The Annual Report was approved
by the Annual General Meeting of Shareholders of PJSC FGC UES
on 15 May 2020 (minutes No. 24 of 15 May 2020)
Previously approved by resolution
of the Board of Directors on 10 April 2020
(Minutes No. 497 of 10 April 2020)
Chairman of the Management
Board of PJSC FGC UES
A. Murov
ABOUT THE REPORT
The Integrated Annual Report1 of the Public Joint
Stock Company “Federal Grid Company of the
Unified Energy System” for 2019 (hereinafter, the
Report or the Annual Report) is aimed at informing
stakeholders about the strategy and mission of PJSC
FGC UES, the policy in the field of social responsibility
and sustainable development, key events and
performance results, impact on the economy, society,
and environment, as well as about stakeholder
engagement.
This Report has been prepared in accordance with
international and Russian standards and regulatory
requirements, including:
GRI Sustainability Reporting Standards;
International Integrated Reporting Framework;
AA1000 Stakeholder Engagement Standard
(AA1000SES).
This Report is meant for a wide range of stakeholders.
For detailed information on the Report, its preparation,
determination of material topics, and responsibility
for the information provided, see section
Additional information/About the Report.
Our Interactive Report is available on the corporate
website at www.fsk-ees.ru/eng, section
Investors/Financial Disclosure/Annual Reports.
GRI 102-1, 102-5
In the text of this Report, Public Joint Stock
Company “Federal Grid Company of the Unified
Energy System” is also referred to as PJSC FGC
UES, JSC FGC UES (used until 7 July 2015),
Rosseti FGC UES or the Company.
1 An integrated report is a concise communication about how an organisation’s strategy,
governance, performance and prospects, in the context of its external environment, lead to
the creation of value over the short, medium and long term. An integrated report should be
prepared in accordance with International Integrated Reporting Framework.
WHAT DOES THE TRANSMISSION NETWORK
OF THE FUTURE LOOK LIKE?
To date, Russia is undergoing a transformation in its economy,
followed by the structure modification and creation of new
industries. The government targets the acceleration of technological
advances and introduction of digital technology into both the
economy and social spheres. This will result in changes in the
nature and geography of electricity consumption, along with higher
requirements for electricity supply. At the same time, market
competition over staff able to work in changing conditions
is becoming fiercer.
To face new challenges, the Unified National Electric Grid is being developed
and transformed, too:
Technologies, that take us to a brand-new level of security, controllability
and efficiency of electric grids, are now available.
Geographical emancipation is on the way: the infrastructure is being
created to connect large capacity volumes in regions with the smallest grid
density, i.e. Eastern Siberia and Far East.
Training of employees able to work in changed conditions becomes
a priority, equal to the introduction of new technology.
?WHAT
WILL
ELECTRIC
GRIDS BE LIKE
IN THE
FUTURE?
?WHICH DIGITALISATION
PROJECTS
HAVE ALREADY BEEN IMPLEMENTED
AND WHICH ARE YET TO COME?
?HOW DOES
OUR COMPANY
PREPARE FOR
UPCOMING CHANGES
IN THE INDUSTRY?
?HOW DOES
COMPANY
ADAPT ITS
STRATEGY?
ALL THESE AND OTHER QUESTIONS WILL BE ANSWERED
THROUGH OUR ANNUAL REPORT.
PJSC FGC UES
2019 Annual Report
1
OUR MISSION: Ensuring the reliable operation and organic growth of the UNEG,
its high economic efficiency and maximum cost reduction.
Who we work for (the Company’s stakeholder groups)
Rosseti FGC UES
a Russian energy company
that offers electricity
transmission services
in the Unified National
Electric Grid.
Shareholders
and investors
Partners, incl.
non-profit ones
Consumers
Internal
stakeholders
Society
The State
Our Priorities
Reliability of energy
supply
Infrastructure
development
Customer
satisfaction
Financial
sustainability
Effective
governance
Our Resources (types of capital)
Production
Financial
Intellectual
Natural
Human
Social and
relationship
We pay close attention to sustainable development and integration of ESG
principles into the Company’s activities
Е
Environmental
Greenhouse gas emissions
Air pollution
Energy efficiency
Procurement of eco-friendly
materials
Waste management
S
Social
G
Governance
Corporate Social
Responsibility Programme
Human rights
Recruitment practice
Workplace safety
Responsible procurement
Shareholders’ rights
Membership of the Board of Directors
Remuneration
of the management
Work ethics
Risk management
The financial indicators presented in this Annual Report are prepared on the basis of annual accounting statements
of PJSC FGC UES for 2019, as per RAS. Individual indicators are given in accordance with the Consolidated Financial
Statements as per IFRS and are accompanied with a corresponding note.
Link to the website
Cross-link to other sections of the Report
or Appendices hereto
The indication of the Company’s
activities related to achievement
of the UN sustainable
development goals.
For more information on the UN
Sustainable Development
Goals, see https://www.un.org/
sustainabledevelopment/sustainable-
development-goals/
Strategic Report
Rosseti FGC UES
is a low-risk business,
steadily developing as
a result of consistent
implementation of strategic
priorities, effective
management and great
expertise of its
employees.
Corporate
Management
Report
The Company’s corporate
management is based on
principles of corporate
governance specified in
the Corporate Governance
Code recommended by
the Bank of Russia
Financial Report
The Company’s financial
stability and high performance
Additional
Information
Our Interactive Report is
available on the corporate
website at www.fsk-ees.
ru/eng, section Investors/
Financial Disclosure/Annual
Reports.
About Us
р. 8
How We
Create
Value
р. 16
Overview of the
Reporting Year in
the Statements of
the Company’s
Top Management
р. 4
Our Goals until 2024
р. 46
How We Measure
Our Performance
р. 51
Development of the
UNEG: Implementa-
tion of the Investment
Programme
р. 71
Introduction
of Digital
Technology
р. 74
Assessment
of the Corporate
Governance
Quality
р. 151
The Board
of Directors’
Report on
PJSC FGC UES
Activities in
Priority Areas
р. 161
Investor
Engagement
р. 215
About the Company
10 Geographic Reach
16 Business model
20 Key Results of the Year
12 Strategic Priorities and Tasks
14 Corporate Governance
Strategic Report
35 Industry Overview, Strategy,
Risks and KPI
60 Performance Highlights 2019
Operational Results
Analysis of Financial
Performance
Sustainable Development
Corporate Governance Report
147 General information
on the Company’s corporate
governance
148 Governing Bodies
of the Company
192 Remuneration system for
governing bodies
199 Ensuring control and risk
management
208 Share capital, securities trading
Financial Report
219 Main Forms of Annual Financial
Statements as per RAS
232 Main Forms of Consolidated
Financial Statements as per IFRS
Additional Information
245 About the Report and Disclaimer
248 Auditor’s Report on Non-Financial
Statements
252 Conclusion on Public Endorsement
254 Compliance with Standards
(GRI and )
267 Glossary and Abbreviations
270 Contact information
272 Appendices
2
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
3
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Statement by the Chairman
of the Board of Directors of PJSC FGC UES
The dynamics of the
Company’s financial/
economic and production
indicators serve as evidence
of its stable development.
Dear shareholders,
Rosseti FGC UES (PJSC FGC UES)
is a major subsidiary of PJSC Rosseti,
operator of Russia’s Unified National
Electric Grid. The Company management
controls a unique infrastructural system,
which ensures continued energy supply
to the country, transmission of electricity
from generation facilities to distribution
grids and to direct consumers, as well
as joint work with energy systems in
neighbouring countries.
Main Achievements of 2019
A number of important achievements
were made by Rosseti FGC UES
last year.
IDespite the growth in uncontrolled
expenses and tariff restrictions, the
Company managed to achieve high
financial and economic results.
The trend towards reducing the accident
rate was maintained. Progress was made
by the Company in the sphere of digital
transformation.
Rosseti FGC UES’s investment
programme is typically a major
programme in Rosseti Group with regard
to financing volumes and physical
parameters. This is justified both by the
scale of the Unified National Electric Grid
and the long list of objectives fulfilled by
the Company.
In 2019, the five-year investment cycle,
which saw the implementation of a
number of significant projects, came to
an end.
IMeasures were taken to
strengthen the ties between five
unified energy systems — in
the Central and North-Western
regions, as well as in Middle
Volga, the Urals and Siberia.
Nuclear and hydropower facilities
were connected to the transmission
networks. Infrastructure conditions
were created to drive the capacity of
the Eastern Siberia – Pacific Ocean
pipeline, and of the power supply
system in areas of accelerated socio-
economic development. Thanks
to the construction of new energy
facilities in the Irkutsk Region and the
consolidation of facilities in the Sakha
Republic (Yakutia), we expanded the
geographical reach of Rosseti FGC
UES’s operations.
The implementation of our development
projects is accompanied by import
substitution.
IAccording to the results of
2019, the share of domestic
electrotechnical equipment in
the total volume of Company
purchases amounted to 89 %.
By 2030, this indicator will stand at
95 %, which in line with the goals
of Russia’s Energy Strategy. At
the same time, systematic work
is being conducted to expand
partnerships with small and medium-
sized enterprises. In 2019, the
share of purchases from such
businesses made up 64 % of the
total procurement value of the
Company, compared to the Russian
government’s quota of 18 %.
Medium-term Plans
In the past year, the Board of
Directors and the management
addressed the issues of prospective
development of Rosseti FGC
UES. The Company’s investment
programme for 2020–2024 has been
prepared and approved. It targets the
development of business in order to
create conditions to ensure growth in
profit for shareholders and investors
against a backdrop of continuous
improvement of production and
financial indicators.
Corporate Governance Practice. This
confirms the Company’s compliance
with all requirements of the effective
laws and key recommendations of the
Russian Corporate Governance Code.
Sustainable Development
to sustainable development
principles, Rosseti FGC UES
strives to find a balance between
the economic, social and
environmental aspects of its
activities.
I Maintaining its commitment
Only by fostering open dialogue with
stakeholders and taking their interests
into account we can make this happen.
The Company takes part in activities
related to conservation of flora and
fauna, implements projects aimed at
preserving biodiversity in its regions of
presence, and introduces innovative
energy-saving technologies, which
enable us to reduce the harmful
environmental impact of the entire fuel
and energy complex.
In 2019, Rosseti FGC UES confirmed
the compliance of its Environmental
Management System with the
requirements of ISO 14001:2015.
In terms of summing up the results,
it can be noted that the dynamics of
the Company’s financial/economic
and production indicators serve as
evidence of its stable development. Our
accumulated experience, professional
team and effective management
practices have allowed us to
successfully solve every task we have
faced and achieve our strategic goal.
Pavel Livinsky
General Director, Chairman
of the Management Board
of PJSC Rosseti
In 2020–2024, Rosseti FGC UES
plans to invest RUB 555 billion in
the modernisation and construction
of main power grids; 40.2 GVA of
transformer capacity will be commis-
sioned, along with 8,700 km of power
transmission lines.
The costliest aspect of the investment
programme will be the renovation
of facilities already in operation.
Additionally, greater attention will be
given to innovative projects as part of
the Digital Framework 2030 concept.
New construction will mostly be related
to implementing the comprehensive
plan to modernise and expand the
trunk infrastructure. These projects
will make it possible to complete the
creation of the Power of Siberia gas
pipeline system, increase freight traffic
along the Baikal–Amur Mainline and the
Trans-Siberian Railway, and expand
the throughput capacity of electrical
networks in the Far East, North-Western
and North Caucasus regions.
Improving Corporate
Governance
It is only possible for the Company to
carry out effective work and implement
the scheduled plans when there is
constructive interaction among all
management bodies and full confidence
from shareholders and investors with
regard to observing their legitimate
interests.
Rosseti FGC UES understands this,
and is continuously improving its
methods of corporate governance. In
2019, the Board of Directors adopted
a new edition of the Corporate
Governance Code, along with a
series of internal documents aimed at
protecting insider information.
I An external assessment of the risk
management system in effect was
conducted, as a result of which
an independent expert made
a formal judgement with regard
to the system’s efficiency.
The Russian Institute of Directors
confirmed Rosseti FGC UES’s rating
on the corporate governance scale
at a level of 7++ — Well-Developed
PJSC FGC UES
2019 Annual Report
5
Statement by the Chairman
of the PJSC FGC UES Management Board
In the reporting year, a series
of projects were carried
out which were significant
for the entire industry in terms
of scale. This made it possible
to remove infrastructural
limitations in several regions
across the country.
Dear colleagues,
2019 was a fruitful year for Rosseti FGC
UES (PJSC FGC UES). Strong economic
results were achieved. A high level
of reliability was ensured with regard
to the Unified National Electric Grid.
A series of projects were carried out
which were significant for the entire
industry in terms of scale. These made
it possible to remove infrastructural
limitations in several regions across
the country. The Company’s
accomplishments in the sphere of
sustainable development were highly
praised by the professional community.
Production and Financial
Results
The main priority for Rosseti FGC UES
is to ensure the uninterrupted operation
of the UNEG.
IIn 2019, the Company reduced
its specific accident rate by 12 %,
reaching a historic minimum.
The financial performance has improved.
In 2019, revenue as per Russian
Accounting Standards was up by 1 %
to RUB 243 billion.
IThe profit received totalled RUB
58 billion, 3.5 % higher year-
over-year.
The Company boasts the highest ACRA
rating according to the national scale.
Ratings from the “big three” agencies
are at investment level. Rosseti FGC
UES’s activities were positively assessed
by investors. Over the last year, market
capitalisation rose by more than
a quarter. The Company confirmed its
status as a market leader in terms of
investment efficiency.
Major Projects
In 2019, several activities were under-
taken as part of the comprehensive
plan to modernise and expand trunk
infrastructure, which was developed by
the Russian government as part of the
President’s May Decree.
pletion of the construction of
the first UNEG supply centres
in the Irkutsk Region: the Ust-
Kut 500 kV substation and the
Sukhoy Log 220 kV substation.
This became the final stage of
the creation of the Peleduy En-
ergy Ring, a major power grid
project in Eastern Siberia.
IThe key highlight was the com-
In addition, all planned activities were
achieved by the end of the year with
regard to the Eastern Siberia – Pacif-
ic Ocean power supply system, thus
allowing us to bring the oil pipeline to
the design capacity. At the same time,
the Company performed the necessary
scope of work to launch the Power of
Siberia gas pipeline.
New supply centres were also commis-
sioned in Yamalo-Nenets Autonomous
Okrug, Orenburg and Omsk Regions,
and the Nadezhdinskaya area of accel-
erated development in Primorsky Krai
was connected. Furthermore, power was
supplied to power units at the Novovo-
ronezhskaya NPP-2 and Zaramagskaya
HPP-1 in the North Caucasus.
Plans until 2024
This year, the Company entered a
new five-year investment period. In
2020–2024, over RUB 555 billion will
be invested in the modernisation and
development of the UNEG. The regional
priorities include Siberia, the Far East,
and the Central Federal District.
The main direction is to implement
measures in order to meet the require-
ments of the President of Russia’s May
Decree. Our key projects cover the
creation of network infrastructure for pro-
viding power supply to the Baikal-Amur
Mainline, Trans-Siberian Railway and to
the Power of Siberia gas pipeline, and
the expansion of throughput capacity of
electrical connections in the Primorsk
and Kuzbass power systems, as well as
for Kola-Karelian transit.
Large-scale work has been scheduled
with the aim to modernise the regional
supply centres and supply power using
renewable energy sources. The Com-
pany will also strengthen the network
infrastructure for the development of port
zones, including Murmansk, Taman and
Nakhodka, and will provide electricity
to dozens of mining and processing
production sites.
IThe President of Russia set the
task to implement intelligent
systems for managing power
grid facilities.
By 2025, it is planned to implement
more than 30 comprehensive digital
projects in the UNEG and transit over
100 substations to remote control. The
coverage of digital communications
will reach 100 % by this deadline, and
all the Company’s energy facilities will
be monitored remotely from the unified
control centres.
Sustainable Development
of Industrialists and Entrepre-
neurs included Rosseti FGC
UES on its list of leaders in the
“Responsibility and Openness”
and “Sustainable Development
Vector” indexes.
IIn 2019, the Russian Union
This serves as recognition of the
Company’s high results in the field of
corporate governance and social and
economic development. The decision
became the basis for including the
Company’s shares in the corresponding
indices on the Moscow Exchange.
Rosseti FGC UES strives to ensure a
high level of openness and transpar-
ency in its activities by implementing
the principle of active dialogue with
stakeholders. Each year, we disclose
information on all the material aspects of
the Company’s work in annual integrated
reports, which comply with GRI and IR
international standards.
I would also like to draw attention to
environmental issues. Rosseti FGC UES
carries out a range of activities aimed
at reducing its environmental impact.
In 2019, 2,500 tonnes of waste were
transferred for reprocessing, neutrali-
sation and disposal. Over 80,000 bird
protection devices were installed on
power transmission lines. In the Amur
Region, the Irkutsk Region, Krasnoyarsk
Krai and Krasnodar Krai, projects were
implemented with the aim of preserving
biodiversity. Over 81,000 juvenile stur-
geon were released into water bodies.
HR Policy
The Company’s key value is its team
of professionals. Rosseti FGC UES
employs 22,000 people.
Taking into account industry-wide trends,
including digitalisation, the Company
management adopts modern approach-
es to organising and controlling activity,
as well as realising personnel potential.
IIn 2019, the Centre for Skills
Development and Assessment
was created, whose goal is to
objectively and independently
assess employees’ skills and
qualifications.
More than 17,800 employees took part
in the training, retraining and advanced
training programmes, 17,200 of which
were production personnel.
The results of 2019 strengthen Rosseti
FGC UES’s reputation as an organ-
isation that successfully implements
projects of nationwide significance. The
background for this is a stable financial
position, high operational efficiency,
production capacities, employee com-
petence, and support from sharehold-
ers and the Board of Directors for the
chosen course.
Andrey Murov
Chairman of the PJSC FGC UES
Management Board
PJSC FGC UES
2019 Annual Report
7
ABOUT THE COMPANY
PJSC FGC UES is a Russian energy company that provides electricity transmission
services in the Unified National Electric Grid (UNEG). In this type of activity, the Company
is a subject of natural monopoly. It is included in the list of core Russian organisations
of strategic importance.
We facilitate:
power transmission through the transmission
network in 79 regions of Russia, helping to address
the most pressing issues of the country’s social and
economic development;
maintaining and developing the UNEG infrastructure,
including for its higher performance efficiency and
for expanding geographical reach on the competitive
market of power and capacity;
supply of electric energy across the borders
of 11 foreign countries, collection and processing
of electricity flow information through 127 interstate
transmission lines;
effective assistance in management and control
of state property in the power grid sector of the industry,
implementation of the state policy in the electric
energy sector.
GRI 102-2
Rosseti FGC UES is a low-risk business, steadily developing as a result of consistent implementation of
strategic priorities, effective management and great expertise of its employees.
Core business areas:
management of the Unified National Electrical Grid;
provision of electricity transmission and technological connection services to participants of the wholesale
electricity and capacity market;
investment of the Unified National Electrical Grid development.
We operate:
951 substations;
148.270 km of high-voltage backbone transmission lines.
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
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2003
2005–2008
A large-scale transformation of the electric
grid complex took place. As a result, the right
of ownership and management of the JSC
RAO UES transmission network of Russia
was handed over to JSC FGC UES.
The JSC FGC UES
reorganisation was
completed by merger of
56 transmission network
companies, JSC RAO
UES of Russia, JSC State
Holding and JSC Minority
Holding FGC UES.
Inclusion of the
Company in the
Register of Natural
Monopoly Entities
in the Fuel and
Energy Complex,
and in the list
of commercial
organisations and
entities on the
Federal Wholesale
Electricity and
Capacity Market.
2002
State registration of
JSC FGC UES.
2009
Approval of the FTS
parameters for the
Company’s transition
to RAB regulation for
2010–2012. Inclusion of the
Company’s shares into the
calculation of stock indexes
MSCI Russia and MSCI
Emerging Markets.
2008
The number of Company’s
shareholders exceeded 470,000.
Listing on the RTS and MICEX
exchanges. Launch of the GDR
programme.
2011
Listing of JSC FGC UES’
depositary receipts on the
London Stock Exchange.
2014
Endorsement
of the Long-Term
Development
Programme of
JSC FGC UES for
2015–2019 with an
outlook for 2030 by
the Government
of the Russian
Federation.
2013
2015
Bringing the Company’s
corporate governance
system and practices
in line with general
recommendations of the
Corporate Governance
Code of the Russian
Federation and listing
rules of the Moscow
Stock Exchange,
including the approval
of revised key internal
documents.
2018
Further expansion
of the Company’s
geographical
reach up to
79 regions: con-
nection of facilities
in the Republic
of Sakha (Yakutia)
and the Irkutsk
Region.
2016
2019
Start of active
integration of ESG
principles into
the Company’s
activities
Preparation of
the Sustainable
Development
Policy.
JSC Rosseti, a state-owned company, becomes
the major shareholder with 80.6 % of JSC FGC UES’
ordinary shares.
The 2016–2020 Innovative Development Pro-
gramme of PJSC FGC UES has been approved
by the resolution of the Board of Directors
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Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
9
GEOGRAPHIC REACH
GRI 102-4, 102-6, 102-7
MPS CENTRE
EMPS
Valdaiskoye; Verkhne-Donskoye; Vologda;
Moscow; Priokskoye; Chernozemnoye
SPECIAL PURPOSE PRODUCTION CENTRE
BELY RAST
PL
391 pcs.
23,328.242
km
SS
156 pcs.
87,924
MVA
MPS NORTH-WEST
EMPS
Karelskoye; Leningrad; Novgorod;
Severnoye
PL
280 pcs.
15,448.670
km
SS
101 pcs.
41,069
MVA
PJSC FGC UES operates in 79 regions of Russia. The territory in
which the Company’s facilities are located is divided into zones of
responsibility for regional branches – main power systems (MPS) and
their regional enterprises (EMPS). Territories with low-density
population and no major customers, such as Chukotka,
Kamchatka, the Magadan Region, Sakhalin, Nenets
Autonomous Okrug and the Altai Republic, are not
integrated into the UNEG as their current economic
conditions do not allow for laying electricity
transmission lines or establishing large substations.
MPS EAST
EMPS
Amur; Primorsky;
Khabarovsk
PL
236 pcs.
19,379.754
km
SS
101 pcs.
16,161
MVA
MPS WEST
SIBERIA
EMPS
Eastern; Central; Southern;
Yamalo-Nenets
PL
218 pcs.
14,290.966
km
SS
91 pcs.
39,561
MVA
MPS SIBERIA
EMPS
Transbaikal; West-Siberian;
Krasnoyarsk; Kuzbass;
Khakassky
PL
340 pcs.
26,200.371
km
SS
121 pcs.
47,855
MVA
MPS SOUTH
EMPS
Kuban; Rostov; Sochi;
North-Caucasus; Volga-Don
MPS VOLGA
EMPS
Nizhny Novgorod; Nizhne-Volzhskoye;
Samara; Sredne-Volzhskoye
MPS URALS
EMPS
Orenburg; Perm; Sverdlovsk;
South Ural
PL
428 pcs.
20,085.368
km
SS
194 pcs.
45,155
MVA
PL
179 pcs.
12,781.431
km
SS
88 pcs.
32,145
MVA
PL
251 pcs.
16,750.855
km
SS
99 pcs.
43,044
MVA
For further details on the
Company’s international
operations, as well as on
electric energy exports and
imports under contracts
of PJSC Inter RAO, see
Appendix 1.
FGC UES ensures the transmission of electric energy across the borders of
11 foreign countries, collection and processing of information on electricity
flow through 127 interstate transmission lines.
UNIFIED
NATIONAL
ELECTRIC
GRID*
SUBSTATIONS WITH
A VOLTAGE
OF UP TO 1,150 KV:
352,913 MVA
951PCS.
POWER TRANSMISSION
LINES A WITH VOLTAGE
OF UP TO 1,150 KV:
148,265.66 KM
2,323 PCS.
NUMBER OF REGIONS
OF PRESENCE:
79
* Information on the
power transmission
lines and SS with the
properly registered
ownership of PJSC
FGC UES and other
owners, including
0.4–110 kV voltage
class facilities but
excluding power
transmission lines
and SS with a
voltage class of
10 kV and lower,
accepted by PJSC
FGC UES for long-
term lease and
operating in the
territory of Krasnodar
Krai.
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OUR STRATEGY
Mission
Ensuring the reliable operation and solid growth of the UNEG development economy
thanks to high economic efficiency and maximum cost reduction.
t
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VALU E S
OCIAL RESP O N S I B I L I T
Y
Effective management
S
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h
old
STRATEGIC PR I O R I T I E S
ers and investors
C o m p
m ployees
y e
n
a
Values:
RELIABILITY
The Company strives for maximum reliable and uninterrupted
supply of electric power for the needs of the economy and social
sector of the Russian Federation.
HUMAN RESOURCE
The Company’s key resource is its employees. We value each
and every of them, regardless of gender, age, color, nationality
or position. The Company is guided by the principles of honesty
and objectivity when forming its personnel structure.
S
EFFIECIENCY
The Company strives for the continuous efficiency improvement,
which is supported by strategic initiatives of its governing and
control bodies, top management and shareholders.
SAFETY
The Company applies a strictly regulated and balanced approach
to security measures, as well as carries out activities aimed at the
prevention of possible violations.
SOCIAL RESPONSIBILITY
The Company is a socially responsible business, which focuses
on environmental and labour protection issues and the
implementation of social programmes.
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For more information
about the Company’s
strategic priorities,
objectives, challenges
and adjusted strategy,
see p. 40
CHALLENGES AND STRATEGIES
FOR THE FUTURE
For more information
on creating value
for FGC UES
stakeholders, see
p. 20
12
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PJSC FGC UES
2019 Annual Report
13
CORPORATE
GOVERNANCE
The Company adheres to requirements of Russian legislation and a significant number
of recommendations of the Russian Corporate Governance Code, as well as applies the best
world-known practices in the area of corporate governance.
7++
The Well-Developed Corporate Governance Practice is a corporate governance
rating assigned by the Russian Institute of Directors.
ТОP-20
At the end of 2019, the Company became one of the leaders of the National
Corporate Governance Index.
tsr As for the total shareholder (TSR) indicator, the Company’s shares were included in the list of the
most liquid and capitalised shares in the electric energy sector upon the results of 2019
The Board of Directors is an effective and professional governing
body of the Company, capable of making objective and independent
judgments and taking decisions in the best interests
of the Company and its shareholders.
3 independent directors out of 11
on the Board of Directors provide an independent perspective on operations carried
out by the Company and its governing bodies, based on their knowledge, experience
and expertise. Only independent directors may constitute the Audit Committee and the
HR and Remuneration Committee.
The Company continues to develop its corporate governance system.
Observance of recommendations and principles
of the Corporate Governance Code*
Results of the corporate governance
self-assessment
4
14
61
3
14
62
2
13
64
2
91 %
90 %
89 %
2017
2018
2019
2017
2018
2019
- Fully
observed
- Partially
observed
- Not observed
or applicable
- Level of compliance
* In compliance with the methodology recommended in Letter of the Bank of Russia No. IN-06-52/8 of 17
February 2016, “On Disclosure in the Annual Report of a Public Joint Stock Company of a Report on Compliance
with Principles and Recommendations of the Corporate Governance Cod ”.
The total number of the Company’s shareholders exceeds 460,000 persons.
PJSC FGC UES share capital structure as of 31 December 2019
14.68 %
5.19 %
80.13 %
- PJSC ROSSETI
- Shareholders holding from 0.5 % to 2 %
of the Company’s authorised capital
- Shareholders holding less than 0.5 %
of the Company’s authorised capital
14
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RESOURCES
at the beginning of 2019...
BUSINESS MODEL
Financial
capital
Productive
capital
Intellectual
capital
Human
capital
Nature
capital
RUB 127.3 BILLION
CASHFLOW FROM CURRENT
ACTIVITIES
RUB 246.7 BILLION
BORROWED CAPITAL
(TOTAL DEBT)
958 SUBSTATIONS
145.94 THOUSAND KM
LENGTH OF POWER TRANSMISSION LINES
352 GVA
TRANSFORMER CAPACITY
More details on p. 20
More details on p. 22
We strive
to raise return on financial
capital and maintain
financial stability.
We invest
in the power grid infrastructure
development and upgrade of our
production assets.
RUB 3.74 BILLION
COST OF INTANGIBLE ASSETS
204
PATENTS ACQUIRED, INCLUDING
10 INTERNATIONAL ONES
183
CERTIFICATIONS FOR
ECM PROGRAMMES
PERSONNEL: 22,302 PEOPLE*
GENDER COMPOSITION:
М 83 % F 17 %
NUMBER OF EMPLOYEES
WHO PARTICIPATED IN TRAINING,
RE-TRAINING AND PROFESSIONAL
DEVELOPMENT PROGRAMMES
IN 2018: 15,840 PEOPLE
774,781.4 GJ
ELECTRIC POWER
CONSUMPTION IN 2018
799.5 THOUSAND M3
WATER CONSUMPTION
IN 2018
More details on p. 24
More details on p. 26
More details on p. 28
We support
scientific and innovative potential,
as well as develop and introduce
new technologies.
We highly appreciate
the experience and professional
skills of our staff, provide social
support and arrange for their
development and training.
We strive
to cut down on the use
of natural resources and
enhance energy
efficiency.
… at the end of 2019.
RUB 130.0 BILLION
CASHFLOW FROM
CURRENT ACTIVITIES:
(+RUB 2.7 billion in 2019)
RUB 227.0 BILLION
BORROWED CAPITAL
(TOTAL DEBT)
(-RUB 19.7 billion in 2019)
Financial
capital
951 SUBSTATIONS
(-0.731% in 2019)
148.27 THOUSAND KM
LENGTH OF POWER TRANSMISSION LINES
(+1,624 % in 2019)
352.4 GVA
TRANSFORMER CAPACITY
(+0,416 GVA in 2019)
Productive
capital
RUB 4.66 BILLION
COST OF INTANGIBLE ASSETS
(+RUB 0.92 billion in 2019)
200 PATENTS,
INCLUDING 10 INTERNATIONAL ONES
(+2 patents in 2019; 6 patents expired)
187
SOFTWARE CERTIFICATES
(+4 certificates in 2019)
Intellectual
capital
PERSONNEL
22,432 PEOPLE*
(+ 0,6 % in 2019)
GENDER COMPOSITION
М 83 % F17 %
Number of employees participated
in training, skills improvement
programmes in 2019:
17,859 people
* Headcount
Human
capital
600,833.1GJ
(-22.45 % in 2019)
ELECTRIC POWER
CONSUMPTION IN 2019
744.4 THOUSAND M3
(-7 % in 2019)
WATER CONSUMPTION
IN 2019
Nature
capital
Social relationship
capital
RATING/OUTLOOK
MOODY’S
BA1 / STABLE
FITCH
BBB- / POSITIVE
STANDARD
& POORS
BB+ / POSITIVE
СUSTOMER SATISFACTION WITH
TECHNOLOGICAL CONNECTION
SERVICES: 9.3 POINTS (OUT OF 10)
More details on p. 30
We support
by our actions, the positive
image of the Company, and
full information transparency
contributes to that.
MOODY’S
Bаа3 / STABLE
FITCH
BBB / POSITIVE
STANDARD
& POORS
BBВ- / STABLE
СUSTOMER SATISFACTION WITH
TECHNOLOGICAL CONNECTION SERVICES:
9.33 POINTS (OUT OF 10) (+0.03 P.P. IN 2019)
THE COMPANY IS A LEADER OF RESPONSIBILITY
AND TRANSPARENCY, AND VECTOR OF
SUSTAINABLE DEVELOPMENT RUIE INDEXES.
SHARES OF PJSC FGC UES ARE
INCLUDED IN FTSE4GOOD.
Social relationship
capital
Key
management
systems
Corporate Management
Risk Management and Internal Audit System
m
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Infra
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nt
e
E fficie
g
a
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ctio
m
sto
atisfa
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s
Reliability
and quality
of energy supply
to consumers
STRATEGIC
PRIORITIES
Quality Management System
Quality Management
System
Operating
activities
1. Electric power transmission via the UNEG
2. Maintenance and development
of the UNEG
Electricity
generation
Electricity
distribution
and
consumption
Existing lines
New technological
connection
ROSSETI
FGC UES
Existing lines
New technological
connection
Integration of
the UN Sustainable
Development Goals
Other
countries
16
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
18
Business model is the Compa-
ny’s core which reflects the crea-
tion of value (added value) when
strategic goals are achieved with
the use of acquired resources
(capitals*). Rosseti FGC UES
(PJSC FGC UES) uses the
available resources of the
Production, Financial, Intellectu-
al, Natural and Human Capitals
in a balanced manner in favour
of all stakeholders in short,
medium and long term.
* Capitals of an organisation
are a set of resources comprising
value capacity. The aggregate
amount of these resources affects
the success of the business,
and they undergo changes
throughout the commercial
activities of the organisation.
KEY RESULTS OF THE YEAR
FINANCIAL
CAPITAL
Ensuring financial sustainability and increasing efficiency
of the Company’s activities
Creating values
For external stakeholders
For Rosseti FGC UES
DIVIDENDS FOR OUR SHAREHOLDERS
REVENUE
RUB 20.4 BLN
TIMELY PAYMENTS OF BOND
LOAN INCOME
RUB 15.2 BLN
TAX PAYMENTS AND SOCIAL
CONTRIBUTIONS
RUB 49.5 BLN
RUB 242.7 BLN.
PROVIDING PROFITABILITY
RUB 58.1 BLN
NET PROFIT
THE POSSIBILITY OF USING
OWN RESOURCES TO FINANCE
THE INVESTMENT
PROGRAMME
Financial
sustainability
Drivers
of our further
growth
Reduction in specific
operating expenses
Efficient management
of the Company’s
debt portfolio
Long-term (3–5 years)
supply contracts
at fixed prices
How we
achieved
this
Efficient control of
operating expenses
(a decrease of 5.1%
against 2018)
The possibility
of attracting debt
financing under
favourable conditions
due to high credit
ratings and strong
performance
Implementation
of the action plan
to reduce account
receivables
(-22.3% against 2018)
Revenue collection
growth
Significant
events
Under the contract of exchange,
PJSC FGC UES consolidated
the UNEG facilities owned
by JSC DVEUK
In 2019, Moody’s and Fitch
Ratings upgraded the credit
rating of PJSC FGC UES by
one notch to Baa3 and BBB,
and S&P and ACRA confirmed
the previously assigned credit
ratings at BBB- and AAA (RU),
respectively. The outlook is
Stable for all credit ratings
of PJSC FGC UES; they
correspond to sovereign
ratings of the Russian
Federation
Reduction of debt load by
RUB 19.7 billion. In 2019,
the Company repaid the
Eurobonds issue in the amount
of RUB 17.5 billion
In June 2019, the Annual
General Meeting of
Shareholders resolved
to pay dividends for 2018 in
the amount of RUB 20.4 billion
In December, the Extraordinary
General Meeting of Share-
holders resolved to pay interim
dividends for 9M 2019 in
the amount of RUB 11.2 billion
For more information, please see
Key Performance Indicators (p. 51)
and Analysis of Financial
Results (p. 85) sections
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О
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Я
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Ц
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Open to see
our business
model.
220
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KEY RESULTS OF THE YEAR
PRODUCTIVE
CAPITAL
Developing the power grid infrastructure and renovating
our production assets
Creating values
For external stakeholders
For Rosseti FGC UES
Infrastructure
development
Reliable
electricity supply
Customers’
satisfaction
DROP IN THE SPECIFIC NUMBER
OF ACCIDENTS AGAINST 2018 :
BY 12 %
ENSURING THE POWER GRID
INFRASTRUCTURE ACCESSIBILITY
FOR NEW CONSUMERS:
4.7GW
OF CAPACITY CONNECTED
COMMISSIONED:
4,000 MVA
OF SUBSTATIONS’ TRANSFORMER
CAPACITY
2,800 KM OF PTL
DROP IN THE RELEVANT
AMOUNT OF LOSSES
BY 0.25 %
How we achieved this
Better organisation of equipment operation
Implementation of target programmes aimed to improve the reliability
Effective implementation of the Investment Programme
Respect of deadlines for technological connection
Drivers of our further growth
Support of the reliability level and quality of our services
Development of the production assets management system
as part of the digital transformation of power in Russia
Evolution of the UNEG infrastructure
Significant events
The most industrialised and populated areas of the Republic of Sakha (Yakutia) were connected to the UNEG,
and the new facilities were put into operation in the Irkutsk Region. Major producing and processing
enterprises are located there along with infrastrucutre facilities of strategic importance.
Large-scale projects for the development of a plan of external power supply to the Eastern Siberia —
Pacific Ocean pipeline system and the Power of Siberia gas pipeline were completed, which
enabled for the export of hydrocarbons to Asia.
New centres were constructed aimed to supply power to the Urals and
Siberia - 500 kV substations named Preobrazhenskaya and Voskhod,
and the possibility to connect Nadezhdinskaya advanced development
zone in Primorsky Krai was ensured, as well as the output of power
units of Novovoronezhskaya NPP-2 and Zaramagskaya HPP.
Upgrade of the 500 kV Irtysh substation
in the Tyumen Region was completed.
RUB 149.8 bln funding of the Investment
Programme in 2019
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For detailed
information, please see
sections
Key Performance
Indicators (p. 51)
and Investment
Activities (p. 71)
22
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PJSC FGC UES
PJSC FGC UES
2019 Annual Report
23
Reliable
electricity supply
KEY RESULTS OF THE YEAR
INTELLECTUAL
CAPITAL
Developing the scientific and innovative potential
Creating values
For external stakeholders
IMPROVING THE QUALITY OF EDUCATION
OF STUDENTS MAJORING IN POWER ENGINEERING:
WE PARTNER WITH
52 UNIVERSITIES
STRENGTHENING CONNECTIONS
BETWEEN INDUSTRY-SPECIFIC EDUCATION
AND ACTIVITIES OF THE MODERN TRUNK
ELECTRIC GRID NETWORK.
DEVELOPMENT OF CUTTING-EDGE
TECHNOLOGIES IN RUSSIA
MINIMISATION OF NEGATIVE
ENVIRONMENTAL IMPACT
DEVELOPMENT OF REGIONS WITH
INNOVATIVE TERRITORIAL CLUSTERS
For Rosseti FGC UES
EFFICIENT IMPLEMENTATION
OF KNOWLEDGE-BASED
TECHNOLOGIES
ADVANCED TRAINING
OF PERSONNEL
Drivers
of our further
growth
Digitalisation of the
Company’s assets
and business processes
Continuous development
of the remote control
of grid facilities
Implementation
of the innovation
management system
How we
achieved
this
Focus on enhancing
the efficiency of innovative
activities
Focus on R&D
and implementation
of technologies connected
with digitalisation
(R&D costs amount
to RUB 0.92 billion)
Close interaction
with research centres
and leading higher
education institutions
in the country
Significant
events
For the first time in the country’s
electric grids, a new Russian
digital complex was launched
at Yuzhnaya SS in Yekaterinburg
to maintain energy system
sustainability.
Energy efficient technologies
were installed at the largest
power facilities in Moscow,
Belgorod and Tver Regions,
as well as at the substation
in the Nizhny Novgorod Region.
This will enable the Company
to reduce energy consumption
for substations’ own needs.
Several power facilities of the
Company were switched to
remote control, including Tobol
SS, the first digital substation
in the country. Thanks to this,
the quality of electric power
management of power facilities
improved significantly.
A power equipment digital
control system was launched
at the Khabarovskaya 500 kV
SS, which allowed the Company
to minimise accident risks
and increase energy efficiency
of the facility.
The agreement on establishment
of the Cybersecurity and Infor-
mation Technology Specialised
Department in cooperation with
MPEI National Research Univer-
sity was signed.
For more information,
please see the Innovation
Activities section (p. 74)
24
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2019 Annual Report
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KEY RESULTS OF THE YEAR
ПРОИЗВОДСТВЕННЫЙ КАПИТАЛ
Efficient
management
HUMAN
CAPITAL
Highly qualified personnel, safe operation,
and social guarantees
Creating values
For external stakeholders
PREPARATION OF SKILLED PERSONNEL
FOR WORKING IN ELECTRIC GRID AND OTHER ACTIVITIES
CARRIED OUT IN RUSSIA AND OTHER COUNTRIES
COOPERATION WITH
120
UNIVERSITIES AND SPECIALISED
SECONDARY SCHOOLS
CONTRIBUTION TO THE ECONOMIC AND
SOCIAL STABILITY, INCLUDING FOR FAMILIES
OF OUR EMPLOYEES
For Rosseti FGC UES
DEVELOPMENT OF THE STAFF POOL
AND NEW COMPETENCIES
17,900 PEOPLE
COMPANY EMPLOYEES WHO TOOK PART
IN THE TRAINING, RE-TRAINING AND ADVANCED
TRAINING PROGRAMMES
GROWTH OF LABOUR
PRODUCTIVITY AGAINST 2018
2.5 %
CREATING THE CORPORATE CULTURE
Drivers
of our further
growth
Improvement of the
labour protection system
to exclude occupational
accidents
Raise of the efficiency
of corporate structures
How we
achieved
this
Fulfilling the labour
and personal potential
of employees
Creation of a safe work
environment: reducing
the number of people
injured in accidents
(by 34% against 2018)
Average growth of wages
by 4.5% compared to 2018
Support of the professional
development
Stable preservation
of high-end specialists:
low rate of staff turnover
(5.11%)
Implementation
of housing and other
social programmes
to support employees
and their families
Significant
events
About 2,000 students from
48 Russian educational
institutions, providing power
engineering majors,
took part in all-Russian Day
of PJSC FGC UES.
The Company was thanked by
the Ministry of Energy
of Russia for its contribution
to the promotion of the fuel
and energy complex and
engineering education.
The Company was one
of the winners of the Best
Qualification Assessment
Centre contest and took the
third place. The award was
given by the National Council
under the President of the
Russian Federation
for Professional Qualifications
(NPQC) and the National
Agency for Qualification
Development.
The Company won the main
prize of the Best Socially-
Oriented Company of the
Energy Sector contest held
by the Ministry of Energy
of Russia. Furthermore,
Rosseti FGC UES won
in the Labour Market
Development and Employment
Promotion category.
For more information,
please see “Key Performance
Indicators” (p. 51), “Personnel
Management” (p. 100)
and “Occupational Health
and Safety” (p. 111)
26
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2019 Annual Report
27
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KEY RESULTS OF THE YEAR
NATURAL
CAPITAL
Contributing to the environmental safety and sustainable
consumption of energy resources
Creating values
For external stakeholders
REDUCTION
IN GENERATED
WASTE COMPARED
TO 2018:
REDUCTION
IN WATER
CONSUMPTION
COMPARED TO 2018:
2 %
7 %
For Rosseti FGC UES
ENHANCING ENERGY EFFICIENCY
CERTIFICATION AUDITS OF THE EMS
Drivers
of our further
growth
Carrying out the
Environmental Safety
Policy Implementation
Programme
Compliance with the
Stockholm Convention’s
requirements related
to persistent organic
pollutants
How we
achieved
this
Achievement of objectives
set in the Environmental
Policy of PJSC FGC UES
is an integral and essential
part of the Company’s
activities
The Company’s environ-
mental management
system was certified
for compliance with ISO
14001:2015
The environmental risk
management was added
to the Company’s Risk
Management System
We pay special attention
to biodiversity conservation
in the regions where
the Company operates
Significant
events
Rosseti FGC UES confirmed
its status as the most
environmentally friendly
company in the electric pow-
er sector. A set of activities
were carried out to reduce
the environmental footprint.
The Company participated
in federal programmes
of flora and fauna resto-
ration.
The Company became
a prize winner of the Leader
of Environmental Protection
in Russia contest in the Best
Ecology and Energy Saving
Policy category.
In Moscow, a meeting
of the new commission
of the Union of Machine
Builders of Russia was held
chaired by A. Murov. It was
devoted to the development
and introduction of energy
efficient and energy saving
technologies.
For more information, please
see the Environmental Protection
section (p. 116)
28
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PJSC FGC UES
2019 Annual Report
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KEY RESULTS OF THE YEAR
SOCIAL RELATIONSHIP
CAPITAL
Maintaining a positive image and reputation of the reliable partner
Creating values
For external stakeholders
For Rosseti FGC UES
EDUCATIONAL, ART, ECOLOGY
AND SPORTS PROJECTS
TOTAL FUNDING:
RUB 184 MLN
HIGH CUSTOMER AWARENESS
PUBLICATIONS IN MASS MEDIA:
OVER 30 THOUSAND
(+31 % BY THE NUMBER
OF POSITIVE PUBLICATIONS
AGAINST 2018)
LOYALTY AND EMOTIONAL INVOLVEMENT
OF COMPANY EMPLOYEES
MAINTENANCE OF THE REPUTATION
OF A RELIABLE PAYER, AS WELL
AS HIGH CREDIT RATINGS
HEALTH AND LIFE INSURANCE
OF PERSONNEL
RUB 14.5 MLN
COSTS OF INSURANCE
COSTS OF INSURANCE:
RUB 285 MLN
Reliable
electricity supply
Customer
satisfaction
How we
achieved
this
The Company’s social
investment costs
Consistent interaction with
all stakeholder groups
Maximum transparency of
the information provided
in full and disclosed in a
timely manner
Active participation in
congress and exhibition
activities at national and
international levels
Drivers
of our further
growth
Continuous communication
with representatives of
interested parties
Efficient interaction with
authorities
Further increase in
customer satisfaction
Improvement of the
information disclosure
system
Implementation of projects
to support culture, art and
sports
Significant
events
With the Company’s support,
the Hermitage Museum
organised an exhibition called
The Morozov Brothers. Great
Russian Collectors.
With support of Rosseti FGC
UES, the national rugby team
participated in the World Cup
for the first time since 2011.
For more information,
please see The
Company’s Social
Policy (p. 108) and
Development of
Regions and Charity
(p. 127) sections
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Annual Report 2019
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2019 Annual Report
31
[35] INDUSTRY OVERVIEW,
STRATEGY, RISKS AND KPI
[60] PERFORMANCE HIGHLIGHTS 2019
• Operational Results
• Analysis of Financial Performance
• Sustainable Development
and Corporate Social
Responsibility
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY The unique advantages of integrated
reporting are strategic focus and
orientation towards future. The Strategic
Report section contains information
reflecting both achieved and planned
strategic indicators of the Company’s
performance, includes information that
allows to compile a complete view
of the effectiveness of the Company’s
operations, including in comparison
with other enterprises in the industry.
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ INDUSTRY OVERVIEW ]
Industry Overview
Global trends
Global electric energy industry is going through a large-scale
changes requiring adjustments in strategic plans of industry development
and its process model. There is a demand for changing electric grids
as an essential basis for development of the modern production
and energy balance shifts.
Global trends directly or indirectly affect Company’s
operations. The Company monitors these trends,
but also strives to respond to them in a timely
manner, assessing potential risks and opportunities
in advance. The most significant global trends
in the electric power industry which could impact
the Company’s operations are as follows.
Increase in the share of electricity in the total
volume of consumed power. The universal,
manageable and convenient nature of electricity
make this type of energy the best for modern
industrial procedures and procedures of
transformation of the human environment.
Diversification of electricity sources
(decentralisation). With restrictions on
the extraction of traditional fossils of primary
energy carriers, the share of renewable energy
sources is growing.
Increase in irregular consumption of
electricity with growth in the number of
consumers and generation sources. This
results in the necessity to improve flexibility
in grid operations when managing power flows
on electricity transmission lines.
Development of digital technologies
(digitalisation). Significant growth of information
flows along with the use of technologies for
flexible management of transmission capacity,
improvement of grid control and management
systems, the need to increase the speed of data
processing and decision making processes
make it necessary to use digital technologies.
Russian energy sector still maintains its defining
influence on the decision-making process
regarding vital strategic objectives of the country
development. It is primarily attributed to the new
energy infrastructure which will allow to ensure
accelerated social and economic development
of West Siberia and Far East, strengthen
material and export potential of the country.
In addition, it is planned to overcome the lack
of infrastructure integration and develop new
territorial production clusters based at the power
supply and processing plants under construction.
The Russian Government approved the
Comprehensive Plan for Modernisation and
Expansion of the Transmission Network
Infrastructure5. Its implementation implies
application of innovative and digital technologies
providing for both new quality of service for
individuals and businesses. This ambitious
task will require coordinated efforts to be taken
by infrastructure sectors, regions, equipment
manufacturers and the financial sector.
5 Approved by Order No. 2101-r of the Russian Government
of 30 September 2018.
PJSC FGC UES
2019 Annual Report
35
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY ?
ANSWER:
One of the global trends in the electric
energy industry is decentralisation —
development of distributed production,
energy accumulation technology, etc.
How does it affect the UNEG development?
The consumers’ inclination towards cost optimisation and decarbonisation encourages the development
of the distributed and RES production, as well as the associated technologies. However, at the same time,
deep digitalisation of processes at the customers’ side leads to high demand for security. Alternate elec-
tricity suppliers are yet unable to provide this without doubling connection facilities in the centralised energy
supply system. In addition, electricity suppliers and consumers are interested in achieving bigger flexibility
in terms of process solutions, as well as from the economic viability perspective. The Company reacts
to these trends by carrying out systematic work on reducing accident risk in the transmission network
complex, implementing digital solutions for substation automation, operational grid management, ensuring
technological connection to the UNEG of RES production facilities.
Macroeconomic trends 2019
PJSC FGC UES is the largest backbone transmission network company
in Russia. It accounts for 87% of all assets of the unified national (all-Russian)
electric (backbone) grid. In compliance with the Federal Law “On electric
energy industry”, PJSC FGC UES is responsible for managing the UNEG.
The volume, structure and dynamics of
the Company’s services depend on the general
state of the country’s economy. In recent years,
growth of the Russian GDP remains at a stable,
relatively low level (1.5–2 %). In near future,
this trend is likely to maintain. In 2019, energy
consumption (according to the operational data
of JSC SO UES) grew by 0.4 % against 2018.
According to the forecast of the Scheme and
Development Programme of the Unified Energy
System for 2019–2025 , the growth rate for
electricity consumption will remain low — around
1% per year on average. Significant growth
of electricity consumption will take place in
certain regions of intensive industrial growth and
development of social infrastructure (South of
Russia, Far East, Kaliningrad Region, etc.).
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ INDUSTRY OVERVIEW ]
Correlation of the prices for grid electric energy and
energy from own sources in centralised systems
stimulates transition of some customers to own
energy supply sources, and the energy supply
measures slow the specific energy consumption
growth down. External electric energy turnover
remains stable. Based on the mentioned factors,
Rosseti FGC UES does not expect volumes growth
for paid grid services in 2020–2022.
At the same time, the Company continues to
implement investment projects in network nodes
where the increase in electricity consumption leads
to the need of increasing throughput capacity and
where it is required to provide technical improvement
of the network in terms of reliability.
As an active participant in the debt capital markets
(as of 31 December 2019, the Company’s debt
portfolio consisting of rouble bonds only was
RUB 224.3 billion), the Company is obviously
affected by changes in macroeconomic conditions,
at least in terms of the proposed market rates and
the time periods for attracting new financing.
Due to the presence of floating rate bonds in
the borrowed funds of a coupon tied to the inflation
rate (RUB 150 billion or more than 60% of the total
debt, attracted at the rate of inflation +1... 2.5%
annually), the Company is also subject to the risk of
changing interest costs on existing borrowings due
to fluctuations in inflation in the country.
Despite certain inflation growth at the beginning
of 2019, the following events showed its localised
nature and confirmed the ability of authorities
to effectively manage inflation risks. By the end
of 2019, inflation came down to 3%. According
to the basic scenario of the Bank of Russia,
it is forecast that inflation in mid-term perspective
remains around 4%. Taking into account these
circumstances and the Company’s right for early
bond redemption at its discretion if the coupon
rate exceeds 10% per annum, the risk of changing
interest costs is considered to be acceptable.
Opportunities and risks for Rosseti FGC UES
Strengths
Weaknesses
Continuous control of the Company’s activities
Major dependence on decisions of state
administrative bodies including tariff regulation
and development of the investment programme.
High capital capacity.
by the government.
Low sensitivity to short-term fluctuations of market
conditions regarding demand for grid services.
Extensive experience in the field of management,
operation and development of electric grids.
Focus on innovative development and advanced
technologies.
Highly qualified personnel.
Strong financial performance and a balanced
loan portfolio.
High level of corporate governance.
Solid reputation among partners and investors.
Opportunities
Threats
Electricity consumption in Russia in 2014–2018 and forecast for 2019–2024, bln kWh
Application of innovative energy-saving technologies.
Decrease in demand due to production decentralisation
1,143
1,139
1,126
1,115
1,104
1,094
1,056 1,059
1,039
1,027
1,008
2015
2016
2017
2018
2019
2020
forecast
2021
forecast
2022
forecast
2023
forecast
2024
forecast
2025
forecast
Sources: Reports of the System
Operator, the Scheme and
Development Programme for
the Unified Energy System
of Russia for 2019–2025.
6 Approved by Order No. 174
of the Ministry of Energy of Russia
of 28 February 2019.
Improving the efficiency of grid asset management.
Reduction of operating costs.
Connection of new consumers to the UNEG.
and deterioration of general market situation.
Growth in operational costs due to overstatement of
the capacity specified by consumers during capacity
technological connection.
Refusal of applicants to implement their own
development projects, which may lead to a reduction
inrevenue of the Company from technological
connection services.
Errors in predictions of the grid development, and in
the composition and structure of the Investment
Programme.
Rosseti FGC UES has considerable potential for further development. The Company’s weaknesses and threats
are estimated on a continual basis as part of the risk management process, while the management team takes
actions to reduce possible adverse effects.
36
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
37
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ INDUSTRY OVERVIEW ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
Development Strategy
When determining its strategic development priorities, the Company
is guided by the priorities of state policy in the field of the electric grid
complex.
Top level document of Rosseti Group is the Development Strategy of PJSC Rosseti and its subsidiaries
and affiliates (Rosseti Group) until 2030, approved by the Board of Directors of PJSC Rosseti
(minutes No. 388 of 26 December 2019).
The main strategic priorities of the state policy
are determined in the Development Strategy of
the Russian Electric Grid Complex until 2030:
The Company’s strategic objectives are achieved
through adoption and implementation of a number
of programmes, in particular:
long-term reliable, high-quality and affordable
Long-Term Development Programme;
energy supply to consumers;
ensuring reliable and safe operation of the electric
grid complex;
developing the most efficient grid infrastructure
in line with global standards;
maintaining the tariff level, which provides for
an acceptable level of electricity costs for the
Russian economy and supports the investment
attractiveness.
Investment Programme;
Innovative Development Programme;
Unified Technical Policy;
Corporate Plan of Import Substitution;
Energy Saving and Energy Efficiency Programme;
Programme to Improve Investment and Operating
Efficiency and Reduce Costs;
Environmental Programme.
Comparison of Rosseti FGC UES with certain foreign public power grid companies engaged
in monopoly activity for electricity transmission through the transmission networks7
Length of power
transmission
lines,
thousand km
Operating costs per 100 km
of power transmission lines,
EUR mln (2016 data)
Capitalisation*,
EUR mln
146
106**
44
74**
14
27
1.46
1.34
1.27
1.53
3.16
–
3,682
–
9,671
11,739
–
991
No.
Company name
Headcount
1
2
3
4
5
6
PJSC FGC UES
22,052***
RTE
RED Electrica
–
1,799
Terna Rete Italia S.P.G.
4,252
Fingrid
KEGOC
380
4,797
* As of 31 December 2019.
** Including distribution networks.
*** Average staff number.
Comparison of Rosseti FGC UES with some Russian public power companies with the most capitalised
and liquid shares among those listed in the MOEXEU sector index
No.
Company name
Capitalisation,
RUB bln
Average annual
trading volume
on the Moscow
Exchange,
RUB mln
EBITDA,
RUB bln
EBITDA
profitability
Dividend yield*
EV/EBITDA
1
2
3
4
5
PJSC FGC UES
256.6
207.0
140.7
56.4 %
10.8 %
PJSC Inter RAO
526.4
653.7
141.5
13.7 %
4.4 %
PJSC Unipro
153.6
76.8
PJSC RusHydro
209.7
284.0
PJSC Mosenergo
62.7
25.7
29.3
97.5
41.1
36.5 %
4.3 %
26.6 %
7.6 %
21.7 %
10.2 %
3.1
1.2
5.9
3.6
2.7
Source: Moscow Exchange data, Bloomberg data
* Dividend yield is calculated as the ratio of dividends paid in 2019 per share to the share price
as of the beginning of 2019 (excluding dividends paid for the 9M 2019 results).
7 The table data provided as of 31 December 2018.
38
Annual Report 2019 PJSC FGC UES
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2019 Annual Report
39
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
Strategic Priorities
of Rosseti FGC UES in 2019
Strategic Priorities8
Why it is
important
Reliability and quality
of energy supply
to consumers
The power supply of large
industrial enterprises and cities
depends on the reliability of UNEG
operation. Limitations or cuts in
electricity supply to end
consumers can have serious
economic and social
consequences.
The transmission network shall
meet the physical conditions and
limitations in terms of power,
frequency, voltage, and stability,
and provide the necessary
reserves to withstand unforeseen
fluctuations in demand,
unexpected equipment failures,
and avoid loss of load and
cascade tripping.
Development
of UNEG infrastructure
Customer
satisfaction
Effective governance
Financial sustainability
Development of the UNEG
makes it possible to expand the
geographical boundaries of the
competitive electricity and
capacity market, providing for
entry into the market of new
generation sources and
consumers in order to balance
demand and supply in various
grid nodes with high reliability
and cost effectiveness.
Through technological
connection, the Company
fulfils the objective to
provide consumers with
the available
infrastructure and
conditions for economic
growth.
When carrying out
activities related to
transmitting electricity,
the Company shall
ensure continuous power
supply to consumers.
Limitations of the electricity price (tariff) growth
rates slow down the increase in operating costs
and the allowable amount of investments in upgrading
and renovating electric power grids.
In the context of tariff restrictions and stabilisation
of the scope of grid activities, the Company needs
to improve its internal efficiency to ensure further
technological development and create profit
for shareholders, which will also be re-invested
in the production, including equipment renovation
and modernisation.
Improvement of the investment efficiency
is associated with the optimisation of financing
sources.
Rosseti FGC UES strives to find a balance
of using the Company’s own funds, borrowed
funds and other sources. The high financial
stability indicators of the Company contribute
to attracting capital under favourable terms.
The financial stability guarantees the Company’s
solvency and its investment and reputation
attractiveness for shareholders, investors,
and contractors in the long term within
the acceptable risk level.
How we measure
the result
Absence of any increase
in major accidents.
Achieving the required reliability
level of services provided.
Risks affecting
the achievement
of strategic
priorities
The risk of failure to achieve
the reliability level of electricity
transmission services,
established under tariff
regulation.
Implementation
of the commissioning schedule
of facilities.
Increase in capacity utilisation
of electric grid equipment.
Reduction of unit investment
costs.
The risk of failure to deliver key
parameters of the investment
programme.
Risk of failure to fulfil decrease in
specific investment costs
established for the target period.
Risk of failure to achieve the
capacity utilisation rate established
for the target period.
Meeting technological
connection deadlines.
Achieving the required
reliability level of
services provided6.
Risk of failure to
achieve the quality
level of technological
connection services
established under
tariff regulation.
Growth of financial and economic indicators
(consolidated net cash flow, EBITDA).
Reduction of unit operating costs and specific
investment costs.
Growth of labour productivity.
Efficiency of innovation activities.
Risks of deviation from values established
in the business plan: volume of electricity
transmission services, volume of technological
connection services, non-influenceable costs,
average tariff for electricity transmission,
net profit, performance.
Risk of increase in the level of operational
costs established for the year.
Strict fulfilment of obligations to bond holders,
maintenance of the required liquidity level,
compliance with the debt-load limits approved
by the Board of Directors. Reduction
of the overdue accounts receivable.
Risk of deviation of overdue account receivables
from the amount set
in the business plan.
Risk of fluctuation in the Debt/EBITDA
indicator from the value set
in the business plan.
8 Based on the approved LDP 2015–2019.
9 The indicator is calculated in compliance with the Methodological Guidelines approved by the order No. 1256 of the Ministry of Energy of Russia
dated 29 November 2016.
40
Annual Report 2019 PJSC FGC UES
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2019 Annual Report
41
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
Long-Term Development Programme
In 2019, the validity period of the Long-Term Development Programme (LDP)
established10 in 2014 came to an end. Main directions of the Company’s strategic
development are specified in the LDP for 2020–2024.
In the LDP established in 2014, 11 objectives
were determined, covering all aspects of the
Company’s activities: investment activity, stable
operation of UNEG of Russia, technological
connection, financial stability, saving of
expenses. Implementation of major investment
projects (including energy supply to BAM,
TransSib, BRELL, projects on providing energy
infrastructure for international sports events) was
cosidered.
During implementation of the LDP established
in 2014:
reliability and quality of the services
were improved;
measures for reducing specific
investment costs were implemented;
measures for increasing operating
efficiency were gradually implemented.
GRI 102-21, 102-43
The process of reviewing and approval of the Long-
Term Development Programme with key stakeholders
is governed by the Methodological Recommendations
on Preparation of Long-term Development Pro-
grammes of the Ministry of Economic Development
of the Russian Federation, individual resolutions
of the Government of the Russian Federation,
and the Company’s internal documents. In com-
pliance with the existing procedure, the LDP of the
Company is going through a validation process in
the federal executive bodies, and, at the final stage,
will be approved by the Government of the Russian
Federation. The primary site for document discussion
is the Strategy Committee of the Company’s Board
of Directors, which discusses the LDP prepared
by the management, and once approved,
it is distributed among stakeholders.
