced in 2014
by 96.1 million kWh (while the target number
was 90.1 million kWh)
0,014
0,003
Number of counterparties – new technological
connection
252
149
315
652
226
Capacity as per Technological Connection
Agreements MW
9,936.5
4,375.9
6,580.8
14,993
4,828.1
1 The number of contracts with direct consumers, regional grid companies and electricity production facilities.
24
25
In the reporting year, the total maximum
capacity for technological connection of
consumers and distribution grid compa-
nies was 3.8 GW, and 1.8 GW for electricity
production facilities.
PERFORMANCE RESULTS / OPERATING PERFORMANCE 530,000
520,000
510,000
500,000
490,000
480,000
470,000
460,000
450,000
530,000
520,000
510,000
500,000
490,000
480,000
470,000
460,000
450,000
Electricity losses in UNEG, %
Supply of Electricity from UNEG, mln kWh
4.72
517,131
519,983
515,250
4.56
509,287
4.43
4.24
4.28
493,570
4.13
468,302
2009
2010
2011
2012
2013
2014
Electricity losses in UNEG, %
Supply of Electricity from UNEG, mln kWh
5.00%
4.80%
4.60%
4.40%
4.20%
4.00%
3.80%
3.60%
3.40%
3.20%
3.00%
530,000
520,000
4.72
Electricity losses in UNEG, %
4.56
517,131
519,983
515,250
Supply of Electricity from UNEG, mln kWh
509,287
510,000
A
500,000
4.72
490,000
480,000
4.56
450,000
2009
468,302
515,250
5.00%
4.80%
Client-Oriented Approach
4.43
517,131
509,287
519,983
4.24
4.28
4.60%
4.13
4.40%
493,570
Federal Grid focuses its
efforts on increasing the
4.43
transparency and accessibility
A
of the technological connection
B
to the grids. The Company is
C
implementing an action plan
4.24
Потребители (крупный бизнес – ТЭК,
металлургия, строительство и т.п.)
Объекты по производству электроэнергии
4.28
“Increasing the Accessibility
of the Power Infrastructure”
approved by the Russian
6%
4.00%
Government, which provides for
reduced timelines and stages
3.80%
of technological connection.
4.20%
44%
50%
4.13
Распределительные сетевые компании
3.60%
2010
2011
2012
2013
2014
3.40%
3.20%
3.00%
2009
2010
2011
2012
2013
2014
C
470,000
%
%
460,000
468,302
493,570
B
5.00%
4.80%
4.60%
4.40%
4.20%
4.00%
3.80%
3.60%
3.40%
3.20%
3.00%
A
B
%
C
D
E
F
G
H
I
J
A
B
C
D
E
F
G
H
I
K
ОАО «Московская объединенная электросетевая компания»
9,18%
ОАО «МРСК Урала» - «Свердловэнерго»
ОАО «Тюменьэнерго»
ОАО «МРСК Центра»
ОАО «Ленэнерго»
ОАО «Кубаньэнерго»
ОАО «Дальневосточная распределительная сетевая компания»
3,07%
ОАО «МРСК Урала» - «Челябэнерго»
ОАО «РУСАЛ Красноярский алюминиевый завод»
Electricity losses in UNEG, %
Supply of Electricity from UNEG, mln kWh
ОАО «МРСК Центра и Приволжья» - «Нинжновэнерго»
J
9,72%
9,65%
4,48%
4,40%
3,27%
3,01%
2,21%
2,14%
48,87%
29
Прочие
517,131
519,983
515,250
5.00%
4.80%
4.60%
4.40%
4.56
509,287
B
4.43
K
4.72
530,000
520,000
510,000
500,000
C
490,000
IMPROVING RELIABILIT Y
480,000
493,570
D
A
B
A
470,000
%
Reliability as a Strategic Priority
C
468,302
460,000
B
3,260
D
E
2,871
2010
2,286
%2009
Ensuring reliable electricity supply to
450,000
2,596
our consumers is one of our priorities.
K
Maintaining a high level of reliability and
F
1,954
reducing the volume of uncovered demand
G
for electricity have been established as
H
strategic objectives by the Long-Term Pro-
I
gramme for the Development of Federal
Grid for 2015-2019. Our Company strives
to ensure continuous growth and improve-
ment and makes significant efforts to in-
crease the reliability of UNEG’s operation.
2012
2011
2013
2014
K
J
2010
A
A
B
C
ОАО «Тюменьэнерго»
9,72%
Динамика удельной аварийности на объектах ФСК
4.24
9,65%
ОАО «МРСК Центра»
4.00%
4.28
4.20%
4.13
ОАО «Московская объединенная электросетевая компания»
3.80%
ОАО «Дальневосточная распределительная сетевая компания»
3,07%
E
C
A
D
E
2.52
3.40%
3.60%
9,65%
9,72%
F
G
H
2011
I
ОАО «МРСК Урала» - «Свердловэнерго»
D
ОАО «Тюменьэнерго»
E
ОАО «Ленэнерго»
ОАО «МРСК Центра»
3.01
F
ОАО «Кубаньэнерго»
ОАО «Московская объединенная электросетевая компания»
G
ОАО «МРСК Урала» - «Свердловэнерго»
In the reporting year, we continued to take
regular efforts to reduce the accident rate
H
2013
2012
ОАО «Ленэнерго»
and have achieved visible results in this
J
I
ОАО «Кубаньэнерго»
area.
J
ОАО «МРСК Центра и Приволжья» - «Нинжновэнерго»
3,07%
ОАО «Дальневосточная распределительная сетевая компания»
As compared with the previous year, the
2014
2012
K
3,01%
ОАО «МРСК Урала» - «Челябэнерго»
accident rate at Federal Grid’s facilities
went down by 14.5%, although the mainte-
nance workload (number of electric facili-
ties) has been consistently increasing.
3.00%
In
1.79
2014 accident
rate at Federal
Grid’s facilities
decreased compared to
the previous year by
2013
18%
ОАО «МРСК Центра и Приволжья» - «Нинжновэнерго»
ОАО «РУСАЛ Красноярский алюминиевый завод»
ОАО «РУСАЛ Красноярский алюминиевый завод»
ОАО «МРСК Урала» - «Челябэнерго»
4,40%
1.47
3,27%
Прочие
2,21%
9,18%
4,48%
2,14%
3.20%
2014
2010
2011
2.13
H
G
F
J
I
3,01%
2,21%
2,14%
48,87%
9,18%
4,48%
4,40%
3,27%
K
K
Прочие
48,87%
Динамика удельной аварийности на объектах ФСК
Number of Process Disturbances Caused by Employee Errors
Breakdown of Federal
Grid’s Technological
Connection Services
(based on Signed
Agreements)
A
B
C
Electricity production
facilities
Distribution grid companies
44%
A
C
Consumers (large
businesses in Fuel &
Energy, Metallurgy,
4,858
Constructions and others
6,000
5,000
%
50%
A
6%
In 2014, Federal Grid met the targets
established by the FTS of Russia relating to
the quality of services provided in respect of
technological connection to the Company’s
electric grids. The service quality indicator
was 1.152 (whereas the target was 1.2040).
61
Service Quality Indicators Set by FTS for 2011–2014
(order No. 486-e/3 dated 28 December 2010)
Объекты по производству электроэнергии
A
Regulation period
19
6%
Распределительные сетевые компании
2010
2011
2012
2013
44%
2014
2011
Quality indicator for technological connection services
Потребители (крупный бизнес – ТЭК,
металлургия, строительство и т.п.)
1.2599
50%
1.2410
All employees
1.2224
Объекты по производству электроэнергии
6%
1.2040
Operatingemployees
2,871
B
B
C
3,565
4,000
C
3,000
2,000
%
2,042
3,090
B
A
B
C
2,768
Распределительные сетевые компании
Потребители (крупный бизнес – ТЭК,
металлургия, строительство и т.п.)
44%
50%
C
57
12
%
3,260
3,260
2012
Total accidents at Federal
Grid’s facilities
Accident rate at Federal Grid’s
facilities
A
Объекты по производству электроэнергии
Динамика удельной аварийности на объектах ФСК
6%
3,260
39
2,871
9
B
2,596
B
C
19
4
2,286
2013
3.01
Распределительные сетевые компании
Потребители (крупный бизнес – ТЭК,
металлургия, строительство и т.п.)
–16%
1,954
2014
18
4
3.01
44%
2.52
50%
–15%
2.13
–16%
–18%
1.79
1.47
Rate of Process Disturbances Caused by Operating Employee Errors
2010
2011
2,596
2.52
2.13
2,286
1,954
2012
1.79
2013
1.47
2014
2010
2011
2012
2013
2014
Number of Process Disturbances Caused by Employee Errors
2010
2011
0,032
2012
2013
0,033
2014
2010
2011
2012
2013
2014
Federal Grid’s Major Technological Connection Projects in 2014
1,000
2010
2011
2012
2013
2014
Number of Process Disturbances Caused by Employee Errors
0,020
0,012
0,026
0,008
Consumer
JSC OGK- 1, Tyumen oblast
CJSC Nizhnevartovskaya Hydro Power Station, Tyumen oblast
6,000
JSC Fortum, Tyumen oblast
5,000
4,858
JSC Kuzbassenergo, Kemerovo oblast
4,000
6,000
LUKOIL-Astakhanenergo LLC, Astrakhan oblast
4,858
3,000
5,000
Nizhny Novgorod Branch of JSC TGK-6, Nizhny Novgorod oblast
2,000
4,000
2,042
3,565
Novokuznetskaya GTPP
3,090
2,768
2010
CCGT-235 of Tsentralnaya Boiler Unit
3,565
Novogorkovskaya Heat and Power Plant
All employees
JSC Mobilnye GTES, Krasnodar Territory
3,000
2010
1,000
3,090
2011
2,768
2012
2013
2014
Power Plant (90 MW of capacity)
2,000
2,042
EvroKhim – VolgaKaliy LLC, Volgograd oblast
1,000
Mining and Processing Works
(at the Gremyachinsk potash salts deposit)
Lafarge GEO LLC, Kaluga oblast
Cement Processing Plant
2010
2011
2012
2013
2014
Nefteyugansk Branch of Salym Petroleum Development N.V, Tyumen oblast
Salym Field
JSC RusHydro, Samara oblast
Zhiguli Hydro Power Station
JSC Kamensk Uralsky Metallurgical Works, Sverdlovsk oblast
Metallurgical works
235
188
90
86.5
55.5
40
31.5
20
Facility
Capacity,
MW
Urengoyskaya Hydro Power Station
61
490
57
Number of Process Disturbances Caused by Employee Errors
6,000
Таrget
Nizhnevartovskaya Hydro Power Station,
Power Unit No 3.1
CCGT-3, Nyaganskaya Hydro Power Station
61
2010
431
19
422
5,000
4,858
4,000
12
57
2011
3,000
39
9
3,090
19
4
3,565
2013
2,768
2010
2011
2012
Undersupply of electricity,
MWh
2010
2013
2014
2011
Actual
2012
39
2,042
9
19
All employees
298
2,000
Operatingemployees
12
Rate of Process Disturbances Caused by Operating Employee Errors
19
4
2011
1,000
2012
2010
2011
2012
2013
2013
2014
0,016
61
57
0,003
2012
The reliability of Federal Grid’s grids has been increasing every
year thanks to the introduction of new equipment and improve-
ment of skills and professionalism of the maintenance person-
nel. Undersupply of electricity to consumers (as per reports on
the investigation of accidents) is consistently low and tends to
decline.
2013
19
2010
2011
12
2014
18
4
2014
The insignificant increase in undersupply observed during the
reporting year was due to ground fire outbreaks outside the
exclusion zone of 500 kV Amurskaya – Kheykhe (MES East) OHL
during the period from 14 April to 2 May 2014. The level of the
above mentioned undersupply represented 55% of the total Fed-
eral Grid’s undersupply for the year.
2014
18
4
All employees
Operatingemployees
Operatingemployees
Rate of Process Disturbances Caused by Operating Employee Errors
0,032
0,033
Federal Grid’s Technical Policy
0,032
2010
0,020
Таrget
Implementation of the
0,020
Unified Technical Policy
approved by the Board
of Directors of Federal
Grid in 2013 shall help us
improve the electric grid
2010
Таrget
0,026
0,008
2012
0,026
0,008
0,016
0,003
2013
0,016
0,003
0,014
0,003
2014
0,014
0,003
2013
2014
0,012
0,033
0,012
Actual
2011
complex’s efficiency,
reduce its operational cost,
strengthen the system-wide
reliability of UNEG and meet
the increasing demand
Actual
for electricity.
2011
2012
A
B
%
C
D
E
F
G
H
I
J
A
B
C
D
E
F
G
H
I
J
K
ОАО «Московская объединенная электросетевая компания»
9,18%
ОАО «МРСК Урала» - «Свердловэнерго»
ОАО «Тюменьэнерго»
ОАО «МРСК Центра»
ОАО «Ленэнерго»
ОАО «Кубаньэнерго»
ОАО «Дальневосточная распределительная сетевая компания»
3,07%
ОАО «МРСК Урала» - «Челябэнерго»
ОАО «РУСАЛ Красноярский алюминиевый завод»
ОАО «МРСК Центра и Приволжья» - «Нинжновэнерго»
Прочие
9,72%
9,65%
4,48%
4,40%
3,27%
3,01%
2,21%
2,14%
48,87%
Динамика удельной аварийности на объектах ФСК
2,871
2,596
2,286
1,954
3.01
2.52
2.13
1.79
1.47
2010
2011
2012
2013
2014
Rate of Process Disturbances Caused by Operating Employee Errors
0,032
0,020
0,033
0,012
0,026
0,008
2010
2011
2012
2013
2014
0,016
0,003
0,014
0,003
Таrget
Actual
0,014
0,003
39
9
2012
19
4
2013
18
4
2014
26
27
PERFORMANCE RESULTS / OPERATING PERFORMANCE Fixed Assets Renovation Programme
The Fixed Assets Renovation Programme
is aimed at ensuring the reliable and
efficient functioning of the electric
grid complex. It was included in the
Company’s Investment Programme for
2015-2019 approved by the Order of the
Russian Energy Ministry No 807 dated
31.10.2014.
The draft of the Renovation Programme
for 2015-2019 stipulates financing of
RUB 111.27 billion, commissioning of
facilities with a total capacity of 12.395
MVA and reconstruction of 788,61 km of
transmission lines.
The Company energised 12 completely
reconstructed facilities and 228 partially
reconstructed facilities and comprehen-
sive investment programmes.
For 2015, the Renovation Programme
envisages commissioning of 535 MVA of
capacity and reconstruction of 1.7 km of
electricity transmission lines for the total
amount of RUB 22.43 billion.
Most Significant Reconstruction Projects Implemented in 2014
330 kV Vladikavkas-2 SS
Reconstruction and
re-equipment of
500 kV Tikhoretskaya SS
500 kV Kuybyshevskaya SS
Substation 330 kV Vladikavkaz-2 provides electric power supply for large industrial enterprises of
the Republic of North Ossetia, including JSC Elektrotsink and BOR – Energosbyt LLC and is also
used for transit of power from Stavropol Krai to the Chechen Republic and Dagestan.
In 2014, the reconstruction included replacement of autotransformer AT-3 with the capacity
of 200 MVA.
Substation 500 kV Tikhoretskaya in Krasnodar Krai is a hub facility connecting the power system
of Kuban with Stavropolskaya HPP , Novocherkasskaya HPP and Volgodonskaya NPP. The
comprehensive reconstruction of this facility (in 4 stages) significantly increases reliability of power
supply to consumers in the Krasnodar Krai.
In 2014, as part of the reconstruction, new autotransformers with the capacities of 125 МVА and 25
МВА were commissioned. As a result, the capacity of this facility increased to 2,641 MVA.
Substation 500 kV Kuybyshevskaya with installed capacity of 1,602 MVA supplies over 70% of
Samara oblast with electric power and links Samara oblast’s power system with such power
facilities as Zhigulevskaya HPP, Zainskaya HPP and Balakovskaya NPP.
In 2014, after reconstruction two autotransformer groups with the capacity of 801 MVA each were
commissioned, which help significantly increase reliability of power supply in the region and create
conditions for connecting new customers to the power system.
What is meant by reliability in
the context of Federal Grid’s
core operations – transmission
of electricity and how does the
Company ensure reliability?
“Reliability in our work means
uninterrupted power supply
provided to our consumers,
reduction of electricity losses
in the grids and provision of our
customers with high-quality
services.
Maintaining a high level of reliability
is one of the goals of National Grid’s
long-term development and we
make significant efforts to meet
Vladimir Dikoy
Deputy Chairman of the
Management Board, Chief Engineer,
member of the Management Board
of Federal Grid Company
this goal. Reliability is ensured both
by modernisation of Federal Grid’s
infrastructure and by effective and
efficient technical maintenance and
repair of electric grid equipment.
In 2014, we invested over RUB
11 billion in implementing these
measures.
Another important area of ensuring
reliability is well-coordinated
operation during the so-called
‘special periods’, when the load on
the system is higher due to seasonal
factors and weather and climatic
conditions. First, we prepare for
operation during such periods in
advance and, second, we address
any technological problems in the
grids operation if they arise as
promptly as possible.”
Repairs Programme
The Repairs Programme aims to provide
technical maintenance and repairs at
Federal Grid’s power facilities in order to
ensure that equipment of substations and
high-voltage lines is in good working con-
ditions, that there are no accidents during
the autumn/winter period and to ensure
reliable operation of UNEG as a whole.
Repairs Programme for UNEG facilities
has been developed based on the results
of diagnostics and analysis of technical
condition of the equipment in line with the
relevant regulations and specifications,
instructions of the manufacturers of the
relevant equipment, local conditions
and our experience of operating electric
facilities.
All measures scheduled for mainte-
nance, repairs and diagnostics were
implemented in full:
• We repaired 314 phases of transform-
er equipment, 2,026 on-/off switches,
14,761 phases of disconnectors and 124
compressors
In total, in 2014 we spent RUB 11.7 billion
on technical maintenance and repairs.
• We cleared 49,573 hectares of high-volt-
age electricity transmission line paths
• We replaced 235,1112 insulators at
high-voltage lines, 269 of ground-wire
cables and 183 supports for high-volt-
age transmission lines
RUB
11.7
bln
were spent in
total on technical
maintenance and
repairs
Operation during Special Periods
Weather and climatic conditions make a
strong impact on Federal Grid’s opera-
tions. therefore, we prepare electric grid
equipment and facilities in advance for
operation under low temperatures and
peak loads occurring during the autumn/
winter period and in case of natural
anomalies during periods of river floods,
fires and thunderstorms. These are called
“special periods” in our operation.
Using the experience of special periods in
previous years, the Company developed
and approved mandatory measures re-
lated to the preparation for and operation
during special periods for all Federal
Grid’s branches – MESs and PMES, as
well as additional measures to ensure the
reliable operation of electric grid facilities
taking into account local conditions.
The areas of efforts to ensure reliable op-
eration of Federal Grids facilities during
special periods are as follows:
• Federal Grid operates on a permanent
basis 50 duty stations, whose objective
is to ensure reliable operation of the
Company’s facilities during any emer-
gency or other contingency situations
and in cases where there is a threat of
disruption of the course or efficient or-
ganisation of emergency and recovery
work at such facilities.
• Branch representatives take part in the
work of duty stations set up in the fed-
eral subjects of the Russian Federation
to electricity supply safety.
Ensuring Reliable Power Supply in 2014
During the reporting year,
Federal Grid ensured reliable
power supply of sports-related
and infrastructure facilities
during 22nd Olympic Games
and 11th Paralympic Winter
games in Sochi, functioning of
electric grid facilities used by
the St. Petersburg International
Economic Forum and other big
events. The Company met all
of its obligations and related to
providing reliable power supply to
its customers.
tors, which are involved, whenever
necessary, in emergency and recovery
efforts at the grid facilities. It also
entered into 65 agreements with
RosHydroMet and 89 agreements with
the Russian Ministry of Emergency
Situations.
• A sufficient emergency reserve has
been created including a pool of large
units.
• The Company and subsidiaries of JSC
Russian Grids arranged regular sharing
of information about the existing emer-
gency reserve and its locations, the
information of its status and additions
to the reserve is constantly updated.
• The status of transmission lines is
video-archived during their inspections,
walk-arounds and fly-arounds.
• The Company has 544 back-up sources
of power with total capacity of 169.5.
a certificate No 70-2014 confirming the
Company’s readiness for operation during
the 2014-2015 autumn/winter period.
Federal Grid’s
own resources for
emergency and
recovery work
580
Emergency teams
including in total
5,700people
28
29
• Our Company entered into 120 agree-
ments on co-operation with contrac-
On 7 November 2014, the Commission
of the Russian Ministry of Energy issued
PERFORMANCE RESULTS / OPERATING PERFORMANCE Operational Process Control
DE VELOPMENT OF COMMUNICATION NE T WORK S AND IT SYSTEMS
Information Technology for Higher Effectiveness
Operational process control in the Company
is aimed at ensuring the reliable operation
of the UNEG facilities and adhering to the
operating modes that are set by the System
Operator’s control centres. Our objective is to
comply with the quality and safety require-
ments when we operate the UNEG facilities.
In 2014 all centres for the management
of grids at branches of Federal Grid –
PMESs – received operational roles
relating to the management of electric
grid facilities that are within the scope of
PMESs’ operation and that were not part
of the dispatch-management system.
The successful implementation of opera-
tional process control in 2014 is attested
by the evolution of such indicators as the
rates of process disturbances caused by
operating employee errors and outage
schedule implementation rate.
Reliability of UNEG, building a smart grid
and effective management of the Com-
pany’s business are based on the use of
advanced and modern information and
communications technology.
Our Company has been building the Energy
System’s Unified Process Communications
Network (ESUPCN), which is designed
to manage the technological processes
involved in the production, transmission
and distribution of electricity. The ESUPCN
focuses on the digitalisation of the network
and on making it smart.
In order to improve observability of
the electric grid facilities and dispatch
management, the strategic priority is to
digitalise communication channels of the
automated dispatch management system
While implementing its IT
strategy in accordance with
the import substitution
programme, Federal Grid
Company prefers to use
Russian-made equipment
and software at all levels of
technological management.
Digitalisation of the
Динамика уровня цифровизации
Federal Grid’s Electric
электросетевых объектов ФСК
Grid Facilities
63%
69%
47%
80%
60%
40%
20%
0%
Общая протяженность ВОЛС ФСК,
тыс. км
Динамика ввода систем
высокочастотной связи
на подстанциях ЕНЭС, шт.
Динамика ввода систем
коммутации телефонной
связи на подстанциях ЕНЭС, шт.
54.0%
48.9%
40.3%
574
436
367
88
83
113
800
600
400
200
0
120
80
40
0
2012
2013
2014
2012
2013
2014
2012
2013
2014
2012
2013
2014
(ADMS) and automated process control
system (APCS) at the level “Object – Dis-
patch Centre.”
Динамика объема финансирования инвестиций,
млрд руб.
Number of Process Disturbances Caused by Employee Errors
61
57
39
Operating employees
All employees
19
12
9
2010
2011
2012
19
18
4
2013
4
2014
Rate of Process Disturbances Caused by Operating Employee Errors
0.032
0.033
0.026
0.020
0.012
Structure of the Uniform Communications Network in the Electric
Power Industry and Technologies Employed in This Network
Динамика уровня цифровизации
электросетевых объектов ФСК
Динамика введения на подстанциях
ЕНЭС автоматизированных систем
управления технологическими процессами, шт.
Динамика ввода систем
высокочастотной связи
на подстанциях ЕНЭС, шт.
Общая протяженность ВОЛС ФСК,
Total Length of FOCN,
тыс. км
thousand kilometers
83
Динамика введения на подстанциях
ЕНЭС систем сбора и передачи
информации, шт.
Fibre-optic communications
network (FOCN)
69%
80
63%
This is the basic communications network
for the energy system. It is based on the
60
use of a fibre-optic cable which is sus-
pended on overhead electricity transmis-
sion lines. This helps to make process con-
40
trol of the electric network more efficient
and improve reliability of power supply to
20
customers.
40%
20%
60%
71
36
40.3%
47%
2012
0
2013
2014
2012
2013
2014
0%
200
54.0%
150
48.9%
109
100
50
80%
60%
40%
20%
0%
Таrget
Actual
Динамика уровня цифровизации
электросетевых объектов ФСК
0.016
0.014
0.008
80%
0.003
63%
69%
0.003
Общая протяженность ВОЛС ФСК,
High-frequency (HF)
тыс. км
communications via electricity
800
transmission lines
Динамика объема финансирования инвестиций,
млрд руб.
Commissioning of HF
Communications Systems at
UNEG Substations
In 2014
2012
Динамика ввода систем
высокочастотной связи
на подстанциях ЕНЭС, шт.
2013
2014
0
2012
In 2014
Federal Grid completed construction of FOCNs
on transmission lines at the following facilities:
800
170
600
144
• 368 km – FOCN Urengoi Hy-
574
dropower Plant – Mangazeya
SS, Kartopia – Nyagan
400
Hydropower Plant SS in the
responsibility area of MES
Western Siberia branch
200
• 675 km – FOCN Kurgan SS –
Vityaz SS, Voskhod SS– Vit-
yaz SS in the responsibility
areas of MES Ural, Western
2012
Siberia and Siberia branches
2013
2014
0
• 225 km – FOCN Kalin-
436
inskaya Nuclear Power
Plant – Novaya SS –
Konakovo Hydropower
Plant – Opytnaya SS in
the responsibility area
of MES Centre branch
367
• 98 km – FOCN Gatchina
SS– Luga SS in the re-
sponsibility area of MES
North-West branch
2013
2014
Динамика ввода систем
коммутации телефонной
связи на подстанциях ЕНЭС, шт.
In the reporting year,
Federal Grid in-
stalled 367 half-sets
of HF communica-
tions. The Company’s
Динамика ввода мощностей
facilities now have
11,690 such half-sets.
113
83
80
120
As part of new con-
struction and renova-
tion of the electric grid
facilities, Federal Grid
88
upgraded some HF
communications system
facilities and decom-
missioned some other
equipment because
FOCNs were operation-
alised.
40
0
2012
2010
2011
60%
47%
Динамика введения на подстанциях
2012
ЕНЭС систем сбора и передачи
информации, шт.
2013
40%
20%
60%
2014
Динамика введения на подстанциях
40.3%
ЕНЭС автоматизированных систем
управления технологическими процессами, шт.
20%
40%
54.0%
This process communications network
48.9%
uses phase wires and cables of overhead
transmission lines to carry signals, such
as voice, telemechanics data, information
from the automated systems of electric
power control and recording (ASEPCR),
and commands for relay protection and
emergency automatic equipment that are
0
Динамика ввода систем
necessary for process control of electric
2013
170
power facilities in the normal and emer-
высокочастотной связи
gency modes.
на подстанциях ЕНЭС, шт.
2012
2014
600
400
200
167.0
C
574
436
367
184.7
179.9
149.7
Outage Schedule Implementation Rate
80
71
Динамика уровня цифровизации
электросетевых объектов ФСК
60
95
98.6
98.5
95
36
98.5
95
80%
40
20
63%
83
0%
2012
2013
200
2014
150
0%
144
98.8
Общая протяженность ВОЛС ФСК,
тыс. км
100
Таrget
109
95
69%
50
Динамика объема финансирования инвестиций,
млрд руб.
Telephone communications
network
Динамика введения на подстанциях
ЕНЭС систем сбора и передачи
информации, шт.
40%
20%
60%
47%
0
2012
Динамика введения на подстанциях
ЕНЭС автоматизированных систем
управления технологическими процессами, шт.
40.3%
2013
2014
40%
48.9%
20%
60%
Actual
0
54.0%
2012
2013
574
600
400
2014
436
Based on the radial and hub network
principle, the power industry’s telephone
communications network provides for
interaction with the process network of
the System Operator and other electricity
B
market participants.
367
120
80
2010
40
184.7
179.9
2013
2012
2014
Динамика ввода систем
90.9
коммутации телефонной
связи на подстанциях ЕНЭС, шт.
A
B
Commissioning of Telephone
Switching Systems at UNEG
Substations
A
%
113
C
88
83
2013
Динамика ввода мощностей
2012
2011
2014
Структура капитальных вложений за 2014 г., млрд руб.
2013
2014
18.50
17.83
In 2014
11.84
Новое строительство
Техническое перевооружение и реконструкция 24.28 / 27%
nication, DECT
wireless commu-
2.96
nications systems
and loudspeaker
and radio searching
communications
systems.
Transformer capasity, thousand MVA
Federal Grid installed
113 PABXs at the
Прочее
electric grid facilities
of its branches, as
well as systems for
recording operational
personnel commu-
58.35 / 64%
3.64
8.23 / 9%
2010
2012
2011
2.81
Transission lines, thousand km
800
200
167.0
0
60%
40%
20%
0%
120
80
40
0
Динамика ввода систем
коммутации телефонной
184.7
связи на подстанциях ЕНЭС, шт.
167.0
179.9
149.7
88
83
113
90.9
2012
2013
2014
2010
2011
2012
2013
2014
Динамика ввода мощностей
18.50
17.83
11.84
2.81
2.96
3.64
10.79
3.69
9.52
3.12
2010
2011
2012
2013
2014
Transformer capasity, thousand MVA
Transission lines, thousand km
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
108.17
134.86
10.45
40.29
115.24
140
120
100
80
60
9.52
40
20
0
10.79
3.69
2013
2014
9.04
38.84
60.29
3.12
84.12
70.64
60.78
63.64
2015
2016
2017
2018
New Construction
Technical upgrade and reconstruction
2019
Other
9.78
103.54
101.87
34.82
7.62
35.14
8.18
30.05
31
17.83
18.50
0
2012
2013
2014
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
83
0%
71
2011
2012
2012
2013
200
2014
2013
0%
2014
170
2012
2013
2014
144
109
Динамика объема финансирования инвестиций,
30
млрд руб.
150
100
50
0
80
60
40
20
0
36
200
150
100
50
0
83
71
36
80
60
40
20
0
Динамика введения на подстанциях
Динамика введения на подстанциях
2012
2013
2014
ЕНЭС систем сбора и передачи
ЕНЭС автоматизированных систем
информации, шт.
управления технологическими процессами, шт.
2012
2013
2014
C
Структура капитальных вложений за 2014 г., млрд руб.
2010
2011
Динамика ввода мощностей
2013
2012
2014
2010
2.81
120
2.96
108.17
3.64
Техническое перевооружение и реконструкция 24.28 / 27%
Transformer capasity, thousand MVA
Transission lines, thousand km
A
184.7
179.9
167.0
%
149.7
90.9
B
A
B
C
Новое строительство
Прочее
11.84
18.50
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
17.83
20
70.64
60.78
63.64
2.81
2.96
108.17
2010
2011
134.86
3.64
10.79
10.45
40.29
2013
9.04
2012
38.84
2015
2016
2017
2018
3.69
115.24
3.12
9.78
103.54
New Construction
Technical upgrade and reconstruction
101.87
2019
Other
2012
2013
2014
2012
2013
2014
A
Структура капитальных вложений за 2014 г., млрд руб.
2010
2011
2012
2013
2014
Техническое перевооружение и реконструкция 24.28 / 27%
Transformer capasity, thousand MVA
Transission lines, thousand km
A
B
C
Новое строительство
Прочее
58.35 / 64%
8.23 / 9%
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
20
60.29
84.12
70.64
60.78
63.64
108.17
134.86
10.45
40.29
115.24
2015
2016
2017
2018
9.78
103.54
101.87
New Construction
Technical upgrade and reconstruction
34.82
7.62
35.14
8.18
30.05
2019
Other
A
C
%
B
Структура капитальных вложений за 2014 г., млрд руб.
Техническое перевооружение и реконструкция 24.28 / 27%
A
B
C
Новое строительство
Прочее
58.35 / 64%
8.23 / 9%
140
120
100
80
60
40
20
0
9.04
38.84
60.29
84.12
70.64
60.78
63.64
2015
2016
2017
2018
New Construction
Technical upgrade and reconstruction
2019
Other
170
144
109
C
%
B
140
100
2011
80
60
40
0
9.52
2014
34.82
134.86
10.79
10.45
3.69
9.52
115.24
3.12
9.78
103.54
101.87
2014
34.82
7.62
35.14
8.18
30.05
9.04
2012
38.84
60.29
40.29
2013
84.12
7.62
35.14
8.18
30.05
149.7
2012
2013
2014
90.9
140
120
100
80
60
40
0
11.84
58.35 / 64%
8.23 / 9%
PERFORMANCE RESULTS / OPERATING PERFORMANCE Automated Process Control System
PROCUREMENT
2012
2013
2014
2012
2013
2014
2012
2013
2014
2012
2013
2014
Динамика уровня цифровизации
электросетевых объектов ФСК
63%
69%
47%
80%
60%
40%
20%
0%
Общая протяженность ВОЛС ФСК,
тыс. км
54.0%
48.9%
40.3%
35
35
60%
40%
20%
0%
800
600
400
200
0
Динамика ввода систем
высокочастотной связи
на подстанциях ЕНЭС, шт.
Динамика ввода систем
коммутации телефонной
связи на подстанциях ЕНЭС, шт.
574
436
367
88
83
113
120
80
40
0
The automated process control system
(APCS) is a Company-wide system for
the management of UNEG operations and
development, so it integrates the devices
and systems for the automated dispatch,
processing and operational activities of
the Company’s administration and MES /
PMES services.
In 2014, the Company began developing
software & hardware complexes for
Network Management Centres of MES
Siberia and MES East; completed a pilot
project of an integrated APCS for MES
North-West; and implemented measures
to improve observability of UNEG facilities
at 83 substations.
The automated process control
system allows both operational
and non-operational functions
to be performed by Electric
Grid Control Centres, improves
the efficiency of UNEG mode
control by allowing a high
level of observability, prevents
outages and reduces the
time for decision-making
and the likelihood of errors
by operational employees in
emergency situations.
80
60
40
20
0
Installation of Data Input
and Sharing Systems at
UNEG SubstationsДинамика уровня цифровизации
Динамика введения на подстанциях
ЕНЭС систем сбора и передачи
информации, шт.
электросетевых объектов ФСК
63%
47%
36
80%
83
71
60%
40%
20%
0%
2012
2013
2014
2012
2013
2014
2012
2013
2014
Динамика введения на подстанциях
Automated Process Control Systems
ЕНЭС систем сбора и передачи
информации, шт.
Динамика введения на подстанциях
ЕНЭС автоматизированных систем
управления технологическими процессами, шт.
80
Automated process control systems are
built in the process of comprehensive
reconstruction and construction of new
facilities. They help to ensure the utmost
effectiveness of electricity transmission
in the electric grid complex, improve
36
reliability by reducing employees’ errors,
and the transition to using the substations
without operating personnel.
60
40
20
0
83
71
Installation of Automated Process
Control Systems at UNEG Substations
200
150
100
50
0
C
170
144
109
A
%
2012
2013
2014
2012
2013
2014
Transparency and Competitive Procurement
Динамика объема финансирования инвестиций,
млрд руб.
The Company makes purchases proac-
Динамика введения на подстанциях
tively in all regions where it operates. Its
ЕНЭС автоматизированных систем
procurement activities are targeted at
Общая протяженность ВОЛС ФСК,
purchasing the necessary equipment and
управления технологическими процессами, шт.
тыс. км
services on the competitive market within
its corporate investment programme, and
at fulfilling its annual repairs and target
programmes.
The main document which regulates
corporate procurement by Federal Grid
is Regulations on the Procedure for
Regulated Procurement of Goods, Works
and Services. This is a fundamental doc-
ument for the organisation of regulated
procurement on methodological basis,
with up-to-date, competition-based
167.0
170
200
800
54.0%
69%
forms of purchases that are mostly made
through tenders.
Динамика ввода систем
высокочастотной связи
на подстанциях ЕНЭС, шт.
179.9
184.7
It is through the tendering procedures
used for procurement in 2011-2013 that
Federal Grid has managed to achieve
annual cost savings in procurement at the
level of 9-10% per unit.
149.7
600
574
60%
144
48.9%
436
367
90.9
150
100
50
0
109
Principles
40%
20%
0%
40.3%
2012
400
200
0
Key objectives
2013
2014
2012
2013
2014
2012
2013
Competitive
purchasing as
2014
share of total
procurements of
Federal Grid
in 2014
• Openness
Динамика объема финансирования инвестиций,
• Competitiveness
млрд руб.
• Justification
• Optimise the
procurement
management
system on the basis
of best practices in
this field
2010
goods, works and
2011
services, including
by minimising
intermediary
services
• Reduce the
184.7
179.9
167.0
Company’s costs by
saving funds during
the procurement of
149.7
• Supply quality goods,
works and services
to the Company at
minimal costs and
strictly on time
Структура капитальных вложений за 2014 г., млрд руб.
90.9
18.50
In 2014, the Company made competitive purchases to the total amount of RUB86.9 billion, that
made up 92% of total procurement volume of Federal Grid.
Техническое перевооружение и реконструкция 24.28 / 27%
11.84
A
B
C
Новое строительство
Прочее
2014 Regulated Procurements by Type
2011
2010
2013
2012
2014
58.35 / 64%
8.23 / 9%
2.81
2010
92%
140
120
100
80
60
2.96
40
20
2011
108.17
17.83
9.04
38.84
3.64
60.29
Динамика ввода мощностей
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
134.86
10.45
40.29
115.24
10.79
9.52
3.69
84.12
34.82
3.12
70.64
9.78
103.54
101.87
7.62
35.14
8.18
30.05
60.78
63.64
Динамика ввода систем
коммутации телефонной
связи на подстанциях ЕНЭС, шт.
Динамика ввода мощностей
120
80
40
0
113
18.50
88
83
11.84
17.83
2012
2.81
2013
2014
2.96
3.64
10.79
3.69
9.52
3.12
2010
2011
2012
2013
2014
Transformer capasity, thousand MVA
Transission lines, thousand km
B
Transformer capasity, thousand MVA
0
Value of purchases under
procurement procedures, RUB
billion
Number of procedures
2015
Share in the total value of
purchases
%
New Construction
2017
2018
2019
Other
Technical upgrade and reconstruction
2012
2013
2014
Transission lines, thousand km
2016
Development of Corporate Information-Based Management System
The development of corporate informa-
tion-based management system (CIMS)
is regulated by Federal Grid’s IT strategy
and implemented as part of a consolidat-
ed corporate plan for implementation of
programmes of automated management
of operations.
A
A corporate information-based
C
management system ensures
comprehensive automation
of the Company’s main
business processes; improves
manageability of Federal
Grid via centralisation and
systematisation of all available
information and providing
prompt access to it; and helps to
reduce costs via more efficient
spending of funds.
%
B
In 2014, with due regard of the Company’s
development goals and objectives, the
Management Board approved an adjusted
plan for implementation of the corporate
IT strategy until 2020. This plan includes
the following automation programmes
that are targeted at the further develop-
ment of CIMS: programmes for automated
management of business processes and
Новое строительство
investing activities aimed at the develop-
ment of UNEG and capital construction,
automation of customer relations, man-
agement of assets, procurement, financial
and business operations, substitution of
imported electrical equipment, and HR
management.
Прочее
B
A
C
Структура капитальных вложений за 2014 г., млрд руб.
Restricted tender
Техническое перевооружение и реконструкция 24.28 / 27%
Open tender
Open request for quote
Open request for proposals
Sole source
Minor purchase
Ordinary purchase
Total
58.35 / 64%
8.23 / 9%
80.4%
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
0.7%
75.9
782
245
0.6
140
120
100
80
60
40
20
0
134.86
8.1
108.17
6.0
9.04
1.5
1.1
38.84
1.0
94.2
60.29
2015
2016
New Construction
10.45
40.29
84.12
2,084
115.24
828
9.78
1
103.54
4,254
34.82
3,770
11,964
7.62
35.14
8.6%
6.4%
101.87
1.6%
1.2%
1.1%
100%
8.18
30.05
70.64
60.78
63.64
Open tendering
2017
as share of total
procurements of
Federal Grid in
Technical upgrade and reconstruction
2014
80%
2018
2019
Other
32
33
PERFORMANCE RESULTS / OPERATING PERFORMANCE Import Substitution as a Strategic Priority
formation of competitive internal markets
of such equipment.
In order to encourage these processes
and overcome dependence on imports,
we drafted a Programme for Import
Substitution of Equipment, Technologies,
Materials and Systems, and approved
it in 2014. The strategic priority of this
Programme is to reduce the share of
procured imported electrical equipment
to 5% by 2030.
What results has Federal Grid
Company achieved by using
electronic procurement?
“Since February 2008, more than
95% of competitive procurements for
Federal Grid have been made via the
electronic marketplace. Using the
e-marketplace allowed us to create
a more transparent and competitive
environment for suppliers of
services, works, materials and
equipment.
Additionally, the functional
capabilities of the e-marketplace
helped us to increase the level of
annual savings from procurement by
4-5% of the level of savings within the
period before the full-scale launch of
e-commerce in procurement.”
Pavel Barkalov
Procurement Director – Head of
Procurement and Master
Scheduling Department of Federal
Grid Company
Cooperation with Small and Medium-Sized Enterprises (SMEs)
Subject to the Decree of the Russian
Government No. 867-r dated 29 May 2013
“On Approving an Action Plan (“Roadm-
ap”) on Improving the Access of Small and
Medium-Sized Enterprises to Procure-
ments of Infrastructure Monopolies and
State-Owned Companies”, our Company
approved a Partnership Programme
between Federal Grid Company and small
and medium-sized enterprises and start-
ed to maintain a register of SMEs who
have joined the Programme.