In order to monitor the implementation
of measures and the achieved actual values
of the Company’s performance indicators
determined in the LDP 2014, an audit was
carried out, the results of which are presented
in the Audit Report dated 8 April 2020. Based
on the analysis results, the reliability level
of the Company’s actual performance indicators
was determined and the actual indicators were
found to conform with their target values.
The LDP of PJSC FGC UES for 2020–2024 is
developed in compliance with the target points and
provisions of the Electric Grid Complex Development
Strategy of the Russian Federation.11
In the course of development of the new LDP,
external challenges and internal factors objectively
affecting Company’s operations were taken into
account.. The Company’s actions are driven by
the need to increase efficiency of its activities while
maintaining high levels of energy supply for
the users of the transmission network. At the same
time, FGC UES strives to firm achievement of
target points for improving efficiency established
by state administration: increasing performance,
reducing operational costs, increasing investment
performance, improving production asset
management.
Currently, the LDP of the Company has been already
approved by the Ministry of Energy of Russia, Ros-
imushchestvo, and the Ministry of Economic Devel-
opment of the Russian Federation, reviewed by the
Ministry for the Development of the Russian Far East
and Arctic and sent to the Government of the Russian
Federation.
The Company prepares annual reports on LDP prog-
ress which are evaluated by an independent auditor
and then the Company’s Board of Directors. Annual
reports are sent to the Ministry of Economic Develop-
ment of the Russian Federation, Ministry of Energy
of Russia and Rosimushchestvo, including by means
of the Intergovernmental Portal. Representatives
of the industry communit and the federal executive
bodies are members of the Strategy Committee,
and discuss LDP when reviewing quarterly
progress reports.
10 Approved by the resolution of the Board of Directors, minutes No. 243 of 22 December 2014.
11 Approved by Directive No. 511-r of the Government of the Russian Federation of 3 April 2013.
42
Annual Report 2019 PJSC FGC UES
?
ANSWER:
DISTINCTIONS AND FEATURES
OF THE NEW LDP
How does the Company’s Strategy change?
The new LDP mainly maintains continuity regarding the previous version of the document. At the same time,
new approaches to solving constant basic objectives of the Company — maintaining and developing UNEG,
ensuring reliability of the energy supply — were developed..
Implementation of the new, digital design, unification and distribution of project documentation and engineering-
geological studies results become a priority.
In accordance with the current global trends, major attention is paid to the implementation of innovative
technologies. The Digital Substations programme is planned to be expanded. Implementation of cutting-edge
technology is expected to increase equipment reliability and network monitoring and control, reduce the impact
of the human factor, and lower the number of failures and time required to liquidate their consequences.
Fulfilment of these objectives requires changes in financing volumes and principles, as well as new approaches
to assessment of the achievement level of the established goals. For example, the process for improving
investment efficiency instead of the level of cost decrease will be assessed with acceleration of the designing
terms, application of cutting-edge technologies, and reduction in faults taken into account.
This way, the Long-Term Development Programme takes into account current risks which can affect
the implementation of the Company’s strategic plans, and provides for measures for their mitigation,
as well as includes implementation of measures stipulated in the May Decree of the President
of the Russian Federation.12
12 The national goals and strategic development objectives of the Russian Federation until 2024 were determined in Decree No. 204
of the President of the Russian Federation dated 7 May 2018.
Reacting to emerging challenges and industry
trends, the Company has developed the updated
Long-Term Development Programme effective until 2024.
Key operational priorities remain unchanged.
However, we significantly improved the tools used
for their achievement. We emphasised application
of cutting-edge technologies, increasing performance,
improving efficiency of all business processes.
This will allow to maintain the Company’s competitiveness
and generate value for various stakeholder groups.
Aleksandr Zaragatsky
First Deputy Chairman of the Management Board of PJSC FGC UES
Member of the Management Board of PJSC FGC UES
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
The new Long-Term Development Programme is developed based on the continuity principle relating
to the approved LDP 2014, but with new trends and challenges taken into account.
Subject areas
Investments
Modern trends
Future strategy
The Company’s volume of electricity transmission
services has stabilised. Projects for increasing
network services are mainly planned for the Far
East region and the South Federal District.
Investments in cutting-edge technology.
Improving reliability of electricity supply.
Improving quality of design and implementation
of project.
Production
Improving reliability and ensuring flexibility
of transmission network management remain
a regular objective of Rosseti FGC UES.
Development of the production assets
management system.
Expansion of automated control technology
implementation, remote control, digital
substations, and other digital technologies.
Transition to risk-oriented asset management.
Improvement
of pricing and
maintaining
financial stability
The Company’s financial condition has been
significantly improved.
Maintaining tariff regulation for Rosseti FGC UES
services by the means of return on investment
helps to stabilise the Company’s economic targets.
Maintaining dividend yield at the level expected
by shareholders.
Ensuring flexible debt and liquidity management.
Technological
connection
Innovations,
digitalisation
and import
substitution
Implementation practice for technological
connection on the SPV principles was
not common among network users.
The issue of customer debt for finished
production facility projects was mainly solved.
Improving attractiveness of technological connection.
Development of interactive services for handling
applications.
Reducing the share of accumulated outstanding
obligations under technological connection.
Implementation of the Innovative
Development Programme and the Import
Substitution Policy
Continuing work under the seven innovative
development directions.
Development of the industry infrastructure,
support in creating and developing domestic
corresponding production facilities, as well as
stimulating increase in levels of electric
and technical production localisation
in the Russian Federation.
Implementation of the Digital Transformation
Programme of PJSC FGC UES 2019–2030
Operating efficiency
The Company continues its work on improving performance and reducing operational costs.
44
Annual Report 2019 PJSC FGC UES
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
Delivering on Our Strategy
1. Reliability and quality
of energy supply to consumers
Contribution of 2019 results to delivering the Strategy
Plans and targets until 202413
Планы и целевые ориентиры до 2024 года13
Through the
introduction of
new equipment,
improvement of skills
and professionalism of
maintenance personnel
and other efforts,
the specific accident
rate at FGC’s facilities
dropped by 12 %.
International benchmarking has shown
that the reliability and security of electric
power transmission in the Company
(indicators of the average duration of
interruption, undersupply, number of
accidents) are up to par with the best
analogues.
Number of accidents at Rosseti
FGC UES facilities, events*
Electricity undersupply dynamics
with Rosseti FGC UES, MWh
1,879 1,869
1,535
1,321
1,176
1,562
1,093 1,156
1,646
1,531
1,423
2015
2016
2017
2018
2019
2014
2015
2016
2017
2018
2019
* Starting from 1 January 2017, in accordance with the Production Meeting Minutes of PJSC FGC UES
and JSC SO UES technical management, the events related to decommissioning SS and overhead
line equipment upon urgent dispatching orders and disruptions in SCS operation which do not fall
within the scope of paragraph 4 of the Accident Investigation Rules in Power Industry were investigated
and recorded in addition to the existing accident investigation process. For the proper comparison
of the number of accidents, information on the accident rate in 2014–2016 was supplemented with
the above-stated events based on the materials submitted by JSC SO UES.
The reliability of electricity transmission services will be
maintained at a consistently high level thanks to
the following factors:
timely identification and analysis of factors that
impact the reliability and production safety;
adherence to the Unified Technical Policy and
implementation of the Innovative Development
Programme;
implementation of the retrofitting and upgrading
programme;
implementation of the maintenance and repair
programme;
implementation of the lighting-surge proofness
improvement programme;
improvement of the UNEG monitoring and control
level;
development of the production assets
management system.
M&R costs, RUB mln
14,779
14,490
14,206
13,927
13,654
2020
Target
2021
Forecast
2022
Forecast
2023
Forecast
2024
Forecast
The Maintenance and Repair Programme (M&R) is one
of the key tools, driving safe operation of electric grid
facilities.
Our lighting-surge proofness improvement programme
will enable us by 2026 to reduce process disruptions
in high-voltage lines to 32 % against 2017.
In 2019, the electricity undersupply indicator fell by 7.1 % to 1,423 MWh
compared to 2018.
13 All target values provided herein and in the tables below are given in compliance with PJSC FGC UES’s Business Plan 2020 and forecasts
for 2021–2024 (approved by the resolution of the Board of Directors of PJSC FGC UES, minutes No. 476 of 13 December 2019).
2. UNEG Expansion
Contribution of 2019 results to delivering the Strategy
Plans and targets until 2024
Планы и целевые ориентиры до 2024 года13
In 2019, as part of the investment
programme, the Company carried
out several major projects for
the construction of overhead lines
and substations, including in the Far East
and Western Siberia.
(OHL 220 kV Ust-Ilimsk HPP – Ust-Kut No. 2;
SS 220 kV Sukhoi Log with single-chain OHL
220 kV Peleduy – Sukhoi Log and two
single-chain OHL 220 kV Sukhoi Log –
Mamakan; OHL 220 kV Komsomolskaya —
Selikhino — Vanino, and reconstruction of
SS 220 kV Petrovsk – Zabaikalskaya)
Capability implementation
dynamics (setting under voltage)
Investment financing volume dynamics,
RUB bln
9
6
.
5
7
0
.
4
2
3
.
2
6
6
.
0
2
4
.
0
0
8
.
0
9
6
.
3
6
3
.
2
6
1
.
3
8
8
.
1
- Transformer
capacity,MVA
- Electricity
transmission
lines, ths. km
85.89 90.69 95.61 103.33
149.75*
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
The investment programme financing totalled
RUB 149.8 billion.
* Including the non-cash part of
RUB 34.8 billion in the framework of electric
grid asset exchange with JSC DVEUK.
The Company’s priority projects for the development
of UNEG infrastructure until 2024 include:
projects aimed at implementing power
distribution schemes for power plants (NPPs,
HPPs, TPPs, generation based on renewable
energy sources, upgrade of existing power plants);
implementation of measures of providing
external power supply to PJSC Gazprom facilities
during the construction of gas producing, gas
transporting and gas processing capacities
in the Far Eastern federal district (Power of Siberia
complex project);
electrification of the West-East and North-South
transport corridors along with the Baikal-Amur and
Trans-Siberian railways to increase freight traffic
up to 180 million tonnes in conjunction with
the transport infrastructure development;
investment projects for the provision of electricity
to enterprises and oil and gas fields.
Planned dynamics for investment in
the fixed capital, RUB bln*
126
118
116
104
91
2020
2021
2022
2023
2024
*Scheduled financing parameters in accordance with the approved
investment programmes (IPs) of PJSC FGC UES (Order of the
Ministry of Energy of Russia No. 36@ dated 27 December 2019).
46
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2019 Annual Report
47
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
3. Customer satisfaction
Contribution of 2019 results to delivering the Strategy
Plans and targets until 2024
Планы и целевые ориентиры до 2024 года13
According to the participants of the annual customer satisfaction
survey in 2019, the readiness of Rosseti FGC UES employees
to settle disputes in a constructive manner in the course of
technological connection, as well as the level of the Company’s
compliance with deadlines established by applicable law,
significantly increased.
The index of customer satisfaction with
the technological connection service
raised year-over-year and reached
the level of 9.33 (out of 10) (+ 0.3 %).
Dynamics of consumer connections to Rosseti FGC UES,
capacities, and electric energy production facilities, MW
Uninterrupted power supply
to consumers.
Forecast of capacity to be connected in 2020–2022,
MW*
4,949
2,766
5,419
2,653
8,944
2,982
3,916
4,053
2,744
1,972
2015
2016
2017
2018
2019
- Electric energy production
- Consumers
facilities
and grid companies
Priority fulfilment of investment projects
for the technological connection in
the contractual/regulatory term.
Improving the quality of contractual
obligations on technological connection.
5,278
5,317
4,459
2020
Target
2021
Forecast
2021
Forecast
*The indicator is based on the applications for TC currently submitted. Since these volumes may be significantly adjusted in future, the long-term
forecast is not informative.
4. Effective governance
Contribution of 2019 results to delivering the Strategy
At the end of 2019, the Adjusted EBITDA amounted to RUB 129.4
billion, demonstrating only a slight increase against the prior-year
comparative (0.31%).
Reduction in controlled operating costs and amount of savings (actual)
Indicator
2012
2013
2014
2015
2016
2017
2018
2019
34.2
33.5
30.4
27.4
26.3
26.3
28.67
29.87
34.2
31.3
26.4
20.6
18.5
18.5
18.86
18.81
- 8 %
- 23 %
- 40 %
- 46 %
- 46 %
- 45 %
- 45 %
Unit costs in
current year
prices (RUB
thousand/c.u.)
Unit costs in
prices for 2012
(RUB thousand/
c.u.)
Effect of the
electrical
installation code
(%)
Adjusted EBITDA*, RUB bln
129.3 129.0
129.4
119.7
99.6
103.7
2014
2015
2016
2017
2018
2019
* Excluding operations for the accrual and restoration of provisions for doubtful debts, financial performance related to the sale of and change in the cost of quoted financial
assets, and revenues from technological connection.
Earnings per share, RUB
0.0832
+3.5 %
0.0441
0.0456
0.0332
0.01402
0.00404
2014
2015
2016
2017
2018
2019
The Company’s net profit
in 2019 grew to RUB 58.1
billion, earnings per share
saw an increase of 3.5 %
compared to the previous
year.
Планы и целевые ориентиры
Plans and targets until 2024
до 2024 года13
The annual reduction in controlled operating costs amounted to 2 %;
Increase in labour productivity in 2020 amounted to at least 2 %, and
starting from 2021— to at least 5 % annually.
The annual increase in labour productivity amounted to at least 5 %.
Technological and price audits of investment projects and investment
programmes.
Improvement of the investment planning quality.
Improvement of the design work quality using the capabilities
of information support and digital technologies.
Rise in the share of retrofitting and upgrading activities
in the Company’s investment programme structure.
EBITDA forecast*, RUB bln
133
129
122
122
125
2020
2021
2022
2023
2024
*Excluding operations for the accrual and restoration of provisions for doubtful
debts, financial performance related to the sale of and change in the cost of
quoted financial assets, and revenues from technological connection.
48
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2019 Annual Report
49
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ DEVELOPMENT STRATEGY ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KPI ]
5. Financial sustainability
Contribution of 2019 results to delivering the Strategy
In 2019, the Net debt/
EBITDA ratio was down
to 1.33, indicating
a reduction in the
Company’s debt burden.
The current liquidity ratio is 1.18 and
remains within standard values.
The Company does everything that
it takes to maintain its credit ratings
at a sovereign level (not lower
than the credit rating of obligations
of the Russian Federation).
To date, according to the scales of
international rating agencies S&P,
Moody’s, and Fitch, the credit ratings
of PJSC FGC UES areat a sovereign
level; the rating assigned by JSC ACRA
agency is AAA (RU), the highest one
on a national scale.
Financial stability indicator of Rosseti FGC UES
0.37
2.12
0.33
0.31
1.92
1.87
1.53
1.74
0.23
1.19
0.2
1.64
1.37
1.33
1.18
- Debt to equity ratio
- Net debt to EBITDA ratio
- Current liquidity ratio
2015
2016
2017
2018
2019
The Company intends to finance Rosseti
FGC UES’s operating and investment
activities in line with the established debt
burden restrictions, while maintaining its
credit ratings at a sovereign level.
The Company is committed to
a balanced credit policy within
the framework of current Regulation
on Credit Policy;
if necessary, prompt adjustment
of the investment programme
financing in order to limit the debt
burden and increase resistance
to external shocks;
continuous work with credit rating
agencies and the investment
community aimed to maintain and
increase the business transparency
and consistency, which will help
to support high credit ratings of
the Company and reduce the risk
premium in the fee for borrowed
funds used.
Net debt/EBITDA forecast
1.77
1.85
1.82
1.59
1.54
2020
target
2021
forecast
2022
forecast
2023
forecast
2024
forecast
The maximum target value for the Net debt/EBITDA indicator is 3.
Key Performance
Indicators
The Company has a system for measuring targets based on key
performance indicators (KPIs) in place and provided management
motivation to meet the KPI targets that characterise the achievement of
development goals by the Company.
This system is quarter- and annual-based and is
applied to managers at all levels: senior management
and heads of structural divisions of the Company’s
Executive Office and branches, along with
subsidiaries.
The motivation system is based upon KPIs that
are established to assess the performance of and
bonuses to be paid to the top management,14 as well
as the Company’s objectives as part of the LDP and
the Business Plan.
The Company operates a multilevel KPI system:
Company (KPIs of top managers), Executive Office,15
and branches (MES, EMPS).16 At each management
level, KPIs are established and monitored at a higher
level of management, thus making it possible to apply
an end-to-end control mechanism.
Objective setting
The Company’s development strategy
as defined in the PJSC FGC UES Long-Term
Development Programme
Goals and objectives
of the branches
set in the executive
documentation
of the Company
and its branches
PJSC FGC UES management responsible
for the achievement of objectives
and KPIs
Chairman of the Management Board,
members of the Management Board
Deputy Chairmen
of the Management Board,
Executive Office directors
Department Heads,
managers of the Executive
Office directorates
CEOs of the MPS branches,
EMPS directors,
deputies of MPS CEOs
(EMPS directors)
by activity
Heads of services
and departments
of the MPS
and EMPS
branches
KPIs
of top managers
KPIs
of Executive Office
managers
KPIs
of structural unit heads
in the Executive Office
KPIs
of heads of PJSC FGC UES
branches
KPIs
of heads of PJSC FGC UES
branches’ units
14 KPIs are set according to the Methodology for KPI Calculation and Assessment of Target Achievement by Top Managers approved by the Board
of Directors (Minutes No. 370 of 13 June 2017), taking into account the meeting minutes of the Board of Directors No. 474 dated 26 November 2019
and No. 480 dated 27 December 2019.
15 The Regulation on Key Performance Indicators of PJSC FGC UES’s Executive Office and Branches was approved by PJSC FGC UES (Order No. 519
dated 11 December 2017). The KPI system developed for the heads of the Company’s Executive Office and divisions of branches was adopted by
Order No. 145 of PJSC FGC UES dated 29 April 2016, On Approval of the Methodology for KPI Calculation and Assessment of Target Achievement by
the Heads of PJSC FGC UES’s Executive Office and Divisions of Branches (MES).
16 The KPI system developed for the heads of the Company’s branches was approved by Order No. 143 of PJSC FGC UES dated 26 April 2016,
On Approval of the Methodology for KPI Calculation and Assessment of Target Achievement by the Heads of PJSC FGC UES’s Branches.
Plans and targets until 2024
Планы и целевые ориентиры
до 2024 года13
Goals and objectives of the functional
units set in the Company’s executive
documentation
50
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51
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KPI ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KPI ]
Amendments introduced
into the KPI system in 2019
The Company approved17 a number of amendments to the Methodology for KPI Calculation
and Assessment of Target Achievement by Top Managers of PJSC FGC UES,18 which are in effect
since 1 January 2019. The key amendments are as follows.
1. The Absence of Increase in Major Accidents KPI calculation methodology was clarified in terms
of the requirements of the rules for investigating the causes of accidents in the electric power
industry, approved by Decree of the Russian Government No. 846 dated 28 October 2009, as
well as taking into account the accident rate for the past years on the adopted networks upon their
consolidation with Rosseti FGC UES when determining the average quarterly number of accidents
in the Company as a whole.
2. With the Company’s transition to the use of Pens indicator in tariff regulation as well as taking
into consideration the provisions of Order No. 1256 of the Ministry of Energy of Russia dated
29 November 2016 (Methodological Guidelines for Calculating the Reliability and Quality Level),
amendments were introduced to the Achievement of Reliability of Services Provided annual KPI.
3. The Compliance with the Commissioning Schedule annual KPI is converted to a quarter-based
indicator (since 1 July 2019). The target value of the new quarter-based KPI Compliance with
the Commissioning Schedule was set at the annual level of 2018.
4. The Efficiency of Innovation Activities KPI calculation methodology was supplemented with
regard to the use of regulatory documents relevant to the time of forming the report on the indicator
achievement.
5. The Respect of Deadlines for Technological Connections KPI calculation methodology introduced
an indicative indicator that considers the task of reducing the volume of contracts for which
technological connection deadlines are violated due to untimely fulfilment of obligations, including
by the applicant.
6. With a view to specify the classification of accidents in the reporting period, amendments were
made to the Absence of Increase in the Number of People Injured in Accidents KPI calculation
methodology, providing for attributing an accident to the reporting period in case the investigation
is completed no later than one month after the reporting quarter. If the investigation takes too
long (more than the indicated period), the accident shall be recorded in the quarter upon signing
of the accident investigation act.
The target values of KPIs of PJSC FGC UES’s top managers for 2019 were approved by resolution
of the Board of Directors on 25 November 2019 (Meeting Minutes of the Board of Directors No. 474
of 26 November 2019). Keeping in mind particularities of the KPI calculation methodology, the majority
of target KPI values were set at the previous year’s level, except for updated target values of Level
of Electricity Losses and Consolidated Net Cash Flow indicators.
KPIs in the context of strategic goals
GRI 103-3
Strategic priorities
KPI
2018
Assessment
of KPI
achievement
Absence of increase
in major accidents
KPI was achieved
in all quarters
2019*
Target KPI
No increase
2019*
Assessment
of KPI
achievement
KPI was
achieved in all
quarters
2020
Target KPI
No increase
Reliability
of power supply
to consumers
Absence of increase
in the number of
people injured in
accidents
KPI was achieved
in Q2 and Q3
No increase
KPIs achieved in
all quarters
except Q4
No increase
Development
of UNEG
infrastructure
Customer
satisfaction
Financial
sustainability
Readiness for
operation in the
heating season*
Compliance with the
commissioning
schedule
Respect of deadlines
for technological
connections
Achievement of
reliability of services
provided
х
х
х
≥ 0.95
74 % (achieved)
≥ 90 %
Q3 — 95 %
Q4 — 105 %
≥ 90 %
1.0
≤ 1.1
1.0
≤ 1.1
0.22
≤ 1.00
Achieved
≤ 1
Consolidated net
debt/EBITDA**
KPI was achieved
in all quarters
Q1, Q2, Q3, Q4
≤ 3.0
KPI was
achieved in all
quarters
Debt/EBITDA
х
х
х
Implementation of the
Action Plan to reduce
account receivables
KPI was achieved
in all quarters
≥ 100.0 %
KPI was
achieved in all
quarters
х
≤ 3.0
х
Indicator of reduction
in account
receivables*
х
х
х
≤ 100 %
17 The resolution of PJSC FGC UES’s Board of Directors dated 27 December 2019 (Minutes No. 480 of 27 December 2019).
18 The methodology was approved by the resolution of the Company’s Board of Directors dated 7 June 2017 (Minutes No. 370 of 13 June 2017).
* The expected level of KPI achievement is shown for Q9 2019 and the full year 2019. The final actual values, taking into account the period and procedure
of report preparation, the source information needed for KPI calculation, are approved by the Company’s Board of Directors.
52
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KPI ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KEY RISKS ]
KPI in the context of strategic objectives (continued)
Strategic objective
KPI
2018
Assessment
of KPI
achievement
Consolidated profit
from operating
activities (EBITDA)**
KPI was achieved
in all quarters
2019***
Assessment
of KPI
achievement
KPI was
achieved in all
quarters
2019***
Target KPI
For Q1, H1 and
9 months of the
reporting period
≥ 0;
annual value
≥ 3.0 %
х
х
х
х
х
х
2020
Target KPI
х
Achieved
≥ 95.0 %
≥ MOEX EU index change
in the reporting period
х
х
х
RUB 21.6 bln
> RUB 5 bln
RUB 27.5 bln
х
10.6 %
≥ 2.0 %
5.1 %
≥ 2.0 %
Achieved
Achieved
Achieved
х
Achieved
≤ 4.57 %
4.15 %
≤ the value specified in
the Company’s Business
Plan
1.00
≤ 1.00
0.92
х
10.71 %
≥ 2.00 %
4.72 %
≥ 2.00 %
108 % 19
≥ 90 %
Not subject
to the
assessment 20
≥ 90 %
Effective
governance
Profit from operating
activities (EBITDA)*
Return on invested
capital
Total shareholder
profitability*
Consolidated net
cash flow**
Reduction in unit
operating expenses
(costs)
Increase in capacity
utilisation of electric
grid equipment**
Level of electricity
losses
Reduction in unit
investment costs**
Improving labour
productivity
Efficiency of
innovation activities
* The indicator has been applied since 2020.
** The indicator has not been applied since 2020.
*** The expected level of KPI achievement is shown for Q9 2019 and the full year 2019. The final actual values, taking into account the period and procedure
of report preparation, the source information needed for KPI calculation, are approved by the Company’s Board of Directors.
19 The Report on the Efficiency of Innovation Activities KPI achievement by top managers of PJSC FGC UES for 2018 is recommended for approval by the Company’s Board
of Directors (Meeting Minutes of the Management Board No. 1676 of 27 December 2019) and the HR and Remuneration Committee of the Board of Directors of PJSC FGC
UES (Minutes No. 70 of 23 January 2020).
20 KPI achievement can be assessed only upon the review of the Innovation Development Programme 2019 implementation report by Russian authorised federal executive
bodies (in accordance with the procedure approved by Instruction of the Russian Government No. DM-P36-7563 dated 7 November 2015, or any other document regulating
the procedure for monitoring and assessing the quality of development, update and implementation of innovative development programmes of joint-stock companies with state
participation).
Key risks
The Company approved a register21 of key operational risks (KORs) to assess
their impact on the Company’s performance; the materiality level is updated
every year, as well as risk management measures are taken.
Risk assessment is carried out using the scenario and/or expert method. The risk materiality
level is determined based on the results of the assessment in accordance with the materiality
levels (moderate, significant, critical) provided for in the Methodology for Operational Risks
Assessment.22
CRITICAL RISKS are considered unacceptable and subject to priority management.
SIGNIFICANT RISKS are not that critical, but significantly impact the Company’s operations
and are subject to management.
MODERATE RISKS do not have a significant impact on the Company’s operations, but are
subject to regular monitoring.
The Company’s activity is inherent in the following significant risks
Risk group,
list of risks
Risk
description
2
3
Risk
management
activities
4
Risk
significance
assessment*
and dynamics
5
No.
1
1
Financial
results and
creditworthiness
2
Financial
results and
creditworthiness
The risk of
deviation of
the actual
electricity
transmission
services
volume from
the value
set in
the Business
Plan
The risk of
deviation of
the actual
technological
connection
volume from
the value
set in
the Business
Plan
- Arrangement of measures aimed at settling and
preventing disputes with consumers of electricity
transmission services in part of the scope of such services;
- maintenance of the dialogue with consumers of electricity
transmission services with regard to the coordination
of the planned scope of services, including declared
capacity, to introduce them into respective contracts
and submit to state tariff regulation authorities.
- Control of the timely fulfilment of obligations under
technological connection contracts;
- handling of claims against applicant parties who have
exceeded the term of fulfilment of their technological
connection obligations before the Company;
- strengthening the responsibility of our contractors.
Scheduling the term of completion of procedures carried out
by the Company’s structural divisions, and implementing
measures to improve the control over scheduled deadlines at
all stages, from registration of an application for technological
connection to full-scale performance of contractual
obligations;
- quality control of materials prepared during the submission
of tariff application;
- timely submission of tariff application;
- monitoring and attracting new consumers;
21 Approved by resolution of the Board of Directors on 27 January 2015 (an extract of Meeting Minutes of the Board of Directors No. 248/1 of 29 January 2015).
22 Approved by Order No. 86 of 21 March 2016.
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KEY RISKS ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KEY RISKS ]
The Company’s activity is inherent in the following significant risks (continued)
The Company’s activity is inherent in the following significant risks (continued)
No.
1
Risk group,
list of risks
Risk
description
2
3
Risk
management
activities
4
Risk
significance
assessment*
and dynamics
5
No.
1
Risk group,
list of risks
Risk
description
2
3
Risk
management
activities
4
Risk
significance
assessment*
and dynamics
5
- timely activation of works within the framework of IP implementation;
- introduction of technological connection and investment plan actions in due
time;
- preparation of offers to be considered by executive authorities for
introduction of amendments to orders of the Russian Government No. 861
of 27 December 2004 and No. 1178 of 29 December 2011 regarding
the clarification of the procedure for concluding agreements for design and
estimate documentation development, extension of application submission
term in order to set a price for technological connection, and settlement of
relations with third parties in respect of technological connections;
- execution of the Programme for Technological Connection Efficiency
Improvement in Respect of PJSC FGC UES’ Electric Grids, and Increase of
Transformer Capacity Utilisation (approved by resolution of the Management
Board No. 1281/2 of 31 December 2014);
- fulfilment of PJSC FGC UES’ accumulated obligations under previously
concluded technological connection contracts, whose terms have been
violated by the Company;
- Ensuring the compliance of technical conditions of measuring instruments
with Decree of the Russian Federation No. 1172 of 27 December 2010 and
Federal Law No. 102 of 26 June 2008;
- timely and complete implementation of measures aimed at reducing
electricity losses.
The risk of
deviation of
expenditures on
the purchase of
losses from
the value set
in the Business
Plan
The risk of
deviation of
overdue
account
receivables
from the
amount set
in the Business
Plan
- Handling claims with an aim to reduce account receivables, along
with control of timely performance;
- complete and/or partial reduction of power supply to consumers in arrears;
- control of the performance of debt restructuring agreements;
- dialogue with the Federal Bailiff Service of the Russian Federation at
the enforcement proceedings stage, signing of cooperation agreements
with the Federal Bailiff Service of the Russian Federation, control of debt
payment in the framework of enforcement proceedings based on court
rulings related to recovery of overdue debts.
3
4
Financial
results and
creditworthi-
ness
Financial
results and
creditworthi-
ness
5
Investment
activities
The risk of
failure to deliver
key parameters
of the invest-
ment pro-
gramme
- Development and submission of draft amendments (adjustments) to target
indicators of PJSC FGC UES’ investment programme for 2016–2020
to the Ministry of Energy of Russia;
- approval by the regulator of the required gross revenue in a sufficient
amount for the Investment Programme implementation;
- timely approval of amendments (adjustment of) to target indicators
by the regulator;
- timely approval by the Company’s management bodies of target indicators
for the investment budget along with relevant amendments (adjustment)
in the Investment Programme, forming part of PJSC FGC UES’ budget;
- timely submission by project managers (MPS’ general directors, structural
divisions of the Executive Office) of GCU as part of project certificates
to develop the IPR project for the construction and rehabilitation of electric
grid facilities;
– Critical – Significant
6
Achievement of
strategic
objectives in
terms of
uninterrupted
power supply
and quality of
technological
connection
services
The risk of
failure to
achieve
the reliability
level of
electricity
transmission
services,
established
under tariff
regulation
7
Human capital
The risk
of an accident
at the fault of
the Company
- timely performance of scheduled GCU activities as part
of project certificates to develop the IPR project for
the construction and rehabilitation of electric grid facilities
pursuant to the investment programme;
- acceptance quality control of materials and equipment;
- quality management of capital construction;
- handling claims against contractors who violate
contractual obligations prior to commissioning;
- financing with regard to target indicators of the
Company’s investment budget;
- timely preparation of initial permits and design
documentation.
- Widening of overhead line rights-of-way to reach
the established standard;
- development of M&R programmes with the
consideration of results of the equipment
assessment, including the electric grid equipment
diagnostics performed based on these results;
- quality control of M&R works (including those
performed by contractors);
- monitoring the implementation of actions based on
results of technological violations (accidents)
investigation;
- implementation of electric grid facilities subject to
renovation and target reliability improvement
programmes (IPR implementation) in due time.
Internal accident investigations resulted in issue of
orders for remedial actions to be taken.
In addition, the following risk minimisation actions are
being made:
- advanced upgrading of personnel skills and training
on safe performance methods (in order to develop safe
behaviour and prevent dangerous situations at work);
- medical examinations of employees (preliminary,
regular, pre-trip);
- arrangement of safety days and other occupational
safety inspections, work with personnel at each EMPS;
- operation of the system of response to violations of
occupational safety requirements (taking enforcement
actions against employees who have violated these
requirements);
- analysis of violations of occupational safety
requirements and development of remedial measures;
- acquisition and provision of certified high-quality
personal protective equipment, special clothing and
footwear, rinse-off and detoxicating products, working
tools and devices, along with control over proper
application;
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KEY RISKS ]
INDUSTRY OVERVIEW, STRATEGY, RISKS AND KPI
[ KEY RISKS ]
The Company’s activity is inherent in the following significant risks (continued)
The Company’s activity is inherent in the following significant risks (continued)
No.
1
Risk group,
list of risks
Risk
description
2
3
Risk
management
activities
4
Risk
significance
assessment* and
dynamics
5
No.
1
Risk group,
list of risks
Risk
description
2
3
Risk
management
activities
4
Risk
significance
assessment*
and dynamics
5
- introduction and application of technologies that ensure safe
performance and safe working environment;
- control of the adherence to occupational safety requirements at
PJSC FGC UES’ facilities;
- safe operation of vehicles, including premises and parking
spaces;
- control of the compliance with the rules of passenger and cargo
transportation;
- analysis of road accidents and development of remedial actions;
- control of the performance (implementation) of programmes that
contain occupational safety requirements and aimed at
preventing injuries (programmes for the liquidation of potentially
dangerous areas, etc.);
- performance of actions under the Safe Energy for Children
project (school lessons on the electrical safety, tours of the
Company’s substations for school children, preparation and
distribution of special cards and bookmarks on the electrical
safety of children, publication of articles in regional and
interregional mass media about works carried out to prevent
electrical injuries of children and teenagers);
- performance of actions under the Safe Energy for the General
Public project (interaction with communities of fishermen and
gardeners, non-ferrous metal reception points, as well as
provision of information via printed media, radio and television
about the danger of approaching and staying close to electrical
installations, violating the electric grid safety rules and
requirements, mortal danger of unauthorised connection to
electric grids among residents of private households, etc);
- performance of actions under programmes for placement of
warning signs that prohibit and inform about the danger of fishing
in the exclusion area of overhead lines where they cross water
bodies;
- when signing contractor agreements, introduction of obligations
and liability of personnel for safe performance of works in
electrical installations that already exist or under construction,
and during retrofitting and upgrade, along with control of
the compliance with the safety requirements;
- inspections at EMPS where accidents—including road
ones—took place;
- preparation and performance of actions to prevent
occupational injuries and ensure compliance of MPS
and EMPS personnel with the occupational safety
requirements based on accident investigation results,
performance of control measures and resolutions of
theOccupational Safety Committee, as well as ensuring
efficient operation and continuous improvement of the
occupational safety management system;
- timely performance of actions under prescriptive orders
and operational instructions issued based on results
of inspections conducted by supervision and control
bodies and as part of technical inspections, as well as
actions aimed to address the root causes of accidents
stated in investigation reports.
Risk of deviation
of actual volumes of electricity
transmission services
from the value set
in the Business Plan
Risk of an accident
at the fault of the Company
Risk of deviation
of actual technological connection
volumes from the value set
in the Business Plan
Risk of failure
to achieve the reliability
level of electricity transmission
services established under tariff
regulation
Moderate
Significant
Critical
Risk of deviation
of expenditures on losses
from the value set
in the Business Plan
Risk of failure
to achieve key indicators
of the Investment
Programme
Risk of deviation
of overdue account receivable
from the amount set
in the Business Plan
– Critical – Significant
Fig. 1 Risk map
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59
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PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Operational
Results
The customer-oriented approach is a key pillar of our Company. While satisfying
approximately half of all electricity consumption in Russia, Rosseti FGC UES
builds long-term mutually beneficial relations with consumers, offering them
high-quality services.
It operates the Unified National Electrical
Grid (UNEG) and provides consumers with
services related to electric power transmission
via the UNEG. Such services are considered
as monopoly operation and regulated by the
state.
The reliability and safety of the UNEG
operation is ensured by management systems.
The Company operated the following systems:
Quality Management System (QMS);
Environmental Management System (EMS);
Energy Management System.
QMS is a part of the Company’s general
management system. It is designed to ensure
the high quality of the services provided
in accordance with the requirements of
regulatory documents, the needs and
expectations of consumers, as well as to
satisfy all stakeholders, including employees,
shareholders, investors and partners of the
Company. The Quality Policy of PJSC FGC
UES is a significant part of QMS.
In 2019, the Certification Association Russian
Register certified QMS for compliance with
ISO 9001:2015. According to the results,
full adherence of PJSC FGC UES’s QMS
to ISO 9001:2015 was confirmed, and the
corresponding certificate with a validity period
until 2022 was issued.
The Unified Technical Policy has been approved
and is effective in Rosseti FGC UES23. Its purpose
is to determine key technology areas to ensure
the reliability and efficiency of the electric grid
complex in the short and medium term, with proper
industrial and environmental safety, based on
innovative development principles providing for
non-discriminatory access to electric grids for all
market participants.
Control over the implementation of the Unified
Technical Policy in the electric grid complex is
carried out by dedicated structural units of the
Executive Office of PJSC FGC UES and its
branches — MPS (EMPS) — on a regular basis.
Electricity transmission
Reliability
of energy supply
Based on PJSC FGC UES’ performance in 2019, the volume of electricity supply from
the UNEG to consumers amounted to 558,722 million kWh, which is 992 million kWh (0.2%)
more year-over-year.
For more
information
on QMS, see
Appendix 1.
For more
information
on EMS and
the energy
management
system, see
the Environmental
Protection section.
The Quality Policy
of PJSC FGC UES
is published on
the Company’s
website at https://
www.fsk-ees.ru/
about/politika-v-
oblasti-kachestva-/.
The document
is published on
the website at http://
www.fsk-ees.ru/eng
in the section About
Us/Mission and
Strategy.
Electricity supply from UNEG to service consumers, mln kWh
Electricity losses in the UNEG, mln kWh
2019 target
2019 result
2020 target
554,830
25,361
558,722
23,197
556,895
24,455
23 Resolution of PJSC FGC UES’s Board of Directors, Minutes No. 208 of 27 December 2013.
Market of electricity transmission services
GRI 102-6
The scope of services provided in the backbone
transmission network depends on the general
state of national economy and is determined as
power capacity supplied to consumers of electricity
transmission services and capacity of power
receivers connected to the network.
In 2019, the value of paid capacity under the UNEG
amounted to an average of 86.4 GW; by the end
of 2019, the reduction in paid capacity was 0.4
GW against 2018, which was due to the phased
transition within 10 years of SDCs of PJSC Rosseti
to settlements with the Company for electricity
transmission services based on the actual capacity.
Main consumers of the Company’s electric power
transmission services are regional distribution
companies, retail suppliers and large industrial
enterprises.
Power capacity paid by consumers of electricity
transmission services through the UNEG, GW
87.8
88.3
87.6
86.8
86.4
2015
2016
2017
2018
2019
Number of contracts, ea.
587
602
641
Shares of major service consumers
in the Company’s revenue in terms of sales
of electric energy transmission services in 2019
473
481
3 %
9 %
9 %
3 %
4 %
5 %
6 %
6 %
2015
2016
2017
2018
2019
Based on the results of 2019, the total number
of the Company’s counterparties in the electric
power transmission via the UNEG service
agreements reached 641.
8 %
8 %
A growing number of contracts comes from
activities related to technological connection
to the UNEG, as well as conclusion of contracts
with consumers of the Company’s services
who are technologically connected to facilities
of other entities.
- PJSC MOESK
- JSC Rosseti Tumen
- PJSC IDGC of Centre
- JSC IDGC of Urals
- PJSC IDGC of Volga
- PJSC IDGC of Centre
and Privolzhye
- PJSC IDGC of Siberia
- PJSC Lenenergo
- PJSC Kubanenergo
- PJSC IDGC of North-West
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
For more information
on activities and
results of the Energy
Saving and Energy
Efficiency Programme
of PJSC FGC UES
for 2015–2019, see
the Environmental
Protection section.
8
7
4
,
3
2
3
3
0
,
5
2
7
0
3
,
4
2
9
3
5
,
4
2
7
9
1
,
3
2
2015
2016
2017
2018
2019
Reduction of relative
electricity losses
GRI 103-2, EU12
In 2019, electricity losses amounted to 23,197 million KWh (4.15% of electricity supply from the grid
to consumers of electricity transmission services via the UNEG). With an increased electricity supply
from the grid, the relative value of losses dropped by 0.25 p.p., while losses of electricity were down
by 1,343 million KWh or 5.47% in absolute terms. Changes in electricity losses were caused by
shifts in the UNEG’s operation in 2019 due to changes in power plants loading and redistribution
of consumer loads in Rosseti FGC UES’ grids.
Supply and loss dynamics in Rosseti FGC UES
grids, mln kWh
Losses in electric energy in the UNEG, %
9
6
7
,
5
2
5
0
4
5
,
0
4
5
1
5
3
,
7
4
5
0
3
7
,
7
5
5
2
2
7
,
8
5
5
4.63
4.47
4.44
4.4
- Electricity supply
to consumers
- Losses in electric energy
in the UNEG
2015
2016
2017
2018
2019
BASED ON
THE RESULTS OF 2019,
THE TECHNOLOGICAL
EFFECT OF ACTIONS TAKEN
TO REDUCE ELECTRICITY
LOSSES AMOUNTED TO
54.42
MILLION KWH
The Company purchase electricity and capacity
on the wholesale electricity and capacity market
to compensate for actual losses in the UNEG.
These acquisitions are made in the territory
of constituent entities of the Russian Federation
that are grouped into pricing and non-pricing zones.
The Action Plan to reduce electricity losses was
approved as part of the Energy Saving and Energy
Efficiency Programme of PJSC FGC UES for
2015–2019 and implemented in several key areas:
optimisation of circuit and mode
parameters in the process of operation and
control of the electric grids;
reduction of electric power consumption for
auxiliary supply of the substations;
construction, reconstruction and
development of the electric grids, as
well as commissioning of energy-saving
equipment (loss reduction has a concurrent
effect).
4.15
In 2019, the indicators of capacity and the number of contracts were down against 2018 due to the completion
of large generation projects.
Technological connection
Customer
satisfaction
2019 target
2019 result
2020 target
Number of technological connection contracts, ea.,
including:
by generation facility, ea.
consumers, TGC, SDCs of PJSC Rosseti, ea.
Total maximum capacity for technological connection, GW
by generation facility, GW
consumers, TGC, SDCs of PJSC Rosseti, GW
189
9
180
5.29
0.5
4.7
202
12
190
4.7
1.97
2.74
199
17
182
5.3
0.5
4.8
In 2019, the Company carried out work on technological connection under 202 contracts, including 12 contracts for
generation facilities, and 190 connections under contracts with electricity consumers, TGC and SDCs of PJSC Rosseti.
Categories of technological connection
customers in 2019 (by number of contracts)
Dynamics of technological connection
of consumers and electric power production
facilities (by connected capacity)
3 %
18 %
- Production
company
- Consumers
- Rosseti’s subsidiaries
and affiliates
- TGC
The Company
provides consumers
with a comprehensive
service for technological
connection of power
receivers of electricity
consumers, power
generation facilities, and
electric grid facilities owned
by network organisations
and other entities to FGC
UES’ electric grids.
43 %
36 %
66 %
53 %
64 %
51 %
42 %
34 %
47 %
36 %
49 %
58 %
2015
2016
2017
2018
2019
- Consumers
and grid companies
- Electric energy
production facilities
The Technological Connection
Services online portal provides
consumers with access
to up-to-date information on
the state of Rosseti FGC UES’
feeding centres, load level of
their equipment, along with
information on implementation
progress of their applications
for technological connection
to the electric grids of
the Company. Website:
http://portaltp.fsk-ees.ru/.
20
LARGE
TECHNOLOGICAL
CONNECTION
PROJECTS
WERE IMPLEMENTED
IN 2019
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Customer satisfaction with
the technological connection service
Effectiveness of interaction
with PJSC FGC UES during construction
and assembly works
Respect for deadlines set
forth by legislation
Availability of TC information
10
9
8
7
6
5
TC standard
application form
Form and content
of a standard TC contract
and appendices
Quality and results
of design and survey works
Transparency of preliminary
calculations for TC elements
Quality of documentation
provided by PJSC FGC UES
(technical conditions, contracts,
appendices)
Effectiveness of PJSC FGC UES
employees’ performance in part
of providing information on
the work progress
Kindness/politeness
of PJSC FGC UES employees
Readiness of PJSC FGC FGC
employees to maintain a constructive
dialogue to address controversial
TC issues
- 2017
- 2018
- 2019
For information
of the Consumer
Council of PJSC
FGC UES and 2019
results, please see
Appendix 1.
According to participants of the customer satisfaction survey 2019, there was improvement
in the quality of documents received, as well as in the performance of PJSC FGC UES personnel
in terms of providing information about the process of technological connection. Of most importance
was the readiness of Rosseti FGC UES employees to settle disputes in the course of technological
connection in a constructive manner, and assessment of the compliance with deadlines established
by applicable law. The overall integral value vs. 2018 grew and reached 9.33.
1
2
3
4
5
6
7
8
9
PJSC Lenenergo, TC of 110 kV
Vasileostrovskaya CL – 110 kV
Baltiyskaya No. 14 SS to 300 kV
Vasileostrovskaya SS, 14.3 MW,
10.04.19, St. Petersburg
PJSC Uralkali,
TC of 220/110/6 Stroganovskaya SS
to 500 kV Severnaya SS, 117 MW,
13.08.19, the Perm Region
Tosol-Sintez LLC,
TC of 110 kV Polymer SS, 110 kV
Yuzhnaya SS, 110 kV Severnaya SS
to 220 kV Etilen SS, 100 MW,
16.04.19, the Nizhny Novgorod Region
JSC Zaramag HPP, 346 MW,
HU No. 1–2 of Zaramagskaya HPP-1,
29.11.19, the Republic
of North Ossetia – Alania
JSC Tula Region Development
Corporation,
TC to 220 kV Severnaya SS, 100 MW,
20.12.19, the Tula Region
JSC Rosenergoatom Concern,
1,198.8 MW, connection of power
unit No. 2 of Novovoronezhskaya NPP-2,
19.11.19, the Voronezh Region
YugAgroHolding Greenhouse
Complex LLC, TC of 110 kV
YugAgro SS to 330 kV Grozny SS,
an increase of 13 MW, 17.07.19,
the Chechen Republic
Solar Systems LLC,
15 MW, Oktyabrskaya SPP, 15 MW;
Peschanaya SPP, 15 MW,
27.12.19, the Astrakhan Region
JSC Polys Krasnoyarsk,
TC of 110/6 kV Blagodatninskaya SS
to 220 kV Razdolinskaya SS,
48 MW, 13.06.19,
Krasnoyarsk Krai
10
11
JSC CPC-R, TC of 10 kV
switchgear to 220 kV PS-8 SS,
22.85 MW, 31.12.19,
Krasnodar Krai
Miratorg-Kursk LLC,
TC to 220 kV Kurskaya SS,
220 kV Yuzhnaya SS, 43 MW,
30.11.19, the Kursk Region
Major technological connection
projects in 2019
9
16
19
18
14
15
16
14
1
3
2
12
4
20
13
5
11
6
10
7
12
JSC Kaluga SEZ,
TC of 220 kV Voylovo SS
to 220 kV Liteynaya SS, 140 MW,
07.10.19, the Kaluga Region
13
PJSC RusHydro,
an increase of 115.5 MW associated
with the re-tagging of existing
generation equipment
of Zhiglevskaya HPP, 13.05.19,
the Samara Region
JSC Far-Eastern Distribution
Company, TC of Gazprom Power
of Siberia: KS-7a — 9.1 MW, 1.08.19,
the Amur Region KS-3 — 7 MW,
17.11.19, the Republic of Sakha
GEKh Engineering,
CHP Power of Siberia (stage 1),
40 MW, 30.06.19, the Amur Region
Transneft Far East LLC,
TC of ESPO PS-23,26,32 facilities,
a total of 36.6 MW, 01.08.2019,
the Jewish Autonomous Region,
the Amur Region PS-11,15,
a total of 59 MW, the Republic of Sakha,
29.06.19 and 30.09.19
14
15
16
17
18
19
JSC Far-Eastern Distribution
Company, interested in TC
of Albynsky Rudnik LLC
to 220 kV Rudnaya SS, 28.2 MW,
25.11.19, the Amur Region
PJSC Transneft,
TC of OHL 10 kV Slavyanskaya PS-1
to 220 kV Slavyankaya SS, 16.4 MW,
01.11.19, Yamalo-Nenets
Autonomous Okrug
JSC Orenburgneft,
TC to 220 kV Buzulukskaya SS
and 220 kV Sorochinskaya SS,
49.5 MW, 14.10.19,
the Orenburg Region
PJSC OGK-2, an increase of 65 MW,
re-tagging of existing generation
equipment of Surgutskaya GRES-1,
24.04.2019, Khanty-Mansi
Autonomous Okrug
20
Green Energy Rus LLC,
25 MW, Liman SPP, 29.11.19,
the Astrakhzn Region
- Facilities of power plants, subject to
- Facilities of electricity consumers, subject
- PJSC Rosseti’s subsidiaries and affiliates
technological connection
to technological connection
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2019 Annual Report
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PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Major technological connections to be implemented
in the upcoming years
Improving the power supply reliability
Reliability
of energy supply
Project
2020
2021
2022
2023
2024
2025
GRI 103-2
Number of accidents at the Company’s facilities, pcs.*
CONNECTION OF CONSUMERS
Electricity supply to infrastructure facilities of advanced development zones:
South Yakutia
Neftekhimichesky in Primorye Territory
Electricity supply to the gas transportation system Power of Siberia:
KS-4, KS-5, KS-7
Electricity supply to the Amur Gas Chemical Complex in the Amur Region:
electricity supply for construction (236 MW)
electricity supply for industrial needs (301 MW)
Electricity supply to railway substations of JSC RZD
as part of power supply infrastructure development at BAM
and TransSib
Electricity supply to Udokan Deposit Ore Processing Plant (stage II)
CONNECTION OF GENERATION FACILITIES
Power generation at power unit No. 1 of Kurskaya NPP-2
Power generation at GTP 1, 2 of Udarnaya HPP
Technological connection of renewable energy sources:
Wind power plants (WPPs):
Azovskaya WPP in the Rostov Region
Kochubeevskaya WPP in the Stavropol Territory
Rodnikovskaya WPP in the Stavropol Territory
Kolskaya WPP in the Murmansk Region
Solar power plants (SPPs):
Luch, Asterion and Medveditsa SPPs in the Volgograd Region
Technological connection of the waste thermal treatment plant
in the Moscow Region
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Annual Report 2019 PJSC FGC UES
All activities of Rosseti FGC UES are aimed at ensuring
reliable and uninterrupted operation of the UNEG.
1,879
1,869
1,535
1,321
1,176
The reliability of the Company’s grids improves
year after year. In 2019, the specific accident rate
at the Company’s facilities was down by 12 %.
In 2019, the specific accident rate at FGC UES facilities
declined by 12 % due to the introduction of new equipment,
advancement of servicing personnel skills and expertise
and other activities. The number of staff errors decreased
compared to 2018 and accounted for less than 0.6 %
of the total number of accidents. The average specific
accident rate for SS and PTL has a steady downward trend.
2015
2016
2017
2018
2019
Distribution of accidents by key element
of electric grids (PTL, SS and SCS)
GRI 102-48
* Starting from 1 January 2017, in accordance with the Production
Meeting Minutes of PJSC FGC UES and JSC SO UES technical
management, the events related to decommissioning SS and
overhead line equipment upon urgent dispatching orders and
disruptions in SCS operation which do not fall within the scope of
paragraph 4 of the Accident Investigation Rules in Power Industry
were investigated and recorded in addition to the existing accident
investigation process. For the proper comparison of the number
of accidents, information on the accident rate in 2014–2016 was
supplemented with information about the above-stated events
based on the materials submitted by JSC SO UES.
SCS; 28
2 %
SS; 458
39 %
OHL; 688
59 %
For information
on distribution
of the specific number
of accidents at MPS
of the Company, see
Appendix 1.
Over the next five years and beyond, the Company will be
implementing its Digital Transformation Programme.
Automation and digitalisation of technological and business
processes run like golden threads through the programme.
One of key directions is the introduction of a legally relevant
electronic document management system, or the so-called
digital document management system. This will help to
get rid of paper document flow, which will increase speed
and quality of interaction with our customers. Furthermore,
it is possible to classify and standardise the Company’s
technical solutions in construction and retrofitting.
Digitalisation of these processes will lead to reduction
of capital costs followed by operating costs. The use of
digital support environment in the optional elaboration of
the connection scheme and block-modular equipment will
enable us to accelerate construction significantly, as well
as to reduce the time of technological connection of new
customers.
Aleksey Molsky
First Deputy Chairman of the Management Board of PJSC FGC UES,
member of the Management Board of PJSC FGC UES
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Specific accident rate at Rosseti FGC UES facilities
(number of accidents per 1,000 conventional units)
Dynamics of power energy undersupply
by Rosseti FGC UES
Retrofitting and upgrading of fixed assets
1.43
1.4
1.13
0.95
0.83
1,646
1,531
1,423
1,156
1,093
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
The indicator of volume of electricity shortage to consumers tends to stabilise within the medium-term
value. In 2019, the indicator was down to 1,423 MWh (by 7.1% y-o-y). The increase in the indicator
compared to 2015 and 2016 was due to higher requirements for technological violations taken into
account when calculating the reliability of indicators in accordance with Order No. 1256 of the Ministry
of Energy dated 29 November 2016 and Order No. 443 of PJSC FGC UES dated 30 November 2018.
Reliability level of services provided 24
2015
2016
2017
2018
2019
Target Actual
Target Actual
Target Actual
Target Actual
Target Actual
0.036 0.0135
0.035 0.0117
0.035 0.0094
0.034 0.0087
0.034 0.0096
In 2020, special focus will be put on personnel actions, operation of transmission lines and automatic
reclosing equipment of overhead lines in order to maintain a high level of reliability. Target value
of the services reliability indicator amount to 0.03340 in 2020.25
24 The reliability of services provided is determined by the ratio of the actual total duration of electricity outages during the control period (hour)
to the maximum number of consumer connection points for the same period.
25 Order of the FAS of Russia No. 1616/19 of 10 December 2019.
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Annual Report 2019 PJSC FGC UES
The Technical Upgrading and Reconstruction (TU&R)
Programme26 (hereinafter, the TU&R Programme)
is aimed at addressing the following issues:
reduction of the physical wear and tear rate
and probability of SS and PTL equipment failure;
upgrade of the electric grid complex, including
installation of equipment adapted to the
introduction of digital technologies.
In 2019, the TU&R Programme financing amounted
to RUB 25.5 billion, and the actual spending totalled
RUB 20.1 billion.
Repair programme
ВIn 2019, repairs were made to ensure uninterrupted
operation of the Company’s electric grid complex
in autumn and winter, during fire, thunderstorm and
flood hazard periods (as well as additional preventive
measures were taken to improve the protection
of power grid facilities from the impact of natural
phenomena), along with usual and additional activities
carried out to support the reliability of the entire
complex.
In 2019, the scheduled repairs were made in full.
+0.8 %
88.66
89.40
+2.6 %
87.57
85.28
Index of technical condition
of transformers
Index of technical condition
of power transmission lines
- 2018
- 2019
ACTUAL REPAIR
EXPENSES AMOUNTED TO
14.1
RUB BILLION
IN THE REPORTING YEAR
For more
information
on the TU&R
implementation
results in 2019,
see Appendix 1.
26 Approved by the Board of Directors of PJSC FGC UES (an extract from Meeting Minutes of the Company’s Board of Directors No. 427/1 of 6 November 2018).
The upgraded TU&R programme 2019–2026 No. 952pr/2 of 6 December 2019 was approved by the Management Board of PJSC Rosseti.
Significant funds spent by the Company
to finance the repair programme ensure a high
reliability level of the UNEG facilities operation.
In 2019, Rosseti FGC UES improved its key
indicators that demonstrate operational efficiency.
Furthermore, the accident rate was down by
12%, to the minimum level over the Company’s
history. Our goal is to maintain the achieved
values, since we understand that any accident
implies not only financial or reputation
damage to our Company, but also losses
of our customers.
Dmitry Vodennikov
Deputy Chairman of the Management Board —
Chief Engineer of PJSC FGC UES,
member of the Management Board of PJSC FGC UES
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PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Operation during specific periods
Grid development and investment activities
Weather and climatic conditions have a significant impact on the Company’s operations. Power
grid equipment, buildings and structures are prepared in advance for operation during specific
periods, such as:
autumn and winter (low temperatures and maximum loads);
periods associated with natural anomalies (flood, fire and thunderstorms).
In 2019, the UNEG operated in its regular mode during specific periods as well.
44 duty teams worked on a full-time basis in Rosseti FGC UES, thus enabling the reliable
operation of facilities during emergency and abnormal situations. 609 standby power supply
sources with a total capacity of 182.5 MW were at the Company’s disposal.
On 15 November 2019, the Committee of the Ministry of Energy of Russia issued a certificate,
confirming the Company’s readiness for the 2019/2020 heating season.
For more
information on
activities related
to preparation for
specific periods
in 2019, see
Appendix 1.
Industrial safety management
GRI 103-2
The Company’s industrial facilities are operated in compliance with requirements of Federal Law
No. 116-FZ dated 21 July 1997, On Industrial Safety of Hazardous Industrial Facilities, as well as
other regulatory acts in the field of industrial safety.
Rosseti FGC UES runs 249 industrial facilities of III and IV hazard classes, which are registered in
the State Register of Hazardous Industrial Facilities and identified by the following features:
use and storage of hazardous substances;
use of equipment operating under excess pressures above 0.07 MPa or water
temperatures above 115 °С;
use of fixed lifting mechanisms.
The Company organises and implements production control for safe operation of Rosseti FGC
UES industrial facilities, as well as prevents accidents at these facilities and makes sure they are
prepared to control the damage and recover afterwards.
In 2005–2019, no accidents were registered at the Company’s hazardous industrial facilities.
All industrial safety requirements are fulfilled in accordance with the procedure established by law.
Contribution of occupational
health and safety measures
In 2019, the Company continued to reduce occupational injury risks:
we identified, registered/excluded and re-registered hazardous industrial facilities, and assigned
hazard classes in the State Register of Hazardous Industrial Facilities;
draft laws were reviewed and amended to implement the “regulatory guillotine” mechanism
aimed at changing the statutory regulation structure in terms of occupational safety.
For more information
on the organisation
of favourable working
environment, see
section Occupational
Safety.
For information
on fire safety
measures, see
Appendix 1.
Infrastructure
development
GRI 103-2
Investment in the electric grid infrastructure development is
the core of reliable power supply and an important driver of
economic growth. Rosseti FGC UES builds new electrical
grid facilities and reconstructs the existing ones.
The key investment programme activities27 scheduled
for 2015–2019 were fulfilled. In the course of their
implementation, over 7,800 km of electricity transmission
lines and about 31,200 GVA of transformer capacity were
commissioned. In 2019, a new investment programme28
for the next five years (2020–2024) was adopted.
The Company’s Investment Programme is aimed
at providing for the commissioning of fixed assets
with a capacity of 40,200 MVA, and 8,700 km
of electricity transmission lines. The total volume
of investment is expected in the amount of
RUB 555.15 billion.
THE TOTAL VOLUME
OF INVESTMENT IS EXPECTED
IN THE AMOUNT OF
555.15
RUB BILLION
Key parameters of the Company’s Investment
Programme 2020–2024:
Amount of financing, RUB bln
Priority goals for the Company’s Investment Programme
are as follows:
125.5
118.3
115.9
104.1
91.3
maintaining the level of operational reliability
of the Unified Energy System required to ensure
uninterrupted power supply to consumers;
providing electricity supply to facilities of national
significance;
ensuring quality and availability of services for
electric power transmission and connection of
consumers to the electric grids;
improving the operational efficiency of backbone
transmission networks via cost reduction and
implementation of energy efficiency programmes;
synchronising the development programmes with
generation facilities and distribution grids;
developing an effective system for the UNEG
operation management, improving monitoring
of the electric grid facilities;
developing an automated system of technological
management and connection, as well as IT
technologies to improve the quality and operation,
and creating conditions for a gradual transition
to “intelligent” electric grid.
27 Approved by Order of the Ministry of Energy of Russia No.
980 of 18 December 2015 (taking into account the amendments,
introduced as per Orders of the Ministry of Energy of Russia No. 31@
of 27 December 2017 and No. 36@ of 27 December 2019).
28 Order No. 36@ of the Ministry of Energy of Russia
of 27 December 2019.
2020
2021
2022
2023
2024
Volume of capital investment development (excl. VAT),
RUB bln
158.3
143.3
97.0
46.2
28.7
2020
2021
2022
2023
2024
Commissioning of fixed assets of grid capacity,
RUB bln
149.0
153.4
157.2
95.2
59.9
2020
2021
2022
2023
2024
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PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Dynamics of commissioning capacity
15.4
10.4
3.8
2.6
2.6
4.2
1.6
1.5
6.4
0.4
It is planned to finance the Investment Programme
2020–2024 using the Company’s own funds, bonds
and loans. The programme provides even distribution
of investment costs over the five-year period, which
enables the Company to maintain a balanced structure
of its financing sources.
2020
2021
2022
2023
2024
- Transformer capacity,
- Power transmission lines,
ths. MVA
ths. km
Implementation of the investment programme in 2019
Structure of capital investments financing in 2019, RUB bln (incl. VAT)
For more
information on
key investment
projects and their
parameters, see
Appendix 1.
45.6
30 %
15.8
11 %
63.1
42 %
25.2
17 %
- Technological
connection
- Reconstruction, upgrade,
and technical re-equipment
- Investment projects,
whose implementation
depends on schemes
and programmes
of the electric power
industry prospective
development
- Other investment
projects
Dynamics of capacity commissioning
Dynamics of investment financing volume,
RUB bln
5.7
4.1
2.3
0.7
0.4
0.8
3.7
2.4
3.2
1.9
149.8*
85.9
90.7
95.6
103.3
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
- Transformer capacity,
- Power transmission lines,
ths. MVA
ths. km
* Including the non-cash part of RUB 34.8 billion in the framework of electric grid asset exchange with JSC DVEUK.
?
ANSWER:
Geographical emancipation is on
the way — the infrastructure is being
constructed for connecting large
capacity volumes in the regions with
the smallest grid density — in Eastern
Siberia and Far East.
How much will the Rosseti FGC UES
Investment Programme grow? What
new facilities will be included?
The total volume of the Rosseti FGC UES Investment Programme 2020–2024 amounts to RUB 555
billion. Approximately one fifth of this sum will be transferred to finance our work in the Far Eastern
Federal District, including regions of Eastern Siberia: the Republics of Buryatia and Sakha (Yakutia),
and Zabaykalsky Krai.
Under the new investment cycle, the implementation of the macro-project of the external electricity supply
development of the Baikal-Amur and Trans-Siberian railways will continue, aimed at increasing their
capacity to 124.9 million tonnes/year. At the same time, a programme of further strengthening of grid
infrastructure to increase freight traffic up to 180 million tonnes/year is being developed in cooperation with
JSC RZD, under the objectives of Decree of the President of Russia No. 204 of 7 May 2018.
Furthermore, works will be carried out to ensure the necessary capacity of the facilities of the Power
of Siberia main gas pipeline in the Republic of Sakha (Yakutia) and Amur Region, and the Sukhodol coal
terminal in Primorsky Krai. Until 2024, the completion of all electricity supply activities in the Elginskoye
coal field in the Republic of Sakha (Yakutia), the Malmyzhskoye gold-copper field in Khabarovsk Krai,
and the Ozernoye polymetallic ore field in the Republic of Buryatia is afoot.
A special area of the Company’s activities is related to the creation of conditions for successful
operation of priority development zones in the Far East. In 2019, the 220 kV Prompark substation —
a new power centre of the Primorskaya power system — was put into operation to supply electricity
to the Nadezhdinskaya priority development zone. In 2020, technological connection of its facilities is
scheduled for completion. In 2021–2024, activities will be carried out to supply electricity to residents
of the Yuzhnaya Yakutia, Neftekhimichesky, and Svobodny priority development zones.
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PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Innovation activity
In 2019, we continued to introduce end-to-end digital
technologies at the Unified National Electric Grid’s
facilities. We implemented a number of remote
control projects in cooperation with System Operator
of the United Power System, including at our new
facilities: the 500 kV Tobol substation in the Tyumen
Region, and the 500 kV Preobrazhenskaya substation
in the Orenburg Region. Development of the in-house
digital communication network continued. Unique
digital equipment was launched at the 220 kV Borskaya
substation in the Nizhny Novgorod Region. Digitalisation
of backbone electric grids will be resumed within the next
investment cycle. Our priority area is the creation of low-
maintenance and highly-reliable facilities.
Pavel Korsunov
Deputy Chairman of the Management Board of PJSC FGC UES
The introduction of innovation technologies
modifies the Company’s activities and enables
us to improve the efficiency of our operations,
as well as reliability and quality of services
provided. Making use of the innovation
potential and competitiveness of the Company
in the long term requires a comprehensive
approach of the PJSC FGC UES Innovative
Development Programme.
R&D financing dynamics in 2015–2019,
RUB bln
0.92
0.48
0.41
0.60
0.52
+53 %
2015
2016
2017
2018
2019
IN 2019
6 =
+2
4
INTELLECTUAL
PROPERTY ITEMS
PATENTS
FOR INVENTIONS
CERTIFICATES
FOR COMPUTER
SOFTWARE
?
ANSWER:
The UNEG is being steadily developed
and transformed. What technology
allows the Company to break the
new ground of security, controllability
and performance efficiency of
the electric grids?
The Innovation development of Rosseti FGC UES essentially comes from digitalisation. For more
than a decade, we have been introducing digital solutions in the UNEG in line with IEC 61850. Over
200 substations were partially digitalised. Our Company is the industry pioneer in terms of switch-
ing power facilities to remote control. According to the 2019 results, this technology was adopted by
22 facilities. Digital technology enables us to raise the efficiency and safety of industry-wide operations,
as well as cut operating costs.
The Innovative Development Programme also includes the Energy Saving Substation project.
It involves the implementation of technological solutions, allowing to reduce electricity consumption for
own needs up to 50% at existing power facilities.
A project to construct a high-temperature superconducting cable line with a length of 2.5 km — making
it the world’s largest cable line — is also being implemented. This technology enables the transmis-
sion of high capacity at low voltage and with minimum losses. Pilot implementation of this cable line
is planned to take place in the power system of Saint Petersburg.
Innovative Development Programme
GRI 103-2
As a means to manage innovation, the Company
adopted the Innovative Development Programme
2016–2020 of PJSC FGC UES with an outlook for
202529 (hereinafter referred to as the “Programme”),
which is consistent with the Company’s Long-Term
Development Programme.
Priority areas of innovative development were defined
with due regard to the analysis of the Company’s
technological and innovative level, as well as
the assessment of market and technology development
forecast.
In the long run, the Programme is expected to result in
creation of an electric power system with intelligent grid,
which would differ from the existing one by presence of
innovative components.
Existing electric
power system
Electric power system
with smart grid
automatic transmission control system
active grid elements
current grid status monitoring system
automated real-time systems
rapid response of the control system
29 Approved by the resolution of PJSC FGC UES’s Board of Directors, Minutes No. 328 of 28 June 2016. The revised Programme was approved by the
resolution of the Board of Directors of PJSC FGC UES, Minutes No. 370 of 7 June 2017.
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PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Objectives of innovative development
Achievement of worldwide average rates of reliability,
safety, quality, efficiency, and availability of electricity
for consumers.
Improvement of the intellectual property and regulatory
and technical documentation management to improve general
management system.
Better cooperation with innovation partners — small
and medium businesses, higher education institutions
and scientific organisations.
Customer-oriented approach by means
of high-tech services.
Ensuring commercial introduction of innovative
equipment and practices.
Talent development
with innovation competences.
Transition to the "adopter" model of innovative technology
offered on the market, use of "open innovation" tools.
Creation of good conditions for the development
of promising scientific research, operation and advanced
production.
The effectiveness of the Innovative Development Programme is measured with a system of indicators.
KPIs are developed for the Programme that reflect the ultimate efficiency and effectiveness of innovative
projects and activities (10 KPIs), and performance indicators (PIs), i.e. “process” indicators (5 PIs)
(including technological and organisational ones).
Areas of innovative development
DIGITAL SUBSTATION
DIGITAL DESIGN
REMOTE
CONTROL
AND SECURITY
POWER
QUALITY
RELIABILITY
AND ASSET
MANAGEMENT
The Automated Process
Control System (APCS)
provides for remote
control, increased systemic
reliability, reduced
management costs and high
operational readiness.
Voltage control devices
and systems of balancing
and compensation of voltage
harmonics are placed
in complex circuit-mode nodes
of a grid, which ensures control
at a new qualitative level.
Development of a methodology
for integrated management of
production funds and assets,
based on the planning of technical
impacts on equipment, taking into
account the analysis of its current
condition, costs and potential risks.
Implementation period:
2016–2025.
Implementation period:
2016–2025.
Implementation period: 2016–2019
(elaboration and development: 2020–2025).
Technologies: systems
of process control of the level
of control centers (SCADA,
EMS) and the level of facilities
(SSPI, SSPTI), modern digital
measurement systems.
Technologies: a package
of FACTS technologies (DCD,
static thyristor compensator
(STC), controlled shunt reactor
(CSR), phase shifting devices
(PSD), STATCOM), systems
of balancing and compensation
of voltage harmonics,
monitoring and control
distributed systems, etc
Technologies: transactional
asset management systems,
mobile terminals, unmanned
aviation equipment, systems
of consequences simultation
for process disruptions,
systems of remote data reading
from sensors and RFID, etc.
Development of communication networks
and IT systems
A substation with a high level of automation.
An engineering ecosystem based on modern design
information technology
GRI 103-2
Implementation period: 2016–2025
Technologies: SS equipment based on IEC 61850,
switchboards, intelligent electronic devices, etc.
Implementation period: 2015–2025
(modification and development of information services: 2020–2025).
Technologies: CAD (PLM, BIM), simulation tools,
electronic design services, data processing logistics, mobile
terminals, geolocation, laser technologies, etc.
Rosseti FGC UES supervises the development of technology communication network and information systems
of the Company by introducing sophisticated equipment and digital technologies into the electric grid complex.
Development of the technology communication network
ENERGY EFFICIENCY
COMPOSITE MATERIALS
AND SUPERCONDUCTIVITY
Measures:
1) Improvement of the efficiency of transformer cooling
systems and heating automation.
2) Research and testing of functional wire coatings.
3) Creation of distributed (intelligent) systems of voltage
andreactive power control
Implementation period: 2015–2022 (implementation
oftarget programmes: 2018–2025).
Technologies: automation, functional wire wraps.
Development of new technological solutions
with a wider use of new construction materials
in accordance with the Order of the Russian Government
realted to development of the composite material
production industry.
Implementation period: 2015–2025.
Technologies: composite materials for OHL
and SS structures, for insulating products, composite
core and conductor products, high-temperature
superconductivity technology, etc.
The technology communication
network development is aimed at creating
the telecommunication infrastructure in the Company
in accordance with the Master Plan of Creation
and Development of the Unified Technology
Communication Network of the Electric Power
Industry (hereinafter, UTCNEPI), approved by the
Management Board and the Government Committee
for Federal Communications.
The emphasis in the arrangement of communication
systems is on ensuring and expanding the range
of communication services to users with quality
indicators set and at optimal costs of development
and operation. The key objectives cover digitalisation
and intelligence.
Dynamics of communication
channel digitalisation at power
grid facilities
86.2 %
84.9 %
83.7 %
2017
2018
2019
One of the main indicators of the Company’s technological communication network development
is the level of supply of electric grid facilities with digital communication channels to operate and introduce
functional systems. The Company expects to achieve full digitalisation and intelligence by 2025.
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PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Structure of UTCNEPI and applied technologies
UTCNEPI structural component
Highlights in 2019
A fibre-optic communication network is a basic
technology communication network created by means
of placing fibre-optic cable on overhead lines
(FOCL OHL).
FOCL will allow us to improve the process control
efficiency of electrical grid facilities, and reliability
of power supply to consumers in the regions.
By 2025, for the purpose of ensuring the exchange
of big data of intelligent control systems built upon
digital technologies, it is planned to expand FOCL
to 105,000 km, including resources of major telecom
operators based on long-term reciprocal lease
agreements.
FOCL’s total length amounted to 81,300 km
in 2019, including resources of major telecom
operators — an expanse of almost 5,000 km.
Total length of FOCL, ths. km
81.3
76.5
73.6
2017
2018
2019
Use
of domestic
equipment, %
37.6 %
The network of high-frequency communication
on overhead lines is a type of communication means
in which phase conductors and overhead power
transmission line cables are used. Such communication
channels transmit voice, telemechanics data,
AIMS CEM, RP and EA commands.
As part of the upgrade, 222 high-frequency
communication half-sets were installed. A total of
11,798 half-sets were installed by the Company.
80 %
Dynamics of HF communication systems
commissioning
264
222
143
The telecommunication network is built on the point-to-
point principle and provides interaction with the process
network of the system operator and other participants
of the wholesale electricity market.
The development strategy provides for network
digitalisation, as well as introduction of VoIP technology
along with traditional services.
54.1 %
2017
2018
2019
Twenty three digital private automated branch
exchange sets (PABX) were introduced, as well
as systems for recording operation personnel
communication, DECT wireless communications
systems, loudspeaker and radio searching
communications systems.
Dynamics of telephone switching systems
commissioning
39
27
23
2017
2018
2019
To place FOCL on overhead lines, only domestic fibre-optic cable is used.
IT systems and automated control systems
The Company runs three major projects to build corporate information systems:
Automated Process Control System (APCS);
Corporate Information Management System (CIMS);
Automated Information and Measuring System for Commercial Electricity Metering
(AIMS CEM for UNEG).
System
description
System
objective
Highlights
in 2019
Automated Process Control
System is a unified distributed
hierarchical system, which can be
both the UNEG functioning
management system, and the UNEG
operation and development
management system.
Increased management efficiency
due to high level of observability;
emergency shutdown prevention;
reduction in decision-making times
and staff errors.
The work on creation of
automated dispatching and
technological control systems of grid
control centres was continued;
the work under the programme
for improvement of reliability and
observability of UNEG facilities was
carried out at 100 substations.
Corporate Information
Management System is a set of
information systems that are
interconnected to automate business
processes.
Comprehensive improvement
in the business process efficiency.
A number of projects were
implemented and the Company’s
business processes were improved
through automation development.
Automated Information and
Measuring System for Commercial
Electricity Metering is a wide area
multilevel information and measuring
system with a unified centre for
collecting, processing, storing and
transmitting results of measurement
of the amount of electricity transmitted
with a distributed measurement
function, ensuring the Company’s
functioning in the wholesale electricity
and capacity market.
Automation of electricity metering;
improvement of accuracy and
reliability of electricity metering;
a clear picture of electricity
distribution at each substation;
operational control of electricity
balances;
improvement of accuracy and
efficiency of electricity payment;
formation of a wide range of
reporting documents.
In 2019, AIMS CEM SS 35–750 kV
were operated at 908 substations
of the Company.
The system development
was carried out in conformity
with the Company’s investment
programme; an extensive list of
measures was implemented.
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?
ANSWER:
Unstoppable digital transformation
How is cybersecurity of the Rosseti FGC UES
transmission network ensured?
The relevance of cybersecurity has grown significantly in recent years. The number of incidents and
attacks on the information infrastructure of the Russian Federation is increasing; in this regard, there
is a need for centralised control and management of the information security system of the Company.
In addition, we have to comply with the requirements of federal legislation and industry regulation
in terms of ensuring the security of critical information infrastructure. To address these problems,
the Company applies the best practices and positive experience of major infrastructure organisations,
including international ones. The Company has established a Centre for Operational Management
and Response to Information Security Incidents. In the reporting year, we recorded almost 7,000
activities concerning the information security; over 5,000 of them were attempts to distribute
malicious software from the Internet and via e-mail. All the incidents were duly responded to and the
sources of threats were blocked.
The Company focuses on raising the level of employees’ awareness of personal security issues.
We started to work with bodies authorised in information security: the Federal Service for Technical
and Export Control of Russia, the Federal Security Service of Russia, the National Coordination
Centre for Computer Incidents, the State System for Detection, Prevention and Elimination of
Computer Attacks (in Russian, GosSOPKA).
Procurement activities
GRI 103-2, 102-9
The Company conducts active procurements aimed at purchasing the necessary equipment
and services on the competitive market within its investment programme, as well as annual repairs
and target programmes in all regions of its presence.
Principles of the Company’s procurement activities
Objectives of the Company’s procurement activities
Openness
Optimise the procurement management system on the basis of best practices.
Competitiveness
Justification
Reduce the Company’s expenses by cutting the cost of procured goods,
works and services and minimising intermediary services.
Provide goods, works and services of high quality at minimum cost
and in a timely manner.
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
The Unified Procurement Standard of PJSC FGC UES (Regulation of Procurement30)
is the main document that regulates the Company’s procurements.
As part of compliance with Federal Law No. 505-FZ of 31 December 2017, the revised
Regulation on Procurement was prepared in 2018, which supervises procurement to be
carried out according to the new rules of 2019.31 The Regulation on Procurement secures
the procurement of goods, works and services using the unified methodological basis
and modern competitive forms, mainly competitive bidding.
In the reporting year, Rosseti FGC UES developed and approved32 the Programme
to Improve the Quality of Procurement Management in PJSC FGC UES in accordance
with Directive of the Russian Government No. 1519p-P13 of 20 February 2019.
Certain activities were carried out aimed at assessing and advanced training of
employees who were not only directly involved in procurement, but also responsible for
the formation of the Company’s specific requirements, contract execution and payment.
For information
on the update
of procurement
methodology
and the Model of
Rosseti FGC UES’s
Procurement System,
see Appendix 1.
The following documents underpin the Company’s
procurement activities:
Regional distribution of procurements
by procurement volume
7.6 %
legal acts of the Russian Federation;
state procurement experience;
international best practices;
PJSC Rosseti Unified Procurement Standard
(Regulation on Procurement).
For the convenience of interaction with suppliers,
procurements are made through an electronic trading
platform. The updated procurement plan with the
possibility of automatic transition to the trading
platform to receive immediate information is published
each month on the Unified Information System portal
(www.zakupki.gov.ru) and at https://www.fsk-ees.ru/eng
in the Suppliers section.
26.0 %
3.3 %
19.2 %
1.7 %
9.9 %
3.9 %
The Company holds annual meetings with major suppliers
to discuss items related to interaction improvement.
12.2 %
16.1 %
As a result of the procurement campaign 2019,
the Company completed 13,826 procurement
procedures for a total amount of RUB 154 billion,
and attracted 9,820 suppliers to procure goods,
works and services.
GRI 103-3
The share of procurement procedures conducted
on a competitive basis amounted to 83.8% of the total
procurement volume (RUB 129.1 billion). The economic
effect of procurement activities amounted to RUB 2.7 billion.
- Executive Office (Moscow)
- MPS Volga (Samara)
- MPS East (Khabarovsk)
- MPS Western Siberia (Surgut)
- MPS North-West (Saint Petersburg)
- MPS Siberia (Krasnoyarsk)
- MPS Urals (Yekaterinburg)
- MPS Centre (Moscow)
- MPS South (Zheleznovodsk)
For more information on
procurement methods and
statistics, see Appendix 1.
30 In accordance with Part 2, Article 2 of Federal Law No. 223-FZ Legal Basis for Procurement of Goods, Works and Services, dated 18 July 2011.
31 Approved by the resolution of PJSC FGC UES’s Board of Directors, Minutes No. 436 of 29 January 2019.
32 Order of PJSC FGC UES No. 194 of 26 June 2019.
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PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
Procurements from local suppliers and small
and medium-sized enterprises
GRI 204-1
As procurements are made by regions of presence of PJSC FGC UES branches, a large number
of local suppliers and contractors are engaged in procurement procedures.
Up to 70% of local suppliers and contractors participate in procurements in each region.
For execution of highly specialised works, companies performing such works across the Russian
Federation can be attracted. New jobs are created and local residents and related economy
sectors are involved for the construction and commissioning of power facilities.
Annual open meetings are held with SMEs, partners and other related organisations to identify
the needs of SMEs, improve the competitive environment and increase the Company’s
procurement efficiency.
Open days for participants of procurement
procedures in 2019
From 9 October to 13 December 2019, Rosseti FGC UES held Open Days for suppliers and
potential participants of procurement procedures, including SMEs, in Sochi, Vladivostok, St.
Petersburg, Yekaterinburg and Krasnoyarsk. A series of events target the implementation of the
SMEs Acceleration federal project, as well as the profile partnership programme of the Company.
Representatives of JSC «Corporation SME», RUSNANO Fund, Skolkovo and other development
institutes and organisations took part in the work. Common mistakes of procurement participants
were discussed and general changes in the procurement legislation in the revised Unified
Procurement Standard of PJSC FGC UES were reviewed at the meetings. The results of activities
aimed to expand the participation of SMEs in the Company’s procurements were also talked about.
Representatives of small and medium-sized enterprises presented goods and services that can be
of use by the Company’s electric grid complex.
In 2014, the Company approved the Programme of Partnership between the Company and small
and medium-sized enterprises;33 SMEs that have joined the Programme are registered.
Information on the number and total value of contracts concluded with SMEs based on
procurement results for 2019
ACCORDING TO THE 2019
PROCUREMENT RESULTS, 2,388 CONTRACTS
WERE CONCLUDED WITH SMES
FOR A TOTAL AMOUNT OF
56.3
RUB BILLION (INCL. VAT)
For information
about key areas
and procurement
volumes in
the regions
in 2019, see
Appendix 1.
The Road Map for
Cooperation with
Small and Medium-
Sized Enterprises
section was developed
on the Company’s
official website:
www.fsk-ees.ru/suppliers/
dorozhnaya_karta_po_
sotrudnichestvu_s_msp.
For further
information on
cooperation
with SMEs, see
Appendix 1.
Supply chain
GRI 102-9
General types of products, works and services procured in 2019,
RUB bln (% of the total procurement amount).
CONSTRUCTION
AND RECONSTRUCTION
REPAIRS
ELECTRICITY
TRANSMISSION
TECHNOLOGICAL
CONNECTION
Electric power transmission
and technological connection services
CONSUMERS
Work package, including
design and as-built
documentation,
construction
and installation
RUB 93.26 bln
(60.5 %)
Equipment
and materials
RUB 6.96 bln
(4.5 %)
Design work,
R&D
RUB 1.98 bln
(1.3 %)
Repair
and maintenance,
operation
RUB 6.68 bln
(4.3 %)
Financial*, legal,
IT, communication
and insurance services
RUB 34.19 bln
(22.2 %)
Lease (purchase)
of land plots/forest land
plots and residential/
non-residential premises
RUB 1.63 bln
(1.1 %)
Other procurements
RUB 9.33 bln
(6.1 %)
33 In the context of compliance with Directive of the Russian Government No. 867-r of 29 May 2013, On Approval of the Action Plan (Road Map) called the Expansion
of Access for Small and Medium-Sized Enterprises to Procurements Conducted by Infrastructure Monopolies and Companies Partially Owned by the State. At present,
Directive No. 867-r has been fulfilled (Directive of the Russian Government No. 174-r of 6 February 2016).
* Financial services, including RUB 18.9 bln — limit amounts of interest expenses
on long-term framework loan agreements, concluded without obligations of the Company
and banks for loan selection/provision.
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
PERFORMANCE HIGHLIGHTS 2019
[ OPERATIONAL RESULTS ]
PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
Legal actions against the Company
in connection with procurement activities
GRI 206-1
In 2019, 70 claims were made to the FAS of Russia. Following the results of examination by
the FAS Committee, 11 claims were found to be justified, 40 claims were declared unfounded,
6 claims were recognised to be partially substantiated, 7 claims were withdrawn by the applicant,
4 claims were left undecided by the antimonopoly service, and 2 claims were pending since
no decisions were made.
Following the review of the information submitted by the Company, the FAS decided to add
4 participants of procurement procedures who have avoided signing the contracts to the register
ofbad-faith suppliers.
The Company filed 4 appeals against resolutions of the Moscow Arbitration Court. The complaints
were dismissed, the resolutions of the trial court were left unchanged.
The FAS filed 1 appeal against a resolution of the Moscow Arbitration Court. The complaint was
dismissed, the resolution of the trial court was left unchanged.
Import substitution
For information
about the claims
made to the FAS,
see Appendix 1.
The Companies activities in the area of import substitution are carried out in accordance with
the Corporate Plan of Import Substitution 2017–202034.
Its goals and objectives are aimed at ensuring process safety of the electric grid complex of the Russian
Federation and reducing dependence on foreign products, equipment, and technical devices, as well as
services/works and software of non-resident companies.
The share of domestic electrical products in the total volume
of procurement of basic electrical equipment for the needs
of Rosseti FGC UES in 2017–2019, %
85
91
89
- Domestic
- Foreign
15
9
11
2017
2018
2019
By the end of 2019, the share of procurement of domestic electrical equipment in the total volume
of PJSC FGC UES procurement totalled 89% (based on calculations of the average percentage
of costs of each of 20 types of main electrical equipment, which is most import-dependent).
34 Order of PJSC FGC UES No. 494 of 28 November 2017.
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Annual Report 2019 PJSC FGC UES
Analysis
of Financial Performance
Financial
sustainability
GRI 102-7
An analysis has been prepared on the basis of the PJSC FGC UES annual accounting indicators for 2019
according to RAS. Individual indicators are provided in accordance with IFRS Consolidated Financial
Statements and are accompanied with the corresponding note.
Key facts
of the reporting year
Financial performance
management
Effective
governance
In 2019, net profit increased by 3.5 % up
to RUB 58.1 billion compared to the previous
year. At the same time, free cash flow from
the current operations has been growing
for five years consecutively, reaching RUB
130.1 billion.
Moody’s increased the PJSC FGC UES’
credit rating to the Investment category
(Baa3 Stable).
In October 2019, Fitch agency
increased PJSC FGC UES’ credit rating
from BBB- Stable to BBB Stable.
In 2019, dividends were paid for the results
of 2018 in the amount of RUB 20.4 billion
and accrued for 9M 2019 in the amount of
RUB 11.2 billion (paid in 2020). Total volume
of dividends amounted to over RUB 31 billion.
The Company’s financial stability and creditworthiness
are maintained by means of the following:
limiting the debt burden to levels that allow for
guaranteed service and repayment of raised debts under
the valid tariff solutions;
implementing a conservative approach to financial risk
management, i.e. minimising currency risks, setting strict
requirements for partner banks, using a developed system
to secure performance of obligations by contractors using
bank guarantees and other instruments;
detailed liquidity planning on different time horizons;
using various debt financing instruments that allow
access to funds of the most conservative investors,
maximising the time periods for raising debts and
minimising the rates.
The Company has been consistently showing good economic
results in recent years which is evidence of the efficient cost
management. High level of financial stability of the Company is
confirmed by the maximum AKRA rating under the national scale
and investment ratings of The Big Three agencies. This allows us
to suggest the formation of the basis for the development projects
that are adequate to the tasks of the state agenda and the needs of
the market. The Company has the potential to create economic value
for stakeholders in the future.
Sergey Terebulin
Deputy Chairman of the Management Board of PJSC FGC UES,
member of the Management Board of PJSC FGC UES
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
Indicators describing
the efficiency of the financial policy
GRI 103-3
As of 2019, the sales margin was 24.43 %. Excluding revenues from technological connection
services (TC) (depending on the schedule of services provided, determined by customer
requests), the sales margin amounted to 18.66 %, which is 1.68 p.p. higher than in 2018.
The main factor of sales margin increase without TC is a restraint on rates of cost growth
regulated by the Company management, both on providing electricity transmission services,
and in other (unregulated) activities.
Decrease of EBITDA margin in 2019 and planned value for 2020 in comparison with the previous
periods (2015–2018) is caused by lower EBITDA growth rate compared to the Company’s
revenue growth rate. The EBITDA growth rate was slowed down due to the growth of uncontrolled
expenses (purchase of electricity losses on the WECM, taxes and duties, payment for the use
of the UNEG facilities owned by other parties in accordance with tariffs approved by the FAS
of Russia, etc.).
The current liquidity indicators are within the standard values proving the issuer’s capability
to repay its short-term liabilities using its working assets.
The interest coverage ratio has been increasing since 2016 as the interest burden
on the Company declines due to a drop in inflation, with a small adjustment in 2019 due to
a one-off spike in inflation in early 2019, including the revision of the VAT rate.
Return on sales, %
32.19
25.63 25.38 24.43
17.59
2015
2016
2017
2018
2019
16.38
2020
Target
EBITDA margin*, %
64.44
69.21 66.45
59.72 57.39
52.94
2015
2016
2017
2018
2019
2020
Target
Interest coverage ratio
ROE**
ROIC***
9.25
8.51
8.19
7.1
4.3
3.4
6.48
4.67
5.03
4.22
2.34
2015
2016
2017
2018
2019
2020
Target
2015
2016
2017
2018
2019
3.10
3.17
3.10
2.60
2.70
1.95
2015
2016
2017
2018
2019
2020
Target
2.85
2020
Target
* When calculating the indicator, the revenue of the Company is adopted excluding provision of the services of TC to the grid (in order to make it comparable
with EBITDA indicator).
** Indicator is calculated basing on the adjusted net profit of the Company (excluding the accruals and recovery of the bad debts, financial results related to sale and change
in value of quoted financial assets) and corresponding adjustment of the equity capital value.
*** Indicator is calculated basing on the adjusted EBIT (excluding operations for the accrual and restoration of provisions for doubtful debts, financial performance related
to the sale of and change in the cost of quoted business assets, and revenues from technological connection).
Financial stability indicator of Rosseti FGC UES
0.37
2.12
0.33
1.53
0.31
1.92
1.87
1.74
1.19
0.23
1.64
1.37
0.2
0.23
1.33
1.18
1.77
1.10
- Debt to equity ratio
- Net debt to EBITDA ratio
- Current liquidity ratio
2015
2016
2017
2018
2019
2020
Target
Dynamics of key financial indicators
In RUB bln
2015
2016
2017
2018
2019
2019/
2018,%
change,
%
2020
Target
Forecast
2021
2022
2023
2024
Revenue
173.3
218.4
216.0
240.3
242.7
1.0 %
235.3
240.5
254.3
250.9
262.7
Cost
134.9
140.0
152.4
170.8
174.4
2.1 %
186.7
191.0
194.5
196.2
196.6
Adjusted
EBITDA*
103.7
119.7
129.3
129.0
129.4
0.3 %
121.7
121.7
125.2
129.3
133.3
Net profit
17.9
106.1
42.4
56.2
58.1
3.5 %
29.5
31.0
38.2
34.0
42.9
Cash flow from
current activities
99.1
101.1
120.7
127.4
130.1
2.1 %
130.9
145.1
142.1
142.7
141.5
CAPEX
85.9
90.7
95.6
103.3
149.8
45.0 %
129.3
129.7
120.1
95.0
109.3
Net debt
220.3
229.9
224.7
209.5
172.1
– 17.9 %
215.0
223.8
227.8
210.5
205.4
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
Revenue
Revenue structure in 2015–2019, RUB bln
2019
2018
2017
223.1
213.6
17.2
2.32
24.3
2.37
192.6
21.4
2.03
2016
171.1
45.5
1.75
PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
Cost Management Programme
Cost optimisation
For the purpose of increasing the efficiency of the Company’s operations, optimising the volume and structure
of production and management costs, as well as for the purpose of implementing Directive No. 2303p P13
of the Government of the Russian Federation dated 16 April 2015, the Company has developed a Programme
for Increasing Investment and Operational Efficiency and Reducing Costs of JSC FGC UES, which is annually
approved as part of the Company’s business plan.
Decrease in specific operating expenses in accordance with Directive of the Government of the Russian
Federation No. 2303p-P13 of 16 April 2015 “On the reduction of operating expenses by at least 2–3 %
annually” for 2019 against the level of 2018 was 5.1 % (in comparable prices) which exceeds the target
value (3.0 %).
EBITDA and profit
Profit generation, RUB bln
2015
159.0
12.4
1.88
- Revenue from electricity transmission
services
- Revenue from technological
connection services
- Revenue from other activities
Costs
Cost
In 2019, the Company’s revenue increased by RUB 2.4 billion
(up 1.0 %) against 2018 including the following:
revenue from electricity transmission services increased by
RUB 9.5 billion (+4.5 %) mainly due to increased revenue from
electricity transmission caused by tariff growth from 1 July 2018
and from 1 July 2019 by 5.5 % in both cases;
revenue from TC services decreased by RUB 7.1 billion
(–29.1 %) due to changes in the service schedule determined
by consumer applications.
130
110
90
70
50
30
-78.7
129.4
-4.9
9.9
17.2
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The main factors of cost changes in 2019 compared to 2018 are the growth of costs on the lease of power
grid facilities (under agreements on the procedure for the use of UNEG facilities owned by other parties
in accordance with tariffs approved by the FAS of Russia), an increase in the number of equipment serviced
and the inflation factor.
The growth of management expenses amounted to 5.4% due to the increase in depreciation charges
of intangible assets as a result of the commissioning of new software complexes.
Production cost structure in 2019, RUB bln
Dynamics of full production cost, RUB bln
Adjusted EBITDA for 2019 increased by
RUB 0.4 billion (+0.3) compared to 2018
and amounted to RUB 129.4 billion.
Net profit for 2019 amounted
to RUB 58.1 billion, which is 3.5 %
more than in 2018.
Earnings per share, RUB
0.0832
+3.5 %
0.0441
0.0456
0.0332
0.01402
0.00404
2014
2015
2016
2017
2018
2019
179.3
183.4
142.8
148.1
160.6
Capex
37.7
24.1
23
- Electricity and capacity
acquisition
- Labour
and social charges
- Other production
expenses
- Administrative expenses
- Amortisation
and property tax
(for production assets)
89.6
9
2015
2016
2017
2018
2019
Electricity transmission is a capital-intensive business, and many of the Group’s
production facilities are outdated and require regular maintenance and upgrading.
The costs on maintaining, expanding and increasing the efficiency and size of
the electricity transmission grid represent a priority for the Company and have
a significant effect on the cash flows and future operating results.
In 2019, the Company did not use means of state support in the form of subsidies
or budget investments.
For more
information on the
Company’s capital
expenditures,
see the section
Investment
Activities.
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PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
Cash Flow
Cash flow balance, RUB billion
Cash flow balance
2015
– 17.5
2016
14.0
2017
– 2.6
2018
– 1.6
2019
–1.3
Cash flow balance from current operations
99.1
101.1
120.7
127.4
130.1
Cash flow balance from investments
– 132.6
– 55.2
– 96.3
– 99.8
– 91.6
Cash flow balance from financial operations
16.0
– 30.0
– 27.0
– 29.3
– 39.9
Profit Distribution and Dividend Policy
The principles of the Rosseti FGC UES dividend policy are set in the Regulations on Dividend
Policy of PJSC FGC UES approved by the Board of Directors35.
The Regulations on Dividend Policy take into account the decision of the Russian Government
and certain recommendations of the Corporate Governance Code36 in terms of determining
the size of the dividend accounting for at least 50% of net profit as in financial statements37,
including consolidated financial statements, compiled in accordance with the International
Financial Reporting Standards (IFRS).
The Regulation on Dividend
Policy of PJSC FGC UES is
available on the website at
www.fsk-ees.ru, in the section
Shareholders and Investors/
Corporate Governance/
Constituent and Corporate
Documents http://www.
fsk-ees.ru/shareholders_
and_investors/corporate_
governance/constituent_and_
internal_documents/.
Dividend History of PJSC FGC UES
Dividend per share, RUB
Dividend yield of PJSC FGC UES shares
0.0143 0.0148
0.0160
0.0133
2.4 %
0.0007
1.5 %
2014
2015
2016
2017
2018
2015
2016
2017
2018
2019
10.8 %
9.1 %
7.6 %
Dividend yield* of the most capitilised and liquid shares
of Russian companies operating in the electric power
sector
10.8 %
10.2 %
7.6 %
4.4 %
4.3 %
In 2019, the dividend yield of PJSC FGC UES
shares amounted to 10.8 %*. This was one
of the highest indicators among all enterprises
in the sector.
FGC UES
Inter RAO
Unipro
RusHydro Mosenergo
For more information on the dynamics of PJSC FGC UES
shares and total shareholder return (TSR), see section
Share Capital, Securities Trading.
* Dividend yield is calculated as the ratio of dividends paid in 2019 per share to the share price as of the beginning of 2019
(excluding dividends paid for the 9M 2019 results).
2016
(for 2015)
2017
(for 2016)
2017
(for Q1
2017)
2018
(for 2017)
2019
(for 2018)
Total dividends, RUB mln
16,976.6
18,184.8
1,423.1
18,884.71*
20,449.4
2019
(for 9M
2019)
11,229.3
Debt Obligations
As of 31 December 2019, the total debt portfolio (without accrued interest) amounted to RUB 224.5 billion
(as of 31 December 2018 — RUB 243.9 billion).
Dividend per share, RUB
0.0133185
0.0142663525
0.0011164730
0.014815395834
0.016042926012
0.00880960765
In 2019, the Company had no new borrowings.
Dividends, % of net profit as per RAS
95%
17%**
16%
50% (of the adjusted
net profit as per RAS)
50% (of the adjusted net
profit as per RAS)
-
Date of declaration
29 June 2016
29 June 2017
29 June 2017
28 June 2018
26 June 2019
30 December 2019
Date of actual payment
25 July 2016**
15 August 2016***
2 August 2017**
23 June 2017***
2 August 2017**
23 August 2017***
1 August 2018**
22 August 2018***
30 July 2019**
20 August 2019***
27 January 2020**
17 February 2020***
Balance of unpaid dividends****
(as of 31 December 2019), RUB mln
64
70.5
5.5
75.05
57.66
Payment of dividends
started in 2020.
* Excluding dividends paid for Q1 2017.
** To nominee holders and trustees.
*** To other persons registered in the PJSC FGC UES shareholder register.
**** Dividends were paid in full to all the persons registered in the Company’s shareholder register, except for those who had not promptly
informed the register-keeper on changes in their data, and whose dividend payment details were incorrect.
35 Resolution of the Board of Directors, Minutes No. 406 as of 30 May 2018.
36 Directive of the Government of the Russian Federation No. 1094-r of 25 May 2017.
37 The amount was calculated taking into account the adjustment of net profit in accordance with Regulation No. 1094-r of the Government
of the Russian Federation dated 29 May 2017.
The weighted average cost of the debt portfolio as of
31 December 2019 was 6.14 % per annum, which is
0.23 % higher than as of 31 December 2018 (5.91 %
per annum). The growth in the weighted average cost
of debt portfolio was caused by the growth of CPI.
The Company bonds outstanding are listed on PJSC
Moscow Stock Exchange on the First, Second and
Third listing levels.
Bond loan repayment schedule
over next 5 years, RUB bln
27.86
20.00
19.00
17.00
Bond loan structure, RUB*
2019
2018
2017
2016
2015
84.3
86.2
96.5
103.9
117.1
140
140
140
140
0.42
2020
2021
2022
2023
2024
17.5
17.5
17.5
- Bond loans
- Infrastructure bonds
- Eurobonds
140
17.5
* Principal debt, excluding interest accrued
as of the balance sheet date.
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2019 Annual Report
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PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
Credit Ratings
On 12 February 2019, Moody’s rating agency increased the PJSC FGC UES’ credit rating
to the investment category (Baa3 Stable).
In October 2019, Fitch agency increased PJSC FGC UES’ credit rating from BBB– to BBB.
The Company’s credit ratings assigned by international rating agencies Standard & Poor’s, Moody’s
and Fitch Ratings based on their global scales remain at the sovereign level. The credit rating from
Russian rating agency AСRA has been confirmed at the level of the financial obligation credit rating
of the Government of the Russian Federation.
Credit Ratings of the Company as of 31 December 2019
Rating
agency
Standard & Poor’s
Moody’s
Fitch Ratings Ltd
Rating
agency
JSC ACRA
International
scale rating
BBB–
Ваa3
ВВВ
National
scale rating
ААА (RU)
Forecast
Stable
Stable
Stable
Forecast
Stable
Date of last rating review
16 May 2019
12 February 2019
15 October 2019
Date
of last rating review
25 November 2019
Tariff Regulation
Company’s Tariff Policy
Rosseti FGC UES carries out regulated activities to provide electricity transmission services through
the UNEG, power distribution grids (DGC facilities), technological connection to electric grids, and other
non-regulated activities.
The Company’s core business of electricity transmission via the UNEG and technological connection
services is performed basing on the tariffs that are approved by the federal executive authority for tariff
regulation. The functions of state regulation of tariffs for the services rendered by the Company have
been delegated to the Federal Antimonopoly Service.
The FAS of Russia defines two payment methods for technological connection to the UNEG facilities:
the approval of an individual payment for a specific applicant (in case construction of electrical grid facilities
is required) and the approval of a payment per formula using the standard tariff C1 rate.
PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
Tariffs for electricity transmission services
Since 2010, the tariffs for Rosseti FGC UES electricity transmission services via the UNEG have been set on
the basis of the return on invested capital method (RAB regulation).
In order to establish the tariffs for each year of the regulated period, the required gross revenue (RGR)
is determined by summing up the return values, the return on invested capital, and the expenses required
for provision of electricity transmission services via the UNEG. To prevent sharp increase in tariffs,
the RAB regulation method provides for a smoothing mechanism that redistributes the required gross revenue
over the years throughout the entire long-term regulation period.
Tariffs for Electricity Transmission via UNEG, RUB/MW per month38
From
1 January
2015 until
30 June
2015
From
1 July 2015
until
30 June
2016
From
1 July 2016
until
30 June
2017
From
1 July 2017
until
30 June
2018
From
1 July 2018
until
30 June
2019
From
1 July 2019
until
31 December
2019
From
1 July 2020
until
31 December
2020
134,589
144,687
155,542
164,096
173,164
182,697.68
192,746.05
52,923
56,869
61,138
64,402
67,955
71,690.66
75,653.94
Tariffs for Services
of Electric Power
Transmission via
the UNEG
Tariffs for electric
power transmission
services via
the UNEG for
the constituent
entities of the Rus-
sian Federation
forming part of
the North Caucasian
Federal District
The main long-term regulatory parameters established by FAS of Russia
for the second long-term regulation period of 2015–2020
Rate of return on capital invested, %
2015
10
Base level of operating expenditures, RUB million
35,023.035
Operating expenditure efficiency index, %
3.0
2016
2017
2018
2019
2020
10
–
3.0
10
–
3.0
10
–
3.0
10
–
3.0
10
–
3.0
Net current capital, RUB million
11,418
11,919
12,432
12,967
13,524
14,092.5
Period of return of capital invested, years
35
35
35
35
35
35
Electric power loss rate, when transferred
via electric grids, %
4.27 %
4.27 %
4.27 %
4.27 %
4.27 %
4.27 %
For information about tariff regulation, control of reliability and quality of services, tariffs for UNEG technological connection services, as well as
the list of main regulatory acts governing tariff setting and electricity transmission via the UNEG, see Appendix 1.
38 The tariff rate of payment for the standard process electric power losses when transferring via the UNEG as of 1 July 2015 is determined by
the formula in accordance with the Russian Federation Government Resolution No. 458 on 11 May 2015.
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PERFORMANCE HIGHLIGHTS 2019
[ ANALYSIS OF FINANCIAL PERFORMANCE ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
REFERENCE. Consolidated information on financial performance under IFRS
(RUB bln, except for the ratios and indicators given in %)
2015
2016
2017
2018
2019
Consolidated statement indicators of profit and loss
and other comprehensive income
Revenues
Other operating income
Operating expenses
Profit / (loss) for the year
Financial information not regulated by IFRS
EBITDA (1)
Adjusted EBITDA (2)
Adjusted profit for the period (3)
Coefficients and other indicators
Return on assets (4)
Return on equity (5)
Current liquidity ratio (6)
Total equity/Total assets ratio
Total debt
Short-term debt
Long-term debt
Net debt (7)
Net debt / adjusted EBITDA
Cash flow from operating activity
187.0
4.0
255.6
6.0
242.2
6.4
(131.0)
(155.5)
(151.7)
6.5
(151.2)39
254.0
249.6
44.1
68.4
72.7
92.8
98.1
104.4
40.8
4.8 %
7.8 %
1.22
0.62
281.5
31.5
250.0
222.9
2.1
98.0
120.3
116.7
46.4
129.0
126.4
86.6
140.5
133.6
91.0
8.3 %
7.4 %
12.8 %
11.0 %
7.8 %
11.4 %
1.19
0.66
266.7
29.7
237.0
221.8
1.9
111.5
1.18
0.68
257.9
24.0
233.9
215.4
1.7
120.8
1.62
0.69
246.8
22.2
224.6
205.4
1.5
124.1
136.2
6.3
155.3
86.6
140.7
136.2
83.7
6.7 %
9.6 %
1.39
0.71
239.7
31.4
208.3
176.8
1.3
(1) EBITDA is a profit/(loss) for the period before taxes, interest, depreciation and amortisation.
(2) Adjusted EBITDA for 2017–2018 was calculated as EBITDA (profit for the period before income tax expenses, financial
income and costs, and depreciation) after deduction of the reversed/accrued net loss from depreciation of fixed assets,
revenue from technological connection, costs for creation of provisions for expected credit losses and doubtful debts, loss
from derecognition of the subsidiary (only for 2017), profit from the exchange of assets (only for 2019), loss from termination
of an affiliate (only for 2019), changes in the provision for legal claims and taking into account financial income.
Adjusted EBITDA for 2015–2016 was calculated as EBITDA after the deduction of net loss from depreciation and revaluation
of fixed assets, gain on derecognition of the subsidiary (only until 2016), revenue from technological connection, cost of
creating provisions for doubtful debts (excluding the depreciation amount of the accounts receivable calculated as a difference
between the book value of the accounts receivable and the present value of the estimated future cash flows),
and taking into account financial income.
(3) Adjusted profit for 2017–2019 was calculated as the profit for the period after deduction of the reversed/accrued net loss
from depreciation of fixed assets, loss and gain on derecognition of the subsidiary (only for 2019), profit from the exchange
of assets (only for 2019), loss from termination of an affiliate (only for 2019), including the respective amounts of the deferred
income tax (except for the deferred income tax on technological connection).
(4) Adjusted profit for 2015-2016 was calculated as the profit for the period after deduction of net loss from depreciation
and revaluation of fixed assets, gain on derecognition of the subsidiary (only for 2016), including the respective amounts
of the deferred income tax.
(5) The return on assets was calculated as the adjusted profit for the period divided by the average of the total assets
for the period.
(6) Return on equity is calculated as adjusted profit for the period divided by the average equity value for the corresponding
period.
(7) Current liquidity ratio is calculated as ratio of the consolidated current assets to consolidated current liabilities.
(8) Net debt is a long-term and floating debt less cash and equivalents, short term bank deposits and short term notes.
The list of organisations included in the outline of the consolidation of financial statements
(in accordance with the indicators GRI 102-45, 201-1)
No.
Name of the organisation
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
PJSC FGC UES
JSC APBE
Index Energetiki — FGC UES LLC
JSC Kuban Trunk Grids
JSC Mobile GTES
JSC MUS Energetiki
JSC NTC FGC UES
JSC Tomsk Trunk Grids
JSC TsIUS UES
JSC ChitaTechEnergo
JSC Electrosetservice UNEG
JSC ESSK UES
IT Energy Service LLC
FGC – Asset Management LLC
JSC ENIN (affiliate consolidated by the equity method)
JSC IPS SakRusenergo (affiliate consolidated by the equity method)
Federal Grid Designated Activity Company (structured company controlled by PJSC FGC UES)
INN
4716016979
7729530055
7729601362
2312130841
7706627050
7705039240
7728589190
7017114665
7728645409
7536053550
7705825187
7723185941
7729403949
7728320231
7725054454
–
–
Sustainable Development
and Corporate Social
Responsibility
Е
S G
The underlying principle of Rosseti FGC UES’s strategic goal-setting in the field of sustainable
development and corporate social responsibility is maintaining a balance between the economic, social
and environmental aspects of the Company’s activities.
The Company considers sustainable development and corporate social responsibility to be integral
and key parts of its business, and is striving to integrate this standpoint in its day-to-day operations, while
keeping to the principle of transparency and developing dialogue with a wide circle of stakeholders.
On the one hand, in its special role as an operator of UNEG – state-controlled technological infrastructure
that is systemically important for the Russian energy system – the Company ensures that UNEG runs
smoothly and develops adequately with economic growth, with high efficiency and minimal waste.
On the other hand, Rosseti FGC UES is aware of its impact on the economy, society and the environment
and, when making strategic decisions, analyses and considers associated risks.
39 Due to the change in the reporting format, the item «Provision for expected credit losses» of RUB 4.6 billion was excluded from operating expenses
in the compared period.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Priority areas of the Company’s work on sustainable development and corporate social responsibility:
Sustainable development management
improving the energy efficiency and reliability of the power grid infrastructure;
responsible business conduct and integrating social responsibility into all Company divisions;
introducing new technological solutions;
supporting a responsible HR management system aimed at the optimal use of human capital
and involvement of employees in the effective implementation of the Company’s corporate
objectives;
keeping UNEG running safely;
supporting domestic manufacturers;
minimising environmental impact, with a focus on environmental compliance and rational use
of natural resources in electric power transmission;
supporting social and economic development and the well-being of the regions of presence;
interacting constructively with stakeholders.
To achieve these objectives, Rosseti FGC UES has integrated the priorities of sustainable development and
corporate social responsibility into the Company’s Long-Term Development Programme. So, the Company’s
LDP is designed to minimise the negative impact of electric power transmission, and also sets targets for various
mechanisms to raise the Company’s economic resilience.
Thus, sustainable development is part of the corporate strategy and is integrated into the Company’s business
processes.
As a result of extensive work carried out by the Company in terms of
sustainable development, in 2019, Rosseti FGC UES’s shares were listed
in the FTSE4Good index, designed for investors who are committed to
responsible investment.
At the end of the reporting year,
the Russian Union of Industrialists and
Entrepreneurs (RUIE) named the Company
as a leader in the Responsibility and
Openness and Vector of Sustainable
Development lists, according to the annual
assessment results. This decision proves
the high value of the Company’s activities
in the field of corporate governance
along with social and environmental
development.
Stakeholders’ contribution to shaping the Company’s
strategy
At the beginning of 2020, the equity
shares of PJSC FGC UES were
first included in the Moscow Stock
Exchange Index Calculation Base —
RSPP: Responsibility and Openness and
Vector of Sustainable Development.
Stakeholder
engagement
Business
functions within
the Company
Productivity
measurement
Sustainability
reporting
Strategy
implementation
Stakeholder
engagement
Adjustments
of tasks, prioritisation
of goals
In 2019, the Company established a Sustainable Development and Corporate Social Responsibility Policy
for PJSC FGC UES, that was reviewed by the Management Board40 and recommended for approval by
the Board of Directors. The document defines principles, goals, objectives and approaches to sustainable
development management and stakeholder engagement.
GRI 102-26
As per this document, responsibility for decision-making in the area of sustainable development and
corporate social responsibility is distributed between the Board of Directors, the Management Board, deputy
chairmen of the Management Board, directors, and heads of structural divisions.
Rosseti FGC UES’s commitment
to the UN Sustainable Development Goals*
GRI 102-12
In 2015, all UN member states adopted 17 sustainable development goals aimed at eradicating
poverty, protecting our planet, and improving quality of life and prospects for people around the globe.
At the same time, a 15-year plan for achieving them was adopted.
The Company has made a list of priority and important goals in line with the specifics of its activities, and
it takes these into account during strategic planning and operational activities.
The UN
Sustainable
Development
Goals
Affordable
and clean
energy
l
s
a
o
g
y
t
i
r
o
i
r
P
Commendable
work and
economic
growth
Summary
of the goals
Ensuring universal access
to affordable, reliable,
sustainable and modern
energy sources for all.
The Company’s
contribution
to achieving the goals
Uninterrupted power
supply to consumers.
Creating the conditions
for the technological
connection of renewable
energy generation facilities.
Practical
implementation
Pens41 was 7.1% higher in 2019
than a year earlier.
The Pp indicator42 was achieved
relative to the target value set by
Order of the FTS of Russia No.
297-e/3 of 9.12.2014.
Three renewable energy facilities
with a total capacity of 55 MW were
connected to UNEG.
Promoting sustained,
inclusive and sustainable
economic growth, full and
productive employment
and dignified work for all.
Improving labour
productivity.
A 4.7 % increase in labour
productivity was achieved.
Ensuring appropriate pay
The average salary of employees
and working conditions,
respecting the rights of
employees.
of the Company grew by 4.5 %
over the course of the year.
This indicator is 1.8 times
higher than the national
average wage
S
40 Minutes of the Management Board No. 1685/2 of 13 March 2020.
41 Volume of undersupplied electricity, Pens.
42 Average length of time for the cessation of electric power transmission.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
The UN
Sustainable
Development
Goals
Industrialisation,
innovation and
infrastructure
l
s
a
o
g
y
t
i
r
o
i
r
P
Responsible
consumption
and production
Good health
and well-being
Quality
education
l
s
a
o
g
t
n
a
v
e
e
R
l
Summary
of the goals
Creating stable
infrastructure,
and promoting
inclusive and
sustainable
industrialisation
and innovation.
The Company’s
contribution
to achieving the goals
Preserving and developing
UNEG.
Modernising the infrastructure
of the main electric grid.
Innovative activities
and implementing the R&D
Programme.
Ensuring the transition
to rational consumption
and production models.
Improving energy efficiency
and reducing losses.
Rational use of natural
resources.
Minimising negative impact on
the environment.
Efficient operation of
the environmental management
system.
Practical
implementation
2,832 km of power transmission lines
and 3,957 MVA of transformer capacity
were put into operation.
There are 150 active substations
where IEC standard 61850 is applied.
Remote control was implemented at
22 substations.
Two invention patents and four
certificates for computer software were
received.
A 7 % reduction in water consumption.
The cumulative effect of energy-
efficiency and energy-saving
programmes amounted to 55.268 million
kWh.
Ensuring a healthy
lifestyle and promoting
well-being for people
of all ages.
Health and life insurance
for staff.
Ensuring safe working
conditions and occupational
safety.
Holding corporate sports events.
Workplace injuries reduced by 34 %.
42 sports events were held, involving
workers in local, regional and industry-
wide competitions.
Ensuring inclusive,
fairand high-quality
education and promoting
lifelong learning
opportunities for all.
Training, re-training and
advanced training for staff.
Improving the quality of training
new specialists for the electric grid
complex.
Cooperating with higher
and secondary specialised
educational institutions.
17,859 employees took part in training,
re-training and advanced training
programmes.
980 students completed internships
at the Company’s production facilities.
52 partner universities as of the end
of 2019.
Making cities
and populated areas
inclusive, safe, resilient
and environmentally
sustainable.
Improving the reliability
of the supply of energy to
consumers in cities and populated
areas.
Applying technical architectural
solutions that promote the rational
use of land in cities and populated
areas and preserving the integrity
of their architectural appearance.
Sustainable
cities and
populated
areas
0.009643 is the reliability indicator for
services provided. This is 0.0244 lower
than the target value of 2019.
The UN
Sustainable
Development
Goals
Conserving
terrestrial
ecosystems
Summary
of the goals
Protecting and restoring
terrestrial ecosystems
and supporting their
rational use, sustainable
forest management,
combating desertification,
halting and reversing
land degradation, and
halting biodiversity loss.
The Company’s
contribution
to achieving the goals
Practical
implementation
Taking action to minimise
Over 80,000 bird-protection
the impact of power grid
infrastructure on the lives
of animals.
Recreating natural
resources and
compensatory planting
ofseedlings.
devices installed.
Over 81,000 juvenile sturgeon
released into reservoirs to restore
the population.
Revitalising the global
partnership for sustainable
development.
Effective interaction
with stakeholders.
Studying and applying
the best global practices
through an international
scientific and technical
exchange.
Supporting small and
medium-sized enterprises.
Partnership for
sustainable
development
The share of procurements
made from small and medium-
sized enterprises is over 63 %.
Е
G
l
s
a
o
g
t
n
a
v
e
e
R
l
Е
S
S
S
43 The reliability of services provided is determined by the ratio of the actual total duration of electricity outages during the control period (hour)
to the maximum number of consumer connection points for the same period.
* The remaining UN goals are not directly related to the Company’s activities. The Company shares them and makes
the best possible contribution to their achievement.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
HR Management
Human
GRI 103-2 a
Human capital represents a combination of employees’ knowledge, skills and experience, necessary to
implement the Company’s strategy and introduce innovations. The Company is focussing on the growth and
motivation of its employees. It recognises their expertise as an important aspect of sustainable development.
The Company’s success depends on the health and well-being of its employees, which is why we care about
improving their life quality.
GRI 103-2 b
Rosseti FGC UES’s strategic goal in the field of HR management is to create a balanced management
system, optimise our use of human resources, satisfy the social and material needs of our employees,
and continue to develop, train and involve them in the efficient implementation of the Company’s goals.
To achieve the HR management strategic goal, the Company is using modern approaches and tools to
manage and develop its staff, including integrated IT solutions.
GRI 103-2 c-i
When it comes to HR management, we are acting on the following documents:
international documents: the Universal Declaration of Human Rights, the UN Global Compact,
and the ILO Conventions;
the Company’s internal documents (listed in Appendix 1).
Rosseti FGC UES key competitive advantage is its
highly-qualified and motivated employees. PJSC FGC
UES key strategic goal in the field of HR management
is to improve staff efficiency and engagement to ensure
the reliable operation and development of UNEG.
The Company is implementing a long-term programme
aimed at preparing reservists for appointments to special
positions and ensuring continuity in technological process
management. The measures taken by the Company
to improve performance over the past five years have
significantly boosted labour productivity. Further growth in
labour productivity is linked with the introduction of digital
technologies, training specialists to work in new conditions,
and improved competency profiles. In 2019, the Company
won the first prize in a contest organised by the Ministry of
Energy of Russia for the Best Socially-Oriented Company in
the Energy Sector, and in the Development of the Labour
Market and Promotion of Employment category.
Natalia Ozhegina
Deputy Chairman of the Management Board of PJSC FGC UES
GRI 103-2 c-ii
The Company is using a number of mechanisms to achieve its strategic goals, including
performance management through increased employee motivation, creating the conditions
for professional growth and career development, and reinforcing a unified corporate culture
with consideration for the socio-economic development and specifics of the Company’s
regions of presence.
GRI 103-2 c-iii
Priority areas of the Company’s HR policy are:
managing staff efficiency;
managing staff numbers;
managing staff development.
Key objectives for HR management during digital transformation are:
creating and introducing an HR management system to promote effective management
of electric grid facilities with a high level of automation, advanced information technology
and management systems, modern equipment and next-generation communications
network technologies;
ensuring the availability of qualified personnel for remote management of substations,
automating technological processes, and using digital technologies and equipment
in the electric grid complex.
GRI 103-2 c-v
With a view to improving performance effectiveness and optimising its use of human resources,
the Company is taking consistent steps to improve labour productivity44 and cut operating costs by
optimising staff costs.
GRI 102-16
The Code of Corporate Ethics and Employee Conduct of PJSC FGC UES is a set of
general principles, regulations and rules of professional ethics and corporate conduct
to be adhered to by all Company staff, irrespective of their position.
The Code is designed to promote the achievement of the Company’s strategic goals,
to shape collective, positive behaviour patterns and a corporate spirit, to strengthen
the Company’s authority and the trust that shareholders, investors, lenders and other
stakeholders have in the company, to develop open and trusting relations with the
state, organisations and citizens, to increase the efficiency with which the Company’s
employees fulfil their employment responsibilities, and to maintain and improve
the Company’s technological, production and scientific potential. All newly-hired
employees are familiarised with the Code.
Information on
KPIs in the field of
HR management
(Improving Labour
Productivity) is
disclosed in the
Key Performance
Indicators section.
Information
on additional
target values for
the HR policy
established at
the level of heads
of the Company’s
executive office
and branches
can be found in
Appendix 1.
More detail about the
Code is available at
http://www.fsk-ees.
ru, in the Personnel/
Code of Corporate
Ethics section.
Information on
the complaints
procedure for
employees can be
found in Appendix 1.
44 In pursuance of directives of the Russian Government No. 2454p-P13 of 24 April 2014, No. 2303p-P13 of 16 April 2015, No. 4750p-P13
of 4 July 2016, and No. 12153-P13 of 25 December 2019.
PJSC FGC UES
2019 Annual Report
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Results of Implementing the HR Policy
Number and qualifications of employees
Rosseti FGC UES employee headcount
by branch in 2019
10 %
9 %
Staffing level in Rosseti FGC UES
GRI 102-7, 103-2, 103-3
One of the HR policy’s key priority areas is maintaining the number and qualification of employees
necessary for safe functioning and growth of the Company.
The average headcount of the Company for 2019 was 22,028 people, which is almost the same as of
the last year.
GRI 401-1
In 2019, the active employee turnover rate was 5.11 %. The staffing level in the Company remains
high and on 31 December 2019 it was 96.4 %, which proves high level of personnel availability.
Rosseti FGC UES has high standards for the level of education and qualification of its employees.
The employee structure by level of education has remained unchanged in recent years, and workers with
higher education make up the majority (64 %).
One of our utmost priorities is updating and maintaining the quantitative and qualitative composition of
personnel in order to ensure the reliable operation and development of our Company. The average age
of the Company’s employees is 41 years. Moreover, the majority of the Company’s personnel (50%) are
employees who are in the most economically and socially active age, i.e. up to 45 years. Thus, Rosseti FGC
UES has an optimal combination of young, enterprising employees and experienced, highly professional
workers, ensuring that the transfer of their professional skills and experience is achieved and mutually shared.
We are taking measures to help us reach our goals and maintain the necessary high level of work from our
staff. In 2019, the Company won the first prize in a contest organised by the Ministry of Energy of Russia for
the Best Socially-Oriented Company in the Energy Sector, and also in the Development of the Labour Market
and Promotion of Employment category.
GRI 102-8
The Company has a tiny share of outsourced activities. There are no seasonal variations in the staffing.
15 %
11 %
4 %
97.2 %
18 %
10 %
96.4 %
96.8 %
96.7 % 96.7 %
14 %
9 %
- Ex. Office
- MPS Centre
- MPS Urals
- MPS Siberia
- MPS North-West
- MPS West Siberia
- MPS Volga
- MPS South
- MPS East
2015
2016
2017
2018
2019
Employee turnover in Rosseti FGC UES
Rosseti FGC UES average employee headcount
8.66 %
23,358
4.92 %
5.20 %
4.64 %
5.11 %
22,150
21,876
22,052 22,028
-5 %
-1 %
+1 %
-0,1 %
Employee structure by education
as of 31 December 2019
0.3 %
- Higher professional
education
- Secondary
vocational
and secondary
general education
- Academic degree
Employee structure by category as of 31 December 2019
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
13.8 %
- Managers
- Specialists
- Workers
35.7 %
64 %
43.5 %
42.7 %
Employee gender structure as of 31 December 2019
Employee structure by age in 2019
17 %
- Women
- Men
22.4 %
0.3 %
3 %
- under 25
- 25–50
- over 50
up to pension age
- working
pensioners
83 %
74.3 %
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Staff training and development
Training, re-training and advanced training for staff
GRI 103-2
Rosseti FGC UES’s system of personnel training and development is an important area of its HR policy,
giving our employees relevant and promising professional competencies from the point of view of
digitalisation.