We also established an Advisory Body on
the issues of ensuring efficiency of Fed-
eral Grid’s procurement, which includes,
among others, small and medium-sized
business entities.
In compliance with the Government Res-
olution No. 1352 dated 11 December 2014,
we are going to approve a list of goods,
works and services to be purchased from
SMEs only.
Procurement Model
Procurement Model
The national economy’s ability to supply
electric power industry with domestically
manufactured assets that are required
for its reliable operations is a factor of
the country’s energy security and sus-
tainability to external economic threats.
This is why the reduction of reliance on
imported equipment is an important
development area of the Russian electric
power industry.
Federal Grid Company now depends on
imported equipment and components for
330 kV and above (in the first place, cross
connect equipment). Besides, the share
of imported components that are used in
the Russian-made equipment is at least
30-40%. Given the need to lower the risks
caused by reliance on imported equip-
ment, Federal Grid Company decided
that import substitution is a strategic
priority of its long-term development
programme.
Our Company, as one of the largest
Russian customers of high and extra-high
voltage electrical equipment, is inter-
ested in the development of the Russian
electrical engineering industry and in the
Suppliers of goods,
works and services
Can we say that Federal
Grid’s experience of import
substitution is the best practice
in the Russian economy?
7. Entering into a Contract
with a winner
Information portals
Web-site of Federal Grid
www.fsk-ees.ru
(electronic/
non-electronic
procurement)
2. Publication
of Procurement
Notice
Web-site
www.zakupki.gov.ru
(electronic
/non-electronic
procurement)
E-portal for
submitting bids
Electronic
trading platform
(e-procurement
only)
In electronic form
Procurement Procedures
Mandate to conduct Procurement (1)
Publication of Procurement Notice
and procurement documentation (2)
submission and receipt of Bids (3)
Evaluation of Bids and conducting negotiations (4), (5)
Auction procedure for lowering prices (Rebidding)
Contract Award (6)
Conducting pre-contract negotiations if necessary
and entering into a Contract (7)
Notice of the results of Procurement
3. Submission of Bids
Agency agreement that covers legal and other arrangements
related to tenders and other procurement procedures
(in case an outside organisation is involved as a procurement authority)
1. Mandate to conduct Procurement
(in case an outside organisation is involved)
4. Sending copies of Bids
5. Expert opinions
6. Contract award decision
“Our Company has been systemically
implementing the policy of
substituting imported items with
Russian-made electrical equipment
since 2010. Over this period,
we designed a mechanism for
entering into long-term contracts
with producers that have their
manufacturing assets in Russia. This
mechanism is used in contracts for
supply of high-technology electrical
equipment for Federal Grid’s needs.
Valery Goncharov
First Deputy Chairman of
the Management Board
Member of the Management
Board of Federal Grid
Company
Contracts are signed with the leading
international companies, such as
Toshiba, Hyundai Heavy Industries,
and Siemens.
Besides, Federal Grid is now the only
government-owned company with
an approved and publicly available
import substitution programme. In
accordance with this programme our
ambitious goal is to reduce the share
of imported electrical equipment in
our procurements to 5% by 2030.
We extensively share our experience
in this area. In particular, Federal
Grid officers contribute to law-
making on import substitution as
they sit on expert panels at the
Ministry of Industry and Trade,
Ministry of Energy, Ministry of
Economic Development and
State Duma.”
Procurement Authority
- Federal Grid Corporate Headquarters
- Federal Grid branches (MES, PMES)
- JSC Energotechcomplekt
Procurement Requester
- Federal Grid Corporate Headquarters
- Federal Grid branches (MES, PMES)
1 The Programme is approved by Federal Grid’s Board of Directors (Minutes No. 224 dated 15 August 2014)
34
35
PERFORMANCE RESULTS / OPERATING PERFORMANCE
Share of Russian-Made Electrical Equipment
in the Total Procurements
in 2013-2014, change
17%
2013
Russian-made
equipment
Imported
equipment
44.5%
2014
Federal Grid’s
strategic goal in
import substitution
is to reduce the share
of procured imported
electrical equipment
by 2030 to 5%
5%
by 2030
Targeted Share of Russian-
Made Electrical Equipment
in the Total Procurements,
by 2019, by Types of
Equipment
Russian-made
equipment
Imported
equipment
81%
77%
Disconnectors
110-750 kV
Shunt reactors
110-750 kV
70%
Power
transformers,
autotransformers
110-750 kV
64%
Controlled shunt
reactors
110-500 kV
57%
Current
transformers
110-500 kV
51%
Switches
110-750 kV
41%
Voltage transformers
110-500 kV
39%
Power cable insulated by
cross-linked polyethylene
110-330 kV
Gas insulated
switchgears
110-500 kV
30%
In 2011-2014, Federal Grid Company achieved the following results during implementation of its import substitution policy:
• It entered into 97 cooperative agreements
with electric engineering companies,
including 74 agreements with the Russian
companies.
• It signed long-term supply contracts with
several leading foreign manufacturers.
These contracts include deep localisation
of production in the Russian Federation,
purchase of Russian-made components,
establishment of joint ventures with the
Russian manufacturers, and transfer of
technologies to them.
• The Company proactively cooperates
with the authorities, nongovernmental
organisations and other stakeholders in
order to develop rules and regulations on
import substitution.
• Federal Grid Company developed,
approved and is proactively using a
special-focus methodology for assess-
ment of localisation of electrical products
manufacturing. Besides, the Company
is drafting criteria that will help to treat
enterprises located in the Russian Feder-
ation as domestic producers.
Russian-made electrical equipment in operation
An extra-high voltage single-
phase transformer (transformer
capacity: 417; voltage: 750 kV) has
been successfully operating at
one of Federal Grid’s substations –
750 kV Gribovo. This transformer,
the first one of this class in
Russia, is an innovative product
of JSC Electrozavod. It has
better characteristics than those
required by the current standards:
electricity losses are 10% less,
while transportation mass and
fully loaded mass are reduced by
15% и 12%, respectively.
Long-Term Contracts between Federal Grid and Electric Manufacturers for Supply of
Electrical Equipment with Localisation of Manufacturing in the Russian Federation
Hyundai Electrosystems LLC
A plant which produces 110-500 kV gas insulated
switchgear cubicles is a subsidiary of Hyundai Heavy
Industries (South Korea) in Primorie region
56.7%
Manufacturing
localisation level
targeted by 2017
Power Machines – Toshiba. High-Voltage Transformers
A plant which produces 110-750 kV transformers in St.
Petersburg is a joint venture of JSC Power Machines and
Toshiba (Japan)
55.0%
Manufacturing
localisation level
targeted by 2018
Siemens - Transformers
A subsidiary of international corporation Siemens in
Voronezh sells power transformers and autotransformers
of up to 250 MVA and up to 220 kV
77.5%
Manufacturing
localisation level
in 2014
3636
36
37
37
PERFORMANCE RESULTS / OPERATING PERFORMANCE ENERGY SAVING AND ENERGY EFFICIENCY
Contribution to Improving Energy Efficiency
of the Economy
We recognise Federal Grid’s substantive
role in improving energy efficiency of the
national economy and, therefore, we treat
implementation of energy saving and
energy efficiency initiatives as a priority
of our operations.
In the reporting year, our Company com-
pleted the implementation of its Energy
Saving and Energy Efficiency Programme
for 2010-2014 that had been adopted in
accordance with the Russian laws. A
similar programme was developed and
approved for 2015-2019.1
Objectives of the
Energy Saving and
Energy Efficiency
Programme
• To ensure saving and ration-
al use of the fuel and energy
resources and reduce con-
sumption of electric power
for corporate needs during
electricity transmission via
UNEG grids by improving
energy efficiency of the
Company’s facilities and
equipment
• To put in place a system
of electric power man-
agement and certification
of operations based on
requirements of ISO
50001:2011 “Energy man-
agement systems – Re-
quirements with guidance
for use”
• To improve energy effi-
ciency of the Company’s
electrical grid facilities
and equipment
Economic effect of
measures that were
implemented as part
of the Energy Saving
Programme in 2014
amounted to
RUB
113.6
Mln
In 2014, initiatives targeted at better
energy saving and energy efficiency were
implemented in the following key areas:
• Reducing the process energy consump-
tion during electricity transmission
through UNEG
• Fitting the buildings, structures, and
installations that are owned by Federal
Grid with metering devices for water,
natural gas, thermal energy, and elec-
trical energy
• Reducing the electrical and thermal
energy consumption in buildings,
structures, and installations owned by
Federal Grid
• Reducing the consumption of fuel and
lubricants used by Federal Grid to
provide the electricity transmission
services through UNEG
• Developing and improving Federal
Grid’s regulations and internal doc-
uments related to energy saving and
higher energy efficiency
Federal Grid’s energy management system consistent with the international standard
ISO 50001:2011
In 2014, the corporate system of energy management of Federal Grid Company, its Corporate Headquarters
and two branches (MES Volga and Samarskoe PMES) was certified for consistency with the international
standard ISO 50001:2011.
Strengths of the Company’s
energy management system:
• A detailed and manageable
Energy Saving Programme
tion of targeted initiatives
included in the Energy
Saving Programme
• High responsibility and
• A well-designed system for
monitoring of implementa-
competence of employees
involved in the development
and implementation of the
energy management system
• Promotion of information
about advantages and meth-
ods of energy saving in the
Company’s offices
1 The Programme was approved by the Management Board of JSC FGC UES (Minutes No. 1239/3 dated 06 June 2014)
Our Company focuses on employee in-service training in energy saving and believes that such training plays an important role. For
example, in 2014 the Company arranged training in MES East Training Centre for the following categories of MES East employees in
order to prepare and ensure an appropriate level of competence:
• Operating employees of substations and
administrative and managerial employ-
ees (11 groups, 13-15 persons each);
topic: “Classification of electric grids by
purpose. Management of electric grid
operating modes. Energy saving, ener-
gy efficiency and energy management”
• Specialists of MES East and PMES who
are responsible for implementation
of the Energy Saving Programme and
energy management. Topic: “Energy
saving technologies and energy man-
agement in the power industry”
• Specialists of MES East and PMES:
training was arranged as part of the
“Day of Knowledge”; topic: “Energy
saving, energy efficiency and energy
management.”
Use of Energy Resources in Federal Grid Company, 2014
Volume
Planned process
impact of initiatives
aimed at reducing the
consumption
of energy/fuel
Actual process impact
of initiatives aimed
at reducing the
consumption
of energy/fuel
Economic impact of measures
taken to reduce the consumption of
energy/fuel
Process electricity consumption in
UNEG, o/w:
Electricity consumption for substations’
own needs
Electricity consumption in buildings
21,261.1
mln kWh
968.7
mln kWh
32.6
mln kWh
90.1
mln kWh
5.3 млн
кВт*ч
0.95
mln kWh
96.1
mln kWh
107,100.9
RUB thousand, excluding VAT
5.6
mln kWh
5,849.3
RUB thousand, excluding VAT
0.9
mln kWh
3,027.9
RUB thousand, excluding VAT
Thermal energy consumption in
buildings
44.39
thousand Gcal
1.36
thousand Gcal
1.88
thousand Gcal
1,800.5
RUB thousand, excluding VAT
Gasoline consumption
Diesel consumption
8,232.3
thousand liters
31.32
thousand liters
32.92
thousand liters
997.7
RUB thousand, excluding VAT
6,960.8
thousand liters
19.09
thousand liters
23.48
thousand liters
733.0
RUB thousand, excluding VAT
The Company achieved these results
through energy saving initiatives.
Federal Grid is taking the following
actions in order to reduce technological
consumption (losses) of electricity in
UNEG:
• Improving heat insulation of building
walls
• Replacement of wooden windows with
• The key measures aimed at the reduc-
tion of consumption of fuel and lubri-
cants:
• Optimisation of the circuit and mode
parameters in operation and control of
the electric grids
• Reduction of electricity consumption for
the own needs of the substations
• Building, reconstruction, and develop-
ment of electric grids, as well as com-
missioning of energy saving equipment
In 2014, the companywide process effect
of measures aimed at the reduction of
electricity losses was a saving of 96.112
million kWh, which is equivalent to
11,821.8 tonnes of fuel equivalent; the
economic effect amounted to RUR107.1
million.
energy efficient equivalents
• Daily checks of tire pressure in vehicles
• Replacement of incandescent light
bulbs in buildings with energy sav-
ing equivalents (including LED strip
lamps))
• Adjustment of fuel consumption norms
• Thorough monitoring of vehicle use
• Purchase of a diagnostic tools for vehi-
• Installation of lighting control systems
cle injection engines
(installation of motion sensors)
• Replacement of old doors (mostly
wooden ones) with new energy efficient
ones
• Modernisation of ventilation and air
conditioning systems
• Installation of reflecting screens behind
heating devices
• Optimisation of travel routes using
satellite navigation for continuous mon-
itoring (GLONASS
• Optimisation of travel routes, staff
training, and priority for loads with the
lowest unit fuel consumption.
In 2014, the companywide effect of meas-
ures aimed at the reduction of consump-
tion of resources for Federal Grid’s own
needs amounted to 447.7 tonnes of fuel
equivalent (861.56 thousand kWh, 1,880
Gcal, 56,400 litres of fuel and lubricants)
to the total amount of RUR6.559 million.
The key measures aimed at the reduction
of electric and thermal energy consump-
tion in buildings, structures and installa-
tions:
• Appointment of responsible parties
• Optimisation of the heating g systems
operations
38
39
PERFORMANCE RESULTS / OPERATING PERFORMANCE Federal Grid pilot projects on energy saving and energy efficiency
INVESTMENTS AND INNOVATIVE DE VELOPMENT
47%
60%
Динамика уровня цифровизации
электросетевых объектов ФСК
80%
63%
69%
Общая протяженность ВОЛС ФСК,
тыс. км
Динамика ввода систем
высокочастотной связи
на подстанциях ЕНЭС, шт.
Динамика ввода систем
коммутации телефонной
связи на подстанциях ЕНЭС, шт.
60%
40%
20%
0%
54.0%
48.9%
40.3%
574
436
367
88
83
113
2012
2013
2014
2012
2013
2014
2012
2013
2014
800
600
400
200
0
120
80
40
0
40%
INVESTING ACTIVITIES
20%
Investments in the Development of
Electric Grid Infrastructure
2012
2013
2014
0%
Динамика объема финансирования инвестиций,
млрд руб.
Heat recovery
Pilot project of AT 1 heat recovery (Phase A) at 500/220/10 kV Nizhegorodskaya
substation (MES Volga) for heating the substation control desk: the Company used
a heat pump that made it possible to increase the saving of thermal resources for
heating and reduce the consumption of electricity for heating of buildings and air
cooling of transformers.
Динамика уровня цифровизации
электросетевых объектов ФСК
Optimising operation of the transformer cooling systems
63%
69%
60%
Cooling control boxes AT-1 with frequency regulation were replaced at 500/220/10
47%
kV Nizhegorodskaya substation (MES Volga). The replacement helped to increase
the service life of the autotransformer, increase the efficiency of using the cooling
system, and register, store and automatically transmit information about the cooling
system parameters in the automatic management system.
40%
80%
20%
0%
80
60%
60
• Calculated energy saving:
40.3%
48.9%
40%
16,000 kWh / year
40
20
20%
0%
36
Using plasma lamps for lighting of the open switchgear
2013
2012
2014
0
2012
2013
2014
2012
2013
2014
Динамика объема финансирования инвестиций,
Twenty-four external floodlights at 500/220/10 kV Nizhegorodskaya substation (MES
• Annual consumption of electricity
млрд руб.
Volga) were replaced with plasma lights that have high quality of light flux, energy
used for lighting was reduced by
efficiency and long service life, and are environmentally friendly.
60,700 kWh / year
• Expected energy saving:
648,000 kWh / year
• Expected cash effect of energy saving:
RUB1,166.78 thousand
Динамика введения на подстанциях
ЕНЭС систем сбора и передачи
Общая протяженность ВОЛС ФСК,
информации, шт.
тыс. км
The main objectives of Federal Grid Com-
pany’s investments are modernisation and
Динамика ввода систем
improving reliability of the unified energy
Динамика введения на подстанциях
system operations required to provide un-
высокочастотной связи
interrupted power supply to the consum-
ЕНЭС автоматизированных систем
на подстанциях ЕНЭС, шт.
управления технологическими процессами, шт.
Investments in the Development of Electric Grid Infrastructure
ers. As part of its investment activities,
the Company implements projects on the
construction of new electric grid infra-
structure facilities and reconstruction of
Динамика ввода систем
the existing ones.
коммутации телефонной
связи на подстанциях ЕНЭС, шт.
83
71
54.0%
800
600
400
574
200
436
150
Financing, RUB billion (including VAT)
367
109
144
170
120
80
2014
actual
Actual /
target
113
88
83
90,857.03
78%
Investments Financing
Trend in 2010-2014,
RUB billion
184.7
179.9
167.0
149.7
Динамика ввода мощностей
90.9
18.50
17.83
11.84
2.81
2.96
3.64
10.79
3.69
9.52
3.12
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
Transformer capasity, thousand MVA
Transission lines, thousand km
200
40
Capital investment volume, RUB billion (including VAT)
135,161.14
109%
100
50
0
Conversion of construction in progress into fixed assets, RUB billion
0
2012
0
2013
2014
2012
2012
Deployment of industrial capacities (commissioning of power
facilities), MVA
2013
2014
155,091.13
2013
2014
121%
9,522
112%
Deployment of industrial capacities (commissioning of power
facilities), km
3,120.62
95%
* Справочно: фактический объем незавершенного строительства, переведенный в состав основных
средств в физическом выражении (трансформаторная мощность и линии электропередачи), в 2014 г.
составил 5 069 МВА и 3 331 км.
Динамика ввода мощностей
Capacity Commissioning Trend
18.50
17.83
C
%
A
11.84
11.84
2.81
2.81
2010
2010
18.50
Структура капитальных вложений за 2014 г., млрд руб.
17.83
B
Техническое перевооружение и реконструкция 24.28 / 27%
9.52
10.79
Новое строительство
10.79
3.64
3.64
Прочее
3.69
3.69
9.52
3.12
3.12
58.35 / 64%
8.23 / 9%
A
B
2.96
2.96
C
2011
2011
2012
2012
2013
2013
2014
2014
Динамика введения на подстанциях
ЕНЭС систем сбора и передачи
информации, шт.
Динамика введения на подстанциях
ЕНЭС автоматизированных систем
управления технологическими процессами, шт.
Using “light tubes” for lighting of office buildings
83
71
36
80
60
40
20
0
This technology for lighting of office buildings by outdoor sunlight was used when
the administrative building of MES Volga in Samara was refurbished; 14 “light tubes”
were installed on the roof of a six-floor building.
144
170
200
150
109
100
Introduction of an automated heating station
50
2012
2013
2014
0
2013
2012
Automated control of water consumption was put in place when the heating system in
the administrative building of MES Volga in Samara was refurbished. This technology
helps to reduce excess energy consumption for heating and hot water supply, extend
the life service and reduce the time between repairs of heat networks and boiler room
equipment, keep record of heat consumption and make surplus heat for periods of
the lowest temperatures.
2014
Improving energy efficiency of the lighting installations
184.7
179.9
167.0
• Calculated energy saving:
149.7
2,999.5 kWh / year
90.9
• Thermal energy saving: 230 Gcal
2010
2014
2012
• Expected cash effect of thermal
2013
2011
energy saving: RUB437.04 thousand
B
Transformer capasity, thousand MVA
Transission lines, thousand km
into fixed assets, 93% for commissioning
of transformer capacities (as adjusted)
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
and 95% for commissioning of transmis-
sion lines.
Overall, Federal Grid has met the 2014 in-
vestment programme targets. In particu-
lar, its performance was 78% for financ-
ing, 109% for investment volume, 121%
for conversion of construction in progress
134.86
A
C
%
B
Work was completed on raising energy efficiency of lighting installations in the
administrative building of the Upper Don PMES: the existing lamps and lighting
fixtures were replaced with energy efficient LED light bulbs and automated
management of internal lighting in the building was installed.
Структура капитальных вложений за 2014 г., млрд руб.
• Electricity saving: at least
140
19,300 kWh / year
120
• Operational costs reduced by at least
RUB430,500/year
100
108.17
A
B
C
Техническое перевооружение и реконструкция 24.28 / 27%
Новое строительство
Прочее
58.35 / 64%
8.23 / 9%
80
60
40
20
0
9.04
38.84
60.29
10.45
40.29
115.24
9.78
103.54
101.87
34.82
7.62
35.14
8.18
30.05
84.12
70.64
60.78
63.64
40
2015
2016
2017
2018
New Construction
Technical upgrade and reconstruction
2019
Other
41
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
C
%
140
120
100
80
60
40
20
0
A
108.17
9.04
38.84
60.29
134.86
10.45
40.29
115.24
9.78
103.54
101.87
34.82
7.62
35.14
8.18
30.05
84.12
70.64
60.78
63.64
2015
2016
2017
2018
New Construction
Technical upgrade and reconstruction
2019
Other
Structure of Capital
Investments in 2014,
RUB billion
A
B
C
New construction
Technical upgrade and
reconstruction
/
58.35 64%
/
24.28 27%
Other
8.23 / 9%
PERFORMANCE RESULTS / OPERATING PERFORMANCE Significant Investment Projects
Implemented in 2014
New construction
Reconstruction
8
19
3
15
4
67
20
11
16
21
1
17
2
14
5
12
13
9
18
10
We commissioned 341.8 km of the 500 kV
Rostov NPP – Tikhoretsk OHL, which is
strategically important for the develop-
ment of the South Federal District
We reconstructed 220 kV Koysug SS (to
250 MVA), which will subsequently enable
to provide reliable power supply to a num-
ber of large industrial consumer in Rostov
oblast, such as JSC Rostovskiy Port
Our Company put into operation the second
circuit of high voltage line between Uren-
goy HPP and oil fields of the Autonomous
District with the total length of 426.7 km
18. We carried out reconstruction of
electric grid complex 220/110/10 kV
Svetlaya SS. The reconstruction will
significantly improve reliability of
power supply of consumers in the
city Kamen-na-Obi, eight districts in
the North of the region and part of
the TransSiberian Railway.
19. As part of the agreement with the
Government of St Petersburg, our
Company reconstructed 220 kV
Poluprovodniki SS (160 MVA); the
goal of the project was to provide
reliable electricity supply and create
conditions for connecting the city’s
consumers to electric grids.
20. We reconstructed 220 kV Koysug SS
(to 250 MVA), which will subse-
quently enable to provide reliable
power supply to a number of large
industrial consumer in Rostov
oblast, such as JSC Rostovskiy Port,
Azov-Don shipping, Rostov Section
of the North-Caucasus Railway and
many others.
21. The Company reconstructed 220 kV
Shepsi – Dagomys OHL with the
length of 61.59 km. Commissioning
this line will allow to provide higher
reliability of electricity supply to
the Republic of Abkhazia, strate-
gic facilities in the Tuapse district,
consumers of the Greater Sochi,
including sports facilities in the hill
and beach clusters.
1. We commissioned 341.8 km of the 500 kV
Rostov NPP – Tikhoretsk OHL, which is
strategically important for the development
of the South Federal District – it will deliver
capacity from the new Rostov NPP facility
(1,100 MW) to the region.
2. 252.8 km of Pechorskaya HPP – Ukhta-Mi-
kun high voltage line was commissioned.
This line is supposed to ensure more
reliable electricity supply to consumer of
Sourthern district of the Komi Energy Sys-
tem and to increase transit capacity.
3. We commissioned 250 MVA transformer ca-
pacities for the 330 kV Gatchniskaya – Luzh-
skaya OHL with 330 kV Luzhskaya SS. These
capacities will help improve reliability of
power supply to consumers of the Luzhsky
district in Leningradskaya oblast.
4. The Company commissioned 94.7 km of
transmission lines relating to the 330 kV
Leningradskaya NPP-2 OHL – Gatchinskaya
SS. The implementation of the whole project
will ensure delivery of the capacity of the 1st
Poser Facility of the Leningradskaya NPP-2,
thereby significantly increasing the possi-
bilities for, and increasing the reliability of
power supply for Leningradskaya oblast.
5. Our Company commissioned 74.7 km
of transmission lines under the project
“Reconstruction of 220 (500) kV Tarko-
Sale – Urengoy OHL. This line will support
delivery of capacity of Urengoy HPP Power
Facility No 1. This project is part of another,
large-scale project to supply electricity to
the Vankor oil and gas field.
6. We commissioned 18.1 km of transmission
lines under the project “220 kV Approaches
of Transmission Lines to Vladimir Combined
Heat and Power Plant-2. Technological
connections of electric plant of JSC TGK-6”.
Implementation of this project will ensure
distribution of the capacity of Vladimir Com-
bined Heat and Power Plant-2.
7. We put into operation main substations de-
signed to provide electricity for consumers
of the Skolkovo Innovation Centre (Moscow).
8. 8. As part of the effort to create a system
of reliable electricity supply to the Valaam
archipelago, we commissioned a 13.5 km
cable line supplying power to the island
9. Under the project aimed to provide external
energy supply to support the expansion
work at the East Siberia – Pacific-1 pipeline
(to increase the throughput of the pipeline
to 50 million tons per year) we commis-
sioned 150 MVA of transformer capacity and
483.4 km of transmission lines.
10. As part of implementation of the Federal
Targeted Programme “Economic and Social
Development of the Far East and Trans-
baikal for the Period to the year 2013”, we
commissioned 132.75 km of transmission
lines under the project “Construction of
Dual-Circuit 220 kV Tautarovo – Goryachin-
skaya – Barguzin OHL with 220 kV
Goryachinskaya SS, 220 kV Barguzin SS and
reconstruction of 220 kV open switchgear at
the 220 kV Tataurovo SS”. When the project
is fully implemented, it will provide electric
power supply to the Baikal Haven Special
Economic Zone.
11. The Company commissioned 801 MVA of
capacity under the project “Reconstruction
of 500/220/35 kV Kyibyshevskaya SS”. Upon
the completion of the reconstruction, this
substation will be a power facility of a new
generation equipped with modern automat-
ed systems and high-technology machinery
that can provide electricity to most of the
consumers of the Samara and Samara
oblast.
12. As part of the programme to contain
the fallout from the accident at the
Sayano-Shushenskaya HPP, the Compa-
ny commissioned a 500 kV line between
substations Aluminiyevaya and Itatskaya
(269 km of length), which serves, amongst
other things, to increase the transfer capac-
ity between Krasnoyarsk and the Republic
of Khakassia.
13. We commissioned 1,068 MVA of transformer
capacities and 7.3 km of approach lines at
the Yenisey substation in order to ensure re-
liability of power transfer between Irkutsk
and Krasnoyarsk.
14. As part of the comprehensive develop-
ment programme for the Yamalo- Nenets
Autonomous District and the North of the
Krasnoyarsk Krai, our Company put into
operation the second circuit of high voltage
linebetween Urengoy HPP and oil fields
of the Autonomous District with the total
length of 426.7 km.
15. We commissioned 440 MVA of transformer
capacities at the Pulkovskaya substation.
This substation shall be used to ensure
reliable power supply for newly connect-
ed consumers at the new terminal of the
Pulkovo airport, for facilities supplying
electricity to the International Congress and
Exhibition Centre ExpoCentre and to serve
as a hub to which new 110 kV substations
can be connected.
16. The Company commissioned the
500 kV Krasnoarmeyskaya – Gazovaya OHL
(401.5 km), enabling to increase the grid
transfer capacity of the connection Middle
Volga – Urals by 500 MW in the direction
of the IPS Ural and by over 400 MW in the
direction ofthe IPS Middle Volga.
17. Construction was completed of approach
lines for the 500 kV Yuzhnaya – Shagol OHL
(173.8 km) to deliver capacity of the Belo-
yarskaya NPP-2 (4th Power Facility using a
fast-neutron reactor BN-800).
42
43
PERFORMANCE RESULTS / INVESTMENTS AND INNOVATIVE DEVELOPMENT 2012
2013
2014
2012
2013
2014
2012
2013
The main goals of the long-term Federal Grid’s investment
programme are:
Динамика объема финансирования инвестиций,
млрд руб.
Federal Grid’s Investment Programme for
2015-20191 was developed based on the
assumption that prices for services pro-
vided by natural monopolies in 2014 would
remain at the previous year’s level, and
changes in limits of investment projects’
financing due to lower revenue generat-
ed by providing electricity transmission
services.
2014
Federal Grid’s Investment Programme
envisages the construction and recon-
struction of power infrastructure of pro-
jects bearing national importance, such
as international forums and important
sports competitions, oil transportation
projects and programmes of development
of Russia’s various regions. We under-
stand the importance of such projects
and do everything we can to build and
reconstruct grid facilities on time and to
the highest standards.
Development of the electric grids in the Far East and Transbaikal
Динамика уровня цифровизации
электросетевых объектов ФСК
Общая протяженность ВОЛС ФСК,
тыс. км
60%
40%
54.0%
48.9%
40.3%
Динамика ввода систем
высокочастотной связи
на подстанциях ЕНЭС, шт.
800
600
400
574
436
367
Long-Term Investment Programme
20%
200
0%
0
Динамика ввода систем
коммутации телефонной
связи на подстанциях ЕНЭС, шт.
120
80
40
0
88
83
113
Key Investment Projects
Динамика введения на подстанциях
Динамика введения на подстанциях
ЕНЭС систем сбора и передачи
ЕНЭС автоматизированных систем
информации, шт.
управления технологическими процессами, шт.
83
71
36
80
60
40
20
0
170
144
109
200
150
100
50
0
2012
2013
2014
2012
2013
2014
80%
60%
40%
20%
0%
63%
69%
47%
2012
2013
2014
A
C
%
B
• Modernisation and reliability
improvement of the Unified
Energy System
• Providing electricity supply
to the facilities of national
importance, including
developing reliable electricity
supply to the South Federal
District
• Ensuring failure-free electric
power supply in the situation
of separate functioning of
11.84
the Unified Energy System of
Russia and power grids of the
Baltic States (Estonia, Latvia,
2.81
Lithuania)
• Ensuring failure-free electric
power supply in the situation
of separate functioning of
the Unified Energy System
2010
of Russia and the Integrated
Power System of Ukraine
• Removing grid restrictions,
ensuring the quality and
accessibility of services for
electricity transmission and
technological connection for
the consumers
Динамика ввода мощностей
• Synchronisation of the
development programmes with
18.50
the generating facilities and
distribution grids
17.83
• Improving the efficiency
of the backbone electric
grids by reducing the costs
3.64
and implementing energy
efficiency programmes
• Establishing an effective
2012
2011
2.96
10.79
3.69
9.52
3.12
2013
2014
Transformer capasity, thousand MVA
Transission lines, thousand km
system for the management of
UNEG operations
184.7
179.9
167.0
The total level of investments planned
for the 2015-2019 period is RUB563.7
billion, which will be used to introduce
149.7
55,500 MVA of capacity and 12,400 km of
transmission lines into the fixed assets of
Federal Grid.
90.9
The investment programme for 2015-2019
is supposed to be financed using Federal
Grid’s own funds, bond issues2 and funds
from the Federal Budget. The programme
provides for an even distribution of the
investment costs over the 5-year period,
2013
which will enable the Company to main-
tain a balanced structure of its financing
sources.
2011
2012
2010
2014
The investment programme for 2015-2019
has been optimised in the view of two
requirements: completing grid projects
construction started in previous periods
and possibilities of financing new invest-
ment projects in the current economic
environment.
140
Структура капитальных вложений ФСК в 2015-2019 гг., млрд руб.
Structure of Federal Grid’s capital investments in 2015-2019,
RUB billion
134.86
Структура капитальных вложений за 2014 г., млрд руб.
A
B
C
Новое строительство
Прочее
Техническое перевооружение и реконструкция 24.28 / 27%
58.35 / 64%
8.23 / 9%
108.17
9.04
38.84
60.29
120
100
80
60
40
20
0
10.45
40.29
115.24
9.78
103.54
101.87
34.82
7.62
35.14
8.18
30.05
84.12
70.64
60.78
63.64
Buryatia
Yakutia
In the Pribaykalsky District of the Republic of Buryatia we have
been continuing the construction of the dual-circuit 220 kV OVL
connecting the Goryachinsk substation and the Tataurovo sub-
station, which is currently being reconstructed.
These substations will supply power to the facilities under con-
struction in the Baikal Harbor special economic zone, such as
the Centre for Eastern Medicine, port and sports and recreation
and hotel complexes. Additionally, there will be a significant
increase in the reliability of the electricity supply to the Barguz-
insky, Kurumkansky, and Pribaykalsky Districts of the Republic
with a population of 72 thousand people, as well as the East-Si-
berian Railway and the Pribaykalsky National Park.
The total cost of construction under the project will be RUB7.6
billion. In 2010-2014 the construction was financed with Federal
Grid’s own investment funds as well as those from the Federal
Budget.
We plan to commission the first start-up facility in 2015; the
deadline for the completion of the whole project has been post-
poned to 2022.
We have been continuing the construction of a 220 kV Neryun-
grinskaya HPP – Nizhny Kuranakh – Tommot-Maya OHL and 2
substations: 220 kV Tommot and 220 kV Maya. Implementation
of the project will enable to connect the isolated central energy
district of Yakutia with the to the IPS East electric grid Unified
East Power System and to abandon the costly independent
power supply sources. In addition, conditions will be created for
connecting new consumers and economic development of South
Yakutia.
In 2011 – 2014, 711.77 km of transmission lines and compen-
sating installations (200 MVAr) were commissioned. We plan to
commission 440 MVA of transformer capacity during the subse-
quent periods.
The total cost of the construction is RUB19.3 billion. The project
is scheduled to be completed in 2016.
In order to ensure parallel operation of IPS Siberia and IPS East,
we plan to carry out the project Amur Transformer Complex at
Khani substation, which has design capacity of 200 MW and is
scheduled to be completed in 2019.
Programme to contain the fallout from the accident at the Sayano-Shushenskaya HPP
In 2014, equipment at substations No-
vokuznetskaya and Oznachennoye was
technically upgraded, the Company also
carried out works at its facilities in the
Krasnoyarsk Krai relating to the recon-
struction of an outdoor switchgear at the
Sayano-Shushenskaya HPP.
R&D programme
A
A
R&D programme
B
B
Integrated pilot projects to create an
active-adaptive grid with the use of innovative
technologies and energy efficiency
Integrated pilot projects to create an
active-adaptive grid with the use of innovative
technologies and energy efficiency
Creation of training centres for Federal
Grid’s operating staff
In 2014, we completed the construction of
500 kV Aluminiyevaya – Abakan – Itat-
skaya No 2 OHL with the total length of
270 km, which will be used to deliver the
blocked capacity of the Sayano-Shushen-
skaya HPP and shall improve reliability of
power supply to Sayansky and the Khassy
Aluminium Plants.
Creation of training centres for Federal
Grid’s operating staff
C
C
Voskhod and overhead lines with the total
length of 41 km shall be constructed.
These facilities are scheduled to be com-
missioned in 2016.
419.4
In total, under the Programme to con-
tain the fallout from the accident at the
Sayano-Shushenskaya HPP, Federal Grid
commissioned 501 MVA of transformer
capacity and 632 km of transmission lines.
/
419.4
/
2,598.8
14%
/
84%
/
2,598.8
14%
84%
76.6
2%
/
/
76.6
Steps taken to ensure power transit via
the Kurgan – Ishim – Voskhod connection
enabled to increase reliability of electricity
supply to consumers of the Omsk Energy
System and consumers in the south of
Tyumen oblast, due to these measures the
maximum level of flow of capacity was in-
creased between IPS Siberia and IPS Ural.
2%
C
C
%
%
A
A
B
B
2015
2016
2017
2018
New Construction
Technical upgrade and reconstruction
Federal Grid capital investments for 2015-2019, by project, RUB billion
A
B
C
D
E
F
G
H
I
A
B
C
D
E
F
G
H
I
BAM and Transsib
BAM and Transsib
BRELL
BRELL
Development of Backbone grids
Development of Backbone grids
Renovation
Renovation
Ensuring capacity delivery
Ensuring capacity delivery
Technological connection
Technological connection
Programmes of national significance
Programmes of national significance
Other
Other
Power suply to Southern Federal District
Power suply to Southern Federal District
101.7
108.1
122.2
32.1
/
101.7
33.8
/
33.8
/
32.1
/
108.1
48.6
/
48.6
/
122.2
23.9
/
23.9
/
48.3
/
45.0
45.0
48.3
H
H
G
G
F
F
18%
/
6%
6%
18%
6%
/
6%
/
19%
/
19%
9%
/
22%
/
9%
4%
22%
4%
/
8%
/
8%
/
8%
8%
I
I
%
%
%
E
E
2019
Other
A
A
B
C
B
C
D
D
1 Approved by the Order of the Russian Ministry of Energy No. 807 dated 31 October 2014
2 Subject to market conditions
Under Federal Grid’s investment pro-
gramme, in 2015 – 2019 a new substation
44
45
Динамика объема финансирования НИОКР, млн руб.
Динамика объема финансирования НИОКР, млн руб.
Выручка, млн руб.
Выручка, млн руб.
3,0
3,0
2,0
2,0
1,0
1,0
0,0
0,0
2.9
2.9
1.9
1.9
1.0
1.0
1.7
1.7
0.4
0.4
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
138,137
138,836
138,137
138,836
111,085
111,085
168,941
168,941
155,352
155,352
50
0
50
0
Чистая прибыль (убыток), млн руб.
Чистая прибыль (убыток), млн руб.
57,082
57,082
Полная себестоимость, млн руб.
Полная себестоимость, млн руб.
132,948
132,948
140,259
140,259
116,510
116,510
5,137
5,137
92,900
92,900
82,501
82,501
2010
2010
2011
2012
2013
50
2014
2010
2011
2012
2013
50
2014
2010
2011
2012
2013
2014
2011
2012
2013
2014
2010
2012
2013
2014
2010
2011
2012
2013
2014
2011
-2,468
-2,468
-24,532
-24,532
-25,898
-25,898
Динамика структуры активов, млн руб.
Динамика структуры активов, млн руб.
1 214 291
1 214 291
1 231 217
1 231 217
1 122 995
1 122 995
1 037 493
1 037 493
902 110
902 110
Размер стандартизированной
Размер стандартизированной
ставки С1 в 2013-2015 гг.,
ставки С1 в 2013-2015 гг.,
руб./кВт (без НДС)
руб./кВт (без НДС)
27,56
27,56
27,56
27,56
28,61
28,61
Диаграмма динамика долгового портфеля ОАО «Ф СК ЕЭС», млрд руб.
Диаграмма динамика долгового портфеля ОАО «Ф СК ЕЭС», млрд руб.
300
300
250
250
200
200
1050
1050
100
100
50
0
50
0
25,0
25,0
105,0
105,0
56,0
56,0
17,5
35,0
17,5
35,0
160,0
160,0
100,0
100,0
17,5
17,5
164,8
164,8
100,0
100,0
17,5
17,5
140,3
140,3
2010
2011
2010
Основные средства
2011
2012
2012
2013
2013
Незавершенное строительство
2014
2014
Авансы под внеоборотные
Основные средства
Незавершенное строительство
Долгосрочные
активы
активы
Авансы под внеоборотные
финансовые вложения
Долгосрочные
финансовые вложения
Оборотные
активы
Оборотные
активы
2013
2014
2015
2013
2014
2015
2010
Облигации
2010
Облигации
2011
2011
Кредиты
Кредиты
2012
2012
Еврооблигации
2013
2013
Инфраструктурные облигации
2014
2014
Еврооблигации
Инфраструктурные облигации
PERFORMANCE RESULTS / INVESTMENTS AND INNOVATIVE DEVELOPMENT Compensatory measures
relating to separate
functioning of the Unified
Energy System of Russia and
the Integrated Power System
of Ukraine
In order to ensure reliable power sup-
ply of the North-West part of the Rostov
power system, Federal Grid’s investment
programme envisages installation of an
autotransformer with the capacity of 125
MVA at Pogorelovo substation and con-
struction of electricity transmission line
between the cities of Shakhty and Donetsk
(Rostov oblast) with the total length of
80 km. The facilities are scheduled to be
commissioned in 2016.
Development of electric grid infrastructure in the area of BAM and TransSib
This macroproject involves construction
and reconstruction of UNEG electric grid
infrastructure in the Siberian and Far
East Federal Districts. The objective of
the project is to ensure the additional load
on railway networks and system relia-
bility of the backbone electric grid in the
area of the Eastern Poligone, JSC Russian
Railways.
Technical upgrade and reconstruction,
as well as construction of new power
facilities will increase the transformer
capacity by 3,518 MVA and the length of
electricity transmission lines by 3,691 km.
a comprehensive justification for
the project and has also con-
ducted the pricing and
technological audit
in its respect.
The Russian Government confirmed
the strategic importance of this
project. By this time,
Federal Grid has
prepared
м
м
Improving the
accessibility of electric
grid infrastructure of the
Krasnodar Krai
One of the key objectives in the area of
regional infrastructure is to enable techno-
logical connection of consumers from the
city of Krasnodar, including a large-scale
housing construction project. In order to
meet this objective, we plan to build in
Krasnodar East Industrial Zone substation.
Commissioning of capacity of 560 MVA and
16 km of overhead transmission lines is
scheduled for 2017. The cost of this invest-
ment project is RUB2.4 billion.
In order to facilitate efficient interaction
between the Administration of the Kras-
nodar Krai and Federal Grid on matters
relating to the development, ensuring
efficient operation and improved reliability
of the UNEG grid complex in the Krasnodar
Krai, we have recently signed a Co-oper-
ation Agreement for the period 2015-2020
(No. 000000343113 dated 24 February 2015)
in respect of the construction of the East
Industrial Zone substation.