The Company’s training centres remain the main platform for personnel training at Rosseti FGC UES.
They offer 80 standard advanced training and 17 professional training programmes. All educational
programmes fully meet professional standards, which proves professional and public accreditation we
have received for the most popular advanced training programmes.
The Personnel Training Centres place a special focus on the training of practical skills at special electric
grid sites, in relay protection and automation laboratories, and with the use of computer simulator
complexes.
Distribution of Rosseti FGC UES trained
employees by category in 2019
40.5 %
56 %
More detailed
information about
the share of
employees who
participated in
these training
sessions, and
the relationship
between training
costs and payroll
is available in
Appendix 1.
In total, 17,859 employees of
the Company took part in training,
re-training and advanced training
programmes in 2019. 11,502 of them
were trained at the Company’s Personnel
Training Centres. The share of personnel
trained off-site in 2019 amounted to
81 % of the Company’s total staff. For
dispatchers at Grid Control Centres of
MPS and EMPS, 467 emergency training
examinations were conducted.
In 2019, as part of the ‘Knowledge Day’
educational project, carried out annually
at Rosseti FGC UES to develop the skills
management system and advanced personnel
training, 320 events were organised involving
9,700 employees
GRI 404-1
Average number of training hours in 2019
?
ANSWER:
Market competition over staff able to work
in changing conditions is becoming fiercer.
What advanced training practices
are used by Rosseti FGC UES?
What conditions should be created
to develop and retain talented workers?
What is staff readiness for digital
transformation?
In order to train staff to work in a digital electric grid complex, Rosseti FGC UES is actively working in
several areas. On the one hand, we are taking a systematic approach to the development and re-training
of Company personnel. The Company is working on new training programmes, upgrading its in-house
training centres by introducing new digital equipment and technology, and retraining its specialists in new
professional competencies.
On the other hand, we are happy to be involved in training personnel for the energy industry of the future,
expanding our cooperation with energy companies, universities and the international energy community.
The Company is involved in developing and upgrading existing educational programmes of higher and
secondary special educational institutions, along with educational laboratories and digital equipment
training facilities. Engaging students and graduates in the Company’s research activities and implementing
a programme for the professional development of talented youth in the electric power sector in partnership
with the Youth Section of the CIGRE Russian National Committee are important for the Company.
3.5 %
- Managers
- Specialists
- Workers
GRI 103-3
Personnel qualification assessment
Men
Women
Management
Specialists
Labourers
32 hours/person
28 hours/person
40 hours/person
24 hours/person
20 hours/person
32 hours/person
The average number of training hours per employee in 2019 was 29.
In accordance with the educational activities licence, Personnel Training Centres train not only Company
staff, but also carry out complex training projects for third-party clients. In 2019, 1,590 external customers
received training, including 20 specialists from the Vietnamese power grid company EVN NPT.
Company employees carry out the most important functions to ensure UNEG’s reliability. This creates special
requirements for assessing their knowledge and skills.
Professional standards in the electric power industry, approved by the Ministry of Labour of Russia, are used
as a guideline when training, developing and assessing the qualifications of staff. To assess an employee’s
qualifications through an independent assessment, a Qualification Development and Assessment Centre was
created, based in the Company’s scientific and technical centre.
In the reporting period, in order to conduct professional exams for compliance with employee qualifications,
35 sets of assessment methods were developed and adapted to the specifics of electric transmission
networks. At the examination sites of MPS branches’ Personnel Training Centres, 1,389 operation and
maintenance employees took an independent assessment, and 1,321 of them passed.
PJSC FGC UES came third in the Best Qualification Assessment Centre competition, organised in 2019
by the National Presidential Council for Professional Qualifications and the National Agency for the
Development of Qualifications.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Employee pool
The Company carries out consistent work on the following employee pools:
Managerial pool including senior managemeng of the Company;
Younth pool covering all Company employees under 30;
Production pool including managers of branch production facilities.
In 2019, special emphasis was placed on in-depth forming and developing of a reserve employee
pool for the Chief Engineer unit.
An employee pool was created to provide managers with highly qualified staff in the long-term through
the formation, development and appointment of participants from the programme to dedicated positions.
Retaining the best employees by means of additional opportunities for professional development and
career growth is vital.
The employee pool for the Chief Engineer unit includes 337 reserve employees for 349 dedicated
positions.
Appointments to higher positions from the reserve pool as of 31 December 2019, people
Type of employee pool
Number
Production employee pool
Young employee pool
337
39
Appointment
to dedicated positions
63 (18.7 %)
14 (36 %)
Other appointments
–
–
For more
information on
cooperation
with specialised
educational
establishments,
please see
Appendix 1.
Youth Policy
In 2019, PJSC FGC UES was thanked by the Ministry of Energy of Russia for its contribution to the
promotion of the fuel and energy complex and engineering education.
The youth policy of Rosseti FGC UES is aimed at supporting the professional growth of young
employees and attracting talented graduates to work in the Company.
Rosseti FGC UES has developed an integrated approach to working with young employees, as well
as attracting and retaining them. The Company has the PJSC FGC UES Youth Policy in place, which
covers three strategic areas of working with young people:
increasing the attractiveness of Rosseti FGC UES for students of higher and secondary
establishments of professional education when selecting their future professions, and
developing mutually beneficial cooperation with specialised higher and secondary
establishments of professional education;
socialising labour and adapting young specialists to the Company’s corporate environment,
promoting advanced training, professional advancement for young specialists, and the formation
and development of professional leadership qualities: a proactive attitude, and professional
initiative;
promoting professions in the energy sector, and increasing the interest of students in activities
of Rosseti FGC UES.
Furthermore, since 2012, the Company has had a Policy on Young Specialists, which provides
information on a range of social and professional development programmes for young specialists
at the Company.
Annually Rosseti FGC UES cooperated with almost
80 establishments of higher education and 40 specialised secondary
educational establishments, including contractual cooperation
with 52 and 11 establishments, respectively.
Rosseti FGC UES is an active participant in the annual All-Russian Olympiad for
schoolchildren, organized by PJSC Rosseti in order to identify gifted, capable
of innovative thinking high school students planning their professional activities
in the electric power industry. In 2019, more than 300 schoolchildren took part
in competitions at MS Personnel Training Centres in the East, West Siberia,
the Urals and the South. The winners took part in the energy project crew and
were included in Rosseti Group’s employee pool.
To facilitate an exchange of experience and join efforts in terms of personnel
training for the energy industry of the future, the Company is developing
cooperation with the international scientific community. PJSC FGC UES holds
over 20 events every year together with universities, energy companies and
the Youth Section of the CIGRE Russian National Committee, which is the largest
international scientific and technical association in the energy sector. In 2019,
six olympiads, eight scientific and technical conferences and forums, three
competitions, and one championship, as well as colloquiums, quizzes, and
practical open lectures by representatives of research subcommittees of CIGRE
RNC were held.
In total, 7,000 students and young specialists took part in the Youth Section
programmes, including representatives of youth associations from Germany,
the United Kingdom, France, Austria, and Finland.
The CIGRE RNC Youth Section was appointed as the General Coordinator for
the organisation of all youth events within the framework of the 48th CIGRE
Session in 2020.
ANNUALLY ROSSETI FGC
UES COOPERATED
WITH ALMOST
80
ESTABLISHMENTS OF
HIGHER
EDUCATION AND
40
SPECIALISED
SECONDARY
EDUCATIONAL
ESTABLISHMENTS
In 2019, Rosseti FGC UES became an active participant in the VmesteYarche (Brighter Together)
festival. As part of the festival, the Company organised 62 events in 21 regions, involving more
than 4,000 students, schoolchildren, teachers of higher and secondary educational institutions
and residents of Russia’s regions.
Improving labour productivity
The key event for improving labour productivity in 2018–
2019 was the implementation of a project to build typical
organisational and functional structures in the branches’
production units — EMPS (RMPS, FMS, SS). This project made
it possible to reduce the number of management levels, raise
the span of management, even out staff workloads and increase
performance manageability.
LABOUR
PRODUCTIVITY
IN 2019 WENT UP
BY 4.7%
IN COMPARISON
WITH 2018.
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ACCORDING
TO THE RESULTS
OF 2019,
THE AVERAGE
SALARY
IS
4.5 %
HIGHER THAN
IN 2018
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Employee remuneration system
Rosseti FGC UES has established and maintains an employee remuneration system which takes
into account job categories, performance results of branches and structural units, the specifics
of the regional labour markets, and the individual contribution of each employee. The performance
of the Company’s top management is assessed against KPI which are approved by the Board of Directors.
Differentiation in wages is determined by the level of complexity and importance of works performed,
employee qualification and their impact on the overall performance results of the Company.
The remuneration system is based on time
invested and includes bonuses for employees.
The basic wage (wage rate) is consistent with
the staff register and a list of basic wages.
Workers’ wage rates (basic wages) are determined
with consideration of the minimum monthly wage
rate of a grade 1 worker, which is established by
the Industry Tariff Agreement.
According to the results of 2019, the average
salary was 83,363 RUB, which is 4.5% higher
than in 2018.
Average wages of Rosseti FGC UES
employees, RUB
+4.5 %
83.363
+6.3 %
79.610
+6.4 %
74.580
+4.9 %
69.835
66.573
2015
2016
2017
2018
2019
The Company’s Social Policy
GRI 401-2
The Company’s social package is an additional tool for motivating and ensures social protection for
employees. It includes voluntary medical insurance, accident insurance, a non-state pension, payment
of material assistance, and advance payment of wages.
For the purposes of developing a corporate culture and keeping the best labour traditions going,
as well as offering career guidance for the children of employees, the Company held the following
events:
On 1 June 2019, a Rosseti FGC UES Open Day took place at all Company
branches. More than 1,300 children of employees visited the Company’s
production facilities, participated in electrical safety lessons, contests, quizzes
and quests.
More than 500 children aged 4 to 14 took part in a children’s drawing contest
called ‘I Want to Work in Energy!’.
Voluntary health insurance (VHI)
and personnel health support
GRI 403-6 (a)
In accordance with its adopted social policy, Rosseti FGC UES has a corporate voluntary health
insurance system for employees, which guarantees the timely and high-quality provision of additional
medical and other services in addition to the compulsory medical insurance programme.
The VHI programme contains an expanded list of medical services, including
expensive high-tech medical procedures, a wide range of specialist doctors, and care
in the best prevention and treatment institutions in Russia.
IN 2019,
THE COMPANY
SPENT
358.4
MILLION RUB
ON THE VHI
PROGRAMME
GRI 403-6 (b)
The Company actively supports initiatives related to sports
and healthy lifestyle. Different training sessions in popular
sports such as indoor football, volleyball, basketball,
badminton, swimming, ping-pong and gym sessions were
organised for Company workers; the cost of subscriptions
to fitness clubs is compensated.
For more
information on
healthy lifestyle
initiatives, see
Appendix 1.
Accident insurance
Accident and health insurance guarantees the payment of extra
compensation to employees (or their relatives) in case of the death, urgent
hospitalisation and partial or complete disability of an insured person
resulting from an accident or illness.
IN 2019,
THE COMPANY SPENT
14.5
MILLION RUB
ON ACCIDENT INSURANCE
Award policy
Rosseti FGC UES runs a programme for encouraging
employees with state awards, awards from the Government
of the Russian Federation, the Ministry of Energy of Russia,
the All-Russian Industrial Association of Employers in Energy
Sector (‘ERA of Russia’ Association) and PJSC Rosseti,
and corporate awards.
Employees of branches of PJSC FGC UES receive awards
from federal subjects of the Russian Federation and
subsidiaries for their contribution to the development of
the regional electric grid complex.
For more
information
on corporate
awards, see
Appendix 1.
IN 2019
1,437
EMPLOYEES,
SUBSIDIARIES AND
CONTRACTORS
WERE AWARDED,
INCLUDING FOUR
EMPLOYEES WHO WON
STATE AWARDS
Improving housing conditions for employees
To attract qualified personnel to key facilities, facilities under construction, and remote power facilities,
Rosseti FGC UES has a programme in action to provide workers with accommodation through the service
housing fund; there is also a programme to compensate for the cost of rent.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
285
MILLION RUB
WERE
ALLOCATED
TO NON-STATE
PENSION
SCHEMES
IN 2019
Non-state pension schemes
The Programme of Non-State Pension Schemes for Company employees has been in operation
since 2004. Key principles:
a unified approach to providing non-state pensions;
a differentiated approach to the determining the amount of the non-state pension;
rewarding employees for their services to Rosseti FGC UES and the electric power
industry, and for their continuous and dedicated work.
Support for veterans
Rosseti FGC UES is one of the founders of the Council of Energy Veterans (non-profit partnership) and
pays annual membership fees which are used to provide material assistance to veterans of the energy
sector. The Company also provides assistance to the Council of Energy Veterans by organising festive
and cultural events.
In May 2019, the Company held ceremonial events for the Council of Energy Veterans and veterans
of PJSC FGC UES to commemorate the 74th anniversary of victory in the Great Patriotic War (WWII).
In December, the Company’s executive office and branches organised special events for power sector
veterans to celebrate ‘Energy Industry Day’.
In 2020, the Company is planning to hold a series of events to celebrate the 75th anniversary of victory
in the Great Patriotic War (WWII).
Occupational Health and Safety
Occupational health and safety management
GRI 103-2
In all aspects of its businesses, the Company is committed to prioritising the life and health of its
employees over operating performance results.
GRI 403-1 (a)
In adherence with the requirements of the Labour Code of the Russian Federation and to increase
the efficiency of the Occupational Health and Safety Management System, the Company
has approved the Regulations on the Occupational Health and Safety Management System45.
The Regulations define the OHS Policy and operation procedure for the Occupational Health
and Safety Management System in the Company.
The Occupational Health and Safety Management System at Rosseti FGC UES is aimed at
eliminating workplace injuries and occupational diseases, promoting safe conduct and development
of accident prevention skills among employees, and constantly improving working conditions.
The Occupational Health and Safety Management System has been developed to ensure continuous
improvement in workplace safety for Company employees, as well as for employees of contractors
and third-party entities.
Continuous cycle of the Occupational Health and Safety Management System
POLICY
ORGANISATION
PLANNING AND
IMPLEMENTATION
For more
information on
the commitments
of the Company
in the field of
Occupational
Health and
Safety, please see
Appendix 1.
IMPROVEMENT MEASURES
ASSESSMENT
GRI 403-1(b), 403-8
The Occupational Safety Management System covers all employees of Rosseti FGC UES
and the Company’s contractors, provided that their operation processes or workplaces
are controlled by the Company.
The Company is guided by a list of normative acts of the Russian Federation containing OHS provisions and
executive documents of PJSC FGC UES that are mandatory for efficient operation of the Occupational Health
and Safety Management System46.
The Company’s main objectives in the field of Occupational Health and Safety are:
creation of healthy and safe working conditions;
consistent and continuous reduction of occupational injuries and diseases;
creation and maintenance of a positive employer image on the labour market; strengthening
trust of shareholders, investors, creditors and other stakeholders;
development of safe behaviour and accident-prevention skills among Company employees;
ensuring a high level of corporate safety culture;
continuous improvement of working conditions.
45 Order of PJSC FGC UES No. 470 dated 14 December 2018.
46 Instruction of PJSC FGC UES No. 551r dated 12 November 2018.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Process of Hazard Identification,
Assessment of Relevant Risks, Competence
of Persons-In-Charge
GRI 403-2 (a)
The Company has developed the Methods for Hazard Identification and Injury Risk Assessment for
PJSC FGC UES facilities. The main objective is to create a systematic method to reducing the risks
of injuries and improving occupational safety in the workplace.
Occupational risks are assessed for separate employee groups with similar working conditions.
Hazard identification and assessment are conducted at MPS and EMPS facilities at least once
a year, and the results are recorded in the Hazard and Risk Assessment Map. On the basis of hazard
identification and risk assessment, suggestions are made to reduce the risk of injuries and to improve
staff training.
In order to reduce (prevent) exposure to hazardous production factors, hazards are identified and
injury risks are assessed; annual in-process monitoring of sanitary regulations is performed; and
working conditions are analysed. The results are used to develop and approve corrective action
plans.
GRI 403-2 (b)
If violations of safety requirements and hazardous production factors are detected, the employees
of Rosseti FGC UES have the opportunity to use any available means to report this to their
immediate supervisor and to the occupational health and safety unit (by phone, personally,
in a memo or by any other means). The Company adopted the management policy of Rosseti Group
of Companies in the field of occupational health and safety, and instructions for occupational health
and safety by profession and type of work are developed and approved. Authorised occupational
safety personnel selected by labour collectives in all branches of PJSC FGC UES control retaliatory
measures debarment by the Company’s management in case of employees’ refusal to work in
hazardous situations when their health may be harmed or when they reported a dangerous situation.
GRI 403-2 (D)
The investigation of occupational accidents at the Company is carried out in strict accordance
with the requirements of the Labour Code of the Russian Federation47 and Decree of the Ministry
of Labour of Russia No. 73 of 24 October 2002 “On Approval of Forms of Documents Required
for Investigation and Recording of Occupational Accidents, and Regulations on Features of
Occupational Accident Investigation in Certain Industries and Organisations.”
Employee Certification
In order to set forth the uniform requirements for staff relations, the Company has developed
the Regulations on Staff Relations at PJSC FGC UES, which stipulate the procedure for safety
certification of employees, knowledge check of normative documents, electric unit installation and
operations manuals, occupational health and safety, fire safety and other rules and instructions
issued by state supervisory authorities.
For more
information
on the main
response
measure
categories, see
Appendix 1.
For information
on the operation
of units in charge
of accident
prevention, on
the industrial
safety projects
implemented by
the Company
in 2019, and on
the normative
framework for
occupational
accident
investigation, see
Appendix 1.
Trainings and Other Educational Events
GRI 403-5
All Company employees are trained in occupational safety and health and are checked for
knowledge of occupational safety provisions in accordance with the Regulations on OHS Training
and Checks48, including at specialised training centres and Rosseti FGC UES Personnel Training
Centres. Professional competitions (contests), safety briefings, workshops, simulation exercises
on occupational health and safety, first aid drills and other activities are organised. All activities
are carried out in accordance with the developed programmes, regulations and other documents.
For employees of the Company all types of training are free.
GRI 403-5
The Company has introduced and conducted occupational health and safety training, which is held
in adherence with law requirements. The training takes into account the categories of workers and
is divided according to briefing types:
induction briefings;
initial workplace instruction;
repeated briefings;
unscheduled briefings;
targeted briefings.
All briefing types are conducted by experienced and qualified employees during working hours at
a frequency determined by certain regulations and guidelines.
Arrangement of Favourable Working Conditions
for Employees
Rosseti FGC UES pays great attention to working conditions for its employees. In order
to provide employees with the necessary sanitary utilities and to create favourable and healthy
working conditions to reduce the risk of health deterioration, work is underway to implement
the Comprehensive Programme to Improve Working Conditions at MPS Branches. Measures
to further improve sanitary utilities were included in action plans to improve conditions
and occupational safety and minimise occupational risks.
Based on the results of special OHS assessment, 42 out of 17,801 jobs in the Company are
considered hazardous ones (labour category 3.1. or higher), which is equal to 0.23 %.
For details
on personnel
protection
from exposure
to hazardous
production
factors, see
Appendix 1.
GRI 403-4
The Company has business subdivisions of occupational safety and reliability (hereinafter referred to
as BSOSR), comprising qualified and trained experts compliant with professional standard “Specialist
in the area of occupational safety.” Each BSOSR comprise both stationary and mobile occupational
safety offices. All production facilities are furnished with the occupational safety and health desks.
47 Federal Law No. 197-FZ dated 30 December 2001.
48 Approved by Regulation of the Ministry of Labour of Russia and the Ministry of Education of Russia No. 1/29 dated 13 January 2003.
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[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Each branch of MPS (EMPS) comprise the Occupational Health and Safety Committees.
Occupational Health and Safety Committees have been established at all levels of the Company
management structure (Executive Office, MPS, EMPS). The main objective of the committees is to
develop concerted administrative decisions to improve Occupational Safety Management System,
ensure occupational safety requirements in the Company, and prevent occupational injuries and
diseases. All decisions regarding the meetings of the Occupational Health and Safety Committees
are made by a majority vote of the members. The Company currently has 44 Committees; in 2019,
285 meetings of the Committees were held. The number of the Occupational Health and Safety
Committee employees is 1,069, including 428 staff representatives (40 %).
GRI 403-4
Meetings of the workforce of business operating units of the Company’s subsidiaries – EMPS have
appointed and authorised the operating personnel in the area of occupational safety, who are guided
by the requirements of the Labour Code of the Russian Federation, legislative documents and
other regulations on occupational safety, Regulations on «Organization of Control over the Labour
Conditions and Occupational Safety by Workforce», Company’s Occupational Safety executive
documents, decisions of workforce of the Company’s subsidiary structural unit.
Workplace injuries
and occupational diseases
GRI 403-9 (a)
In 2019, two accidents occurred in the Company’s subsidiaries, as a result of which one person died,
another person was severely injured (for the same period of 2018, three accidents occurred, including
two deaths and one severe injury with disability for more than six months). In 2019, the main type of
injury was an electric arc lesion. The number of man-hours of payroll and part-time employees at PJSC
FGC UES is 38,872,769.4 as of 2019.
GRI 103-3
According to the Ministry of Energy of Russia for 2018, the overall injury frequency rate equals Fr =
0.332. According to the calculated data, the Company’s overall injury rate is more than 3 times lower
than the industry average value and equals 0.0949 (in 2018, it was 0.136).
Overall injury frequency rate (Fr)
Mortality rate
Severe injury rate excluding lethal accidents
Workplace injury rate
2018
0.136
0.0512
per 1 million hours
worked
0.0256
per 1 million hours
worked
0.0768
per 1 million hours
worked
2019
0.09
0.0257
per 1 million hours
worked
0.0257
per 1 million hours
worked
0.0514
per 1 million hours
worked
GRI 403-9 (c)
The main causes and prerequisites for accidents that occurred in 2019 were:
process violations by personnel;
inadequate monitoring by persons in charge of safe operations;
inadequate work organisation;
violations of labour routine and discipline by workers.
Occupations associated with a high injury risk are SS maintenance electrician and switchgear
equipment repair electrician. The main activities associated with a high injury risk are operations
in electrical installations. The accidents which took place in 2019 are directly related to activities
associated with a high risk of personnel injury in the Company.
GRI 403-9 (D)
Injury prevention, occupational safety increase, elimination of gross and frequent violations
of occupational safety requirements were carried out in accordance with the Comprehensive
Programme for Reducing Injury Risks of PJSC FGC UES Personnel, the Comprehensive
Programme for Reducing Third Party Injury Risks at PJSC FGC UES and the Programme of
Control Measures on Compliance with Occupational Safety Requirements at Facilities.
For the list of
production
safety projects
implemented by
the Company
in 2019, see
Appendix 1.
GRI 403-9 (b)
No accidents involving the Company’s contractors whose business processes or jobs
are controlled by the Company took place in 2019.
GRI 403-10
No occupational diseases took place in the Company.
For information
on approaches
to managing
exposures
and impacts
in the field of
occupational
and industrial
safety through
cooperation
with business
partners and
consumers, see
Appendix 1.
Overall injury frequency rate (Fr) by the branches in 201950
Branch name
MPS Centre
MPS West Siberia
Overall injury frequency rate
(Fr) (N1/Np)x1,000
0.26 (1 lethal accident)
0.47 (1 severe accident)
49 The overall injury frequency rate is the number of injured employees relative to the average employee headcount in the reporting period per 1,000 employees:
Fr=(N1/Np) x 1000, where N1 is the number of injured employees with disability for more than three business days and deaths; Np is the headcount in a certain period
of time (average employee headcount).
50 Based on 38,872,769.4 hours worked.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Environmental Protection
The Company considers its environmental activities to be an integrally important part
of its operations. Rosseti FGC UES aims to minimise adverse impact on the environment within
the course of electricity transmission and distribution.
Environmental Policy
The Environmental Policy of the Company regulates the activities of the Company in the field of
environmental safety management; it was developed in accordance with the principles established
by the state policy on environmental development of the Russian Federation and Energy Strategy of
Russia until 2030 and approved by the PJSC FGC UES Board of Directors on 30 September 2014.
The main targets for environmental protection and sustainable use of natural resources are as follows:
compliance with the environmental protection law and the reduction
of adverse impact on the environment;
effective functioning of the Environmental Management System (EMS);
minimisation of adverse impact on the environment by application of
innovative solutions and the introduction of the best available technologies.
Within the Programme of the Environmental Policy Implementation for 2016–201951, the Company
implements the following technical and organisational initiatives:
Technical initiatives
Organisational initiatives
Replacement of equipment containing hazardous and
Development of required regulatory and technical documentation and
toxic substances;
Renovation and repair of oil receiver and oil collector
systems and devices;
(Re)construction of water supply and sewage systems;
Organisation of temporary waste storage areas.
improvement of documentary support for environmental protection
activities;
Effective functioning of the EMS in compliance with the requirements of
ISO 14001:2015;
Improving the production and industrial environmental control and
the internal environmental audit systems of the EMS;
Environmental training for personnel.
The main directions
of the Environmental
Policy implementation
as stipulated in
the Environmental
Policy Programme
are presented in
Appendix 1.
In 2019, the following measures were developed and approved for 2020–2024:
Environmental Policy Implementation Programme of PJSC FGC UES;
Quantitative environmental targets.
GRI 102-11
Following the precaution principles, the Company strives to avoid the possible environmental damage,
even if there is no measured scientific evidence proving such adverse environmental impact and
damage. At the stage of development of project documentation for the power grid facilities construction/
renovation, the impact of their operations on the environment is assessed, and design choices are
made to prevent or minimise any possible negative impact.
51 The Environmental Policy Implementation Programme of PJSC FGC UES for 2016–2019 (approved in 2015).
Environmental management system
andenvironmental audit
Rosseti FGC UES has introduced, certified and successfully operates a unified
environmental management system. In 2019, following a compliance audit,
the Company’s Environmental Management System was found to be fully compliant
with ISO 14001:2015. In the reporting year, 237 employees were trained in
environmental safety programmes.
In order to assess compliance with the requirements of environmental legislation of
the Russian Federation and the EMS, 459 production facilities, MPS and EMPS were
inspected in the framework of internal environmental audits (IEA) in 2019. During
these audits, 628 violations were issued. The majority of violations found during IEA
were rectified by the end of the reporting period.
Detected violations
Violations addressed
as of 31 December 2019
52 %
21 %
25 %
74 %
2 %
12 %
13 %
- organisational
- air protection
- water discharge and consumption
- subsoil use
- waste treatment
1 %
- not addressed
- not due
- addressed
The number of non-compliances identified during the 2019 IEA per one inspected facility reduced
by 2 % over the previous year which proves the efficiency of the Rosseti FGC UES activities for
minimisation of the adverse environmental impact.
For more
information on
the results of IEA
and inspections,
see Appendix 1.
Environmental protection
outcomes
Due to the implementation of environmental protection activities, the Company managed to reduce
negative environmental impact in 2019 when compared to 2018:
reduction in water consumption by 7 %;
reduction in waste water discharges by 22 %;
reduction in waste generation by 2 %.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Environmental impact assessment and rationing of emissions and waste generation in 2019
Environmental Protection Costs
Environmental Impact Assessment
The Company carried out 1,179
laboratory analyses of air quality,
underground water and waste water,
and the level of physical impact.
Development
of Projects for Sanitary
Protection Zones
of Water Supply Facilities
The Company has prepared
41 drafts of sanitary protection
zones, 10 drafts of sanitary
protection zones of drinking
water sources.
Development
of Waste Generation
and Disposal Standards
Stationary Emission Sources
Inventory and Emission
Standards Development
126 drafts
of standards were
prepared.
Activities were carried out
at 106 production facilities.
To comply with the Environmental Policy and to establish documented environmental objectives
and tasks, the Company approved Quantitative Environmental Targets for 2017–2019.
In 2019, the Company managed to achieve all set Quantitative Environmental Targets, assessed
inthe reporting year.
Quantitative
environmental
target
Reduction in operating equipment
containing trichlorodiphenyl by 4% vs.
previous year
A 2% reduction of water consumption
volume by total number of industrial
facilities compared to the results
of the previous year
A 2% reduction in the number of
environmental law violations were
identified during the internal environmental
audit in relation to the annual number of
audited facilities of the previous year
Number
of facilities
Absolute
value
Unit
value
2018
2019
2018
2019
2018
2019
Achievement
of the -quantitative
environmental
target, %
–
–
21,295
12,516
–
–
–41
969
974
799.54
744.44
0.82
0.76
394
459
550
628
1.39
1.37
–7
–2
GRI 102-12
Participation in the Earth Hour international initiative
On 30 March 2019, the Company became a participant in the Earth Hour international initiative
once again. The objective of the annual initiative is to raise public awareness about environmental
problems, climate change, the sustainable use of natural resources, deforestation, and the declining
numbers of local animal species. During the initiative, lights that did not affect operation and safety
in administrative buildings were turned off, as well as emergency lighting at substations and other facilities.
A total of 758 of the Company’s facilities participated in the Earth Hour; the total volume of electricity saved
amountedto 8,822.42 kWh.
PJSC FGC UES
environmental protection awards
Following the results of the XV All-Russian Competition Leader of Environmental Protection in Russia
2019, PJSC FGC UES won awards in Best Environmental and Energy Saving Policy.
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Annual Report 2019 PJSC FGC UES
The total cost of environmental protection in 2019 amounted to RUB 395.3 million, which
is 42% more than a year earlier. The increase in capital costs is associated with the
reconstruction of water supply, water discharge and oil facilities at Severnaya SS of Prioksky
EMPS MPS Centre. The increase in current costs is associated with a significant increase
in the number of installed bird protection devices, as well as the number of repair and
maintenance works of oil facilities.
For more
information on
payments made
for negative
environmental
impact, see
Appendix 1.
Environmental protection costs in 2019,
RUB mln
Operating expenses on environmental
protection in 2015–2019, RUB mln
358.7
2.1
34.5
174.16
0.40
12.17
48.40
91.59
0.40
8.50
46.10
106.10
123.58
13.68
6.02
12.75
54.67
32.13
0.38
11.06
68.91
65.29
69.65
1.55
4.23
11.33
37.20
44.51
2015
2016
2017
2018
2019
- Capital expenditures
- Operating expenses
- Payments for negative
environmental impact
- Other costs
- Introduction of the EMS
- Protection of air
- Protection of water facilities
- Protection of land resources
(including management of production
and consumption waste)
The Company’s activities in the field of air, water, soil
and land protection
Air pollutant emissions
In the course of production activities
at Rosseti FGC UES branches, air pollution
occurs as a result of pollutants from
stationary sources of emissions. The total
volume of emissions is set by calculating
the maximum permissible emissions (MPE)
produced during the course of project
development and are not analytically
measured since the operation of this
equipment is not constant and the amount
of emissions is very small.
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PERFORMANCE HIGHLIGHTS 2019
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Usage of water resources
GRI 303-1
WATER WITHDRAWAL
Surface
sources
Underground
sources
Centralised
water supply
Other
sources
ROSSETI FGC UES
WATER USE
Household
needs
Technological
needs
Drinking
needs
Fire
needs
Centralised
Sewage Sources
SEWAGE DISPOSAL
Surface
water facilities
Discharge onto terrain*
*Since 2016, unorganised discharge onto the terrain has been excluded from the types of negative environmental impact in accordance with changes
in the environmental legislation of the Russian Federation; thus, the accounting for terrain discharge at the Company has been discontinued.
In 2019, water consumption amounted to 744.4 thousand m3 of water, which is 7 % lower than in 2018.
The annual decrease in water consumption is associated with a reduction in losses due to the timely
maintenance and repair of water supply systems in the Company’s subsidiaries, as well as actions
taken to save water resources.
Water use by water source in 2015–2019, ths. m3
17.7
436.4
13.2
309.7
7.2
263.2
6.7
237.9
5.7
222.3
529.2
516.7
520.1
481.6
429.8
74.3
74.7
107.8
73.3
86.6
2015
2016
2017
2018
2019
- Other sources
- Centralised water supply systems
- Subsurface sources
- Surface sources
GRI 305-7
Dynamics of changes in volumes
of gross air emissions in 2015–2019,
tonnes
221.1
226.7
182.1
171.1
161.1
2015
2016
2017
2018
2019
A minor reduction in the volume
of atmospheric air pollutant
emissions in 2019 was the result
of taking inventory of stationary
sources of pollutant emissions
and the receipt of new permits
for emissions of the Company’s
facilities.
Greenhouse gas emissions
In the process of transmission and distribution
of electricity due to losses in electrical grids and
the consumption of electricity for the needs of
substations, indirect emissions of greenhouse
gases are formed.
Energy Saving and Energy Efficiency
Programme in the Unified National Electric
Grid (UNEG) for 2015–2019, approved by
the Management Board of PJSC FGC UES,
includes three key areas that can reduce
indirect greenhouse gas emissions:
Optimisation of electric grid operation
and management modes;
Reduction of electric power
consumption for auxiliary supply of the
substations;
The construction, reconstruction
and development of electric grids, and
the commissioning of energy-saving
equipment (of which loss reduction has
had a concurrent effect).
The Company does not keep records of indirect
greenhouse gas emissions.
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[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
GRI 306-1
Significant decrease in water disposal in 2016–2019 is associated with the termination of unorganised
terrain discharge accounting since 2016.
Water discharge by water sources in 2015–2019, ths. m3
109.4
472.8
497.1
75.8
415.2
53.8
379
54.2
319.7
48.4
241.5
- Into surface
water facilities
- On the terrain
- Into centralised
water supply systems
Dynamics of changes in volumes of waste
by means of its management
in 2015–2019, ths. tonnes
Total waste in 2019 by hazard class
3 %
50 %
7.2
6.8
6.5
6.3
6.7
4.3
6.3
3.3
7.1
2.3
2015
2016
2017
2018
2019
47 %
- Entrusted to specialised organisations for burial at disposal sites
- Entrusted to specialised organisations for secondary treatment,
recycling and decontamination
- Hazard class I
- Hazard class II
- Hazard class III
- Hazard class IV
- Hazard class V
2015
2016
2017
2018
2019
Conservation of biodiversity
In order to minimise the negative impact on water bodies in 2019, the following activities
were carried out:
GRI 304-2
reconstruction of water supply and sewage systems at 1 production
facility;
repairs and maintenance of water supply and sewage systems were
performed at 391 facilities.
Waste generation and disposal
GRI 306-2
During the process of production activities in the Company’s branches, more than 80 kinds of hazard
class I–V production and consumption wastes are formed.
The wastes are transferred to special licensed organisations for processing, secondary processing, use
and disposal on special sites. Rosseti FGC UES strives to operate in such a way as to ensure a stable
reduction in waste generation and to dispose waste in the safest and most sustainable ways.
The annual decrease in the volume of generated waste is primarily a result of a reduction in the scope
of reconstruction and technical refurbishment work carried out at electric grid facilities. The decrease
in the share and volume of waste transferred to specialised organisations for processing, secondary
processing and use is associated with the expansion of the list of municipal solid waste, mandatory
transferred to regional operators.
In 2019, for more rational waste management, the following measures were implemented:
repairs and maintenance of oil receiver and oil collector systems and devices were performed
at 260 facilities;
reconstruction of systems and devices of oil receivers and oil collectors at 1 facility;
sites for temporary storage of waste were arranged at 76 facilities;
3,268 capacitors containing trichlorodiphenyl, with a total weight of 109.1 tonnes, were
transferred to specialised organisations for decontamination/disposal.
The activities of the Company do not have a significant impact on the biodiversity of protected
natural zones or other areas that are significant from the point of view of biodiversity outside
of protected natural zones. In the course of the Company’s operation, no cases of animal
habitat relocation and/or damage were observed.
Electric grid companies impact on biodiversity has not been studied enough. The Company
implements biodiversity monitoring projects in its regions of presence.
Key measures
taken by the Company to reduce
the impact of electric grid facilities
on biodiversity
restriction of industrial and construction
activities in areas of special conservation interest;
taking management and investment decisions
with account of environmental impact
assessment, and development of measures
aimed at mitigating and eliminating negative
environmental impact;
use of innovative materials and technologies
that ensure compliance with environmental
requirements and minimise negative
environmental impact;
implementation of compensatory measures
aimed at restoring the population and habitats.
Key 2019
Biodiversity Protection
Results
80,602 bird
protection systems
were installed on OHL;
compensatory
plantings of 31,107
Scots pine seedlings
were carried out;
81,444 sturgeon
juveniles were released
into water bodies;
Key technical
solutions used by
Rosseti FGC UES
to protect biodiversity
high towers with the
conductors over top of the
valuable trees’ crown;
implementation of
activities to provide animal
protection on electric grids
(installing special devices
in OHL bars to prevent
birds from nesting on the
bar elements, usage of
bird deterrent and bird
protection devices to
prevent animals from
entering the territory of
substations and getting
into units and
devices, etc).
The species in
the Red List of the
International Union
for Conservation
of Nature and the
Red Book of the
Russian Federation,
whose habitats
are located on the
territory affected
by the activities
of Rosseti FGC
UES, as well as the
Register of Specially
Protected Natural
Territories where the
Company’s assets are
located, are given in
Appendices 8 and 9.
Biodiversity
monitoring process
and its results
are shown in
Appendix 1.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
IN 2019
11
THOUSAND
BIRD
PROTECTION
DEVICES
WERE
INSTALLED
IN THE AMUR
REGION AND
KHABAROVSK
REGION
GRI 304-4
The total number of species in the Red List of the International Union for the Conservation of
Nature and the Red Book of the Russian Federation whose habitats are located on the territory
affected by the activities of Rosseti FGC UES, amount to 290 species, including 135 animal
species, 141 plants, and 14 mushrooms.
Far Eastern Stork Protection Project
The oriental white stork (Ciconia boyciana Swinhoe) lives in the Far Eastern region of Russia
that belongs to the Company’s branch operation area, namely MPS East. It is one of therarest
species of animals in the world and is classified as an endangered species of East Asia,
according to the International Union for Conservation of Nature and Natural Resources.
Since 2007, activities for preserving the habitat of the oriental white stork in the Amur Region and
Khabarovsk Region have been conducted by the Company for over 10 years. On the breeding
ground areas of birds, bird deterrent devices were installed on OHL bars, artificial nesting areas
for breeding were established, and other approaches were carried out to adjust the stork’s
habitat. In the reporting year, efforts were continued to preserve the habitat of oriental white
storks; protection structures were erected to protect birds from death on HV lines at Amur EMPS
in thecatchment basin of the Amur and Zea rivers in the Amur Region.
Soil reclamation
The Company regularly and timely conducts activities to preserve and restore flora and fauna in the
territories of electric grid facilities construction and reconstruction. When construction and installation
works are completed, soil reclamation works, anti-erosion measures, as well as planting greenery
and landscaping are carried out.
The negative impact on the vegetation, such as cutting down glades on forest-covered lands, occurs
mainly during the construction of power transmission lines. The vegetation and relief restoration is
carried out in compliance with disturbed lands reclamation projects and forest management projects
that are part of the general design documentation.
In 2019, the Company implemented natural resources restoration activities on the territory
of 4,548 hectares.
Energy saving and energy efficiency improvement
GRI 302-4
Operational benefit of measures
to reduce energy/fuel consumption for 2019
Economic benefit of measures
to reduce energy/fuel consumption for 2019
210,462 GJ
75.38
RUB MLN
EXCL. VAT
In 2019, the Company completed the implementation of the Energy Saving and Energy Efficiency
Improvement Programme of PJSC FGC UES for 2015–201952, with the goals fully achieved.
The technological effect of PJSC FGC UES Energy Saving and Energy Efficiency Programme implementation
for 2015-2019 amounted to 34,488 TRF*, the economic effect amounted to RUB 350 million.
In 2019, the Energy Saving and Energy Efficiency Improvement Programme of PJSC FGC UES for 2020–2024
was developed and approved53. It sets the following goals:
To ensure savings and rational use of fuel and energy resources and reduce
consumption of electricity for corporate needs during electricity transmission via
UNEG grids;
To maintain energy management system and conduct supervisory and
recertification audits of the Company’s activities as per requirements of
ISO 50001: 2011 international standard on Energy Management Systems.
Requirements and guidelines;
To improve the energy efficiency of the Company’s electric grid facilities and
equipment;
To conduct activities on Energy Efficient Substation National Project.
For more details
on the Energy
Saving and
Energy Efficiency
Programme of
PJSC FGC UES for
2020–2024, please
see www.fsk-ees.ru,
section Innovations/
Energy Efficiency.
Energy Management System
Rosseti FGC UES operates its energy management system in compliance
with ISO 50001:2011 Energy Management Systems. Requirements and
Guidelines. In December 2017, an independent audit was conducted, and
the energy management system of the Company and all of its branches
was certified for compliance with ISO 50001:2011.
In October 2019, the second annual supervisory (external) audit of
the Company’s Energy Management System for compliance with ISO
50001:2011 requirements was carried out in the Executive Office of PJSC
FGC UES and in the branches of MPS South and MPS Ural54. Following
the results of the supervisory audit, compliance with the international
standard requirements was confirmed without objections.
52 Excerpt from Meeting Minutes No. 1326/2 of the Management Board of 4 August 2015. The Energy Saving and Energy Efficiency Programme
was updated in accordance with Order No. 525-e of the FTS of Russia dated 26 March 2015 on Amendments of Order No. 508-e of the FTS
of Russia dated 26 March 2014 on Requirements for the Energy Saving and Energy Efficiency Programme of JSC FGC UES for 2015–2017,
and Order No. 398 of the Ministry of Energy of Russia dated 30 June 2014 on Approval of the Requirements to the Form of Energy Saving and
Energy Efficiency Programmes of Entities with a Public Share and Municipal Units, Organisations Engaged in Regulated Activities, and Progress
Reporting.
* 1 TRF = 29.3 GJ
53 Excerpt from Meeting Minutes No. 1653/8 of the PJSC FGC UES Management Board of 12 August 2019.
54 Conforms to the National Standard of the Russian Federation GOST R ISO 50001-2012.
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For details
on measures
taken to reduce
the consumption
of electricity,
thermal energy,
resources, and
POL, please see
Appendix 1.
For more
information on
the amount of
energy resources
consumed by
the Company in
2019, please see
Appendix 1.
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Implementation of the Energy Saving and Energy
Efficiency Improvement Programme 2014–2019
in the reporting year
During the reporting year, the Company implemented energy efficient measures developed
on the basis of a mandatory energy audit conducted in 201755. In addition, pilot projects
in the field of energy saving and energy efficiency improvement are being implemented
in Rosseti FGC UES, including Energy Efficient Substation National Project. This project will
allow to obtain a technological and economic effect, reduce the consumption of electricity for
the substations’ needs.
Contribution to the regions of presence
The Company supports the regions where it operates by means of both
the investment and adaptation of certain business processes, thus making
additional contribution to the development of local communities.
The effect of energy consumption reduction measures in 2019
Development of the electric grid infrastructure
Technological effect
In physical
terms
Tonnes of fuel oil
equivalent
Economic
effect,
RUB mln
(excl. VAT)
54,418.15 thousand kWh
6,693.43
66.15
849.60 thousand kWh
2.24 thousand Gcal
424.31
7.03
58.57 thousand litres
65.44
2.2
–
7,183.18
75.38
Measures to reduce
electricity losses
Measures to reduce electric
and thermal energy consumption
in buildings, structures
and installations owned by
PJSC FGC UES
Motor fuel reduction
measures
Total
Cooperation with the Russian
Engineering Union
In 2019, at the initiative of the Chairman of the Management Board of PJSC FGC UES A. Murov
and the Russian Engineering Union, the Commission on the Development and Implementation of
Technologies in the Field of Energy Efficiency and Energy Saving was formed.
In May and November, the Commission held several meetings which were attended by the
representatives of federal executive bodies, members of the Russian Engineering Union, as well
as the representatives of universities, business community, the scientific and expert communities.
Within the meetings of the Commission, such issues were discussed as promotion of energy
efficient equipment production, financing tools for energy efficiency projects, training for specialists
involved in the field of energy efficiency and energy saving at industrial enterprises.
Improving the reliability of electricity supply and
connecting new areas to the UNEG gives a
significant boost to the economic development of
the regions. The Company implements projects to
build and upgrade the electric grid infrastructure,
aiming at the socio-economic development of 79
regions where the Company is present and the
reliable electricity supply to its consumers.
The Company’s major projects are carried out
to comply with Order of the President of the
Russian Federation No. 204 of 7 May 2018, On
National Goals and Strategic Objectives of the
Development of the Russian Federation up to
2024. Top priority areas are the electrification of
West-East and North-South transport corridors,
including Baikal-Amur and Trans-Siberian
railways, development of centralised power
systems, and stable power supply.
Pursuant to the Comprehensive Plan of
Infrastructure Upgrade and Extension up to 2024,
approved by Decree of the Government of the
Russian Federation No. 2101-r of 30 September
2018, Rosseti FGC UES takes 33 measures
to ensure external power supply of railways
and pipeline systems, process technological
connection of large industrial consumers, and
meet the current and perspective demand for
electric power and capacity in the Company’s
regions of presence.
Investment in the grid infrastructure development
is fundamental for reliable power supply, and it is
also a key factor of economic growth.
IN 2019,
THE VOLUME OF
INVESTMENTS TOTALLED
149.8
BILLION RUB
For more
information on
construction
of new and
reconstruction
of existing trunk
lines, please see
section Production
Capital.
55 The energy performance certificate of PJSC FGC UES was registered with the Ministry of Energy of Russia under No. 21435/E-010/2017.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Regional development
Import substitution
Yakutia
Murmansk
The first autotransformer was delivered to the Murmansk region
for the Murmanskaya substation, a large power supply centre
of the North-West, which will create additional conditions for
the region’s economic development.
In 2019, during the implementation of
the Comprehensive Plan for Modernisation
andExpansion of Trunkline Infrastructure until 2024,
industrialised and residential areas of the Republic
of Sakha (Yakutia) were connected to the UNEG.
Buryatia
During the repair programme
implementation, over 6,000 support rod
insulators were installed at substations
of the Siberian Federal District, as
well as in the Republic of Buryatia and
Trans-Baikal Territory. This improved
the reliability of key power supply
centres in 10 regions with a population
of more than 19 million people.
The Company makes its contribution to the support of domestic producers by implementing
activities within the scope of the 2017–2020 Corporate Plan of Import Substitution of PJSC
FGC UES. In the course of the Corporate Plan of Import Substitution, the Company reached
a high share of 89% of procurement from domestic suppliers as of the end of 2019.
Implementation of the plan makes an impressive contribution to the evolution of domestic
production and formation of competitive internal markets of electric and technical equipment.
Interaction with innovative territorial clusters
To reach the full capacity of the regions’ innovative potential, the Company develops
the interaction with innovative territorial clusters.
In 2019, the Company continued its scientific and technological works aimed at the
preparation of an electronic catalogue of general project solutions for design and configuration
of SS safety and control equipment, including solutions for digital SS, carried out together
with the Cheboksary Electrotechnical Cluster.
The Company cooperates with innovative territorial clusters (such as Kamsk
Innovative Territorial Production Cluster, electrotechnical clusters in Saint Petersburg,
Yaroslavl, Kuzbass, and Cheboksary, Zelenograd Cluster, and Power Electronics and
Electric Engineering Cluster) for the purpose of setting industry standards and regulatory
requirements, participating in RNC CIGRE, and in terms of quality assurance and
product supply.
Irkutsk
Tambov
Payments to budget and extrabudgetary funds
The construction of the first
in-hosue catering centres
in the Irkutsk Region was
completed. The Ust-Kut and
Sukhoy Log substations
commissioning was the final
stage of the Peleduisky power
ring establishment. As a result,
the lack of capacity will be
eliminated and infrastructure
conditions will be created for
the construction of a massive
housing stock, along with
the development of major
industrial projects and
productions.
Novy
Urengoy
Power was supplied to the Vidny
complex in Tambov, which
included four multi-storey
buildings with a total living area
of 48,000 m2. The power supply
to substation Tambovskaya
No. 4 (300,000 people) as well
as to large industrial consumers
in the Tambov Region depends
on uninterrupted operation.
The construction of three power facilities
in the Yamalo-Nenets Autonomous Okrug
was completed, which raised the reliability
of power supply to household and social
facilities in the Purovsky District of Novy
Urengoy (170,000 people).
Being a large tax payer, the Company has a significant influence on forming the revenue side
of budgets of the territories where it operates.
The detailed
lay-out by tax
type is given in
Appendix 1.
GRI 419-1
Tax deductions to federal, regional and local budgets,
RUB thousand
Taxes
(contribution to extrabudgetary funds)
Amount of taxes
transferred
Penalties
and fines
Federal taxes and levies
Regional taxes
Local taxes and levies
Extrabudgetary funds
Total
29,965,494
13,424,336
56,943
6,030,312
27,761
74,962
6
25
49,477,085
102,754
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Sponsorship and Charity
Sponsorship
Key projects in 2019:
IN 2019,
SPONSORSHIP
AMOUNTED TO
184
MILLION RUB
cooperation with the State Hermitage Museum. PJSC FGC UES sponsored the exhibit called
“The Great Russian Collectors. The Morozov Brothers”;
cooperation with the Peterhof State Museum Reserve. With support of Rosseti FGC UES,
the Autumn Fountain Show was organised on 20–21 September 2019 and attended by over
30,000 people;
cooperation with the Russian Chess Federation. A number of joint measures have been
implemented to develop and popularise chess in Russia;
cooperation with PFC CSKA. With support of the Company, certain competitions and events
were arranged for the club fans;
cooperation with the Russian Rugby Federation. A number of competitions were held
with help of Rosseti FGC UES;
cooperation with the Roscongress Foundation. The Company became a partner of
the largest business events with top public officials: St. Petersburg International Economic
Forum, Eastern Economic Forum, Russian Energy Week;
cooperation with the Moscow Academic Music Theatre named after K. Stanislavsky
and Nemirovich-Danchenko;
cooperation with the Russian Engineering Union. The Company supported
the VIII International Youth Forum “Engineers of the Future.”
Charity
Key areas of charity work:
IN 2019,
AS CHARITY FOR
INDIVIDUALS
AND LEGAL ENTITIES
THE COMPANY
ALLOCATED OVER
328.8
MILLION RUB
support of educational, scientific and cultural activities and public awareness
campaigns;
assistance with fitness and sports activities (with the exception of professional
sports);
social support and protection of citizens, including financial support of low-income
people, social rehabilitation of unemployed, disabled and other persons who are unable
to exercise their rights and lawful interests on their own due to physical or intellectual
impairments or any other circumstances;
protection and proper maintenance of buildings, facilities and territories of historic,
religious, cultural or environmental importance;
social rehabilitation of orphans, children without parental care, neglected children
and children in difficult life circumstances;
support of activities in the field of health care, healthy lifestyle promotion,
improvement of moral and psychological condition of citizens;
assistance for those who have suffered from natural, environmental or industrial
disasters or other catastrophes, as well as social, ethnic or religious conflicts, victims
of repression, refugees and forced migrants;
assistance in the environment and fauna protection;
assistance for individuals requiring treatment for a severe disease or a surgery
to preserve their lives and health, including for prevention of disability or longstanding
rehabilitation.
Stakeholder Engagement
Approaches to Engagement
Rosseti FGC UES understands that reliable, continuous and quality power supply to
consumers in the Russian Federation is only possible when stakeholders’ interests are
respected, a constructive dialogue is maintained, and this practice is integrated into all
business processes of the Company. The Company strives to provide a high level of
openness and transparency of activities through an active dialogue with its stakeholders.
Interaction with stakeholders takes place in all regions of Rosseti FGC UES’s presence, while
interaction with certain stakeholder groups is the responsibility of individual structural divisions
of the Company.
For more
information
on documents
governing the
interaction
between the
Company
and its
stakeholders,
please see
Appendix 1.
GRI 102-43
GRI 102-43
Principles, underlying the stakeholder engagement:
respect and consideration of the interests of all stakeholders, timely response to their requests;
open and productive cooperation;
ongoing and comprehensive information about all material topics of Rosseti FGC UES’s activities, including through
annual reports;
the desire to achieve certain benefits for all participants;
fulfilment of our obligations.
GRI 102-42
When identifying and selecting stakeholders to engage with, the Company relies upon assessment of their influence
on its current operations and strategic development, as well as on the established stakeholder engagement
practice and stakeholder dependence on the Company’s performance. As part of the Annual Integrated Report
2019 preparation, the degree of mutual influence of stakeholders and the Company was assessed, and material
stakeholders were identified. As a result, the following adjustments took place:
assessment grades assigned to the degree of influence of stakeholders on the Company and the Company’s
influence on certain stakeholders were updated;
due to a lower degree of stakeholder influence on the Company, the stakeholder named “Public social
and charitable organisations” was not included in the list of material stakeholders as per the results of the
assessment.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Map of mutual influence of material stakeholders
and the Company
Stakeholder engagement types and channels
Stakeholder
group
Key interests of
stakeholders
Main channels
of engagement
Material
events
1- Government authorities
2 - Shareholders
and investors
3 - Top management
of the Company
4 - Company personnel
5 - Customers
and consumers
6 - Ecological organisations
7 - Scientific community
8 - Mass media
9 - Population
of the regions of presence,
local communities
10 - Regional
and local authorities
11 - Business partners,
suppliers and contractors
12 - Public organisations
13 - Educational institutions
14 - Subsidiaries
15 - Professional
associations and industry
organisations
4,00
3,50
3,00
2,50
2,00
1,50
1,00
0,50
0,00
y
n
a
p
m
o
C
e
h
t
n
o
s
r
e
d
o
h
e
k
a
t
s
f
o
e
c
n
e
u
l
f
n
l
I
5
3
4
14
1
9
15
2
10
11
7
6
13
8
12
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
Influence of the Company on stakeholders
GRI 102-40
Company stakeholders
Stakeholders
Shareholders and investors
Business partners, suppliers and contractors
Professional associations and industry organisations
Customers and consumers
Government authorities
Regional and local authorities
Population of the regions of presence, local communities
Scientific community
Educational institutions
Ecological organisations
Mass media
Subsidiaries
Top management of the Company
Company personnel
Stakeholder group
Shareholders
and investors
Partners,
incl. non-profit ones
Consumers
The State
Society
Internal
stakeholders
Economic efficiency
Business
sustainability
Transparency of
business processes
Shareholders
and investors
Business
partners, suppliers
and contractors
Professional
associations and
industry
organisations
Shareholders and investors
Meetings of shareholders and
other corporate events
Information disclosure
IR-presentations and IR-events
Obtaining credit ratings from
leading international and national
rating agencies
Commitments to comply with
social and environmental
requirements under agreements
on funding the Company’s
projects
Reporting
For more information on the investor
and shareholder events in the reporting
period see section Share Capital,
Securities Trading.
Partners, including non-for-profit organisations and associations
Growth in
shareholder value
Fair competition and
responsible market
conduct in order to
create equal
conditions for all
business partners
Transparency of
activities, including
transparency of
procurements
The spotless
reputation of Rosseti
FGC UES as
a business partner
Electric power
development and
modernisation
Transparency
of activities
Partners, including non-for-profit
organisations and associations
Participation in forums,
exhibitions, conferences,
dialogues
Joint projects
Promotion of export of hi-tech
products
Anti-corruption
Contractual relations and
cooperation agreements
Open and competitive
procurement procedures
Support of domestic suppliers
Participation in forums,
exhibitions, conferences,
dialogues
Cooperation with specific Russian
and international organisations
Participation in professional and
business associations
Scientific and technological
exchange and technology transfer
Interaction with industry and
scientific and technical mass
media
For more information on interaction
with suppliers and contractors in
the reporting period, see section
Procurement.
At the discretion of the Chairman of
the PJSC FGC UES Management
Board — Andrey Murov, in 2019,
the Commission on developing and
implementing technology in the field of
energy efficiency and saving was
established under the Russian
Engineering Union, and first meetings
were arranged.
At the discretion of the Chairman of
RNC CIGRE — Andrey Murov, in
October 2019, in Saint Petersburg,
a joint meeting of main CIGRE
management bodies — Management
Committee and Technical Council, took
place. Within the framework of Russia
Day, reports on key features of
the energy system operation
were presented.
For a successful implementation of the sustainable development and corporate social responsibility policy,
the Company determined interests and expectations of significant stakeholder groups, as well as types
of engagement ranging from a dialogue to possible collaborative campaigns and programmes.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Stakeholder engagement types and channels (continued)
Stakeholder engagement types and channels (continued)
Stakeholder
group
Key interests of
stakeholders
Main channels
of engagement
Consumers
Material
events
Stakeholder
group
Key interests of
stakeholders
Main channels
of engagement
Society
Material
events
Consumers
Reliable power supply
Improved quality of
services
High standards of
service
In the reporting period, two agreements
on developing electric grid infrastructure were
concluded with major domestic industrial
consumers — JSC Russian Copper Company
and PJSC SIBUR Holding.
Meetings of the Consumer
Council
Customer surveys
Establishment of a practice
to build electric power facilities
with co-funding from consumers
through creation of special project
companies for speedy access
to UNEG
Interaction within contracts,
agreements, cooperation
agreements
State and local
government
bodies
UNEG development and
modernisation
The Company’s
compliance with
regulatory and applicable
requirements, financial
fair play, established
prices, technical
regulations, cooperation
agreements.
The State
Approval of investment
programmes
Identification of regulatory and
applicable requirements
Company’s propositions on how
to change laws and regulations
Signing of cooperation
agreements
State control and supervision
Acquiring regulative and
permission documentation
Reporting
Society
Residents of the
regions of
presence
Ensuring reliable and
stable power supply
Creating jobs
Improving the quality of
life in the Company’s
regions of presence
Reducing negative
environmental impact
Contribution to the development
of the regions of the Company’s
presence
Implementation of socially
important measures
Public hearings
Environmental protection
programmes
In the reporting year, the Company regularly
engaged with the representatives of federal and
regional executive authorities, as well as local
administrations.
In particular, the Ministry of Energy of Russia
approved the adjustment of the Company’s
investment programme for 2019, and the Company’s
investment programme for 2020–2024.
In February 2019, the Chairman of the PJSC FGC
UES Management Board, A. Murov, was included
in the Work Group of the State Council of the
Russian Federation in Energy Industry created to
consider the most pressing issues and ensuring
preparation of materials for their further
consideration at the State Council meetings.
For more information on population engagement
measures in the regions of presence in the reporting
year, see section “Contribution to the
Development of the Regions of the Company’s
Presence.”
Scientific
community
Sectoral science
development
Development and
implementation of innovative
technologies
International scientific and
technical exchange
Joint projects
Attraction to scientific and
technical activities
Scientific and technical
partnership with RNC CIGRE.
Educational
institutions
Targeted staff training
Sectoral science
development
Development of innovative
technologies
Cooperation in scientific and
research activities
Training, re-training and
advanced training of personnel
Practical placement system
Establishment of in-house
training programmes
The Chairman of the Russian
National Committee CIGRE, head
of Rosseti FGC UES — Andrey
Murov, arranged a reporting
conference dedicated to the results
of the 47th session of the
international association. Summary
reports on study materials were
presented at the event.
For more information on educational
engagement measures in the reporting
period, see section Youth Policy.
Environmental
non-government
organisations
Mass media
Reducing negative
environmental impact
Cooperation with environmental
organisations
Providing prompt access to
information on the
Company’s activities
Obtaining the official opinion
and comments from the
Company on current and
future events, trends, and
directions of development
Organisation of events for mass
media
Initiation of publications in
national, regional and local
media
Updates of information on the
corporate website, official blog
and social media profiles of the
Company
For more information on measures for
public environmental organisation
engagement, see section
Environmental Protection.
For more information on media
engagement measures, see section
Information Disclosure.
Subsidiaries
Strategy implementation
(LDP)
High quality of corporate
governance
Business plan delivery
KPI achievement
Internal stakeholders
Organisational and
administrative documents
Interaction between companies
on routine aspects
Development of engineering
centres and competencies on
the base of subsidiaries
For more information on subsidiary
engagement, see section Subsidiaries
Management.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Stakeholder engagement types and channels (continued)
GRI 102-44
Stakeholder
group
Key interests of
stakeholders
Top managers
Personnel
Strategy implementation
(LDP)
Gain in all types of
capital – financial, HR,
intellectual, and social
and reputational
KPI achievement
Uniform corporate values
in sustainable
development
Management of one of
the largest infrastructure
companies in Russia
Professional and career
development in a large,
stable company
Workplace safety and
labour culture
Decent remuneration
and social insurance
Main channels
of engagement
Internal stakeholders
Organisational and administrative
documents
Preparation of financial and
executive statements
Ongoing interaction within the
scope of business processes
Decent level of remuneration
corresponding to skills and
contribution to achieving strategic
goals
HR Policy
Organisational and administrative
documents
Personnel development
Development of corporate culture
and maintaining good moral and
psychological climate
Remuneration defined by the
level of complexity and
responsibility of the work
performed, qualification of
employees, and influence on the
Company’s main performance
results
Social support of employees.
Information and communication
using internal channels
Material
events
Account of suggestions from stakeholders sounded out during the Public Hearings
of 2018 Report
For more information on the Company’s
Management Board activities, achievement of
established KPI and levels of remuneration paid, see
section Executive Governance Bodies and Key
Performance Indicators (KPI).
For more information on personnel engagement, see
section HR Management.
No.
Stakeholder
Suggestion
Professional associations and industry organisations
Taken
into account
1.
2.
3.
4.