Ensuring reliable operation of the
Unified Energy System of Russia
separately from the energy systems of
the Baltic States (macroproject BRELL)
This macroproject represents a set of measures
designed to compensate the consequences of
the lowered transfer capacity of electric connec-
tions in the unified energy systems of the Centre and
North-West as parts of the UES of Russia and changes
in operations of the energy ring of the BRELL countries
(Belarus – Russia – Estonia – Latvia – Lithuania).
In this area, our investment programme includes reconstruc-
tion of the Talashkino substation, modernisation of the
existing emergency control automatics at the substations
Leningradskaya, Chudovo and Pskov, construction of
overhead transmission lines Novosokolniki – Talashki-
no, Leningradskaya – Belozerskaya, Pskov – Luzh-
skaya and construction of 330 kV OHL approach
lines to the Kingisepskaya substation.
Ensuring power delivery from generation facilities
Our long-term investment programme
provides for the commissioning of facil-
ities with the total capacity of 125 MVA
and construction of 521 km of electricity
transmission lines. Currently we are
working on the implementation of power
delivery schemes for Novovoronezh-
skaya NPP-2, Leningradskaya NPP-2,
Nizhnebureyskaya HPP, Zagorskaya
PSPP, Zelenchukskaya HPP, Chelyab-
inskaya HPP, Huadian – Teninskaya CHP,
Perm HPP.
Development of grid infrastructure co-financed by consumers
Currently, Federal Grid is implementing a
project to build a 220 kV Razdolinskaya –
Taiga OHL and 220 kV Taiga substation
based on the principles of co-financing
by the consumer, CJSC Polyus. Under the
deal structure, the consumer is supposed
to set up a special-purpose vehicle (SPV)
to carry out construction and to raise
funds. Federal Grid, in its turn, shall
provide technical supervision over the
implementation of the project and, upon
the completion of the facilities, shall
buy them out in installments over a long
period of time.
Federal Grid is cur-
rently in negotiations with
JSC Norilsk Nickel regarding
the construction of electric grid
infrastructure of Bystrinsky Mining and
Processing Plant under similar conditions.
46
47
PERFORMANCE RESULTS / INVESTMENTS AND INNOVATIVE DEVELOPMENT Basic parameters of the key investment projects
Project
Development of electric grid infrastructure
at BAM and Transsib
BRELL
Ensuring power delivery from generation facilities
Development of the grid complex in Rostov oblast
Development of the grid complex in Krasnodar
Development of the grid complex in Buryatia
Project implementation
timeframe
start
completion
Commissioned
in 2014
Design capacity
Financing in
2015-2019,
RUB billion
2014
2015
2015
2015
2015
2010
2024
2019
2019
2016
2017
2022
0
250 MVA
806.5 km
0
0
3,518 MVA
3,691 km
2,071.5 MVA
approach lines
1 km
125 MVA
521 km
125 MVA
80 km
560 MVA
16 km
132.75 km
1 st.-up – 2х125 MVA
2 st.-up – 2х132.3 km
Development of the grid complex in Sakha (Yakutia)
2009
2016
282 MVA
Measures to contain the fallout from the accident
at the Sayano-Shushenskaya HPP
2010
2016
269.6
1st stage – 275 km
2nd stage –
2х63 MVA
2х125 MVA
2х16 MVA
2х16 MVA
2х100 MVAr
45.5 km
434.6 km
668 MVA
Controlled shunt reactor
(180+60) MVAr
Shunt reactor (180+60) MVAr
382.97 km
332.04 km
Shunt reactor (180)
MVAr
101.7
33.8
48.63
1.11
2.4
35.14
10.46
1.83
How can the current economic
environment in Russia influence
the implementation of Federal
Grid’s investment programme?
“The current economic environment
is characterised by higher borrowing
cost, limited financial market, growth
of inflation and currency exchange
rates, non-payments by consumers for
electricity transmission and technological
connections. In view of this environment,
Federal Grid established the limits for
financing of investments for 2015 at RUB76
billion.
In order to meet this limit, the priority in
our investment programme is given to
such projects as prevention of accidents
at the Grid’s facilities, improving reliability
of the Grid’s operation, developing
facilities included in the plan of measures
designed to meet target reliability and
quality indicators and a number of other
projects developed in accordance with the
Scenario-Based Conditions for Developing
Investment Programmes.
the technical conditions of the Unified
National Electric Grid and objectives of
national importance, such as supporting
the operation of the most important and
socially significant facilities, will be met.”
Despite the reduced level of financing,
the implementation of Federal Grid’s
investment programme shall ensure that
all key objectives in the area of maintaining
Nikolay Pozdnyakov
Deputy Chairman of the Federal
Grid’s Management Board
Adjustments to the Investment Programme
In accordance with the “Rules for approv-
al of investment programmes for electric
power companies that include the State
as a participant in their authorised share
capital and grid companies”, adopted by
the Resolution of the Russian Govern-
ment No. 977 dated 1 December 2009, as
amended by the Decree of the Russian
Government No. 132 dated 16 February
2015, Federal Grid Company has drafted
changes to its investment programme
for the period 2015-2019 (adjustments to
the investment programme for the year
2015) and has prepared a draft of the
investment programme for the period
2016-2020. These documents envisage
downward adjustments of the invest-
ment programme parameters (including
financing, commissioning of fixed assets)
for the purpose to maintain high financial
reliability of the Company in the environ-
ment of volatile financial markets, higher
borrowing costs and deterioration of
payment discipline.
IINNOVATIVE DE VELOPMENT PROGR AMME
Innovative Technology for Better Reliability
Federal Grid Company’s innovative devel-
opment is aimed at enhancing the relia-
bility, quality and economy of the supply
of electricity to consumers by upgrading
the electric grids of the Russian Unified
Energy System with the use of innovative
technology to turn them into an intellectu-
al core of the technology infrastructure of
the national electric energy sector.
Our Management Board and the Board
of Directors’ Strategy Committee have
approved key provisions of Federal Grid’s
Innovative Development and Moderni-
sation Policy, which, once implemented,
will result in the creation of a smart grid
based on innovative solutions.
In order to achieve the goals and objec-
tives of our innovation policy, we have
developed a comprehensive Innovative
Development Programme for the years
2013-2017 with an outlook through 20201.
Our innovative development programme
will improve the efficiency of utilisation of
Russian’s energy potential, facilitate the
development of new technologies, con-
tribute to further development of the na-
tional industry, reduce the percentage of
imported equipment, and create favoura-
ble conditions for procuring the maximum
benefits for the national economy.
As part of its Innovative Development
Programme, Federal Grid is carrying out
works aimed at fulfilling UNEG modern-
isation and development tasks, creating
conceptual, technology and production
fundamentals and favourable conditions
for building a smart grid, and improving
Federal Grid’s business processes and
organisational mechanisms to achieve
the goals and objectives of innovative
development.
Key Areas of the Innovative Development Programme
Development of New Technologies
and Release of Innovative Products
• Development of the concept
of a smart energy system
• Development, testing and
commercialisation of new
technologies
• Development of new energy market
services
• Energy efficiency improvement
programme
• Programme to improve the
environmental impact of Federal
Grid Company
• Collaboration with institutions of
higher education and scientific
organisations
• Programmes to develop
partnerships with innovative small
and medium businesses
• Interaction with venture capital
businesses and the Skolkovo
Institute of Science and Technology
Development of New
Technologies
• Integrated pilot projects to
create a smart grid
• Development, modernisation,
and improvement of the energy
efficiency of UNEG
• Building of a production base
for modernisation of UNEG
Innovative Business
Processes
• Improvement of business
processes and introduction of
new management methods
• Development of a system of
innovation activities
external impacts, etc. Prototypes of those
solutions are currently used in various
pilot projects being implemented at
Federal Grid’s facilities.”
Which results have been
achieved today in the area
of Federal Grid’s innovative
development?
“Innovations are a key component of
Federal Grid’s technological reliability
formula, so we have been implementing
a comprehensive Innovative Development
Programme since 2011.
As part of our efforts to implement that
Programme, we are developing, testing
and commercialising new technologies,
preparing and implementing pilot
projects to create a smart grid, and are
aggressively taking steps to modernise
and improve the energy efficiency of the
Unified Energy System as a whole.
Our research and development works
have resulted since 2011 in more than
220 certificates and patents obtained,
including 10 international ones, for
various utility models and inventions
in the area of electric energy, such as
our achievements in high-temperature
superconductivity, steel multifaceted
supports and fundamental structures
for power transmission lines, electric
grid monitoring systems and systems
for protection of electric grids against
Pavel Korsunov
Deputy Chairman of the
Management Board of
Federal Grid Company
48
49
1 As approved by a resolution passed by the Management Board of Federal Grid Company (Minutes No. 1167/2 dated 26 April 2013).
PERFORMANCE RESULTS / INVESTMENTS AND INNOVATIVE DEVELOPMENT A
B
C
D
E
F
G
H
I
BAM and Transsib
BRELL
Development of Backbone grids
Renovation
Ensuring capacity delivery
Technological connection
Programmes of national significance
Other
Power suply to Southern Federal District
101.7
/
18%
33.8
32.1
/
/
6%
6%
108.1
/
19%
48.6
/
9%
122.2
/
22%
23.9
48.3
45.0
/
/
/
4%
8%
8%
I
H
A
G
F
B
C
D
%
E
Динамика объема финансирования НИОКР, млн руб.
Выручка, млн руб.
3,0
2,0
1,0
0,0
2.9
1.9
1.7
1.0
0.4
2010
2011
2012
2013
2014
138,137
138,836
111,085
168,941
155,352
50
0
2010
2011
2012
2013
50
2014
Динамика структуры активов, млн руб.
1 214 291
1 231 217
1 122 995
1 037 493
902 110
Размер стандартизированной
ставки С1 в 2013-2015 гг.,
руб./кВт (без НДС)
27,56
27,56
28,61
2014 Results of the Innovative Development Programme
Smart Grid
Our continued focus on activities to in-
troduce innovations and related activities
became a key systemic outcome of our
efforts to implement the Innovative Devel-
opment Programme in 2014. That out-
come was reached thanks to the fact that
considerable results meeting the innova-
tiveness criteria were achieved during the
years 2010-2013 in implementing various
R&D projects and programmes, i.e. in re-
spect to implementation of the Smart Grid
Concept and due to the objective need for
practical approbation and introduction of
innovative solutions at UNEG facilities.
Given the completion of the main scope
of construction and installation works as
part of the ongoing innovative projects
and reduction of Federal Grid’s Invest-
ment Programme due to the change of the
growth scenario for electricity trans-
mission tariffs, only RUB1,280,400,000
were spent to implement the Innovative
Development Programme instead of the
planned RUB11,389,500,000. Neverthe-
less, thanks to an increase in the efficien-
cy of our investment activities, we were
able to fulfil most of the key performance
indicators of that Programme in the re-
porting year.
2014 Innovation Costs as Broken down by Investment
Programme Item, RUB1,000,000
A
B
C
R&D programme
Integrated pilot projects to create an
active-adaptive grid with the use of innovative
technologies and energy efficiency
419.4
2,598.8
/
/
14%
84%
Creation of training centres for Federal
Grid’s operating staff
76.6
/
2%
B
B
C
C
A
A
%
%
Meeting Key Performance Indicators of Federal Grid’s
Innovative Development Programme in 2014
In the future, our efforts to imple-
ment the Innovative Development
Programme are expected to result
in the creation of an electric energy
system with a smart grid differing
from the existing grid by the follow-
ing innovative elements:
• Automated electricity transmis-
sion systems
• Active grid elements with varia-
ble parameters
• Automated real-time systems to
keep the operation of the energy
system within the limits set as
part of a uniform analysis and
decision-making system
• Current grid status monitoring
system
The smart (active-adaptive) grid
and the principles of management
of the energy system will be built
on the priority of systemic factors
and conditions – reliability and
economy of the system as a whole.
Smart Grid Diagram
Power generation and alternative
energy sources
Smart grid component
Consumers
2013 actual
2014 target
2014 actual
Assessment of
whether or not the
KPI has been met
Industrial installations
Smart grid
Energy transmission and storage
(high-power batteries)
Trend of reducing the cost of repair of a unit of grid equipment
relative to the cost level of 2010, %
Чистая прибыль (убыток), млн руб.
Share of the spending on equipment purchased from domestic
manufacturers in the total spending on equipment purchasing, %
Share of electricity lost in the total volume of electricity transmitted
through the grid, %
57,082
Number of company staff per 100 km of power transmission lines
(number of people)
Area of land in metropolitan areas freed from the grid
infrastructure, ha
2010
2011
2012
2013
5,137
2014
1
38
4.28
14.76
200
Met
Полная себестоимость, млн руб.
2.5
2
35
4.47
15
92,900
400
44.5
Met
4.13
132,948
140,259
Met
116,510
14.56
Met
0
Not met
82,501
2010
2011
2012
2013
2014
Share of undersupply of electricity to consumers in the total volume
of electricity transmitted through UNEG, %
-2,468
0.0006
0.0027
0.0002
Number of exclusive rights documents (patents and registration
-25,898
certificates) obtained through the R&D work for the year
-24,532
Number of technologies and products developed and introduced
into production through the R&D work, pcs.
The share of R&D expenditure at FGC’s own expense relative to the
revenue (from electricity transmission through UNEG), %
55
4
1.1
20
2
1.1
Share of funds secured from external sources in the total financing, %
Диаграмма динамика долгового портфеля ОАО «Ф СК ЕЭС», млрд руб.
2.0
0
Share of expenditures on R&D performed by universities relative to
the total R&D expenditure, %
300
2.4
1.0
Met
Met
Met
56
9
0.25
Not met
0
6.7
Not met
Met
Power transmission lines
New Principles and Technologies Underlying the Smart Energy System with
Active-Adaptive Grid
• The smart grid is rich with active
components that allow changing
its topological parameters
• Sufficient number of sensors to
measure current mode param-
eters for monitoring the grid con-
dition in various operation modes
of the energy system
• Data collection and processing
system and controls for grid
active components and consumer
electric installations
• Tools for automatically assess the
current conditions and preparing
grid operation forecasts
• High-performance control system
• Necessary actuators and mecha-
and fast data exchange
nisms for real-time measurement
of grid topological parameters
and interaction with adjacent
power assets
250
200
1050
100
50
0
56,0
17,5
35,0
160,0
50
25,0
105,0
100,0
17,5
164,8
100,0
17,5
140,3
5151
2010
2011
2012
2013
2014
2013
2014
2015
2010
2011
2012
2013
2014
Облигации
Кредиты
Еврооблигации
Инфраструктурные облигации
Основные средства
Незавершенное строительство
Авансы под внеоборотные
активы
Долгосрочные
финансовые вложения
Оборотные
активы
PERFORMANCE RESULTS / INVESTMENTS AND INNOVATIVE DEVELOPMENTСтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсонал Russia’s First Digital Substation
In 2014, we completed our work
to build Russia’s first digital
substation, which, in addition
to performance of its designed
functions, also serves as a test
ground for development of new
innovative solutions in this
field.
Our new digital substation will
enable us to implement the
following tasks:
trol devices based on IEC 61850-
9.2 and IEC 61850-8.1 as well as
develop and test the optimum
structure of a “process bus”
based on IEC 61850-9.2
• Comprehensively the test digital
substation equipment in both
normal and emergency opera-
tion conditions of the simulated
electric grid
• Make electric grid operation
• Test next-generation digital
monitoring, protection and con-
more reliable and begin migrat-
ing to “unattended” substations
R&D
Federal Grid’s Innovative Develop-
ment Programme includes R&D works
to develop and test breakthrough and
enhancing innovative technologies. The
breakthrough technologies includes dig-
ital substation, electric equipment based
on high-temperature superconductivity,
multi-agent control systems, and energy
accumulation.
We are currently implementing our R&D
Programme for the Years 2014-2018. It
is designed to ensure stable, long-term
funding of our efforts to develop state-
of-the-art technologies, equipment and
devices and is aimed at enhancing the re-
liability, quality and economy of consumer
power supply by upgrading the Russian
UES grids and turning them into a smart
core of the future power technological
infrastructure.
Target Subprogrammes
under the R&D
Programme
• Digital substation
• New materials and
designs
• Process Management
• Operation and monitoring
• Digital design
• Power conversion and
transmission
101.7
/
18%
33.8
32.1
/
/
6%
6%
108.1
/
19%
48.6
/
9%
122.2
/
22%
23.9
48.3
45.0
/
/
/
4%
8%
8%
I
H
A
G
F
B
C
D
%
E
R&D programme
A
B
Integrated pilot projects to create an
active-adaptive grid with the use of innovative
technologies and energy efficiency
419.4
14%
2,598.8
84%
/
/
C
Creation of training centres for Federal
76.6
/
2%
Grid’s operating staff
B
C
%
A
A
B
C
D
E
F
G
H
I
BAM and Transsib
BRELL
Development of Backbone grids
Renovation
Ensuring capacity delivery
Technological connection
Programmes of national significance
Other
Power suply to Southern Federal District
In accordance with our Investment
Programme, we spend RUB419 mln to
implement our R&D Programme in 2014.
The reduction of the R&D funding volume
compared to the previous year was
caused by some adjustments we made to
our Investment Programme in line with a
change of the power transmission tariff
growth scenario.
R&D funding,
RUB bln
3,0
2,0
1,0
0,0
2.9
1.9
1.7
1.0
0.4
2010
2011
2012
2013
2014
Динамика объема финансирования НИОКР, млн руб.
Выручка, млн руб.
As part of our efforts to implement the
R&D Programme, we reached the follow-
ing key results in 2014:
• We developed a prototype of a 220-kV,
63-MVA power gas-insulated trans-
former that will reduce substation
maintenance and fire-extinguishing
system costs as well as land-use costs
by providing a more efficient substation
setup.
• We developed and built a pre-produc-
tion model of a thyristor-controlled
phase-shifting device designed to be
installed on the 500-kV Voskhod substa-
tion that will eliminate overload on the
220-kV Tatarskaya-Voskhod overhead
transmission line and control the
Ural-Siberia power flow by re-distrib-
uting power among the relevant links;
prevention of loop power flows is likely
to yield 200-300 MVA in potential reduc-
tion of power losses in the grid adjacent
to the 500-kV Voskhod substation.
111,085
2010
• We developed a prototype of a remote
temperature control system for con-
tact joints and some components of a
overhead transmission line (such as
loop joints and terminal and connecting
clamps), which system is designed for
collection, storage and online trans-
mission of overhead transmission line
technical condition data.
138,137
168,941
138,836
• We developed sets of documents on
aesthetic single-circuit and twin-cir-
cuit supports for 220-kV overhead
transmission lines sufficient for use in
155,352
high-voltage power transmission line
new construction and reconstruction
projects; those supports are designed to
be installed in metropolitan centres, at
entrances to cities and towns, along ring
and bypass roads, and at approaches
to substations within the precincts of
cities and towns to improve the aesthetic
2013
appearance of backbone power trans-
mission lines.
2012
2014
50
50
0
2011
Динамика структуры активов, млн руб.
As part of our
efforts to implement
our R&D Programme,
Federal Grid Company
had 56 intellectual
properties registered
with Rospatent in 2014,
including:
1 037 493
1 122 995
902 110
1 214 291
1 231 217
26
computer software
certificates
11
utility model
patents
19invention
Размер стандартизированной
ставки С1 в 2013-2015 гг.,
руб./кВт (без НДС)
patents
27,56
27,56
28,61
2010
2011
2012
2013
2014
2013
2014
2015
2010
2011
2012
2013
2014
Основные средства
Незавершенное строительство
Облигации
Кредиты
Еврооблигации
Инфраструктурные облигации
Авансы под внеоборотные
активы
Longer-term Plans
Долгосрочные
финансовые вложения
Оборотные
активы
Чистая прибыль (убыток), млн руб.
57,082
Полная себестоимость, млн руб.
132,948
140,259
116,510
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
5,137
92,900
82,501
-2,468
-24,532
-25,898
Диаграмма динамика долгового портфеля ОАО «Ф СК ЕЭС», млрд руб.
300
250
200
1050
100
50
0
25,0
105,0
56,0
17,5
35,0
160,0
100,0
17,5
164,8
100,0
17,5
140,3
Given the limited funding in the years
ahead, we intend to concentrate on
improving the quality and efficiency of
planning and implementation of our R&D
Programme and focus our efforts on the
most advanced and critical areas of our
innovative activities.
We also plan to further actualise our
“open innovation” tools for working with
our partners in innovative development
in the following areas:
• Development and popularisation of
Federal Grid’s public documents
and Internet resources concerning
innovative development, oriented to
our partners and counterparties and
setting out goals and objectives, key
requirements and technologies, and
other important information related
to modernisation of UNEG, building
of a smart grid and other areas of our
innovative development
• Further development of innovative
competencies centres established with
participation or support from Federal
Grid Company on the premises of uni-
versity labs, chairs, departments and
small innovative “subsidiaries” and
based on innovation contests
• Development of public-private part-
nership mechanisms
• Development of management mecha-
nisms for Federal Grid’s knowledge,
competencies and production system
to maximally use our internal reserves
for innovative development
52
53
PERFORMANCE RESULTS / INVESTMENTS AND INNOVATIVE DEVELOPMENT MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL PERFORMANCE
Federal Grid’s key financial performance indicators
FINANCIAL PERFORMANCE
Operational Efficiency Leads to Better Financial
Performance
What were the implications of
the changes in the country’s
economic environment in
2014 for Federal Grids’s
performance results?
• Reduction of administrative and
management expenses by 15%
compared to the 2013 level – in
compliance with the Directive
of the Russian Government No.
2454p-P13 dated 23 April 2014
Timely measures taken by the
Company’s management in
response to dramatic change in
the Russian economic environment
in 2014 enabled to minimise the
impact of negative factors on
Federal Grid’s operations and
achieve strong performance results
for that year.
In 2014, for the first time in recent
years, Federal Grid earned net
profit of RUB5.1 billion, and a
proposal was made to pay out
dividends.”
“Responding to changes in the
economic situation, at the end of the
year Federal Grid took immediate
steps to ensure that we maintain
liquidity and are able to repay our
financial liabilities with our own
funds, which included reduction
in investment cash outlay by 20%,
we also stepped up measures to
enforce repayment of overdue
receivables.
In the current recession
environment our key priority is cost
cutting, which in 2014 was rather
successful:
• Above-target reduction of
operating expenditure – by 21.7%
from the 2012 level – following
the guidance in the Strategy
of the Electric Grid Complex
Development of the Russian
Federation, under which the
target for reduction is 15% by
2017
Does, in your view, Federal Grid
have sufficient funds available
to finance the implementation
of further development plans in
2015?
“In 2015, in the environment
of declined paying capacity of
electricity transmission services
consumers, Federal Grid is not
planning to raise any additional
loans or other debt finance; we
are going to use our own funds
for exercising bond put options
thus continuing to reduce our loan
portfolio. Currently, the levels of
financing under the investment
programme approved by the
Ministry of Energy of the Russian
Federation for 2015-2019 are being
reviewed in the light of the objective
to maintain the Company’s financial
stability while ensuring fully reliable
operation of its facilities. Along with
the reduction of the investment
programme, we use measures
aimed at raising finance with the
government support, including
issuing infrastructure bonds.”
Andrey Kazachenkov
First Deputy Chairman of
the Management Board,
Member of the
Management Boar of
Federal Grid Company
RUB million
Revenues, including:
2010
2011
2012
2013
2014
111,085
138,137
138,836
155,352
168,941
Electricity transmission services
109,510
134,875
136,581
152,710
159,881
Other operations
1,574
3,262
2,255
2,642
9,060
Full cost (costs and management expenses)
82,501
92,900
116,510
132,948
140,259
Sales profit
Other income*
Other expenses**
Profit (loss) before tax
Deferred tax assets
Deferred tax liabilities
Current profit tax
Other similar mandatory payments
Profit tax adjustment for the previous periods
28,584
45,236
22,326
22,404
28,682
150,765
175,670
113,556
61,125
35,058
112,037
209,463
150,152
101,201
49,402
67,312
11,444
- 14,270
-17,672
14,338
- 33
46
-55
1,776
-816
- 1,181
-5,545
- 8,736
- 9,977
- 8,367
- 9,264
- 8,390
- 1,471
43
206
- 3
- 21
- 0,3
-
-
- 5
- 20
-
- 18
-
Net profit (loss) for the period
57,082
- 2,468
- 24,532
- 25,898
5,137
Adjusted EBITDA ***
68,301
84,683
82,809
96,296
99,603
* Other Income includes income from participation interest in other organisations and interest receivable
** Other Expenses include interest payable
*** Not including entries re charging and recovery of doubtful debts, revaluation of assets and revenue relating to technological connection
Based on the results of the Federal Grid’s financial performance
analysis, it should be noted that there was an upward trend in
revenues over the period 2010-2014.
Federal Grid’s performance results for 2014 indicate an increase
in the Company’s operating efficiency confirmed both by income
growth and cost optimisation under the restriction on tariff growth.
Динамика выручки, себестоимости и чистой прибыли
Revenues, expenses and net profit in 2010-2014, RUB million
57 082
92 900
138,137
138,836
116 510
111,085
116,510
155,352
168,941
5 137
132,948
132 948
140,259
140 259
92,900
138 137
138 836
155 352
82 501
82,501
57,082
111 085
168 941
5,137
2010
2010
2011
2011
–2,468
2012
2012
2013
2013
2014
2014
-2 468
- 24 532
- 25 898
Revenues
Full cost
Net profit (loss)
–24,532
–25,898
54
55
PERFORMANCE RESULTS / MANAGEMENT’S DISCUSSION AND ANALYSIS 2010
2011
2012
2013
2014
Change in
2014/2013
Change in
2014/2013,
%
• disposition of personnel was opti-
mised with a partial release of office
space (a lease agreement relating to
non-residential space in Moscow at the
address Nametkina Street, bldg 12A,
was terminated; currently, some of the
Company’s subdivisions are moving to
the building at Belovezhskaya Street,
bldg 4)
• optimisation of headcount was conducted.
Revenue structure in 2010-2014
RUB million
Revenues, including:
Revenues from electricity transmission services
109,510
134,875
136,581
152,710
159,881
7,172
111,085
138,137
138,836
155,352
168,941
13,589
8.7%
4.7%
Revenues from technological connection services
Revenues from other operations
609
965
2,127
1,077
986
7,002
6,016
610.2%
1,135
1,178
1,656
2,058
402
24.3%
Revenues
During 2014, Federal Grid’s revenues
grew from the 2013 level by 8.7%, in-
cluding revenues relating to electricity
transmission through UNEG by RUB7,172
million (4.7%) and relating to providing
services under agreements on tech-
nological connection for the amount
of RUB6,016 million. The reasons for
this included stepped-up work to chase
payments of applicants, including in re-
spect of generation facilities, taking into
account the investment expenses for con-
structing new and developing the existing
grid infrastructure to provide generating
capacity in line with the Amendments
to the Federal Law On Electric Power
Industry No. 35-FZ dated 26 March 2003
effective from 6 November 2013.
Cost and management expenses
in 2010-2014
RUB million
2010
2011
2012
2013
2014
Full cost (cost and management
expenses), including
82,501
92,900
116,510
132,948
140,259
Production costs*
43,953
44,390
47,657
51,056
49,974
Management expenses
4,647
6,940
7,326
7,412
6,843
Depreciation and property tax
33,901
41,570
61,527
74,480
83,442
* includes part of administrative expenses
Cost optimisation
In order to increase efficiency of the Fed-
eral Grid’s operations and to optimise the
volume and structure of production costs
and management expenses, the Company
developed a comprehensive Programme
for Improving Efficiency of Operations
approved as part of the Federal Grid’s
business plan for 2014-2018.
The results of our efforts designed to im-
prove the Company’s performance in 2014
were the following:
Production costs
The key factors for a decrease in produc-
tion costs in 2014 compared to 2013 are:
• a RUB1,524 million (28%) decrease
in the volume and cost of the work
performed by third-party contractors
on repairs and maintenance under the
programme for improving the Federal
Grid’s operational efficiency;
• a RUB267 million (16%) increase in
expenses relating to electricity tran-
sit services due to rouble weakening
(transit of electric power is effected
via foreign grids) and indexation of the
transit service tariff.
Management expenses
The key drivers for lowering management
expenses in 2014 compared to 2013 are
the following:
• expenses relating to consulting services
increased by RUB418 million (337%) due
to the entering into a service contract
with JSC Rosseti for arranging oper-
ation and developing the electric grid
complex;
• software purchase and maintenance
costs were reduced by RUB270 (18%)
within the programme for increasing
the Federal Grid’s performance effi-
ciency and effectiveness;
• labour costs, social charges and insur-
ance payments decreased by RUB223
million (8%) as a result of the headcount
optimisation;
• property lease payments were reduced
by RUB190 million (26%) as a result
of acquisition of an office building at
Belovezhskaya Street.
Depreciation and property tax
The key factors for the changes in costs
and expenses in 2014 compared to 2013
are the following:
• depreciation payments increased by
RUB7,156 million (10%) due to adding
new electric grid facilities to fixed
assets as part of the implementation of
the investment programme, and to the
revaluation of fixed assets carried out
by the Company;
• property tax increased significantly by
RUB1,807 million (50%) due to intro-
duction of a large number of new fixed
assets from prior years and to the
repeal of property tax benefits relating
to power transmission lines.
In the future, Federal Grid will continue to implement the adopted programmes for improving performance efficiency. The Company
is also planning to carry out projects of internal and external benchmarking, which will enable to establish cost optimisation target
values – both for MES branches and for Federal Grid as a whole.
Federal Grid’s key operating and financial performance
indicators (reflecting measures implemented under
the Cost Management Programme)
Expenses included in the basis of
the Cost Management Programme
(in 2012 prices), RUB million *
Amount of equipment in
maintenance, c.u**
Increase in c.u. relative to the 2012
level (with account of the elasticity
coefficient of operating expenses by
volume of assets, Q = 0.75)
Adjusted fixed expenses per 1 c.u. (in
2012 prices), RUB ‘000/c.u.
Reduction in unit operational
expenditure, %
Adjusted fixed expenses (with
account of increase in c.u. and
consumer price index), RUB
‘000/c.u.
2012
2013
2014
Change in
2014/2012
37,534
36,708
32,343
-5,191
-13.8%
1,139,492 1,227,400 1,254,789
115,297
10.1%
-
1.058
1.076
-
-
32.9
29.9
25.8
-7.2
-21.7%
-
-9.2%
-21.7%
-
-
37,534
34,700
30,062
-7,472
-19.9%
*controlled expenses (excluding electricity bought to cover losses, transit of electricity, depreciation of fixed
assets and amortisation of intangible assets, taxes and charges, etc.)
** based on data provided by Federal Grid’s operating units (actual data may be adjusted based on evaluation
by a special organisation)
The results of 2014 show that the Compa-
ny has fulfilled all assignments in respect
of improving its operational efficiency:
• Administrative and management ex-
penses were reduced by 15% compared
to the 2013 level, in compliance with the
Directive of the Russian Government
No. 2454p-P13 dated 23 April 2014, to
RUB11,427 million in 2014
• The Company achieved a reduction of
operating expenditure (OPEX) com-
pared to the 2012 level, which was
above the target set by the Strategy
of the Electric Grid Complex Develop-
ment of the Russian Federation (21.7%
in 2014 vs. target of 15% in 2017); the
effect from the implementation of the
programme was RUB7,472 million
• Unit investment expenditure (CAPEX)
was decreased by 17.03% as compared
with the 2012 level, in accordance with
the recommendations of the Strategy of
the Electric Grid Complex Development
of the Russian Federation
• The Company earned net profit in the
amount of RUB5,137 billion
• The Company’s debt remains within
sustainable limits as established by our
debt policy, i.e. at 3.0*EBITDA, for 2014
the debt level was RUB 257,8 billion
(2.6*EBITDA)
• purchasing costs decreased by 10-25%;
Other income and expenses
EBITDA
Net profit (loss)
• cost of purchases under long-term
agreements (supply of transformer oil,
protective clothing, inputs, provision
of service maintenance of compressor
machinery, cleaning of transmission
line paths, technical maintenance and
repairs of by Elektrosetservis) was
reduced;
• fees under agreements on providing
security services for facilities were
reduced;
• fees under agreements for IT services
were reduced (supplement agree-
ments were entered into that provided
reduction of fees at the current volume
of services);
In 2014, Federal Grid’s other income and
expenses decreased as compared with
2013 by RUB27,239 million and RUB55,894
million respectively – due to the decrease
in transactions for purchase/payment of
bank promissory notes as part of meas-
ures for placement of temporarily dispos-
able monetary resources in the amount
of RUB45,811 million, and due to the
increase, in the reporting year, in recov-
ered doubtful debt reserves of RUB17,539
million, decrease in the amount of
provisions for impairment of investments
(including in shares of JSC INTER RAO
UES) and provisions for doubtful debts in
the amount of RUB18,424 million, and an
increase in expenses due to the write-
down of fixed assets by RUB1,093 million.
Adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA)
increased by RUB3,307 million (3%) as
compared with the same period of 2013,
to RUB99,603 million
In 2014, for the first time in recent years,
Federal Grid earned net profit in the
amount of RUB5,137 million
In the light of dividends paid out for Q1
2014 in the amount of RUB437 million and
net profit earned, the management will
propose to the Board of Directors to rec-
ommend to the General Meeting of Share-
holders to pay out dividends for 2014 in
accordance with the adopted business
plan and Federal Grid’s dividend policy
56
57
PERFORMANCE RESULTS / MANAGEMENT’S DISCUSSION AND ANALYSIS 2010-2014 Net Profit Distribution
RUB million
Retained net profit (loss) for the
reporting period is allocated as
follows:
Reserve fund
Development
Covering of previous years’ losses,
remuneration of Board members
Dividends
2010
2011
2012
2013
Q1 2014
2014*
GMS Minutes
dated
04.07.2011
No 11
GMS Minutes
dated
02.07.2012
No 12
GMS Minutes
dated
02.07.2013
No 13
GMS Minutes
dated
30.06.2014
No 15
GMS Minutes
dated
30.06.2014
No 15
target
58,088
-2,468
-24,532
-25,898
437
4,700
2,904
18,578
34,028
2,578
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
437
257
-
3,596
847
* The decision on the allocation of 2014 earnings is to be made by the General Meeting of Shareholders scheduled for June 2015
A
B
C
D
E
F
G
H
I
FINANCIAL POSITION
Asset and Liability Structure
RUB million
Total assets
Non-current assets
Current assets
Total liabilities
Shareholders’ equity
Long-term liabilities
Short-term liabilities
БАМ и Транссиб
БРЭЛЛ
Развитие магистральных сетей
Реновация
СВМ
31.12.2010
Технологическое присоединение
31.12.2011
31.12.2012
Программы общегосударственного значения
1,037,493
902,110
1,122,995
Прочие
767,152
919,501
1,011,667
Энергоснабжение южного федерального округа
134,958
117,992
111,328
G
F
101,7
/
18%
33,8
32,1
/
/
6%
6%
108,1
/
19%
48,6
/
31.12.2013
122,2
/
9%
31.12.2014
22%
23,9
/
1,214,291
4%
1,231,217
48,3
/
1,092,629
45,0
/
121,662
8%
8%
1,117,921
113,296
I
H
A
B
C
D
%
E
Программа НИОКР
A
B
Комплексные пилотные проекты создания
2 598,8
84%
активно-адаптивной сети с применением инно-
вационных технологий и энергоэффективность
419,4
14%
/
/
C
Создание учебных центров подготовки
76,6
/
2%
производственного персонала ФСК
B
C
%
A
902,110
1,037,493
1,122,995
1,214,291
1,231,217
794,192
853,079
849,125
842,975
854,490
52,668
138,054
209,360
282,429
267,435
55,250
46,360
64,509
88,887
109,292
CA SH FLOW
Net cash flows
RUB million
Net cash flows
2010
2011
2012
2013
2014
-69
6,004
281
-3,196
22,149
Net cash flows from operating activities
77,582
99,194
100,494
86,688
106,499
Net cash flows from investing activities
-121,712
-163,742
-173,183
-163,485
-59,335
Net cash flows from financial activities
44,061
70,552
72,970
73,601
-25,015
Net cash flows from operating activities
consist of the following:
• Cash inflows from electricity transmis-
sion services via UNEG in the amount of
RUB150,992 million
• Cash inflows from technological
connection via UNEG in the amount of
RUB5,384 million
• Cash inflows in the form of return of
funds under bank guarantees in the
amount of RUB1,920 million under con-
tracts for work and services relating to
the construction, technical upgrade and
reconstruction of Federal Grid’s capital
facilities due to the contractors’ failure
to perform / perform properly their
contractual obligations
• Cash inflows resulting from leasing the
Company’s property in the amount of
RUB1,000 million
• Receipts from the sale of long-term
financial investments for RUB2,779
million
• Payments within operating activities,
material expenses, labour and insur-
ance payments, cash outlays relating to
maintaining property and other oper-
ating outflows – for the total amount of
RUB 41,694 million
• Payments to cover electricity transmis-
sion losses in the amount of RUB12,002
million
• Net cash flows from investing activities
are the result of the following:
• Placing temporarily disposable funds
in bank accounts as deposits in the
amount of RUB39,346 million
• Payments for acquisition, construction,
upgrading, reconstruction and prepara-
tion for operation of non-current assets
in the amount of RUB 77,198 million
• Interest payments relating to bond
issues in the amount of RUB22,321
million
Net cash flow from financial activities in
the amount of RUB25,015 million resulted
from repayment of long-term loans total-
ling RUB24,578 million (buy-out of bond
issues of the 15th and 18th series).
The above evolution of the balance
sheet items indicates that both assets
and liabilities increase every year.
Federal Grid’s total assets as at 31
December 2014 were higher than those
at the end of 2013 by RUB16,926 million
(1.4%), which was due to the following
factors (amongst other things):
• Increase in the value of non-current
assets by RUB25,292 million (2.3%),
which was caused by large-scale in-
vestments in the construction of large
fixed assets under the Federal Grid’s
investment programme and decrease
in the level of construction in progress
and advances paid out for the acquisi-
tion of non-current assets
• Decrease in current assets by
RUB8,366 million (6.9%) because of the
decrease in short-term financial in-
vestment compensated by the increase
in cash balance in the Company’s
settlement account and in the accounts
receivable
As at 31 December 2014, the asset
structure did not change compared
to 31 December 2013: the shares of
non-current and current assets were
91% and 9% respectively.
On the other side of the balance sheet,
the greatest part is shareholders’ equi-
ty at 69.4%, whereas short-term and
long-term liabilities represent 30.6%.
Federal Grid’s shareholders’ equity
increased during the reporting period
by RUB11,514 million (1.4%), which
was due to reflecting in the accounts
Динамика объема финансирования НИОКР, млн руб.
retained earnings of RUB4,700 million
(the amount was calculated taking into
account interim dividends for Q1 2014)
, increase of the share capital by the
amount of a new share issue for 2013
3,0
in the amount of RUB3,762 million
registered by the Bank of Russia, and
2,0
reflection of the revaluation of the
Company’s fixed assets (RUB2,562
1,0
million).
managed to exercise put options in
respect of its bond issues (series
18: RUB14,890 million and series 15:
RUB9,688 million) using the Company’s
own funds without raising any addition-
al finance to refinance the debt under
the current debt market deterioration.
1.0
1.9
2.9
1.7
0.4
As a result, the level of Federal Grid’s
loans (excluding any interest accrued)
decreased during the reporting period
by RUB24,578 million to RUB257,771
million as at the end of 2014.
2014
0,0
Thanks to measures taken to increase
its operating efficiency, Federal Grid
2010
2012
2011
2013
Выручка, млн руб.
Полная себестоимость, млн руб.
Чистая прибыль (убыток), млн руб.
138,137
138,836
57,082
111,085
132,948
140,259
116,510
168,941
155,352
50
0
5,137
92,900
82,501
2010
2011
2012
2013
50
2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
-2,468
-24,532
-25,898
Динамика структуры активов, млн руб.
Asset Structure Trend,
RUB million
1,122,995
111,329
52,803
65,670
296,462
594,543
1,037,493
117,992
82,047
83,665
305,202
446,893
902,110
134,958
104,138
95,801
289,338
276,063
1,214,291
1,231,217
121,662
30,406
56,921
287,896
113,296
25,765
39,762
259,595
715,009
788,861
Размер стандартизированной
ставки С1 в 2013-2015 гг.,
руб./кВт (без НДС)
27.56
27.56
28.61
2010
2011
2012
2013
2014
2013
2014
2015
2010
2011
2012
2013
2014
Fixed assets
Work in progress
Advances on
non-current assets
Long-term financial i
nvestments
Current assets
Диаграмма динамика долгового портфеля ОАО «ФСК ЕЭС», млрд руб.
300
250
200
1050
100
50
0
25.0
105.0
56.0
17.5
35.0
160.0
100.0
17.5
164.8
100.0
17.5
140.3
Bonds
Bank loans
Eurobonds
Infra structure bonds
58
59
PERFORMANCE RESULTS / MANAGEMENT’S DISCUSSION AND ANALYSIS Net asset value
RUB million
Nominal net asset value *
Net asset value (calculated with account to contributions to the
authorised capital) **
* Estimate based on annual accounts with retrospective adjustment
2010
2011
2012
2013
2014
794,470
853,354
849,400
842,975
855,251
805,617
855,573
852,647
846,731
855,251
** In 2012 and 2013, the authorised capital of Federal Grid Company was increased through an additional share issue. It led to the reporting of accounts payable to the
shareholders on their contributions to the authorised capital in the Company’s accounting statements. Upon registration of the placement report with the Russian FFMS,
these accounts will be included in the Federal Grid Company’s authorised capital. An evaluation of net asset value was made with regard to this inclusion: in the amount
of RUB2,219 million for 2011, RUB3,247 million for 2012 and RUB3,755.6million for 2013.
Accounts payable
RUB million
Accounts payable, including
trade payables
notes payable
wages/salaries payable
accounts payable to the State non-budget funds
taxes and charges payable
advance payments received
dividends payable
other accounts payable
31.12.2012
31.12.2013
31.12.2014
40,017
19,676
58,051
41,424
77,551
67,206
-
212
104
544
11,481
11
7,989
-
205
55
961
8,498
13
6,895
-
221
84
1,326
6,085
9
2,620
31.12.2012
31.12.2013
31.12.2014
61,254
53,842
60,163
Key financial indicators
Accounts receivable
RUB million
Accounts receivable, including
with maturity over 12 months from the reporting date:
trade receivables
notes receivable
cash advances
other accounts receivable
with maturity within 12 months of the reporting date:
trade receivables
notes receivable
amounts payable by subsidiaries and affiliates in respect of dividends
amounts payable by shareholders as contributions to the authorised capital
cash advances
other accounts receivable
6,177
3,670
-
-
2,507
55,077
18,442
-
-
-
1,710
1,111
5
-
-
1,705
52,132
22,061
-
-
-
5
-
-
1,106
59,052
37,501
-
-
-
1,696
1,933
1,559
34,939
28,138
19,992
In 2014, the Company’s pre-trial activities
and legal proceedings were based on the
following documents:
• Procedures for claim-related work in
the Corporate Headquarters of Federal
Grid Company approved by the Order
No. 393 dated 04 July 2011
• Procedures for interaction between the
Legal Department and MES branch-
es in the area of claim-related work
approved by the Order No. 394 dated 04
July 2011
• Regulation on claim-related work in
the Corporate Headquarters and MES
branches f Federal Grid Company
approved by the Order No. 402 dated 16
September 2014
• Procedures for interaction between
Federal Grid and its subsidiaries and
affiliates when performing claim-relat-
ed work approved by the Order No. 516
dated 18 November 2014
• Procedures for managing Federal
Grid’s receivables and payables ap-
proved by the Order No. 383 dated 09
September 2014
In 2014, Federal Grid was a party in 1,123
court cases, as a result of which payment
of RUB7,876 million for the Company’s
benefit was enforced and court rulings
were passed to decline claims against the
Company for the total of RUB5,099 million.
Within the pre-trial activities, the Compa-
ny filed 604 claims to its counterparties
in respect of failure of the latter to fulfil
their obligations towards the Company for
the total amount of RUB1,019,309,685.8,
of which claims for RUB38,988,948.56
were settled. During the same period the
Company received 257 pre-trial claims for
the total amount of RUB381,280,635.5 and
paid RUB18,818,304.59 out of this amount
to settle the claims.
During the reporting period, the Company
wrote off RUB834 million of unrecovera-
ble receivables, of which RUB29 million
were written off as a charge to the profit
(loss) account and RUB805 million as a
charge to the previously accrued provi-
sion.
RUB million
Liquidity indicators
Absolute liquidity ratio
Quick liquidity ratio
Current liquidity ratio
Financial stability indicators
Equity to total assets ratio
Total debt/EBITDA*
Current assets coverage ratio
Profitability indicators
Return on equity (ROE)*
Return on total assets (ROTA)* (based on profit before tax)
EBITDA margin*
Business activity indicators
Receivables/payables growth ratio
Total receivables/payables ratio
Most liquid receivables/payables ratio
2010
2011
2012
2013
2014
1.31
2.73
3.08
0.88
0.7
0.53
3.4%
3.4%
60.7%
1.27
1.48
0.62
1.00
2.24
2.71
0.82
1.3
0.54
4.1%
4.4%
61.3%
1.45
1.42
0.51
0.68
1.58
1.83
0.76
2.3
0.37
1.6%
1.3%
59.6%
1.48
1.53
1.12
0.67
1.29
1.43
0.69
2.8
0.3
2.0%
2.8%
62.0%
1.17
0.93
0.53
0.39
0.93
1.04
0.69
2.2
0.03
1.6%
1.9%
59.0%
0.84
0.77
0.56
* For the calculation of this indicator, EBITDA, net profit or profit before tax was not adjusted to reflect impact of external
factors outside of of the Company’s management competence
As at 31 December 2014, the actual liquid-
ity ratios are within the statutory values,
that proves the Federal Grid’s ability to
meet its short-term liabilities by using its
current assets.
The Company’s absolute liquidity ratio
(recommended value: 0.2-0.5) shows
that there remains a share of short-term
liabilities that can be covered by cash and
other highly liquid assets (securities or
bank deposits).
The quick liquidity ratio (recommend-
ed value: ≥ 1) demonstrates a sufficient
level of Federal Grid’s ability to repay
short-term liabilities with the more liquid
assets (cash, receivables, short-term
investments).
The current liquidity ratio (recommend-
ed value: 1-2) demonstrates that the
Company has retained its ability to repay
its short-term liabilities with current
assets.
The equity to total assets ratio (rec-
ommended value: 0.5-0.8) shows that
Federal Grid’s dependence on external
borrowings is within normal range and
demonstrates that the risk of insolvency
is low and that there is no risk of cash
shortage.
Therefore, Federal Grid can be described
as a financially sound company with a low
level of financial dependence and capable
of meeting its obligations.
60
61
PERFORMANCE RESULTS / MANAGEMENT’S DISCUSSION AND ANALYSIS TARIFF REGUL ATION
Tariff policy
Tariffs for technological connection and
electricity transmission services over
UNEG are regulated by the federal gov-
ernment and are approved by the Federal
Tariff Service (FTS) of Russia. Transmis-
sion services provided over distribution
grids are regulated on the regional level.
A
B
C
D
E
F
БАМ и Транссиб
БРЭЛЛ
Развитие магистральных сетей
Реновация
СВМ
Технологическое присоединение
Tariffs for electricity transmission via UNEG
Прочие
H
G
Программы общегосударственного значения
I
Энергоснабжение южного федерального округа
101,7
/
18%
33,8
32,1
/
/
6%
6%
108,1
/
19%
48,6
/
9%
122,2
/
22%
23,9
48,3
45,0
/
/
/
4%
8%
8%
Since 2010, tariffs for Federal Grid’s elec-
tricity transmission services over UNEG
have been set using a method based on
return on invested capital (“RAB regula-
tion”).
In order to calculate tariffs for each year of
the regulatory period, the required gross
revenue is determined by summing the fol-
lowing: recovery of invested capital, return
on invested capital and expenses required
to provide power transmission services via
UNEG. In order to avoid any sharp increas-
es in tariff rates, the RAB-based method
includes a smoothing mechanism, which
involves redistributing the required gross
revenue over the whole long-term period
under regulation. For the purposes of tariff
calculation, the invested capital payback
period is set at 35 years.
Under the FTS’s tariff policy, Federal Grid
must maintain the level of reliability and
quality of service indicators. Indicators of
reliability of electricity transmission are re-
lated primarily to the occurrence of process
disturbances and their consequences for the
consumers, whereas indicators of quality of
service provided to consumers are related
primarily with the timeliness of sending
technological connection agreements.
Tariff rates for electricity transmission services
to maintain electric grid facilities of UNEG
H
G
Period
I
First long-term regulation period
A
2010
01.01.2011-31.03.2011
01.04.2011-30.06.2012
01.07.2012-30.06.2013
%
01.07.2013-30.06.2014
B
C
F
01.07.2014-31.12.2014
Second long-term regulation period
D
01.01.2015-30.06.2015
E
01.07.2015-30.06.2016
01.07.2016-30.06.2017
01.07.2017-30.06.2018
01.07.2018-30.06.2019
01.07.2019-31.12.2019
For all Russian region excluding the North Caucasus
Federal District
For Russian regions in the North Caucasus Federal
District
RUB/MW per month
growth rate
RUB/MW per month
growth rate
51.1%
32.9%
- 4.9%
Программа НИОКР
37,845.23
46,029.88
43,783.55
11.0%
Комплексные пилотные проекты создания
активно-адаптивной сети с применением инно-
вационных технологий и энергоэффективность
53,119.60
9.4%
48,540.01
- 0.3%
52,923.13
-
21.6%
419,4
2 598,8
/
/
14%
- 4.9%
84%
10.9%
9.4%
- 0.4%
B
C
%
A
Создание учебных центров подготовки
производственного персонала ФСК
0%
52,923.13
76,6
/
2%
7.5%
5.5%
4.5%
4.5%
4.5%
56,868.70
59,998.32
62,697.48
65,516.20
68,472.32
0%
7.5%
5.5%
4.5%
4.5%
4.5%
87,868.77
116,782.52
111,083.35
A
123,328.44
B
134,964.06
134,589.17
C
134,589.17
144,686.52
152,648.99
159,516.24
166,687.69
174,208.71
Tariffs for electricity transmission
Динамика объема финансирования НИОКР, млн руб.
Выручка, млн руб.
via distribution grid facilities
Полная себестоимость, млн руб.
Key long-term parameters for Federal Grid’s RAB regulation approved
by the FTS of Russia
2.9
3,0
First long-term regulation period
Rate of return on capital invested before 01.01.2010
Rate of return on capital invested after 01.01.2010
2,0
1,0
0,0
1.9
1.7
1.0
2010
2011
3.9%
5.2%
2010
2011
11.0%
2012
2013
11.0%
2012
0.4
6.5%
2014
11.0%
2013
2014
7.8%
10.0%
10.0%
10.0%
111,085
2010
Capital invested by Federal Grid, RUB billion
647.6
-
-
-
-
Indicator for reliability of services provided
Indicator for quality of services provided
-
-
0.049
0.0483
0.0475
0.0468
1.2599
1.241
1.2224
1.204
Second long-term regulation period
Rate of return on capital invested
Base level of operating expenses, RUB billion
Динамика структуры активов, млн руб.
2015
2016
2017
2018
2019
10%
35,02
10%
10%
1,214,291
10%
1,231,217
10%
-
1,122,995
-
-
3%
-
3%
Index of operating expenses efficiency
-
1,037,493
3%
3%
Net working capital, RUB billion
902,110
11,42
11,92
12,43
12,97
13,52
Indicator for reliability of services provided
0,03602
0,03548
0,03495
0,03443
0,03391
Indicator for quality of services provided
1,23908
1,22049
1,20219
1,18415
1,16639
In accordance with Government Resolution
No. 1045 dated 12 December 2009, differ-
ential tariff rates were set for electricity
transmission services to maintain electric
2011
2010
grid facilities of UNEG for regions of the
North Caucasus Federal District of Russia.
Fixed assets
Advances on
non-current assets
62
2012
2013
2014
2013
2014
2015
Work in progress
Long-term financial i
nvestments
Current assets
155,352
168,941
Federal Grid’s services to transmit elec-
tricity over distribution grids are provided
with the use of their facilities built under
138,137
the Federal Grid’s investment programme
by the State-owned company Olimpstroy
and other distribution grid facilities that
were leased or provided for use without
138,836
50
0
Чистая прибыль (убыток), млн руб.
compensation by Federal Grid in accord-
ance the requirements of the relevant
Resolutions of the Russian Government.
57,082
in 2015 shall be RUB1,780.5 million in the
Krasnodar Krai and RUB33.2 million in the
Primorskiy Krai.
In accordance with the decisions of
regional authorities, the required gross
revenue of the distribution grids’ facilities
5,137
92,900
82,501
132,948
140,259
116,510
2011
Tariffs for technological connection
2012
2013
2014
2010
50
2011
2012
2013
2014
2010
2011
2012
2013
2014
The FTS of Russia established a procedure
for applying two calculation methods for
technological connection: approval of an
individual fee for a particular applicant and
a formula calculation based on standard
tariff rate R1.
Standard tariff rate R1 has been set on the
same level for consumers in all regions of
the Russian Federation irrespective of the
level of capacity connected or the voltage
level.
-24,532
-2,468
-25,898
In 2014, payments for technological
connection under individual projects
was used in settlements with 25
consumers. The total level of such
payments was RUB34.4 billion (ex
VAT). Applicants with the largest
payment amounts include:
Размер стандартизированной
Standard tariff rate R1
ставки С1 в 2013-2015 гг.,
in 2013-2014, RUB/kW
руб./кВт (без НДС)
(ex VAT)
27.56
27.56
28.61
Диаграмма динамика долгового портфеля ОАО «ФСК ЕЭС», млрд руб.
300
250
200
1050
Starting from 6 December 2013, payments
for technological connection of generation
facilities to UNEG, in addition to expens-
es relating to construction of new grid
facilities include investment costs relating
to expanding the existing grid infrastruc-
ture for the delivery of generation capacity
(irrespective of the generation type).
56.0
100
50
0
2010
Bonds
63
RUB
14.2 bn
RUB
10.7 bn
RUB
1.49 bn
RUB
1.45 bn
RUB
1.1 bn
RUB
2011
1 bn.
Bank loans
JSC Boguchanskaya HPP
17.5
35.0
JSC Rosenergoatom –
Leningradskaya NPP-2,
block No 1
JSC Fortum -
Nyaganskaya HPP,
Block No 1
JSC OGK-2 –
Chererepovetskaya HPP,
Block No 4
160.0
LUKOIL-
Astrakhanenergo LLC
JSC Fortum –
2012
Nyaganskaya HPP,
Block No 2
Eurobonds
25.0
105.0
100.0
17.5
164.8
100.0
17.5
140.3
2013
2014
Infra structure bonds
PERFORMANCE RESULTS / MANAGEMENT’S DISCUSSION AND ANALYSIS A
B
C
D
E
F
G
H
I
БАМ и Транссиб
БРЭЛЛ
Развитие магистральных сетей
Реновация
СВМ
Прочие
Технологическое присоединение
Программы общегосударственного значения
Энергоснабжение южного федерального округа
101,7
/
18%
33,8
32,1
/
/
6%
6%
108,1
/
19%
48,6
/
9%
122,2
/
22%
23,9
48,3
45,0
/
/
/
4%
8%
8%
I
H
A
G
F
B
C
D
%
E
Программа НИОКР
A
B
Комплексные пилотные проекты создания
2 598,8
84%
активно-адаптивной сети с применением инно-
вационных технологий и энергоэффективность
419,4
14%
/
/
C
Создание учебных центров подготовки
76,6
/
2%
производственного персонала ФСК
B
C
%
A
DEBT PORTFOLIO
CREDIT R ATINGS
Динамика объема финансирования НИОКР, млн руб.
Выручка, млн руб.
3,0
2,0
1,0
0,0
2.9
1.9
1.7
1.0
0.4
2010
2011
2012
2013
2014
138,137
138,836
111,085
168,941
155,352
50
0
2010
2011
2012
2013
50
2014
Динамика структуры активов, млн руб.
1,214,291
1,231,217
1,122,995
1,037,493
902,110
Размер стандартизированной
ставки С1 в 2013-2015 гг.,
руб./кВт (без НДС)
27.56
27.56
28.61
2010
2011
2012
2013
2014
2013
2014
2015
Fixed assets
Work in progress
Advances on
non-current assets
Long-term financial i
nvestments
Current assets
Federal Grid’s Debt Portfolio
as at 31 December 2014
Полная себестоимость, млн руб.
Type of debt
Bond issues
Infrastructure bonds
5,137
Eurobonds
TOTAL
2014
Amount, RUB bn
Time to maturity, years
140.3
132,948
140,259
116,510
92,900
82,501
2010
2011
2012
100.0
17.5
257.8
2013
2014
1.5 - 8
32 - 34
4.25
-
Чистая прибыль (убыток), млн руб.
57,082
During 2014, Federal Grid was working
on reducing its debt portfolio through
exercising put options under the Compa-
ny’s outstanding bond issues. As a result,
the debt portfolio decreased compared
to the previous year by RUB24.6 billion
to RUB257.8 billion. In case of financing
requirements and positive market trends,
the Company can place a repurchased
portion of the bond issues through a
secondary bond placement. The Com-
pany meets its obligations on servicing
its debt portfolio and debt repayment
in full and on time.
2012
2011
2010
2013
-2,468
Federal Grid’s local bonds are listed on
the MICEX and its Eurobonds are traded
at the Irish Stock Exchange.
-24,532
-25,898
In addition, the Company has revolving
and non-revolving credit facilities opened
with major Russian banks (Sberbank
of Russia, Gazprombank, Alfa-Bank,
NOMOS-Bank, Promsvyazbank, AB
Russia and Bank Saint Petersburg) with
maturities of 5–15 years.
In 2015, we expect to exercise put
options for the total amount of RUB 25
billion under the following bond series:
exchanged-traded bonds of BO-01 series,
bonds of 10 and 07 series).
Диаграмма динамика долгового портфеля ОАО «ФСК ЕЭС», млрд руб.
300
Federal Grid’s debt portfolio,
RUB billion
250
200
1050
100
50
0
25.0
105.0
56.0
17.5
35.0
160.0
100.0
17.5
164.8
100.0
17.5
140.3
Starting from the first quarter of 2014,
highly reliable indicators of the Federal
Grid’s credit quality assigned by interna-
tional rating agencies have been under
pressure as Russian sovereign ratings
appeared likely to be downgraded in the
environment of growing geopolitical risks
related to the events in Ukraine, slower
economic growth due to sanctions im-
posed by foreign countries, dramatic fall in
the international oil prices, weaker nation-
al currency and significantly higher Rouble
cost of borrowing in the capital markets.
Despite that, financial position of our Com-
pany remains strong and stable, which is
confirmed by evaluation of Federal Grid’s
credit on a stand-alone basis, i.e. without
factoring in the state support component.
During the period from the end of 2014
to the time of preparation of the Annual
Report, rating agencies carried out addi-
tional actions in relation to Federal Grid’s
ratings, including actions performed as
part of the procedures on reviewing for
downgrade the Russia’s sovereign rating.
category under Fitch Ratings’ scale and
in speculative category under Standard
& Poor’s and Moody’s scales. It should be
noted that our Company remains financial-
ly highly stable, the change in its ratings
is due to lowering of the country ceiling,
and the assumption made by the agencies’
analysts that the likelihood of the Compa-
ny’s receiving state support in the event of
significant deterioration of its performance
has decreased.
At the date of preparation of the report,
Federal Grid’s ratings are in line with the
sovereign levels and are in investment
Information on Federal Grid’s credit ratings
Rating agency
as at 31.12.2014
as at the date of the
preparation of the
Annual Report
as at 31.12.2014
as at the date of the
preparation of the
Annual Report
International scale
National scale
ВВВ- / under review
for downgrade
ВВ+ / outlook:
negative
ruAAA / under review
for downgrade
ruAA+
Ваа3 / under review
for downgrade
Ва1 / ВВ+ / outlook:
negative
Aaa.ru / under review
for downgrade
Aa1.ru
2010
2011
2012
2013
2014
Bonds
Bank loans
Eurobonds
Infra structure bonds
ВВВ / outlook:
negative
ВВВ- / ВВ+ / outlook:
negative
AAA(rus)
AAA(rus)
64
65
PERFORMANCE RESULTS / MANAGEMENT’S DISCUSSION AND ANALYSIS Social responsibility and
sustainable development
Long-term sustainability and reliability of Federal
Grid Company depend on creating favourable
conditions for HR development and maintaining a
constructive dialogue with all stakeholders
T
L
A
E
H
+
G
N
I
N
I
A
R
T
D
N
A
A
D S
N
H A
F E T Y + SOCIAL S
U
P
P
O
R
T
+
C
O
R
P
O
R
A
T
E
C
U
L
T
U
R
E + DIA
OGUE +
L
T
N
E
M
P
O
DEVEL
Infrastructure
Technology
+
+
=
Strategy
Reliability
Governance
+
Cooperation
SUSTAINABLE DE VELOPMENT PRINCIPLES
Constructive Dialogue
with Stakeholders
We consider the sustainable development
policy to be an effective tool for delivering
our strategic objectives – rational use
of resources and ensuring the reliable
power supply.
The main principles of the Federal Grid’s
sustainable development policy are
maintaining a balance between social
and economic interests in the Company’s
activities and focusing on those aspects of
sustainable development that are of high
priority for our stakeholders.
Strategic priorities of Federal Grid’s sustainable
development
• Innovative development of
domestic energy industry
• Building a talent pool for the
smart energy system
• Developing responsible
human resource
management practices
• Health and Safety
improvement
• Ecologisation and improving
energy efficiency of electric
grids
• Fair distribution of value
created and evaluation
of economic efficiency
of innovations and new
technologies
• Integrating the social
responsibility strategy into
internal business processes
As part of preparing the Social Report,
the Company discusses its key topic with
stakeholders and collects disclosure
requests. Prior to publication, the text
of the Report is discussed publicly in the
form of hearings held either in absentia or
in person.
Our Social Reports are registered with the
National Registry of Corporate Non-Fi-
nancial Reports, which is maintained by
the Russian Union of Industrialists and
Entrepreneurs.
Regular, open communication with
stakeholders plays an important role, as
it allows us to better understand their
expectations and to use a target-oriented
approach for shaping the corporate social
responsibility agenda. The communication
channels we use for the dialogue include
congress and exhibition arrangements,
multilateral discussions, raising aware-
ness through mass media.
Since 2008, Federal Grid Company has
published annual reports on social re-
sponsibility and corporate sustainability
(Social Report). Reports are prepared in
accordance with international standards
for non-financial statement disclosure:
GRI Guidelines, the GRI energy protocol,
AA 1000 SES standard.
67
СтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсонал
Stakeholder Engagement
Stakeholders
Understanding of Social Responsibility
Progress in 2014
The State
Consumers
• Meeting obligations under the investment
programme
• Ensuring the reliable and uninterrupted power
• Signing several cooperation agreements with public
supply
authorities (Rosreestr, regional agencies)
• Implementing priority public sector projects
• Drafting, approving and implementing the import
• Transparency and efficiency of operations, meeting
with the needs of the economy
substitution programme
• Creating and arranging meetings of the Consumer
• Supporting the domestic power plant industry,
Council
encouraging import substitution
• Distributing SPV mechanism to accelerate consumer
• Openness and flexibility in consumer relations
access to UNEG
Shareholders and Investors
• Transparency of business processes
• Growth in shareholder value
• Signing cooperation agreements with Rosneft, RZD
and other companies
• Holding General Meeting of Shareholders
• Arranging meetings of Federal Grid’s senior
executives with analysts from investment banks and
funds, rating agencies
• Holding consultation meetings with minority
shareholders – individuals
Employees
• Taking measures for attracting and retaining young
• Creating decent working conditions
specialists
• Health and Safety
• Implementing a Corporate Housing Programme
• Providing opportunities for professional and personal
• Doors Open Days
growth
• Social support
• Holding professional skill competitions
• Ensuring professional training, including within the “
Knowledge Days”
Suppliers and Contractors
Local Communities and
Environmental Team
Science and Education
Mass Media
• Creating transparent competitive environment
manufacturers
• Signing agreements with Russian and foreign
• Using a market based pricing model
• Supporting domestic suppliers in access to foreign
markets
• Reducing negative impact on the environment
• Signing a first (among electric power companies)
cooperation agreement with the World Wildlife
Fund (WWF) on conservation of oriental storks and
prevention of bird death on power lines
• Participation in Earth Day
• Promoting industry-specific science and education
• Cooperating with scientific organisations, placing
• Personnel training and ensuring generational
continuity
• Applying innovative technologies that reduce
orders for R&D
• Organising practical training, Days of Federal Grid
Company in education institutions
environmental impact
• Organising students’ teams
• Transparency of business processes
• Ensuring information accessibility of the Company’s
activities
• Holding media events (briefings, press-points, and
others)
• Distributing press releases on a timely basis
• Handling requests from mass media
68
HR POLICY
Developing Human Capital
Our employees are those who ensure
a reliable operation of UNEG facilities.
Our objective is to create and sustain
conditions for optimal use of workforce
capacity and to ensure the availability
of qualified personnel with the mini-
mum level of employee turnover.
Federal Grid’s HR Policy aims to in-
crease productivity, strengthen social
protection of employees, create fa-
vourable social climate and ensure that
employees and other stakeholders have
a positive perception of the Company’s
image.
young specialists. For example, the
Company compensates them rental
cost and provide corporate housing
for young specialists in remote
regions.”
Professional competency of
employees is one of the key
components of the formula
for reliability of Federal Grid
Company. What efforts does
the Company make to attract
young talent under conditions
of manpower shortage in the
market?
“To attract the best graduates,
to help them with adaptation and
to increase their interest in a
long-term development within the
Company, we implement a number
of projects, from engagement with
higher-education institutions and
specialised secondary schools
to social programmes for young
specialists.
Federal Grid develops close
relationship with industry-specific
education institutions. Today,
cooperation agreements are in force
with 50 higher-education institutions
of our country and 13 specialised
secondary schools. The main areas
of cooperation are improving the
structure and content of educational
programmes for power engineers,
developing topics for graduation
works and thesis researches
for students and postgraduates,
organising the traditional annual
Day of Federal Grid Company in
education institutions, practical and
pre-graduation practical training for
students, training for teaching staff
at the Federal Grid facilities.
In the reporting year, more than
640 students undertook practical
and pre-graduation training at
the Federal Grid’s facilities. The
Company hires more than 400
graduates of higher-education
institutions annually.
Federal Grid has a number of
social programmes targeted at
Natalia Ozhegina
Deputy Chairman of the
Management Board of
Federal Grid Company
69
SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT / SUSTAINABLE DEVELOPMENT PRINCIPLES Динамика списочной численности персонала ФСК
Уровень обеспеченности ФСК персоналом
A
B
C
D
E
F
G
H
I
MES Siberia
MES Ural
MES South
MES North-West
MES Volga
MES Western Siberia
MES East
Executive Office
MES Centre
16%
11%
11%
11%
9%
8%
8%
4%
22%
A
B
C
I
F
%
H
G
E
D
98.2%
97.0%
96.7%
95.6%
95.0%
2010
2011
2012
2013
2014
25,741
25,103
24,603
24,518
26 000
25 000
24 000
22 000
21 000
20 000
23 000
22,513
2010
2011
2012
2013
2014
Структура персонала
по уровню образования
Headcount and Personnel Structure
Динамика списочной численности персонала ФСК
Динамика списочной численности персонала ФСК
At the end of 2014, the headcount of Fed-
eral Grid Company was 24,518 employ-
ees, a 5% decrease on 2013. Headcount
optimisation was made under the policy
for increasing productivity that involves
a 10% decrease in the number of ad-
ministrative and managerial personnel
compared with 2013 figures.
2014 Employee Headcount
by Branch
MES Siberia
16%
MES Ural
11%
A
B
I
A
I
Динамика списочной численности персонала ФСК
MES South
11%
MES Siberia
16%
A
C
B
C
D
E
F
D
E
F
G
H
MES Ural
MES North-West
MES South
MES Volga
25,741
MES North-West
MES Western Siberia
24,603
MES Volga
MES East
25,103
MES Western Siberia
Executive Office
26 000
25 000
24 000
23 000
H
G
H
G
F
11%
11%
11%
11%
9%
8%
24,518
8%
9%
4%
22%
8%
8%
4%
E
F
Employees by
Educational Level
Уровень обеспеченности ФСК персоналом
0.1%
0.4%
7.7%
0.1%
0.4%
7.2%
Структура персонала по возрасту
0.1%
0.4%
5.5%
Структура персонала по категориям
Уровень обеспеченности ФСК персоналом
98.2%
33.1%
100%
90%
80%
33.0%
9.4%
33.1%
10.3%
58.7
59.3
60.9
B
A
100%
80%
60%
40%
20%
C
0%
%
%
B
A
B
D
C
D
16%
11%
11%
C
2012
D
E
F
G
H
16.4%
42.1%
MES Siberia
42.4%
MES Ural
MES South
95.6%
16.3%
42.9%
16%
95.0%
95.6%
11%
40.8%
11%
95.0%
MES North-West
2013
2010
11%
2011
Workes
MES Volga
Higher professional education
Professional Employees
2010
Candidate's Degree
A
9%
8%
2011
MES Western Siberia
I
MES East
Executive Office
8%
4%
G
F
97.0%
16.0%
97.0%
40.7%
I
43.3%
98.2%
70%
96.7%
60%
58.7%
A
59.3%
50%
96.7%
40%
30%
20%
Уровень обеспеченности ФСК персоналом
66.3%
65.6%
60.9%
2012
2014
H
Management
2013
Уровень обеспеченности ФСК персоналом
Secondary general education
2012
2.8%
2014
0%
Secondary vocational education
2013
2012
%
B
10%
2013
22.2%
2014
95.6%
2012
Doctor's Degree
2013
2014
C
20.8%
2.5%
95.0%
97.0%
2014
22.1%
1.8%
96.7%
2012
2013
2014
Working Pensioners
98.2%
25 -50
97.0%
2010
50 - Pension Age
Under 25
2011
96.7%
2012
2013
2014
Среднее профессиональное образование
H
Material incentives
Динамика списочной численности персонала ФСК
22%
B
95.6%
Ученая степень кандидата наук
MES Centre
11%
I
%
E
D
2010
2011
2012
2013
2014
Динамика списочной численности персонала ФСК
MES East
MES Centre
I
Dynamics of Employee
Headcount
G
22,513
H
Executive Office
25,741
22 000
I
MES Centre
E
MES Siberia
Уровень обеспеченности ФСК персоналом
MES Ural
22%
B
A
25,103
24,603
A
21 000
24,518
20 000
Stuff Sufficiency
2011
2010
2012
2013
2014
C
D
E
97.0%
F
MES South
98.2%
MES North-West
MES Volga
MES Western Siberia
96.7%
30%
95.6%
Структура персонала по возрасту
MES East
G
H
Executive Office
16%
I
95.0%
Структура персонала по возрасту
I
11%
MES Centre
10.3%
9.4%
A
20%
10%
0%
10.1%
22%
66.7%
100%
11%
9%
33.1
8%
8%
4%
33.0
G
F
Структура персонала по категориям
2010
2011
F
Структура персонала по категориям
%
B
C
2012
2013
A
B
2014
C
D
D
16.3%
16.0%
16.3%
E
E
In the second half of the reporting year,
42.9%
F
a project was launched for auditing and
improving the functional organisational
G
structure of the Company, which is expect-
ed to result in a 15% reduction of adminis-
43.3%
trative and managerial staff.
2014
43.3%
40.7%
42.9%
40.7%
16.0%
40.8%
H
40.8%
I
MES Siberia
100%
MES Ural
90%
80%
MES South
70%
90%
MES North-West
2010
80%
60%
MES Volga
50%
MES Western Siberia
40%
70%
Professional Employees
2013
Professional Employees
Management
The employee turnover rate decreased
2014
by 1.3% to 6.5% compared with 2013. In
2014, 3,152 employees were hired and
4,415 employees were fired by Federal Grid
Company.
Management
Структура персонала по категориям
100%
80%
60%
40%
20%
0%
9.4%
11%
2011
65.6%
2012
H
9%
8%
G
66.3%
10.3%
2013
%
66.3%
10.1%
B
2014
2014
Среднее общее образование
66.7%
2012
2013
30%
MES East
Employees by Category
60%
65.6%
Структура персонала по категориям
50%
40%
Executive Office
30%
22.2%
8%
4%
20%
F
16.3%
16.4%
10%
MES Centre
0%
20.8%
E
2.5%
D
7.7
8%
C
7%
22.1%
20%
22%
16.0%
6%
Структура персонала по возрасту
0%
40.7%
2014
5%
Динамика списочной численности персонала ФСК
43.3%
42.9%
2013
2012
20.8%
22.2%
42.1%
22.1%
2012
2013
2.8%
2.8%
1.8%
1.8%
2014
10%
50%
40%
5.5
0%
7.2
100%
90%
80%
70%
30%
20%
2010
10%
40%
30%
60%
Succession pool
20%
2011
65.6%
0,5%
95.0%
33.1
Уровень обеспеченности ФСК персоналом
Высшее профессиональное образование
0.4
Динамика списочной численности персонала ФСК
0.4
0.4
0,4%
C
Высшее профессиональное образование
2010
98.2%
E
D
70%
0,2%
A compensation system in Federal Grid
Company takes into account the position
categories, performance results of the
Company branches and structural divi-
sions, specifics of regional labour mar-
kets and individual contribution of each
50%
59.3
employee.
95.6%
40%
70%
58.7
59.3
60%
97.0%
60%
Структура персонала по возрасту
50%
0%
2014
58.7
Ученая степень доктора наук
2012
95.0%
2011
To retain a certain income level of key
personnel, the Company provides wage
indexation for employees under “workers”
80,000
category by the value of actual growth
in the consumer price index in accord-
60,000
ance with the provisions of the Electricity
60.9
Industry Tariff Agreement. Over the period
40,000
of 2010-2014, the average wage level has
increased almost by 27% up to RUB64
thousand.
20,000
96.7%
2013
0.1
0.1
10.1%
10.3%
60.9
9.4%
0,1%
0.1
Динамика средней заработной платы работников ФСК
Employee Average Wage/
Salary, RUB
2013
2014
2012
Динамика списочной численности персонала ФСК
64,091
Высшее профессиональное образование
53,078 58,032
62,042
50,512
70%
60%
58.7
59.3
60.9
2012
66.3%
2013
Динамика списочной численности персонала ФСК
2013
50%
2011
2012
2010
0
66.7%
2014
Высшее профессиональное образование
40%
2014
B
Динамика списочной численности персонала ФСК
22 000
25,103
24,603
25,741
24,518
25,103
24,603
24,518
Динамика списочной численности персонала ФСК
2010
2011
2012
2013
26 000
2014
25 000
24 000
I
23 000
22,513
23 000
22,513
26 000
E
MES Volga
21 000
20 000
25,741
26 000
25 000
26 000
24 000
25 000
23 000
24 000
22 000
23 000
21 000
22 000
20 000
21 000
20 000
22,513
22,513
A
B
C
D
F
G
H
25 000
24 000
23 000
I
22 000
21 000
20 000
MES Siberia
MES Ural
MES South
MES North-West
MES Western Siberia
25,103
24,603
MES East
100%
Executive Office
80%
MES Centre
22,513
60%
40%
20%
0%
100%
80%
60%
40%
20%
16%
11%
11%
11%
25,741
9%
H
G
24,518
8%
8%
4%
16.4%
22%
42.1%
16.4%
42.4%
42.1%
2010
0%
2011
2012
2013
2014
Workes
2012
Workes
9.4%
33.1
33.0
33.1
33.1
33.1
65.6%
33.0
2012
2013
16.4%
22.2%
2014
Среднее общее образование
42.1%
60%
0%
2.8%
0%
2012
2012
2013
2014
2013
Среднее общее образование
Working Pensioners
42.4%
7.7
7.2
25 -50
7.7
2012
100%
90%
80%
70%
60%
50%
30%
40%
30%
20%
20%
10%
10%
8%
7%
6%
5%
30%
20%
10%
100%
0%
80%
40%
8%
20%
0%
7%
6%
5%
Среднее профессиональное образование
2012
2013
2014
26 000
25 000
24 000
22 000
21 000
20 000
25,741
25,103
24,603
24,518
2010
2011
2012
2013
2014
100%
80%
60%
40%
20%
0%
Структура персонала по категориям
16.4%
42.1%
42.4%
16.3%
42.9%
40.8%
16.0%
40.7%
43.3%
2012
2013
2014
Workes
Professional Employees
Management
Среднее профессиональное образование
30%
20%
10%
0%
8%
7%
6%
5%
2012
2013
2014
Среднее общее образование
7.7
7.2
5.5
0,4%
0,2%
0%
0,1%
0,5%
0%
Структура персонала по возрасту
Среднее профессиональное образование
10.3%
80%
Среднее профессиональное образование
40%
Структура персонала по категориям
2012
42.4%
2013
100%
Working Pensioners
Высшее профессиональное образование
2012
90%
25 -50
80%
2.5%
50 - Pension Age
2013
Under 25
42.4%
40.8%
2012
Working Pensioners
2013
50 - Pension Age
2014
70%
25 -50
70%
Under 25
60%
2014
9.4%
100%
66.3%
60%
20%
0%
20.8%
16.3%
2.5%
42.9%
0.4
0.4
60%
59.3
50%
60.9
58.7
10.1%
16.3%
42.9%
16.4%
42.1%
66.7%
16.0%
40.7%
Workes
Professional Employees
0.4
Ученая степень кандидата наук
42.4%
Over the last few years, a tendency has
been observed towards a decrease in
Ученая степень кандидата наук
average age of the Company employees.
During the period from 2012 to 2014, the
average age has decreased from 39.6 to
0,4%
39.3 years. The majority of the Company’s
staff (57%) are employees of the age below
0.4
Среднее профессиональное образование
2013
2014
10.1%
0,2%
40 years. Thus, the Company has achieved
Ученая степень кандидата наук
Динамика средней заработной платы работников ФСК
80,000
an optimal balance of young, enthusias-
66.7%
2012
Workes
Management
tic employees and experienced, highly
A
0%
qualified staff members who ensure the
30%
2014
continuity of generations and the transfer
Ученая степень доктора наук
of professional knowledge and skills.
20%
2012
Динамика средней заработной платы работников ФСК
10.3%
40%
Структура персонала по возрасту
30%
20%
43.3%
Employees by Age
0.4
Working Pensioners
53,078 58,032
53,078 58,032
Professional Employees
62,042
66.3%
0,4%
33.1
50,512
65.6%
Management
33.0
60,000
2012
16.0%
2012
62,042
64,091
64,091
80,000
60,000
40,000
22.1%
40.7%
40.8%
22.2%
65.6%
2014
2013
2013
9.4%
1.8%
2.8%
0,4%
0,2%
0,2%
25 -50
33.1
30%
20%
10%
40%
100%
50%
10%
60%
50%
40%
80%
70%
90%
0%
0%
0.4
0.4
0.4
0.4
0%
B
C
20,000
2012
40,000
50,512
2013
2014
2014
0.1
Ученая степень доктора наук
Среднее профессиональное образование
40.8%
50 - Pension Age
Under 25
43.3%
0.1
0,1%
10%
0.1
30%
20%
0
0.1
0%
10%
Ученая степень кандидата наук
2012
2012
22.2%
2010
2014
2.8%
0.4
Среднее общее образование
20,000
2011
0%
0,4%
2013
0.4
0
2012
0.4
2013
2011
0%
20.8%
2013
2.5%
2010
2012
2013
22.1%
2014
2012
2014
Ученая степень доктора наук
2013
1.8%
2013
7.2
Workes
5.5
Professional Employees
30%
2014
0,1%
0,5%
33.1
33.0
Management
0.1
0.1
33.1
10%
0%
2012
2013
2014
2012
2013
70%
2014
0%
60%
2013
2012
10.1%
2014
20.8%
22.2%
66.7%
2.8%
Two types of succession pool have been
created in Federal Grid Company: “tacti-
cal” and a pool for the position of PMES’
director.
Динамика списочной численности персонала ФСК
A tactical succession pool for the pro-
duction and technical facilities of Federal
Высшее профессиональное образование
Grid - MES (backbone electric grids),was
created under five key areas of the Com-
70%
pany’s activities for the positions of heads
and deputy heads of structural units of the
Company branches. In order to develop
the professional competencies of the
succession pool members, a mentorship
programme was launched which required
each member to complete his individual
training plan under the supervision of his
mentor within nine months.
Working Pensioners
50 - Pension Age
58.7
22.1%
2012
Under 25
2013
2014
2.5%
1.8%
25 -50
59.3
50%
40%
30%
20%
22.1%
59.3
60.9
10%
30%
10.3%
20%
10%
66.3%
0%
20.8%
2.5%
58.7
60%
Appointments of succession pool members to superior positions in 2014
50%
1.8%
0%
A
2012
2013
2014
37%
30%
60.9
20%
A succession pool for the position of PMES’
Director was created to minimise HR risks
related to professional level of directors
of PMESs (backbone electric grid enter-
prises).