Representative of the Expert
Centre of Non-Profit
Partnership Russian Institute
of Directors
To supplement the Annual Report with
information on implementation of
recommendations and information on
independent annual assessment of the
Board of Directors activities.
Representative of the
Russian Bird Conservation
Union
To amend the Annual Report stating that
the activities of the Company affect
biodiversity.
Representative of the
Association ERA of Energy
To supplement Appendix 10 to the Annual
Report with a detailed list of RED Book
species.
To supplement the Annual Report with
information on independent assessment
results for staff qualification
correspondence to professional standards
organised by the Centre for Development
and Assessment of Qualifications in
theElectric Grid Complex (CDA).
MOEX
Taken into account when drafting the
2019 Report.
The impact of the Company on
biodiversity is insignificant.
Pursuant to standard GRI 304-2, impact
is significant if habitats, valuable
populations or separate species cannot
be preserved.
In the course of Rosseti FGC UES
operation, no cases of animals’ habitats
relocation and/or damage were
observed.
Taken into account in Appendix 10 of
the Report 2018.
Taken into account when drafting the
2019 Report.
5.
Representative of PJSC
MOEX
To state in the Annual Report that
dividends are calculated with net revenue
adjustment.
Taken into account in section Dividend
Policy and Profit Distribution.
Interaction with stakeholders
during the Report preparation
For more
information on
participation of
representatives
of stakeholders
in defining the
relevant Report
topics, please
see Information
on the Report.
In order to ensure transparency and accountability of Rosseti FGC UES, representatives of key
stakeholders are engaged in preparing the report: they define the topics for disclosure in the
Report, take part in Public Hearings of the Report draft, and public certification of the Report.
Interaction with stakeholders during the public reporting processes is a provision of international
standards АА1000SES of the Institute of Social and Ethical Accountability, Global Reporting
Initiative (GRI SRS), and the Integrated Reporting International Framework.
During preparation of the previous report, the Company undertook commitments, the majority of
which were taken into account in the 2018 report, while some commitments were met as part of
the preparation of the Report 2019.
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PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
GRI 102-43
Public hearings on the Report project took place in March 2020 in the Company in absentia.
Stakeholders were represented by representatives of power sector companies, industry associations,
MOEX, large companies from other industries, non-for-profit and environmental organisations,
and educational establishments. Based on the results, an accounting table of suggestions and
recommendations of stakeholders was drafted in accordance with which additions and comments to
the Report as they allowed to increase the awareness of the stakeholders regarding the concerning
issues.
The table for accounting suggestions and recommendations by stakeholder, acquired at Public Hearings of
the draft Report for the following reporting periods — two suggestions (40%) for 2019
No.
Stakeholder
Suggestion
Taken into account
1
2
3
4
5
6
7
8
9
10
Representative of
PJSC MOEX
Place a clear comparison of the dividend yield of the
Company’s shares and of other companies.
Responded. The diagram for dividend yield
comparison was added to the PJSC FGC UES
Dividend History section.
Representative of the
Russian Institute of
Directors
Reflect the changes of the dividend yield of FGC in
retrospect of 3–5 years, its changes with the approval
of a new dividend policy taken into account.
Responded. The diagram for dividend yield of the
Company’s shares was added to the PJSC FGC
UES Dividend History section.
Reflect the fact of the Company’s acquiring the annual
award of the informational agencies Interfax and AK&M
for achievements in the field of information disclosure
by stock market participants.
The Industry Overview sections requires updating due
to the changes in macroeconomic indicators and
forecasts for 2020. It is suggested that forecast figures
are removed as they can be reconsidered in the near
future.
Sections for strategy implementation and forecast of
financial indicators require updating due to the change
in forecasts for 2020.
Responded. An insert was added to the
Information Disclosure section.
Responded. The GDP Growth Rate and the
Industrial Production Growth Rate diagrams were
removed.
Not included. Forecast values are presented in
accordance with the approved Business Plan and
Investment Programme.
In the Disclaimer section there is a warning of the
possible changes in forecast values.
Add information of the staff reserve for the senior
managerial positions.
Responded. The Information was added to the
Staff Reserve section.
Excess information on the number of the Company’s
mentions by mass media, diagrams for the Number of
Publications, and Tonality of Publications.
Not included. The volume of disclosed information
remained the same to fully reflect the channels and
forms of engagement with the stakeholders.
Change the classification of the certain statements on
the corporate governance in the Company from
Positive Changes to Maintaining Postive Practice (table
in the Independent Corporate Governance Assessment
section).
Responded. Changes were made.
Excess information in the General Meeting of
Shareholders section.
Responded. The section was made shorter.
Identify the direction of the Board of Directors work
instead of specific questions in the Board of Directors
Plan of Activities for 2020 section.
Not included. The activities of the Board of
Directors are planned based on the specific
questions.
The table for accounting suggestions and recommendations by stakeholder, acquired at Public Hearings of
the draft Report for the following reporting periods — two suggestions (40%) for 2019 (continued)
No.
11
12
13
14
15
16
17
18
Stakeholder
Suggestion
Taken into account
Excess information on the principles of
establishing and arranging activities of the
Board Committees in the Company.
Not included. This information is essential for
the Report readers to understand the
mechanics defining the composition and
activities of the Committees.
Excess information on the gender
composition of the Committees with the
Company’s Board of Directors.
Not included. According to ESG subject
relevance growth rate, the issues of gender
distributions are considered significant.
The actual amount and structure of the
external auditor is absent.
Responded. The Information was added to the
External Auditor section.
Representative of
the Ruskabel Media
Holding
Consider the possibility of removing the
diagram and forecast for the energy
consumption growth rate.
Not included. The forecast for the energy
consumption is an official position of the System
Operator relevant as of the date of drafting the
Report.
Contradicting trends: Rosseti FGC UES does
not expect increase in the volume of paid grid
services accompanied by the growth of GDP
and industrial production.
Responded. The GDP Growth Rate and the
Industrial Production Growth Rate diagrams
were removed.
Consider the possibility to adjust the set of
metrics which reflect the performance results
in the Report regarding the disclosure of
information.
Not included. Will be reviewed in the
preparation of the 2020 Report.
Representative of
the Russian Bird
Conservation Union
It is suggested to start developing and
implementing comprehensive measures to
protect the white stork species.
It is suggested to include measures ensuring
the ornithological safety of the electric grids
facilities located outside of the Key
Ornithological Areas in the Environmental
Policy Implementation Programme and
Quantitative Environmental Targets in the
same way as it is conducted when projects in
field of the forestry certification are developed.
Not included. Development and implementation
of specific measures aimed at protecting the
white stork species, is not justified at the
moment as the reliable data on the decrease in
the population of the birds in the region of
presence of PJSC FGC UES is not provided.
Partially responded. The Company included
the measure “Equipment of the facilities with
bird safety devices” in the Environmental
Policy Implementation Programme.
The inclusion of the relevant indicator in
the Quantitative Environmental Targets is not
possible as the number of the annually
installed bird safety devices is related to
the accident rate in the responsibility area of
the PJSC FGC UES branches and is not
aimed at their overall increase.
Rosseti FGC UES takes part in Russian and international report contests annually. In 2019, the Company was
nominated and awarded in respected international and Russian competitions.
The Company’s Integrated Annual Report 2018 was awarded in the Moscow Exchange contest in Best Annual
Report of the Company with Capitalisation of RUB 40 to 200 bln, Best Presentation of Company’s Strategy and
Investment Attractiveness in the Annual Report, Best Annual Report in the Electric Energy Economic Sector.
At the MarCom Awards international contest, the Company won three gold medals in Printed Media, Printed
Publications in the Infrastructure Sector — Electric Grids, and Interactive Reports.
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
IN 2019,
ROSSETI FGC UES
RECEIVED
THE ANNUAL
AWARD OF
THE INFORMA-
TIONAL
AGENCIES
INTERFAX AND
AK&M
FOR ACHIEVEMENTS
IN THE FIELD OF
INFORMATION
DISCLOSURE BY
THE STOCK MARKET
PARTICIPANTS
PERFORMANCE HIGHLIGHTS 2019
[ SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ]
Information disclosure
Rosseti FGC UES strives to ensure high level of informational openness and transparency
of its operations practising active dialogue with all stakeholders, including federal and
regional authorities, shareholders, investors and partners, public organisations, educational
institutions, mass media, scientific and expert community in Russia and other countries.
In order to create a positive business reputation and positive image, the Company operates
the Regulations on Implementation of the Communication Policy of Rosseti FGC UES, its
Branches and Subsidiaries.
Its informative work implies several communication channels, including a website and
official profiles of the Company on social media (Facebook, Instagram, Twitter, VKontakte,
Odnoklassniky), as well as industry and corporate media (Unified Network Energy and RUM,
Russian Networks, etc.).
The Company directly interacts with federal and regional printed, audio and visual, electronic
mass media and information services including media of all 79 territorial entities of Russia
where Company’s facilities are located.
Special mass media events are implemented (no less than two events per quarter at
responsibility of each branch — MPS), including press tours at Company’s facilities.
Data on production and financial performance results of Rosseti FGC UES, annual reports,
press releases (no less than five publications per week, all placed in federal and regional
news), media publications on Company’s activities, technical and legal documents,
information for shareholders and investors, partners and consumers, and media files are
posted to the website in a timely manner.
On an annual basis, the Company undertakes a qualitative and quantitative study of
the information realm (mentioning in mass media) in order to assess the dynamics and
interpretation of the activities. Studies are conducted by independent experts based on
SCAN-Interfax data.
In 2019, the Company was mentioned by mass media over 30 thousand times which is 9 %
y-o-y. The number of publications containing positive assessment of Company’s activities,
grew by 31 %, and the number of mildly negative publications decreased by 29 %.
Number of publications
(according to SCAN-Interfax)
Quality of publications
(according to SCAN-Interfax)*
Tonality of the publications
(according to SCAN-Interfax)
+9 %
30,231
6,333,780
+1 %
6,370,321
27,684
Positive
+31 %
Participation in the congress and exhibition events
Rosseti FGC UES actively participates in all significant congress and exhibition and scientific
and practical events in the sector, as well as Russian key economic forums. This facilitates
implementation of the Company’s communication policy, strengthening the Company’s
reputation and development of the industry, as well as politically and economically important
cooperation.
This way, in 2019, representatives of the Company took part in the Russian Investment
Forum, Saint Petersburg International Economic Forum, II Russian-Chinese Energy Business
Forum, Eastern Economic Forum, Russian Energy Week, the Power Grids international
forum, and a number of other major events.
For information
on participation
in congress
and exhibition
events, see
Appendix 1.
Brand management
In 2019, the Company started the implementation of the comprehensive programme for transfer to
the unified brand architecture of the Rosseti Group of Companies. In compliance with the Unified
Brand Identity Standard of PJSC Rosseti and the Rosseti Group of Companies56, Provision and
Guidelines for Managing Brand Identity of PJSC FGC UES57, guidelines for decorating vehicles
and special machines, procedure for setting information signs at substations, overhead and
cable electricity supply lines, and guideline for designing information stands were developed and
approved.
All measures for transfer to the unified brand architecture are performed by the Company in
compliance with the approved Roadmap, mainly aimed at:
creating conditions for efficient use of brand identity by structural and separate subdivisions of
Rosseti FGC UES (PJSC FGC UES);
uniform appearance and decoration of offices, corporate resources and documents, printed
and electronic;
unification of approaches to establishing and improving Rosseti FGC UES image;
improving efficiency and ensuring uniform approach to arranging and using corporate
communication means of the Rosseti Group of Companies;
2018
2019
2018
2019
Mildly negative
ensuring awareness of Rosseti FGC UES as organisation included in the Rosseti Group,
consolidated into the unified management system and unified quality standards for services
provided.
-29 %
optimisation of costs for arranging and providing corporate communication;
* Span of the quality index of publications changed in 2019 due to the transfer to the new version of SCAN-Interfax.
56 Approved by the resolution of the Board of Directors of PJSC Rosseti, minutes No. 353 of 30 April 2019.
57 Approved by the resolution of the Board of Directors of PJSC FGC UES, minutes No. 464 of 27 August 2019.
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CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONSTRATEGIC REPORTABOUT THE COMPANY
CORPORATE GOVERNANCE
REPORT
[145] GENERAL INFORMATION ON THE COMPANY’S
CORPORATE GOVERNANCE
[156] GOVERNING BODIES OF THE COMPANY
[192] REMUNERATION SYSTEM
FOR GOVERNING BODIES
[198] ENSURING CONTROL AND RISK
MANAGEMENT
[208] SHARE CAPITAL, SECURITIES
TRADING
Corporate governance at Rosseti FGC UES
provides high efficiency of decision-making,
optimisation of business processes and
control of their performance, corporate risk
management, and information openness.
Corporate governance is compliant with
the principles of responsibility, accountability,
fairness and transparency. The Company
meets the requirements of laws and
advanced corporate governance
standards to the letter.
GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
Statement by
the Chairman
of the Board
of Directors
of PJSC FGC UES
In the reporting year, Rosseti FGC UES continued work to improve
its corporate governance system.
The Company strives to make the maximum
possible contribution to achieving its Sustainable
Development Goals, which were approved by the
UN General Assembly in 2015, with the aim to solve
the most acute problems facing the international
community.
In 2019, the Sustainable Development Policy was
developed, which defines the goals, objectives
and principles of Company activity in this sphere,
including the approaches to interacting with
stakeholders and preparation of reports. It is in our
interest to develop a corporate governance system
to raise the Company’s efficiency and competitive
position. This enables us to ensure growth in
shareholder value, achieve our long-term goals, and
ensure the sustainable development of Rosseti FGC
UES.
More information on the Company’s achievements in
the area of sustainable development can be found in
the corresponding section.
Chairman of PJSC FGC UES
Board of Directors
P. Livinsky
The Board of Directors adopted a new version of the
Corporate Governance Code, which was prepared
in accordance with the requirements of the listing
rules of the Moscow Exchange along with the
recommendations of the Bank of Russia’s Corporate
Governance Code. According to the results of
self-assessment, Rosseti FGC UES fully or partially
observes 97% of the principles and recommendations
of the Russian Corporate Governance Code.
The Board of Directors is a key figure in the system of
corporate governance. Its composition complies with
the Company goals and objectives, and it is balanced
in terms of the number of Board members with the
necessary professional knowledge, competencies,
business skills and experience: 3 out of the 11
members of the Board of Directors are independent
directors, which facilitates the achievement of a high
level of quality in terms of management decisions,
taking into account the interests of stakeholders.
The Board of Directors committees take part in
making decisions related to key issues of strategic
development, investment activity, incentives and
KPIs, internal audits and monitoring. In accordance
with the recommendations of the Russian Corporate
Governance Code, the HR and Remuneration
Committee and the Audit Committee are made up of
independent directors. The members of the Strategy
Committee and the Investment Committee serve as
representatives both of management and of parent
company PJSC Rosseti. This makes it possible to
receive the necessary expertise on key issues related
to planning Rosseti FGC UES activities.
In line with its commitment to the principles of
sustainable development, the Company carries
out the ongoing work to reduce its environmental
footpring, and ensure a balance between the
economic and social aspects of its activities.
PJSC FGC UES
2019 Annual Report
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GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
Memorandum
of the major shareholder
of PJSC Rosseti regarding
affiliated electric grid
companies
PJSC Rosseti is a public holding company with a state share in the authorised capital of 88.04%,
established in accordance with Decree of the President of the Russian Federation No. 1567 of 22
November 2012; the Company aimed at increasing the efficiency and development of the electric grid
complex of the Russian Federation, as well as coordinating work on management of this complex through
subsidiaries and affiliates.
PJSC Rosseti owns a controlling stake in 14 distribution grid companies58 (PJSC Kubanenergo, PJSC
Lenenergo, PJSC Moscow United Electric Grid Company, PJSC IDGC of Volga, PJSC IDGC of North-
West, PJSC IDGC of North Caucasus, PJSC IDGC of Siberia, PJSC IDGC of Urals, PJSC IDGC of Centre,
PJSC IDGC of Centre and Privolzhye, PJSC IDGC of South, PJSC TDC, JSC Rosseti Tyumen, JSC
Yantarenergo) and 1 backbone power grid company (PJSC FGC UES). The disposal of these assets is not
considered.
PJSC Rosseti identified the strategic development priorities of the Group companies:
providing reliable, high-quality and affordable power supply in the new digital
environment;
ensuring further efficiency increase of the main electric power transmission
business;
promotion of legislative initiatives aimed at developing the industry;
maintaining a balance of interests for all parties: the state / consumers /
shareholders / investors;
development of new areas of activity, such as non-tariff and consumer
services, through digital transformation to ensure the Company’s resilience
to changes in the industry.
PJSC Rosseti manages the companies of the Group in accordance with unified corporate standards aimed
at ensuring the efficiency of business processes, controlling their quality, minimising all types of corporate
risks, and maintaining informational and operational transparency.
58 PJSC Kubanenergo provides services under the brand name Rosseti Kuban.
PJSC Lenenergo provides services under the brand name Rosseti Lenenergo.
PJSC MOESK provides services under the brand name Rosseti Moscow Region.
PJSC IDGC of Volga provides services under the brand name Rosseti Volga.
PJSC IDGC of North-West provides services under the brand name Rosseti of North-West.
PJSC IDGC of North Caucasus provides services under the brand name Rosseti North Caucasus.
PJSC IDGC of Siberia provides services under the brand name Rosseti Siberia.
JSC IDGC of Urals provides services under the brand name Rosseti Ural.
PJSC IDGC of Centre provides services under the brand name Rosseti Centre.
PJSC IDGC of Centre and Privolzhye provides services under the brand name Rosseti of Centre and Privolzhye.
PJSC IDGC of South provides services under the brand name Rosseti South.
PJSC TDC provides services under the brand name Rosseti Tomsk.
JSC Yantarenergo provides services under the brand name Rosseti Yantar.
PJSC FGC UES provides services under the brand name Rosseti FGC UES.
General information
on the Company’s corporate
governance
GRI 102-16
Corporate governance in the Company is based on the corporate
governance principles set forth in the Corporate Governance Code
recommended by the Bank of Russia, as well as on the provisions
of Corporate Governance Code of PJSC FGC UES.59
Transparency
The Company provides timely disclosure of complete and reliable information about all
significant facts relating to its activities, including its financial situation, performance results
(social and environmental), the ownership and management structure of the Company, as
well as free access to such information by shareholders and stakeholders.
Accountability
Fairness
According to the legislation of the Russian Federation, the Corporate Governance Code
and International Corporate Governance Standards, the Board of Directors of the Company
reports to the shareholders of the Company.
The Company is obliged to ensure equal and fair treatment of all shareholders
and to protect their rights; it provides all shareholders with the opportunity to receive
effective protection if their rights are violated.
Responsibility
The Company recognizes and ensures the rights of shareholders and stakeholders
stipulated by the legislation of the Russian Federation.
The Company conducts a systematic assessment of corporate governance
with presentation of its results for the Board of Directors (or relevant committee).
The Company meets the requirements of laws and a number of advanced
corporate governance standards.
For more information
on key elements of the
corporate governance
system of Rosseti FGC
UES, please see the
Articles of Association
and internal documents of
PJSC FGC UES at www.
fsk-ees.ru/eng, section
Investors/ Corporate
Governance/ Corporate
Documents.
59 The new version was approved by the resolution of the Board of Directors of PJSC FGC UES, Minutes No. 444 of 23 April 2019.
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ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
S h a r e h o l d e r a g r e e m e n t *
GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
ROSIMUSHCHESTVO
0.59 %
VOTING SHARES
PJSC ROSSETI
80.13 %
VOTING SHARES
MINORITY
SHAREHOLDERS
19.28 %
VOTING SHARES
election
opinion
GENERAL
MEETING
OF SHARE-
HOLDERS
GRI 102-18
CORPORATE
GOVERNANCE
SYSTEM STRUCTURE
- Key participants of the Internal Control and Risk Management System
- GMS (meeting), BD, Management Board — governing bodies
- Corp. Secretary, Committees of the BD — bodies supporting the Board of Directors’ activities
- Auditor, AC, IAD, IC&RMD — corporate governance and risk management
election
opinion
AUDIT COMMISSION
election
reports
and recommendations
election of the Chairman
of the Management
Board
EXTERNAL INDEPENDENT
AUDITOR
opinion
approval of the head
contributing
to effective performance
opinion
election
избрание
BOARD OF DIRECTORS
reports
election
reports
and recommendations
COMMITTEES OF THE
BOARD OF DIRECTORS
reports
CORPORATE
SECRETARY
election of members
to the Management Board and control
reports
opinion
approval of candidates and
signing of agreements
CHAIRMAN OF THE
MANAGEMENT BOARD
MANAGEMENT BOARD
– AUDIT COMMITTEE
– HR AND REMUNERATION
COMMITTEE
– STRATEGY COMMITTEE
– INVESTMENT COMMITTEE
reports
reports,
recommendations
and opinion
* As at 31 December 2019, the Russian Federation represented by the Federal Agency of State Property
Management (Rosimushchestvo) owned 0.59% of shares of PJSC FGC UES. In this regard, an agreement was
signed between the controlling shareholder of PJSC Rosseti and Rosimushchestvo on the management and voting
of PJSC FGC UES shares, which regulates the relationship between shareholders on the issue of implementation
of their rights to PJSC FGC UES for the purposes set forth in Decree of the President of the Russian Federation
No. 1567 of 22 November 2012. Interaction of the Company with the state as a shareholder has its procedural
peculiarities set forth in the normative acts approved by the President and Government of the Russian Federation.
In particular, state representatives in the management bodies of the Company are obliged to vote on a certain
range of issues in accordance with the directives of the Government of the Russian Federation (for more
information, see the section on the work of the Company’s Board of Directors).
appointment
opinion
and recommendations
INTERNAL
CONTROL AND RISK
MANAGEMENT
DEPARTMENT
HEAD
INTERNAL AUDIT
DEPARTMENT
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GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
Development
of the corporate governance system
In order to improve the corporate governance system, the Company continues to implement and adapt the best
corporate governance principles, taking into account the specifics and structure of PJSC FGC UES Group.
Area of improvement
Protection
of shareholder
rights
Management
efficiency
improvement
Measures and actions in 2019
As last year, the shareholders were given the opportunity to vote on agenda issues at the Annual and
Extraordinary General Meetings of Shareholders via electronic bulletin forms at the website of JSC STATUS
Registrar Company, which holds the register of the Company security owners.
Additionally, the shareholders of PJSC FGC UES were given the opportunity to send questions related to
General Meetings of Shareholders to a dedicated email address; PJSC FGC UES Shareholders Forum was
also organised.
The new version of the Corporate Governance Code of PJSC FGC UES was approved.60
The amendments and supplements were added to the document including, but not limited to:
a systematic assessment of corporate governance by the Company with presentation of its results to
the Board of Directors of the Company (relevant Committee of the Board of Directors of the Company);
annual assessment of activities, conducting by the Board of Directors of the Company through
self-assessment or an assessment involving an independent consultant (an assessment involving
an independent consultant is carried out at least once every three years);
bringing the criteria for independence of the members of the Board of Directors in balance with
the criteria provided in the Listing Rules of PJSC Moscow Exchange;
consideration of the most important issues, stipulated by clause 168 of the Russian Corporate
Governance Code, is a priority at in-person meetings of the Board of Directors of the Company,
unless otherwise decided by the Chairman of the Company’s Board of Directors;
the possibility of electing a Senior Independent Director from among other independent members
of the Board of Directors of the Company, indicating his role and main functions.
These amendments are aimed at ensuring continuity and development of positive management practice
in the Company.
Information
disclosure
The new version of the Regulation on the Information Policy of PJSC FGC UES was approved.61
In the new version there is an extended list of information that the Company is obliged to disclose
additionally on the official website of the Company in accordance with the principles of the Russian
Corporate Governance Code. The right of the Sole Executive Body and the Board of Directors of the
Company to establish an additional list of information to be disclosed at the initiative of the Company has
been secured. In accordance with the recommendations of the Russian Corporate Governance Code,
section Measures to Ensure Monitoring of Information Policy Observance is also included.
The new version of the Provision on the Protection of Insider Information of PJSC FGC UES was approved62
with account for the changes made to the Federal Law “On Combating Unfair Use of the Insider Information
and Market Scheming...”.63 Amendments were made to the reporting on compliance with the requirements
of the Insider Law; responsibilities for the approval of additional documents of the Company regarding the
rules for protecting the confidentiality of insider information and monitoring procedure of adherence to the
requirements of the Insider Law were recorded; and the terms of transactions using financial instruments
were specified.
The Company is not confined by the results achieved in improving
the corporate governance system. In 2020, the Company is going
to approve the self-assessment methodology of the Board of
Directors and make amendments to the Corporate Governance
Code in order to further introduce certain recommendations of the
Russian Corporate Governance Code into the Company’s work.
It is also planned to implement the Sustainable Development Policy
and Corporate Social Responsibility Policy, as well as measures
to improve the quality of disclosure of non-financial information,
including ESG principles in the Annual Report and
on the Company’s official website.
Maria Tikhonova
Deputy Chairman of the Management Board of PJSC FGC UES,
Member of the Management Board of PJSC FGC UES
Assessment of corporate governance quality
We pay great attention to the quality of corporate governance and its efficiency analysis, both
attracting external consultants in order to obtain an objective external assessment and the dynamics
of its development, and using tools and methods of internal self-assessment.
Independent corporate governance assessment
The Company constantly engages an external consultant on corporate governance issues
as an independent expert; this allows to monitor ongoing changes and consistently introduce tools
of management system improvement, as well as elements of best practices. For several years,
we have been attracting the Russian Institute of Directors as an external appraiser that monitors
the development of the corporate governance system.
Sustainable
development
The Company has developed a Sustainable Development Policy that defines the goals, objectives and
principles of the Company’s activities in the field of sustainable development, as well as approaches to
interaction with stakeholders and reporting principles.
For the first time, equity shares of PJSC FGC UES are included in the Moscow Exchange Index Calculation
Base — RSPP: Responsibility and Openness, and Vector of Sustainable Development.
National Corporate
Governance Rating
7++
Well-Developed Corporate Governance Practice
Only 4 out of 19 companies have a higher
rating of the corporate governance quality among
the rating participants who disclose information
on the National Corporate Governance Rating.
60 Meeting Minutes of the Board of Directors of PJSC FGC UES No. 444 of 25 April 2019.
61 Meeting Minutes of the Board of Directors of PJSC FGC UES No. 445 of 26 April 2019.
62 Meeting Minutes of the Board of Directors of PJSC FGC UES No. 463 of 12 August 2019.
63 Federal Law No. 224-FZ of 27 July 2010.
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GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
In October 2019, following assessment of the corporate governance quality of PJSC FGC UES,
the Russian Institute of Directors confirmed the rating assigned in 2017 at the level of 7++, which
implies the following characteristic of the corporate governance system:
“The Company observes the requirements of Russian legislation in the sphere of corporate
governance and follows a considerable number of the recommendations of the Russian
Corporate Governance Code. The Company is characterised by rather low risks of ownership
loss, associated with the quality of corporate governance.”
The Russian Institute of Directors Assessment Methodology has 160 criteria for 4 components:
shareholders’ rights;
activities of supervision and control authorities;
information disclosure;
corporate social responsibility and sustainable development.
For more information on Assessment Methodology, please see Russian Institute of Directors website.
During the assessment by the Russian Institute of Directors, positive practices were maintained:
the Company possesses good dividend history;
authorities of the Company’s Board of Directors regarding decision-making on material
transactions were extended;
the list of materials to prepare for the General Meeting of Shareholders was extended in
compliance with the reccomendations of the Russian Corporate Governance Code;
the Company conducts AGM online broadcasting.
In addition, positive changes in the corporate governance were noted:
approval of the new version of the Corporate Governance Code of PJSC FGC UES,
which takes into account a number of additional recommendations in the field of corporate
governance;
approval of the new version of the Regulation on the Information Policy of PJSC FGC UES.
For more
information
on the Research,
see link.
The Russian Institute of Directors identified corporate governance areas of improvement:
increase in the number of in-person meetings of the Company’s Board of Directors
and its committees. At the same time, there is a positive dynamic in the growth in number
of meetings of the Board of Directors compared to 2018;
implementation of mechanisms to monitor voting with quasi-treasury shares by the Board
of Directors;
amendments to the Articles of Association in terms of referring the issue of sole executive
body election to the competence of the Board of Directors.
In addition to the assessment conducted by the Russian Institute of Directors, the high quality
of corporate governance in the Company was also noted by a number of other consultants.
Thus, according to 2019 National Corporate Governance Index Research, PJSC FGC UES
is among the Top 20 leaders by the quality of information disclosed on the principles
of corporate governance.
Self-assessment of corporate governance quality
In addition to the external assessment, the Company also carries out a self-assessment
of the corporate governance. It is conducted in accordance with the Corporate Governance
Self-Assessment Methodology of PJSC FGC UES, based on the recommendations of the Bank
of Russia on assessing compliance with the Russian Corporate Governance Code.
The results of the assessments indicate the effectiveness of measures taken by the Company
to develop the corporate governance system.
The Report on
Compliance with
the Principles and
Recommendations
of the Russian
Corporate
Governance Code
is presented in
Appendix 2.
Results of the corporate
governance self-assessment
91 %
90 %
89 %
2017
2018
2019
- Level of compliance
Observance of principles and recommendations
of the Corporate Governance Code
4 %
14 %
3 %
14 %
2 %
13 %
61 %
62 %
64 %
2017
2018
2019
RESULT
OF THE 2019
CORPORATE GOVERNANCE
SELF-ASSESSMENT
91 %
- Fully observed
- Partially observed
- Not observed and not applicable
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153
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
GENERAL INFORMATION ON THE COMPANY’S CORPORATE GOVERNANCE
Management of affiliates
Key management mechanisms with affiliates
Structure of Rosseti FGC UES Group
The main forms of interaction between PJSC FGC UES and its subsidiaries and affiliates are as follows:
PJSC FGC UES
SUBSIDIARIES, AFFILIATES AND OTHER COMPANIES IN WHICH PJSC FGC UES HAS SHARE
100 % owned subsidiaries
75–99 % owned subsidiaries
50–74 % owned subsidiaries
LLC IT ENERGY SERVICE
80.001 %
JSC IPS SAKRUSENERGO
50 %
JSC TOMSK TRUNK GRIDS
90.48 %
JSC NURENERGO
76.9996 %
Less 20% owned other companies
Affiliates
JSC ENIN
38.239 %
JSC ACRA
3.704 %
CJSC TAIGAENERGOSTROY
0.00067 %
PJSC ROSSETI
0.151 %
PJSC INTER RAO
8.57 %
CJSC ENERGORYNOK
8.5 %
JSC APBE
JSC MOBILE GTES
JSC MUS ENERGETIKI
JSC NTC FGC UES
JSC TSIUS UES
JSC CHITATEKHENERGO
JSC ELECTROSETSERVICE UNEG
JSC ESSK UES
LLC INDEX OF ENERGY – FGC UES
LLC FGC – ASSET MANAGEMENT
JSC KUBAN TRUNK GRIDS
PJSC FGC UES includes 45 regional branches, with 8 branches of the main power systems (MPS)
and 36 branches of the enterprises of the main power systems (EMPS), as well as Bely Rast Special
Production Plant.
PJSC FGC UES participates in 21 business entities that operate in different industries, including
those that support electrical grid facilities.
PJSC FGC UES Board of Directors reviews issues pertaining to the Company representatives’
position on draft decisions on issues included in the agendas of General Meeting of Shareholders
and meetings of the boards of directors (Supervisory Boards) of subsidiaries and affiliates;
PJSC FGC UES contributes to the drafting of proposals and decision-making by the management
bodies of its subsidiaries and affiliates through the Company’s representatives at General Meetings
of Shareholders/Participants and at the meetings of the boards of directors (Supervisory Boards)
of subsidiaries and affiliates;
the Management Board of PJSC FGC UES considers the issues of interaction between
PJSC FGC UES and its subsidiaries and affiliates in accordance with its competence determined
by the Articles of Association of PJSC FGC UES.
In 2019, the Board of Directors of PJSC FGC UES considered 12 issues on determining
the position of the agenda items at General Meetings of Shareholders and those of Boards of Directors
of its subsidiaries.
Policies of PJSC FGC UES on management
of subsidiaries and affiliates
Managing subsidiaries and business entities in which PJSC FGC UES participates is regulated
by the Company’s internal documents:
Regulation on Managing PJSC FGC UES Subsidiaries, Affiliates and Other Business Entities
in which PJSC FGC UES Participates;
Standard for Drawing Up Summary Instructions for representatives of PJSC FGC UES on
Issues Included in Agendas of General Meetings of Shareholders/Participants and Meetings of the
Boards of Directors (Supervisory Boards) of Entities in which PJSC FGC UES Participates;
Procedure for Calculating and Assessment of KPI Achievement by Subsidiaries
and Other Entities in which PJSC FGC UES Participates;
Business Planning Procedure for PJSC FGC UES Subsidiaries and Affiliates;
Regulation on Ensuring Financial Sustainability of PJSC FGC UES Subsidiaries, Affiliates
and Other Entities in which PJSC FGC UES Participates;
Procedure for Interaction of Departments of PJSC FGC UES Executive Office with
PJSC FGC UES Subsidiaries and Affiliates when Collecting Information and Verifying
the Data Received for Calculation and Evaluation of KPI Achievement;
Order of PJSC FGC UES on Approval of Standards and Template Regulations
on Managing Subsidiaries and Affiliates;
Order of PJSC FGC UES on Organisation of Work of PJSC FGC UES Representatives
on the Boards of Directors and Committees of Organisations that are not PJSC FGC UES
Subsidiaries;
other organisational and administrative documents of PJSC FGC UES.
154
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PJSC FGC UES
2019 Annual Report
155
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
GOVERNING BODIES OF THE COMPANY
[GENERAL MEETING OF SHAREHOLDERS]
GOVERNING BODIES OF THE COMPANY
[GENERAL MEETING OF SHAREHOLDERS]
General Meeting of Shareholders
General Meetings of Shareholders in 2019
The General Meeting of Shareholders (hereinafter referred to as the Meeting) is the supreme
management body of PJSC FGC UES, ensuring that shareholders exercise their rights to manage
the Company.
PJSC FGC UES defined a list of additional materials to be provided to shareholders when preparing
for the General Meeting to enable them to take well-founded decisions. These materials include
the position of the Board of Directors regarding the Meeting’s agenda, expanded information about
candidates for governing and control bodies, tables of comparisons with the current revisions
of amendments to the internal documents of the Company. All materials are disclosed on the
Company’s website, in English and Russian, not later than 30 days prior to the date of the General
Meeting of Shareholders.
The PJSC FGC UES Regulations on the General Meeting of Shareholders64 provide clear procedures
for its holding, including an opportunity for shareholders to ask questions on the agenda items.
Shareholders are able to put questions directly to the members of governing and control bodies, the
Chief Accountant and the Company’s auditors, who shall be mandatory invited to attend the Meeting.
Additionally, the shareholders of PJSC FGC UES were given the opportunity to send questions related
to AGM to a dedicated email address; PJSC FGC UES Shareholders Forum was also organised.
On the Internet site of PJSC FGC UES, AGM video broadcasting was organised.
Organisation of General Meetings
of Shareholders
General Meetings of Shareholders are one of the key events in the activities of the Company.
The Company responsibly conducts the organisation of Meetings, striving to ensure maximum comfort
and awareness of shareholders. In addition to the features noted above during the organisation
of these Meetings, we ensure the implementation of additional measures in the interests
of shareholders and investors, such as
ensuring participation in the Meeting of representatives of key stakeholder
groups, including mass media representatives in order to give them
the opportunity to provide information on all interesting issues;
completeness and information value of materials, including
recommendations of committees of the Board of Directors and the Board
of Directors of the Company, full information about candidates for governing
bodies, detailed reports and demonstration materials;
placement and storage of information in the public domain on the official
website of the Company for several years;
holding Meetings in convenient locations in Moscow with the opportunity
of unhindered access for all shareholders;
implementation and active development of remote services.
Annual General Meeting
of Shareholders
Date: 26 June 2019
Meeting (joint presence) in
Moscow
Quorum: 87.9320%
Resolutions taken:
the Annual Report of PJSC FGC UES for 2018 was approved;
the annual accounting (financial) reporting of PJSC FGC UES for 2018 was
approved;
the distribution of the Company’s profit and loss according to the results of the
2018 reporting year was approved;
the amount of dividends, the term and form of their payment based on the
results of work for 2018 are determined and the date is set on which persons
who are entitled to receive dividends are determined;
the payment of remuneration for work on the Board of Directors to members of
the Board of Directors who are not civil servants was approved in the amount
established by the internal documents of PJSC FGC UES;
the payment of remuneration for work in the Audit Commission to members of
the Audit Commission who are not civil servants in the amount established by the
internal documents of PJSC FGC UES was approved;
the Board of Directors of PJSC FGC UES was elected;
the Audit Commission of PJSC FGC UES was elected;
the auditor of PJSC FGC UES was approved.
Extraordinary General
Meeting of Shareholders
Date: 30 December 2019
Absentee voting
Quorum: 88.2681%
The decision was made to determine the amount of dividends, the timing and form
of payment according to the results of work for 9M 2019.
Quorum of General Meetings
of Shareholders
The quorum of General Meetings of Shareholders for several years has traditionally been ~
88% (PJSC Rosseti and the Russian Federation own ~ 80.7% of the voting shares), thus, it
means that about 40% of the total number of minority shareholders is fairly high indicator,
taking into account the federal scale and geography of the Company’s minority shareholders.
Quorum of General Meetings of Shareholders
in 2015-2019
90 %
90 %
87 %
87 %
84 %
88 %
88 %
88 %
The Company conducts
a deliberate and consistent
policy of abstaining from
voting on quasi-treasury
shares (1.07% of voting
shares) owned by
a 100% subsidiary —
FGC-Asset Management
LLC. This is thoroughly aligns
with the interests of minority
shareholders and best
management practices.
Minutes of the
General Meetings
of Shareholders
are available on
the website www.
fsk-ees.ru/eng
in section
Investors/
Corporate
Governance/
Shareholders
Meetings.
64 Approved by the resolution of the General Meeting of Shareholders of PJSC FGC UES, minutes No. 16 of 30 June 2015
26.06.2015
29.06.2016
29.06.2017
15.09.2017
28.06.2018
19.11.2018
26.06.2019
29.12.2019
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ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
The Company’s Board of Directors
In total, 47 meetings were held in 2019, 5 of them in a joint presence format. 168 issues were considered,
of which a quarter were issues of corporate governance.
GRI 102-26
Performance statistics of the Board of Directors
The PJSC FGC UES Board of Directors plays a key role in the Company’s management system ensuring
its consistent and effective development in the interests of the Company. The powers of the Board of
Directors are determined by the requirements of federal legislation and additionally substantially expanded
by the Company’s Articles of Association. In particular, the Board of Directors is responsible for the
Company’s strategic development, approves the budget and the investment programme, reviews reports
on their implementation, monitors the execution of tasks set by the Company’s management, and analyses
and ensures the necessary resources are available.
Functions
General strategic management in the Company, ensuring equal guarantees
of the interests of shareholders and investors.
Board of Directors / Collegiate governing body
Accountability
Accountable to the Company’s General Meeting of Shareholders.
Appointment/election
procedure
The membership of the Board of Directors is elected by the General Meeting
of Shareholders of the Company from candidates proposed by shareholders holding at least
2% of voting shares in the Company.
The Chairman of the Board of Directors is elected by majority vote from the formed
Board of Directors.
Term of office
One year (until the next Annual General Meeting of Shareholders).
All the members of the Board of Directors may be re-elected at the Extraordinary
General Meeting of Shareholders.
Membership
The elected members of the Board of Directors have the following status:
executive director (who is also a member of the Company’s executive bodies);
independent director (meets the independence criteria);
non-executive director (other directors).
In accordance with the Company’s Articles of Association, three categories of issues are referred to the competence
of the Board of Directors.
Mandatory issues
Issues referred to the exclusive competence of the Company’s Board of Directors,
Article 65 of the Federal Law “On joint-stock companies”.
Additional issues
Issues referred to the competence of the General Meeting of Shareholders and transferred,
in accordance with the Company’s Articles of Association and Article 48 of the Federal
Law “On joint-stock companies”, to the Board of Directors:
increase in the Company’s authorised capital due to an issue of additional shares;
establishment of the Company’s collegiate executive body, early termination of powers
of the collegiate executive body members.
Extended
competence
Issues referred to the competence of the executive management bodies and transferred
to the competence of the Company’s Board of Directors by the Articles of Association,
internal documents and decisions of the PJSC FGC UES Board of Directors:
finance and investments;
management of key business processes;
subsidiaries management on key business issues;
internal control, audit and risk management;
internal documents and policies;
other issues.
s
g
n
i
t
e
e
m
f
o
r
e
b
m
u
N
50
45
40
35
30
25
20
15
10
5
0
192
9/183
9/169
178
10/157
35
3
43
42
168
3
5
2017
2018
2019
195
190
185
180
175
170
165
160
155
i
d
e
w
e
v
e
r
s
m
e
t
I
- Meetins in the format
of joint presence
- Meetings in absentia
- Items reviewed
15/135
- Number of items reviewed
at meetings in praesentia/absentia
Item categories (2019/2018)
13 % / 13 %
1 % / 2 %
4 % / 3 %
2 % / 3 %
4 % / 3 %
1 % / 3 %
7 % / 6 %
7 % / 7 %
24 % / 25 %
20 % / 16 %
2019
2018
- Strategy and priority areas (29 / 33)
- Control and reporting (33 / 29)
- Corporate governance (44 / 40)
- Subsidiaries management (13 / 12)
- HR and remuneration (11 / 12)
- Approval of transactions (5 / 1)
- Other (6 / 7)
- Internal audit (6 / 4)
- Risks (5 / 7)
- Social issues (3 / 1)
- Finance (23 / 22)
17 % / 19 %
Distribution of competences of the Board members when reviewing the items
51
25
5
- Essential items (FZ on JSC)
- Additional items (FZ on JSC/Articles of Association)
- Extended competence (Articles of Association)
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Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
159
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
Participation of members in meetings
of the Board of Directors and its Committees
Report of the Board of Directors
on results of the Company’s development
in priority business areas
Board member
Board of Directors
Pavel Livinsky
47/47
100 %
Audit
Committee
HR and
Remuneration
Committee
Strategy
Committee
Investment
Committee
GRI 102-34
Pavel Grachev
47/47
100 %
100 %
100 %
Pavel Grebtsov
(since 26 June 2019)
27/27
100 %
100 %
Igor Kamenskoy
47/47
100 %
100 %
100 %
100 %
Andrey Murov
47/47
100 %
Nikolay Roshchenko
46/47
98 %
Olga Sergeeva
(since 26 June 2019)
27/27
100 %
Sergey Sergeev
47/47
100 %
Pavel Snikkars
43/47
91 %
100 %
100 %
Ernesto Ferlenghi
45/47
96 %
100 %
100 %
100 %
Vladimir Furgalsky
(since 26 June 2019)
Andrey Demin
(until 26 June 2019)
Oksana Shatokhina
(until 26 June 2019)
Egor Prokhorov
(until 26 June 2019)
27/27
100 %
100 %
20/20
100 %
20/20
100 %
18/20
90 %
In 2019, the Company’s Board of Directors continued to develop the Company in the priority areas defined
in the Company’s Long-term Development Programme.
Strategic objective
Reliability and
quality of energy
supply
Customer
satisfaction
Resolutions taken
The upgraded Resource Plan on ensuring the implementation of the Development Plan of the Industrial
Assets Management System of PJSC FGC UES for 2017–2020 was approved. 65 Cost estimation
of implementation of the Resource Plan objectives was increased by RUB 210.4 million due to the functional
scope of projects being specified.
To reduce risks of cyber threats, a decision on the transition to the use of mainly domestic software was taken.
As part of control over the Company’s operations, the Board of Directors took into consideration:
the reports on the consideration of applications for technological connection and the execution
of agreements on technological connection to electric grid facilities of Rosseti FGC UES for 2018.66
Actual value of KPI defining the quality of the technological connection services provided is higher
than the target value;
information on indicators of the level of reliability and quality of the services provided by the Company
which are subject to tariff regulation.67 Actual value of these indicators is better than the value specified
by the regulators for 2018.
The PJSC FGC UES Quality Policy was approved which sets principles and objectives of the Company’s
activities in terms of service quality achieved.
Financial
sustainability
The Board of Directors considered planned items related to business planning and financing:
the PJSC FGC UES business plans for 2019–2020 and forecast indicators for 2021–2024 were approved;
the Action Plan of PJSC FGC UES for reduction of overdue accounts receivable for the electricity
Effective
governance
transmission services and dispute settlement was approved;
the consolidated business plan (RAS) and the consolidated business plan (IFRS) for FGC UES Group
for 2019 and the forecasts for 2020–2023 were taken into account;
the reports on the implementation of the consolidated business plan (RAS) and the consolidated business
plan (IFRS) for FGC UES Group were taken into account;
the reports on the execution of the business plan of PJSC FGC UES were taken into account;
a general limit of the Company’s debt to third parties on borrowed funds was established;
the report of PJSC FGC UES on results of work in capital markets and interaction with rating agencies
for 2018 was taken into account.
As part of control and assessment of progress in achieving strategic priorities and the Company’s
management activities in this area, the Board of Directors considered the reports on the implementation
of activities and achievement of KPI set by the Long-Term Development Programme of PJSC FGC UES.
In order to monitor the effectiveness of innovation activities, the Board of Directors considered and approved68
the Annual Report for 2018 on the Innovative Development Programme of PJSC FGC UES implementation
in 2016–2020 with an outlook until 2025.
As part of operations with non-core assets, the Board of Directors made resolutions on a number of items:
a new version of the Register of Non-Core Assets of PJSC FGC UES and the Action Plan on the disposal
of non-core assets of PJSC FGC UES were approved;
the reports on the implementation and results of activities under the Programme for Disposal of Non-Core
Assets of PJSC FGC UES and Its Subsidiaries for Q4 2018 and 2018, as well as for Q1, Q2 and Q3 of 2019,
were approved.
A new version of the Corporate Governance Code of PJSC FGC UES was approved,69 implying major
synchronisation with the provisions of the Moscow Exchange Listing Rules and the Corporate Governance
Code by the Bank of Russia.
65 Minutes No. 476 of 13 December 2019.
66 Minutes No. 445 of 26 April 2019.
67 Minutes No. 445 of 26 April 2019.
68 Minutes No. 464 of 27 August 2019.
69 Minutes No. 444 of 25 April 2019.
160
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
161
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
(continued)
Development
of the UNEG
infrastructure
and consolidation
of UNEG facilities
Adjustments of the PJSC FGC UES investment programme for 2016–2020 and the PJSC FGC UES investment
programme for 2020–2024 were approved. The adjustments optimise the investment programme parameters
compared to the previously approved70 programme, namely: in 2020, financing will increase by RUB 35.1 billion, and
the commissioning plan financing will increase by RUB 44.5 billion.
In order to ensure control over the implementation of the investment programme, the Board of Directors took a number
of resolutions:
the list of investment projects of PJSC FGC UES being subject to public technological and price audits in 2019
was approved;
the annual report on the technological and price audits of investment projects of PJSC FGC UES in 2018 was
approved;
the reports on the implementation of the PJSC FGC UES investment programme, including projects of federal
significance, were taken into consideration. The special control of the Board of Directors is subject to compliance
with the schedules agreed with PJSC Transneft for the construction of separate electric grid facilities.
The minutes
of meetings
of the Board
of Directors
are available
on the
website www.
fsk-ees.ru in
the section
Shareholders
and Investors/
Corporate
Governance/
Decisions of
the Board of
Directors.
The Board of Directors Plan of Activities for 2020
In 2020, the Company’s Board of Directors plans to consider the following issues:
the implementation of the PJSC FGC UES investment projects including the projects
of the Comprehensive Plan for Modernisation and Expansion of the Main Infrastructure
for the Period until 2024;
the implementation of the Development Plan of PJSC FGC UES productive asset management;
the Action Plan for the reduction of overdue accounts receivable for the electricity transmission
services and dispute settlement was approved;
the reports on the progress and results of implementation of measures under the Programme
for Disposal of Non-Core Assets of PJSC FGC UES and its Subsidiaries were considered;
maintaining an efficient internal control system of PJSC FGC UES and its development;
approval of the Sustainable Development Policy of the Federal Grid Company.
Role of independent directors
All members of the Company’s Board of Directors shall, while performing their duties, consider
the importance of taking professional, reasonable and informed decisions which contribute to development
and effectiveness of the Company’s activities. Furthermore, in order to provide an objective analysis
of the issues reviewed and consider different factors in the Company’s interests, at least three
independent directors are involved in the Board of Director’s activities, who meet the substantive
independence criteria specified by the recommendations of the Corporate Governance Code of Russia
and the Listing Rules of PJSC Moscow Exchange.
In the reporting year, members of the Board of Directors P. Grachev, I. Kamenskoy and E. Ferlenghi
were the Company’s independent directors.
During 2018, the Board of Directors of PJSC FGC UES took decisions on recognising as independent
the members of the Board of Directors of PJSC FGC UES E. Ferlenghi by the criterion of relatedness with
the issuer71 and P. Grachev by the criterion of a connection with a significant counterparty.72
70 Approved by order of the Ministry of Energy of Russia No. 1432 of 28 December 2016 and adjusted by order of the Ministry of Energy of Russia
No. 31@ of 27 December 2017.
71Clause 3.3 of Meeting Minutes of PJSC FGC UES Board of Directors No. 455 of 27 June 2019.
72 Clause 3.1 of Meeting Minutes of the Board of Directors of PJSC FGC UES No. 455 of 27 June 2019, clause 1 of Meeting Minutes of PJSC FGC UES
Board of Directors No. 469 of 30 September 2019.
162
Annual Report 2019 PJSC FGC UES
In accordance with the decisions taken, the Board of Directors of PJSC FGC UES determined that this
connection is of a formal nature and does not affect the independence in the formation of E. Ferlenghi’s
and P. Grachev’s position on the agenda of the Board of Directors, on the ability to make objective, fair and
independent judgements.
The role of independent directors is of special importance in a number of critical processes and procedures
which directly affect the efficiency of the Company’s management system, in particular such as:
equal expression and the protection of the rights and lawful interests of all the groups
of the Company’s shareholders;
the organisation of the operations of the committees responsible for reliable control
of financial reporting, the risk, internal control and audit management system, selection
of auditors, anti-corruption, as well as motivation and control of the Company’s
management (Audit Committee and HR and Remuneration Committee);
the organisation of the development and implementation of the motivation
and remuneration policies of the Company’s management;
ensuring the transparency of the Company’s information;
the objective consideration of all aspects when performing material corporate actions
(reorganisation, M&A projects).
Currently, there is no Senior Independent Director position in the Company. Independent directors express
their opinions on their own and equally and are able to cooperate directly both with the Chairman of the Board
of Directors and the Company’s management, when necessary.
Chairman of the Board of Directors
The Chairman of the Board of Directors plays a key role in the organisation of the Board of Directors
activities, therefore, additional rights and responsibilities formalised in the Provision on the Board
of Directors have been given to them. In particular, a Chairman of the Board of Directors has
the following functions:
creation and approval of the agenda and the form of the meetings (joint presence or
absentee vote);
determination of a list of persons invited to participate in the discussion of specific agenda
items of the Company’s meetings of the Board of Directors;
organisation of the most effective decisions on the items on the agenda and also, when
conducting the meetings of the Company’s Board of Directors in the joint presence format,
provision of the free discussion of agenda items and a constructive atmosphere at the
meetings;
representation of the Company’s Board of Directors in relation to the Company’s executive
bodies.
Assessment of performance
of the Board of Directors
GRI 102-28
In accordance with the recommendations of the Corporate Governance Code of Russia, monitoring
of the corporate governance quality is carried out in the Company annually, including assessment
of the activities of the Company’s Board of Directors and its committees. The assessment results are
submitted to the Board of Directors, as a rule, before the Annual General Meeting of Shareholders,
in order to consider the aspects detected in planning of further activities of the Board of Directors
and its committees.
PJSC FGC UES
2019 Annual Report
163
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
Since 2016, the Company has annually involved an external consultant for the Board of Directors
assessment, which helped to ensure the independence of the analysis of the activities of the Board of Directors
and its committees. Due to the adoption of a new version of the Corporate Governance Code of PJSC FGC
UES in 2019, the practice of annual assessment of the Board of Directors remains, and, at the same time, such
assessment is being conducted in the form of self-assessment or the assessment with an external
consultant (at least every three years).
The information on the assessments conducted by the Board of Directors and its committees
Assessment period
2016
2017
2018
Assessment format
With involvement of an
external consultant: JSC
VTB Registrar
With involvement of an
external consultant:
TopCompetence LLC
With involvement of an
external consultant: JSC
VTB Registrar
2019
Self-
assessment
Results of self-assessment of the Board of Directors
In 2019, an assessment of the efficiency of the activities of the Board of Directors and its committees was
conducted in the form of self-assessment. The methodology and main provisions of the assessment order
are determined by the Provision on Conducting Assessment of the Activities of the Board of Directors
of PJSC FGC UES approved by the decision of the Company’s Board of Directors.73
The self-assessment procedure includes the analysis of the following components:
assessment of performance of the Board of Directors;
assessment of the activities of the Chairman of the Company’s Board of Directors;
assessment of the membership and structure of the Board of Directors;
organisation of the performance of the Board of Directors;
assessment of the performance of the Board of Directors.
In 2019, the main part of the self-assessment was conducted by means of questioning members of the Board
of Directors and committees based on 66 criteria using a five-point grading scale (where five is the maximum).
In total, 62% of respondents took part in the self-assessment.
Results of self-assessment of activities of the Company’s Board of Directors and its committees
Entry
Results of assessment
Score
1.1 Assessment of the Board of Directors’ performance as a governing body
Formation and control of the Company’s development strategy implementation
Development of effective internal audit, internal control and management systems
Assessment of the Company’s management performance,
development of an efficient system of its motivation
Safeguarding of assets
1.2 Composition and structure of the Board
1.3. Management of the Board’s performance
Ensuring performance of the Board
Infrastructure availability
Interaction of the Board with the Company’s management
Interaction of the Board with its Committees
1.4 Chairman of the Board of Directors
2.1. Audit Committee
2.2. HR and Remuneration Committee
2.3. Strategy Committee
2.4. Investment Committee
48
48
48
46
50
50
48
50
43
48
50
50
48
49
48
47
2
2
2
4
2
7
2
2
1
2
3
4.8
4.8
4.8
4.6
5.0
5.0
4.8
5.0
4.3
4.8
5.0
5.0
4.8
4.9
4.8
4.7
Information on the consideration implementation
of the previous recommendations based on the results
of independent assessment of the activities
of the Board of Directors
Recommendations
Consideration of the recommendations in 2019
Increasing the number of
in-person meetings of the
Board of Directors, the
Audit Committee and the
HR and Remuneration
Committee
Consideration of the
possibility of bringing the
issues of risk
management and internal
audit for internal
consideration by the
Board of Directors
Developing a programme
for the induction of newly
elected members of the
Board of Directors
Considering the
possibility of introducing
the practice of working
with members of the
Board of Directors
informing the Board of
Directors on issues of
interaction with
shareholders and
investors, environmental
and social responsibility,
as well as concerning
changes in legislation,
the local regulatory
framework and best
corporate governance
practices
In 2019, the number of in-person meetings of the Board of Directors
was increased to 5, as well as the share of the issues considered during
these meetings. The number of in-person meetings of the HR and
Remuneration Committee increased to five (compared to one meeting
in 2018). The share of in-person meetings of other committees
amounted to 50% of the total number of meetings.
In 2019, the issues of risk management and internal audit were
considered at meetings held in absentia. Furthermore, in 2019,
amendments74 were made to the Corporate Governance Code
of PJSC FGC UES which provide that the most significant issues
(including considering the risk management policy) shall be resolved
at meetings held in praesentia, unless another decision is made
by the Chairman of the Company’s Board of Directors.
The main procedures were implemented by the Company, aimed
at the “induction” of newly elected members of the Board of Directors
(including informing, meetings with the management, and attending
production units and facilities). A specific document will be developed
or the corresponding amendments will be made to the Company’s
internal documents regulating the operation of its bodies, aimed
at formalising the procedures specified.
The issues on interaction with stakeholders, social responsibility
and changes in regulatory environment are always controlled by
the Audit Committee of the Board of Directors (when considering
the internal audit reports and the risk reports). In the reporting year,
the Company paid special attention to risks — more than 25%
of the issues considered by the Committee were related to aspects
of risk and regulatory specifics. The members of the Board of Directors
are informed on the decisions and recommendations of the Committees
which enables the Company to receive the necessary information
in a timely manner.
As per the results of the self-assessment of the activities
of the Company’s Board of Directors and its committees, the level
of interaction of the Board of Directors with the Company’s
management, availability of information between the meetings
of the Board of Directors, as well as the degree of interaction
of the Board of Directors with its Committees, scored highest.
73 Minutes of the Board of Directors of PJSC FGC UES No. 355 of 20 February 2017 and No. 459 of 18 July 2019.
74 Meeting Minutes of the Board of Directors of PJSC FGC UES No. 444 of 25 April 2019
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ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
Members of the Board of Directors75
GRI 102-27
As of 31 December 2019, the composition of the Board of Directors of PJSC FGC UES was elected by the
Annual General Meeting of Shareholders on 26 June 2019.76
In the reporting year, the members of the Board of Directors were re-elected by the resolution of the Annual
General Meeting of Shareholders on 26 June 2019. Based on its results, the composition was renewed by
27%: Andrey Demin, Egor Prokhorov and Olga Shatokhina left the Board of Directors, and Pavel Grebtsov,
Olga Sergeeva and Vladimir Furgalsky were elected as new members of Board of Directors.
In the reporting year, the Board members of the Company hold no shares and bonds of the Company and its
controlled companies and made no transactions with the mentioned securities.
In the reporting year, the Board members received no loans or credits from the Company, nor had any other
contractual relations with the Company and/or its controlled organisations, except for employment agreements/
contracts (Andrey Murov) and agreements related to the status of members of the Company’s Board of Directors.
Competence and ensurance of the principle
of diversification of the Board of Directors’ members
GRI 102-22
In accordance with the Company’s Articles of Association, the Board of Directors is elected to no fewer
than 11 members. Such a number of members makes it possible to form a balanced composition in terms
of professional qualifications, experience and business skills of the members of the Board of Directors,
to ensure high level performance, and fully meets the needs of the Company and the interests of shareholders.
In accordance with the structure of share capital (80.13% of the total number of ordinary shares owned
by PJSC Rosseti), the overwhelming majority of members of the Board of Directors of PJSC FGC UES
are elected on the proposal of the controlling shareholder, PJSC Rosseti.
The composition of the Board of Directors is balanced in terms of its members having the core competencies
necessary for the effectiveness and duration of their work on the Board. Members of the Board of Directors
have skills in the field of strategic management, corporate governance, corporate finance, risk management,
accounting, as well as knowledge and working experience in the field of the electric power industry.
The Board of Directors of PJSC FGC UES includes three independent directors, and the Audit Committee
and the HR and Remuneration Committee are formed exclusively of independent directors, which is consistent
with the recommendations of the Bank of Russia Corporate Governance Code and the requirements of the
Listing Rules of PJSC Moscow Exchange.
GRI 102-24
Candidates to the Board of Directors are elected based on their personal and professional skills and in accordance
with the independence criteria specified by the rules of listing of PJSC Moscow Exchange.
When forming the Company’s Board of Directors, the following criteria are taken into account:
members of the Company’s Board of Directors shall meet the requirements with respect
to their skills, experience, knowledge and reputation in business;
election to the Company’s Board of Directors of at least three independent directors and one
representative from the Association NP Market Council;
executive directors may not comprise more than 25% of the composition of the Company’s
Board of Directors.
Competences and industry-specific experience of members of PJSC FGC UES Board of Directors
Education and skills
Board
member
Status
Length
of
service,
years
Length of
service on
the Board,
years
Finances,
risks and
audit
Strategy
Industry
IT/
innovations
HR/ SR/
HSE
GR
Corpo-
rate
manage-
ment and
law
Pavel Livinsky
Non-Executive
Director
16
1.5
++
++
++
+
++
++
Pavel Grachev
Independent Director
6
5.5
++
+
+
++
++
++
Pavel Grebtsov
Non-Executive
Director
Igor Kamenskoy
Independent Director
Andrey Murov
Executive Director
Nikolay
Roshchenko
Olga Sergeeva
Sergey Sergeev
Pavel Snikkars
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director
19
0.6
++
++
++
++
4
8
11
9
11
15
3.5
++
++
6.5
++
++
++
+
+
++
++
++
++
3.5
0.5
+
+
++
++
+
++
3.5
++
++
++
+
3.5
++
++
+
++
Ernesto Ferlenghi
Independent Director
11
9
++
++
++
++
++
++
+
++
++
+
+
+
Vladimir Furgalsky
Non-Executive
Director
9
0.5
+
++
++
++
++
Structure of the Board of Directors by term of membership
Structure of the Board of Directors
1
2
3
5
1
3
7
75 Here and elsewhere, personal information about members of PJSC FGC UES governing and control bodies is disclosed with their consent.
76 The information regarding the participation in management bodies of other organisations is listed as of 31 December 2019, and the experience of the members
of the Board of Directors is indicated for the last five years and at present.
- Up to 1 year
- From 4 to 7 years
- From 1 to 4 years
- More than 7 years
- Independent directors
- Non-executive directors
- Executive directors
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GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
Biographies of members
of the Board of Directors
Pavel Livinsky
Chairman of PJSC FGC UES Board of Directors
Board member since 28 June 2018.
GRI 102-23
Born in 1980.
Graduated from Lomonosov Moscow State University, majoring in Economics.