10%
0%
2012
2013
2014
2013
2014
Professional employees
50 - Pension Age
Management
Under 25
Workers
A
B
C
Professional employees
40%
Динамика средней заработной платы работников ФСК
A
30%
C %
37%
43%
20%
Management
20%
C %
64,091
Workers
20%
43%
80,000
Type of succession pool
60,000
Tactical succession pool for the production and technical facilities of Federal Grid – MES
40,000
Succession pool for the position of PMES’ Director
2013
20,000
53,078 58,032
50,512
62,042
2012
2014
B
10%
0%
B
2014
2014
Динамика средней заработной платы работников ФСК
0.1
0.1
0.1
0,5%
0%
80,000
60,000
40,000
2012
20,000
A
50,512
0
53,078 58,032
Распределение прошедших в 2014 году
обучение работников ФСК по категориям
2012
A
62,042
64,091
2010
2011
2013
2014
Professional employees
Распределение прошедших в 2014 году
обучение работников ФСК по категориям
C
Workers
B
Management
37%
71
20%
43%
C %
Number of members
appointed to superior
positions, persons
Number of
members
in 2014,
persons
A
B
C
Professional employees
Target
positions
Management
412
Workers
92
25
2
Sufficiency
of
succession
pool for
managerial
positions
108%
162%
C %
others
37%
20%
15
43%
8
A
33.1
33.0
33.1
0.4
0.4
0.4
Ученая степень кандидата наук
2012
2013
2014
5.5
20%
10%
0,5%
0%
0%
2012
2013
8%
2014
7%
Динамика средней заработной платы работников ФСК
0%
2012
2013
2014
Среднее общее образование
2013
Ученая степень кандидата наук
2012
2014
6%
5%
7.7
0,2%
0%
70
5.5
2012
2014
Ученая степень доктора наук
2013
Working Pensioners
7.2
25 -50
50 - Pension Age
0,1%
Under 25
2012
2013
2014
Ученая степень доктора наук
0.1
0.1
0.1
33.1
33.0
33.1
53,078 58,032
64,091
62,042
8%
0,4%
0.4
7.7
50,512
2012
2013
2014
Professional employees
Management
0,1%
Workers
37%
0.1
20%
43%
0.1
0.1
Динамика средней заработной платы работников ФСК
0
2013
2014
2010
2011
2012
2013
2014
0.4
7.2
A
0.4
B
C
5.5
Распределение прошедших в 2014 году
обучение работников ФСК по категориям
B
C %
62,042
64,091
B
50,512
2012
53,078 58,032
2013
2014
0,5%
80,000
0%
60,000
40,000
20,000
0
A
B
C
Professional employees
37%
Management
Workers
20%
43%
A
C %
Распределение прошедших в 2014 году
обучение работников ФСК по категориям
2012
2013
2014
2012
2013
2014
7.2
Среднее общее образование
Ученая степень доктора наук
2013
2010
2014
2011
2012
2013
2014
2012
2012
2013
2013
2014
2014
0.1
0.1
0.1
80,000
60,000
40,000
20,000
0
2012
7.7
30%
20%
10%
0%
8%
7%
6%
5%
7%
6%
0,2%
5%
0%
0,1%
0,5%
0%
5.5
Распределение прошедших в 2014 году
обучение работников ФСК по категориям
2010
2011
2012
2013
2014
B
2012
2013
2014
2012
2013
2014
Распределение прошедших в 2014 году
обучение работников ФСК по категориям
Динамика списочной численности персонала ФСК
Высшее профессиональное образование
10.1%
66.7%
98.2%
70%
60%
50%
40%
30%
20%
10%
0%
A
B
C
Professional employees
37%
Management
Workers
20%
43%
A
C %
Распределение прошедших в 2014 году
обучение работников ФСК по категориям
A
B
SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT / HR POLICY Динамика списочной численности персонала ФСК
Уровень обеспеченности ФСК персоналом
25,741
25,103
24,603
24,518
26 000
25 000
24 000
22 000
21 000
20 000
23 000
22,513
2010
2011
2012
2013
2014
Динамика списочной численности персонала ФСК
25,741
MES Siberia
MES Ural
MES South
MES North-West
25,103
MES Volga
24,603
MES Western Siberia
MES East
Executive Office
MES Centre
16%
11%
11%
11%
8%
8%
4%
22%
9%
24,518
A
B
C
D
E
F
G
H
I
26 000
25 000
24 000
22 000
21 000
20 000
23 000
22,513
2010
2011
2012
2013
2014
A
B
C
I
F
%
H
G
E
D
A
B
C
D
E
F
G
H
I
MES Siberia
MES Ural
MES South
95.6%
MES North-West
MES Volga
MES Western Siberia
MES East
Executive Office
MES Centre
16%
11%
11%
11%
9%
8%
8%
4%
22%
95.0%
H
G
98.2%
97.0%
I
A
96.7%
%
B
C
F
E
D
2010
2011
2012
2013
2014
95.6%
95.0%
Уровень обеспеченности ФСК персоналом
98.2%
97.0%
96.7%
2010
2011
2012
2013
2014
100%
80%
60%
40%
20%
0%
Структура персонала по категориям
16.4%
42.1%
42.4%
16.3%
42.9%
40.8%
16.0%
40.7%
43.3%
2012
2013
2014
Workes
Professional Employees
Management
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
100%
80%
60%
40%
20%
0%
Структура персонала по возрасту
10.3%
66.3%
10.1%
66.7%
Структура персонала по категориям
16.4%
42.1%
42.4%
2012
16.3%
42.9%
20.8%
2.5%
40.8%
2013
16.0%
40.7%
43.3%
2014
22.1%
1.8%
2012
Working Pensioners
2013
25 -50
50 - Pension Age
2014
Under 25
Workes
Professional Employees
Management
9.4%
65.6%
22.2%
2.8%
Среднее профессиональное образование
Ученая степень кандидата наук
Динамика списочной численности персонала ФСК
Высшее профессиональное образование
70%
60%
50%
40%
30%
20%
10%
0%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Структура персонала по возрасту
59.3
60.9
58.7
9.4%
65.6%
10.3%
66.3%
2012
22.2%
2.8%
2013
2014
20.8%
2.5%
2012
2013
2014
Working Pensioners
50 - Pension Age
25 -50
Under 25
10.1%
66.7%
22.1%
1.8%
Динамика списочной численности персонала ФСК
Высшее профессиональное образование
58.7
59.3
60.9
70%
60%
50%
40%
30%
20%
10%
0%
2012
2013
2014
33.1
33.0
33.1
0.4
0.4
0.4
Среднее профессиональное образование
Personnel Training and Development
Динамика средней заработной платы работников ФСК
Ученая степень кандидата наук
2013
2014
10%
Ученая степень доктора наук
0%
0.1
0.1
33.1
33.1
33.0
80,000
20%
30%
Having personnel with a high level of
professional qualification is one of the key
factors driving the reliable operation of
UNEG. In this context, issues of devel-
oping a comprehensive and continuous
system of personnel training become a
high priority.
50,512
60,000
40,000
2014
Среднее общее образование
2010
20,000
2013
0
0.4
0.4
0.4
0,4%
64,091
In 2014, 15,440 employees, 62% of total
headcount, were involved in various types
62,042
53,078 58,032
of training, retraining and profession-
0,2%
al development. Training of operating
personnel (12,648 employees) made up
the largest part of all programmes (82%).
Since operating personnel are involved in
operation of hazardous facilities, training
under the Rostechnadzor’s programmes
became one of the focus areas in the
reporting year.
Professional employees
Management
B
A
C
Workers
80,000
20%
43%
Доля работников ФСК ЕЭС, принявших участие в обучающих мероприятиях,
0%
и соотношение затрат на подготовку персонала к фонду заработной платы в 2014 году
60,000
2012
2013
2012
50,512
53,078 58,032
2014
Ученая степень доктора наук
2013
2014
2011
2012
40,000
C %
64,091
62,042
Динамика средней заработной платы работников ФСК
37%
A
Employees trained in 2014
by categories
A
B
C
Professional employees
37%
Management
Workers
20%
43%
30%
20%
10%
0%
8%
7%
6%
5%
2012
2013
2014
Среднее общее образование
7.7
7.2
5.5
0,4%
0,2%
0%
0,1%
0,5%
0%
2012
0.1
0.1
0.1
0.1
20,000
0
2010
2011
2012
2013
2014
B
2012
2013
2014
2012
2013
8%
7%
2014
6%
5%
7.7
7.2
5.5
0,1%
0,5%
0%
2012
2013
2014
2012
2013
2014
Share of Employees Trained in 2014, and Training Costs/Salary
Budget Ratio, %
Распределение прошедших в 2014 году
обучение работников ФСК по категориям
In 2014, within one of the Company’s stra-
tegic activity areas on creating conditions
for import substitution development and
localisation of electrical manufacturing
in the territory of the Russian Federation,
the training was organised for the Com-
pany’s specialists at the production sites
of the largest Russian manufacturers of
power equipment, such as Energomash
(Ekaterinburg) – Uralelectrotyazhmash,
and Tolyattinsky Transformator, Besides,
the joint corporate training programmes
were successfully implemented with the
equipment suppliers Ekra, Energoinno-
vations, Uralenergoservice, Prosoft-sys-
tems, RT Soft, Siemens, Alstom Grid, GE,
ABB.
plexes. They include training simulators,
laboratories with relay protection and
emergency automatic equipment, and
electric grid training areas equipped
Распределение прошедших в 2014 году
with advanced technical training aids
обучение работников ФСК по категориям
and prototype equipment. The simulation
classes are made as scaled-down models
of dispatch control centres and allow us to
organise emergency response exercises
for operators of Grid Control Centres of
the Company branches.
specialists. In 2014, 8,755 employees
participated in the training events held by
the personnel training centre within this
project.
C %
A
Federal Grid Company continues to
extend the scope of cooperation with the
leading industry-specific higher edu-
cation institutions in all regions where
the Company operates. The cooperation
programme aims to address issues of
improving education in the power industry
in order to bring knowledge and skills of
graduates closer to the current produc-
tion requirements of the Company. Our
employees were actively involved in the
institutions’ educational process with
regard to improving the programmes/
courses for electric power engineering
and developing topics for early essays
and graduate theses. Practical training
for students was ogranised at the Federal
Grid’s facilities and personnel training
centres, and the projects Applied Bach-
elor’s Programme and School for Young
Engineers were implemented.
B
74.0
57.0
56.0
0.7
0.3
43.0
0.4
22.0
Corporate
Headquarters
MES
Volga
MES
East
0.5
36.0
MES
Western
Siberia
67.0
68.0
69.0
73.0
58.0
0.8
46.0
0.6
0.5
0.6
0.6
24.0
31.0
27.0
21.0
28.0
MES
North-West
MES
Siberia
MES
Ural
MES
Centre
MES
South
Share of employees trained, %
Including at the Company’s training centres, % (prior license receipt)
Training costs/salary budget ratio, %
In 2014, 383 employees of Federal Grid
Company were trained under retraining
and professional development pro-
grammes at the premises of higher-edu-
cation institutions. Training was provided
within the cooperation agreements with
such higher-education institutions as
National Research University Moscow
Power Engineering Institute (MPEI),
St.Petersburg Polytechnic University,
Samara State Technical University, Ural
Federal University, Far East State Trans-
port University, Surgut State University,
and others. Under the federal programme
“Training and Retraining of Executive Tal-
ent Pool”, one of the Company’s mid-level
executives received training at Lomon-
osov Moscow State University. The team
of 10 young specialists from the Federal
Grid’s succession pool took part in the 3rd
International Forum “Energy Saving and
Energy Efficiency” ENES 2014.
In 2014, active simulator training was
arranged at Personnel Training Centres,
287 exercises were organised. 6,700
employees were trained in the Compa-
ny’s personnel training centres under
the various professional development
programmes that take into considera-
tion knowledge, skills and expertise of
trainees.
In August 2014, the Federal Grid’s
Personnel Training Centres moved to a
new professional level – they received
a license for educational activity. The
license increases the Company’s oppor-
tunities and enables not only to train our
employees, but also to implement serious
education projects for outside clients.
In order to build a knowledge manage-
ment system, and taking into account
the necessity to train a great number of
employees from the Company branches to
work with new production, technological
and management standards, an educa-
tional project “Day of Knowledge” has
been implemented in Federal Grid Com-
pany since 2011. Day of Knowledge is held
in the form of video conference, that is the
most accessible way to get knowledge for
all employees regardless of their location
and facilitates the adaptation of young
In 2014, a special attention was paid to
training technical specialists from the
succession pool of Federal Grid Company.
Practical training at the manufacturers’
premises, including foreign manufactur-
ers, became the most significant event.
A trip to Prague was organised under the
project on creating a single communica-
tion network for electric power industry,
where the Company employees were
trained on the Marconi equipment.
Since the opening of training centres in
the Company branches – MES in 2011, an
internal training system has been formed
in Federal Grid. It allows us to manage
the quality of personnel training accord-
ing to the Company’s requirements, to
update the existing professional develop-
ment programmes and develop new ones,
to optimise costs and time within the
training process.
Today, the licensed Personnel Training
Centres of Federal Grid Company appear
to be comprehensive educational com-
72
73
SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT / HR POLICY Non-Governmental Pension Programme
SOCIAL POLICY
Socially Responsible Approach
Social Programmes for Employees
A non-governmental pension programme
for the Company employees was ap-
proved in 2004. Since the programme
launch, a non-governmental pension
from Federal Grid funds has been grant-
ed to 4,295 employees.
Implementing this programme has a
great motivational effect and allows us
to provide our employees with decent
non-governmental pensions.
In 2014, RUB327 million was allocated
for the non-governmental pension fund.
Awards Policy
Employees are entitled to
awards if they have rendered
great service to the State, to
the fuel and power industry
or to the Company, and if they
demonstrate high production
and management efficiency,
or achieve great results in the
operation, construction and
re-construction of electric grid
facilities.
In 2014, awards were given to
4,981 employees of Federal Grid
Company, its subsidiaries and
associates, and contractors,
including:
75
190
6
4,445
employees
received State
awards of the
Russian Fed-
eration and the
Government of the
Russian Federation
for their services to
the State, includ-
ing their major
contribution to the
construction and
ensuring reliable
operation of the
Olympic electric
grid facilities in
Sochi
employees re-
ceived industry
awards of the
Russian Ministry of
Energy
employees were
given the Honou-
rary Certificate of
the CIS Electric
Power Council
employees were
given corporate
awards of JSC
Russian Grids
and Federal Grid
Company
Samarskoye
PMES
MES
Ural
was awarded the
title “Best Enter-
prise of Federal
Grid Company –
PMES” in 2014
was awarded the
title “Best Branch
of Federal Grid
Company – MES”
in 2014
A benefits package in Federal Grid Company
is based on a principle of social partnership
between the employer and employees. It is
a tool for employee motivation and social
security and includes voluntary medical insur-
ance, accident insurance, non-governmental
pension, financial assistance to employees in
need (connected with marriages, childbirths,
etc), wage/salary advance.
The Company has a Corporate Housing
Programme. To provide qualified personnel
for power facilities that are in remote areas or
under construction, a corporate housing stock
of Federal Grid Company has been created,
numbering 647 living accommodations. In
2014, 193 company-owned apartments were
commissioned and provided for rent to the
Company employees. Our corporate housing
stock covers such regions as the Khanty-Man-
si Autonomous Okrug - Yugra, Yamalo-Nenets
Autonomous Okrug, the Tyumen and Amur
Regions, Primorsky Krai, the Khabarovsk
and Krasnoyarsk Regions, Zabaykalsky Krai,
Chechen Republic, Stavropol Krai, Krasnodar
Krai, the Moscow, Saratov and Leningrad
Regions.
In addition, Federal Grid provides corporate
assistance according to its commitments
assumed in 2011-2013 under the programme
for improving employees’ housing conditions.
In 2014, corporate assistance in the form of
interest-free loans and compensations was
rendered to 788 employees, including 328
young specialists.
To attract high quality specialists and the
youth, whose activities involve moving to
another place, the Company compensates the
employees’ rental costs. In 2014, we helped
526 employees, including 355 young special-
ists, with housing rent.
In order to execute the assignment of the
RF President, in 2014 we implemented an
initiative on organising health-improving rest
of employees of the Company branches in the
Republic of Crimea. 314 employees and their
family members rested in health resorts and
children’s health camps of the Republic of
Crimea. Federal Grid partially compensat-
ed expenses for sanatorium and preventive
treatment.
Strengthening Corporate Culture
The Company’s corporate culture brings
employees together as a united team,
providing motivation for fruitful work, en-
couraging their initiatives and facilitating
communications. We are developing the
corporate culture with the support of the
key employee groups: young specialists,
family labour dynasties, veterans. We
have specific corporate programmes and
events for each of the above groups.
The Code of Corporate Ethics serves
as a core document that establishes a
framework for our corporate culture.
The Code is publicly available, and each
employee is aware of its content.
Since 2010, the Company has imple-
mented the Dynasty Programme aimed
at fostering labour traditions and
ensuring generational continuity. In 2014,
a traditional Doors Open Day was organ-
ised within this Programme in all regions
where the Company operates. The event
included guided tours to the Company’s
most important substations for more than
1400 children of the Company employees.
Children of Federal Grid’s employees
took an active part in a children’s drawing
contest organised by JSC Russian Grids:
“Rosseti: Children are Drawing” devoted to
the Company Day. On the eve of Power En-
gineers’ Day, a children’s drawing contest
“Lightful Profession” was organised with
participation of more than 450 employees’
children from four to twelve years old.
Federal Grid Company actively engages
with and provides assistance to the Council
of Electric Power Industry Veterans. In
2014, we organised celebrations for more
than 300 veterans dedicated to Victory Day
and the Power Engineers’ Day.
To improve professional qualification, pro-
mote creativity and innovative thinking and
develop technological culture, since 2013
young specialists of Federal Grid Company
have participated in the International fo-
rum of young power engineers “Forsazh”.
In 2014, the Federal Grid’s team included
representatives from Federal Grid branch-
es and the Corporate Headquarters.
A healthy lifestyle, sport and physical ac-
tivities are promoted among the Company
employees. Federal Grid offers them par-
tial reimbursement of gym membership
and organises trainings for those who want
to do sport.
74
75
SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT / HR POLICY The Company’s volleyball and indoor
soccer teams participate regularly in
competitions between the companies
of the Fuel and Energy Complex. Since
2011, Federal Grid, together with JSC
R&D Centre of FGC UES, has organ-
ised a chess tournament in memory of
Mikhail Botvinnik.
Youth Policy
To develop a talent pool for the industry,
Federal Grid is implementing initiatives to
provide young employees with the oppor-
tunities for professional growth, and to
attract talented and active youth into the
industry.
The Company’s team of 10 young special-
ists from our succession pool took part in
the III International Forum “Energy Saving
and Energy Efficiency” ENES 2014. Em-
ployees of MES branches were engaged
in the Youth Round Table of JSC Russian
Grids within the XVIII St Petersburg Eco-
nomic Forum.
In 2014, Federal Grid Company continued
to develop mutually beneficial relation-
ships with industry-specific higher-ed-
ucation institutions and specialised
secondary schools. Today, the Company
cooperates on various aspects with 51
Russian higher-education institutions and
13 specialised secondary schools. The
main area of cooperation with educa-
tional institutions is still the organising
practical and pre-degree training for
students. Over the course of 2014, more
than 640 students got practical skills at
the Company’s facilities; temporary jobs
with time wage were created for 200 of
them. In 2014, 50 students were involved
in the Company’s target scholarship pro-
gramme. Upon graduation, 41 students,
who had been trained at the Company’s
facilities, were hired by Federal Grid
Company. Annually, we hire 400 gradu-
ates from higher-education institutions.
In April – May 2014, a traditional annual
Day of Federal Grid Company was organ-
ised in 34 leading higher-education institu-
tions and 3 specialised secondary schools
involving more than 2,100 students.
In the reporting year, 28 senior power
engineering students received additional
theoretical and practical knowledge in the
“School of Young Engineer” organised at
the premises of the Personnel Training
Centre “Bely Rast” of MES Centre.
In autumn 2014, the Chairman of the
Federal Grid’s Management Board Andrey
Murov held a meeting with students of
MPEI. They discussed the development
prospects of the Russian grid complex
and the related issues of personnel
training.
In summer 2014, there was a fifth season
of Federal Grid’s student construction
teamwork. The MPEI sent 10 student
teams with the total number of 121
students to work on 10 projects under
construction.
Charity
Traditionally, Federal Grid Company provides charity support within the following areas: :
• Support of the activities in the educa-
tional, scientific and cultural fields,
public awareness campaigns
• Support of the activities in the field of
• Social rehabilitation of orphaned
children and children without parental
care, neglected children and children
under conditions of hardship
physical culture and sport
• Support of the activities in the field of
• Protection and adequate maintenance
of buildings, facilities and territories of
historic, religious, cultural or environ-
mental importance
health care, healthy lifestyle promotion,
improvement of moral and psychologi-
cal condition of citizens
• Assistance for those who have suffered
from natural disasters, environmental
or industrial disasters or other ca-
tastrophes
• Support of individuals who need a
surgery to protect the life and health
(including for prevention of disability
and long-lasting rehabilitation), and
those who need treatment of serious
disease
HE ALTH AND SAFET Y
Creating Safe Working Conditions
Labour Protection
Our health and safety measures are aimed
at eliminating workplace injuries and
occupational diseases, promoting safe
conduct and developing accident-pre-
vention skills among employees, as well
as improving working conditions.By the
end of 2014, the number of accidents was
reduced to four, which is 33% less than in
the previous year. The number of injures
was reduced from 12 to 4 people. We aim
to prevent fatal accidents, though there
was one fatal accident in 2014.
Injury and Fatality Rates at the Company’s Facilities
Динамика уровня общего и смертельного травматизма на объектах Компании
25
20
15
10
5
0
1.153
1.040
0.880
0.700
0.654
0.542
0.327
0.512
0.231
0.102
0.181
0.511
0.523
0.426
0.302
0.254
0.114
0.149
0.190
0.187
0.160
0.113
0.145
0.071
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
total number of injured persons
including fatalities
0.148
0.037
2014
Since 2002, no cases of occupational
diseases have been registered in Feder-
al Grid Company. Health screening and
health checks are provided to monitor
employee health. Since 2012, a compre-
hensive programme has been implement-
ed to improve working conditions at the
facilities of MES branches.
Динамика общих затрат ФСК на улучшение
санитарно-бытовых условий труда, млн руб.
Total Costs for
Improving Sanitary and
Living Conditions for
Employees, RUB million
163.7
140.2
119.3
Динамика количества пожаров на объектах ФСК в 2010-2014 гг.
Динамика затрат на охрану окружающей среды, млн руб.
12
243
Burnings
Fires
1
1
91
107
На охрану земельных ресурсов
41.6
35.6
44.5
32.8
21.8
На охрану водных объектов
37.2
19.7
20.3
20.6
16.5
40
30
20
10
0
2012
2013
2014
2010
2011
2012
2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
3
116
2
58
2013
76
На охрану атмосферного воздуха
77
5.2
4.3
4.8
1.6
2010
2011
2012
2013
2014
Внедрение СЭМ
3,8
3,9
4,2
Иные расходы
3,2
3.0
1.6
2011
2012
2013
2014
2013
2014
11.3
3
2
1
0
Динамика объемов выбросов в атмосферный
воздух загрязняющих веществ, т
Динамика объемов водопотребления, млн куб. м
Динамика объемов образования отходов, тыс. т
184.0
162.7
114.7
90.3
75.5
1.39
1.32
1.28
1.24
1.16
12.9
13.3
15.7
14.3
9.9
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
Динамика объемов переданных отходов, тыс. т
Структура вопросов, рассмотренных Советом директоров в 2014 году
16
12
8
4
0
4.1
8.8
6.4
8.7
6.4
8.6
5.9
8.2
3.8
6.2
2010
2011
2012
2013
2014
Передано сторонним организациям для захоронения
Передано сторонним организациям для обезвреживания и использования
A
B
C
D
E
F
G
H
Актуализация долгосрочной стратегии ФСК
Бизнес-планирование
Совершенствование системы мотивации работников ФСК
12 / 11%
Корпоративная социальная ответственность и устойчивое развитие
Инвестиционная политика
Совершенствование внутренних документов ФСК
Определения позиции представителей ФСК в органах управления ДЗО
9 / 8%
Иные вопросы компетенции Совета директоров
65 / 60%
H
4 / 4%
7 / 7%
2 / 2%
7 / 6%
2 / 2%
A
B
%
C
G
D
E
F
SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT / SOCIAL POLICY
To improve production safety, we take precautions to safeguard
our employees before conducting any kind of repair work, assess
risks to employee safety and develop corrective actions, and
conduct regular safety checks on work carried out by our repair
teams. Furthermore, during the reporting year we implemented
the following health and safety initiatives:
ENVIRONMENT
Environmental Protection
• A scheduled assessment of working
conditions was performed at 5,935
workplaces
Our Company’s responsible approach to environmental protection aims to increase environmental safety level and to ensure the
reliable and environmentally safe transmission and distribution of power.
• A behavior-based safety programme
was implemented aimed at changing
attitude of employees to conscious
observance of safety practices, which
resulted in improving employee safety
behaviour
• Efficient operation of 50 permanent
and 17 mobile health and safety offices
was organised to promote safe working
conditions and to train personnel to use
safe practices, taking account of up-to-
date requirements
• We use mobile video recorders aimed at
recording the most dangerous actions
of employees working on electrical
installations with further corrective
action
• Labour Protection Days and Road Traf-
fic Safety Months were organised
• Stress-release rooms for substation
personnel are in operation
• A review competition was conducted
for the best organisation of work in the
area of health and safety among the
Company’s MES and PMES branches
Industrial Safety
In 2014, Federal Grid Company operated
278 hazardous industrial facilities (HIFs)
of III and IV hazard classes. In the re-
porting year, we were licensed to operate
explosive and flammable and chemically
hazardous industrial facilities of I, II and
III hazard classes.
The Company developed an accident
management plan for hazardous industri-
al facilities, and received approval from
Rostechnadzor for its Regulations on
investigation, record and analysis of acci-
dents at hazardous industrial facilities.
During 2005-2014, no accidents and
incidents were registered at the Compa-
ny’s HIFs. We meet all industrial safety
requirements in accordance with the
procedure established by the legislation.
Furthermore, with the scope of recon-
struction and renovation programmes,
we continue to implement innovative
and energy efficient technologies and
to improve technological processes,
which help to reduce harmful environ-
mental impact.”
What are the main components
of the formula for environmental
safety of Federal Grid’s opera-
tions?
policy of Federal Grid Company for
the period from 2015 to 2019 was
approved by the Chairman of the Man-
agement Board.
“Our Company is pursuing a com-
prehensive approach to addressing
issues of ensuring the environmental
safety and rational use of natural
resources. It helps us to be successful
in achieving our environmental goals,
to minimise environmental risks, and
to improve corporate social responsi-
bility.
Our approach is underpinned by
implementation of the environmental
policy. In March 2015, a Programme
for implementing the environmental
Implementing the environmental
management systems at our facilities
is an important component of our
environmental policy. In the reporting
year, the compliance audits of such
systems at the Company Head-
quarters and four branches were
successfully performed and resulted
in the issuance of ISO 14001:2004
compliance certificates.
Nikolay Shvets
Deputy Chairman of the
Management Board of
Federal Grid Company
Fire Safety
During 2014, three fires occurred at the
Company’s substations, two of which owing
to the fault in high-voltage bushings of the
autotransformers, and one due to the fault
in cable sleeve locating at the Company’s
substation but belonging to another owner.
No fires due to violation of fire safety rules
occurred at Federal Grid Company.
Динамика общих затрат ФСК на улучшение
санитарно-бытовых условий труда, млн руб.
Динамика количества пожаров на объектах ФСК в 2010-2014 гг.
Fires and Burning* at the Company’s facilities
163.7
140.2
119.3
12
243
Burnings
Fires
1
1
91
107
2012
2013
2014
2010
2011
2012
3
116
2014
2
58
2013
*Burning means an uncontrolled combustion beyond a special point and entailing no losses
Динамика затрат на охрану окружающей среды, млн руб.
The improvement of fire safety over the
last few years has been the result from
the implementation of the Programme
for enhancing and upgrading fire safety at
the Company’s facilities for the period of
2011–2017 for a total amount of RUB1.06
billion. As of the end of 2014, RUB301.5
million was spent within the Programme.
На охрану земельных ресурсов
41.6
35.6
44.5
32.8
21.8
Matters of environmental management
are considered at all levels of govern-
ance. In 2014, the Board of Directors
approved the revised version of the
Environmental Policy and decided to
draft the Programme for implementing
the environmental policy of Federal Grid
Company for the period 2015-2019. The
Environmental Policy includes technical
and organisational measures intended
to mitigate the negative environmental
impact of the Company’s operations.
40
На охрану водных объектов
30
20.3
20
19.7
The principles and tools of environmen-
tal activities of Federal Grid, mid- and
long-term milestones are defined in the
Concept of Environmental Development of
the Electric Grid Complex.
10
16.5
0
2010
2011
2012
2013
2014
2010
2011
2012
To ensure a high level of environmental
management, we are committed to embed
voluntary international environmental
standards in our practices. Since 2011,
the Company Headquarters and branches
have been working on the systematic im-
plementation and certification of the Envi-
ronmental Management System (EMS) for
compliance with the requirements of the
international standard ISO 14001:2004.
In 2014, the EMS was implemented in
the MES East branch. Auditors from the
independent international certification
company Bureau Veritas confirmed its
efficiency, effectiveness and suitability
for continuous improvement. During
37.2
the reporting period, a compliance
audit of the Environmental Management
Systems of the Corporate Headquar-
ters and the branches MES South, MES
North-West and MES Centre was also
performed, and their certification status
was confirmed.
Within the cooperation with the World
Wide Fund for Nature (WWF), at the last
Saturday of March 2014, our Company
took part in a worldwide event Earth
Hour, by turning off power for one hour at
more than 207 facilities.
20.6
2014
2013
The total amount of the Company’s
environmental costs and investments in
2014 was RUB225.8 million, of which RUB127
million for capital expenditures and RUB98.8
million for current environmental costs.
На охрану атмосферного воздуха
5.2
4.3
4.8
1.6
2010
2011
2012
2013
2014
Внедрение СЭМ
3,8
3,9
4,2
Иные расходы
3,2
3.0
1.6
2011
2012
2013
2014
2013
2014
11.3
3
2
1
0
Динамика объемов выбросов в атмосферный
78
воздух загрязняющих веществ, т
Динамика объемов водопотребления, млн куб. м
Динамика объемов образования отходов, тыс. т
79
184.0
162.7
114.7
90.3
75.5
1.39
1.32
1.28
1.24
1.16
12.9
13.3
15.7
14.3
9.9
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
Динамика объемов переданных отходов, тыс. т
Структура вопросов, рассмотренных Советом директоров в 2014 году
16
12
8
4
0
4.1
8.8
6.4
8.7
6.4
8.6
5.9
8.2
3.8
6.2
2010
2011
2012
2013
2014
Передано сторонним организациям для захоронения
Передано сторонним организациям для обезвреживания и использования
A
B
C
D
E
F
G
H
Актуализация долгосрочной стратегии ФСК
Бизнес-планирование
Совершенствование системы мотивации работников ФСК
12 / 11%
Корпоративная социальная ответственность и устойчивое развитие
Инвестиционная политика
Совершенствование внутренних документов ФСК
Определения позиции представителей ФСК в органах управления ДЗО
9 / 8%
Иные вопросы компетенции Совета директоров
65 / 60%
H
4 / 4%
7 / 7%
2 / 2%
7 / 6%
2 / 2%
A
B
%
C
G
D
E
F
SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT / HEALTH AND SAFETY
Динамика объемов переданных отходов, тыс. т
Динамика объемов переданных отходов, тыс. т
Water Consumption in
2014 was reduced by
9.6%
4,1
6,4
Decrease
in volume of waste
disposed in landfills,
compared to 2013, was by
6,4
4.8%
5,9
Динамика затрат на охрану окружающей среды, млн руб.
Environmental Costs, RUB million
41.6
35.6
44.5
37.2
32.8
3,8
3,8
Waste Transferred. thousand tonnes
8,8
8,7
4.1
8.8
8,6
4.4
8,2
6,2
8.7
3.8
6.2
6,2
4,1
8,8
Above-
limit payments
for negative environmental
impact were reduced by
6,4
6,4
5,9
7.8%
8,7
6.4
8.6
8,6
5.9
8,2
8.2
2010
2010
2011
2011
2012
2013
2010
2012
2014
2011
2012
2013
2013
2014
2014
Transferred to outside organisations for disposal
21.8
20.3
19.7
20.6
16.5
5.2
2010
3.8
1.6
2011
4.3
3.9
4.8
3.2 3.0
11.3
4.2
1.6
2012
2013
2014
Transferred to outside organisations for disposal
Transferred to outside organisations for recycling or reuse
Transferred to outside organisations for recycling or reuse
Water Consumption,
million m3
Waste Generation,
thousand tonnes
Air Emissions,
tonnes
1.39
1.32
1.28
1.24
9.9
1.16
12.9
13.3
15.7 14.3
114.7
90.3
75.5
184.0
162.7
For protection of land resources
For protection of water bodies
For air protection
For EMS implementation
Other costs
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
Total volume of air emissions has in-
creased annually owing to the extended
inventory of new sources of emissions
(SF6 insulated equipments, welding sta-
tions, garages, workshops, etc.).
The key factor for waste generation is
the commissioning of new facilities,
as well as various maintenance and
repair activities at the Federal Grid’s
facilities.
Since 2012, an annual decrease in water
consumption has been observed due to
the reduction of water loss resulted from
the measures taken for the maintenance
and repair of water supply facilities in the
Company branches – MESs and PMESs.
There is an annual increase in volume
of waste transferred for further dis-
posal in landfills, which indicates the
reduction of negative environmental
impact.
The Company pays a special attention
to utilisation of equipment containing
trichlorobiphenyl. In the reporting year,
Federal Grid handed over 4,134 static
capacitor banks containing trichloro-
biphenyl to specialised institutions for
recycling. Reconstruction and re-equip-
ping of the Company’s facilities involve a
mandatory replacement of such equip-
ment. By now, a quarter of the equip-
ment containing trichlorobiphenyl has
been removed and utilised.
Priorities for 2015
• Approve the Programme for
implementing the environmental
policy for 2015-2019
Siberia, get certification of the Company
and receive ISO 14001:2004compliance
certificate
• Improve environmental control and
• Develop corporate standards for
reporting
• Implement the Environmental
Management System in MES Siberia,
MES Ural, MES Volga, MES Western
environmental safety at all life cycle stages
of electric grid facilities
80
81
SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT / ENVIRONMENT Corporate governance
Effective governance system and qualified
leadership team play a key role in
determining and delivering Federal Grid
Company’s strategy, thus providing a sound
framework for successful achievement of
the Company’s strategic objectives
GOVERNANCE SYSTEM
CORPOR ATE GOVERNANCE PRINCIPLES
Commitment to Best Practices
Ensuring the effectiveness and reliability
of the Company’s corporate governance
system, we strictly comply with the
principles of the Federal Grid’s Corporate
Governance Code and are guided by the
rules of positive engagement between
shareholders, the Board and the Com-
pany’s executive bodies in improving the
Federal Grid’s corporate governance
system and practices.
Corporate governance principles of Federal Grid Company
S
N
I B I L I TY +
O
P
S
E
R
+
M
S
I
L
A
N
O
I
S
S
E
F
PRO
NNE+
E
F
F
E
C
T
I
V
E
N
E
S
S
+
O
P
E
TRANSPARENCY
ensuring timely and
accurate disclosure of all
material information on the
Company’s operations, and
free access to the informa-
tion for all stakeholders
ACCOUNTABILITY
the Board of Directors is
accountable to all share-
holders in accordance with
the applicable legislation,
and the Company executive
bodies are accountable
to the General Meeting
of Shareholders and the
Board of Directors
FAIRNESS
protecting shareholder
rights and treating all
shareholders equally
RESPONSIBILITY
recognising the legal rights
of all stakeholders for the
purpose of the Company
growth and financial sta-
bility
Reliability
=
Governance
Infrastructure
Technology
+
+
+
Cooperation
Strategy
Board of Directors’ Statement of
Compliance with Corporate Governance
Principles
Federal Grid Company follows advanced
corporate governance standards, grad-
ually integrating new requirements and
recommendations into its governance
system and constantly improving mecha-
nisms and procedures for its implemen-
tations.
On 21 March 2014, a significant event
happened in the Russian system of corpo-
rate governance: the Board of Directors
of the Bank of Russia approved the new
Corporate Governance Code1. In accord-
ance with the assignments of the Russian
Government2, Federal Grid Company has
been included in the list of state-owned
companies in which principles and provi-
sions of the new Code should be imple-
mented as a matter of priority.
As a first step, in the reporting year
the Company conducted a review of the
compliance of its corporate governance
system with the provisions of the new
Code. The review was conducted using,
among other things, the guidance materi-
als available on the website of Rosimus-
chestvo and aimed at evaluating corpo-
rate governance quality in state-owned
companies.
Following the review, we concluded that
Federal Grid Company complies with the
majority of principles set by the Code.
1 Letter of the Bank of Russia “On the Corporate Governance Code” No. 06-52/2463 dated 10 April 2014.
2 Assignments No. DM-P36-46pr dated 28 May 2014 and No. ISH-P13-5859 dated 31 July 2014
83
СтратегияТехнологииУправлениеПерсоналСтратегияТехнологииУправлениеПерсонал
To put new recommendations of the Code
into the Company’s practice, we have
developed an action plan1 that covers all
aspects of the Federal Grid’s corporate
governance system (model) and practices:
• Updating the Articles of Association to
take account both of certain recommen-
dations of the Corporate Governance
Code, and the last amendments to the
Civil Code
• Updating the Regulations on the Gen-
eral Meeting of Shareholders, Board of
Directors and its committees
• Adopting new version of the Corpo-
• Improving the internal control and risk
rate Governance Code of Federal Grid
Company
management systems
• Improving the remuneration policy ap-
plied to members of the governing and
control bodies
• Establishing position of Corporate
Secretary
• Expanding the Audit Committee’s role
and developing internal audit function
• Refining the Federal Grid’s information
policy, including with the account of
new requirements of the Bank of Russia
to securities issuers.
As a result, the Company has been
committed to comply with the majority of
provisions of the Corporate Governance
Code, and started to implement new
standards in 2014.
Corporate Governance Rating
Since 2012, an independent consultant –
the Russian Institute of Directors (RID) -
has been monitoring the corporate govern-
ance practice of Federal Grid Company and
assigns a National Corporate Governance
Rating Score.
The current rating score proves that the
Company complies with Russian corpo-
rate legislation, follows the majority of
recommendations of the Russian Code of
Corporate Conduct1 and a number of best
international practices and its owners have
a low risk of experiencing losses related to
the quality of corporate governance.
In 2015, a re-evaluation of the Compa-
ny’s corporate governance practice will
be performed under the updated rating
methodology, which takes into account the
requirements of the new Listing Rules and
recommendations of the Russian Corpo-
rate Governance Code.
In February
2014, Federal Grid
Company’s National
Corporate Governance
Rating was confirmed
at a level
7+
“Well-Developed
Corporate Governance
Practice”
What are the Company’s
priorities in the area of
corporate governance following
the adoption of the new
Corporate Governance Code in
2014?
“In 2014, we conducted a review of
the compliance of our corporate
governance standards to the
provisions of the Russian Corporate
Governance Code.
Following the review, we have
developed an action plan – ‘road
map’, which provides for the gradual
integration of new requirements and
recommendations into our corporate
governance system, and takes into
account the recent trends in the
regulation of corporate relations.
All these measures will allow us
to ensure, among other things,
compliance of our corporate
governance system with the
requirements of the new Listing Rules
of the Moscow Stock Exchange in
order to maintain the Federal Grid’s
shares in the Level I quotation list.”
Corporate Governance Scheme
Shareholders’ Agreement*
A
B
C
Rosimuschestvo
0.59%
JSC Russian Grids
80.13%
Minority
shareholders
19.28%
t
e
e
C
ral M
e
n
e
G
B
i n g of Sh
a
r
e
А
%
%
h
o
l
d
e
r
s
Election
B
Reports
xtern al I n d ependen
t
A
E
u
d
i
t
o
r
Election
Election
Reports and
recommenda-
tions
Election
of Chairman
Reports
Maria Tikhonova
Deputy Chairman, member
of the Management Board
of Federal Grid Company
Au d it C ommissio
n
d
Bo a r
Reports
o f Directo
r
s
Election
C ommitte
e
s
d
Bo a r
Audit Committee
HR and Remuneration
Committee
Strategy Committee
Investment Committee
• Timely, accurate and fair disclosures,
• Effective risk management
including in the area of financial
reporting
• Corporate culture and ethics
The main elements of the Federal Grid’s
corporate governance system (model) and
practice are as follows:
• Mechanisms to ensure and protect
shareholder rights
• Governance and control structure, en-
suring the effective interaction between
the governing and control bodies and
clear division of their responsibilities
Election of members
of the Management Board
and control
Reports and
recommendations
Reports
Reports
e m ent Board
M
a
n
a
g
e
m
e
n
t Board
e Man a g
h
t
f
o
n
a
m
r
i
a
h
C
1 The action plan was approved by the RF Government and the Federal Grid’s Board of Directors on 12 March 2015 (Minutes No. 255 dated 16 March 2015)
* Shareholders’ Agreement Pursuant to the Decree of the RF President No. 1567 dated 22 November 2012, an agreement was signed by the Federal Grid’s
shareholders – the Federal Agency of State Property Management (Rosimuschestvo) and JSC Russian Grids – regarding the managing and voting in Federal Grid
Company. By its legal nature, the document signed is a shareholders’ agreement, which is provided for by the Article 32.1 of the Federal Law “On Joint Stock
Companies” and regulates issues of the Company’s shareholders’ interaction regarding the exercise of rights attached to shares. In particular, in order to retain the
State control over the operations of the strategic Company, the Federal Grid’s shareholder JSC Russian Grids is committed to vote as instructed by Rosimuschestvo
on matters reserved to the General Meetings of Shareholders and certain matters reserved to the Board of Directors.
1 The score has been assigned under the methodology in force at the time, which did not cover the recommendations of the new Russian Corporate Governance Code
and the amendments to the Listing Rules.
84
85
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM
GOVERNING AND CONTROL BODIES
General Meeting of Shareholders
Composition of the Board of Directors 1
elected by the General Meeting of Shareholders on 27 June 2014 (as of 31 December 2014)
the shareholders to ask questions about
the matters on the agenda, and the voting
results are announced at the Meeting.
Annual General Meeting of Shareholders
• To elect members of the Board
of Directors and the Audit
Commission
• To approve the external auditor
for 2015
• To approve a related party
transaction involving Directors’
and Officers’ liability insurance
• To pay dividends for the first
quarter of 2014
The 2014 Annual General
Meeting of Shareholders of
Federal Grid Company was held
on 27 June 2013. In accordance
with the AGM agenda, the
shareholders adopted the
following resolutions:
• To approve the Company’s
annual report and annual
financial statements for 2013
• To pay no dividends on
common shares for 2013,
and no remuneration to the
Board members, since the
Company incurred a loss in the
accounting period
The General Meeting of Shareholders
(GMS) is the supreme governing body of
Federal Grid Company. Its competence
is defined by the Federal Law “On Joint
Stock Companies” and the Company’s Ar-
ticles of Association, and includes, among
other things, such serious matters as
payment of dividends, approval of annual
reports and annual financial statements,
election of an external auditor, reorgan-
isation and liquidation of the Company,
election of members of the Board of
Directors and the Audit Commission and
termination of their powers, approval
of large transactions and related party
transactions.