In 2003, he was awarded a master’s degree in Management.
EXPERIENCE:
Mr Livinsky has vast experience in the industry: from 2003 to 2013 he held
managerial positions in private and state energy companies. Since 2013,
he has held senior positions in the executive authorities of Moscow.
In 2017, he was appointed General Director, Chairman of the Management
Board of PJSC Rosseti, a parent company of PJSC FGC UES.
EXTERNAL APPOINTMENTS:
Chairman of the Board of Directors of PJSC MOESK, Chairman of the Board
of Directors of PJSC Lenenergo, member of the Board of Directors of PJSC
RusHydro, JSC SO UES, PJSC Rosseti, member of the Supreme Supervisory
Board of Public Organisation Russian Swimming Federation, member of RSPP,
member of the Board of Trustees of FSBEI HE NIU MEI, the Foundation of the
Cathedral of Christ the Saviour, the all-Russian public organisation Russian
Athletics, All-Russian Public Sports Organisation Modern Pentathlon Federation
of Russia, member of the Presidium of the Association RNC WEC, Association
RNC CIGRE; Member of the Supervisory Board of NP NTS UES; Association of
organisation of digital development Digital Energy, President and member of the
Presidium of the RPO Sports Federation of Fire-fighters and Rescuers.
MAIN JOB AS OF 31 DECEMBER 2019:
General Director, Chairman of the Management Board of PJSC Rosseti.
Holds no shares of PJSC FGC UES.
Pavel Grachev
Independent Director
Member of the Audit Committee 77
Member of the HR and Remuneration
Committee78
Board member from 27 June 2013
to 27 June 2014, re-elected in 2015.
Pavel Grebtsov
Non-Executive Director
Board member since 2019.
Born in 1976.
In 1994, he graduated from the Chelyabinsk Law
School of the Russian Ministry of Health, majoring
in Law and Accounting in the Social Security
System. In 1998, he graduated from Moscow State
University named after M. Lomonosov, majoring in
Management. In 2000, he graduated from Plekhanov
Russian University of Economics, majoring in
Management.
EXPERIENCE:
In the first half of 2010s, Mr Grebtsov held
management positions in the Moscow Regional
Energy Commission with the Moscow Government.
In February 2018, he was appointed Director of the
Tariff Policy Department, since October 2018 —
Deputy General Director for Economics of PJSC
Rosseti, since August 2019 — Acting Deputy
of the General Director for Economics and Finance
of PJSC Rosseti.
EXTERNAL APPOINTMENTS:
Member of the Board of Directors of PJSC IDGC
of Volga, JSC IGDS of North Caucasus, PJSC
MOESK, PJSC Rosseti South.
MAIN JOB AS OF 31 DECEMBER 2019: Acting
Deputy of the General Director for Economics and
Finance of PJSC Rosseti.
Holds no shares of PJSC FGC UES.
Born in 1973.
Graduated from the Saint Petersburg State
University and the University of Trieste (Italy),
majoring in Law. J.D.
EXPERIENCE:
Since 1997, Mr Grachev has held senior positions
in a number of international investment and law
firms. Since 2013, he has headed PJSC Polyus.
Over the years, he has gained extensive practical
experience in finance and corporate management.
EXTERNAL APPOINTMENTS:
Member of the Board of Directors of PJSC Polyus,
PJSC RusHydro; Chairman of the Board
of Directors of SL Zoloto LLC; General Director
of PJSC Polyus and MC Polyus LLC.
MAIN JOB AS OF 31 DECEMBER 2019:
General Director of PJSC Polyus
and MC Polyus LLC.
Holds no shares of PJSC FGC UES.
77 Resolution of the Board of Directors, Minutes No. 414 of 29 June 2018.
78 Resolution of the Board of Directors, Minutes No. 414 of 29 June 2018.
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GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
Igor Kamenskoy
Independent Director
Chairman of the Audit Committee
Chairman of the Investment Committee
Member of the HR and Remuneration Committee
Board member since 2016.
Andrey Murov
Executive Director
Chairman of the Management Board
Board member since 2013.
Born in 1970.
Born in 1968.
Graduated from Lenin Moscow State Pedagogical
Institute, majoring in Russian Language and
Literature.
Graduated from the Saint Petersburg State University,
majoring in Jurisprudence; underwent the Financial
Management retraining programme at the Interdisciplinary
Institute of Executive Staff Refresher Training and Retraining.
Doctor of Economic Science.
EXPERIENCE:
EXPERIENCE:
Mr Kamenskoy has significant experience
in corporate governance and strategic
management. He acted as a representative
of regional executive bodies in the Council of
Federation of the Russian Federation. Between
2002 to 2009, he held senior positions in
the supreme government bodies. Then Mr
Kamenskoy expanded his expertise in finance
and audit during his tenure as Chairman of the
Board of Directors and Managing Director of
Renaissance Capital Group companies.
EXTERNAL APPOINTMENTS:
Member of the Board of Directors of SC Soglasie
LLC, PJSC Aeroflot, PJSC Corporation VSMPO-
AVISMA.
MAIN JOB AS OF 31 DECEMBER 2019:
Managing Director of Renaissance Broker LLC.
Holds no shares of PJSC FGC UES.
Mr Murov has wide experience in managing infrastructural
organisations: from 2005 to 2012, he headed Pulkovo
airport, from 2012 to 2013 he was General Director,
member of the Management Board of JSC IDGC Holding
(since 4 April 2013 — PJSC Rosseti). Since 2013, he has
held the position of Chairman of the Management Board of
PJSC FGC UES. In 2015, he was elected as Chairman of
the Russian National Committee of the International Council
on Large Electric Systems (CIGRE).
EXTERNAL APPOINTMENTS:
Member of the Board of Directors of PJSC Rosseti,
PJSC Inter RAO, JSC SO UES; member of the Board
of Trustees of FSBEI HE NIU MEI, FSBEI HE SPbSU,
FSBEI HE SPbGEU; Member of the Supervisory Board
of the Association for the Development of International
Energy Research and Projects “Global Energy”; Non-Profit
Partnership “Scientific and Technical Council of the Unified
Energy System”; Member of the Central Council and Bureau
of the Central Council of the Russian Engineering Union LLC.
MAIN JOB AS OF 31 DECEMBER 2019:
Chairman of the Management Board of PJSC FGC UES.
Holds no shares of PJSC FGC UES.
Nikolay Roshchenko
Non-Executive Director
Board member since 2016.
Olga Sergeeva
Non-Executive Director
Board member since 2019.
Born in 1981.
Born in 1984.
Graduated from Tax Academy of the Russian
Federation, majoring in Jurisprudence.
EXPERIENCE:
In 2006, she graduated from the Plekhanov Russian
University of Economics, majoring in Economics
and Business Management. Construction services.
Qualification: Engineer Economist.
Mr Roshchenko has considerable competence
in jurisprudence and law: in 2003, he
was appointed head of the Jurisprudence
Department in the Russian department of tax,
in 2008, he was appointed as Head of the
Legal Department of the Association NP Market
Council. Since 2014, he has been the member
of the Management Board of Association NP
Market Council; since 2017 — Deputy Chairman
of the Management Board, member of the
Management Board of JSC TSA.
EXTERNAL APPOINTMENT:
Member of the Board of Directors of JSC TSA,
Chairman of the Board of Directors of JSC FSC.
MAIN JOB AS OF 31 DECEMBER 2019:
Head of the Legal Department of the Association
NP Market Council, member of the Management
Board of the Association NP Market Council;
Deputy Chairman of the Management Board,
Member of the Management Board of JSC TSA.
Holds no shares of PJSC FGC UES.
EXPERIENCE:
Ms Sergeeva has broad experience in finance and legal
regulation: from 2010 to 2017, she worked in the divisions
of the Department of Business Administration, she held
the position of Head of the Organisational and Legal
Department, was Deputy Head of the Department of Fuel
and Energy of Moscow and Deputy Head of the Department
of Housing and Communal Services of Moscow.
From 2018 to 2019, she held the position of Deputy General
Director — Chief of Staff of PJSC Rosseti.
In 2018, she became the member of the Management
Board of PJSC Rosseti. Since 2019 to the present day —
Chief Advisor of PJSC Rosseti.
EXTERNAL APPOINTMENTS:
Member of Supervisory Board, Chairman of All-Russian
industrial association of employers in energy sector
“Employers Russian Association of Energy”; member
of the Board of Directors of PJSC Lenenergo, JSC IGDS
of North Caucasus, JSC Non-State Pension Fund Otkritie,
PJSC MOESK; Chairman of the Board of Directors of
PJSC Posseti South, PJSC IDGC of North-West; Deputy
Chairman of the Board of Directors of PJSC Kubanenergo.
MAIN JOB AS OF 31 DECEMBER 2019:
Member of the Management Board,
Chief Advisor of PJSC Rosseti.
Holds no shares of PJSC FGC UES.
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GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
Sergey Sergeev
Non-Executive Director
Member of the Investment Committee
Board member since 2016.
Born in 1976.
Graduated from Novocherkask State Technical
University, majoring Industrial and Civil
Construction (1998); the Russian Presidential
Academy of National Economy, majoring
Economics, Management, Finance and Law
of Joint Stock Companies (2003).
Pavel Snikkars
Non-Executive Director
Chairman of the Strategy Committee
Member of the Investment Committee
Board member since 2016.
Born in 1978.
Graduated from the Siberian Academy of Public
Service, majoring in Public and Municipal
Administration (2000); the Siberian University of
Consumer Cooperation, majoring in Jurisprudence
(2005). Ph.D. in Economics.
EXPERIENCE:
EXPERIENCE:
Mr Sergeev has a wide range of competencies
in project management, capital construction
and strategic development, which he gained at
companies such as: JSC Joint-Stock Company
Transneft, Eastern Siberia-Pacific Ocean Project
Management Centre LLC, PJSC FGC UES,
PJSC Rosseti, PJSC Kubanenergo.
EXTERNAL APPOINTMENTS:
Board member of PJSC Lenenergo,
PJSC MOESK.
MAIN JOB AS OF 31 DECEMBER 2019:
General Director of PJSC Kubanenergo.
Holds no shares of PJSC FGC UES.
Mr Snikkars has worked in electric power industry
since 2005. He has a vast working experience
and skills in the wholesale and retail electricity and
capacity market. From 2010 to 2012, he was Deputy
Director General for Development and Deputy
Director General for Market Operations in JSC United
Energy Retailing Company. In 2012–2013, he was
a member of the Management Board of NP Market
Council for Organisation of Efficient Wholesale and
Retail Power and Capacity System. Since 2013,
he has worked as a civil servant — Director of the
Department of Electric Power Development of the
Ministry of Energy of Russia.
MAIN JOB AS OF 31 DECEMBER 2019:
Director of the Electric Power Industry Development
Department of the Ministry of Energy of Russia.
Holds no shares of PJSC FGC UES.
Ernesto Ferlenghi
Independent Director
Chairman of the HR and Remuneration Committee
Member of the Audit Committee
Member of the Strategy Committee
Board member from 2008 to 2014.
Elected to the Board again in 2016.
Born in 1968.
Vladimir Furgalsky
Non-Executive Director
Board member since 2019.
Born in 1977.
In 2000, he graduated from the St. Petersburg
State University of Economics and Finance,
majoring in Economics, majoring in Finance and
Credit, qualification is Economist.
Graduated from the University of Tor Vergata ( Rome),
Faculty of Mathematics, Physics and Natural Sciences.
EXPERIENCE:
EXPERIENCE:
Mr Ferlenghi has extensive experience in big
business: since 1998 he has worked in different
positions and in different regional offices of Eni. He is
well acquainted with the country specifics of work in
Russia: he was a member of the Boards of Directors
of the Russian companies Arktikgas, SeverEnergiya,
Eni Energy, Cyrus. President of the Association of
Italian Industrialists in Russia.
In addition, Mr. Ferlenghi is actively involved in the
development of Russian-Italian dialogue not only
in business, but also in social and cultural areas:
in 2019 he was appointed Co-chairman of the
Russia-Italy Dialogue Forum.
MAIN JOB AS OF 31 DECEMBER 2019:
Executive Vice President of Eni for Market
Development in Russia and Central Asia, General
Director of Eni Energhia LLC, Chairman of the Energy
Committee of the Association of European Businesses
(AEB), President of the Association of Italian
Industrialists «Confederation of Italian Industry».
Holds no shares of PJSC FGC UES.
Mr. Furgalsky has extensive experience in
corporate governance issues: in 2010–2014
he held the positions of Director for Corporate
Governance and Strategic Communications,
Deputy Chairman of the Management Board of
PJSC FGC UES. Since 2018, he has worked at
PJSC Rosseti, held the position of Chief Advisor
and is currently Deputy General Director for
Corporate Governance. He has vast working
experience in state institutions — in the Ministry
of the Russian Federation for North Caucasus
Affairs and in the Russian Energy Agency
of the Ministry of Energy of Russia.
EXTERNAL APPOINTMENTS:
Board member of PJSC IDGC of Siberia.
MAIN JOB AS OF 31 DECEMBER 2019:
Deputy General Director for Corporate
Governance of PJSC Rosseti.
Holds no shares of PJSC FGC UES.
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GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
GOVERNING BODIES OF THE COMPANY
[THE COMPANY’S BOARD OF DIRECTORS]
Composition of the Board
of Directors valid from 28 June 2018 to 26 June 2019*
Pavel LIVINSKY
Chairman of PJSC FGC UES
Board of Directors
Pavel GRACHEV
independent director
Andrey DEMIN
non-executive director
General Director, Chairman of the Management of PJSC Rosseti
Born in 1980
Education: University degree
President of PJSC Polyus
Born in 1973
Education: University degree, J.D
Member of the Management Board of PJSC Rosseti
Born in 1974
Education: University degree
Igor KAMENSKOY
independent director
Managing Director of Renaissance Broker LLC
Born in 1968
Education: University degree
Egor PROKHOROV
non-executive director
Deputy General Director for Finance of PJSC Rosseti
Born in 1982
Education: University degree, PhD in Economics
Nikolay ROSHCHENKO
non-executive director
Member of the Management Board, Head of the Legal Department
of the Association NP Market Council
Born in 1981
Education: University degree
Andrey MUROV
executive director
Chairman of the Management Board of PJSC FGC UES
Born in 1970
Education: University degree, Doctor of Economics
Sergey SERGEEV
non-executive director
General Director of PJSC Kubanenergo
Born in 1976
Education: University degree
Pavel SNIKKARS
non-executive director
Director of the Department of Electric Power Industry Development
of the Ministry of Energy of Russia
Born in 1978
Education: University degree, PhD in Economic
Oksana SHATOKHINA
non-executive director
Deputy General Director of PJSC Rosseti
Born in 1975
Education: University degree
Ernesto FERLENGHI
independent director
Executive Vice President of Eni on Market Development
in Russia and Central Asia of Eni S.p.A
Born in 1968
Education: University degree
*The positions are as at the date of election
Introduction to the post
of new members of the Board of Directors
Following the results of the Annual General Meeting of Shareholders in 2019, three new members of the Board
of Directors were elected to the Company’s Board of Directors (Pavel Grebtsov, Olga Sergeeva, Vladimir
Furgalsky). The current policies of the Company provide for a number of activities for new members of the Board
of Directors in order to involve them in the work of the Board of Directors and its committees as soon as possible,
to become acquainted with production and financial-economic activities, which ultimately ensures more efficient
performance of the Board’s functions.
As part of these procedures, the following events were organised for new Board members:
providing information on key management and activity issues of the Company — development
strategy, long-term development programme, Company’s business model, budget and investment
programme, risk management and internal control system, controlled organisations, management
and motivation system, organisational structure, main operational and financial results of the last
three years;
referral of internal documents and key policies of the Company regulating relations, control and
supervision over their implementation, which is the responsibility of the Board of Directors;
introductory meetings with the Company’s management and its material affiliated companies;
ability to visit the Company’s headquarters, as well as its production divisions and facilities;
information on obligations and authorities of the Board of Directors members, their status,
anticipated time expenditure, and necessary resources to performing their duties on the Board;
information on key events involving the Company’s Board members planned for 2019–2020.
Liability insurance
of directors and officials
With the scale of the Company’s activities, changes in the regulatory environment, number of contractors
and a comprehensive nature of contractual relations taken into account, a practice for liability insurance
of directors and officials both of the Company and its subsidiaries (D&O insurance policy) was introduced.
The liability insurance is aimed at:
protecting directors and officials in case of claims submitted by third parties;
guaranteed protection of Company shareholders’ proprietary interests and ensuring
a source of reimbursement for possible Company losses and/or insured parties
in insurance cases.
Main insurance parameters and the extent of insurance correspond to the size of business and possible
risks, as well as the liability insurance practice of other companies working in the industry.
Main parameters of insurance conditions under the D&O policy
Period
June 2017– June 2018
June 2018–December 2019
2020
Insurer
Contract price, RUB
Insured parties
Liability limit, incl.
General limit
Additional limit
JSC SOGAZ
4,700,000
JSC SOGAZ
5,760,000
JSC SOGAZ
4,950,000
Members of the Board of Directors and executive bodies,
management of the Company and its subsidiaries.
RUB 3 bln
For independent directors — RUB 50 million, but no more than RUB 250 million
for all independent directors
Insurance geography
Global
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CORPORATE SECRETARY
COMMITTEES OF THE BOARD OF DIRECTORS
Corporate Secretary
The position of Corporate Secretary was introduced in the Company in 2015.
Appointment and termination of the Company’s Corporate Secretary falls within the exclusive competence
of the Board of Directors with preliminary consideration by its HR and Remuneration Committee.
At the same time, the Corporate Secretary is appointed separately during the election of new members
to the Board. This is another means of control of the Corporate Secretary’s activities and assessment
of performance to the Company’s benefit, with the importance of duties taken into account.
The Corporate Secretary functionally reports to the Board of Directors, and administratively — due
to specifics of the Russian Labour Code — to the Chairman of the Management Board. In addition,
the Board of Directors is responsible for motivation, remuneration and encouragement of the Corporate
Secretary, as well as approval of the Regulation on the Corporate Secretary, which ensures
independence of the Company’s management and efficiency of the Corporate Secretary’s work.
The Regulation on the Corporate Secretary of PJSC FGC UES was approved by the resolution
of the Board of Directors of 21 July 2015 (with further revisions).
Aleksey Ozherelyev performs functions of the Company’s Corporate Secretary.
Aleksey Ozherelyev
Born in 1986 in Moscow.
Graduated from the Moscow State University of Economics, Statistics,
and Informatics in 2006, majoring in Finance and Credit.
Work experience
2016–today
Corporate Secretary of PJSC FGC UES.
2017–today
Head of the Directorate for Operation of the Management Board, the Board of Directors, and
Shareholder and Investor Relations under the Department of Corporate Governance and
Shareholder and Investor Relations with PJSC Rosseti.
2013–2016
Head of the Directorate for Operation of Management Bodies of PJSC Rosseti.
2011–2013
Deputy Head of the Corporate Governance Department with PJSC FGC UES.
2009–2011
Advisor, Deputy Head of the Department, Head of the Department of Economic Regulation
and Property Relations with FEC under the Ministry of Energy of Russia.
Holds no shares of PJSC FGC UES, or any other shares or participation interest with any of its affiliates.
No transactions with the Company’s securities throughout the year or loans granted by the Company were
registered.
Committees
of the Board of Directors
Committees are established under the Board of Directors of PJSC FGC UES. They perform as specialised
units whose goal is to provide for a more detailed approach to certain activities of the Board and prepare
recommendations for its directors. The committees report to the Company’s Board of Directors.
Over the recent years and in the reporting period, four committees carried out activities under the Board of
Directors (hereinafter, the “Committees”):
Audit Committee;
HR and Remuneration Committee;
Strategy Committee;
Investment Committee.
When selecting members of the Committees, the Company ensures compliance with the requirements
applied to issuers, whose shares are included in the quotation list of the first level of the Moscow Exchange,
recommendations of the Russian Corporate Governance Code, as well as addresses the need to involve
representatives of the key participants’ interests of the Company’s management system (shareholders,
external experts, managers) in activities of certain committees.
Approach to committee membership
With a view to ensuring the efficient work of and preparation of well-considered and objective resolutions /
recommendations by the Committees, the Company consistently uses the following main approaches:
the Audit Committee and the HR and Remuneration Committee are composed solely of independent
directors, who have the necessary competencies and experience, no conflicts of interest regarding items
under consideration, and do not hold the position of Chairman of the Board of Directors;
workload of the Board members as the Company’s directors, as well as their external appointments
and objective ability to make educated decisions on agenda items are taken into account;
existence of specialised committees dealing with material issues, essential to the Company’s sustainability
and development (investment, key projects);
the Committees are remunerated and provided with necessary resources at the Company’s expense;
external experts are involved in the Committees’ activities (both on a paid and free-of-charge basis);
possibility to review items not only in the framework of the Board’s recommendations, but in certain areas
the Committees are responsible for;
the Committees are managed exclusively by the Board members and report to them on a regular basis.
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COMMITTEES OF THE BOARD OF DIRECTORS
COMMITTEES OF THE BOARD OF DIRECTORS
Management of the Committees’ activities
Meetings of HR and Remuneration committee
Meetings of Audit committee
When assessing the Committees’ efficiency, the following elements are used as our core metrics:
balance in the composition;
number and categories of meetings and items under consideration;
quality of planning and arrangement of the Committees’ activities;
compliance with recommendations and generally approved management practices.
The Committees’ structure
12
10
10
1
3
1
9
2
8
2
5
4
18
14
1
1
19
3
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
Categories of Committee members
Gender composition
- In presentia
- In absentia
- In presentia
- In absentia
25 %
6 %
53 %
16 %
2017
24 %
6 %
26 %
6 %
61 %
55 %
9 %
2018
13 %
2019
- Independent director
- Representatives of shareholdersor
- Representatives of the management
- Non-executive director
6 %
3 %
7 %
94 %
97 %
93 %
2017
2018
2019
- Men
- Women
Information on voting
at the Committees’ meetings
In the reporting year, the Committees considered 128 items at 65 meetings. With this, the share of meetings
in praesentia made up 32%, and the share of items considered at such meetings reached 48%.
Committee
Audit Committee
HR and Remuneration
Committee
Strategy Committee
Investment Committee
Affirmative votes
100 %
100 %
Dissenting votes
Abstained
–
–
–
–
97.5 %
0.5 %
2 %
96.55 %
1.42 %
2.03 %
* Information is provided according to the voting results recorded in the Committees’ meeting minutes
Meetings of Strategy committee
Meetings of Investment committee
10
10
8
9
8
7
4
8
3
5
4
12
6
7
8
10
8
9
3
6
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
- In presentia
- In absentia
- In presentia
- In absentia
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179
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
COMMITTEES OF THE BOARD OF DIRECTORS
COMMITTEES OF THE BOARD OF DIRECTORS
Report on the Audit Committee’s performance
In the reporting year, PJSC FGC UES Management Board considered the following most important items
The role of the Audit Committee is to assist the Board of Directors in providing efficient control of the Company’s
financial and business operations.
The committee performs important functions in the Company’s corporate governance system in terms of
monitoring the completeness, accuracy and reliability of financial statements, the efficiency and reliability of the
risk management, internal control and corporate governance system, as well as ensuring the objectivity and
independence of the internal and external audit functions.
With each year, the role of the Audit Committee in the management
system of any company becomes more prominent, while it holds a
very special place in a public company. Legal changes, due to which
Russian public companies will be obliged to establish audit com-
mittees from July 2020, further underline the importance of this key
element of the check-and-balance system, along with control of core
business processes and risk management, the responsibility of the
Board of Directors.
Facing new challenges of the time, in 2019, we paid extra attention
to issues related to internal control and risk management, as well as
internal audit. On top of this, we carefully monitor changes in the in-
dustry that affect internal control, compliance development, and social
responsibility in order to choose the right path for the Company and
adjust our processes in due time.
In the reporting year, the Committee’s meetings in praesentia were
conducted with Committee experts, representatives of the Internal
Audit Department, the management, and external auditors invited by
the Company.
We believe that we take the necessary measures to allow for efficient
coordination of risk management, internal control, compliance and
ensure development and operation of the Company with the continu-
ously changing environment taken into account.
I. Kamenskoy
Chairman of the Audit Committee, independent director
Audit
Committee
I. Kamenskoy
(Chairman)
P. Grachev
E. Ferlenghi
Independent
Director
Chairman of the
Board of Directors
Experience/
background in the
field of finance
+
+
+
-
-
-
+
+
+
Structure of items, reviewed
by the Audit Committee in 2019
3 %
26 %
26 %
In 2019, the Audit Committee held 22 meetings
(3 of which were held in the form of joint attendance),
and 32 items were considered.
45 %
- Organisation
- Reporting, audit
and revisions
- RMS and IC
- Compliance
Key areas of the Audit Committee’s
activities
Control of the accounting
(financial) statements drafting;
risk management, internal
control and corporate
governance;
internal and external audit;
anti-fraud, compliance;
Items considered in 2019
Consideration of financial statements as per IFRS and RAS;
consideration of audit reports on annual and interim financial statements provided
by the Company’s external auditors;
consideration of external auditors of financial statements as per RAS and IFRS;
consideration of regular reports on activities of the Internal Audit Department;
consideration of regular reports on risk management;
consideration of propositions related to optimisation of the procedure for drafting and
disclosing the Company’s financial statements;
preliminary consideration of all the Company’s internal documents;
development of reports on compliance with internal documentation requirements.
Report on the HR
and Remuneration Committee’s performance
The HR and Remuneration Committee is responsible for ensuring the necessary expertise in such areas
as motivation and nomination, as well as development and implementation of the personnel continuity policy.
HR and
Remuneration
Committee
E. Ferlenghi (Chairman)
P. Grachev
I. Kamenskoy
Independent
Director
Chairman
of the Board
of Directors
Structure of items, reviewed
by the HR and Remuneration Committee in 2019
31 %
44 %
+
+
+
-
-
-
In 2019, the HR and Remuneration Committee conducted
11 meetings (2 of which were held in the form of joint
attendance), and considered 13 items.
25 %
- Organisation
- Nomination
- Motivation and KPIs
Key areas of the HR and Remuneration Committee’s activities
Items considered in 2019
Development of policies on remuneration of the Board members and senior
Preliminary consideration of internal
officials, and supervision of their implementation and compliance;
preliminary assessment of the Company’s key employees at the end
of the year;
documents, providing for conditions
of labour and bonus payments
for senior managers;
preparation of provisions of labour contracts concluded with members
consideration of reports on
of the Management Board and the Company’s key employees;
development of recommendations for the Board of Directors in terms
of determination of the remuneration amount and bonus system
for the Company’s Corporate Secretary;
achievement of quarterly and annual
KPIs by the Company’s top
management;
approval of candidates
assessment of performance of the Board of Directors and its members,
to the Company’s Management Board;
selection of priority areas to strengthen the Board’s work;
consideration of approaches
preparation of recommendations for shareholders regarding election
to the personnel continuity planning;
to the Board of Directors;
recommendations to the introduction
development of the continuity policy for top management;
planning on staff appointment (employee pool) of senior officials, drafting
of professional standards into
the Company’s operations.
recommendations for the Board of Directors regarding candidates
for the positions of senior officials and Corporate Secretary.
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COMMITTEES OF THE BOARD OF DIRECTORS
COMMITTEES OF THE BOARD OF DIRECTORS
Report of the Strategy Committee
GRI 102-26
The role of the Strategy Committee is to assist the PJSC FGC UES Board of Directors in improving
the Company’s performance efficiency in the long term.
GRI 102-22
Composition of the Strategy Committee
Elected by
the
resolution
of the Board
of Directors
dated 26
September
2018
Elected
by the
resolution
of the Board
of Directors
dated
30 July
2019
Elected
by the
resolution
of the Board
of Directors
dated 12
November
2019
P. Snikkars, Chairman of the Strategy Committee, Member of the Board
of Directors of PJSC FGC UES, Director of the Department for Development
of Electric Power Industry of the Ministry of Energy of Russia
A. Kaplun, Director of the Department of Natural Monopolies Relations
of MC Polyus LLC
A. Germanovich, General Director of AG Ventures LLC
B. Livshits, Deputy Head of the Competitive Pricing Development Department
of the Association NP Market Council
E. Prokhorov, Acting Deputy of the General Director of Strategy of PJSC Rosseti
L. Romanovskaya, Deputy General Director for Engagement with Public
Authorities of PJSC Rosseti
V. Furgalsky, Deputy General Director for Corporate Governance of PJSC Rosseti
M. Tikhonova, Deputy Chairman of the Management Board of PJSC FGC UES
P. Grebtsov, Acting Deputy of the General Director of Economics and Finance
of PJSC Rosseti
A. Erdyniev, Deputy Director of the Electric Power Industry Development
Department of the Ministry of Energy of Russia
E. Ferlenghi, Member of the Board of Directors of PJSC FGC UES, President
of the Association of the Italian Industrialists “Confederation of Italian Industry”
V. Yavorsky, General Director of Tori-Audit LLC
E. Olkhovich, Deputy General Director for Strategic Development of PJSC Rosseti
A. Gabov, Acting Deputy Director of the Department for State Regulation
of Tariffs, Infrastructure Reforms and Energy Efficiency of the Ministry
of Economic Development of the Russian Federation
S. Lebedev, Director of the Strategic Development Department of PJSC Rosseti
K. Mikhailenko, Chief Advisor of PJSC Rosseti
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
In 2019, the Strategy
Committee conducted
15 meetings
(7 of which were held
in the form of joint
attendance), and
29 items were
considered.
3 %
32 %
12 %
Structure of items, reviewed
by the Strategy Committee in 2019
- Organisation
- Determination and control of the strategy implementation
- Dividend and credit policies
- Business planning
- Control over subsidiaries and affiliates
6 %
47 %
Key areas of the Strategy Committee’s activities
Items considered in 2019
Consideration of strategic areas and the Long-Term Development Programme
Consideration of propositions
of the Company, long-term financial model and reports on achieved results;
consideration of items on business planning and reports on implementation
of the Business Plan;
assessment of M&A projects;
consideration of issues related to the dividend policy;
consideration of key issues related to activities of the Company’s affiliates;
consideration of issues related to the Company’s performance improvement;
consideration of issues regarding the PJSC FGC UES Group corporate
structure, including participation (cessation of participation in other
organisations);
consideration of material transactions.
on updating the Long-Term Development
Programme;
consideration of issues on improving
the Procurement Policy;
consideration of transactions
to be approved by the Board of Directors;
non-core assets management;
participation in other organisations.
Report of the Investment Committee
The role of the Investment Committee is to assist the Board of Directors in improving and developing
the Company’s investment policy.
GRI 102-22
Composition of the Investment Committee
Elected
by the resolution
of the Board of
Directors dated
26 September
2018
Elected
by the
resolution
of the Board of
Directors dated
11 March 2019
Elected
by the resolution
of the Board
of Directors
dated
30 July 2019
Elected by the
resolution of the
Board of
Directors dated
11 September
2019
I. Kamenskoy, Chairman of the Investment Committee,
Member of the Board of Directors of PJSC FGC UES,
Managing Director of Renaissance Broker LLC
M. Bychko, Director of the Capital Construction Department
of PJSC Rosseti
V. Gritsenko, Member of the Presidium of NP OPORA ROSSII
A. Ilienko, Member of the Management Board,
Director for UES Development of JSC SO UES
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
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ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
COMMITTEES OF THE BOARD OF DIRECTORS
COMMITTEES OF THE BOARD OF DIRECTORS
GRI 102-22
In 2019, the Investment Committee conducted 17 meetings (9 of which were held in the form of joint
attendance), and 36 items were considered.
Elected
by the resolution
of the Board
of Directors dated
26 September
2018
Elected
by the resolution
of the Board
of Directors
dated 11 March
2019
Elected
by the resolution
of the Board
of Directors
dated 30 July
2019
Elected
by the resolution
of the Board of
Directors dated
11 September
2019
A. Kaplun, Director of the Department of Natural Monopolies
Relations of MC Polyus LLC
V. Kiselev, Chairman of the Consumer Council
of the Government Commission for the Electric Power Industry
A. Mayorov, Deputy General Director —
Chief Engineer of PJSC Rosseti
A. Molsky, First Deputy Chairman of the Management Board
of PJSC FGC UES
L. Neganov, Acting Deputy of the General Director
of Investment Activities and Capital Construction
of PJSC Rosseti
A. Pyatigor, Deputy General Director of Service Sales
of PJSC Rosseti
I. Selivakhin, Financial Director of JSC TSA,
Advisor of the Chairman of the Management Board
of the Association NP Market Council
S. Sergeev, Member of the Board of Directors
of PJSC FGC UES, Deputy General Director
of Capital Construction of PJSC Rosseti
P. Snikkars, Member of the Board of Directors of PJSC FGC UES,
Director of the Department for Development of the Electric Power
Industry of the Ministry of Energy of Russia
D. Akopyan, Deputy General Director of the PJSC IDGC
of South branch — Rostovenergo
D. Gvozdev, Chief Engineer of PJSC MOESK
O. Tokarev, Deputy Director of the Machine Tool Building
and Investment Machine-Building Department
of the Ministry of Industry and Trade of Russia
R. Filimonov, Member of the Management Board,
First Deputy Chairman of the Management Board
of PJSC FGC UES (since 11 March 2019,
he is not a member of PJSC FGC UES’s Management Board
and Investment Committee)
S. Podlutsky, Director of the Investment Department
of PJSC Rosseti
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Structure of items, reviewed by the Investment Committee in 2019
5 %
10 %
10 %
8 %
- Organisation
- Adjustment of the investment programme
- Implementation of individual investment
programmes
- Implementation of the investment programme
- Approval of internal documents
- Technological connection
22 %
45 %
Key areas of the Investment Committee’s activities
Items considered in 2019
Consideration of the investment programme and reports
Adjustment of the Company’s investment
on its implementation;
programme;
consideration of the innovative development, R&D,
consideration of the infrastructure upgrade plan,
and technological development programmes;
development of the UES of Russia and programmes
of the distribution grids development;
as well as reports on the programme
implementation for development of grid facilities;
consideration of items related to ensuring
consideration of the maintenance programme and reports
technological connection;
on its implementation;
consideration of reports on implementation
consideration of certain key operational projects.
of key projects
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GOVERNING BODIES OF THE COMPANY
[EXECUTIVE GOVERNANCE BODIES]
GOVERNING BODIES OF THE COMPANY
[EXECUTIVE GOVERNANCE BODIES]
Executive Governing Bodies
The governance of the Company’s current activities is carried out by collegial and sole executive bodies,
namely the Management Board and the Chairman of the Management Board of PJSC FGC UES.
MANAGEMENT BOARD
Collegial executive body
CHAIRMAN OF THE MANAGEMENT BOARD
Sole executive body
Functions
Ensuring the effective achievement of the Company’s goals and implementation of development strategies.
Accountability
Reporting to the General Meeting of Shareholders and the Board of Directors.
Appointment /
election procedure
Candidates to the Management Board are suggested
by the Chairman of the Company’s Management Board and
elected (appointed) by the Board of Directors.
Elected by the General Meeting
of Shareholders.
Term of office
3 years
5 years
For subordination and efficient monitoring of the executive bodies’ activities, in accordance with the
Company’s Articles of Association, the following matters concerning members and the Chairman of the
Management Board are reserved for the Board of Directors:
election of members to the Company’s Management Board (except the Chairman)
and early termination of their powers;
application of disciplinary measures against the Chairman of the Company’s
Management Board and incentives in accordance with the applicable law;
determination of remuneration amounts and compensations payable to the
Chairman and members of the Company’s Management Board;
coordination of positions in management bodies of other companies, as well as
other paid positions in other companies.
Report on the Management Board’s performance
In 2019, the Management Board of PJSC FGC UES held 73 meetings (1 in person and 72 in absentia),
and 328 items were considered.
Number of meetings held
by PJSC FGC UES’ Management Board
Number of items reviewed
by PJSC FGC UES’ Management Board
78
81
73
433
425
328
In the reporting year, PJSC FGC UES Management Board considered the following most important items
Subject
Item
Production activity
The annual report on technological and price audits of investment projects of PJSC FGC UES
in 2018 was considered.
Reports on the status and progress of a number of investment projects were considered.
The consolidated five-year work plan and the budget for the maintenance and repair
of PJSC FGC UES for the period 2020–2024 were considered.
The Rules for Drafting and Implementing Pilot Projects of the Digital Transformation
2030 Concept in PJSC FGC UES were considered.
The programme of energy saving and energy efficiency improvement of PJSC FGC UES
for the period 2020–2024 was considered.
Social and HR Policy
The Programme of Establishing a Pool of Corporate Housing of PJSC FGC UES was
considered.
Amendments were made to the Regulation on Charity Support of Individuals from
PJSC FGC UES and the Regulation on Charity Support of Legal Entities from PJSC FGC UES.
Amendments were made to the Regulation on PJSC FGC UES’s Sponsorship.
The Programme of Insurance Protection of PJSC FGC UES for 2020 was considered.
The item related to choosing the Best Branch of the Federal Grid Company —
MPS and the Best Facility of the Federal Grid Company — EMPS was considered.
Financial and
economic activities
PJSC FGC UES’s report on performance on capital markets and interaction
with rating agencies in 2018 was considered.
Results of the fixed annual account of actual debt limits, as well as debt limits expected
in 2019 were reviewed.
Reports on the implementation of PJSC FGC UES’s Business Plan were considered.
Internal control and risk
management
The Action Plan for Managing Key Operational Risks in 2019 was approved.
The report of PJSC FGC UES’s internal auditor on the assessment of efficiency of the Company’s
internal control and risk management system based on 2018 results was considered.
The Action Plan for Developing and Improving the Risk Management System
of PJSC FGC UES was considered.
The report of the Chairman and members of PJSC FGC UES’s Management Board on the organisation,
functioning and efficiency of the risk management system in 2018 was considered.
The report of the Chairman and members of PJSC FGC UES’s Management Board
on the organisation and functioning of the internal control system in 2018 was reviewed.
The report on PJSC FGC UES’s key operational risks in 2018 was considered.
Quarterly reports on operational risks with a “Critical” rating were considered.
2017
2018
2019
2017
2018
2019
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GOVERNING BODIES OF THE COMPANY
[EXECUTIVE GOVERNANCE BODIES]
GOVERNING BODIES OF THE COMPANY
[EXECUTIVE GOVERNANCE BODIES]
Biographies of members of PJSC FGC UES’s Management Board
Composition of the Management Board
In accordance with the Regulation on the Management Board of PJSC FGC UES, the quantitative
composition is determined by resolution of the Board of Directors of PJSC FGC UES. As of 31 December
2019, the Management Board of PJSC FGC UES included 6 members.
All persons forming PJSC FGC UES’s Management Board have the required experience and
competences to perform their functions.
Term of service on the Management Board of PJSC FGC UES
50 %
- From 1 to 4 years
- More than 4 years
50 %
Andrey Murov
Chairman of the Management Board, Member
of the Board of Directors.
Dmitry Vodennikov
Deputy Chairman of the Management Board —
Chief Engineer.
Areas of responsibility:
Areas of responsibility:
management of the Company’s day-to-day operations;
organisation of work of the Management Board.
arrangement of operations and maintenance
production supervision.
Management Board member since 2012.
Management Board member since 2017.
Born in 1970.
Born in 1974.
Graduated from the Saint Petersburg State University, majoring
in Jurisprudence; underwent the Financial Management
retraining programme at the Interdisciplinary Institute of
Executive Staff Refresher Training and Retraining. Doctor of
Economic Science.
EXPERIENCE:
Mr Murov has a vast experience in managing
infrastructure organisations: in 2005–2012, he headed
the Pulkovo Airport; in 2012–2013, performed functions
of the General Director, member of the Management
Board of JSC IDGC Holding (since 4 April 2013 — JSC
Rosseti); since 2013 — Chairman of the Management
Board of PJSC FGC UES. In 2015, he was elected as
Chairman of the Russian National Committee of the
International Council on Large Electric Systems (CIGRE).
EXTERNAL APPOINTMENTS:
Member of the Board of Directors of PJSC Rosseti, PJSC
Inter RAO, JSC SO UES; member of the Board of Trustees of
FSBEI HE NIU MEI, FSBEI HE SPbSU, FSBEI HE SPbGEU;
Member of the Supervisory Board of the Association for the
Development of International Energy Research and Projects
“Global Energy”; Non-Profit Partnership “Scientific and
Technical Council of the Unified Energy System”; Member
of the Central Council and Bureau of the Central Council
of the Russian Engineering Union LLC.
Holds no shares of PJSC FGC UES.
Graduated from Kurgan State University, majoring
in Automation of Technological Processes and Production.
EXPERIENCE:
Mr Vodennikov started working at electric grid
companies in 1996, where he was an engineer
of the relay protection and automation service at
the Western Electric Grids «Kurganenergo». Six
year later, he was transferred as the head of the
substation service. In 2006, he moved to the MPS
West Siberia as the Deputy General Director for
Development and Customer Engagement. In January
2011, he was appointed as the First Deputy General
Director — Chief Engineer of MPS West Siberia.
In 2015, he was appointed General Director of JSC
FGC UES of MPS West Siberia, and in 2017, —
the Chairman of the Management Board,
and Chief Engineer, of PJSC FGC UES.
EXTERNAL APPOINTMENTS:
Chairman of the Board of Directors of JSC Tomsk Trunk
Grids.
Holds no shares of PJSC FGC UES.
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ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
GOVERNING BODIES OF THE COMPANY
[EXECUTIVE GOVERNANCE BODIES]
GOVERNING BODIES OF THE COMPANY
[EXECUTIVE GOVERNANCE BODIES]
Aleksandr Zagaratsky
First Deputy Chairman of the Management Board
Aleksey Molsky
First Deputy Chairman of the Management Board
Sergey Terebulin
Deputy Chairman of the Management Board
Maria Tikhonova
Deputy Chairman of the Management Board
Management Board member since 2016.
Born in 1978.
Born in 1980.
Areas of responsibility:
Areas of responsibility:
staff management and development;
corporate and strategic management;
legal support;
document management;
administrative and economic support;
property management;
management of communications, public relations
development and customer relations;
innovative development, digitalisation and IT;
investments, design and land relations;
procurement management.
and public authorities’ interactions.
Management Board member since 2014.
Born in 1980.
Born in 1976.
Graduated from St. Petersburg Law Institute
of the General Prosecutor Office, majoring in Law.
Graduated from St. Petersburg Institute for Management
and Economics, majoring in State and Municipal
Management. Ph.D. in Economics.
EXPERIENCE:
Mr Zaragatsky has significant experience
in legal regulation: in 1999–2013, he worked
in St. Petersburg Legislative Assembly, where he
started as deputy assistant and then was promoted
to Chief of Staff of the Chairman. In 2013, he was
appointed the Deputy Chairman of the Management
Board of PJSC FGC UES, and in 2016 —
First Deputy Chairman of the Management Board
of PJSC FGC UES.
Holds no shares of PJSC FGC UES.
EDUCATION:
Graduated from Moscow Power Engineering Institute,
majoring in Electric Energy Systems and Grids,
and Economics and Electric Energy Company Management.
EXPERIENCE:
Mr Molsky started his career in 2003. In 2006,
he joined JSC FGC UES as Deputy Chief Engineer,
and then became the First Deputy Chairman
of the Management Board. In 2016, he was elected
a member of the Management Board
of PJSC FGC UES.
EXTERNAL APPOINTMENTS:
Chairman of the Supervisory Board of JSC IPS
SakRusenergo, member of the Supervisory Board
of the Association NP Market Council, member of the Board
of Directors of CJSC TaigaEnergoStroy, member of the
Board of Directors of JSC Institute ENERGOSETPROEKT,
Chairman of the Board of Directors of JSC Centre
for Engineering and Construction Management of UES.
Holds no shares of PJSC FGC UES.
Areas of responsibility:
Areas of responsibility:
economics, finance and subsidiary management
corporate and strategic management
Management Board member since 2016.
Management Board member since 2013.
EDUCATION:
Graduated from the Financial Academy under
the Government of the Russian Federation, majoring
in Finance and Credit. Ph.D. in Economics.
EDUCATION:
Volga-Vyatka Academy of Public Service, majoring
in Public and Municipal Administration, the Higher School
of Economics with MBA Finance. Ph.D. in Economics.
EXPERIENCE:
EXPERIENCE:
Mr Terebulin has a prominent working experience
in the field of finance and audit. In 2001–2006,
he held top positions at financial and economic
departments of JSC RAO UES of Russia. In
2006–2016, he was the Director of the Corporate
Finance Department at PJSC RusHydro. In 2016,
Mr Terebulin became a member of the Management
Board of PJSC FGC UES and was appointed
Deputy Chairman of the Management Board
of PJSC FGC UES.
EXTERNAL APPOINTMENTS:
Member of the Supervisory Board of JSC IPS
SakRusenergo.
Holds no shares of PJSC FGC UES.
Ms Tikhonova has significant experience
in the energy field. In 2005–2008, she worked
in the Federal Energy Agency where she moved up
from senior specialist to deputy head of the property
relations department at FEC. In 2008–2012, she held
top positions in the Ministry of Energy
of Russia, including the Director of the Department
for Corporate Governance, Pricing Conditions
and Auditing in Fuel and Energy Industries. In 2013,
she was appointed the Chairman of the Management
Board of PJSC FGC UES and elected as a member
of the Management Board of PJSC FGC UES.
EXTERNAL APPOINTMENTS:
Since 2019, Board Member of JSC Elektromagistral.
Holds no shares of PJSC FGC UES.
Since the beginning of the reporting year and until 11 March 2019, Roman Filimonov also was a member of
the Management Board. His authorities were terminated by the resolution of the Board of Directors
of 11 March 2019.
In the reporting year, members of the Company’s Management Board held no shares and bonds of the
Company or its affiliates, and made no transactions with the mentioned securities. In the reporting year,
members of the Company’s Management Board were in no way indebted to the Company.
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ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
REMUNERATION SYSTEM FOR GOVERNING BODIES
REMUNERATION SYSTEM FOR GOVERNING BODIES
Remuneration system
for governing bodies
GRI 102-35
The remuneration policy was developed on the basis of the principles and recommendations
of the Bank of Russia Corporate Governance Code, taking into account the Company’s remuneration
and compensation practice.
The procedure for determining remuneration and compensation to members of the Board of Directors, as well as
the payment procedure, is set forth in the Regulations on Payment of Remuneration and Compensation to Members
of the Board of Directors of PJSC FGC UES.79
The practices applied in the Company for determining remuneration and compensation payable to members
of the Board of Directors comply with the transparency and reporting principles and consider the role of the above-
stated persons in performance of the Company.
The procedure for remuneration of persons included in committees of the Board of Directors, but not members
of the Board of Directors, is determined by the Regulations on Payment of Remuneration and Compensation
to Members of the Committees of the Board of Directors of PJSC FGC UES.80
The Regulations on the Conditions of Labour Contracts and Determination of the Amount of Remuneration
and Compensation Payable to Senior Management of JSC FGC UES81 regulate the system of remuneration
of the Chairman of the Management Board and members of the Company’s Management Board.
Operation of the HR and Remuneration Committee in monitoring and improving the remuneration system provides
for increased efficiency and transparency of the existing policy.
The Company does not engage consultants to determine the amount of remuneration and compensation payable
to members of the Board of Directors and members of the Management Board.
In 2019, no amendments were made to the Company’s remuneration policies.
Remuneration of Members of the Board of Directors
Key aspects of the remuneration system for members of the Board of Directors:
remuneration is paid as a lump-sum payment following the results of work of the Company’s Board members
for the corporate year since their election until termination of their powers;
the decision to pay remuneration is made at the Company’s Annual General Meeting of Shareholders.
The Regulations on Payment of Remuneration and Compensation to Members of the Board of Directors of PJSC FGC
UES also provide for a number of conditions under which remuneration is not paid in the following cases:
a member of the Company’s Board of Directors skips more than half of meetings of the Board of Directors
held during their membership on the Board of Directors;
lack of net profit for the financial year preceding the year of payment of remuneration;
a member of the Board of Directors of the Company is simultaneously a member of the Management Board
of the Company and/or the Chairman of the Management Board of the Company;
a member of the Company’s Board of Directors is a person in respect of whom the laws of the Russian
Federation provide for restrictions and prohibitions on receiving any payments from commercial organisations.
Internal documents and the policy of PJSC FGC UES on remuneration of members of the Board of
Directors do not provide for the provision of shares of the Company to members of the Board of Directors.
In the event of early termination of powers of a member of the Board of Directors, as well as in the event
of election of a member of the Board of Directors at the Company’s Extraordinary General Meeting of Shareholders,
the remuneration of such person is calculated taking into account the actual time they fulfil their duties as
a member of the Board of Directors.
The Company does not have any additional remuneration or compensation in case of early termination of powers
of Board members in connection with a takeover of the Company or in other circumstances.
Calculation of remuneration
GRI 102-36
To increase involvement of the Board members into the Company’s operation and motivation to achieve high
financial indicators by the Company, the amount of remuneration payable to members of the Board of Directors
depends on the Company’s financial results. Remuneration is calculated taking into account the fixed part
of remuneration determined depending on the Company’s revenue82 for the financial year previous to the year
of remuneration payment.
Revenue for the financial year
Amount of the fixed part of remuneration
Over RUB 200 bln
Over RUB 30 bln
Over RUB 10 bln
Over RUB 1 bln
Over RUB 600 mln
Below RUB 600 mln
RUB 1,000,000
RUB 900,000
RUB 800,000
RUB 700,000
RUB 600,000
Remuneration is not paid
The fixed amount of remuneration of members of the Board of Directors in the 2017–2019 corporate year
was RUB 900,000.
Board member’s remuneration is formed on the following principles:
the total amount of remuneration of a member of the Company’s Board of Directors
cannot exceed the fixed amount of remuneration (RUB 900,000 for 2019)
in the corporate year;
remuneration for participation in the meetings of the Board of Directors
is formed based on the amount of the fixed amount of remuneration and the actual
attendance of the meetings of the Board of Directors;
the increases are determined in the amount:
+30% of remuneration for participating in the meetings of the Board
of Directors for the Chairman of the Board of Directors;
+20% of remuneration for participation in the meetings of the Board
of Directors for the Chairman of the Committee under the Board of Directors;
+10% of remuneration for participating in the meetings of the Board
of Directors for a member of the Committee under the Board of Directors.
More information
on the formula
for calculating
remuneration for
participation in
meetings of the
Board of Directors
can be found in
the Regulations
on Payment of
Remuneration and
Compensation to
Members of the
Board of Directors
of PJSC FGC UES.
79 Approved by the resolution of the Annual General Meeting of Shareholders of PJSC FGC UES of 26 June 2015, Minutes No. 16 of 30 June 2015.
80 Approved by the Board of Directors, Minutes No. 280 of 24 August 2015.
81 Approved by the Board of Directors, Minutes No. 105 of 17 June 2010.
82 Calculated as per RAS.
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Annual Report 2019 PJSC FGC UES
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193
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
REMUNERATION SYSTEM FOR GOVERNING BODIES
REMUNERATION SYSTEM FOR GOVERNING BODIES
Compensations
The Regulations on Payment of Remuneration and Compensation to Members of the Board of Directors of PJSC FGC UES
provide for reimbursement of actual expenses to Board members, including the cost of the transportation to the location of the
meeting of the Board of Directors and Committees and back, accommodation costs, as well as other expenses related to the
Company’s operations.
Remuneration paid in the reporting year
In connection with the receipt of net profit as of the results of 2018 in the amount of RUB 56,186,935 thousand following
the results of the Company’s activities, at the General Meeting of Shareholders of PJSC FGC UES, held following the
2018–2019 corporate year, it was decided to pay remuneration to members of the Board of Directors.
Fixed annual remuneration was the only monetary form of remuneration of Board members for serving
on the Board of Directors during the reporting period.
Remuneration for Board membership
Additional remuneration
Ractual= Rbas× 100 / 130 × (a/b)
Remuneration to the Chairman
of the Board of Directors*
Remuneration to the Chairman
of the Committee*
Remuneration for Committee
membership*
Ractual× 30 % / 100 %
Ractual× 20 % / 100 %
Ractual× 10 % / 100 %
Rbas = 900,000 RUB
*Bonus payments for chairmanship and membership in the Committee under the Board
of Directors are not paid if there were less than 3 meetings arranged by the Committee
a — number of meetings of the Board of Directors
in which the member participated
b — total number of meetings of the Board
of Directors conducted in the reporting period
Information on the number of the meetings of the Committees under
the Board of Directors
Audit Committee
HR and Remuneration Committee
Investment Committee
Strategy Committee
20
10
17
18
Name of the
Board member
No.
а
b
Remuner-
ation
(Ractual),
RUB
Information on the
membership in
the Committees
under the Board
of Directors
Additional remuneration, RUB.
Chairman
of the Board
of Directors
Chairman of
the Committee
under the Board
of Directors
Member of the
Committee un-
der the Board
of Directors
Total,
RUB
Max
payment,
RUB
Limita-
tions
on the
pay-
ments
Total
payable,
RUB
0
0
0
138,461.54
69,230.77
830,769.23
900,000.00
No
830,769.23
69,230.77
0
0
692,307.69
900,000.00
No
692,307.69
1,038,461.54
900,000.00
No
900,000.00
1
P. Grachev
41
41
692,307.69
Audit Committee
A. Demin
41
41
692,307.69
HR and
Remuneration
Committee
Strategy
Committee
I. Kamenskoy
41
41
692,307.69
Audit Committee
HR and
Remuneration
Committee
Investment
Committee
–
–
–
–
A. Murov*
P. Livinsky
E. Prokhorov
41
41
37
41
41
41
–
692,307.69
624,765.48
N. Roshchenko
39
41
658,536.59
2
3
4
5
6
7
0
0
0
0
0
0
–
207,692.31
0
0
Name of the
Board member
No.
а
b
Remuner-
ation
(Ractual),
RUB
Information on the
membership in
the Committees
under the Board
of Directors
Additional remuneration, RUB.
Chairman
of the Board
of Directors
Chairman of
the Committee
under the Board
of Directors
Member of the
Committee un-
der the Board
of Directors
Total,
RUB
Max
payment,
RUB
Limita-
tions
on the
pay-
ments
Total
payable,
RUB
8
9
S. Sergeev
41
41
692,307.69
P. Snikkars**
36
41
–
Investment
Committee
Investment
Committee
Investment
Committee
10
Ernesto
Ferlenghi
41
41
692,307.69
Audit Committee
11
O. Shatokhina
41
41
692,307.69
HR and
Remuneration
Committee
Investment
Committee
Strategy
Committee
0
–
–
0
0
0
0
0
–
–
0
69,230.77
761,538.46
900,000.00
No
761,538.46
–
–
Yes
–
–
–
69,230.77
969,230.77
900,000.00
No
900,000.00
138,461.54
0
0
0
69,230.77
0
692,307.69
900,000.00
No
692,307.69
Total:
6,960,225.1
* Remuneration is not paid due to the fact that the Board member is the Chairman of the Company’s Management Board at the same time.
** Remuneration is not paid due to the fact that the Board member is a public servant.
Members of the Board of Directors P. Grebtsov, O. Sergeeva, V. Furgalsky elected by the Annual General
Meeting of Shareholders on 26 June 2019 did not receive any remuneration in the reporting year. The issue
of paying the remuneration on the results of 2019 is to be considered at the Annual General Meeting of
Shareholders of the Company planned for 2020.
Members of the Board of Directors were not provided with any loans (credits) in 2019.
Total (aggregated) remuneration paid to members of the Board of Directors, RUB thousand
Type (element) of remuneration
2017
2018
2019
Remuneration for participation in work of the governing body
Additional remuneration to the Chairman of the Board of Directors
Additional remuneration for participation in the Committees of the Board of Directors
Fixed
Other fixed remuneration
Total amount of fixed part of remuneration
Bonuses accrued
Accrual of remuneration paid on the basis of shares
Variable
5,764.2
5,942.3
5,921.8
189.6
832.3
0
207.7
801.9
0
207.7
830.7
0
6,786.1
6,951.9
6,960.2
Such remuneration types
are not provided for in the
Company’s Remuneration Policy
for the Members of the Board
of Directors
Not paid
0
69,230.77
138,461.54
–
0
0
0
0
–
0
0
0
Other variable remuneration (non-monetary remuneration and compensation), including:
Cost of travel to location of meetings of the Board of Directors and the Committees and back
–
–
900,000.00
900,000.00
624,765.48
900,000.00
Yes
No
No
–
900,000.00
624,765.48
Living cost
Other expenses related to the Company's activities
Total accrued size of the variable part of remuneration
658,536.59
900,000.00
No
658,536.59
Severance allowances, compensations and other payments in connection with early termination of powers
194
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ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
REMUNERATION SYSTEM FOR GOVERNING BODIES
REMUNERATION SYSTEM FOR GOVERNING BODIES
System of remuneration of the Chairman
and members of the Management Board
Calculation of remuneration
GRI 102-36
Detailed
information
on the KPI
system, KPI
achievement
in the reporting
year and
goals for 2020
can be found
in section
Strategic
Report/Industry
Review,
Strategy, Risks
and KPI/Key
Performance
Indicators.
In accordance with the best practice, the system of remuneration of the members of the Company’s executive
bodies is comprised of fixed and variable parts related to achievement of top managers’ key performance
indicators (KPIs). Such an approach allows motivating members of the Management Board to achieve
strategic goals and thus contribute to growth of the Company’s value.
The remuneration is comprised of fixed (salary) and variable (bonuses) parts. The variable part is comprised
of quarterly and yearly bonuses (according to the results of achieved quarterly and yearly KPI, correspondingly).
Amount of bonus predominantly depends on achieving top managers’ KPIs. If any KPI is not achieved, bonuses
of all members of the Management Board, including the Chairman of the Management Board, get reduced by
a certain percent depending on the KPI’s weight.
The Board of Directors approves the Company’s KPI targets (adjusted values) and reports on their fulfilment,
on the basis of which bonuses are paid to the Chairman and members of the Management Board.
Main components of the system of remuneration
of members of PJSC FGC Management Board
Form of implementation
Salary
Fixed part
Variable part and other remuneration
The system of short-term motivation includes quarterly
and annual bonuses based on achieving KPIs, as well as other
forms of additional incentives.
The average weight
of the component
in the annual
remuneration structure*
Component purpose
General provisions
32 %
68 %
Establishment of a fair competitive
level of remuneration corresponding to
market conditions. Attraction and
retention of highly professional
managers due to this.
Due to the competitive level of the fixed
part of remuneration, the Company
achieves the stability of composition of
its management.
Stimulation of the implementation of planned operating and
financial performance to achieve the planned results on strategic
priorities.
The size of quarterly and annual bonuses payable to members
of the Management Board is calculated primarily on the basis
of actually achieved KPI values. The Company’s KPI system
is interconnected with the business plan, including the Company’s
investment programme, with the Company’s strategy and
executive discipline. Collective responsibility is established for
the variable part of remuneration: In the event of non-fulfilment
of any KPI, the size of the bonus of all members of the
Management Board, including the Chairman, decreases.
* Calculation based on remuneration paid in 2014–2019.
Conditions of the employment contract with the Chairman of the Management Board are established by the person
authorised by the Board of Directors. Conditions of employment contracts with members of the Management Board
are determined by the Chairman of the Management Board instructed by the Board of Directors.
Information on remuneration of members and the Chairman of the Management Board are disclosed
on the PJSC FGC UES website in the annual report and quarterly report of the issuer.
Remuneration paid in the reporting year
Total (aggregated) remuneration paid to the Chairman and members of the Management Board, RUB thousand
Type (element) of remuneration
2017
2018
2019
Salary (wage)
Total fixed part of remuneration
Fixed part
Variable part
112,220
112,484
95,452
112,220
112,484
95,452
Bonuses accrued in accordance with employment contract
195,979
184,683
186,443
Other types of remuneration
Severance allowances, compensations and other payments accrued in connection
with early termination of powers
Total variable part of remuneration
Total remuneration
21,352
41,590
43,125
64
259
8,622
217,395
226,532
238,190
329,615
339,016
333,642
Amount of remuneration of the Chairman of the Management Board, RUB thousand
Type (element) of remuneration
2017
2018
2019
25,324
25,277
28,330
25,324
25,277
28,330
39,272
53,010
42,085
12,023
43
12,052
51,295
53,053
54,137
76,619
78,330
82,467
Members and the Chairman of the
Management Board were not paid other
fixed remuneration, share remuneration (or
accrual of remuneration paid on the basis
of shares) or stock purchase options, other
variable remuneration in 2017–2019.
Salary (wage)
Total fixed part of remuneration
Fixed part
Variable part
Bonuses accrued in accordance with employment contract
Other types of remuneration
Total variable part of remuneration
Total remuneration
Remuneration
of PJSC FGC UES’ Management Board, RUB ths.
400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
0
217 395
226 532
238 190
112 220
112 484
95 452
2017
2018
2019
- Fixed part
- Variable part
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197
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
ENSURING CONTROL AND RISK MANAGEMENT
ENSURING CONTROL AND RISK MANAGEMENT
Settlement of conflicts
of interest
Risk management system,
internal control and internal audit
Information on
the positions
of members
of the Board
of Directors
held in the
governing
bodies of other
organisations
and on the
ownership of
the Company’s
securities is
disclosed on
the website
www.fsk-ees.
ru/eng/ in
section
Investors/
Corporate
Governance/
Board of
Directors, and
in the issuer’s
quarterly
reports and
annual reports
posted at www.
fsk-ees.ru/
eng/ in section
Investors/
Annual
Reports.
GRI 102-25
The Company strives to prevent and minimise any consequences of possible conflicts of interest
among members of the Company’s governing bodies. The Company has a comprehensive system
of dealing with any conflict of interest between members of the governing bodies of the Company pro-
viding for reasonable assurance that any conflict will be settled at an early stage and the Company’s
interests will not be infringed. The settlement is carried out on the basis of the Company’s Corporate
Ethics Code, Corporate Governance Code, the Regulations on the Board of Directors, and the Regu-
lations on the Management Board.