Federal Grid Company strives to create
most favourable conditions for its share-
holders enabling them to participate in
the GMS, and complies with the majority
of recommendations of the Russian Cor-
porate Governance Code, related to the
preparation for and holding of the General
Meeting of Shareholders.
The Company ensures that its sharehold-
ers can timely and freely receive materi-
als on all issues of the GMS agenda, and
makes them available on its corporate
website. The procedures for holding
the GMS set by the Company’s internal
documents, provides an opportunity for
BOARD OF DIRECTORS
Professionalism
and Responsibility
The Board of Directors is responsible
for the general oversight of the Company
and its business, and plays a key role in
the Federal Grid’s corporate governance
system.
The main functions of the Board of Direc-
tors are as follows:
• To shape the Company’s strategy and
monitor its implementation
• To ensure the exercise and protection
of rights and legal interests of Feder-
al Grid’s shareholders; to protect the
Company’s assets
• To maintain sound internal control and
risk management system
• To monitor activities of the executive
bodies, to undertake regular perfor-
mance evaluation of senior managers
and to establish and maintain effective
incentive schemes and development
programmes for them
• To ensure timely disclosure of full and
fair information on the Company’s
operation
• To establish a system for managing
subsidiaries and associates
In accordance with Clause 16.1 of Article 16
of the Federal Grid’s Articles of Associa-
tion, the Board shall include 11 members.
This number of Board members best fits
the Company’s goals and objectives, and
allows us to ensure a required balance of
knowledge, professional skills and experi-
ence on the Board.
The Company also aims to maintain a
balance on the Board with respect to all
shareholders’ interests: the Board of
Directors includes representatives of
minority shareholders.
Oleg
Budargin
Vyacheslav
Kravchenko
Maxim
Bystrov
• Chairman of the Board of
Directors2
• Non-executive Director
• Board member since 2010
• Deputy Chairman of the Board
• Member of the HR and
of Directors2
Remuneration Committee
• Non-executive Director
• Non-executive Director
• Board member since 2012
• Board member since 2014
Born in 1960
Born in 1967
Born in 1964
In 1982, graduated from Norilsk
Industrial Institute with a degree
in Industrial and Civil Engineering;
PhD in Economics
Experience:
2007-2009 – Assistant to the
Plenipotentiary Representative of
the Russian President in Siberian
Federal District
2009-2013 – Chairman of Feder-
al Grid Company’s Management
Board
since 2013 – General Director of
JSC Russian Grids
since 2012 – member of the Pres-
idential Commission for Strategic
Development of Fuel and Energy
Secor and Environmental Security
Positions in governing bodies of
other organisations:
Chairman of the Supervisory Board
of Non-Profit Partnership Associ-
ation of Solar Energy Enterprises
Chairman of the Board of Directors
of JSC Moscow United Electric Grid
Company and PJSC Federal Test
Centre
Member of the Supervisory Board
of JSC Russian Regional Develop-
ment Bank; member of the Board of
Directors of JSC Russian Grids and
JSC INTER RAO, member of the Su-
pervisory Board of the North-Cau-
casus Federal University, member
of the Board of Trustees and the
Academic Council of the National
Research University “Moscow Pow-
er Engineering Institute”
S h a r e i n t h e C o m p a n y ’s
o r d i n a r y s to c k : 0 . 0 0 0 6 4 4 0 %
In 1995, graduated from Lomon-
osov Moscow State University with
a degree in Jurisprudence
Experience:
2006-2008 – Director of the
Department of Structural and
Investment Policy in Industry and
Energy of the Ministry of Industry
of the Russian Federation
2008-2010 – General Director of
RN Energo LLC
2010-2012 – General Director of
JSC United Energy Service Com-
pany
2012-2013 – Chairman of the
Management Board of Non-profit
Partnership Market Council and
Chairman of the Management
Board of JSC Trade System Admin-
istrator of the Wholesale Energy
Market
since 2013 – Deputy Minister of
Energy of the Russian Federation
Positions in governing bodies of
other organisations:
Chairman of the Board of Direc-
tors of JSC Financial Settlements
Centre, member of the Board
of Directors of JSC INTER RAO,
JSC Russian Grids, JSC System
Operator of Unified Energy System,
JSC Moscow United Electric Grid
Company, and JSC RusHydro, state
representative in the Supervisory
Board of Non-Profit Partnership
Market Council
H o l d s n o s h a r e s i n t h e
C o m p a n y
In 1986, graduated from Moscow
Civil Engineering Institute named
after V.V.Kuibyshev with a degree in
Hydraulic Engineering of River In-
stallations of Hydroelectric Power
Plants; in 1998 - from the Russian
Academy for Foreign Trade with a
degree in World Economy
Experience:
2009-2010 – Deputy Director of the
Department of Industry and Infra-
structure of the RF Government
2010-2013 - Deputy Plenipotenti-
ary Representative of the Russian
President in North Caucasian
Federal District
since 2013 – Chairman of the Man-
agement Board of JSC Trade Sys-
tem Administrator of the Wholesale
Energy Market
since 2013 – acting Chairman of
the Management Board, since May
2014 – Chairman of the Manage-
ment Board of Non-profit Partner-
ship Market Council
Positions in governing bodies of
other organisations:
Chairman of the Board of Directors
of JSC Northern Caucasus Resorts,
JSC International Airport Mineral-
nye Vody
Member of the Supervisory Board
of Non-profit Partnership Market
Council Non-profit Partnership
Market Council, member of the
Board of Directors of JSC RusHy-
dro, JSC System Operator of Unified
Energy System
H o l d s n o s h a r e s i n t h e
C o m p a n y
86
87
1 Here and elsewhere, personal information about members of the governing and control bodies is disclosed with their consent.
2 Decision of the Board of Directors dated 23 July 2014 (Minutes No. 223 dated 24 July 2014)
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM Andrey
Demin
Boris
Kovalchuk
Sergey
Mironosetsky
• Chairman of the Strategy
• Member of the Audit
Committee
Committee
• Non-executive Director
• Non-executive Director
• Board member since 2014
• Board member since 2012
• Chairman of the Audit
Committee and the HR and
Remuneration Committee
• Non-executive Director
• Board member since 2014
Andrey
Murov
• Executive Director
• Board member since
2013
Georgy
Nozadze
Denis
Fedorov
• Member of the Strategy
Committee
• Non-executive Director
• Board member since 2014
• Member of the Audit
Committee and the HR and
Remuneration Committee
• Non-executive Director
• Board member since 2011
Born in 1974
Born in 1977
Born in 1965
Born in 1970
Born in 1979
Born in 1978
In 1996, graduated from Zapor-
ozhye State University with a
degree in Applied Mathematics; in
1999, graduated from Zaporozhian
Institute of Economics and Infor-
mation Technologies with a degree
in Finance
Experience:
2007-2010 – Deputy Chairman of
the Management Board, member
of the Management Board of Fed-
eral Grid Company
2010-2012 – Adviser to the General
Director on strategic development
of Mezhregionsbyt LLC
2012-2013 – Advisor to the Chair-
man of the Management Board of
Federal Grid Company
since 2013 – First Deputy General
Director for Economic Affairs and
Finance of JSC Russian Grids
Positions in governing bodies of
other organisations:
In 1999, graduated from St
Petersburg University with a
degree in Jurisprudence; in 2010,
graduated from the Institute of
Advanced Training for Executives
and Experts of Fuel and Energy
Sector, and the non-profit partner-
ship Corporate Educational and
Research Centre of UES
Experience:
2006-2009 – Head of the Depart-
ment of National Priority Pro-
jects of the Russian Government,
Assistant to the First Deputy Prime
Minister of the Russian Federation
since 2009 – Deputy Director
General for Development of State
Nuclear Corporation ROSATOM
2009-2010 – Acting Chairman of
the Management Board of JSC
INTER RAO UES
since 2010 – Chairman of the
Management Board of JSC INTER
RAO UES
Chairman of the Board of Directors
of JSC Tyumenenergo
Positions in governing bodies of
other organisations:
In 1989, graduated from Novo-
sibirsk State University with a
degree in Economic Cybernetics
Experience:
2005-2011 – Deputy General
Director, member of the Manage-
ment Board of JSC Siberian Coal
Energy Company (SUEK)
2009-2013 – General Director,
member of the Management Board
of Management Company SUEK
LLC (since 07.09.2011 –Siberian
Generating Company LLC)
Positions in governing bodies of
other organisations:
Member of the Board of Directors
of JSC Inter-regional Distribution
Grid Company of Siberia, SUEK
LLC, JSC Russian Grids
H o l d s n o s h a r e s i n t h e
C o m p a n y
Member of the Board of Directors
of JSC Far East Energy Man-
agement Company, JSC Moscow
United Electric Grid Company
H o l d s n o s h a r e s i n t h e
C o m p a n y
Chairman of the Board of Directors
of JSC First Generating Company
of Wholesale Electricity Market,
CJSC Kambaratinskaya Hydro
Power Plant-1, JSC Third Gen-
erating Company of Wholesale
Electricity Market
Member of the Board of Directors
of JSC INTER RAO UES, RIG RE-
SEARCH PTE Ltd, member of the
Supervisory Board of JSC Russian
Regional Development Bank
Member of the Management Board
of the Russian Union of Manufac-
turers and Entrepreneurs
H o l d s n o s h a r e s i n t h e
C o m p a n y
Graduated from Lomonosov Mos-
cow State University with a degree
in Physics
Experience:
2008-2012 – Assistant, Head of the
Department of Oil and Gas Industry
Development, Deputy Director of
the Department of State Regu-
lation of Tariffs, Infrastructural
Reforms and Energy Efficiency
of the RF Ministry of Economic
Development
since 2012 – Assistant of the
Expert Directorate of the Executive
Office of the RF President
H o l d s n o s h a r e s i n t h e
C o m p a n y
In 1993, graduated from St Peters-
burg State University with a degree
in Jurisprudence; in 1998, took a
special retraining course in Finan-
cial Management at the Inter-disci-
plinary Institute of Advanced Train-
ing and Retraining for Executives.
In 2009, graduated from the State
University of Civil Aviation with a
degree in Freight Regulation and
Air Transport Management. PhD in
Economics
Experience:
2007-2012 – General Director of
JSC Pulkovo Airport
2012-2013 – Deputy General
Director, Acting General Director,
Executive Director, member of the
Management Board of JSC Holding
of the Inter-regional Distribution
Grid Companies (since 04.04.
2013 – JSC Russian Grids)
since 2013 – Chairman of the
Management Board of Federal Grid
Company
Positions in governing bodies of
other organisations:
Member of the Board of Directors
of JSC Russian Grids and JSC
INTER RAO UES
H o l d s n o s h a r e s i n t h e
C o m p a n y
In 2001, Graduated from Bauman
Moscow State Technical University
with a degree in Economics and
Management. In 2003, completed
postgraduate studies at Moscow
Power Engineering Institute with
degrees in Economics and Indus-
trial Heat Power Engineering. PhD
in Economics
Experience:
since 2007 – Head of the Depart-
ment of Electric and Thermal
Power Industry Development of
JSC Gazprom
since 2009 – General Director
of GazpromEnergoholding LLC,
General Director of JSC Centeren-
ergoholding
Positions in governing bodies of
other organisations:
Board Chairman of JSC Sec-
ond Generating Company of the
Wholesale Electricity Market, JSC
Tumen Energy Service Company,
CJSC Mezhregion-Energostroy,
Non-Profit Partnership Council of
Power Producers
Member of the Board of Directors
of JSC TJC-1, JSC Centerenerg-
oholding, JSC Mosenergo, JSC
INTER RAO UES, Heat Retail Com-
pany LLC, Non-Profit Partnership
Centre of Innovative and Energy
Technologies, JSC Moscow United
Energy Company, CJSC Gazprom
Armenia
H o l d s n o s h a r e s i n t h e
C o m p a n y
1 Decision of the Board of Directors dated 23 July 2014 (Minutes No. 223 dated 24 July 2014)
88
89
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM Sergey
Shmatko
• Non-executive Director
• Board member in 2008-
2010, and since 2013
Nikolay
Shulginov
• Chairman of the Investment
Committee and member of the
Strategy Committee
• Non-executive Director
• Board Member since 2013
Born in 1966
Born in 1951
In 2014, there were no
dealings in the Company’s
shares by the Board
members.
In 1973, graduated from No-
vocherkassk Polytechnic Institute.
PhD in Technical Sciences
Experience:
since 2009 – First Deputy Chair-
man of the Management Board of
JSC SO UES
Positions in governing bodies of
other organisations:
Member of the Supervisory Board
of Non-Profit Partnership Scien-
tific and Technological Council of
Unified Energy System
H o l d s n o s h a r e s i n t h e
C o m p a n y
In 1992, graduated from the Facul-
ty of Political Economy of the Ural
State University; in 1992, studied
Economy at Marburg University in
the FRG. In 2004, completed Ad-
vanced Academic Courses in De-
fence and Security of the Russian
Federation of the Military Academy
of the General Staff of Armed
Forces of the Russian Federation.
PhD in Technical Sciences
Experience:
from 06.2008 to 05.2012 – Min-
ister of Energy of the Russian
Federation
since 2012 – member of the Pres-
idential Commission for Strate-
gic Development of the Fuel and
Energy Sector and Environmental
Security of the Russian Federation
since 2013 – Special Representa-
tive of the President of the Russian
Federation on International
Cooperation in the Electric Power
Industry of the Executive Office of
the RF President
Positions in governing bodies of
other organisations:
Chairman of the Board of Directors
of JSC Russian Grids
Chairman of the Supervisory
Board of Non-Profit Partnership
Scientific and Technological Coun-
cil of Unified Energy System
H o l d s n o s h a r e s i n t h e
C o m p a n y
Composition of the Board of Directors acting from 27 June 2013 to 27 June 20141
(positions as of the election date)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Oleg Budargin
Board Chairman, Non-executive Director
Chairman of the Federal Grid Company’s Management Board
Vyacheslav
Kravchenko
Deputy Chairman, Non-executive Director
Chairman of the Management Board of Non-Profit Partnership
Market Council
Georgy Boos
Non-executive Director
President of BOOS LIGHTING GROUP MC LLC
Pavel Grachev
Independent Director
General Director of JSC Far East and Baikal Region Development
Fund
Boris Kovalchuk
Independent Director
Chairman of the Management Board of JSC INTER RAO UES
Andrey Murov
Executive Director
First Deputy Chairman of the Management Board of Federal Grid
Company
Sergey
Serebryannikov
Independent Director
Rector of Moscow Power Engineering Institute
Denis Fedorov
Independent Director
Ernesto Ferlenghi
Non-executive Director
10.
Sergey Shmatko
Non-executive Director
General Director of JSC Centerenergoholding, General Director of
Gazprom Energoholding LLC
Head of the Representative Office of Eni in the Russian Federation
and CIS
Member of the Presidential Commission for Strategic Development
of the Fuel and Energy Sector and Environmental Security of the
Russian Federation
11. Nikolay Shulginov
Non-executive Director
First Deputy General Director of JSC SO UES
Board of Directors’ Performance Report on the Company’s Business Priorities
In the reporting year, the Board of Di-
rectors continued its work on creating
favorable conditions for delivering the
Company’s key objectives – improv-
ing system reliability of electric power
infrastructure, ensuring high-quality and
accessible power for customers in the
Russian Federation.
Some documents approved by/ discussion points of the Board of Directors in 2014
Topics
Document approved/Discussion points
Updating the long-term
strategy of Federal Grid
Company
Business planning
Improving the employee
motivation system
Corporate social
responsibility and
sustainable development
• Long-Term Development Programme of Federal Grid Company for 2015-2019 and Prospects through 2030
• Standard for establishing and updating key performance indicators (KPIs) of Federal Grid Company
• Standard for Business Planning
• Business Plan of Federal Grid Company for 2014 and forecasts for 2015-2018
• Methodology for Calculation and Evaluation of Key Performance Indicators for Federal Grid’s Senior Management for 2014
• Revised version of the Environmental Policy of Federal Grid Company
• Society, Customer and Government Relations Policy
Investment policy
• Standard for Conducting Public Technological and Pricing Audit of Investment Projects
Updating the Federal Grid’s
internal documents
• Revised version of the Regulations on the Strategy Committee of the Board of Directors of Federal Grid Company
• Revised version of the Regulations on the Investment Committee of the Board of Directors of Federal Grid Company
• Pre-approval of transactions which may entail liabilities denominated in foreign currency
• Consideration of information on eliminating the faults noted in the comments made upon the on-site audits of the RF Ministry
Other matters
of Energy of the Federal Grid’s investment projects
• Consideration of related party transactions (321 transactions)
• Consideration of matters related to defining position of the Federal Grid’s representatives in the governing bodies of
subsidiaries and associates
1 Board members with independent status met, as of the election date, the
independence criteria set by the Russian Code of Corporate Conduct and the
Listing Rules of the Moscow Stock Exchange, which were in force until 08
June 2014.
90
91
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM The Company plans to conduct performance evaluation of the Board of Directors and its committees with the assistance of
an independent external facilitator.
Attendance of Board members at Board meetings and Committee meetings during 2014
The Board of Directors
Investment Committee
Strategy Committee
HR and Remuneration
Committee
Audit Committee
Oleg Budargin
Boris Kovalchuk
Vyacheslav Kravchenko
32/36
33/36
27/36
89 %
91 %
75 %
100%
80%
Denis Fedorov
35/36
97 %
100%
100%
100%
Andrey Murov.
Sergey Shmatko
Nikolay Shulginov
Ernesto Ferlenghi
Georgy Boos
Pavel Grachev
30/36
34/36
35/36
12/13
1/13
10/13
83 %
94 %
97 %
92%
8%
77%
100%
100%
50%
Board members until 27 June 2014 .
100%
Sergey Serebryannikov
13/13
100%
100%
100%
Maxim Bystrov
21/23
91 %
100%
Board members since 27 June 2014
Andrey Demin
23/23
100 %
Georgy Nozadze
22/23
96 %
100%
50%
Sergey Mironosetsky
23/23
100 %
100%
100%
100%
The Board focuses on the oversight of the implementation of the Federal Grid’s strategy
Being responsible for the strate-
gic guidance, the Board of Direc-
tors regularly deals with matters
on the development of UNEG
infrastructure, improvement
of the Company management’s
efficiency, and maintaining its
financial stability.
The Federal Grid’s Long-Term
Development Programme, ap-
proved in 2014, includes a list of
key performance indicators produced
according to the Company’s strategic
objectives, specific aspects of its
activities, as well as industry-wide
strategic objectives and priorities.
The Board of Directors will monitor
KPI status using, among other things,
the reports of the independent au-
ditor engaged to review the achieve-
ment of targets set in the Long-Term
Development Programme. Following
the review, decisions may be made
based on the results achieved.
Furthermore, pursuant to rec-
ommendations of the Corporate
Governance Code, the role of the
Audit and Strategy Committees
will be expanded in 2015 in terms
of the assessment of the Compa-
ny’s long-term performance.
36
meetings
were held
by the Board of
Directors in 2014,
of which
8
in the form
of joint
presence
429
issues were
considered
A
B
%
C
G
D
E
F
H
This structure does not include 321 issues
of related party transactions’ approval
The structure of issues
considered by the Board
of Directors in 2014
A
B
C
D
E
F
G
H
Updating the Long-Term Strat-
egy ofn Federal Grid Company
4 / 4%
Business Planning
Improvingthe Employee Moti-
vation System
Corporate Social Responsibility
and Sustainable Development
Investment Policy
Updatingthe Federal Grid’s
internal documents
Defining position of the
Federal Grid’s representatives
in the governing bodies of
subsidiaries and associates
7 / 7%
12 / 11%
2 / 2%
7 / 6%
2 /2 %
9 / 8%
Other matters within the
Board’s competence
65 / 60%
92
93
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM COMMIT TEES OF THE BOARD OF DIRECTORS
HR and Remuneration Committee
Role and Functions
The key role of the HR and Remuneration Committee is to assist the Board of Directors in establishing efficient and transparent remuneration
practices and developing HR and succession policies.
The HR and Remuneration Committee:
• Develops principles and criteria for remuneration and material incentives of members of the Board of Directors, the Management Board and
the Audit Commission
• •Develops recommendations regarding the material terms and conditions of contracts with members of the Board of Directors, the Chairman
and members of the Management Board
• •Develops criteria for selecting potential nominees to the Board of Directors, the Management Board and conducts preliminary evaluation of
the said candidates
• Regularly assesses performance of the Chairman and members of the Management Board, and drafts recommendations to the Board of Direc-
tors regarding their possible reappointment
Membership
Members elected by the Board of Directors on 28 November 2013
Members elected by the Board of Directors on 29August 2014
1. Denis Fedorov, Chairman, Independent Director
1. Sergey Mironosetsky, Chairman, Non-executive Director
2. Boris Kovalchuk, Independent Director
3. Sergey Serebryannikov, Independent Director
2. Maxim Bystrov, Non-Executive Director
3. Denis Fedorov, Non-Executive Director
Activities in 2014
The Committee held 5 meetings in absentia and considered, among other things, the following matters:
• Recommendations to the Board of Directors with respect to the approval of the Standard for establishing and updating key performance indica-
tions (KPIs) of Federal Grid Company and the Methodology for calculating and measuring these KPIs, including their target values for 2014
• Recommendations to the Board of Directors with respect to the amendments to employment agreements with and determination of remunera-
tion and compensation to the Federal Grid’s senior managers
• Recommendations to the Board of Directors with respect to the approval of the Methodology for Calculation and Evaluation of Key Performance
Indicators for Federal Grid’s Senior Management for 2015
The committees are established to assist
the Board of Directors in performing its
key functions. Such assistance includes
preliminary discussions on the most
important matters which are reserved
for the Board, and development of rec-
ommendations for the Board on these
matters.
Members of the committees have skills,
knowledge and experience in the areas
of the committees’ responsibility. The
committee members have strong working
relationships and actively engage with the
Company’s management team and ex-
ternal auditor, they also have may retain
outside consultants.
Federal Grid’s Board of Directors has four
permanent committees: for Audit, HR and
Remuneration, Strategy, and Investment.
Activities of the committees are regulated
by their terms of reference, approved by
the Board of Directors.
Audit Committee
Role and Functions
The key role of the Audit Committee is to assist the Board of Directors in providing oversight of the Company’s financial and business activities.
The Audit Committee:
• Evaluates candidates for the Company’s external auditors and drafts recommendations to the Board of Directors regarding the appointment of
external auditors, the conduct of annual independent audit and external auditors’ fees
• Reviews the Company’s financial statements and results of the external audit of the financial statements with respect to their compliance with
RF legislation, International Financial Reporting Standards, Russian Accounting Standards, other legal regulations
• Reviews the internal control system and drafts recommendations to the Board of Directors on its improvement
• Approves internal audit plans in the Company
• Considers quarterly reports of the internal audit unit
Membership
Members elected by the Board of Directors on 28 November 2013
Members elected by the Board of Directors on 29August 2014
1. Denis Fedorov, Chairman, Independent Director
1. Sergey Mironosetsky, Chairman, Non-executive Director
2. Boris Kovalchuk, Independent Director
3. Sergey Serebryannikov, Independent Director
2. Denis Fedorov, Non-executive Director
3. Boris Kovalchuk, Non-executive Director
Activities in 2014
The Committee held 5 meetings in absentia and considered 19 matters, including:
• Review of the Federal Grid’s RAS financial statements for 2013, the audit report and the Audit Commission’s report
• Recommendations to the Board of Directors with respect to the preliminary approval of the Company’s Annual Report and Accounts 2013
• Review of the Federal Grid’s IFRS financial statements for 2013
• Recommendations to the Board of Directors regarding a candidate for external auditor for 2014 and external auditor’s fee
• Review of the new versions of the Company’s Internal Control Policy, Risk Management Policy and Key Operational Risk Register, recommen-
dations to the Board of Directors with respect to the approval thereof
• Review of the Report on the Internal Control and Risk Management Effectiveness following the Results of 2013
• Recommendations to the Board of Directors with respect to the approval of the adjusted business plan for 2014, business plan for 2015, and
forecast indicators for 2016-2019
• Review of the Standard for Auditing the Implementation of the Federal Grid’s Long-Term Development Programme, and recommendations to
the Board of Directors with respect to the approval thereof
• Approval of the plan for conducting internal audits for the first and the second half of 2014.
94
95
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM Strategy Committee
Investment Committee
The key role of the Strategy Committee is to assist the Board of Directors in improving the Company’s performance efficiency in the long term.
The key role of the Investment Committee is to assist the Board of Directors in improving and developing the Company’s investment policy.
The Strategy Committee develops recommendations to the Board of Directors on the following matters:
The Investment Committee:
Role and Functions
Role and Functions
• Measures and programmes for the development of the Unified Energy System (UES) of Russia, including developing the Unified National
(all-Russian) Electric Grid (UNEG), including isolated energy systems
• Measures to carry out technological connections to the electric grids
• Processes related to the effective functioning of the wholesale electric energy market, the technological management of electric grids that are
part of the UES of Russia
• Control over implementation of investment projects to develop electric grids and the UES of Russia
• Innovative technologies applied for the decision making process under the activity on electricity transmission via UNEG to the wholesale mar-
ket participants
• Performs expert evaluation of new investment projects and programmes, submitted for consideration of the Company’s Board of Directors
• Timely informs the Company’s Board of Directors about risks in the area of investment activity, to which the Company and its subsidiaries and
associates are subjected
Membership
• Information disclosure by the Company as a subject of natural monopoly in the electric power industry, and other issues related to the develop-
Members elected by the Board of Directors on 30 January 2014
Members elected by the Board of Directors on 27 August 2014
ment of UNEG
Membership
1. Sergey Shmatko, Chairman, Non-Executive Director
1. Nikolay Shulginov, Chairman, Non-Executive
2. Ernesto Ferlenghi, Non-Executive Director
2. Sergey Mironosetsky, Non-Executive Director
3. Svetlana Balaeva, Deputy General Director for Investments of JSC
3. Denis Fedorov, Non-Executive Director
Members elected by the Board of Directors on 30 January 2014
Members elected by the Board of Directors on 27 August 2014
Russian Grids
4. Svetlana Balaeva, Deputy General Director for Investments of JSC
1. Vyacheslav Kravchenko , Chairman, Non-Executive Director
2. Ernesto Ferlenghi, Non-Executive Director
3. Nikolay Shulginov, Non-Executive Director
4. Andrey Demin, First Deputy General Director of JSC Russian Grids
5. Anatoly Dyakov, President of the Unified Energy Complex
1. Andrey Demin, Chairman, Non-Executive Director
2. Georgy Nizadze, Non-Executive Director
3. Nikolay Shulginov, Non-Executive Director
4. Stanislav Ananiev, First Deputy Chairman of the Management Board
of JSC ATS
Corporation and the Non-Profit Partnership Scientific and Technical
Council of UES
5. Oleg Isaev, General Director of JSC IDGC of Centre
6. Andrey Kazachenkov, First Deputy Chairman of the Management
6. Vladimir Dikoy, Deputy Chairman of the Management Board – Chief
Board of JSC FGC UES
Engineer of JSC FGC UES
7. Sergey Lebedev, Director of Strategic Development Department of
7. Andrey Kazachenkov, First Deputy Chairman of the Management
JSC Russian Grids
Board of JSC FGC UES
8. Valentin Mezhevitch, Deputy General Director for Strategic
8. Alexander Kalinin. First Vice-President of All-Russian Public
Communications of JSC Russian Grids
Organisation of Small and Medium businesses OPORA ROSSII
9. Viktor Kydryaviy, Adviser of the President of CJSC Eurocement
9. Evgeny Miroshnichnko, Director of Strategic Development of the
Strategy and Investment Block of JSC INTER RAO UES
4. Dan Belenkiy, First Deputy General Director for Investment Activity
Russian Grids
of JSC Russian Grids
5. Dan Belenkiy, First Deputy General Director for Investment Activity
5. Valery Goncharov, Deputy Chairman, member of the Management
of JSC Russian Grids
Board of JSC Russian Grids
6. Valery Goncharov, Deputy Chairman, member of the Management
6. Oleg Isaev, General Director of JSC IDGC of Centre
Board of JSC Russian Grids
7. Michael Kolesnikov, member of the Presidium of the Management
7. Michael Kolesnikov, member of the Presidium of the Management
Board of OPORA ROSSII
Board of OPORA ROSSII
8. Vitaliy Korolev, Head of Electric Energy Industry Supervision
Department of the Federal Antimonopoly Service of Russia
8. Vitaliy Korolev, Head of Electric Energy Industry Supervision
Department of the Federal Antimonopoly Service of Russia
9. Leonid Mazo, member of the Management Board of JSC FGC UES,
9. Leonid Mazo, member of the Management Board of JSC FGC UES
General Director of JSC CIUS UES
10. Alexey Makarov, member of the Russian Academy of Sciences
10. Alexander Rogov, Head of the Energy Sector Development
Department at the Energy Sector and Energy Marketing
Development Division of JSC Gazprom
Group
10. Alexey Molskiy, Deputy Chairman of the Management Board of JSC
11. Ilnar Mirsiyapov, member of the Management Board, Head of the
10. Sergey Lebedev, Director of Strategic Development of JSC Russian
FGC UES
Strategy and Investment Unit of JSC INTER RAO UES
11. Ivan Selivakhin, Adviser to the Chairman of the Management Board
Grids
11. Evgeny Miroshnichnko, Director for Strategic Development of the
Strategy and Investment Block of JSC INTER RAO UES
12. Alexey Molskiy, Deputy Chairman of the Management Board of JSC
FGC UES
13. Alexander Pirozhenko, Director for Priority Programme
Development of the Agency for Strategic Initiatives, Chairman of
the Supervisory Board of the Council of Retail Consumers of Energy
Resources, Chairman of the Consumer Council of JSC Russian
Grids
14. Alexander Rogov, Head of the Energy Sector Development
Department at the Energy Sector and Energy Marketing
Development Division of JSC Gazprom
15. Petr Sinyutin, General Director of JSC MOESK
16. Pavel Snikkars, Director of the Department of the Electric Energy
Industry Development of the Russian Ministry of Energy
17. Alexey Sukhov, Deputy Chairman of the Management Board of JSC
ATS
11. Evgueny Olkhovitch, Deputy Director of the Department of State
Regulation of Tariffs, Infrastructure Reforms and Energy Efficiency
of the RF Ministry of Economic Development and Trade
12. Alexander Rogov, Head of the Energy Sector Development
Department at the Energy Sector and Energy Marketing
Development Division of JSC Gazprom
13. Petr Sinyutin, General Director of JSC MOESK
14. Pavel Snikkars, Director of the Department of the Electric Energy
Industry Development of the Russian Ministry of Energy
15. Pavel Shpilevoy, Director of Strategic Development of JSC Russian
Grids
12. Alexander Pirozhenko, Director for Priority Programme
Development of the Agency for Strategic Initiatives, Chairman of
the Supervisory Board of the Council of Retail Consumers of Energy
Resources, Chairman of the Consumer Council of JSC Russian
Grids
13. Alexander Rogov, Head of the Energy Sector Development
Department at the Energy Sector and Energy Marketing
Development Division of JSC Gazprom
14. Ivan Selivakhin, Adviser to the Chairman of the Management Board
of Non-Profit Partnership “Market Council”
15. Pavel Snikkars, Director of the Department of the Electric Energy
Industry Development of the Russian Ministry of Energy
16. Alexander Fedorov, Head of the Infrastructural Project Department
of JSC FGC UES
17. Svetlana Cherkaeva, Head of the Department for Investment
Planning in Electric Energy Industry of the Russian Ministry of
Energy
of Non-Profit Partnership “Market Council”
12. Ilnar Mirsiyapov, member of the Management Board, Head of the
Strategy and Investment Unit of JSC INTER RAO UES
13. Vladimir Vashkevitch, Deputy General Director for Grid Development
and Services of the Federal Grid branch MES North-West
14. Konstantin Zavizenov, Deputy Director of the Department of the
Electric Energy Industry Development of the Russian Ministry of
Energy
15. Viktor Lebedev, Assistant to the Deputy Chairman of the
Government of the RF Arkadiy Dvorkovitch1
16. Khasan Likhov, Deputy General Director for special projects of JSC
Russian Grids
17. Evgueny Olkhovitch, Deputy Director of the Department of State
Regulation of Tariffs, Infrastructure Reforms and Energy Efficiency
of the RF Ministry of Economic Development and Trade
Activities in 2014
Activities in 2014
Two meetings were held: one in person and one in absentia. The following matters were considered:
• Long-Term Development Programme of Federal Grid Company for 2015-2019 and Prospects through 2030
• Priority areas of the Company’s activity, ensuring accessibility of energy infrastructure and quality of technological connection to the Compa-
ny’s electric grids
• Recommendations to the Board of Directors with respect to the approval of the Methodical Guidelines for determining reserve capacity at pow-
er supply sources of the Company with consideration of the comments of the Strategy Committee members
• Review of standard documents on technological connection submitted to the Board of Directors for consideration
Eight meetings were held, and the following matters were considered:
• Elimination of faults noted in the comments made upon the on-site audits of the RF Ministry of Energy of the Federal Grid’s investment projects
• Making a Summary of consolidated indices of construction (reconstruction) costs of substations and transmission lines
• Determination of specific indices of construction costs of Federal Grid’s facilities from 201 to 2019 in the context of the delivery of the RF
Electric Grid Complex Strategy on reducing specific investment costs by 30% as compared to 2012, broken down by voltage level of substations,
overhead and underground power lines
• Regulations on Investment activity of Federal Grid Company and/or Procedure for developing and adjusting the Federal Grid’s investment
programme and reporting on its delivery
• Preliminary approval of the Federal Grid’s investment programme for 2015-2019
• Progress report on the technological and pricing audit of the investment projects with an estimated cost of RUB1.5 billion and more each
96
97
1 On 12 January 2014, the Board of Directors decided to remove the Investment Committee member Viktor Lebedev and to reduce the number of Committee members to
16 persons (Minutes No. 240 dated 15 January 2014).
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM REMUNER ATION OF THE BOARD OF DIRECTORS AND ITS COMMIT TEES
Membership of the Management Board as of December 31, 2014
Board of Directors
The procedure for determining the
amount of remuneration and compen-
sation due to the Board members is set
by the Regulations on Remuneration and
Compensation to the Members of the
Board of Directors of Federal Grid Com-
pany, as approved by the Annual General
Meeting of Shareholders on 29 June 2012.
In accordance with the above Regula-
tions, the amount of remuneration to each
Board member for his/her contribution to
the operations of the Board of Directors
depends on the following factors:
• total number of Board of Directors’
meetings held during the corporate
year;
• number of meetings attended by the
Board member; and
• the Company’s revenues for the respec-
tive fiscal year.
Remuneration for the Chairman of the
Board of Directors is increased by 30%.
Increase is also set for members of the
Board for their work in committees: the
Chairman of the Committee receives a
20% bonus, and a Committee member
receives 10%.
No compensation for expenses of mem-
bers of the Board of Directors is provided.
The total remuneration for each Board
member, given all premiums, cannot
exceed RUB900 thousand.
Since the Company incurred a loss for the
2013 fiscal year, the GMS held on 27 June
2014 resolved to pay no remuneration to
the Board of Directors for 2013.
The 2015 General Meeting of Sharehold-
ers will resolve on remuneration to the
members of the Board of Directors for
2014.
During the reporting year, no loans (cred-
its) were provided to the Board members
by the Company.
Board Committees
The Regulations on Remuneration of
Members of the Committees of the Board
of Directors of Federal Grid Company,
approved by the Board of Directors on 16
December 2010, cover matters of paying
remuneration to members of the Board
committees who are not members of the
Board of Directors or the collective exec-
utive body and/or the sole executive body
of the Company.
On a quarterly basis, committee members
shall be paid remuneration for each meet-
ing attended. The amount of remuneration
is equal to three minimum monthly wage
rates for a first category worker. Remu-
neration to the Chairman of the Commit-
tee is increased by 50%.
The total amount of remuneration paid
to members of the Board committees for
2014 was RUB810.6 thousand.
MANAGEMENT BOARD
Effective Leadership
The Management Board and the Chairman
of the Management Board – collective and
sole executive bodies – are responsible
for the day-to-day operations of the Com-
pany and play a key role in the delivery
of strategic objectives of Federal Grid
Company.
The Federal Grid’s Articles of Associa-
tion set the competence of the executive
bodies and provide for their accountability
to the Board of Directors and the General
Meeting of Shareholders.
Changes to the membership of the Management Board in 2014
On 24 October 2014, the Board of
Directors decided to terminate
the authorities of the following
members of the Federal Grid’s
Management Board: Leonid
Mazo, Valery Sedunov and
Vladimir Shukshin (Minutes No.
233 dated 27 October 2014).
New members of the Management
Board were elected: Alexander
Vasiliev, Alexander Zaragatsky,
and Nikolay Pozdnyakov.
Andrey
Murov
Valery
Goncharov
Andrey
Kazachenkov
• Chairman of the
Management Board,
member of the Federal
Grid’s Board of Directors
• Management Board
member since 2012
• First Deputy Chairman of
the Management Board
• First Deputy Chairman of
the Management Board
• Management Board
member since 2013
• Management Board
member since 2010
Areas of Responsibility:
Areas of Responsibility:
Areas of Responsibility:
Managing the day-to-day operations
of the Company, leading the work of
the Management Board
Born in 1970
In 1993, graduated from St Peters-
burg State University with a degree
in Jurisprudence; in 1998, took a
special retraining course in Financial
Management at the Inter-disciplinary
Institute of Advanced Training and
Retraining for Executives. In 2009,
graduated from the State Universi-
ty of Civil Aviation with a degree in
Freight Regulation and Air Transport
Management. PhD in Economics
Experience:
2007-2012 – General Director of
JSC Pulkovo Airport
2012-2013 – Deputy General
Director, Acting General Director,
Executive Director, member of the
Management Board of JSC Holding
of the Inter-regional Distribution Grid
Companies (since 04.04. 2013 – JSC
Russian Grids)
since 2013 – Chairman of the
Management Board of Federal Grid
Company
Positions in governing bodies of
other organisations:
Member of the Board of Directors of
JSC Russian Grids and JSC INTER
RAO UES
H o l d s n o s h a r e s i n t h e
C o m p a n y
Developing customer relations
Managing telecommunications and
information technologies
Economics and Finance, property
management, managing subsidiaries
and associates
HR management and development
Investment planning and procure-
ment
Born in 1980
Engineering, construction and re-
construction
Born in 1963
In 1987, graduated from Leningrad
Shipbuilding Institute. PhD in Eco-
nomics.
Experience:
2006-2012 – Deputy Director for
Economics and Finance of JSC Ro-
szheldorproject
2012-2013 – Deputy Chairman of
the Management Board of Federal
Grid Company
since 2013 – First Deputy Chairman
of the Management Board of Federal
Grid Company
H o l d s n o s h a r e s i n t h e
C o m p a n y
Graduated from St Petersburg State
Engineering and Economic Univer-
sity with degrees in Management
and Economics and Management in
Engineering Industry. Received an
MBA at the University of Wisconsin
(Madison, USA) and was trained at
the IMD (Switzerland) and INSEAD
(France) business schools under
special programmes in Economics
and Finance.
Experience:
2009-2012 – Deputy Chairman of
the Management Board of Federal
Grid Company
since 2012 – First Deputy Chairman
of the Management Board of Federal
Grid Company
Positions in governing bodies of
other organisations:
member of the Board of Directors of
JSC Non-Government Pension Fund
of the Electric Energy Industry
S h a r e i n t h e C o m p a n y ’s
o r d i n a r y s t o c k : 0 . 0 0 0 5 49 % .
98
99
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM Alexander
Vasiliev
Vladimir
Dikoy
• Deputy Chairman of the
Management Board
• Management Board
member since 2014
• Deputy Chairman of the
Management Board – Chief
Engineer
• Management Board
member since 2013
Alexander
Zaragatsky
• Deputy Chairman of the
Management Board
• Management Board
member since 2014
Nikolay
Pozdnyakov
Maria
Tikhonova
Dmitry
Shishkin
• Deputy Chairman of the
Management Board
• Management Board
member since 2014
• Deputy Chairman of the
Management Board
• Management Board
member since 2013
• Internal Control Director
• Management Board
member since 2013
Areas of Responsibility:
Areas of Responsibility:
Areas of Responsibility:
Areas of Responsibility:
Areas of Responsibility:
Areas of Responsibility:
Security issues
Born in 1958
In 1982, graduated from Leningrad
Mechanical Institute with a degree
in Mechanical Engineering; in 2003,
graduated from St Petersburg
State University of Economics and
Finance with a degree in Econom-
ics; in 2007, graduated from St
Petersburg Institute of Foreign
Economic Relations, Economics
and Law with a degree in Jurispru-
dence
Experience:
2003-2010 – Head of Moscow
Region Department of the RF State
Committee for Control over Drug
and Psychotropic Trafficking
2010-2011 – Deputy Director,
Director of Security Department of
JSC MMC Norilsk Nickel
2011-2014 – Deputy Head of the
Federal Customs Service
since 2014 – Deputy Chairman of
the Management Board of Federal
Grid Company
H o l d s n o s h a r e s i n t h e
C o m p a n y
Maintenance and Repairs
Born in 1954
In 1981, graduated from Moscow
Power Engineering Institute with
a degree in Electric Power Supply
of Industrial Enterprises, Cities
and Agriculture. PhD in Technical
Sciences.