Members of the Company’s governing bodies shall take reasonable and effective actions, and
in particular make decisions considering all available information in the absence of any conflict
of interest, treating shareholders of the Company equally, and assuming standard risk levels.
The Company verifies information on the participation of members of the Management Board and
the Board of Directors of the Company in other companies on a quarterly basis. The Company
performs regular analysis of information received from members of the Company’s governing bodies
for the presence of a potential conflict of interest.
All members of the Board of Directors and members of the Management Board met the requirements
of Art. 82 of the Federal Law on Joint Stock Companies about sending notifications to the Company
about the presence of a possible interest in the Company’s transactions. In order to identify conflicts of
interest in a timely manner, the Company has developed a questionnaire for members of the Board of Directors
and the Management Board, which they fill in quarterly and indicate all necessary
information.
Internal control system
The Company’s internal control system (hereinafter, the ICS) is an element of the Company’s overall
management system aimed at providing reasonable guarantees of achieving the goals in the following areas:
efficiency and effectiveness of the Company, including the achievement of financial and
operational indicators, as well as the safety of the Company’s assets;
compliance with applicable legal requirements and local regulations of the Company,
including for business facts and accounting purposes;
reliability and timely submission of accounting (financial) and other statements.
The ICS is risk-oriented. Control procedures are risk-based and set up in such a way as to provide a reasonable
assurance that the response to an emerging risk occurs effectively and in a timely manner. The ICS covers all
areas of the Company’s activities; control procedures are performed continuously in all processes of the Company
at all management levels.
In order to ensure the implementation and maintenance of an effective internal control system that complies with
generally accepted practices and standards of internal control, as well as regulatory requirements, and contribute
to the achievement of the Company’s objectives, the Company applies the Regulations on Internal Control
System of PJSC FGC UES.83 It defines the objectives, principles of operation and elements of the Company’s
internal control system, the main functions and responsibility of participants in the internal control system, and the
procedure for evaluating its effectiveness.
The Company has an Order for the fulfilment of requirements of the Regulations on the Internal Control System84,
which reveals the applied aspects of the application of the standards set out in the Regulations on the Internal
Control System.
The control procedures for the processes and subprocesses of the core and supporting activities, as well as the
Company’s management processes are documented in the risk matrices and control procedures.
The Internal Control System is operated in accordance within the model of three defence lines: This model means
the implementation of internal control in the Company at three levels:
1st defence line — The level of governing bodies and the Company’s units and
divisions implementing control procedures by virtue of their responsibilities and job
duties;
2nd defence line —The level of control units of the Company;
3rd defence line — The level of the Internal Audit Department.
The functions of the ICS participants are enshrined in the Regulations on the Company’s Internal
Control System, the provisions on structural divisions and job descriptions.
Internal control and risk management are integral elements
of Rosseti FGC UES management system. They are
inextricably linked with all business processes, which makes it
possible to identify cases that may lead to risks and deviations
from target values of key performance indicators. Thus,
the financial losses of the Company and possible negative
reputation consequences are minimised.
83 Approved by resolution of the Board of Directors, Minutes No. 369 of 2 June 2017.
84 Order of PJSC FGC UES No. 310 of 1 August 2017.
For detailed
information
about the
main functions
of the ICS
participants,
see
Appendix 1.
198
Annual Report 2019 PJSC FGC UES
I. Feoktistov
Security Director of PJSC FGC UES
PJSC FGC UES
2019 Annual Report
199
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
ENSURING CONTROL AND RISK MANAGEMENT
ENSURING CONTROL AND RISK MANAGEMENT
In the reporting year, an external independent assessment of the ICS was carried out. According to its
results, the ICS was recognised effective, and the ICS Control Environment component was recognised
as the best practice for the PJSC Rosseti Group of Companies. The results of the external independent
assessment of the ICS were reviewed by the Board of Directors85 with a preliminary discussion of this issue
by the Audit Committee of the Board of Directors86.
In the reporting year, an external independent assessment of the RMS was conducted. As a result,
the RMS was recognised effective. The results of the external independent assessment of the RMS were
reviewed by the Board of Directors90 with a preliminary discussion of this issue by the Audit Committee
of the Board of Directors91.
Directions for the ICS further improvement
The Company approved an Action Plan to maintain the efficiency and development of risk management
and internal control systems of PJSC FGC UES87. The specified Plan involves the implementation of
measures for the components:
control environment,
information and communications,
control measures,
monitoring.
Risk management system
GRI 102-15
PJSC FGC UES has a risk management system (hereinafter — RMS). The Board of Directors approved
the Regulations on the Risk Management System88. The Regulations on Risk Management System
determines goals, operational principles and elements of the Company’s risk management system, main
functions and responsibility of RMS participants and RMS efficiency assessment procedure.
The purpose of the RMS applied in the Company is to ensure stable continuous functioning and
development of the Company by means of timely identification, assessment and efficient management
of risks threatening efficient business operation and reputation of the Company, employee health,
environment, as well as property interests of shareholders and investors.
The Company uses three methods to respond to risks:
risk avoidance;
risk acceptance or increase in order to implement favourable opportunities;
risk mitigation or assignment.
The choice of response depends on the risk significance, the influence on the likelihood and impact of
risks, costs of implementation, and benefits obtained.
The Company’s internal auditor conducted a comprehensive assessment of the effectiveness of the internal
control and risk management system. The report of the internal auditor on the results of 2019 was preliminary
reviewed by the Audit Committee of the Board of Directors89. According to the results of the internal independent
assessment, the level of maturity of the internal control and risk management system is optimal.
The
Company’s
Regulations
on the Risk
Management
System in force
is available on
the corporate
site www.
fsk-ees.ru/
eng in section
Investors/
Corporate
Governance/
Corporate
Documents.
For information
about the
principles and
subjects of the
RMS, RMS
regulatory
framework, as
well as RMS
participants
and their
functions, see
Appendix 1.
85 The Meeting of the Board of Directors on 30 July 2019, Minutes No. 461 of 31 July 2019.
86 The Meeting of the Audit Committee of the Board of Directors on 25 June 2019, Minutes No. 99 of 25 June 2019.
87 By the resolution of the Board of Directors of 27 January 2020, Minutes No. 482 of 28 January 2020, with a preliminary discussion of this issue
by the Audit Committee of the Board of Directors on 27 December 2019, Minutes No. 109 of 27 December 2019.
88 Approved by the resolution of the Board of Directors, Minutes No. 291 of 19 November 2015, changes introduced by the resolution of the Board
of Directors, Minutes No. 347 of 13 December 2016.
89 Minutes No. 115 of 9 April 2020.
Directions for further
improvement of the risk management system
In 2019, the Company approved92 an Action Plan to maintain the efficiency and development of risk
management and internal control systems of PJSC FGC UES. The specified Plan involves the implementation
of measures for the directions:
Corporate governance and culture;
Analysis and revision;
Strategy and goal setting;
Performance efficiency;
Internal audit
Information, communication and reporting.
Internal audit is an activity for provision of independent and objective guarantees and consultations to the Board of
Directors and the executive bodies of PJSC FGC UES aimed at improving the Company’s management efficiency.
Internal Audit was created with the aim of systematically independent assessment of the reliability and efficiency of the
risk management and internal control system, and corporate governance practices.
The Internal Audit Department is a unit responsible for internal audit functions in the Company. The Internal Audit
Department is administratively subordinate to the Chairman of the Management Board, and functionally to the Board of
Directors of the Company93.
According to the Articles of Association of PJSC FGC UES, the Company’s Board of Directors has94 the following
competencies in terms of internal audit:
approval of the internal audit policy (Internal Audit Regulations);
approval of the activity plan and budget of the internal audit unit;
approval of a candidate for the position of the head of the Company’s Internal Audit Department
and termination of their powers;
determination of the remuneration conditions for the head of the Internal Audit Department, as
well as consideration of significant limitations of powers of the Internal Audit Department or other
restrictions that could adversely affect the implementation of internal audit;
review results of quality assessment of the internal audit function.
Information on
the Company’s
main internal
documents
governing the
internal audit
activity is given
in Appendix 1.
In compliance with the results of the assessment carried out by LLC Ernst & Young —
Assessment and Consulting Services, the activities of the Internal Audit Department received
the highest level of generally consistent assessment with IIA standards and Ethics Code
(the internal audit has certain provisions, policies and procedures, their implementation
and results are assessed as appropriate IIA standards).
90 The Meeting of the Board of Directors on 30 July 2019, Minutes No. 461 of 31 July 2019.
91 The meeting of the Audit Committee on 16 July 2019, Minutes No. 100 of 16 July 2019.
92 Resolution of the Board of Directors of 27 January 2020, Minutes No. 482 of 28 January 2020 with a preliminary discussion of this issue by the Audit
Committee of the Board of Directors of 27 December 2019, Minutes No. 109 of 27 December 2019.
93 Regulations on the Internal Audit of the Company, approved by the resolution of the Board of Directors of the Company, Minutes No. 291 of 19
November 2015; order No. 505 of 29 December 2016 on the Distribution of Responsibilities Between Heads of the Executive Office of PJSC FGC UES.
94 Resolution of the Annual General Meeting of Shareholders of 29 June 2017, Minutes No. 18 of 3 July 2017.
200
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
201
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
ENSURING CONTROL AND RISK MANAGEMENT
ENSURING CONTROL AND RISK MANAGEMENT
Satisfaction quotient of the Audit Committee of the Company’s Board of Directors with the Internal Audit
Department performance results (weighted average total of points in the questionnaires of the voting members
of the Audit Committee versus the number of voting members of the Audit Committee) at the end of 2019
corresponds to a «conforming» rate95.
95 monitoring activities were executed by the internal auditor in 2019. 1,393 correctives were prescribed for
execution. 714 out of 729 correctives with deadlines in the reported year were executed.
Monitoring activities carried out
by the internal audit in 2019
18
45
Corrective activities
1,393
For information
on key decisions,
measures aimed
at improving
the internal
audit system,
implemented in
accordance with
resolutions of the
Company’s Board
of Directors, see
Appendix 1.
19
13
- Operational audit
- Revisions
- Other
- Unplanned
729
714
Total corrective
activities required
Activities that
came due
Activities
carried out
Throughout 2019, we headed for the constant development
of the internal audit function, as well as the application of
new concepts and practices. The main goal of our activity
is to provide independent and objective guarantees and
advice to the Board of Directors and executive bodies
aimed at improving and increasing the efficiency of the
Company’s management system. In 2019, the Internal Audit
Department conducted 47 verifications, which revealed
more than 1,200 violations and deficiencies. Timely
management response to the recommendations of the
internal audit enables us to mitigate the risks of financial
losses and reputation risks.
202
Annual Report 2019 PJSC FGC UES
Svetlana Kovaleva
Internal Audit Director,
Head of the Internal Audit Department of PJSC FGC UES
Audit Commission
The Audit Commission is a permanent body which is responsible for exercising control over PJSC FGC UES’
financial and business operations, its governing bodies and structural units. The composition of the Audit
Commission is elected annually at the General Meeting of Shareholders.
The activities of the Audit Commission are governed by the Articles of Association and the Regulations on the
Audit Commission of PJSC FGC UES96.
The main functions of the Audit Commission are as follows:
confirming reliability of the data contained in the Annual Report, the annual accounting (financial)
statements of the Company, the report on concluded related-party transactions;
analysing the Company’s financial position, discovering ways for improving thereof, and develop
recommendations to the governing bodies;
organising and performing audits (revisions) of the Company’s financial and business operations.
Composition of PJSC FGC UES97 Audit Commission in 2019
Full name
Year
of birth
Education
Position
Composition
formed
by the AGM on
28 June 201898
СComposition
formed
by the AGM on
26 June 201999
Andrey Gabov
1981
Higher
Head of Division of Department of the Ministry of
Economic Development of the Russian Federation
Svetlana Kim
Secretary of the Audit
Commission
1981
Higher
Head of the Governance Department of PJSC Rosseti
Dmitry Ponomarev
1978
Higher
Head of the Governance Department of PJSC Rosseti
Ekaterina Snigireva
1991
Higher
Head Deputy of the Department of Property Relations
and Privatisation of the Federal Agency for State
Property Management (Rosimushchestvo)
Aleksandr Batalov
1973
Higher
Director of the Department for Economic Security and
Anti-Corruption of PJSC Rosseti
Marina Lelekova
1961
Higher
Head of the Department for Control and Audit Activities
of PJSC Rosseti
Vladimir Khvorov
1947
Higher
Leading Expert of the Department of State Regulation of
Tariffs, Infrastructure Reforms and Energy Efficiency of
the Ministry of Economic Development of the Russian
Federation
+
+
+
+
+
+
+
+
+
+
96 Approved by the resolution of the Annual General Meeting of Shareholders of PJSC FGC UES on 26 June 2015, Minutes No. 16 of 30 June 2015.
97 Positions of the Audit Commission members are stated at the time of election. None of the Audit Commission members holds shares of PJSC FGC
UES or positions in its governing bodies.
98 Minutes No. 20 of 2 July 2018
99 Minutes No. 22 of 28 June 2019
PJSC FGC UES
2019 Annual Report
203
95 In compliance with the Company’s Internal Audits Quality
Assurance and Improvement Programme, approved by the decision
of the Board of Directors of the Company on 11 December 2017
(Minutes No. 383 of 14 December 2017).
Tatiana Zobkova
Chairman of the Audit
Commission
1976
Higher
Deputy Director of the Department for Corporate
Governance, Pricing Environment and Auditing in Fuel
and Energy Industries of the Russian Ministry of Energy
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
ENSURING CONTROL AND RISK MANAGEMENT
ENSURING CONTROL AND RISK MANAGEMENT
Amount of remuneration paid to the Audit Commission members in 2019, RUB thousand
Full name
Marina Lelekova
Vladimir Khvorov
Aleksandr Batalov
Total
External Auditor
Amount
206.1
165.0
178.65
549.75
The Company annually engages an external auditor to perform an independent and unbiased assessment of quality
of its RAS and IFRS accounting (financial) statements. The candidacy of the external auditor of the financial statements
is approved by the Annual General Meeting of Shareholders of the Company. Candidacy is determined on the basis
of competitive procedures that provide an objective choice. Selection of an audit organisation for the implementation
of the mandatory audit of PJSC FGC UES’ financial statements for 2018–2020 in the form of an open one-stage competition
without preliminary qualification selection was conducted by PJSC Rosseti.
The Annual General Meeting of Shareholders dated 28 June 2018100 approved ERNST AND YOUNG Limited
Liability Company as the auditor of PJSC FGC UES. The Company’s Board of Directors resolved to determine
the amount of payment for the services of PJSC FGC UES’ auditor for the audit of reporting for 2019 in the amount
of RUB 22,175,308.08, including VAT. As a matter of fact, a total of RUB 16,742,357.59 was paid in 2019, and the rest
amount of the audit reporting service payments is to be paid in the first half of 2020.
On 7 April 2020101, the Audit Committee of the Board of Directors approved the resolution on evaluating the quality
of the audit, audit statements and the effectiveness of the conducting process for the external audit process
of the accounting (financial) statements of PJSC FGC UES for 2019, and noted the compliance of the audit statement
of the external auditor to the international audit standards and Russian legislation.
Reporting auditor of PJSC FGC UES
Full corporate name: ERNST AND YOUNG Limited Liability Company
Short corporate name: ERNST AND YOUNG LLC
Address: 77 Sadovnicheskaya Emb., Build. 1, Moscow, Russia, 115035
INN: 7709383532
OGRN: 1027739707203
Phone: +7 (495) 648 96 42; +7 (495) 641 29 07
E-mail: Tatyana.Okolotina@ru.ey.com; Elena.Kovalchuk@ru.ey.com
Data on the membership of the auditor in self-regulatory organisations of auditors: Self-regulatory
organization of auditors Association «Sodruzhestvo»
Registered and business address: Вuilding 4, 21 Michurinsky prospect, Moscow, Russian
Federation 119192
In 2019, ERNST & YOUNG LLC within the framework of the Service Contract No. ECU-2018-00228 dated 10 December
2018 provided access to the EY Atlas online information resource, that combines EY standards, guidelines and
interpretations in the field of accounting and audit. On 26 December 2019, the Service Contract No. ECU-2019-00323
was signed. Under the contract No. ECU-2018-00228 dated 10 December 2018, the actual amount of non-audit services
amounted to RUB 63,353.82. Under the contract No. ECU-2019-00323 dated 26 December 2019, the amount of non-
audit services amounted to RUB 59,550.24 and was paid in Q1 2020.
100 Minutes No. 20 of 2 July 2018
101 Meeting Minutes of the Audit Committee of the Board of Directors No.114 of 7 April 2020.
Anti-Corruption Policy
and Economic Security
GRI 103-2
Rosseti FGC UES declares zero tolerance towards corruption in any of its forms and aspects,
meaning a total ban for all managers, employees and other persons acting on behalf of and / or for
the benefit of the Company, directly or indirectly, personally or through any intermediary,
to take part in any corrupt practices.
Anti-corruption activities in the Company are aimed at reducing the risks of material and reputation damage to
the Company as a result of corruption.
Anti-corruption activities in the Company are an element of the internal control and risk management system.
Since 2012, the Company has been operating and constantly improving its Anti-Corruption Policy. In 2015,
the Policy was updated102 due to changes in anti-corruption legislation103. In 2017, a new edition of the Anti-
Corruption Policy of PJSC FGC UES was approved, which corresponds to the Methodological Recommendations of
the Federal Agency for State Property Management on risk management and internal control in the field of preventing
and combating corruption104.
GRI 103-3, 205-3
There were no confirmed cases of corruption in 2019. Criminal cases concerning corruption in relation
to the organisation or employees were not initiated during the reporting period, and were not tried in courts.
The Company applies a risk-based approach to the management of its corruption prevention system.
GRI 102-12
The Company joined the Anti-Corruption Charter of Russian Business in 2015 (certificate of accession
No. 2041) and confirmed its compliance with its requirements in 2017 and 2019. A self-assessment
of the anti-corruption measures implemented in the Company was carried out, which resulted
in the preparation of a Declaration of compliance with the Charter provisions.
Anti-corruption control of the procurement
stages in the reporting year
2,482 issues submitted to the Central Tender Commission were considered. Various types of risks were
identified in 417 issues submitted to the Central Tender Commission members. Financial damage in the amount
of more than RUB 217.7 million has been prevented.
Control was exercised over the formation of the initial (maximum) purchase price, the cost of purchases
was reduced by a total RUB 30.6 million.
Anti-corruption expertise was conducted on 413 materials prepared for contracting. According to the results
of the expertise, 69 materials were sent for revision.
102 Meeting Minutes of the Board of Directors of PJSC FGC UES No. 357 of 13 March 2017.
103 Meeting Minutes of the Board of Directors of PJSC FGC UES No. 280 of 24 August 2015.
104 Order of the Federal Property Management Agency No. 80 dated 2 March 2016.
204
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
205
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
ENSURING CONTROL AND RISK MANAGEMENT
ENSURING CONTROL AND RISK MANAGEMENT
Anti-corruption control in relations with the partners
and contracting parties
Corruption Risks and Compliance
with Corporate Ethics
Procurement participants were checked for possible affiliation with the Company’s employees.
GRI 205-1
Information on changes in the shareholders of the contracting parties, as well as the inclusion of an anti-corruption
clause and other mandatory clauses into contracts was timely provided.
Work was carried out to check the financial stability of counterparties to Rosseti FGC UES, which included daily
monitoring of all counterparties for signs of deterioration in financial stability.
Support was provided to the liquidation and bankruptcy proceedings of counterparties, with the total of cash received
into the Company’s budget from counterparties in bankruptcy proceedings amounting to RUB 454.5 million.
Identification and settlement of conflicts of interest
In 2019, declaration of the conflict of interest of the Company’s employees for 2018 was arranged. According
to the certification of the conflict, all manageable situations were settled.
Preventive surveys with a lie detector were held regarding job applicants, transfer of the employees starting
with the head of the department and above, as well as during agency checks. 118 surveys of candidates
were conducted during recruitment, as a result, 15 candidates were not recommended, and 10 surveys of
employees during work audits were conducted, 3 cases of employees’ involvement in the events under audit
were identified.
Consideration and resolution of appeals about possible
corruption in Rosseti FGC UES
The Company has anti-corruption hotlines.
In 2019, the Company’s anti-corruption hotlines received a total of 16 appeals with information about possible
facts of corruption. The information on two appeals was confirmed and appropriate actions were taken on
them. One more appeal is still under revision.
The functioning of anti-corruption hotlines was monitored on a quarterly basis.
Informing and training employees
on anti-corruption issues, shaping anti-corruption
behaviour of employees
In order to inform the Company’s employees, the unit responsible for corruption prevention has conducted four training
events in the Knowledge Day format.
Employees whose job duties include preventing and combating corruption received advanced training at the Institute
of Legislation and Comparative Law under the Government of the Russian Federation and the HSE University.
The Anti-Corruption Policy of PJSC FGC UES reflects the commitment to high ethical standards of conducting
an open and honest business, the principle of zero tolerance towards corrupt practices, and therefore all corruption risks
of the Company are assessed as critical. In 2019, corruption risks were assessed regarding 21 subdivisions
of the Executive Office (58% of the total number of subdivisions).
The Department of Internal Control and Risk Management implements timely prevention of compliance risks, their
minimisation, identification and elimination of causes and conditions; organises and carries out effective control over
compliance of the Company’s employees with the legislation of the Russian Federation in counteraction of corruption,
applicable norms of international law, local normative legal acts and organisational and administrative documents
of the Company, decisions of the collegial bodies of the Company’s management; ensures implementation
and control over compliance of Anti-Corruption policies in S&A of the Company. The Company has implemented
procedures to identify non-compliances.
The Company monitors employees’ compliance with the Corporate Ethics and Business Conduct Code
and identifies any non-compliance.
The Company made a Central Commission for Compliance with Corporate Ethic Standards and Conflict
of Interest Resolution.
Economic Security
As part of the implementation of measures to protect the economic interests of the Company by the Security Block:
The economic damage to the Company’s interests amounting to RUB 3.5 billion was prevented.
The damage in the amount of RUB 601.64 million was compensated;
180 persons have been identified as having committed violations, 111 of whom have been brought to
disciplinary and material responsibility, and 10 have been dismissed;
153 applicant materials were prepared and sent to law enforcement agencies, of which 97 were prosecuted.
At the same time, more than 85% of the criminal cases are related to the theft by third parties of ferrous and non-
ferrous metal products from power generation facilities;
2,518 issues of procurement procedures were considered, 137 negative resolutions were given;
216 procurement procedures were considered, the cost of procurement was reduced by the total amount
of RUB 234.5 million;
Based on the executive documents, measures were taken to collect accounts receivable, and the Company
was reimbursed RUB 522 million.
Protecting against Terrorism and Crime
The anti-terrorist policy is carried out in accordance with Federal Law No. 256-FZ of 21 July 2011.
On the safety of the fuel and energy complex and the requirements of regulations of the Government of the Russian
Federation No. 993 of 19 September 2015 “On the approval of security requirements for FEC ground facilities”
is to organise and carry out activities aimed at strengthening the engineering and technical reinforcement
and anti-terrorist protection of the Company’s facilities.
The organisational and planning activities carried out during the reporting period allowed the Company’s facilities
of various hazard categories to be protected at an adequate level.
The activities carried out by the security units contributed to minimising the risks of terrorist acts as a result
of unauthorised intrusions into the Company’s guarded facilities.
In the reporting period, there were no criminal incidents or blackouts as a result of unlawful actions.
206
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
207
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
SHARE CAPITAL, SECURITIES TRADING
SHARE CAPITAL, SECURITIES TRADING
Share capital, securities trading
PJSC FGC UES equity holding structure as of 31 December 2019
Accounts of holders and TMs
Amount of uncertified registered ordinary shares (UROS) on accounts
As of 31 December 2019, the share capital of PJSC FGC UES was RUB 637,332,661,531.50 consisting
of 1,274,665,323,063 ordinary registered uncertified shares with a nominal value of RUB 0.50 each.
No preferred shares were placed as of the above date.
In accordance with the Company’s Articles of Association, the number of authorised shares
is 72,140,500,768 ordinary registered shares with a nominal value of RUB 50 each and a total nominal value
of RUB 36,070,250,384. Authorised ordinary shares have the same rights as outstanding ordinary shares.
In 2019, there were no issues or placements of additional shares by PJSC FGC UES.
Equity holding structure
The total number of the Company’s shareholders exceeds 460,000 persons. As of 31 December 2019, the
list of shareholders included:
458,392 individuals,
2,376 legal entities, 331 of which are trustees.
There were no significant changes in the Company’s equity holding structure in 2019.
The total number of the Company’s shareholders — over 460,000 persons.
Information on
the Company’s
share capital
history can
be found on
our corporate
website www.
fsk-ees.ru/
eng, in section
Investors/
Share
Information/
Share Capital
History.
Information
on allocated
issues of
shares is
available on
the website
www.fsk-ees.
ru/eng in
section
Investors/
Share
Information/
Share Capital
History/
Documents
for current
share issue.
Shareholders owning more than 2% of the shares
Share as of 31 December 2017,
%
Share as of 31 December 2018,
%
Share as of 31 December 2019,
%
PJSC Rosseti
Prosperity Capital Management
80.13 %
2.7 %
80.13 %
3.4 %
80.13 %
2.2 %
Ownership range
Less than 0.01%
0.01 %–0.05 %
0.05 %–0.1 %
0.1 %–0.5 %
0.5 %–1 %
1.0 %–2.0 %
More than 2.0%
Quantity
460,592
Proportion
99.9616 %
120
20
29
6
1
1
0.0260 %
0.0043 %
0.0063 %
0.0013 %
0.0002 %
0.0002 %
100.00 %
Total of UROS
Proportion
47,392,561,489
34,082,304,967
21,241,512,422
84,436,870,135
52,425,863,380
13,727,165,278
1,021,359,045,392
1,274,665,323,063
3.72 %
2.67 %
1.67 %
6.62 %
4.11 %
1.08 %
80.13 %
100.00 %
Total
460,769
PJSC Rosseti is the largest shareholder of PJSC FGC UES (80.13% of the authorised capital). The State
(Russian Federation) represented by the Federal Agency for State Property Management (Rosimushchestvo)
holds 0.59% of the Company’s authorised capital. The government has no special right («golden share»)
to participate in the Company’s management.
Shareholders’ Agreement
In June 2013, PJSC Rosseti and Rosimushchestvo signed the Stockholders Agreement on the procedure for
anaging and voting shares of PJSC FGC UES. The agreement covers all voting shares of PJSC FGC UES, held
by the parties or to be acquired in the future.
As of 31 December 2019, 1.077% of PJSC FGC UES shares was in cross-ownership of FGC – Asset Management LLC.
Free-float
The free float of PJSC FGC UES shares as of 31 December 2019 is 18.2%105.
The Company conducts an annual analysis of the shareholder register to identify the key groups of holders of
ordinary shares and depository receipts.
The PJSC FGC UES management team is not aware of any shareholders (nominee holders) holding more than
5% of the Company’s outstanding shares, other than those indicated above.
Minority shareholders
Dynamics of PJSC FGC UES share capital structure
As of 31 December 2017
As of 31 December 2018
As of 31 December 2019
12.51 %
80.13 %
13.76 %
80.13 %
14.68 %
80.13 %
The key minority shareholders of the Company are institutional investors, with the share of retail investors
being approximately 3.5%.
The largest foreign shareholders of the Company as of the end of 2019 are the funds and investment
mandates managed by Prosperity Capital Management (2.2%)106.
7.36 %
6.12 %
5.19 %
- PJSC Rosseti
- Shareholders owning from
0.5 to 2% of the Company’s
authorised capital
- Shareholders owning less
than 0.5% of the Company’s
authorised capital
The share of foreign institutional investors is over 50% of free-float. These include funds from major
global management companies such as BlackRock, Vanguard, State Street Global Advisors, BNY Mellon
Investment Management and JP Morgan Asset Management, and public investment funds, in particular
of Norway, UAE.
In general, foreign investors own 61.9 % of free float shares of PJSC FGC UES. This percentage decreased
by 2.3 p.p. over the past year, mainly due to the transfer of shares owned by Gazprom offshore
to the Russian jurisdiction.
105 Free-float is calculated as a percentage of the shares of FGC which are in free circulation as of 31 December 2018, excluding shares owned
by PJSC Rosseti, the State, municipalities and quasi-treasury shares.
106 Consent to disclosure has been obtained, data provided by Prosperity Capital Management Ltd.
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209
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
SHARE CAPITAL, SECURITIES TRADING
SHARE CAPITAL, SECURITIES TRADING
Group of foreign shareholders (in alphabetical order)
holding in total approximately 5% of outstanding shares of PJSC FGC UES*
Market intelligence on the Company’s securities
Name
ABU DHABI INVESTMENT AUTHORITY
BlackRock
Kopernik Global Investors LLC
Norges Bank Investment Management
Polunin Capital Partners Limited
Prosperity Capital Management
State Street Corporation
Vanguard
Country
UAE
USA
USA
Norway
USA
Cayman Islands
USA
USA
* Source: Company data
Distribution of foreign investors
of PJSC FGC UES by investment types
12 %
0.2 %
64 %
5 %
1 %
2 %
16 %
- Funds and managing companies
- Bunks and trusts
- Brokers
- Non-identified
- Pension and
insurance funds
- Other
- Sovereign funds
Distribution of foreign investors
of PJSC FGC UES by regions
10%
2 %
1%
2 %
45 %
4 %
5 %
6 %
6 %
More than 75%
of the shares of
PJSC FGC UES held
by non-residents
are concentrated
in funds, MCs and
sovereign funds.
9 %
10 %
- USA
- Cayman
Islands
- Cyprus
- Norway
- Ireland
- UAE
- Great Britain
- Belize
- The Netherlands
- Luxembourg
- Other
The largest
percentage
of PJSC FGC UES
shares held by
foreign investors —
45% — belongs
to US companies.
Distribution of foreign investors of PJSC FGC UES by investment styles
16 %
12 %
Most investors view FGC shares as an undervalued asset (Value) or an asset
with good growth prospects (Growth). The intermediate position between these
two approaches represents the GARP investment style (Growth at Reasonable
Price). The By Market group includes short-term investors focused on the current
market situation, including brokers and hedge funds. Index Group investors are
guided by various index solutions.
12 %
25 %
16 %
- By market
- GARP
- Growth
- Index
- Value
- Other
19 %
PJSC FGC UES shares are included in the MOEX First Tier quotation list.
PJSC FGC UES shares are included in the MOEX First Tier quotation list, as well as in the run listed at PJSC
St. Petersburg Stock Exchange.
Outside of the Russian Federation, the Company’s shares are traded as global depositary receipts (GDR) at
the London Stock Exchange. THE BANK OF NEW YORK MELLON (BNY Mellon) is the depositary bank of the
GDR programme. As of 31 December 2019, the GDR programme size was 0.043% of the authorised
capital of FGC.
The Company’s shares are included in the basis for calculation of key domestic and a number of foreign indices.
General information on shares of PJSC FGC UES
Category of shares
Nominal value
MOEX Ticker
St. Petersburg Stock Exchange Ticker
LSE Ticker
ISIN
Bloomberg Code
Registered ordinary uncertified share
RUB 0.50
FEES
FEES
FEES
RU000A0JPNN9
FEES RX
Weight of shares of PJSC FGC UES in stock indices as of 31 December 2019, %
Name of index
MOEX Index
RTS Index
Power Index
Power Index, USD
Medium and Small Capitalisation Index
Medium and Small Capitalisation Index, USD
Mass Market Index
Mass Market Index, USD
State-Owned Company Share Index
Share Index of Regulated Companies
Code
IMOEX
RTSI
MOEXEU
RTSeu
MCXSM
RTSSM
MOEXBMI
RUBMI
MOEX SCI
MOEX RCI
Pension savings asset indices - Subindex of Shares
MOEX EPSI
Weight, %
0.39
14.69
3.3
0.31
1.09
21.92
0.67
210
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
211
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
SHARE CAPITAL, SECURITIES TRADING
SHARE CAPITAL, SECURITIES TRADING
Results of exchange trading in shares and depositary receipts
Dynamics of trading volumes and value of shares of PJSC FGC UES at the MOEX
For more information on
PJSC FGC UES shares
trading, please visit our
website www.fsk-ees.ru/
eng, section Investors/
Share Information/
Interactive Stock Chart.
For more information
on depositary receipts
trading, please visit our
website www.fsk-ees.ru/
eng, section Investors/
Share Information/
GDR Program.
For updated information
on the GDR programme,
please visit the official
London Stock
Exchange website www.
londonstockexchange.
com, indicating the
Company’s ticker —
FEES.
For detailed information
on the dividend policy,
please see section
Profit Distribution and
Dividend Policy.
2017
2018
2019
Shares of PJSC FGC UES at MOEX
Trading volume, RUB bln
Lowest price, RUB
Highest price, RUB
Year-end price, RUB
145.8
0.15
0.261
0.16205
61.2
0.14588
0.1915
0.14812
Depositary receipts of PJSC FGC UES at the London Stock Exchange
Trading volume, USD mln
Lowest price, USD
Highest price, USD
Year-end price, USD
6.1
1.275
2.3
1.35
0.7
1.02
1.7
1.03
52.2
0.14664
0.2122
0.20064
0.3
1.03
1.66
1.6
The shares of PJSC FGC UES in 2019 showed the leading dynamics compared to the indices
of the Moscow Exchange and the electric power industry. Over the year, the value of the Company’s
shares increased by 35.5% (from 14.8 kopecks at the end of 2018 to 20.1 kopecks at the
end of 2019), while the Moscow Exchange index grew by 28.6% and the MOEXEU industry
index by 25.0%. The Company’s market capitalisation as of 31 December 2019
amounted to RUB 256.6 billion.
Against the background of the recovery of investors’ interest in the assets of emerging markets
as a whole, and the Russian market in particular, there was increased investor demand for certain
dividend stories, to which analysts refer the shares of PJSC FGC UES.
Change in the value of ordinary shares of PJSC FGC UES in comparison
with the MOEX index and MOEXEU sector index
10
5
0
.
s
c
p
n
b
l
,
e
m
u
o
V
l
.
9
1
0
2
1
0
3
0
.
.
9
1
0
2
1
0
2
2
.
.
9
1
0
2
2
0
0
1
.
.
9
1
0
2
3
0
1
0
.
.
9
1
0
2
3
0
0
2
.
.
9
1
0
2
4
0
8
0
.
.
9
1
0
2
4
0
4
2
.
.
9
1
0
2
5
0
6
1
.
.
9
1
0
2
6
0
4
0
.
.
9
1
0
2
6
0
3
2
.
.
9
1
0
2
7
0
2
1
.
.
9
1
0
2
7
0
1
3
.
.
9
1
0
2
8
0
9
1
.
.
9
1
0
2
9
0
7
0
.
.
9
1
0
2
9
0
6
2
.
.
9
1
0
2
0
1
5
1
.
- Volume, pcs.
- Price of FGC share, RUB
Dynamics of capitalisation of PJSC FGC UES at the end of the year
257.6
256.6
206.9
188.9
l
n
b
B
U
R
.
9
1
0
2
1
1
3
0
.
.
9
1
0
2
1
1
2
2
.
.
9
1
0
2
2
1
1
1
.
.
9
1
0
2
2
1
0
3
.
0.22
0.20
0.18
0.16
0.14
0.12
B
U
R
,
e
c
i
r
P
Information on the
dynamics of GDR
value and trading
volume on the London
Stock Exchange is
provided
in Appendix 1.
Information on the
trading volume,
minimum and
maximum values of the
share price of PJSC
FGC UES on a monthly
basis, the main events
of share price dynamics
in 2019 is given
in Appendix 1.
,
n
o
i
t
a
s
i
l
a
t
i
p
a
C
74.9
56.1
2014
2015
2016
2017
2018
2019
As for the profitability index (TSR),
upon the results of 2019, PJSC FGC UES
shares were included in the list of the most
liquid and capitalised shares in the electric
energy sector index.
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5 %
0 %
-5 %
.
8
1
0
2
2
1
9
2
.
.
9
1
0
2
1
0
1
3
.
.
9
1
0
2
2
0
8
2
.
.
9
1
0
2
3
0
9
2
.
.
9
1
0
2
4
0
0
3
.
.
9
1
0
2
5
0
1
3
.
.
9
1
0
2
6
0
8
2
.
.
9
1
0
2
7
0
1
3
.
.
9
1
0
2
8
0
0
3
.
.
9
1
0
2
9
0
0
3
.
.
9
1
0
2
0
1
1
3
.
- MOEX Index
- Energy Industry Index
- FGC shares
35.5 %
28.6 %
25.0 %
GRI 103-3
TSR of the Russian power sector companies based on 2019 results
81.6 %
.
9
1
0
2
2
1
0
3
.
46.3 %
- Price dynamics
- Dividend yield
- TSR
25.0 %
20.0 %
19.1 %
15.5 %
34.4 %
21.9 %
For detailed
information on
the dynamics of
dividends and
dividend yield of
shares of PJSC
FGC UES, see
section Profit
Distribution and
Dividend Policy.
FGC
MOEXEU
RCI
Mosenergo
Unipro
Inter RAO
RusHydro
Rosseti
.
9
1
0
2
1
1
9
2
.
212
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
213
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
SHARE CAPITAL, SECURITIES TRADING
SHARE CAPITAL, SECURITIES TRADING
Volume and dividend payout ratio
Interactions with investors and shareholders
100.0 %
90.0 %
80.0 %
70.0 %
60.0 %
50.0 %
40.0 %
30.0 %
20.0 %
10.0 %
0.0 %
20.31
20.45
18.18
16.98
%
5
.
8
3
%
0
.
5
9
%
6
.
6
2
%
1
.
7
1
%
1
.
3
2
%
9
.
7
4
%
0
.
2
2
%
4
.
6
3
2015
2016
2017
2018
21.00
20.00
19.00
18.00
17.00
16.00
15.00
- IFRS, payout ratio
- RAS, payout ratio
- Dividends, RUB bln (scale on the right)
GRI 103-3
Analysts make an optimistic assessment
of the investment attractiveness
FGC UES shares. The increase
in the number of recommendations
to hold these securities in 2019 was due
to both the increase in the value of shares
and the expectation of experts that the
new strategy and dividend policy will be
adopted by power grid companies.
Results for the year show
that the six investment companies
provided analytical coverage
on PJSC FGC UES.
Analyst recommendations on shares of PJSC FGC UES*
4Q19
3Q19
2Q19
1Q19
4Q18
50 %
50 %
50 %
50 %
50 %
50 %
67 %
75 %
33 %
25 %
- Buy
- Hold
- Sell
* Source: Company data
Financial
sustainability
Effective
governance
The Company’s priorities in interaction with shareholders and investors are the creation of an
investment community and provision for efficient interaction with it in order to improve investor trust
and raise demand for the Company’s shares. We consider an active dialogue with the investment
community to be important for getting feedback from this audience in order to understand how certain
decisions may impact the investors’ assessment of the Company.
Key events held in 2019:
an annual meeting of the management with investment community representatives
(Investor’s Day);
a conference call for investment community representatives to present 2018 IFRS financial
results of the Company and a session of questions and answers;
Company executives group meetings with representatives of Russian and foreign
investment companies within the framework of VTB Capital International Investment Forum
“Russia Calling!”;
individual management meetings with representatives of Russian and foreign investment
companies;
regular communication of the Corporate and Strategic Management Department with
analysts of investment banks to give them information for updating investment models on
Rosseti FGC UES;
provision of information when requested by shareholders, investors and analysts;
regular monitoring of the Company’s share capital, which makes it possible to structure
the main groups and types of investors for developing an optimal mechanism of interaction
with them.
For more details
on the Company’s
IR events, please
see the website
www.fsk-ees.ru/
eng/, Investors/IR
Releases.
The list of
investment
analysts monitoring
the Company’s
performance is
available on the
website www.
fsk-ees.ru/eng/,
Investors/Analyst
Coverage.
The Investor
Calendar is
constantly updated
and available at
the website www.
fsk-ees.ru/eng/,
Investors/Investor
Calendar.
In 2019, analysts and investors were mostly interested in the following areas:
financial and economic indicators and business forecast;
Rosseti FGC UES development strategy;
investment programme;
dividend policy;
tariff setting and RAB regulation periods.
A traditional meeting of Rosseti FGC UES management with investment community
representatives was held on 25 December in the Moscow Exchange. A. Murov, Chairman of the
Management Board, told about the main results of 2019 and key areas of work in the new five-year
investment period, as well as noted stable financial and economic indicators, which allow to pay
interim dividends for 9M 2019. Management’s assessment of the size of dividends for the whole
year was also presented. Among the priority areas of work for the next five years, A. Murov named
the implementation of the tasks defined by decisions of the President and the Government of the
Russian Federation.
This form of meetings allows investors to receive first-hand knowledge, and the management gets
feedback directly from market experts.
214
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
215
ABOUT THE COMPANYSTRATEGIC REPORTCORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATION
[219] MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES
FOR 2019 AS PER RAS
[232] MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES
FOR 2019 AS PER IFRS
PJSC FGC UES
2019 Annual Report
217
The Financial Report is an integral part
of the annual reporting covering the results
of operations and the change in the financial
situation in the Company. Consistently high
level of financial sustainability, the status
of one of the leaders on the Russian market
in terms of borrowing efficiency — all these
indicators characterise the Company’s
financial policy as balanced in terms
of performance, reliability and sustainability.
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
Ernst & Young LLC
Sadovnicheskaya nab. 77, bld. 1,
115035, Moscow, Russian Federation
Tel: +7 (495) 705 9700
+7 (495) 755 9700
Fax: +7 (495) 755 9701
OKPO: 59002327
OGRN: 1027739707203
INN: 7709383532
www.ey.com/ru
Independent
auditor’s report
To the Shareholders and Board of Directors of
Public Joint-Stock Company ”Federal Grid Company of Unified Energy System”
Opinion
We have audited the financial statements of Public Joint-Stock Company ”Federal Grid
Company of Unified Energy System”, which comprise the balance sheet as at 31 December
2019, statement of income for 2019 and appendices thereto.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the financial position of the Company as at 31 December 2019 and its financial performance
and its cash flows for 2019 in accordance with the rules on preparation of financial
statements established in the Russian Federation.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities
for the audit of the financial statements section of our report. We are independent of the
Company in accordance with the International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants (including International Independence
Standards) (IESBA Code) together with the ethical requirements that are relevant to our
audit of the financial statements in the Russian Federation, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the IESBA Code. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
218
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
219
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the accompanying financial statements.
Key Audit Matter
How the relevant key matter was considered
during our audit
Recognition and measurement of investments in non-current assets
We analyzed the assumptions used by the
management in assessing the ability of assets to
bring future economic benefits, as well as the sources
of the formation of economic benefits. We also
reviewed the management’s plans for future use of
assets and expected cash flows from the use of
individual fixed assets. We analyzed the relevant
disclosures in the financial statements.
The Company’s balance sheet reflects capital
investments in non-current assets, including
design and survey work, acquisition and
construction of fixed assets, as well as advances
paid to construction companies and suppliers of
fixed assets. The Company assesses the ability
of uncompleted investments in fixed assets and
advances made for the acquisition of fixed assets
to provide economic benefits in the future, which
affects their book value. This matter was one of
the most significant for our audit due to the fact
that the measurement methods, as well as the
management’s assumptions and judgments are of
subjective nature and affect the total expected
economic benefits, as well as due to the
significant balance of uncompleted investments
and advances made as at the reporting date.
Information on the investments in non-current
assets is disclosed in paragraph 3.4 of the
Appendices to balance sheet and statement of
income.
Impairment of accounts receivable
The matter Impairment of accounts receivables
was one of the most significant for our audit due
to the significant balance of accounts receivables
on the balance sheet of the Company as at 31
December 2019, as well as due to the fact that the
management’s assessment of recoverability of
accounts receivable is based on assumptions, in
particular, on the forecasted ability of the
Company’s customers to pay.
Information on impairment of accounts receivables
is disclosed in paragraph 3.9 of the Appendices to
balance sheet and the statement of income.
We analyzed the Company’s accounting policy on
accounts receivables in the context of establishing an
impairment allowance, as well as reviewed the
assessment procedures performed by the Company’s
management, including analysis of history of
settlements, ageing and overdue receivables and
customers’ ability to pay.
We performed audit procedures with respect to the
information used by the Company to determine the
impairment of accounts receivables, as well as with
respect to ageing structure of accounts receivables,
we also tested the calculation of the amounts of
accrued allowance based on the management’s
estimates.
Other matters
The financial statements of Public Joint-Stock Company ”Federal Grid Company of Unified
Energy System” for 2017 were audited by another auditor who expressed an unmodified
opinion on those statements on 20 February 2018.
Other information included in Annual Report
Other information consists of Annual Report other than the financial statements and our
auditor’s report thereon. Management is responsible for the other information. The Annual
Report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information identified above when it becomes available and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
Responsibilities of management
and Audit Committee of Board of Directors
for the financial statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the rules on preparation of financial statements established
in the Russian Federation, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Audit Committee of Board of Directors are responsible for overseeing the Company’s
financial reporting process.
Auditor’s responsibilities for the audit
of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
220
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
221
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with Audit Committee of Board of Directors regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide Audit Committee of Board of Directors with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with Audit Committee of Board of Directors, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Details of the audited entity
Name: Public Joint-Stock Company “Federal Grid Company of Unified Energy System”
Record made in the State Register of Legal Entities on 20 August 2002,
State Registration Number 1024701893336.
Address: 117630, Russia, Moscow, Akademika Chelomeya street, 5A.
Details of the auditor
Name: Ernst & Young LLC
Record made in the State Register of Legal Entities on 5 December 2002,
State Registration Number 1027739707203.
Address: Russia 115035, Moscow, Sadovnicheskaya naberezhnaya, 77, building 1.
Ernst & Young LLC is a member of Self-regulatory organization of auditors
Association “Sodruzhestvo”. Ernst & Young LLC is included in the control copy of the register
of auditors and audit organizations, main registration number 12006020327.
The partner in charge of the audit resulting in this independent auditor’s report is –
T.L. Okolotina.
T.L. Okolotina
Partner Ernst & Young LLC
20 February 2020
222
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
223
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
BALANCE
SHEET
as of 31 December 2019
Organization Public Joint-Stock Company
“Federal Grid Company of Unified Energy System”
Taxpayer Identification Number (INN)
Type of activity power transmission
Form of incorporation / form of ownership
public joint-stock company / mixed Russian assets with a federal share
Unit of measurement: RUB thousand.
Location (address) 5A Akademika Chelomeya Street, Moscow, Russia, 117630
Accounting statements are subject to mandatory audit
Name of the audit organization / last name, first name, patronymic (if any) of the
individual auditor LLC “Ernst & Young”
Taxpayer Identification Number of the audit organization / individual auditor
Primary State Registration Number of the audit organization / individual auditor
YES
NO
1to Decree of the Russian Ministry of Finance
No. 66n dated July 2, 2010(as revised by Decrees of the Russian
Ministry of Finance
No. 124n dated October 5, 2011, No. 57n dated April 6, 2015,No.
41n dated March 6, 2018,No. 61n dated April 19, 2019)
OKUD Form No. 1
Date (year, month, day)
as per OKPO
INN
as per OKVED 2
as per OKOPF/OKFS
as per OKEI
Approval date
Mailing (acceptance) date
CODES
0710001
31.12.2019
56947007
4716016979
35.12
47/41
384
INN
7708096662
OGRN/OGRNI
1027 739127734
Notes
ASSET
1
S.1 Expl Notes*
S.3.2 Notes**
S.1 Expl Notes*
S.3.6 Notes**
S.2 Expl Notes*
S.3.3 Notes**
I. NON-CURRENT ASSETS
Intangible assets
Research and development results
Fixed assets,including:
land plots and natural resources
buildings, machinery and equipment, structures
other fixed assets
Income-bearing investments in tangible assets
S.3 Expl Notes*
S.3.7 Notes**
S.2 Expl Notes*
Financial investments
Deferred tax assets
Other non-current assets, including:
S.2 Expl Notes*
S.5.1 Expl Notes*
S.3.4 Notes**
S.3.11 Notes**
S.4 Expl Notes*
S.3.10 Notes**
S.5 Expl Notes*
S.3.9 Notes**
equipment for installation
investments in non-current assets
advances against non-current assets
other non-current assets
Total for Section I
II. CURRENT ASSETS
Inventory, including:
raw materials, materials and other similar assets
finished goods and goods for sale
WIP on core services to third parties
Value added tax on purchased assets
Accounts receivable, including:
Accounts receivable (payments are expected
over more than 12 months upon the balance sheet date),
including:
customers and consumers
advance payments made
other debtors
Accounts receivable (payments are expected within 12 months
upon the balance sheet date),including:
customers and consumers
amounts owed by members (founders) as share capital
payments
advance payments made
other debtors
S.3 Expl Notes*
S.3.8 Notes**
S.3.19 Notes**
S.3.11 Notes**
Financial investments (except cash equivalents)
Cash and cash equivalents
Other current assets
Total for Section II
BALANCE
Indicator
code
2
As of December
31, 2019
3
As of December
31, 2018
4
As of December
31, 2017
5
1110
1120
1130
1131
1132
1133
1140
1150
1160
1170
1171
1172
1173
1174
1100
1210
1211
1212
1213
1220
1230
1231
1232
1233
1234
1235
1236
1237
1238
1239
1240
1250
1260
1200
1600
4 658 225
950
991 719 785
1 744 070
985 725 021
4 250 694
–
66 038 914
–
269 095 933
32 897 293
211 655 187
24 298 857
244 596
1 331 513 807
11 676 657
11 675 592
–
1 065
973 489
131 956 157
85 477 009
3 741 290
6 778
954 319 673
1 744 010
949 044 246
3 531 417
–
57 702 933
–
251 183 633
37 726 421
191 292 474
21 832 613
332 125
1 266 954 307
10 937 851
10 937 851
–
–
915 376
169 855 975
92 515 178
2 673 277
82 442
878 328 073
1 753 458
873 401 377
3 173 238
–
84 064 907
–
285 625 335
33 460 088
230 629 349
21 265 668
270 230
1 250 774 034
9 749 040
9 749 040
–
–
650 020
128 379 075
77 882 865
83 338 840
–
2 138 169
46 479 148
90 683 714
–
1 831 464
77 340 797
76 393 401
–
1 489 464
50 496 210
34 285 535
–
31 232 620
–
36 388 248
–
614 922
11 578 691
25 735 205
30 434 073
34 699
1 644 465
44 463 712
6 578 091
31 772 829
48 165
270 554
13 837 408
2 051 190
33 409 107
27 568
200 810 280
220 108 287
174 266 000
1 532 324 087
1 487 062 594
1 425 040 034
Notes
LIABILITY
1
S.3.1 Notes**
S.3.1 Notes**
III. CAPITAL AND RESERVES
Share capital (contributed capital, authorized fund,
contributions of partners)
Shares repurchased
Revaluation of non-current assets
Additional capital (without revaluation)
Reserve capital
Undistributed profit (uncovered loss),
including:
Uncovered loss of past years
Undistributed profit of past years
Undistributed profit of the reporting year
including interim dividends
S.3.12 Notes**
S.5.3 Expl Notes*
S.3.13 Notes**
Total for Section III
IV. LONG-TERM LIABILITIES
Borrowings and loans
Deferred tax liabilities
Estimated liabilities
Other liabilities
Total for Section IV
V. SHORT-TERM LIABILITIES
Borrowings and loans
Accounts payable,
including:
suppliers and contractors
payables to employees
payables to state non-budgetary funds
taxes and fees payable
advances received
other creditors
amounts owed to the members (founders)
S.3.12 Notes**
Deferred income
Estimated liabilities
Other liabilities
Total for Section V Total
BALANCE
Indicator
code
2
As of December
31, 2019
3
As of December
31, 2018
4
As of December
31, 2017
5
1310
1320
1340
1350
1360
1370
1371
1372
1373
1374
1300
1410
1420
1430
1450
1400
1510
1520
1521
1522
1523
1524
1525
1526
1527
1530
1540
1550
1500
1700
637 332 662
637 332 662
637 332 662
–
319 635 669
31 867 163
24 419 781
125 807 737
–
301 169 595
31 867 163
21 610 434
98 413 848
–
285 993 481
31 867 163
19 492 352
62 885 484
–
78 898 207
46 909 530
(11 229 301)
1 139 063 012
–
98 413 848
–
–
1 090 393 702
–
62 885 484
–
–
1 037 571 142
196 622 387
70 481 551
–
27 518 412
294 622 350
224 463 734
60 827 426
–
17 708 107
302 999 267
233 862 457
55 006 638
–
17 242 803
306 111 898
30 436 665
64 304 991
22 245 391
68 223 409
32 293 176
19 038
594 702
6 950 080
8 933 134
4 020 628
11 494 233
625 671
3 271 398
–
98 638 725
39 300 899
18 516
660 238
11 041 882
13 208 422
3 778 992
214 460
643 517
2 557 308
–
93 669 625
23 687 193
54 484 828
30 383 436
19 407
533 822
7 278 959
12 501 008
3 621 211
146 985
668 204
2 516 769
–
81 356 994
1 532 324 087
1 487 062 594
1 425 040 034
* Explanatory Notes to the Balance Sheet and Statement of Financial Position for 2019
** Notes to the Balance Sheet and the Statement of Financial Result for 2019
Chief Executive A.E. Murov
Chief Accountant A.P. Noskov
(signature) (print full name)
(signature) (print full name)
20 February 2020
The Annual Accounting and Financial Statements of PJSC FGC UES for 2019 is given in Appendix 11.
The Annual Accounting and Financial Statements of PJSC FGC UES for 2019 is given in Appendix 11.
224
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
225
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
Indicator Description
Notes
FOR REFERENCE
S.3.3 of Notes**
S.3.16 of Notes**
Result of the fixed assets revaluation, not included in the net profit (loss)
for the period
Result of the other operations, not included in the net profit (loss)
for the period
Total profit or loss for the period
Basic profit (loss) per share
Diluted profit (loss) per share
* Explanatory Notes to the Balance Sheet and Statement of Financial Position for 2019
** Notes to the Balance Sheet and the Statement of Financial Result for 2019
Form 0710002 с. 2
As of December
2019.
As of December
2018.
22 209 142
15 518 685
80 347 973
0,0456
71 705 620
0,0441
Chief Executive A.E. Murov
Chief Accountant A.P. Noskov
(signature) (print full name)
(signature) (print full name)
20 February 2020
STATEMENT
OF FINANCIAL
RESULTS
as of 31 December 2019
Organization Public Joint-Stock Company
“Federal Grid Company of Unified Energy System”
Taxpayer Identification Number (INN)
Type of activity power transmission
Form of incorporation / form of ownership
public joint-stock company / mixed Russian assets with a federal share
Unit of measurement: RUB thousand.
(as revised by Decrees of the Russian Ministry of Finance
No. 57n dated April 6, 2015,
No. 41n dated March 6, 2018,
No. 61n dated April 19, 2019)
OKUD Form No.2
Date (year, month, day)
as per OKPO
CODES
0710002
31.12.2019
56947007
INN
4716016979
as per OKVED
as per OKOPF/OKFS
as per OKEI
Date of approval
Date of sending (acceptance)
35.12
47/41
384
INDICATOR
Notes
description
1
Income and expenses from ordinary activities
Revenue from sale of goods, products and services
(net of VAT, excise duties and other similar mandatory payments),
including:
services for electric power transmission
services for technological connection
other activity
S.6 of Expl Notes*
Production cost of goods, products and services sold,
including:
services for electric power transmission
services for technological connection
other activity
Gross profit (2110 + 2120)
Commercial expenses
Administrative expenses
Profit (loss) from sales (2100 + 2210 + 2220)
Income from participation in other companies
Interest receivable
Interests payable
Other income
quoted financial asset revaluation surplus
S.6 of Expl Notes*
S.3.15 of Notes**
S.3.15 of Notes**
Other expenses
quoted financial asset revaluation losses
Profit (loss) before tax
(2200 +2310 + 2320 + 2330 + 2340 + 2350)
Current profit tax, including:
constant tax liabilities
Change in deferred tax liabilities
Deferred tax assets changes
Other, including:
S.3.5 of Notes**
S.3.5 of Notes**
S.3.5 of Notes**
Other similar mandatory payments
Profit tax adjustment for the previous periods
Net profit (loss) for the reporting period
Code
2
2110
2111
2112
2119
2120
2121
2122
2129
2100
2210
2220
2200
2310
2320
2330
2340
2341
2350
2351
2300
2410
2421
2430
2450
2460
2461
2462
2400
For the reporting
period
For the same
period
of the previous
year
3
4
242 700 173
240 294 489
223 143 743
17 235 031
2 321 399
(174 447 268)
(173 060 822)
(112 698)
(1 273 748)
68 252 905
–
(8 953 311)
59 299 594
1 746 883
8 534 122
(4 913 722)
24 719 384
10 350 931
(14 809 682)
–
74 576 579
(6 586 065)
1 324 875
(9 994 072)
339 947
(197 558)
(102 605)
(94 953)
58 138 831
213 619 982
24 300 051
2 374 456
(170 825 202)
(169 263 087)
(104 667)
(1 457 448)
69 469 287
–
(8 490 827)
60 978 460
2 452 691
8 108 953
(3 978 163)
25 661 516
11 839 069
(19 815 686)
(221 333)
73 407 771
(11 394 520)
2 533 754
(5 932 669)
111 881
(5 528)
(5 528)
–
56 186 935
The Annual Accounting and Financial Statements of PJSC FGC UES for 2019 is given in Appendix 11.
The Annual Accounting and Financial Statements of PJSC FGC UES for 2019 is given in Appendix 11.
226
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
227
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
STATEMENT
OF CHANGES
IN EQUITY
for 2019
Organization Public Joint-Stock Company
“Federal Grid Company of Unified Energy System”
Taxpayer Identification Number (INN)
Economic activity power transmission
Form of legal entity’s incorporation / form of ownership
public joint-stock company / mixed Russian assets with a federal share
Unit of measurement: thousand RUB
Annex No. 2 to Decree of the Russian Ministry of Finance
No. 66n dated July 2, 2010 (as revised by Decrees of the Russian
Ministry of Finance No. 124n dated October 5, 2011,
No. 57n dated April 6, 2015,
OKUD Form
Date (day, month, year)
as per OKPO
Codes
0710004
31.12.2019
56947007
INN
4716016979
as per OKVED
as per OKOPF/OKFS
as per OKEI
Date of approval
Date of sending (acceptance)
35.12
47/41
384
INDICATOR
DESCRIPTION
increase of share
denomination
reorganization of legal entity
Reduction of capital value – total:
including:
loss
property revaluation
expenses relating directly
to the reduction of capital value
decrease of share denomination
reduction of shares quantity
reorganization of legal entity
dividends
other
Changes in the additional capital
Changes in the reserve capital
CAPITAL VALUE AS OF
DECEMBER 31, 2019.3
Code
3315
3316
3320
3321
3322
3323
3324
3325
3326
3327
3328
3330
3340
3300
Treasury shares
repurchased
from
shareholders
Authorized
capital
Additional
capital
Reserve
capital
–
–
–
х
х
х
–
–
–
х
–
х
х
637 332 662
–
–
–
х
х
х
–
–
–
х
–
х
х
–
–
–
–
х
–
–
–
–
–
х
–
(3 743 068)
х
351 502 832
х
–
–
х
х
х
х
х
–
х
–
–
2 809 347
24 419 781
Undistributed
profits
(uncovered loss)
–
Total
х
–
(31 678 663)
–
(31 678 663)
–
–
–
–
–
–
(31 678 663)
–
3 743 068
(2 809 347)
125 807 737
–
–
–
–
–
–
(31 678 663)
–
х
х
1 139 063 012
1. CHANGES IN EQUITY
2. CORRECTIONS DUE TO CHANGES IN THE ACCOUNTING POLICY AND ERRORS ELIMINATION
INDICATOR
DESCRIPTION
CAPITAL VALUE AS OF
DECEMBER 31, 2017.1
For 2018. 2
Increase in capital value – total,
including:
net profit
property revaluation
income relating directly to
the increase in capital value
additional issue of shares
increase of share denomination
reorganization of legal entity
other
INDICATOR
DESCRIPTION
Reduction of capital value – total:,
including:
loss
property revaluation
expenses relating directly
to the reduction of capital value
decrease of share
denomination
reduction of shares quantity
reorganization of legal entity
dividends
Changes in the additional capital
Changes in the reserve capital
CAPITAL VALUE AS OF
DECEMBER 31, 2018.2
For 2019.3
Increase in capital value - total,
including:
net profit
property revaluation
income relating directly
to the increase in capital value
additional issue of shares
Code
Authorized
capital
Treasury shares
repurchased
from
shareholders
Additional
capital
Reserve
capital
Undistributed
profits
(uncovered loss)
Total
3100
637 332 662
–
317 860 644
19 492 352
62 885 484
1 037 571 142
3210
3211
3212
3213
3214
3215
3216
3217
Code
3220
3221
3222
3223
3224
3225
3226
3227
3230
3240
3200
3310
3311
3312
3313
3314
–
х
х
–
–
–
–
–
–
15 518 685
–
56 186 935
71 705 620
х
х
х
–
–
–
–
х
15 518 685
–
–
–
–
–
х
х
х
х
х
–
–
56 186 935
–
–
х
–
56 186 935
15 518 685
–
–
х
–
–
–
–
Form 0710023 p. 2
Treasury shares
repurchased
from
shareholders
Authorized
capital
Additional
capital
Reserve
capital
Undistributed
profits
(uncovered loss)
Total
–
х
х
х
–
–
–
х
х
х
637 332 662
–
х
х
х
–
–
х
х
х
–
–
–
х
х
х
–
–
х
х
х
–
–
х
–
–
–
–
–
х
(342 571)
х
333 036 758
22 209 142
х
22 209 142
–
–
–
(18 883 060)
(18 883 060)
х
х
х
х
х
–
х
–
2 118 082
21 610 434
–
–
–
–
–
–
–
–
–
–
–
–
(18 883 060)
342 571
(2 118 082)
98 413 848
(18 883 060)
х
х
1 090 393 702
–
х
х
х
х
58 138 831
80 347 973
58 138 831
–
–
58 138 831
22 209 142
–
х
–
INDICATOR
DESCRIPTION
Equity – total
before corrections
correction due to:
changes in the accounting policy
errors elimination
after corrections
including:
undistributed profits
(uncovered loss)
before corrections
correction due to:
changes in the accounting policy
errors elimination
after corrections
other capital itemssubject to
corrections:
(per items)
before corrections
correction due to:
changes in the accounting policy
errors elimination
after corrections
INDICATOR
DESCRIPTION
Net assets
Code
3400
3410
3420
3500
3401
3411
3421
3501
3402
3412
3422
3502
Code
3600
1 The year preceding the previous year is indicated.
2 The previous year is indicated.
3 The reporting year is indicated.
Changes in equity for 2018.2
As of December
31 2017.1
due to net
profit(loss))
due to other
factors
As of December
31 2018.3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3. NET ASSETS
As of December 31,
2019.3
As of December 31
2018.2
As of December 31
2017.1
1 139 688 683
1 091 037 219
1 038 239 346
Chief Executive A.E. Murov
Chief Accountant A.P. Noskov
(signature) (print full name)
(signature) (print full name)
20 February 2020
The Annual Accounting and Financial Statements of PJSC FGC UES for 2019 is given in Appendix 11.