Experience:
2008-2009 – Deputy Director Gen-
eral for Production of JSC Glavset-
service of UNEG
2010-2013 – Deputy Chief Engineer
of Federal Grid Company
Legal and general administrative
matters
Engineering, construction and
reconstruction
Born in 1976
Born in 1979
In 2001, graduated from St Peters-
burg Law Institute of the General
Prosecutor Office with a degree in
Jurisprudence; in 2002, graduated
from St Petersburg Institute for
Management and Economics with
a degree in State and Municipal
Management. PhD in Economics
Experience:
2007-2013 – Chief of Staff of the
Chairman of St Petersburg Legisla-
tive Assembly
Graduated from Moscow State Uni-
versity with a degree in Physics and
Higher School of Economics with a
degree in Economics
Experience:
2009-2013 – Head of Investment
Project Monitoring, Head of Invest-
ment Planning and Reporting De-
partment of Federal Grid Company
2013-2014 – Deputy General
Director for Investments of JSC
Russian Grids
Corporate governance
Born in 1980
Graduated from Volga-Vyatka
Academy of Public Service with
a degree in Public and Municipal
Administration, Higher School of
Economics with MBA Finance. PhD
in Economics.
Experience:
2008-2012 – Head of Corporate
Management and Economic Analy-
sis Unit of the Department, Direc-
tor of the Department for Economic
Regulation and Property Relations
in the Fuel and Energy Complex of
the Russian Ministry of Energy
since 2013 – Deputy Chairman of
the Management Board – Chief
Engineer of Federal Grid Company
since 2013 – Deputy Chairman of
the Management Board of Federal
Grid Company
since 2014 – Deputy Chairman of
the Management Board of Federal
Grid Company
since 2013 – Deputy Chairman of
the Management Board of Federal
Grid Company
H o l d s n o s h a r e s i n t h e
C o m p a n y
Positions in governing bodies of
other organisations:
Chairman of the Board of Directors
of JSC Mobile Gas Turbine Electric
Power Plant and JSC Dalenergo-
setproekt
member of the Board of Directors
of JSC Electrosetservice of UNEG
and JSC Tomsk Trunk Grids
S h a r e i n t h e C o m p a n y ’s
o r d i n a r y s to c k : 0 . 0 0 0 0 2 2 %
Positions in governing bodies of
other organisations:
General Director of JSC Centre
for Engineering and Construction
Management of UES
S h a r e i n t h e C o m p a n y ’s
o r d i n a r y s t o c k : 0 . 0 0 0 0 9 3 8 %
H o l d s n o s h a r e s i n t h e
C o m p a n y
Internal Control and Risk Manage-
ment
Operational controlling and compli-
ance procedures
Born in 1967.
In 1992, graduated from the Higher
School of the KGB of the USSR
named after Dzerzhinsky with a
degree in Jurisprudence
Experience:
2009-2012 – Deputy Director for
Security of Gazprom EP Interna-
tional Services B.V., Moscow
2013 – Security Director of JSC
Moscow Unified Electric Grid
Company
since 2013 – Internal Control Di-
rector of Federal Grid Company
Positions in governing bodies of
other organisations:
member of the Board of Directors
of JSC Energostroysnabkomplekt
and JSC Centre for Engineering
and Construction Management of
UES
H o l d s n o s h a r e s i n t h e
C o m p a n y
100
101
In 2014, there were no dealings in the Company’s shares by the members of the Management Board.
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM Activities of the Management Board in 2014
In 2014, all KPIs were met, and conse-
quently, quarterly and annual bonuses for
the Management Board members were
100% of those determined by employment
agreements
65
meetings of the
Management Board
were held in 2014,
of which
752
matters of the day-to-
day operations of Federal
Grid were considered
joint presence
8 in the form of
In order to improve the Federal Grid’s
internal efficiency and minimise the impact
of risks that can affect the Company’s
performance, in the reporting year the
Management Board approved an Action
Plan (‘road map’) for ensuring financial
stability and improving economic efficiency
of the Company’s operation for 2014-2015,
which includes, among other things, a set
of crisis response measures.
The Management Board has devoted its
special attention to managing subsidiar-
ies and associates. To set a unified policy
for managing subsidiaries and associ-
ates, all matters of business planning
and main areas of the development
strategies of subsidiaries and associates
for 2014-2018 have been preliminarily
considered by the Management Board.
Following changes in the Russian corpo-
rate legislation, in order to set a unified
approach, the Management Board ap-
proved standard Articles of Association
for a subsidiary whose voting shares are
100% owned by Federal Grid.
In the reporting year, the Management
Board continued to monitor the imple-
mentation of the technical maintenance
and repair programme, as well as the
programme for managing the Company’s
non-core assets.
Besides, the Management Board has made
decisions on charitable assistance and has
considered matters of social assistance to
Federal Grid’s employees.
Remuneration of the Management Board
In accordance with the Regulations
on Terms and Conditions of Employ-
ment Agreements and Determination
of Remuneration and Compensation for
Senior Managers of Federal Grid Com-
pany approved by the Board of Directors
on 17 June 2010, remuneration for senior
managers is determined by their employ-
ment agreements. Remuneration includes
a fixed component (salary) and a variable
component (bonuses). Bonuses are tied
to key performance indicators (KPIs) of
senior managers.
In 2014, the Board of Directors approved
the Methodology for Calculation and Eval-
uation of Key Performance Indicators for
Federal Grid’s Senior Management that
included KPI targets for 2014.
The major changes to the 2014 Methodol-
ogy compared with the same methodology
for the prior year were as follows:
1. The Methodology was developed in line
with the provisions of the KPI Guidance
for state-owned corporations, com-
panies, unitary enterprises, as well as
business entities where the Russian
Federation or a subject of the Russian
Federation has a majority interest
(issued pursuant to the Assignment of
the RF President No. Pr-1474 dated 5
July 2013). In accordance with the above
Guidance, the following mandatory
indicators were included in the Method-
ology: ROIC (return on invested capital)
and TSR (total shareholder return). The
last one was indicative in 2014 and was
not included in the senior management
bonus plan.
2. Pursuant to the decision of the Federal
Grid’s Board of Directors (Minutes No.
303 dated 5 November 2013), an indica-
tor was included in the Methodology for
measuring reliability of services provid-
ed. The target value was set in accord-
ance with the Order of the Federal Tariff
Service No. 486-e/3 dated 28 December
2012.
3. Pursuant to the assignment of the
Russian Government (Directive No.
5533p-P13 dated 17 September 2013) and
the decision of the Federal Grid’s Board
of Directors (Minutes No. 207 dated 16
December 2013), an annual indicator
Meeting Deadlines for Technological Con-
nection was included in the Methodology.
4. In accordance with the Development
Strategy for the Russian Electric Grid
Complex approved by the Russian
Government (Resolution No. 511-r dated
3 April 2013), the following indicators
were included in the Methodology:
Reduction in Unit Investment Costs,
Reduction in Operational Expenditure,
and Preventing Increase in the Number
of Injured in Accidents.
5. In order to improve the operating con-
trol over the Company’s activities, we
have changed the annual and semi-an-
nual senior management bonus plan to
the quarterly and annual bonus plan.
In case any of the KPIs is not met, then the
bonuses of all members of the Manage-
ment Board, including the Chairman, are
decreased by a certain percent depending
on the indicator significance level. The
most significant quarterly KPIs are No ma-
jor accidents (40% weighting) and Prevent-
ing Increase in the Number of Injured in
Accidents (40% weighting). The most sig-
nificant annual KPIs, with a 15% weighting
each, are ROIC, Electric Energy Losses,
Achieving Reliability Level of Services, and
Meeting Schedules for Commissioning.
Quarterly KPI
2013
actual
2014
target
2014
actual
quarterly
1 quarter
2 quarter
3 quarter
4 quarter
Reliability indicator: no major accidents
0 per year
0
0
0
0
0
Preventing Increase in the Number of Injured
in Accidents
-
no
increase
no
increase
no
increase
no
increase
no
increase
Financial stability indicator. i.e. the financial
leverage ratio
0.33
first half of
the year
0.44
second half
of the year
≤ 1.5 or a value
determined in
business plan
0.44
0.43
0.43
0.44
Annual KPI
2013
actual
2014
target
2014
actual
Indicative indicator: TSR (Total Shareholder Return)
ROIC (Return on Invested Capital)
Cost reduction for the acquisition of goods (work. services)
Reduction in operational expenditure
Electricity losses
Achieving reliability level of services
Reduction in unit investment costs
Meeting schedules for commissioning
Meeting deadlines for technological connection
-
-
10.25%
-
4.28%
of supply
-
-
99.6%
-
≥ of average value
of MICEX index PWR
(3.08 %)
- 50.5%
≥ 1
(0.9 % under business
plan)
1.77
(1.6% under business
plan)
≥ 10%
≥ 15%
18.49%
21.7%
≤ 100%
(4.34% of supply)
95.16%
(4.13% of supply)
1
≥ 10%
≥ 95%
≤ 1
1
17.03%
100.9%
0.72
Remuneration of members of the Management
Board in 2014, RUB thousand
Remuneration of the Chairman of the
Management Board in 2014, RUB thousand
all members including
Chairman*
Chairman of the
Management Board
Remuneration for contributions to the
Management Board’s operations
0
Remuneration for contributions to the
Management Board’s operations
Salary
Bonuses
Commission
Benefits
Reimbursement of expenses
93,344
Salary
140,152
Bonuses
0
0
0
Commission
Benefits
Reimbursement of expenses
Other types of remuneration
32,438
Other types of remuneration
Total
265, 934
Total
0
26,506
33,724
0
0
0
15,007
75,237
* Including remuneration paid to all members of the Management Board in 2014
taking into account changes in the composition of the Management Board.
102
103
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM Audit Commission
The Audit Commission is a permanent
body which is elected annually by the
General Meeting of Shareholders and is
responsible for exercising control over
the Company’s financial and operational
activities, its governing bodies and struc-
tural units.
In its operations, the Audit Commission
is governed by the Articles of Association
and the Regulations on the Audit Commis-
sion of Federal Grid Company.
The main tasks of the Audit Commission
are as follows:
• confirmation of the reliability of data
contained in the Company’s annual
report, accounting balance sheet, and
profit and loss statement;
• analysis of the Company’s financial
position, identification of ways for
improving the financial position of the
Company, and developing recommenda-
tions to the governing bodies;
• organisation and performance of audits
(revisions) of the Company’s financial
and operational activities.
Members of the Audit Commission
Elected by the Annual General Meeting of Shareholders on 27 June 2014
Name
Year of birth
Education
Position
Nikolay Varlamov
1974
Higher
Deputy General Director for Control and Audit of JSC Russian Grids
Anna Drokova
Marina Lelekova
Vladimir Skobarev
Alan Khadziev
1985
1961
1952
1981
Higher
Head of the Department of organisations of Fuel and Energy Sector of the
Department of Property Relations and Privatisation of the Federal Agency of State
Property Management
Higher
Head of the Control and Internal Audit Department of JSC Russian Grids
Higher
Director General of MOORE STEPHENS RUS, Ltd
Higher
Director on Internal Audits of JSC Far East Energy Management Company
Current members of the Audit Commission hold no shares in Federal Grid Company and hold no positions in the Company’s governing bodies.
Acting from 11 November 2013 to 27 June 2014
Name
Year of birth
Education
Position
Anna Drokova
Leonid Naganov
Karim Samakhuzhin
Vladimir Khvorov
Anna Nesterova
1985
1972
1988
1947
1982
Higher
Head of the Department of organisations of Fuel and Energy Sector of the
Department of Property Relations and Privatisation of the Federal Agency of State
Property Management
Higher
Minister of Energy of Moscow Region
Higher
Higher
Higher
Deputy Head of the Secretariat of the Chairman of the Board of Directors of JSC
Russian Grids
leading expert of the Department of state regulation of tariffs infrastructural
reforms and energy efficiency of the Ministry of Economic Development of Russia
Deputy Director for Social Projects branch of Non-Profit Autonomous
Organisation Agency for Strategic Initiatives
Former members of the Audit Commission held no shares in Federal Grid Company and held no positions in the Company’s governing bodies.
Remuneration of the Audit Commission members
The amount of and the procedure for
paying remuneration and compensation
to the members of the Audit Commission
of Federal Grid Company are established
by the Regulations on Remuneration and
Compensation to Members of the Audit
Commission of Federal Grid Company ap-
proved by the General Meeting of Share-
holders on 30 June 2008.
The total remuneration paid to the mem-
bers of the Federal Grid’s Audit Com-
mission in 2014 amounted to RUB324.0
thousand.
Auditor
Federal Grid Company annually engages an external independent auditor to perform a statutory audit of its RAS and IFRS financial
statements.
Auditor Selection Process
Tendering
Commission
Audit
Committee
Board of
Directors
General Meeting
of Shareholders
Evaluates bids
submitted by audit
organisations and
selects a winner of
open tender
Evaluates a
candidate for
the position of
the Company’s
auditor and makes
recommendations
to the Board of
Directors
Members of the
Committee sit
in the Tendering
Commission
Approves an
external auditor
Makes a decision
on the proposal
of a candidate for
an approval of the
General Meeting of
Shareholders
On 27 June 2014, the General Meeting of
Shareholders approved RSM Top-Audit
LLC (renamed RSM RUS LLC on 20 August
2013) to conduct an independent audit of
the Company’s accounting statements
prepared under RAS, and the consolidat-
ed financial statements prepared under
IFRS. RSM RUS LLC is a full member of
the leading international auditing and
consulting organisation RSM Internation-
al and a member of the self-regulatory
organisation of auditors, Non-Profit
Partnership Auditor Association Sodru-
zhestvo.
The candidate for the position of the Com-
pany’s auditor was proposed based on the
results of the open tender conducted un-
der the Federal Law “On Placing Orders
for Goods, Works and Services for State
and Municipal Needs” No. 94-FZ dated 21
July 2005.
We used the selection criteria that are
provided by the above mentioned Law and
the Russian Government Resolution No. 722
dated 10 September 2009 “On the Rules for
Evaluating Bids under Tenders for Procure-
ment of Goods, Works and Services”.
In the execution of the decision made by
the Federal Grid’s Board of Directors on
30 December 2014 (Minutes No. 245 dated
31 December 2014), JSC Russian Grids
will conduct a centralised procurement of
services on performing a statutory audit
of the Federal Grid’s accounting state-
ments prepared under the Federal Law
No. 402-FZ dated 06 December 2011 ”On
Accounting”, and IFRS consolidated finan-
cial statements of Federal Grid Group, for
2015, 2016 and 2017.
Auditor Remuneration
The amount of remuneration of the Auditor RSM RUS LLC paid for the auditing the Company’s financial statements under RAS and
IFRS for 2014 was RUB13,887.5 thousand including VAT.
During the reporting period, the external auditor did not provide any non-audit services to the Company.
104
105
CORPORATE GOVERNANCE / GOVERNANCE SYSTEM CONTROL SYSTEM
INTERNAL CONTROL AND RISK
MANAGEMENT SYSTEM
Comprehensive Approach to Control
and Risk Management
The internal control and risk management
system of Federal Grid Company is an
important component of the Company’s
governance system. It includes a set of
procedures, methods and tools used by
the authorised bodies and employees and
aimed at obtaining reasonable assurance
that the Company achieves its objectives in
the following areas:
• Effectiveness and efficiency of activity
arrangements
• Compliance with applicable legislation
and internal regulations of the Company
• Prevention of illegal actions of employ-
ees and third parties with respect to the
Company assets
• Accuracy, completeness and timeliness
of all types of the Company reporting.
To ensure the effective operation of the
internal control system (ICS) in compliance
with the best international practices, the
Board of Directors approved the Regula-
tions on Internal Control System of Federal
Grid Company (Minutes No. 170 dated 3
August 2012).
management system is to reduce risks to
an acceptable level set by the Company’s
Management Board. Federal Grid’s Risk
Management Policy is aimed at improv-
ing the Company’s short and long-term
performance, as well as ensuring the
sustainable and continuous operation
and development of the Company through
the timely identification, assessment
and treatment of risks that threaten its
efficient economic operation and good
standing, the health of its employees, the
environment and the property interests of
shareholders and investors.
The Procedure for Applying the Risk Man-
agement Policy provides for the following
risk response strategies (risk manage-
ment practices):
The above Regulations set the objectives,
tasks and operating principles of the Inter-
nal Control System, as well as the struc-
tural components of the internal control
framework including the risk management
system. According to the Regulations, the
risk management system includes:
• analysis of business processes aimed
to identify events that can negatively
affect the achievement of the Compa-
ny’s objectives;
• risk assessment with regard to their
significance and probability;
• Risk mitigation.
• Risk acceptance.
• planning of risk treatment actions.
• Risk transfer (for example, insurance).
Our risk management framework is
documented through a comprehensive
set of internal documents of Federal Grid
Company, including the Risk Management
Policy and the Procedure for Applying the
Risk Management Policy.
In accordance with the Risk Manage-
ment Policy, a major objective of the risk
• Risk aversion.
• Combined strategies.
The choice of risk response strategy is
within the competence of an appropriate
risk owner. Strategy types (risk manage-
ment practices) shall be approved by the
Company’s Management Board.
Roles and Responsibilities of the Participants of the Internal Control System
Audit Commission
• Confirms the reliability of data contained in the Company’s annual report, accounting balance sheet, and
profit and loss statement; performs audits of the Company’s financial and operational activities
Board of Directors
Audit Committee
• Builds up the Internal Control System, sets its policy and monitors performance of the ICS, considers
results of the internal control, performs regular evaluation of the ICS’s effectiveness and ensures
constant improvement of the internal control procedures
• Carries out reviews of the Company’s Internal Control System, develops recommendations to the Board
of Directors on its further improvement; plans the internal audit schedule and considers audit results;
performs the Company’s financial statement analysis and the analysis of the external audit results;
assesses candidates for the position of the Company’s auditor, develops recommendations to the Board
of Directors regarding the appointment of external auditors, the conduct of annual independent audit and
external auditors’ fees
Chairman of the Management
Board
• Provides organisational support and scheduling of internal controls, makes decisions based on the
outcomes of the controls; makes proposals to the Board of Directors regarding the improvement of
internal control procedures
Internal Control and Risk
Management Department
• Plans and performs audits of business processes, governance system, internal control and risk
management system, and organisation design of the Company and its subsidiaries and associates
• Plans and performs audits of financial and operational activities of the Company and its subsidiaries and
associates
• Plans and performs construction audit and review of projects within the Company’s investment
programme
• Analyses risks and operational and investment efficiency enhancement potentials in the course of long-
term planning of operating and investing activities.
• Organises effective internal control and risk management system, evaluates the effectiveness of risk
management in the Company and its subsidiaries and associates.
• Plans and conducts audit of information systems, identifies and assesses risks of IT Strategy
implementation and operation.
Other units that perform control
functions
• The Corporate Headquarters performs strategic, guidance and control functions subject to the
Company’s HR Management Policy
• Pursuant to the Order No. 180 dated 10 April 2014 “On the Organisational Structure of the Corporate
Headquarters”, members of the Management Board and Deputy Chairmen of the Management Board
perform activity-specific control functions with respect to the Federal Grid branches, subsidiaries and
associates
Owners of Control Procedures
• Organise and implement control procedures within business processes in accordance with job
descriptions and provisions of the Company’s regulatory and administrative documents
Roles and Responsibilities of the Participants of the Risk Management System
Management Board
• Considers and approves a Risk Matrix, Risk Summary and risk minimisation actions
Risk Owners
members of the Management Board, Deputy
Chairmen of the Management Board and the
Heads of the Company’s structural units
• Ensure efficient risk management including risk identification and assessment, and provision in the
budget and business-plans of the amounts required for financing the risk management actions
Owners of Control Procedures
Staff of the Company’s structural units
• Organise and implement control procedures within the business processes
• Identify and assess risks, plan and implement measures on reducing risk probability and/or risk
implications
Internal Control and Risk
Management Department
• Plans and performs internal audit of the risk management system
• Analyses risk factors and operational and investment efficiency enhancement potentials in the
course of long-term planning of operating and investing activities
• Organises the risk management system and evaluation of its efficiency
106
107
CORPORATE GOVERNANCE / CONTROL SYSTEM Internal Audit
Plans for 2015
The Federal Grid’s internal audit function
is performed by the Internal Control and
Risk Management Department (Internal
Auditor) in accordance with the Federal
Grid’s Internal Audit Guidelines approved
by the Internal Control Director.
In accordance with the professional
standards of the Institute of Internal Audi-
tors, the Programme has been developed
in the Company for assessing and improv-
ing the internal auditing, which establish-
es the procedure for ongoing monitoring,
periodic internal assessments (self-as-
sessments) and preparation for external
assessment of the performance of the
internal audit activity, and includes a set
of measures for developing the internal
audit, including:
• Changing organisational and functional
model
• Improving the internal audit procedures
• Stakeholder engagement
• Automation of the internal audit activity
• Maintaining qualification and developing
competencies of internal auditors
In addition, the above Programme
provides for drafting the Federal Grid’s
Internal Audit Policy with its further
approval by the Board of Directors. The
Policy should set, in accordance with the
Corporate Governance Code recommen-
dations, the internal auditor status within
the Company (including functional and
administrative reporting lines), scope of
activity (including the existing restric-
tions), and internal auditor rights and
obligations.
What important innovations
were implemented in 2014 in
the area of internal control of
Federal Grid Company?
Within the implementation of the
above Programme we have drafted
policies and guidelines such
as Internal Control Policy, Risk
Management Policy, and Internal
Audit Policy. The above drafts
cover the provisions of the Russian
Corporate Governance Code and new
requirements of the Listing Rules
of the Moscow Stock Exchange.
The Management Board and the
Audit Committee considered the
draft documents and recommended
them for approval by the Board of
Directors.”
“The successful delivery of the
Company’s long-term strategy
depends largely upon the
effectiveness of our internal control.
Therefore, in 2014 we developed a
Programme for enhancing the quality
of the internal control system. The
Programme includes measures
aimed at improving not only internal
control but also internal audit
function, risk management system
and control environment of business
processes.
Dmitry Shishkin
Internal Control Director
Member of the Management
Board of Federal Grid
Company
Highlights of 2014
• Internal assessment of the effective-
ness of the internal control system was
performed; the system weaknesses and
risks were identified. The results were
reviewed by the Audit Committee (Min-
utes No. 33 dated 28 November 2014).
• Review of the risk management system
was conducted within the preparation of
Key Risk Report 2013. Upon consideration
of the Report, the Management Board
made decisions aimed at improving the
efficiency of the risk management in the
Company (Minutes No. 1239 dated 06
June 2014).
Board of Directors and Risk Management in 2014
Upon the preliminary
consideration by the
Management Board and the
Audit Committee, the Board
of Directors approved the Key
Operational Risk Register
(Minutes No. 248 dated 27
January 2015). The Register
aims to integrate the risk
management system into the
business planning system of
Federal Grid Company, which
will be implemented in 2015.
When making efforts toward further
developing and improving the internal
control and risk management system we
will take into account the results of the
implementation of the assignments of
the RF President No. Pr-3013 dated 27
December 2014 and of the RF Govern-
ment No. ISH-P13-54 dated January 13
2015 on drafting a list of the Company’s
internal documents that regulate, among
other things, internal audit functions, risk
management system and quality control
system, as well as guidelines for drafting
the above documents and a schedule for
their approval.
Key Risk Factors and
Information about Risk
Management Actions
Level of risk
relevance
Risk relevance trend
in the reporting year
Critical
Higher relevance
Significant
Moderate
Lower relevance
Relevance unchanged
Risk
Risk Description
Risk Mitigation Actions (control procedures)
Industry risks
1 Tariff regulation
risks
Risk Relevance
and Its Trend
• The amount of investable funds in
the tariff was reduced relative to
the tariff sources of funds for the
Company’s Investment Programme
that has been taken into account
when tariffs for electricity
transmission were approved.
The reduction was caused by an
increased cost of debt
• Actual revenues from electricity
transmission services were lower
due to a changed order of payment
for services; this change had not
been taken into account when
tariffs were set
- Draft proposed changes to the corporate Investment Programme and the
structure of sources of financing and changes in the structure of tariff
decision in terms of tariff sources of financing for the corporate Investment
Programme.
- Draft and submit proposed amendments to laws and regulations on tariff
setting and on defining indicators that are used in setting the tariffs, including
proposals about the procedure of payment for electricity transmission services
by the customers (the way customers pay for the reserved maximum capacity)
and other changes.
- Given the current macroeconomic parameters, and in order to minimise the
impact of the abovementioned risks the Company is working on proposals to
include lost revenues (caused by a reduced volume of services and increased
costs of electricity transmission services via foreign energy systems) in the
gross revenues. These proposals will be submitted to the Federal Tariff
Service.
• The costs of electricity transmission
services via foreign energy systems
increased due to changes of foreign
currency rates
- Implement actions targeted at improving the efficiency of the Company’s
operations and investments, consistent implementation of the approved
parameters of RAB regulation and at drawing up well-balanced and
economically justified proposals about how to adjust and set these parameters.
• The actual average tariff on
- Improve the quality of budget planning and develop a system of budget
electricity transmission deviated
from the one that was included in
the business plan
control through improving the corporate Budget Code and integrating the
risk management processes in the system of medium-term and long-term
business planning.
108
109
CORPORATE GOVERNANCE / CONTROL SYSTEM Risk
Risk Description
Risk Mitigation Actions (control procedures)
Risk
Risk Description
Risk Mitigation Actions (control procedures)
2 Risks related to
technological
connection
Risk Relevance
and Its Trend
• Risks related to the untimely
meeting of contractual obligations
under contracts for technological
connection, including deviation
of the actual quality level of the
technological connection services
from the level established during
tariff regulation. The quality level
is measured as per Section 3 of
Executive Order No. 718 dated
14 October 2013, issued by the
Ministry of Energy, as the aggregate
impact by the quality parameters
of reviewing applications for
technological connection; execution
of contract for technological
connection, compliance with the
antimonopoly legislation and the
quality of customer service
Federal Grid Company’s Management Board approved the Programme for
Improving the Efficiency of Technological Connection to Electric Grids of Federal
Grid Company and Increasing Transformer Capacity Utilisation. It includes
actions targeted at initiation of amendments to the Russian laws (law-making)
and organisational actions.
Law-making activities in the context of these risks include the drafting of
proposed amendments to laws and regulations that govern relations of the
parties in the process of technological connection (including those that regulate
the fundamentals of pricing when individual tariffs for technological connection
are set) and responsibility of grid organisations and counterparties for complying
with the material terms and conditions of contracts for technological connection.
These proposals are to be communicated to the regulators (the Federal Tariff
Service and Ministry of Energy).
Institutional actions of the Programme are targeted at improving the efficiency of
Federal Grid’s operations when the Company provides technological connection
services if tariff sources of financing are insufficient, including:
- Drafting and implementation of template documents in order to unify the
document flow in the process of technological connection of customers
- Actions to increase capacity utilisation by identifying equipment which is
• Insufficient sources of financing of
technological connection operations
not consistent with UNEG criteria and by identifying and decommissioning
inefficient capacities
3 Risks related
to an increase
of overdue and
bad accounts
receivable
• Deviation of overdue accounts
receivable for electricity
transmission services from the
amount established in the business
plan
Risk Relevance
and Its Trend
- Drafting of template case proposals about consumer co-financing of
operations related to technological connection, except the fee for technological
connection (upon agreement with the customers)
- Setting of schedules for completion of procedures by the Company’s structural
units and implementation of actions to improve control over scheduled
deadlines at all stages of business process, from registration of an application
for technological connection to full performance of contractual obligations
Information about transformer capacity which is free for technological connection
of customers and generation facilities in all main substations is monitored and
updated in order to make it more transparent; this information is made available
on the corporate website.
In order to mitigate risks related to an increase of overdue and bad accounts
receivable the Company approved the Receivables and Payables Management
Procedure. It establishes the procedures of taking decisions about accounts
receivable by contract managers. Besides, the Receivables and Payables
Management Committee has been established and is operating. Its goals are to
make cash management in the Company more efficient, manage risks related
to overdue accounts receivable and payable, and improve cash turnover. The
Committee responsibilities include but are not limited to the following issues:
- Review aggregate reports about the status of accounts payable and receivable
and explanatory notes of contract managers
- Take decisions about ways of recovering accounts receivable that have been
overdue for more than three months and accounts receivable that were
submitted for the Committee’s decision by contract managers
- Take decisions to write off bad debt
- Selectively assess the performance of employees who manage accounts
payable and receivable
Take decisions that proposals about disciplinary measures against delinquents
should be brought for approval by the Chairman of the Management Board in
cases when the procedure of handling overdue accounts payable and receivable
is breached.
Country and regional risks
Unexpected political events in
2014 include the government crisis
in Ukraine, followed by armed
hostilities in that country and
increased tensions in relations
between Russia and the USA and
many EU members. Economic
sanctions against Russia brought
about substantial deterioration on the
capital and bank debt markets, and
could cause problems with entering
into new contracts with companies
from these countries. The overall
economic environment also changed
unexpectedly in 2014. The most
significant changes were a rapid drop
in oil prices and devaluation of the
ruble on the background of rising
inflation. In the context of (and, to
some extent, in relation to) political
developments these changes began
making a moderate financial effect on
the Company’s operations toward the
end of the reporting year.
The combined impact of political and
economic factors brought about a
regulatory risk. Tariff decisions taken
in 2014 resulted in a decline of the
Company’s revenues.
Federal Grid Company has a
distributed network of structural
units, and its assets are located on
the whole territory of the Russian
Federation. Therefore, risk factors
for the Company are distribution of its
facilities and their remoteness from
repair stations, as well as a possible
impact of natural events on these
facilities
4 Risks related
to the political
and economic
situation in the
country and
region
Risk Relevance
and Its Trend
Impact of political
factors
Impact of economic
factors
5 Risks related to
the geographical
characteristics
of the country or
region, including
an increased
risk of natural
disasters
and possible
discontinuation
of transport
services
Risk Relevance
and Its Trend
In order to mitigate the impact of country and regional risks the Company
approved an Anti-Crisis Programme and cost-cutting programmes in operational
areas.
Besides, it drafted a Long-Term Development Programme of Federal Grid
Company for 2015-2019 with a forecast though 2030. The Programme was
approved by the Board of Directors and previously approved by the Government
of the Russian Federation on 25 September 2014. The Log-Term Programme
priorities are to improve the efficiency of Federal Grid’s operations, reduce
operational costs by 25% by 2017 and investment costs by 30% relative to the
2012 level, improve reliability of electric power supply and implement projects
that are important for the national economy.
While drafting the Long-Term Programme, the Company analysed risks
that might affect its operations. It intends to monitor and assess these
risks continuously. The Long-Term Programme also includes a set of risk
minimisation measures.
Federal Grid Company operates in compliance with the Unified Technical Policy
of the Electric Grid Complex that was approved by the Board of Directors of JSC
Russian Grids (Minutes No. 138 dated 23 October 2013) and put in place as the
Company’s internal document by a decision of Federal Grid’s Board of Directors
dated 27 December 2013 (Minutes No. 208 dated 27 December 2013).
The aim of the Unified Technical Policy is to identify the key technical areas that
enhance the electric grid complex’s reliability and efficiency in the short and
medium terms with an appropriate industrial and environmental safety based on
innovative principles that provide non-discriminatory access to electric grids for
all market participants. This includes:
- An increased number of offroad vehicles and use of air drones in the process
of operating the overhead lines and arranging post-accident inspections
- Higher readiness for repair and recovery works
110
111
CORPORATE GOVERNANCE / CONTROL SYSTEM Risk
Risk Description
Risk Mitigation Actions (control procedures)
Risk
Risk Description
Risk Mitigation Actions (control procedures)
Financial risks
Legal risks
6 Liquidity risk
Risk Relevance
and Its Trend
This risk is related to possible losses
that may be caused by the Company’s
inability to meet its obligations in full
due to the following factors:
• CBR’s monetary policy
• Exchange rate fluctuations
• Changes of interest rates
• Inflationary pressure
In order to meet its targeted metrics, the Company is implementing an Action
Programme (“road map”) to ensure financial sustainability and enhanced
economic efficiency of Federal Grid Company in 2014-2015, including a package
of anti-crisis actions approved by the Management Board (Minutes No. 1263/2
dated 10 October 2014). The goals of this Programme are to achieve the best
balance between objectives of the Company’s investment growth, the level of its
shareholder value and profitability; ensure financial sustainability; and conduct
efficient and high-performance business operations.
The Company approved priority objectives of its financial and economic policy for
2015 and outlined key implementation mechanisms.
In 2014, the Company developed and implemented actions that are included
in the programmes and have an impact on the outcomes of the Company’s
operations. These include:
- Investment Efficiency Programme which envisages a reduction of investment
costs
- Programme for Substitution of Imported Equipment, Technologies, Materials
and Systems for 2015-2019
- Maintenance and Repair Costs Efficiency Programme
- Payroll Efficiency Programme
- Programme for Improving Efficiency of Technological Connection to Federal
Grid’s Electric Grids and Increasing Utilisation Ratio of Transformer
Capacities.
The Company also implements other actions to minimise the financial effect of
the abovementioned factors:
- It continuously monitors and manages risks related to changes of the
regulatory framework (this is done by departments of finance and economy)
- It takes actions to improve management of the Company’s working capital
and ensure profit from cash flow, including via stronger financial discipline
of counterparties. The Company also implements its policy which envisions
gradual reduction of advances paid to contractors
- Federal Grid Company handles claims and bad debt recovery, and manages
accounts receivable in order to reduce overdue accounts receivable or prevent
their accumulation by counterparties.
- The Company drafts proposals for the federal executive authorities on how
to change the process of calculation of fines for untimely fulfillment of
contractual obligation (the CBR key rate should be used for this purpose
instead of the CBR refinancing rate)
- The Company conducts negotiations with entities that provide cross-border
electricity transmission services (Kazakhstan, Belarus, the Baltic countries).
The aim of these negotiations is to achieve an agreement not to increase the
cost of transit due to exchange rate changes and synchronyse the parameters
of tariff indexation between the countries
- The Board of Directors established a foreign currency limit on FX transactions
in order to control operations in foreign currency
7 Legal risks
Risk Relevance
and Its Trend
These are risks related to changes
in legislation and to regulation of
Federal Grid’s operational areas,
including but not limited to:
• relations with other owners of
UNEG facilities;
• calculation of the justified value of
maximum capacity for technological
connection of applicants;
• the procedure for defining the
declared capacity to be used
for setting of the electricity
transmission tariffs and calculation
of service costs;
• technological connection to the
Company’s facilities having voltage
below 110 kW;
• coordination of electricity market
participants’ programmes for
development of the electric power
industry in the longer term;
• customers’ liability for the untimely
payment for services;
• relations with the third parties in
technological connection.
• Risks related to public law and
pertaining to:
• changes of court practices on
issues related to the Company’s
operations;
• balance of interests with other
entities operating in the electric
power industry
The Company continuously contributes to the drafting of rules and regulations at
the federal level, takes part in the work of inter-ministry panels on the regulation
of the electric power industry, and cooperates with the relevant committees of
the Federal Assembly of the Russian Federation. The following actions were
taken in the reporting year as part of this work:
- Federal Grid Company drafted proposed amendments to the Federal Law “On
Electric Power Industry” (about relations with other owners of UNEG) and
submitted them to the Russian Ministry of Energy
- Federal Grid Company offered proposals to the draft Government resolution
about introduction of “power grid reserve capacity” and using this concept in
calculations, and submitted them to the Russian Ministry of Energy. Another
proposal was to include full costs (including the costs of enhancement /
development of the existing electrical grid network) in the fee for technological
connection and extend this principle to all applicants for technological
connection
- Based on the Company’s proposals, the Ministry of Energy is drafting
a Government regulation on extending the list of exceptional cases of
technological connection to federal Grid’s facilities
- The Company contributes to federal executive authorities’ rule-making and
methodological work on defining a mechanism for the approval and adjustment
of investment programmes run by the electric power industry entities with due
regard of the need to comply with the Government Regulation No. 132 dated 16
February 2015 (on amending Resolution No. 977)
- Federal Grid’s position on balancing the interests of electric power entities was
communicated to the State Duma.
The Company monitors the key trends in court practices pertaining to its main
operational areas. In the reporting period, there were no changes in the court
practices on issues related to Federal Grid Company’s core business that could
have a significant adverse effect on its performance and on the outcomes of court
trials in which the Company is a party.
Risks related to Federal Grid’s operations
8 Operational and
technological
risk
Risk Relevance
and Its Trend
This risk is related to high physical
wear and obsolescence of electricity
grid assets, violations of service
conditions and operational regimes
of electric grid equipment, damages
of equipment, wrong performance of
relay protection of automatic controls
and automatic emergency response
system, the use of inefficient and
obsolete technologies and failure to
implement the repairs programme
in full.
System-wide interruptions in
performance and failures to supply
electricity to customers, either due
do equipment failures or to natural
disasters could eventually cause
significant economic and reputational
losses for the Company.
Besides, they could affect the volume
of losses in its electric grids.
Federal Grid Company operates in accordance with the regulation on the Unified
Technical Policy in the Electric Grid Complex. The aim of its implementation is
to enhance the electric grid complex’s reliability and efficiency in the short and
medium terms with an appropriate industrial and environmental safety based on
innovative principles of development.
Implementation of the corporate Investment Programme, which includes projects
(including those that are part of the programme of renovation and comprehensive
refurbishment of facilities) that aim to achieve the following goals:
• Reduce the degree of wear of fixed assets
• Renovate electric grid facilities
• Ensure delivery of capacity by power plants and reliability of cross-regional
electric power exchanges
• Upgrade switchgear equipment; upgrade and develop automated process
control systems
• Improve grid manageability and observability; clear the routes for overhead
transmission lines (OHTLs)
• Improve energy efficiency
– Expand the pool of backup electric power sources, vehicles and special-
purpose machinery for post-accident repairs
– Implement an action plan to prevent an increase of accident rate at high-
voltage lines and substations
– Maintain the existing number of repair employees that provide maintenance
and repair of substations and high-voltage lines
– Sign contracts for the servicing of substation equipment with the producers of
electrical equipment
– Educate, oversee and certify employees who operate process equipment
– Conduct emergency response drills and onsite inspections in the Company’s
branches
– Implement the Property Insurance Coverage Programme
– Oversee operational and technological risks via technical oversight and
maintaining the quality of construction control which is exercised by the
Technical Supervision Centre as Federal Grid’s branch
– Operations of permanent duty teams in the regions. These teams are to
conduct emergency and recovery work at the grid facilities. Establish
emergency reserve of equipment
See details in Sections: Improving Reliability (p. 27) / Investing Activities (p. 41)
112
113
CORPORATE GOVERNANCE / CONTROL SYSTEM Risk
Risk Description
Risk Mitigation Actions (control procedures)
9 Investment risk
Risk Relevance
and Its Trend
Failure to meet the parameters of
the Investment Programme which is
approved by the Ministry of Energy
and taken into account in tariff
decisions results in a decline of gross
revenues when tariffs are adjusted
for the upcoming period of regulation
(in accordance with the RAB-based
regulation methodology).
Resolution No. 159 of the Government
of the Russian Federation (dated
27 February 2013) “On Making
Amendments to the Rules of Approval
of Investment Programmes of
Electricity Sector Facilities with State
Participation, and Grid Organisations”
became effective. This Resolution may
expose the Company to risks because
facilities that are not included in the
regional plans may be excluded from
this Investment Programme.
Actions to enhance federal Grid’s investments are implemented as part of the
following programmes:
- Investment Efficiency Programme (reduction of investment costs)
- Programme for Substitution of Imported Equipment, Technologies, Materials
and Systems for 2010-2014 and 2015-2019.
- Programme for Improving the Efficiency of Technological Connection to
Federal Grid’s Electric Grids and Increasing Transformer Capacity Utilisation
Besides, the Company:
- Discusses issues of energy policy, reliability of electric power supply and its
costs with the government bodies and public organisations
- Implements measures toward fulfillment of an Action Plan (“road map”) to
establish and develop mechanisms of public control over natural monopolies
(in which the power consumers will take part), as approved by Directive No.
1689-r of the Government of the Russian Federation (dated 19 September
2013)
- Implements an anti-corruption policy in order to avoid exposures to fraud in
procurement during implementation of the Investment Programme; actions
are taken to assess the good faith and reliability of counterparties
See details in Sections: Investing Activities (p. 41) / Procurement (p. 33) /
Anti-Corruption Activities (p.115)
Tariff risks
Investment risk
Risks related
to technological connection
Risks related to an increase
of overdue and bad accounts
receivable
Operational and
technological risk
Legal risks
Moderate
Significant
Critical
Liquidity risks
Risks related to the geographical
characteristics of the country or region
ANTI-CORRUPTION ACTIVITIES
Fighting Corruption Effectively
We consider corruption to be one of the
systemic threats to the stability and reli-
ability of the Company’s operations, and
fighting corruption is among the priority
tasks of the Long-term Development
Programme of Federal Grid Company. Our
anti-corruption activities aim to design
and implement consistent measures to
prevent corruption, eliminate or minimise
its root causes and conditions, to build a
zero tolerance attitude among employees,
governing bodies, shareholders, invest-
ment community and counterparties
towards corruptive practices.
Principles and Tasks of the Anti-Corruption Policy
of Federal Grid Company
The implementation of our Anti-Corrup-
tion Policy is based on principles which
are in line with the best Russian and
international anti-corruption standards
and practices.
Following changes in anti-corruption
legislation in 2014, the Board of Directors
approved a new version of the Anti-Cor-
ruption Policy of Federal Grid Company.
Main principles
Main tasks
• Full compliance of Anti-Corruption Policy with
• To ensure compliance with the requirements of
applicable legislation and generally accepted rules
• Strict observance of rights and legitimate interests
of employees, partners and counterparties when
implementing anti-corruption measures
Article 13.3 of the Federal Law “On Anti-Corruption”
and other laws and regulations in the anti-corruption
area
• To perform compliance control, including anti-
• A “tone at the top” set by senior managers and
corruption compliance control
directors when creating a culture of zero tolerance
towards corruption and building an anti-corruption
system
• Employee involvement in the design and
implementation of anti-corruption standards and
procedures
• To establish an effective legal mechanism to prevent
and fight corruption
• To establish an effective mechanism for
implementing measures to prevent and fight
corruption
• To prevent corrupt practices and to ensure liability
• Proportionality of anti-corruption procedures and
for corruption offences
corruption risks
• Liability for corruption of all employees irrespective
of their position, length of service or other conditions
• Continuous control over, and regular monitoring of,
the effectiveness of anti-corruption standards and
procedures
• To build awareness and uniform understanding
among employees, shareholders, members of
the governing and control bodies, partners and
counterparties of the Company’s position of zero
tolerance towards corruption in all its forms and
manifestations
• To minimise the risk of the Company’s involvement in
corrupt activities
Risks related to the political
and economic situation
in the country and region
Implementation of the Anti-Corruption Policy in 2014
In the reporting year, there were several areas we focused on in further implementation of the Anti-Corruption Policy of Federal Grid Company.
Automation of activities
• In order to computerise the process of
counterparty verification, we designed
and commissioned a specialised infor-
mation retrieval system that performs
an automatic verification in government
databases.
• We conducted training videoconferences
for the staff of the Corporate Headquar-
ters and branches devoted to anti-cor-
ruption activities, transparency of the
Company’s business and operations of
the related computer-aided systems.
114
115
CORPORATE GOVERNANCE / CONTROL SYSTEM Anti-Corruption Measures
• In order to implement the assignments
of the Russian Government aimed at
ensuring transparency of financial and
operational activities of Federal Grid
and its subsidiaries and associates, we
reported monthly to the Russian Min-
istry of Energy, the Federal Financial
Monitoring Service (Rosfinmonitoring)
and the Federal Tax Service of Russia
all information on the contracts made,
including the chain of ownership of our
counterparties; and performed moni-
toring of timely and proper fulfillment
of the above assignment of the Russian
Government.
• To examine how our employees per-
ceive corruption and understand the
The efficiency of anti-corruption
activities of Federal Grid Company
is achieved by strong teamwork of
all participants of anti-corruption
management structure
Depar tment of Operational
Control and Compliance
Internal Control
Director
organises activities that underpins
the implementation of the Anti-
Corruption Policy, monitors their
execution
coordinates
control functions
of the Company,
its branches,
subsidiaries and
associates
Economic effect
of anti-corruption
measures
in procurement
in 2014 is
RUB
440
mln
Board of
Directors
determines the Anti-
Corruption Policy
and monitors its
implementation
Chairman of the
Management
Board
is responsible for
organising the Anti-
Corruption Policy
implementation
General Directors
of branches,
subsidiaries and
associates
are responsible for
implementing the
Anti-Corruption
Policy in branches,
subsidiaries and
associates
Anti-Corruption Policy and to assess
the effectiveness of its implementation,
we organised a Company-wide employ-
ee survey.
• We monitored the Company’s requests
for payment under bank guarantees due
to the failure of its counterparties to
perform their contracts obligations. In
2014, 206 requests were submitted for
the total amount of RUB20.8 billion.
• Within the procurement activities in
2014, we performed an anti-corrup-
tion review of documents under 9,489
transactions, including procurement
procedures, followed by specific actions
aimed at preventing and/or compen-
sating losses and missed profit under
these transactions.
Central Commission for Compliance
with Corporate Ethical Standards
and Resolution of Conflict of
Interests
considers issues that relate to the
observance of the provisions of the Code
of Corporate Ethics and standards of
corporate conduct, as well as issues
relating to resolution of conflict of
interests
Development of anti-corruption activities in 2015
At the beginning of 2015, Federal Grid
Company joined the Anti-Corruption
Charter of the Russian Business. The
Official Certificate (No. 2041 dated 13
March 2015) was handed to the Federal
Grid’s representatives at the Interna-
tional Scientific and Practical Confer-
ence “Business and Government against
Corruption”, organised by the Chamber
of Commerce and Industry of the Russian
Federation, the United Nations Office on
Drugs and Crime, and the International
Anti-Corruption Academy.
Following changes in anti-corruption
legislation and the adoption of the new
Russian Code of Corporate Governance, in
2015 our Company plans to implement the
following measures aimed at improving
its anti-corruption activities:
• Participating in collective anti-corruption
initiatives
• Revising and improving the existing an-
ti-corruption policies and guidelines
• Developing a list of corruption risks and
procedures for their assessment
• Training employees on anti-corruption
procedures, applicable anti-corruption
legislation and relevant local regulations
• Implementing organisational, educational
and other measures promoting anti-cor-
ruption compliance among employees
• Establishing a procedure for specific
categories of officers to report on all gifts
received in connection with their official
position or performance of their official
duties.
116
SHARE CAPITAL
SHARE CAPITAL STRUCTURE
As of 31 December 2014, the charter cap-
ital of Federal Grid Company amounted to
RUB637,332,661,531 and 50 kop and was
divided into 1,274,665,323,063 ordinary
registered non-documentary shares with
a nominal value of RUB0.50 each. No
preferred shared were placed as of the
above date.
In accordance with the Company’s Arti-
cles of Association, the number of author-
ised shares is 72,140,500,768 ordinary
registered shares with a nominal value of
RUB0.50 each and a total nominal value of
RUB36,070,250,384. Authorised ordinary
shares offer the same rights as outstand-
ing ordinary shares.
On 20 February 2014, the additional
ordinary share issue was completed with
a price of RUB0.50 per share. During the
additional issue, 7,524,307,067 shares
(79.78% of the total number of securities
of the additional issue to be placed) were
placed. As a result of the placement, the
Company received funds in the amount of
RUB3.762 billion.
The Russian Federation, which was the
main participant in the additional is-
sue, acquired shares to the amount of
RUB3.756 billion. The remainder of the
outstanding shares, in the amount of
RUB6 million, was acquired by minority
shareholders. The Company has allocated
funds received from the additional issue
for constructing and commissioning elec-
tricity transmission lines to improve the
reliability of power supply in the Republic
of Sakha and Buryatia, as well as facilities
for the Winter Olympics in Sochi.
Share Capital Structure
The Company has more than 400,000
shareholders. The JSC Russian Grids,
which owns 80.6% of the share capital, is
the Company’s majority shareholder. The
Russian Federation, represented by the
Federal Agency for State Property Man-
agement (Rosimushchestvo), owns 0.59%
of the authorised capital.
In June 2013, JSC Russian Grids and
Rosimushchestvo signed a sharehold-
ers’ agreement regarding the managing
and voting in Federal Grid Company. The
parties have signed the agreement with
respect to all, present and future, voting
shares in Federal Grid Company.
The analysis of shareholder register,
annually performed by the Company to
improve interactions with shareholders,
identified the key groups of holders of
ordinary shares and depository receipts.
As of the end of 2014, the Company’s free
float was 18.2%. The main minority share-
holders of the Company are institutional
investors and holding structures, with
retail investors accounting for 3.36%.
Share Capital Structure of Federal Grid Company
E
E
A
B
C
D
E
A
B
C
JSC Russian Grids
JSC Russian Grids
80.13%
JSC Centerenergoholding
JSC Centerenergoholding
2.62%
Kopernik Global All-Cap Fund
Kopernik Global All-Cap Fund
1.62%
Index of Energy FGC UES LLC
Index of Energy FGC UES LLC
1.08%
Others
14.55%
D
Others
E
D
C
B
D
C
B
%
80.13%
2.62%
1.62%
1.08%
14.55%
Information is disclosed with the consent of the respective shareholders.
Federal Grid Company management is not aware of any shareholders that hold more
than 5% of the outstanding shares, other than those specified above.
The share of foreign institutional investors, including major funds, whose
assets under management exceed USD1 billion: Kopernik Global All-Cap
Fund, Vanguard International Equity Index Fund, MarketVectors ETF Trust
Russia ETF, BlackRock funds is
10,0%
0,0%
-10,0%
-20,0%
-30,0%
-40,0%
-50,0%
-60,0%
-70,0%
10,0%
0,0%
-10,0%
117
-20,0%
-30,0%
-40,0%
-50,0%
-60,0%
-70,0%
%
A
A
27%of free
float
A
B
C
Short-Term Investors
Short-Term Investors
Long-Term Investors
Long-Term Investors
Medium-Term Investors
Medium-Term Investors
A
B
C
4.1%
71.4%
24.5%
4.1%
71.4%
24.5%
C
C
A
A
%
%
B
B
ММВБ
Micex PWR
ММВБ
Micex PWR
ФСК
ФСК
-7,1%
-22,7%
-7,1%
-22,7%
-49,3%
-49,3%
1.5
1.0
0.5
0.0
1.5
1.0
0.5
0.0
30.12.13 31.01.14
30.12.13 31.01.14
28.02.14
31.03.14
28.02.14
30.04.14
31.03.14
30.05.14 30.06.14
30.05.14 30.06.14
31.07.14
30.04.14
29.08.14
31.07.14
30.09.14
29.08.14
31.10.14
30.09.14
28.11.14
31.10.14
30.12.14
28.11.14
30.12.14
Цена DR на LSE, USD
Цена DR на LSE, USD
Приведенная цена DR по итогам торгов на ММВБ
Приведенная цена DR по итогам торгов на ММВБ
300 000
250 000
200 000
150 000
100 000
50 000
0
300 000
250 000
200 000
150 000
100 000
50 000
0
02.01.14 03.02.14
02.01.14 03.02.14
03.03.14
01.04.14
03.03.14
01.05.14
01.04.14
02.06.14 01.07.14
02.06.14 01.07.14
01.08.14
01.05.14
01.09.14
01.08.14
01.10.14
01.09.14
03.11.14
01.10.14
01.12.14
03.11.14
31.12.14
01.12.14
31.12.14
CORPORATE GOVERNANCE / CONTROL SYSTEM JSC Russian Grids
JSC Centerenergoholding
Kopernik Global All-Cap Fund
Index of Energy FGC UES LLC
80.13%
A
B
C
D
E
A
B
C
D
E
JSC Russian Grids
JSC Centerenergoholding
Others
Kopernik Global All-Cap Fund
Index of Energy FGC UES LLC
Others
2.62%
1.62%
1.08%
14.55%
E
80.13%
2.62%
1.62%
D
1.08%
B
C
14.55%
E
D
C
B
%
A
%
A
Foreign Investor Breakdown
by Investment Horizons
A
B
C
Short-Term Investors
Long-Term Investors
Medium-Term Investors
C
4.1%
71.4%
24.5%
A
B
C
Short-Term Investors
Long-Term Investors
Medium-Term Investors
4.1%
71.4%
24.5%
C
A
A
%
B
%
B
STOCK MARKE T
ММВБ
ММВБ
Shares of Federal Grid Company are
traded on the “Level 1” quotation list of
the MICEX Stock Exchange, which is a
member of JSC Moscow Exchange Group,
and are included in the list of securities
traded at the St.Petersburg Exchange.
The Company shares are included in the
index calculation base of key Russian and
foreign indices.
Micex PWR
Micex PWR
Federal Grid’s Share
Information
ФСК
Federal Grid’s Share Weighting
in Key Share Indices, %
ФСК
Share category
Nominal value
MICEX Ticker
SPBEX Ticker
LSE Ticker
ISIN
Ordinary
registered non-
documentary
MICEX Index
MicexPWR
RUB0.50
RTSI
-7,1%
-22,7%
FEES
-7,1%
FEES
FEES
-22,7%
Russian Traded
Index (Vienna Stock
Exchange)
The RTX Energy
(Vienna Stock
Exchange)
-49,3%
RU000A0JPNN9
Bloomberg Code
FEES RX
(as of 31 December 2014)
-49,3%
0.19
10.76
0.19
0.20
13.56
In 2014, electricity industry equities
were major underperformers – the Micex
PWR sector index went down by 22.7%.
The industry indicator declined quicker
than the MICEX Index, largely due to low
investment attractiveness of companies
in the industry against the background
of restraining tariff policy, including zero
indexation of tariffs in 2014.
• Slowdown in Russia’s economic growth,
ruble devaluation, inflation rate, af-
fecting the attractiveness of internal
market-oriented companies
• USA and EU sanctions against Russia
that have affected credit ratings and
outlooks of the Russian Federation and
the State-owned companies
settlements with consumers based on
actual capacity
• Uncertainty with the recovery of costs
for technological connection by gener-
ating companies
• The sharp rise in funding costs
In 2014, Federal Grid Company’s shares
lost 49.3%, underperforming the Micex
PWR sector index. The following factors
had an additional adverse impact on the
Company’s shares:
• The need to implement a large-scale
investment programme under tariff
restraints
• Regulator’s proposals to switch to
• Exclusion of the Company’s shares from
the MSCI Russia index in June 2014
Key Parameters of Federal Grid Company Share Trading
Volume
Number of deals
Low
High
Period end
units
RUB
units
RUB
RUB
RUB
2011
2012
2013*
2014
476,111,513,800
619,919,120,000
989 348 930 000
1,068,425,610,000
159,370,754,044
147,513,331,183
116,812,022,883
65,320,385,915
2,043,606
2,698,318
3,235,854
2,390,457
0.21111
0.481
0.2811
0.1513
0.3768
0.20104
0.07508
0.226
0.09016
Number of shares
mln, shares
1,255,948
1,260,387
1,267,141
Capitalisation at year end
RUB, mln
351,163.1
253,904.89
114,600.23
* T+2 trade results are calculated from 2 September 2013 – date of Moscow Exchange’s switch to this trading mode as a basic one.
0.02900
0.09389
0.04402
1,274,665
56,110.77
30.12.13 31.01.14
28.02.14
31.03.14
30.04.14
30.05.14 30.06.14
2014 Share Performance
29.08.14
31.07.14
30.09.14
31.10.14
28.11.14
30.12.14
Source: Moscow Exchange website, / moex.com
30.12.13 31.01.14
28.02.14
31.03.14
30.04.14
30.05.14 30.06.14
Global equity markets closed mixed in
2014: the index of developed countries MSCI
30.09.14
29.08.14
World has increased by 2.9%, while the in-
dex of emerging MSCI EM declined by 4.6%.
31.07.14
In the reporting year, the Russian market
lost 7.1% under the MICEX index, which is
31.10.14
30.12.14
28.11.14
looks worth than MSCI World and MSCI EM
behaviour. The main negative factors for the
Russian market were a sharp decline in oil
prices in the second half of the year (as of
the end of the year Brent Oil quotes fell by
48%) and economic sanctions of Western
countries against Russia.
Цена DR на LSE, USD
Приведенная цена DR по итогам торгов на ММВБ
Electricity Sector, Federal Grid Company’s shares
Цена DR на LSE, USD
Приведенная цена DR по итогам торгов на ММВБ
0.0%
10.0%
–10.0%
–20.0%
–30.0%
–40.0%
–50.0%
1.5
1.0
0.5
0.0
–7.1%
–22.7%
–49.3%
1.5
1.0
0.5
02.01.14 03.02.14
03.03.14
01.04.14
01.05.14
02.06.14 01.07.14
–60.0%
01.08.14
01.09.14
01.10.14
03.11.14
01.12.14
31.12.14
02.01.14 03.02.14
03.03.14
01.04.14
01.05.14
02.06.14 01.07.14
01.08.14
3
1
.
2
1
.
0
3
4
1
.
1
0
.
1
3
01.09.14
4
1
.
2
0
.
8
2
01.10.14
4
1
.
3
0
.
1
3
4
1
.
4
0
.
0
3
03.11.14
–70.0%
4
1
.
5
0
.
0
3
4
1
.
6
0
.
0
3
4
1
.
7
0
.
1
3
01.12.14
31.12.14
4
1
.
8
0
.
9
2
0.0
4
1
.
9
0
.
0
3
4
1
.
0
1
.
1
3
4
1
.
1
1
.
8
2
4
1
.
2
1
.
0
3
Plans to improve investment attractiveness
Implementation of measures aimed at maintaining and improving the investment attractiveness of Federal Grid Company is one of
the priorities of our financial and eco-
nomic policy for 2015 and includes the
following:
map’) on introducing key provisions of
the new Russian Corporate Governance
Code
2015, updating the dividend policy, the
delivery of the Long-Term Development
Programme
• With respect to corporate governance,
implementing an action plan (‘road
• With respect to financial and economic
activity, ensuring the Company’s oper-
ating profitability at a level not below
the target value, implementing the Pro-
gramme for ensuring financial stability
and increasing economic efficiency of
the Company’s operations for 2014-
• With respect to our investment pro-
gramme, improving the efficiency of
investing activities through the invest-
ment cost optimisation under tight
liquidity conditions, revising volumes
and sources of financing
Micex
MicexPWR
FGC UES
118
119
10,0%
0,0%
-10,0%
-20,0%
-30,0%
-40,0%
-50,0%
-60,0%
-70,0%
300 000
250 000
200 000
150 000
100 000
50 000
0
10,0%
0,0%
-10,0%
-20,0%
-30,0%
-40,0%
-50,0%
-60,0%
-70,0%
300 000
250 000
200 000
150 000
100 000
50 000
0
CORPORATE GOVERNANCE / SHARE CAPITAL Global Depository Receipt Programme
DIVIDEND POLICY
On 30 June 2008, Federal Grid Company
launched a global depository receipt (GDR)
programme, which was not listed under
Regulation S and Rule 144A. In 2011, the
Company completed a technical listing of
depository receipts on the Main Market of
the London Stock Exchange (LSE), which
began trading Federal Grid Company
GDRs on 28 March. From 1 July 2013, the
Programme’s depository bank is the Bank
of New York Mellon (BNY Mellon).
As of 31 December 2014, the GDR pro-
gramme had 8.7 million receipts, rep-
resenting 0.34% of the Company’s share
capital.
GDR Programme Volume
GDR Programme Highlights
Ratio
1 GDR : 500 shares
1 GRD : 500 shares
Regulation S
Rule 144A
International Code
Common Code: 036273577
ISIN: US3133542015
Common Code: 0362733372
ISIN: US3133541025
Price per GDR as of 31 December 2014
USD 0.79
-
-
-
Number of GDRs as of 31 December 2014
1,252,623
7,425,700
Our dividend policy strikes a balance
between shareholders’ interests, the
Company’s business needs, and the need
to enhance its investment attractiveness
and capitalisation.
All the dividend policy principles, mecha-
nisms for determining the size of div-
idends, procedure, period and form of
dividend payment are set in the Reg-
ulations on Dividend Policy of Federal
Grid Company approved by the Board of
Directors.
The General Meeting of Shareholders
resolves on dividend payment based on
recommendations of the Board of Direc-
tors with respect to dividend amount. The
recommended dividend payout amount is
determined by the Board of Directors on
the basis of the Company’s financial results
and, in accordance with the Dividend Policy,
shall not be less 10% of net profit under
RAS. The table below shoes the profit
distribution and dividend payment in ac-
cordance with the resolutions of the Annual
General Meetings of Shareholders:
2011 AGM (for 2010) – Minutes No 11
dated 4 July 2011
2012 AGM (for 2011) – Minutes No 12
dated 2 July 2012
2013 AGM (for 2012) – Minutes No13
dated 2 July 2013
2014 AGM (for 2013) – Minutes No 15
dated 30 June 2014
n
o
i
l
l
i
,
m
A
4
4
1
d
n
a
S
g
e
R
e
m
u
l
o
v
e
m
m
a
r
g
o
r
P
R
D
G
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
0.426%
s
t
p
i
e
c
e
r
12.0
11.0
10.0
0.327%
0.408%
0.408%
0.394%
0.382%
0.377%
0.377%
0.377%
0.334%
0.334%
0.340%
0.40
0.50
31.01.14
28.02.14
31.03.14
30.04.14
30.05.14
30.06.14
25.07.14
29.08.14
30.09.14
39.09.14
31.10.14
28.11.14
31.12.14
RegS
144А
Programme volume as a percentage of share capital, %
0.30
0.20
0.10
0.00
GDR Price and Trading Volume, LSE
%
,
l
a
t
i
p
a
c
e
r
a
h
s
f
o
e
g
a
t
n
e
c
r
e
p
a
s
a
e
m
u
l
o
v
e
m
m
a
r
g
o
r
P
2010-2014 Net Profit Distribution, RUB thousand
for 2010(2011
AGM)
for 2011(2012
AGM)
for 2012(2013
AGM)
for 2013(2014
AGM)
for the 1st
quarter of 2014
(2014 AGM)
Retained net profit (loss) for the reporting period:
58,088,388
- 2,468,359
- 24,501,917
- 25,897,521
1,210,472
Reserve Fund
For development
Dividends
Covering losses from prior years
2,904,419
18,578,192
2,577,664
34,028,113
-
-
-
-
-
-
-
-
-
-
-
-
-
-
436,803
-
2010-2014 Dividend History
for 2010(2011
AGM)
for 2011(2012
AGM)
for 2012(2013
AGM)
for 2013(2014
AGM)
for the 1st
quarter of 2014
( 2014 AGM)
s
t
p
i
e
c
e
r
,
e
m
u
l
o
v
g
n
d
a
r
t
R
D
i
300,000
250,000
200,000
150,000
100,000
50,000
0
4
1
.
1
0
.
2
0
D
S
U
,
e
c
i
r
P
1.5
1.0
0.5
0.0
Dividend per share, kop.
Total amount of dividends declared, RUB mln
Share of net profit allocated for dividends, %
Total paid, RUB mln
Paid to declared dividend ratio, %
0.21
2,577.7
4.44%
2,569.3*
99.67%
4
1
.
2
0
.
3
0
4
1
.
3
0
.
3
0
4
1
.
4
0
.
1
0
4
1
.
5
0
.
1
0
4
1
.
6
0
.
2
0
4
1
.
7
0
.
1
0
4
1
.
8
0
.
1
0
4
1
.
9
0
.
1
0
4
1
.
0
1
.
1
0
4
1
.
1
1
.
3
0
4
1
.
2
1
.
1
0
4
1
.
2
1
.
1
3
Deadline for paying accrued dividends
28.08.2013
DR trading volume, receipts
DR price on LSE, USD
Adjusted DR price at the end of trading on MICEX
No dividends were declared for 2011, 2012 and 2013.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.034
436.8
36%
434.8**
99.54%
20.08.2014***
* Dividends were paid in full to all shareholders registered in the Company’s shareholder register excluding the amount of RUB 8,383,793.57 to those shareholders who
had not timely informed about changes in their personal data or who had submitted incorrect payment details
** Dividends were paid in full to all shareholders registered in the Company’s shareholder register excluding the amount of RUB 1,969,379.12 to those shareholders who
had not timely informed about changes in their personal data or who had submitted incorrect payment detail.
*** For nominees the deadline for dividend payment is 20 July 2014.
120
121
CORPORATE GOVERNANCE / SHARE CAPITAL
2014
Dividends
Other shareholder income received
from the Company
In accordance with Clause 2 of Article 42
of the Federal Law “On Joint Stock Com-
panies” and Clause 7.5 of Article 7 of Fed-
eral Grid Company’s Articles of Associa-
tion, dividends shall be paid out from the
Company’s net income determined under
the Company’s accounting statements.
In 2014, the Company’s Annual General
Meeting of Shareholders will make a Res-
olution on the 2014 dividend payment will
be made by the Annual General Meeting of
Shareholders that will be held in 2015.
In 2014, Federal Grid Company and its
majority shareholder JSC Russian Grids
entered into service contracts for arrang-
ing operation and developing the electric
grid complex, as well as for providing
technical supervision of electric grid
facilities of Federal Grid Company. The
contracts were approved by the Federal
Grid’s Board as related-party transac-
tions (Minutes No 208 dated 27 December
2013 and Minutes No 211 dated 30 January
2014).
The total cost of services of JSC Russian
Grids is RUB609.4 million, including VAT
(18%). The period of services is from 1
January 2014 to 31 December 2014.
INFORMATION POLICY
Informational Openness
The corporate information policy of
Federal Grid Company is one of the key
instruments to ensure an extensive stake-
holder support of the Company’s activities
and to strengthen effective stakeholder
engagement.
Federal Grid provides prompt and full
disclosure of all material information,
including the financial and operating
results, ownership structure, notices of
material facts, and other information in
accordance with the legislative require-
ments and corporate governance best
practices.
When providing information to stakehold-
ers, the Company strictly observes the
rules for the handling of inside informa-
tion, trade secrets and other information
protected by law.
Regulations on Information Policy
The Regulations on Information Policy of
Federal Grid Company approved by the
Company’s Board sets the main principles
and provides a comprehensive company
framework for information disclosure.
In accordance with the Action Plan (‘road
map’) on implementing the Russian
Corporate Governance Code provisions,
it is expected to approve a new version of
the Information Policy in 2015. In particu-
lar, changes will be made in the list of
additional information which the Company
undertakes to disclose on its corporate
website.
2013 Annual Report of
Federal Grid Company
was among the winners
of the best Russian and
international competitions
• II position in the Annual Report
Rating of Expert RA rating agency
• Nomination in the “The Best Annual
• Gold winner in the “Annual Report/
Report (Non-financial Sector)” category
in the Expert RA competition
Utility” category of MarCom Awards
2014
• Platinum winner in the “Writing/Annual
Report”and”E-Communication/E-
Annual Report” categories of MarCom
Awards 2014
• «Silver award in the “Print: Annual
Report” category of The Spotlight
Awards competition
Public Relations
Federal Grid Company closely engages with
stakeholders on a regular basis, including
government authorities, public organisa-
tions and Mass Media. To implement the
Company’s policy in this area, a Department
of External Communications and Gov-
ernment Relations has been created and
operates actively.
An open discussion of the Federal Grid’s
Investment Programme for the years of
2015-2019 became one of the key events of
the reporting year. Thanks to publishing all
the necessary information on the Company
website experts and consumers had an
opportunity to familiarise themselves with
the draft Programme and to make propos-
als for its improvement. In February 2014,
the public hearing was successfully held at
the meeting of the RF Open Government,
and in November, the RF Ministry of Energy
approved the Federal Grid’s Investment
Programme for five years.
During the reporting year, quarterly meet-
ings of the Consumer Council were held
led by the Chairman of the Federal Grid’s
Management Board, Andrey Murov. They
discussed issues related to the implemen-
tation of the strategy of the Russian electric
grid complex, including the accessibility
of energy infrastructure, efficiency of the
Company’s operating and investing activi-
ties, its informational openness and public
control.
Meetings with foreign partners
Kazakhstan
During the meeting with Kazakhstan
Electricity Grid Operating Company
KEGOC an agreement was reached
to expand cooperation in the area
of parallel operation of the energy
systems in Kazakhstan and Russia.
Georgia
At the working meeting attended by
the Chairman of the Federal Grid’s
Management Board, Andrey Murov,
and the Vice-Prime Minister, the
Minister of Energy of Georgia, Khaha
Kaladze issues were discussed on
the cooperation between Federal Grid
Company, GruzRosenergo and INTER
RAO, potential construction of cross-
border electricity transmission line and
building an infrastructure to extend
electricity supply to Georgia and its
transit to third countries.
India
At the working meeting of Federal Grid
executives with the representatives
of Power Grid Corporation of India
Ltd. matters were considered on
engagement with the Russian
manufacturers of electrical equipment.
Finland
Several meetings were held between
the Federal Grid representatives
and a Finnish company Fingrid Oyj
and agreements were signed on
technological and organisational
aspects of two-way trade in electricity
between Russia and Finland.
Disclosure channels
In compliance with the principles of
timeliness and availability of disclosure,
Federal Grid Company uses various
disclosure channels, primarily electron-
ic, which ensure free and easy access to
information for all stakeholders without
any specific procedures (getting pass-
word, registration and other technical
restrictions).
We regularly update our corporate
website www.fsk-ees.ru which appears
to be our main disclosure channel. The
website presents data on the Federal
Grid’s areas of activity, information for
shareholder and investors, customers,
suppliers, and employees, the latest news
and press-releases, financial statements,
annual reports and reports on sustaina-
ble development.
In addition to mandatory disclosures,
our website contains other information
useful for stakeholders. We also strive to
improve the structure of this information
source by developing new interactive
tools for user convenience.
In addition to publishing significant
information on its website, the Company
discloses information on the website of
Interfax agency, on the home pages of the
Moscow Exchange, London Stock Ex-
change, and in the print edition of Rossi-
yskaya Gazeta, as well as disseminating
price-sensitive information through the
RNS portal.
Our annual and social reports appear to
be not less important tool for the Compa-
ny to communicate with its shareholders,
investors and other stakeholders. The re-
ports have links to the corporate website,
which ensure a common information area
where the users may easily navigate and
find what they are looking for quickly.
Participation in Forums and Conferences
In February, the Federal Grid delegation
took part in the 2014 Krasnoyarsk Eco-
nomic Forum, where the government of
Krasnoyarsk Krai, Federal Grid Company
and Polyus Gold Mining Company signed
a tripartite cooperation agreement on
implementation of the global project “Ang-
ar-Yenisey Cluster”.
The Chairman of the Management Board,
Andrey Murov, held a number of meet-
ings at the St. Petersburg International
Economic Forum, including with the heads
of the companies Schneider Electric and
ABB, and signed an agreement with the
Federal Service for State Registration,
Cadastre and Cartography.
In August 2014, Federal Grid took part
in the 45th Session of the International
Council on Large Electric Systems CIGRE.
During the forum, the Federal Grid Sci-
entific and Technical Center signed a few
agreements with the companies KEMA
and Alstom Grid and KEMA. Meeting were
also held with the companies Siemens and
Alstom Grid, where the matters were dis-
cussed on import substitution and imple-
mentation of joint projects on constructing
energy facilities.
At the International Investment Forum
Sochi-2014, the round tables were held
with participation of the Chairman of the
Federal Grid’s Management Board on the
role of Fuel and Energy Complex in the
Russian economy and the development of
Far East infrastructure.
In November, at the Third Internation-
al Forum on Energy Saving and Energy
Efficiency ENES 2014, Andrey Murov told
about the improvements in the Company’s
governance system, reduction of trans-
mission losses and new developments for
transmission facilities.
122
123
КОРПОРАТИВНОЕ УПРАВЛЕНИЕ / АКЦИОНЕРНЫЙ КАПИТАЛ INVESTOR REL ATIONS
Dialogue with Investment Community
Additional information
DISCL AIMER
Federal Grid Company is a public company,
one of the top blue chips of the Russian en-
ergy sector. Our IR Team strives to maintain
strong relationships with the investment
community, actively communicates with
analysts and investors.
Our main task in engaging with the invest-
ment community is to provide all community
representatives with accurate and up-to-
date information on the Company’s opera-
tional and financial performance, as well as
its development prospects.
We consider an active dialogue with the
investment community to be important also
for getting feedback from this audience,
to understand how certain decisions may
impact the investors’ assessment of the
Company, and how investors perceive the
Company, its strategy and operations.
In 2014, Federal Grid’s management held
a series of one-on-one meetings with in-
vestors in line with the Company’s policy on
improving investment attractiveness among
the financial market participants.
During the reporting year, the Company spe-
cialists held conference calls with investors
following the publication of the IFRS financial
statements for 2013 financial year and the
first half of 2014. The First Deputy Chairman
of the Management Board, Andrey Kazach-
enkov, who is responsible for financial mat-
ters in the Company, acted as a speaker.
In December 2014, the Chairman of the Man-
agement Board of Federal Grid Company,
Andrey Murov, held a meeting with investors.
At the meeting, Mr. Murov told investors
about the 2015-2019 electric grid complex
development strategy. The meeting was held
for the second time, and we expect them to
become a tradition.
IR Awards
In November 2014, our
Company was included in the
list of nominees for IR Society
Best Practice Awards 2014 in
the categories «Best Annual
Report» and «Best Use of
Digital Communications»
2015 Investor Calendar
Date
Event /Location
25 March
2014 Annual Results (RAS)
2-3 April
FY2014 Annual Financial Report (FSA), FY 2014 Financial Results
(IFRS)
April
Sberbank CIB Russia Investment Forum / Moscow
on or before 30 April Q1 2015 Financial Results (RAS)
19-20 June
St. Petersburg International Economic Forum 2015 / St. Petersburg
26 June
Annual General Meeting of Shareholders
on or before 30 July
H1 2015 Financial Results (RAS)
on or before 29
August
H1 2015 Financial Results (IFRS)
beginning of October VI VTB Capital Investment Forum RUSSIA CALLING / Moscow
on or before 30
October
November
Q3 2015 Financial Results (RAS)
Third meeting of the Chairman of the Management Board,
Andrey Murov, with investors / Moscow
This annual report (hereinafter – the Annual Report) was prepared
based on information available to Federal Grid Company and its
subsidiaries and associates at the time this Report was compiled.
“will be”, “continue” or similar words and expressions or varia-
tion thereon.
The Annual Report includes, among other things, statements re-
garding the Company’s future operations based on management’s
current forecasts and assessments. There are a number of objec-
tive factors that could cause actual results to differ materially from
the above forecasts and assessments.
The Annual Report contains certain forward-looking statements
regarding business operations, economic and financial indicators
of the Company, its business plans, projects and expectations.
The Annual Report may also contain estimates of price changes,
production and consumption volumes, costs, expenses, devel-
opment prospects and other similar factors, as well as forecasts
on industry and market development, beginning and end dates of
certain projects of the Company.
By their nature, forward-looking statements involve risks and un-
certainties, both general and specific, that may cause the relevant
assumptions, forecasts, projections and other forward-looking
statements do not materialise. In view of the above risks, uncer-
tainties and assumptions, the Company cautions that its actual
results may differ materially from those expressed or implied in
such forward-looking statements.
These statements are neither promises nor guarantees, and the
Company shall not be liable for any losses incurred by legal entities
and individuals who relied on forward-looking statements. Such
forward-looking statements represent, in each case, only one of
many possible scenarios and should not be viewed as the most
likely scenario.
Such forward-looking statements can be identified by the use of
the terminology such as “intend”, “strive”, “project”, “expect”,
“estimate”, “plan”, “anticipate”, “assume”, “may”, “could be”,
Except as required by applicable legislation, the Company does
not undertake any obligation to release publicly any updates and
revisions of such forward-looking statements whether as a result
of new information or future events.
CONTACTS
FGC UES, JSC
Company Auditor (RAS)
Open Joint Stock Company Federal Grid Company
of Unified Energy System
RSM RUS Limited Liability Company
(RSM RUS LLC)
Actual and postal address:
5A Academica Chelomeya
str., Moscow 117630,
Russia
Call centre:
8 800 200 1881
For calls from neighbouring countries
and beyond:
+7 (495) 710 9333
Fax:
E-mail
Website:
For shareholders:
Fax:
+7 495 710 9655
info@fsk-ees.ru
http://fsk-ees.ru
8 800 200 1881
+7 (495) 710 9641
Address:
Phone:
Fax:
E-mail
INN:
OGRN:
4 Pudovkina str., Moscow
19285, Russia
+7 495 363 2848
+7 495 981 4121
mail@top-audit.ru
7722020834
1027700257540
SRO Membership:
Full name: self-regulatory organisation Non-for-Profit
Partnership “Audit Association “Sodruzhestvo”
Address: 21/4 Michurinsky prospect, Moscow 119192, Russia
IR Team
Phone: 8 (800) 200-1881
Fax: +7 (495) 710-96-41
Egor Toropov
phone: 8 (800) 200-1881 ext. 2275
e-mail: toropov-ev@fsk-ees.ru
Alexey Novikov
phone: 8 (800) 200-18-81 ext. 2143
e-mail: novikov-as@fsk-ees.ru
124
125
125
CORPORATE GOVERNANCE / SHARE CAPITAL
Company Auditor (IFRS)
GLOSSARY
Abbreviations
Closed Joint-Stock Company KPMG (CJSC KPMG)
APCS
Automated Process Control System
According to the terms of the dealer agreement in respect
to the bond issue programme entered into by Federal Grid
Company and Federal Grid Finance Limited, one of the following
companies: PricewaterhouseCoopers, Ernst&Young, Deloitte,
KPMG or one of its affiliates shall be appointed as an auditor for
Federal Grid Company IFRS consolidated financial statements.
According to this requirement, KPMG CJSC was appointed as
Auditor for Federal Grid Company’s IFRS consolidated financial
statements for 2014 (as adopted by the EU).
SRO Membership:
Full name: Non-for-Profit Partnership
“Audit Chamber of Russia”
Address: building 3, 3/9, 3rd Syromyatnichesky pereulok,
Moscow 105120, Russia
Legal address:
Postal Address:
Phone:
Fax:
E-mail:
INN:
OGRN:
office 3035, 18/1 Olympic
prospect, Moscow 119192,
Russia
Tower Complex Block,
10 Presnenskaya
Naberezhnaya, Moscow
123317, Russia
+7 495 937 4477
+7 495 937 4499
moscow@kpmg.ru
7702019950
1027700125628
Company Registrar
Depositary
Joint-Stock Company «Registrar Society STATUS»
(CJSC STATUS)
Non-Banking Credit Organisation Closed Joint-Stock Company
National Settlement Depository (CJSC NSD)
Address:
Phone:
Fax:
E-mail:
building 1, 32
Novorogozhskaya str.,
Moscow 109544, Russia
+7 495 974 8350
+7 495 678 7110
info@rostatus.ru
Address:
Phone:
E-mail:
building 12,
Spartakovskaya str.,
105066
+7 495 234 9960
sales@nsd.ru
License number:
10-000-1-00304
Issue date:
Issue date:
Validity period:
12.03.2004
non-expiry
Validity period:
Issuing authority:
19.02.2009 г.
non-expiry
FFMS of Russia
Issuing authority:
FFMS of Russia
License number:
177-12042-000100
126
126
ASEPCR
Automated Systems of Electric Power Control and Rrecording
BRELL
Belarus, Russia, Estonia, Latvia and Lithuania
CCGT
Combined-Cycle Gas Turbine
CEO
CHP
Chief Executive Officer
Combined Heat and Power
IPS
JSC
KPI
LED
LLC
MES
Integrated Power System
Joint Stock Company
Key Performance Indicator
Light Emitted Diode
Limited Liability Company
Backbone Electric Grid
CIMS
Corporate Information-based Management System
MICEX
Moscow Interbank Currency Exchange
CIS
The Commonwealth of Independent States
MPEI
Moscow Power Engineering Institute
CIS EPC
CIS Electric Power Council
NGPP
Non-Governmental Pension Program
DECT
Digital European Cordless Telecommunications
DSS
Digital Substation
NPP
OHL
Nuclear Power Plant
Overhead Line
EBITDA
Earnings before Interest, Taxation, Depreciation & Amortisation
OHTL
Overhead Transmission Line
EMS
Environmental Management System
RAS
Russian Accounting Standards
ESUPCN
Energy System’s Unified Process Communications Network
PABX
Private Automated Branch Exchange
Federal Financial Market Service
PMES
Backbone Electric Grid Enterprise
Fibre-Optic Communications Network
PSPP
Pumped Storage Power Plant
FFMS
FOCN
GDR
Global Depository Receipt
GLONASS
Global Navigation Satellite System
GMS
GRI
General Meeting of Shareholders
Global Reporting Initiative
PTL
R&D
RAB
RPD
Power Transmission Line
Research and Development
Regulatory Asset Base
Rate of Process Disturbances
GRES
State District Power Plant
RUIE
Russian Union of Industrialists and Entrepreneurs
HPP
HIFs
HR
HVL
IFRS
IDR
IDGC
ICS
Hydro Power Plant
Hazardous Industrial Facilities
Human Recourses
High Voltage Line
SS
TPP
UES
Substation
Thermal Power Plant
Unified Energy System
UNEG
Unified National Electric Grid
International Financial Reporting Standards
VAT
Value Added Tax
Issuer Default Ratings
WECM
Wholesale Electricity and Capacity Market
Inter-regional Distribution Grid Company
VRP ACS
Voltage and Reactive Power Automatic Control System
Internal Control System
WWF
World Wide Fund for Nature (formerly World Wildlife Fund)
Units of measure
bn
billion
l
litre
Gcal
gigacalorie
mln
million
GW
km
kv
gigawatt
kilometer
kilovolt
MVA
megavolt-ampere
MVAr megavolt-ampere reactive
MW
megawatt
kW
kilowatt
p.p.
Percentage point
kWh
Kilowatt-hour
127
127
ADDITIONAL INFORMATION
Appendices
REPORT2014.FSK-EES.RU
• Additional Information by Section of the
Annual Report
• Information about the Structure of
the Property Portfolio of Federal
Grid Company
• RAS Annual Financial Statements
• Information on Compliance with the
Russian Corporate Governance Code
Assets of Federal Grid Company
in 2014
• Information on Disposal of Non-Core
• Information about Transactions
• Management Report 2014
• Information on the Actual Performance
of Assignments of the President and the
Government of the Russian Federation
• IFRS Consolidated Financial
Statements
128
Following the best disclosure practices,
Federal Grid Company provides all
stakeholders with an interactive version of
the 2014 Annual Report. It includes user-
friendly functions for data analysis, interactive
elements and all Appendices to the Report.