The Annual Accounting and Financial Statements of PJSC FGC UES for 2019 is given in Appendix 11.
228
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
229
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
MAIN FORMS OF ANNUAL FINANCIAL
STATEMENTS OF PJSC FGC UES FOR 2019 AS PER RAS
CASH
FLOW
STATEMENT
for 2019
Organization Public Joint-Stock Company
“Federal Grid Company of Unified Energy System”
Taxpayer Identification Number (INN)
Economic activity power transmission
Form of legal entity’s incorporation / form of ownership
public joint-stock company / mixed Russian assets with a federal share
Unit of measurement: thousand RUB
INDICATOR DESCRIPTION
1
CASH FLOWS FROMCURRENT TRANSACTIONS
Receipts – total,
including:
from sale of products, goods,
work and services
lease payments, license fees, royalties, commission charges
and other similar payments
from resale of financial investments
other receipts
Payments - total, including:
to suppliers (contractors) for raw materials, materials, work
and services
remuneration of labor
debenture interest
corporate tax
other payments
Balance of cash flows from current transactions
CASH FLOWS FROMINVESTMENT TRANSACTIONS
Receipts – total, including:
from sale of fixed assets
(except financial investments)
from sale of other companies’ shares (participatory interest)
from repayment of granted loans, from sale of debt securities
(claims for cash against third parties)
dividends, interest on debt financial investments and other similar
income from participatory interest in other companies
other receipts
Payments – total, including::
payments associated with the acquisition, establishment,
upgrading, reconstruction and preparation for the use of fixed
assets
from purchase of other companies’ shares (participatory interest)
from purchase of debt securities (claims for cash against third
parties), granting loans to third parties
Annex to Decree of the Russian Ministry of Finance
No. 66n dated July 2, 2010
(as revised by Decree of the Russian Ministry of Finance
No. 124n dated October 5, 2011,
No. 57n dated April 6, 2015,
No. 61n dated April 19, 2019)
OKUD Form
Date (day, month, year)
as per OKPO
Codes
0710004
31.12.2019
56947007
INN
4716016979
as per OKVED
as per OKOPF/OKFS
as per OKEI
Date of approval
Date of sending (acceptance)
35.12
47/41
384
Code
2
4110
4111
4112
4113
4119
4120
4121
4122
4123
4124
4129
4100
4210
4211
4212
4213
4214
4219
4220
4221
4222
4223
FOR 2019.
FOR 2018.
3
4
257 011 312
246 796 788
242 382 294
229 506 983
977 496
1 314 924
–
–
13 651 522
15 974 881
(126 925 852)
(119 406 103)
(62 530 500)
(57 645 661)
(18 502 284)
(5 124 376)
(8 410 778)
(32 357 914)
130 085 460
(17 662 948)
(4 441 515)
(10 938 031)
(28 717 948)
127 390 685
43 812 598
19 459 972
161 136
190 442
32 140 976
7 964 060
3 708 155
12 479 129
3 546 426
3 082 246
–
–
(135 367 204)
(119 219 445)
(96 590 932)
(91 302 730)
(74 062)
(504 276)
(27 820 933)
(17 141 868)
INDICATOR DESCRIPTION
1
debenture interest included in the investment asset value
other payments
Balance of cash flows from investment transactions
CASH FLOWS FROMFINANCIAL TRANSACTIONS
Receipts – total, including:
obtaining of credits and loans
monetary contributions of owners (members)
from issue of shares, participatory interest increase
from issue of bonds, promissory notes and other debt securities
other receipts
Payments – total, including:
to owners (members) due to repurchase of shares (participatory
interest) of their organization or their cessation
of membership
for payment of dividends and other distribution payments profit
to owners (members)
due to the payment of promissory notes and other debt securities,
repayment of credits and loans
other payments
Balance of cash flows from financial transactions
Cash flow balance for the reporting period
Cash and cash equivalents balance as of the beginning of the
reporting year
Cash and cash equivalents balance as of the end of the reporting
year
Influence of foreign currency change versus RUB
0710005 p.2
FOR 2019.
FOR 2018.
3
4
(10 881 272)
(10 270 464)
(5)
(107)
(91 554 606)
(99 759 473)
–
–
–
–
–
–
10 039 700
40 950
–
–
9 998 750
–
(39 869 610)
(39 307 190)
–
–
(20 449 361)
(18 884 671)
(19 420 249)
(20 422 519)
(39 869 610)
(1 338 756)
31 772 829
–
(29 267 490)
(1 636 278)
33 409 107
30 434 073
31 772 829
Code
2
4224
4229
4200
4310
4311
4312
4313
4314
4319
4320
4321
4322
4323
4329
4300
4400
4450
4500
4490
Chief Executive A.E. Murov
Chief Accountant A.P. Noskov
(signature) (print full name)
(signature) (print full name)
20 February 2020
The Annual Accounting and Financial Statements of PJSC FGC UES for 2019 is given in Appendix 11.
The Annual Accounting and Financial Statements of PJSC FGC UES for 2019 is given in Appendix 11.
230
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
231
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
Ernst & Young LLC
Sadovnicheskaya Nab., 77, bld. 1
Moscow, 115035, Russia
Tel: +7 (495) 705 9700
+7 (495) 755 9700
Fax: +7 (495) 755 9701
www.ey.com/ru
ООО «Эрнст энд Янг»
Россия, 115035, Москва
Садовническая наб., 77, стр. 1
Тел.: +7 (495) 705 9700
+7 (495) 755 9700
Факс: +7 (495) 755 9701
ОКПО: 59002327
ОГРН: 1027739707203
ИНН: 7709383532
www.ey.com/ru
Independent auditor’s report
To the Shareholders and Board of Directors of
Public Joint-Stock Company
“Federal Grid Company of Unified Energy System”
Opinion
We have audited the consolidated financial statements of Public Joint-Stock Company “Federal Grid
Company of Unified Energy System” and its subsidiaries (the Group), which comprise the consolidated
statement of financial position as at 31 December 2019, and the consolidated statement of profit or loss
and other comprehensive income, consolidated statement of cash flows and consolidated statement of
changes in equity for 2019, and notes to the consolidated financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at 31 December 2019 and its consolidated
financial performance and its consolidated cash flows for 2019 in accordance with International Financial
Reporting Standards (IFRSs).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit
of the consolidated financial statements section of our report. We are independent of the Group in
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (including International Independence Standards) (IESBA Code) together with
the ethical requirements that are relevant to our audit of the consolidated financial statements in the
Russian Federation, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the consolidated financial statements of the current period. These matters were addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial
statements. The results of our audit procedures, including the procedures performed to address the matters below, provide
the basis for our audit opinion on the accompanying consolidated financial statements.
Key audit matter
How our audit addressed the key audit matter
Impairment of non-current assets
As part of our audit procedures, we also assessed the
assumptions and methodologies applied by the Group, in
particular, those relating to projected total revenue from
electricity transmission, fee solutions, operating and
capital expenditures, long-term rates of fee growth and
discount rates. We tested the incoming data imported in
the model and the arithmetic accuracy of the model used
to determine the recoverable amount in the impairment
test of property, plant and equipment. We engaged
valuation specialists to analyze the model used to
determine the recoverable amount in the impairment test
of property, plant and equipment. We also analyzed the
sensitivity of the model to changes in the main indicators
of assessment and the Group’s disclosures of
assumptions on which the results of impairment testing
largely depend
Due to the existence of impairment indicators in
respect of non-current assets as of 31 December
2019, the Group performed impairment testing.
The value-in-use of property, plant and equipment
forming a significant share of the Group’s
non-current assets, as of 31 December 2019, was
determined by the projected cash flow method.
The impairment testing of property, plant and
equipment was one of the most significant matters
for our audit because the property, plant and
equipment balance forms a significant part of the
Group’s assets at the reporting date, and because
management’s assessment of the value-in-use is
complex and largely subjective and is based on
assumptions, in particular, on projected electricity
transmission volumes, transmission fees, as well
as operating and capital expenditures that depend
on the expected future market or economic
conditions in the Russian Federation.
Information on the results of the impairment
analysis of non-current assets is disclosed by the
Group in Note 6 to the consolidated financial
statements.
Allowance for expected credit losses on trade and other receivables
The allowance for expected credit losses on trade
and other receivables was one of the most
significant matters for our audit due to the material
balances of receivables as of 31 December 2019,
as well as due to the fact that management’s
assessment of the possible recoverability of these
receivables is based on assumptions, in particular,
on the predicted solvency of the Group’s
customers.
Information on the allowance for expected credit
losses on receivables is disclosed in Notes 11
and 29 to the consolidated financial statements.
We analyzed the Group’s accounting policy on receivables with
respect to the allowance for expected credit losses.
We considered the calculation of expected credit losses
performed by the Group’s management, which is based on
credit losses experience adjusted for projected factors specified
for the Group’s customers.
As part of our audit procedures, we also assessed the
assumptions used by Group’s management, as well as analysis
of credit risk and financial performance of counterparties,
analysis of receivables payments, ageing structure and overdue
receivables and assessed the applicable levels of allowance for
expected credit losses.
We also assessed the information on allowance for expected
credit losses disclosed in the consolidated financial statements
232
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2019 Annual Report
233
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
Other information included in Annual report
Other information consists of Annual Report of Public Joint-Stock Company “Federal Grid Company of Unified
Energy System” for 2019 other than the consolidated financial statements and our auditor’s report thereon.
Management is responsible for the other information. The Annual Report is expected to be made available to us
after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other information is
materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
Responsibilities of management and Audit Committee of
Board of Directors for the consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with IFRSs, and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or
has no realistic alternative but to do so.
Audit Committee of Board of Directors are responsible for overseeing the Group’s financial reporting process.
Auditor’s responsibilities for the audit of
the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management. ;
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.;
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with Audit Committee of Board of Directors regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide Audit Committee of Board of Directors with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with Audit Committee of Board of Directors, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
The partner in charge
of the audit resulting in this independent
auditor’s report is
T.L. Okolotina.
T.L. Okolotina
Partner
Ernst & Young LLC
4 March 2020
Details of the audited entity
Name: Public Joint-Stock Company “Federal Grid Company of Unified Energy System”
Record made in the State Register of Legal Entities on 20 August 2002,
State Registration Number 1024701893336.
Address: 117630, Russia, Moscow, Academika Chelomeya street, 5A.
Details of the auditor
Name: Ernst & Young LLC
Record made in the State Register of Legal Entities on 5 December 2002,
State Registration Number 1027739707203.
Address: Russia 115035, Moscow, Sadovnicheskaya naberezhnaya, 77, building 1.
Ernst & Young LLC is a member of Self-regulatory organization of auditors Association
“Sodruzhestvo”.
Ernst & Young LLC is included in the control copy of the register of auditors
and audit organizations, main registration number 12006020327.
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PJSC FGC UES
2019 Annual Report
235
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
CONSOLIDATED
STATEMENT
OF FINANCIAL
POSITION
(in millions of Russian Rouble unless otherwise stated)
Indicator description
1
ASSETS
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Investments in associates and joint ventures
Financial investments
Deferred income tax assets
Trade and other accounts receivable
Advances given and other non-current assets
Total non-current assets
Current assets
Cash and cash equivalents
Bank deposits
Trade and other accounts receivable
Income tax prepayments
Inventories
Advances given and other current assets
Assets held for sale
Total current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Share capital: Ordinary shares
Treasury shares
Share premium
Reserves
Retained earnings
Equity attributable to shareholders of FGC UES
Non-controlling interests
Total equity
Non-current liabilities
Deferred income tax liabilities
Non-current debt
Trade and other accounts payable
Advances from customers
Notes
31 December
2019
31 December
2018
2
6
7
8
9
10
17
11
12
13
14
11
15
12
32
16
16
16
17
18
21
3
4
1,024,901
937,277
12,719
6,609
1,296
45,711
275
72,084
2,107
-
6,638
1,442
37,956
207
72,987
1,018
1,165,702
1,057,525
37,077
25,789
41,823
93
16,968
2,576
124,326
313
124,639
1,290,341
637,333
(4,719)
10,501
30,937
227,558
901,610
174
901,784
46,871
208,343
14,121
8,525
37,618
3,811
68,025
56
17,037
3,503
130,050
21,467
151,517
1,209,042
637,333
(4,719)
10,501
25,167
170,699
838,981
181
839,162
29,586
224,585
12,055
2,441
Indicator description
1
Taxes other than on income payable
Government grants
Retirement benefit obligations
Total non-current liabilities
Current liabilities
Accounts payable to shareholders of FGC UES
Current debt and current portion of non-current debt
Trade and other accounts payable
Advances from customers
Taxes, other than on income payable
Provisions for liabilities and charges
Income tax payable
Total current liabilities
Total liabilities
Notes
2
19
16
18, 20
21
22
(continued)
31 December
2019
31 December
2018
3
1,705
811
6,955
287,331
11,388
31,444
41,580
8,872
4,265
1,202
2,475
101,226
388,557
4
505
867
5,950
275,989
213
22,224
46,835
13,227
6,863
683
3,846
93,891
369,880
TOTAL EQUITY AND LIABILITIES
1,290,341
1,209,042
Authorised for issue and signed on behalf of the Management Board:
04 March 2020
Chairman A.E. Murov
of the Management
Board
Head of Accounting A.P. Noskov
and Financial
Reporting
Chief Accountant
The accompanying notes are an integral part of these Consolidated Financial Statements
The full text of the Consolidated Financial Statements of PJSC FGC UES for 2019 is given in Appendix 12.
The full text of the Consolidated Financial Statements of PJSC FGC UES for 2019 is given in Appendix 12.
236
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PJSC FGC UES
2019 Annual Report
237
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
CONSOLIDATED
STATEMENT
OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
(in millions of Russian Rouble unless otherwise stated)
Indicator description
1
Revenues
Other operating income
Operating expenses
Gain on disposal of assets
Accrual of allowance for expected credit losses
(Impairment)/Reversal of impairment of property, plant and equipment, net
Operating profit
Finance income
Finance costs
Disposal of associate
Share of profit of associates and joint ventures
Profit before income tax
Income tax expense
Profit for the year
Other comprehensive income/(loss)
Items that will not be reclassified subsequently to profit or loss
Change in fair value of financial investments
Remeasurements of retirement benefit obligations
Income tax relating to items that will not be reclassified
Total items that will not be reclassified
to profit or loss
Items that are or may be reclassified subsequently to profit or loss
Foreign currency translation difference
Total items that are or may be reclassified
to profit or loss
Other comprehensive income for the period,
net of income tax
Total comprehensive income for the year
Year ended
31 December
2019
Year ended
31 December
2018
Notes
2
23
23
24
32
11
6
25
26
9
9
17
10
19
17
9
3
249 611
6 291
4
253,979
6,474
(155 282)
(151,210)
10 444
(1 624)
(6 726)
102,714
13,796
(6,896)
(62)
144
109,696
(23,058)
86,638
9,921
(876)
(1,378)
7,667
(228)
(228)
7,439
-
(4,634)
2,248
106,857
12,981
(4,862)
-
125
115,101
(22,256)
92,845
1,613
(134)
6,717
8,196
181
181
8,377
94,077
101,222
Indicator description
1
Profit attributable to:
Shareholders of FGC UES
Non-controlling interests
Total comprehensive income attributable to:
Shareholders of FGC UES
Non-controlling interests
Earnings per ordinary share for profit attributable to shareholders
of FGC UES – basic and diluted (in Russian Rouble)
(continued)
Year ended
31 December
2019
Year ended
31 December
2018
Notes
2
27
27
3
4
86,598
40
94,037
40
0.069
92,809
36
101,186
36
0.074
The full text of the Consolidated Financial Statements of PJSC FGC UES for 2019 is given in Appendix 12.
The full text of the Consolidated Financial Statements of PJSC FGC UES for 2019 is given in Appendix 12.
238
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
239
The accompanying notes are an integral part of these Consolidated Financial Statements
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
CONSOLIDATED
STATEMENT
OF CASH FLOWS
(in millions of Russian Rouble unless otherwise stated)
Indicator description
1
CASH FLOWS FROM OPERATING ACTIVITIES:
Profit before income tax
Adjustments to reconcile profit before income tax
to net cash provided by operations
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Loss/(gain) on disposal of property, plant and equipment
Amortisation of intangible assets
Impairment/(reversal of impairment) of property,
plant and equipment, net
Gain on disposal of assets
Share of profit of associates and joint ventures
Accrual of allowance for expected credit losses
Accrual/(reversal) of provision for liabilities and charges
Disposal of an associate
Finance income
Finance costs
Other non-cash items
Operating cash flows before working capital changes, income tax paid
and other changes in long-term assets and liabilities
Decrease in long–term trade and other accounts receivable
(Increase)/decrease in long-term advances given
and other non-current assets
(Decrease)/increase in long-term accounts payable
Increase in long-term advances from customers
Working capital changes:
Decrease/(increase) in trade and other accounts receivable
Decrease in advances given and other current assets
Decrease/(increase) in inventories
(Decrease)/increase in trade and other payables
Increase/(decrease) in provisions for liabilities and charges
(Decrease)/increase in advances from customers
Income tax paid
Net cash flows generated by operating activities
Year ended
31 December
2019
Year ended
31 December
2018
3
4
Notes
2
109,696
115 101
24
7
24
24
6
32
9
11
22, 24
9
25
26
35,564
899
1,094
1,405
6,726
(10,444)
(144)
1,624
863
62
32,346
-
(310)
1,154
(2,248)
-
(125)
4,634
(778)
-
(13,796)
(12,981)
6,896
(132)
4,862
(2)
845
(936)
(5,027)
7,824
7,865
1,727
362
(811)
519
(7,841)
(8,606)
136,234
-
265
1,194
2,422
(9,747)
2,785
(967)
778
(3,700)
673
(11,286)
124,070
Indicator description
1
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Purchase of intangible assets
Redemption of promissory notes
Placement of bank deposits
Redemption of bank deposits
Dividends received
Loans given
Repayment of loans given
Proceeds from sale of financial investments
Interest received
(continued)
Year ended
31 December
2019
Year ended
31 December
2018
3
4
Notes
2
(92,315)
(88,941)
484
(2,194)
10
1,029
(2,049)
10
(30,554)
(24,134)
8,830
1,463
(5)
23
32,141
3,048
20,323
2,251
(53)
23
3,708
3,194
Net cash flows used in investing activities
(79,069)
(84,639)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from current and non-current borrowings
Repayment of current and non-current borrowings
Repayment of principal portion of lease liabilities
Acquisition of non-controlling interests
Interest paid
Net cash flows used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
18
18
18
16
13
13
22
(19,443)
(783)
(20,205)
(74)
(17,223)
(57,706)
(541)
37,618
37,077
10,054
(20,436)
(115)
(18,635)
(504)
(14,712)
(44,348)
(4,917)
42,535
37,618
140,313
141,653
Dividends paid
The full text of the Consolidated Financial Statements of PJSC FGC UES for 2019 is given in Appendix 12.
The full text of the Consolidated Financial Statements of PJSC FGC UES for 2019 is given in Appendix 12.
240
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
241
The accompanying notes are an integral part of these Consolidated Financial Statements
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
MAIN FORMS OF CONSOLIDATED
FINANCIAL STATEMENTS OF PJSC FGC UES FOR 2019 AS PER IFRS
CONSOLIDATED
STATEMENT
OF CHANGES IN EQUITY
(in millions of Russian Rouble unless otherwise stated)
Indicator description
Notes
Share
capital
Share
premium
Treasury
shares Reserves
Retained
earnings
Total
Non-con-
trolling
interests
Total
equity
Indicator description
Notes
Share
capital
Share
premium
Treasury
shares Reserves
Retained
earnings
Total
Attributable to shareholders of FGC UES
Attributable to shareholders of FGC UES
(continued)
Non-con-
trolling
interests
Total
equity
As at 1 January 2019
637,333
10,501
(4,719)
25,167
170,699
838,981
181
839,162
As at 1 January 2018
637,333
10,501
(4,719)
40,482
74,152
757,749
(603)
757,146
Total comprehensive income for
the year
Profit for the year
Other comprehensive income/
(loss), net of related income tax
Change in fair value
of financial investments,
net of tax
Remeasurements of retirement
benefit obligations, net of tax
Foreign currency translation
difference
Total other comprehensive
income
Total comprehensive income
for the year
Transfer of accumulated
revaluation reserve at disposal
of financial investments
Dividends declared
Acquisition of non-controlling
interests
10, 16
16, 19
9, 16
10
16
4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
86,598
86,598
40
86,638
Profit for the year
Total comprehensive income
for the year
8,555
(888)
(228)
7,439
–
–
–
–
8,555
(888)
(228)
7,439
–
–
–
–
8,555
(888)
(228)
7,439
7,439
86,598
94,037
40
94,077
(1,669)
1,669
–
–
–
–
–
(31,380)
(31,380)
(1)
(31,381)
(28)
(28)
(46)
(74)
Other comprehensive income/
(loss), net of related income tax
Change in fair value
of financial investments,
net of tax
Remeasurements of retirement
benefit obligations, net of tax
Foreign currency translation
difference
Total other comprehensive
income
Total comprehensive income
for the year
Transfer of accumulated
revaluation reserve at disposal
of financial investments
Dividends declared
Acquisition of non-controlling
interests
10, 16
16, 19
9, 16
10
16
4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
92,809
92,809
36
92,845
8,458
(262)
181
8,377
–
–
–
–
8,458
(262)
181
8,377
–
–
–
–
8,458
(262)
181
8,377
8,377
92,809
101,186
36
101,222
(23,692)
23,692
–
–
–
–
–
(18,702)
(18,702)
–
(18,702)
(1,252)
(1,252)
748
(504)
As at 31 December 2019
637,333
10,501
(4,719)
30,937
227,558
901,610
174
901,784
As at 31 December 2018
637,333
10,501
(4,719)
25,167
170,699
838,981
181
839,162
The full text of the Consolidated Financial Statements of PJSC FGC UES for 2019 is given in Appendix 12.
The full text of the Consolidated Financial Statements of PJSC FGC UES for 2019 is given in Appendix 12.
242
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
243
The accompanying notes are an integral part of these Consolidated Financial Statements
CORPORATE GOVERNANCE REPORTFINANCIAL REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORT
ADDITIONAL
INFORMATION
INFORMATION ON THE REPORT
INFORMATION ON
THE REPORT
GRI 101
Reporting cycle
Annual, for the period from 1 January 2019 through 31 December 2019. (GRI 102-50,
GRI 102-52)
Report format
Integrated Annual Report of PJSC FGC UES.
International Reporting
Standards
GRI Sustainability Reporting Standards GRI 102-54 (Core option, Compliance Table, see
section Compliance with GRI and Standards).
Industry Application GRI G4 for the electric power industry, The Electric Utilities Sector
Disclosures.
International Integrated Reporting Standard, The International Framework (see
the Compliance Table in section Compliance with GRI and Standards).
AA1000 Stakeholder Engagement Standard (2015).
Russian Reporting Standards
Regulation No. 454-P on disclosure of information by issuers of securities approved by
the Central Bank of the Russian Federation, dated 30 December 2014.
Corporate Governance Code recommended by the Bank of Russia (Letter No. 06-52/2463
dated 10 April 2014).
Resolution No. 1214 of the Government of the Russian Federation, dated
31 December 2012 on improvement of the Procedure of Management of Open Joint Stock
Companies whose Shares are in Federal Ownership, and Federal State Unitary Enterprises.
Date of previous report
publication
July 2019. GRI 102-51
Scope of the Report
PJSC FGC UES, including all branches (MPS and EMPS).
Verification of reporting
information
Production indicators and indicators in the field of financial and economic activity of
PJSC FGC UES, stated in the Report, are presented on the basis of indicators of accounting
statements of PJSC FGC UES, prepared in accordance with Russian Accounting Standards.
Individual financial and economic indicators are presented in accordance with the consolidated
financial statements as per IFRS and are followed by relevant notes.
As compared to the previous year, no indicators were restated. GRI 102-48
The reporting information is confirmed by the conclusions of:
independent audit organisation ERNST & YOUNG LLC, confirming the reliability
of the accounting (financial) statements as per RAS (Auditors’ report on the financial
statements for 2019 is stated in section Financial Statements) and the reliability
of the consolidated financial statements as per IFRS (Independent auditor’s report is given
in section Financial Statements);
independent audit organisation LLC FBK, confirming the reliability of the non-financial
statements, as well as compliance of the Report with the main application variant
of GRI SRS Standards and the International Integrated Reporting Standard. An auditor
is chosen on a competitive basis (Auditor’s Report of an independent auditor is given
in section Additional Information) GRI 102-56;
representatives of the main stakeholders in the course of the public Report endorsement
procedure (the Conclusion on the public Report endorsement is given in section Additional
information).
PJSC FGC UES
2019 Annual Report
245
CORPORATE GOVERNANCE REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORTFINANCIAL REPORT INFORMATION ON THE REPORT
INFORMATION ON THE REPORT
Report preparation process
The purpose of the Report preparation is to inform interested parties about the Company’s activities:
strategy and mission, social responsibility policy and sustainability of business development, key events
and results of activities, impact on the economy, society, environment, and on interaction with
stakeholders.
The Report is prepared in accordance with the principles of determining the content of the Report and with
the reporting information quality principles GRI SRS.
Materiality determination process
GRI 102-46
While preparing this Report, the Company,
together with representatives of the groups
of main stakeholders, identified material
topics for disclosure in the Report.
Representatives of the groups of main
stakeholders (21 respondents representing
external stakeholders and 60 respondents
representing internal stakeholders) were
questioned. Based on the results
of the survey, a materiality matrix was
formed.
Respondent reach when
preparing the Report
74
81
61
2017
2018
2019
GRI 102-47
Materiality matrix
Respondents assessed the material topics by two
parameters:
mpact of the topic on assessments and decision
making by the stakeholders;
impact of the Company on the economy, environment
and social sphere (within the scope of the topic).
Based on the results of the survey, a materiality matrix
was formed. On the aggregate scores, the topics are
divided into three groups according to the degree
of materiality:
Group I — material topics with more than 2 points
for both parameters;
Group II — less material topics with 1.5 to 2 points
for both parameters;
Group III — immaterial topics with less than
1.5 points for at least one parameter.
Scope of topics: PJSC FGC UES, including all branches
(MPS and EMPS). GRI 103-1
No significant changes in the scope and coverage
of disclosed topics compared to previous reports.
GRI 102-49
3.00
2.00
1.00
17
14
6
19
7
3
15
12
5
4
13
10
18
9
20
24
8
11
1
2
16
Group I
Group II
22
23
21
Refer to section
Compliance with
GRI and
Standards
for information on
correlation between
material topics and
GRI SRS topics.
i
i
s
n
o
s
c
e
d
d
n
a
t
n
e
m
s
s
e
s
s
a
e
h
t
n
o
t
c
a
p
m
l
s
r
e
d
o
h
e
k
a
t
s
y
b
e
d
a
m
Material topics of the Report
Group I
Implementation of infrastructure projects, development of the Unified National Electric Grid
Reliability and quality of electric power supplied to consumers
Tariff setting
Efficiency of infrastructure operation
Efficiency of investment activities (capital construction)
Innovative activities, scientific and technical development
Implementation of digital technologies and solutions
1
2
3
4
5
6
7
12
Improving economic efficiency and financial sustainability
14 Corruption management
15 Ensuring decent working conditions and respect for employees’ rights
16 Occupational health and safety at work
17 Personnel development
19 Compliance with the requirements of legislation and regulatory bodies in the social and economic sphere
Group II
8
9
10
11
Import substitution
Investment attractiveness
Information transparency
International cooperation
13 Managing procurement activities and combating unfair competition
18
Impact on socio-economic development of the regions in which the Company is present
20 Energy efficiency and internal power consumption
24 Compliance with the requirements of legislation and regulatory bodies in the area of environmental protection
21 Biological diversity preservation, including preservation of natural habitat along power
Group III
transmission lines
22 Emissions of air pollutants
23 Discharges and waste generated as a result of the Company’s activities
As part of preparation of the Report, in March 2020, public hearings were held
in absentia on the draft Report, which were attended by representatives of the groups
of main stakeholders. Requests and recommendations made at the hearings have
been regarded, to the extent possible, in the process of preparation of this Report
(see section Interaction with Stakeholders during the Preparation of the Report).
Requests of stakeholders received during the previous reporting campaign,
and reviews of the previous report received within the framework of Russian
and international competitions of annual reports, have been also regarded
in the process of preparing this Report.
Responsibility for Report preparation
Refer to section
Compliance with
GRI and
Standards
for information
on correlation
between material
topics and
GRI SRS topics.
GRI 102-32
The Report is approved by resolutions of the Board of Directors (tentatively) and the Annual General
Meeting of Shareholders of PJSC FGC UES.
I
0.00
0.00
1.00
2.00
3.00
Impact on the economy, environment and social aspects
Group III
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CORPORATE GOVERNANCE REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORTFINANCIAL REPORT
AUDITOR’S REPORT ON NON-FINANCIAL STATEMENTS
AUDITOR’S REPORT ON NON-FINANCIAL STATEMENTS
DISCLAIMER
This Integrated Annual Report (hereinafter, the Report)
is drawn up with the use of information available to
PJSC FGC UES at the time of its preparation. The Company
trusts that the information provided in the Report is complete
and accurate at the time of publication of the Report,
however does not claim that it cannot be further specified
or revised.
This Report contains forecasting statements reflecting
expectations of the Company’s management team. Due
to various objective factors, actual performance results may
differ from the above forecasts and assessments.
The Annual Report contains certain forecasting statements
regarding the business operations, economic indicators
and financial standing of the Company, its business plans,
projects, and expected results. Also, the Report may contain
estimates of trends in terms of changes in prices of services/
products, volumes of production and consumption, costs,
estimated expenses, development prospects and other
similar factors, as well as forecasts regarding development
of the industry and markets, and timelines of commencement
and termination of individual projects within the Company’s
operations.
Such terms as “assume”, “expect”, “forecast”, “intend”,
“seek”, “estimate”, “plan”, “deem”, “consider”, “could be”,
“will”, along with other resembling or similar expressions, as
well as those used with negation, usually reflect the
forecasting nature of any statement. Forecasting statements,
in virtue of their specific character, involve inherent risk and
uncertainty of both general and individual nature, and there is
a risk that such assumptions, forecasts, projects and other
forecasting statements will not be implemented. In view of the
above risks, uncertainties and assumptions, the Company
forewarns that the actual results may substantially differ from
the indicators expressed
or implied in such forecasting statements, being valid
only at the date of the Report preparation.
The Company neither represents nor warrants that
the performance results, as reflected in the forecasting
statements, will be achieved. The Company shall not
be liable for any losses or damage which may be incurred
by any individuals or legal entities acting on the basis of such
forecasting statements. Such forecasting statements
represent, in each specific case, only one of multiple possible
case scenarios and shall not be deemed to be the most likely
scenario.
Except as expressly provided by law, the Company assumes
no obligation to publish updates and changes to its
forecasting statements based on any new information and
subsequent events.
Auditor’s Report on Non-Financial Statements
INDEPENDENT PRACTITIONER’S LIMITED ASSURANCE REPORT
[TRANSLATION FROM RUSSIAN ORIGINAL]
To the management of Public Joint-Stock Company
“Federal Grid Company of Unified Energy System”
We have undertaken a limited assurance engagement
of nature and level of Public Joint-Stock Company
“Federal Grid Company of Unified Energy System”
(hereinafter referred to as PJSC FGC UES) compliance
with the principles of the AA1000 Accountability
Principle Standard 2008107 (hereinafter referred to
as AA1000 APS 2008) in the process of stakeholder
engagement in sustainability activities as well as
compliance of the accompanying Integrated annual
report of PJSC FGC UES 2019 (hereinafter referred
to as the Report) with the requirements of GRI
Sustainability Reporting Standards108 to the report
prepared in accordance with the Core option and with
the requirements of the International Integrated
Reporting Framework.
Responsibility of PJSC FGC UES
PJSC FGC UES is responsible for its compliance with
the principles of the AA1000 APS 2008 in the process
of stakeholder engagement in sustainability activities
as well as preparation of the Report in compliance
with the requirements of GRI Sustainability Reporting
Standards to the report prepared in accordance with
the Core option and with the requirements of
the International Integrated Reporting Framework. This
responsibility includes the design, implementation and
maintenance of internal control relevant to
the preparation of the Report that is free from material
misstatement, whether due to fraud or error.
Our Independence and Quality Control
We have complied with the independence and other ethical
requirements of the Rules of Independence of the Auditors
and Audit Organizations and The Code of Professional
Ethics of the Auditors, which are in accordance with
International Code of Ethics for Professional Accountants
(including International Independence Standards) issued
by the International Ethics Standards Board for
Accountants, which is founded on fundamental principles
of integrity, objectivity, professional competence and due
care, confidentiality and professional behavior, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements.
Our Responsibility
Our responsibility is to express a limited assurance
conclusion on nature and level of PJSC FGC UES
compliance with the principles of the AA1000 APS 2008
in the process of stakeholder engagement in
sustainability activities as well as compliance of
the Report with the requirements of GRI Sustainability
Reporting Standards to the report prepared in
accordance with the Core option and with
the requirements of the International Integrated
Reporting Framework based on the procedures we
have performed and the evidence we have obtained.
We conducted our limited assurance engagement
in accordance with International Standard on Assurance
Engagements 3000 (Revised), Assurance
Engagements Other than Audits or Reviews
of Historical Financial Information, as well as in
accordance with AA1000 Assurance Standard 2008109
(type 2, as defined by АА1000AS 2008). These
standards require that we plan and perform this
engagement to obtain limited (moderate as defined
by АА1000AS 2008) assurance about whether PJSC
FGC UES complies with the principles of the AA1000
APS 2008 in the process of stakeholder engagement
in sustainability activities and whether the Report is free
from material misstatement.
A limited assurance engagement undertaken in
accordance with these standards involves assessing
the following criteria (hereinafter referred to as Criteria):
The firm applies International Standard on Quality Control 1,
Quality Control for Firm that Perform Audits and Reviews
of Financial Statements, and Other Assurance and Related
Services Engagements, and accordingly maintains
a comprehensive system of quality control including
documented policies and procedures regarding compliance
with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Nature and level of PJSC FGC UES compliance with
the principles of the AA1000 APS 2008 – inclusivity,
materiality and responsiveness – in the process of
stakeholder engagement in sustainability activities;
Compliance of the Report with the requirements of
GRI Sustainability Reporting Standards to the report
prepared in accordance with the Core option;
Compliance of the Report with the requirements of
the International Integrated Reporting Framework.
A limited assurance engagement is substantially less
in scope than a reasonable assurance engagement in
relation to both the risk assessment procedures,
including an understanding of internal control, and
the procedures performed in response to the assessed
risks.
The procedures we performed were based on our
professional judgment and included inquiries, inspection
of documents, analytical procedures, evaluating
the appropriateness of quantification methods and
reporting policies, and agreeing or reconciling with
underlying records.
Given the circumstances of the engagement,
in performing the procedures listed above we have
performed the following procedures:
Study and selective testing of systems and processes
implemented by PJSC FGC UES to ensure and analyze
the compliance of the activities with AA1000 APS 2008
principles; collection of evidence confirming practical
implementation of these principles;
107 AA1000 AccountAbility Principles.
108 GRI Sustainability Reporting Standards.
109 AA1000 AccountAbility Assurance Standard.
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CORPORATE GOVERNANCE REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORTFINANCIAL REPORT
AUDITOR’S REPORT ON NON-FINANCIAL STATEMENTS
AUDITOR’S REPORT ON NON-FINANCIAL STATEMENTS
Interviewing the management and employees
of PJSC FGC UES and obtaining documentary
evidence;
Study of information available on the PJSC FGC UES
website related to its activities in the context of
sustainable development;
Study of public statements of third parties concerning
economic, environmental and social aspects
of PJSC FGC UES activities, in order to check validity
of the declarations made in the Report;
Analysis of non-financial reports of companies working
in the similar market segment for benchmarking
purposes;
Selective review of documents and data on
the efficiency of the management systems of economic,
environmental and social aspects of sustainable
development in PJSC FGC UES;
Study of the existing processes of collection,
processing, documenting, verification, analysis and
selection of data to be included into the Report;
Analysis of information in the Report for compliance
with the requirements of Criteria.
The procedures were performed only in relation to data
for the year ended 31 December 2019.
The evaluation of reliability of the information on
performance in the Report was conducted in relation
to compliance with the requirements of Standards to
the report prepared in accordance with the Core option
and information referred to in the annex to the Report
“GRI Content Index”. In respect to this information
assessment of its conformity to external and internal
reporting documents provided to us was performed.
The procedures were not performed in relation
to forward-looking statements; statements expressing
the opinions, beliefs and intentions of PJSC FGC UES
to take any action relating to the future; as well as
statements based on expert opinion.
The procedures were performed in relation to
the Russian version of the Report, which includes
information to be published in a hard-copy form as well
as in digital form on the PJSC FGC UES website.
We had no chance to verify that the report was
preliminary approved by the Board of Directors of
PJSC FGC UES, approved by the annual general
meeting of shareholders of PJSC FGC UES, published
on the PJSC FGC UES website, as well as that that
Global Reporting Initiative was notified of the use of
the Standards in the Report preparation due to the fact
that the date of signing this Assurance Report preceded
the planned dates of these procedures completion.
The procedures performed in a limited assurance
engagement vary in nature and timing from, and are
less in extent than for, a reasonable assurance
engagement. Consequently, the level of assurance
obtained in a limited assurance engagement is
substantially lower than the assurance that would have
been obtained had we performed a reasonable
assurance engagement. Accordingly, we do not express
a reasonable assurance opinion about PJSC FGC UES
adherence to the principles of the AA1000 APS 2008 as
well as about compliance of the Report, in all material
respects, with the Criteria.
Limited Assurance Conclusion on Nature and extent
of compliance of PJSC FGC UES with AA1000 APS 2008
principles
Based on the procedures performed and evidence
obtained, nothing has come to our attention that causes
as to believe that PJSC FGC UES stakeholder
engagement in sustainability activities has not complied,
in all material aspects, with the criteria of AA1000 APS
2008 in respect to adherence of PJSC FGC UES to the
principles (Inclusivity, Materiality and Responsiveness).
Limited Assurance Conclusion on Compliance
of the Report with the requirements of the International
Integrated Reporting Framework
Based on the procedures performed and evidence
obtained, nothing has come to our attention that causes
as to believe that the Report has not complied, in all
material aspects, with the guiding principles of
the International Integrated Reporting Framework and
with requirements to the structure of content elements
of integrated reports.
Limited Assurance Conclusion on Compliance
of the Report with the GRI Sustainability Reporting
Standards (Core option)
Based on the procedures performed and evidence
obtained, nothing has come to our attention that causes
us to believe that the Report has not complied, in all
material aspects, with requirements of GRI
Sustainability Reporting Standards to the report
prepared in accordance with the Core option.
Recommendations
Based on the results of the limited assurance
engagement we recommend:
It is reasonable to disclose GRI indicators in relation
to target values and plans for the future;
Improve the quality of disclosure of information
on evaluation of management approaches;
Consider increasing the extent of disclosure
of information on material topics concerning subsidiaries
and contractors.
The recommendations is not intended to detract from
the practitioner’s conclusion. Our conclusion is not
modified in respect of the matters referred to in
the recommendations.
FBK, LLC
Practitioner
Partner
V.Y.Skobarev
acting under Power of Attorney No. 76/18
of December 17, 2018
The Russian Federation, Moscow,
March 27, 2020
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CORPORATE GOVERNANCE REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORTFINANCIAL REPORT
CONCLUSION ON PUBLIC ENDORSEMENT
CONCLUSION ON PUBLIC ENDORSEMENT
Conclusion on public endorsement of the
Integrated Report
Introduction
PJSC FGC UES offered us to assess the 2019 Integrated Annual Report (hereinafter, the Report) in terms
of its completeness and materiality of information disclosed therein, as well as the Company’s response
to the recommendations and proposals of stakeholders. We were given the opportunity to express our
opinions regarding the Draft Report at the public hearings held in absentia. We hereby confirm our
independence and objectivity of our judgements. Our participation in the public verification procedure was
not compensated by the Company.
Report assessment procedure
Our conclusion is grounded on the assessment of the Draft Report provided to us.
In the process of public certification of the Report, we did not set the task of verifying the reliability
of information. Confirmation of the degree of its compliance with any reporting standards, both Russian
and international, was not a goal of this certification as well.
The results of our work are included into this Public Certification Statement, containing our generally
agreed opinions.
Assessment, comments and recommendations
We all agreed on the positive assessment of the Report, i.e. its format and the amount of information contained
herein.
The document is prepared in the format of an integrated annual report, which corresponds to the best practices
of corporate reporting and allows for comprehensive disclosure of information about the Company.
Our recommendations to improve the quality of public reporting of PJSC FGC UES are reflected in the table
of suggestions and recommendations of stakeholders (Annual Report, section Interaction with Stakeholders
during the Preparation of the Report).
Materiality
The Report includes the Map of Material Topics, determined together with the Company’s representatives
and stakeholders. In our opinion, the Report discloses all material topics presented on the Map.
Completeness and balance
In our opinion, all material information is presented in full in the Report. Information presented in this Report
is disclosed in a balanced manner: positive performance results are described, as well as challenges that
the Company faces are addressed. We are not aware of any facts of concealing the material information.
Interaction with stakeholders in the Report preparation
When preparing this Report, the Company demonstrated a high level of readiness to carry on an open
dialogue with stakeholders, covering different areas of its activities.
The Company recorded the stakeholders’ recommendations, carried out a thorough analysis, and where
possible took them into account when preparing the Report’s final version, as well as took over commitments
for future reporting periods.
We believe that the Company will continue to consistently implement the principles of responsible corporate
behaviour in its activities by improving the quality of annual reports and interaction with stakeholders.
Signatures of certifying parties
Full name
Position
Signature
Ilya
ANDREEV
Mikhail
ANDRONOV
Vyacheslav
VARVARIN
Karen
VARTANYAN
Head of the Department for Social Partnership Development
and Legal Support of All-Russian Public Organisation
“The Union of machine engineers of Russia”
President of Rusenergosbyt LLC
Head of the Student Construction Teams Unit of the National
Research University MPEI
Deputy Head of Nadezhnaya Smena Foundation
Lyudmila
GRIBINYUCHENKO
Head of the Development and Support of Information
Coverage Area, Issuers Control Division of the Listing
Department of the Moscow Exchange
Aleksandr
GUSEV
Irina
ESIPOVA
Elena
ZUBAKINA
Aleksey
MOSKALEV
General Director of Ruskabel mediaholding
General Director of the Fuel and Energy Complex
Communications Development Centre
Director of the Development of the Russian Bird
Conservation Union
Area Manager of NLMK Group
Ekaterina
NIKITCHANOVA
Deputy Director — Head of the Expert Centre
of the Non-Profit Partnership Russian Institute of Directors
Olga
SINENKO
Konstantin
SUSLOV
General Director of JSC RTSoft
Professor of Power Supply and Electrical Engineering
of IRNTU, PhD in Technical Sciences
Vladimir
SHCHELKONOGOV
First Vice President of the Association «ERA of Energy»
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CORPORATE GOVERNANCE REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORTFINANCIAL REPORT
GRI AND COMPLIANCE
GRI AND COMPLIANCE
COMPLIANCE WITH STANDARDS (GRI AND )
GRI Content Index (GRI Compliance Table)
Standard
GRI 101:
Principles of
report preparation
GRI 102:
General Indicators
2016
Indica-
tor
101
102-1
102-2
102-3
102-4
GRI indicator
Principles of
report preparation
Name of
the organisation
Activities, brands,
products,
and services
Location of
headquarters
Location of
operations
102-5
Ownership and
legal form
Section of report/report annex
number/notes
Notes
Information on the Report
Information on the Report
About the Company
Contact information
Location of operations
Appendix 1: International Activities
Information on the Report
102-6
Markets served
Location of operations
102-7
Scale of
the organisation
Market of Electricity Transmission
Services
Location of operations
Financial performance results
analysis
Number and qualification
of employees
Main forms of consolidated financial
statements of PJSC FGC UES for
2019 as per IFRS
Main forms of financial (accounting)
statements for 2019 as per RAS
102-8
Information on
employees and
other workers
Number and qualifications of
employees
Appendix 1: HR Management
102-9
Supply chain
Procurement activities
102-10 Significant
changes to
the organisation
and its supply
chain
No significant changes in the size,
structure or ownership of
the organisation or its supply chain
in the reporting year.
Page
number
245
Cover
flyer
9
270
10
245
10
61
10
85
102
219
232
102
80
Indica-
tor
102-11
Standard
GRI 102:
General Indicators
2016
GRI indicator
Precautionary
Principle or
approach
Section of report/report annex
number/notes
Notes
Page
number
In accordance with the
precautionary principle,
PJSC FGC UES seeks to avoid any
assumed damage to
the environment, even if there is
no proven scientific evidence that
any particular type of activities may
cause such damage. At the stage of
development of project
documentation for the power grid
facilities construction/renovation,
the impact of their operations on
the environment is assessed, and
design choices are made to prevent
or minimise any possible negative
impact.
102-12
External initiatives
supported by
the organisation
Commitment of Rosseti FGC UES to
the UN Sustainable Development
Goals
Environmental protection outcomes
Anti-Corruption Policy and Economic
Security
102-13 Membership of
Appendix 1: International Activities
associations
102-14 Statement from
key decision-
makers in the
company
Appendix 6: Information on
Participation of PJSC FGC UES in
Profit and Non-Profit Organisations
in 2019
Statement from the Chairman of
the Board of Directors
Statement from the Chairman of
the Management Board
102-15 Key impacts, risks
Business model
and opportunities
Key risks
Risk management system
Appendix 1: Risks
General information on
the Company’s corporate
governance
General information on
the Company’s corporate
governance
Stakeholders’ contribution to shaping
the Company’s strategy
102-16
Principles, values,
standards and
norms of
behaviour
102-18 Governance
structure
102-21 Consulting
stakeholders
on economic,
environmental
and social
topics
97
118
205
4
6
16
55
200
101
147
149
42
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CORPORATE GOVERNANCE REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORTFINANCIAL REPORT
GRI AND COMPLIANCE
GRI AND COMPLIANCE
Standard
Indica-
tor
GRI indicator
Section of report/report annex
number/notes
Notes
Page
number
Disclosed in the Annual
Report
GRI 102:
General Indicators
2016
102-22 Composition of
Members of the Board of Directors
Committees of the Board of Directors
the highest
governance body
and its
committees
102-23 Chair of
Members of the Board of Directors
the highest
governance body
102-24 Nominating and
Members of the Board of Directors
selecting the
highest
governance body
and its
committees
102-25 Conflicts of
Settlement of conflicts of interest
interest
102-26 Role of the highest
102-28
102-30
102-32
governance body
in setting purpose,
principles and
strategy
Evaluating
the highest
corporate
governance
body’s
performance
Effectiveness of
risk management
processes
Position of
the person
officially verifying
and approving
the organisation’s
reports and
covering all
material aspects
102-34 Content and
number of
questions of
a stakeholder
concern
102-35 Remuneration
policies of
the highest
governance body
members and
senior executives
102-36
102-40
Process for
determining
remuneration
List of
stakeholders
Sustainable development
management
Company’s Board of Directors
Report of the Strategy Committee
Assessment of performance of
the Board of Directors
Risk management system
Responsibility for the Report
preparation
The report of the Board of Directors
on results of the Company’s
development in priority business
areas
Remuneration system for governing
bodies
Calculation of remuneration
Stakeholder engagement
166
180
181
182
184
168
166
198
97
158
182
163
200
247
161
192
193
196
132
Indica-
tor
102-41
Standard
GRI 102:
General Indicators
2016
102-42
GRI indicator
Percentage of
employees
covered by
collective
bargaining
agreements
Identifying and
selecting
stakeholders
102-43 Approach to
stakeholder
engagement
Section of report/report annex
number/notes
Notes
Page
number
PJSC FGC UES has no collective
labour agreements.
PJSC FGC UES is a signatory to
the Sectoral Tariff Agreement in
the electric power industry of
the Russian Federation.
Stakeholder engagement
Stakeholder engagement
Stakeholders’ contribution to shaping
the Company’s strategy
Interaction with stakeholders during
the Report preparation
131
42
121
138
137
95
246
246
67
245
246
245
245
102-44 Key topics and
concerns raised
Interaction with stakeholders during
the Report preparation
102-45
Entities included
in the
consolidated
financial
statements
The list of organisations included in
the outline of the consolidation of
financial statements
The annual integrated
report has been
prepared for
PJSC FGC UES,
individual indicators are
provided in accordance
with IFRS Consolidated
Financial Statements
and are accompanied by
a corresponding note
102-46 Defining report
Report preparation process
content and topic
boundaries
102-47
List of material
topics
102-48 Restatements of
information in
previous reports
and reasons
thereof
Report preparation process
Improvement of power supply
reliability
Information on the Report
102-49 Significant
Report preparation process
changes in the
Scope and Aspect
Boundaries of
material topics
compared to
previous reporting
periods
102-50 Reporting period
Information on the Report
102-51 Date of most
recent report
Information on the Report
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GRI AND COMPLIANCE
GRI AND COMPLIANCE
Standard
Indica-
tor
GRI indicator
Section of report/report annex
number/notes
Notes
Page
number
The external auditor
shall be selected through
tender procedures
GRI 102:
General Indicators
2016
102-52 Reporting cycle
Information on the Report
102-53 Contact point for
Contact persons
questions
regarding
the report
102-54
Indication to
the GRI
application level:
basic or advanced
Information on the Report
102-55 GRI content index Compliance with standards
(GRI and )
102-56 Organisation’s
Information on the Report
policy and
practices
regarding
the external
assurance of
the report
Discussed topics
and scope thereof
The management
approach and its
components
Evaluation of
the management
approach
Report preparation process
Specified individually for each material topic
Specified individually for each material topic
Group I on the materiality matrix (material topics)
The management
approach and its
components
Evaluation of
the management
approach
Direct economic
value generated
and distributed
Development Strategy
Strategic Priorities of Rosseti
FGC UES in 2019
Analysis of Financial Performance
Appendix 1: Analysis of Financial
Performance Results
103-1
103-2
103-3
103-2
103-3
201-1
Standard 103.
Management
Approach
2016
Improving
economic
efficiency and
financial
sustainability
GRI 201:
Economic
Performance
2016
245
270
245
254
245
246
39
40
85
Standard
Managing
procurement
activities and
combating unfair
competition
GRI 204:
Procurement
Practices
2016
Indica-
tor
103-2
103-3
204-1
GRI indicator
The management
approach and its
components
Evaluation of the
management
approach
Proportion of
spending on local
suppliers
Section of report/report annex
number/notes
Notes
Procurement activities
Appendix 1: Procurement system
model
Procurement activities
Procurement activities
Proportion of local
suppliers in the volume
of procurement is 48.6%
By local suppliers and
contractors we mean
the winners of
procurement procedures
with TIN belonging to any
region of the regional
branches of
PJSC FGC UES and the
executive office of
PJSC FGC UES.
206-1
GRI 206:
Anticompetitive
Behaviour
2016
Anti-corruption
103-2
GRI 205:
Anti-corruption
2016
103-3
205-1
205-3
Total number of
instances of legal
actions brought
against the
organisation in
relation to anti-
competitive
behaviour and anti-
trust infringements,
and results thereof
The management
approach and its
components
Evaluation of the
management
approach
Total number and
percentage of
subdivisions
subject to
corruption risk
assessments and
material risks
identified
Confirmed
incidents of
corruption and
actions taken
Procurement activities
Anti-Corruption Policy and Economic
Security
Appendix 1: Anti-Corruption Activities
Anti-Corruption Policy and Economic
Security
Corruption Risks and Compliance
with Corporate Ethics
Anti-Corruption Policy and Economic
Security
Page
number
80
81
82
84
205
205
207
205
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GRI AND COMPLIANCE
GRI AND COMPLIANCE
Standard
Ensuring decent
working conditions
and respect for
employees’ rights
GRI 401:
Employment
2016
Indica-
tor
103-2
103-3
401-1
401-2
Occupational
health and safety
at work
103-2
GRI 403:
Occupational
health and safety
2018
103-3
403-1
403-2
GRI indicator
Management
approach and its
components
Evaluation of
the management
approach
New employee
hires and
employee
turnover
Benefits provided
to full-time
employees that are
not provided to
temporary or part-
time employee
The management
approach and its
components
Evaluation of the
management
approach
Occupational
health and safety
management
system
Hazard
identification, risk
assessment, and
incident
investigation
403-4 Worker
participation,
consultation, and
communication on
occupational
health and safety
Section of report/report annex
number/notes
Notes
These benefits apply to
all individuals who are in
labour relations with
the Company
HR Management
Number and qualifications
of employees
Appendix 1: HR Management
Results of implementing the HR
policy
Number and qualifications of
employees
Appendix 1. Personnel Management
The Company’s Social Policy
Occupational Health and Safety
Management
Appendix 1: Occupational Health
and Safety
Workplace injuries and occupational
diseases
Occupational Health and Safety
Management
Process of Hazard Identification,
Assessment of Relevant Risks,
Competence of Persons-In-Charge
Appendix 1. Workplace Hazard
Response
Arrangement of Favourable Working
Conditions for Employees
Appendix 1. Functioning of Subdivisions
in Charge of the Workplace Accidents
Avoidance and Prevention
403-5 Worker training on
occupational
health and safety
Trainings and Other Educational
Events
Page
number
100
102
102
102
108
111
114
111
112
113
113
Indica-
tor
403-6
403-7
Standard
Occupational
health and safety
GRI 403:
Occupational
health and safety
2018
GRI indicator
Section of report/report annex
number/notes
Notes
Promotion of
worker health
Voluntary health insurance (VHI) and
personnel health support
Page
number
108
Appendix 1. Occupational Health
and Safety
Prevention and
mitigation of
occupational
health and safety
impacts directly
linked by
business
relationships
403-8 Workers covered
by an
occupational
health and safety
management
system
Occupational Health and Safety
Managemen
Internal and
external audit of
OHS management
system was
not conducted.
403-9 Work-related
injuries
Workplace injuries and occupational
diseases
403-10 Work-related ill
health
Workplace injuries and occupational
diseases
The Company does not
have information about
occupational diseases of
contractor workers.
Training, re-training and advanced
training for staff
Personnel qualification assessment
Training, re-training and advanced
training for staff
Appendix 1. Personnel Training
Contribution to the regions of
presence
Contribution to the regions of
presence
103-2
103-3
404-1
404-2
103-2
103-3
413-1
Personnel
development
GRI 404:
Training and
Education
2016
Impact on socio-
economic
development of
the regions in
which the
Company is
present
GRI 413:
Local
Communities
2016
The management
approach and its
components
Evaluation of the
management
approach
Average hours of
training per year
per employee
Programmes for
upgrading
employee skills
The management
approach and its
components
Evaluation of the
management
approach
Operations with
local community
engagement,
impact
assessments,
and development
programs
111
114
115
104
105
104
127
127
FGC UES actively interacts with
local communities on an ongoing
basis through work with local
authorities and public
organisations. The key objective of
interaction is reliable and
uninterrupted power supply to
citizens. Interaction is carried out
in the process of construction of
new UNEG facilities in the format
of public hearings, consultations,
as well as in the format of
response to appeals of
representatives of local
communities.
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GRI AND COMPLIANCE
GRI AND COMPLIANCE
Indica-
tor
GRI indicator
Section of report/report annex
number/notes
Notes
Page
number
Standard
Impact on socio-
economic
development of
the regions in
which the
Company is
present
GRI 413:
Local
Communities
2016
Compliance with
the requirements
of legislation and
regulatory bodies
in the social and
economic sphere
GRI 419:
Socioeconomic
Compliance
2016
413-2
103-2
Operations with
significant actual
and potential
negative impacts
on local
communities
The management
approach and its
components
103-3
Evaluation of the
management
approach
419-1
Non-compliance
with laws and
regulations in the
social and
economic area
Payments to budget and
extrabudgetary funds
Implementation
of infrastructure
projects,
development of
the Unified
National Electric
Grid.
103-2
103-3
The management
approach and its
components
Evaluation of the
management
approach
Development Strategy
Grid development and investment
activities
KPI in the context of strategic
objectives
Provision of jobs with a decent
remuneration level and social
benefits is also a means of mutual
cooperation.
Such approach to interaction with
local stakeholders historically
proved its effectiveness, targeting
and sufficiency. In this regard,
the Company runs no formalised
special programmes on
cooperation with local
communities.
The company does not have a
significant material or potential
negative impact on local
communities.
The Company structures its
activities in strict compliance with
the applicable legal and regulatory
framework. FGC UES strictly
complies with the legislation and
regulatory requirements in the
social and economic areas.
The criterion of the Company’s
efficient activity in this area is a
timely response to changes in
requirements of legislation and
regulators, minimisation of
penalties and non-financial
sanctions imposed on FGC UES.
No non-financial
sanctions are imposed
against the Company as
a result of non-
compliance with
legislation or regulatory
requirements in the area
of social and economic
activities. No lawsuits
are filed against the
Company with the help
of dispute regulation
mechanisms.
129
39
71
53
Standard
Reliability and
quality of electric
power supplied to
consumers
Indica-
tor
103-2
103-3
EU12
Tariff setting
103-2
Efficiency of
infrastructure
operation
Efficiency of
investment
activities (capital
construction)
Implementation
of digital
technologies
and solutions
Investment
attractiveness
103-3
103-2
103-3
103-2
103-3
103-2
103-3
103-2
103-3
GRI indicator
The management
approach and its
components
Evaluation of the
management
approach
Transmission
electric power
losses and
respective share in
the total volume of
electricity
The management
approach and its
components
Evaluation of the
management
approach
The management
approach and its
components
Evaluation of the
management
approach
The management
approach and its
components
Evaluation of the
management
approach
The management
approach and its
component
Evaluation of the
management
approach
The management
approach and its
components
Evaluation of the
management
approach
Section of report/report annex
number/notes
Notes
Page
number
Development Strategy
Improving the power supply reliability
KPI in the context of strategic
objectives
Reduction of Relative Electricity
Losses
Tariff Regulation
Appendix 1: Tariff Regulation
Appendix 1: Tariff Regulation
Reduction of Relative Electricity
Losses
Improving the power supply reliability
KPI in the context of strategic
objectives
Grid development and investment
activities
KPI in the context of strategic
objectives
Development of communication
networks and IT systems
KPI in the context of strategic
objectives
Opportunities and risks for
Rosseti FGC UES
Comparison of Rosseti FGC UES
with certain foreign public power grid
companies engaged in monopoly
activity for electricity transmission
through the transmission networks
Market intelligence on the
Company’s securities
39
67
53
62
92
62
67
53
71
53
77
53
37
38
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GRI AND COMPLIANCE
GRI AND COMPLIANCE
Standard
Indica-
tor
GRI indicator
Section of report/report annex
number/notes
Notes
Page
number
Group II on the materiality matrix (less material topics, partial disclosure)
Environmental Protection
Environmental management system
and environmental audit
Appendix 1: Environmental
Protection and Energy Saving
116
117
Appendix 1: Environmental
Protection and Energy Saving
Energy saving and energy efficiency
improvement
124
Appendix 9. Register of specially
protected natural areas
Compliance with
the requirements
of legislation and
regulatory bodies
in the area of
environmental
protection
103-2
103-3
307-1
GRI 307:
Environmental
Compliance
2016
Energy efficiency
and internal power
consumption
302-1
302-4
304-1
GRI 302:
Energy
2016
Biological diversity
preservation,
including
preservation of
natural habitat
along power
transmission lines
GRI 304:
Biodiversity
2016
The management
approach and its
components
Evaluation of the
management
approach
The monetary
value of substantial
penalties and the
total number of
non-financial
sanctions imposed
for non-compliance
with the
environmental
legislation, the
number of
environmental
impact complaints
filed, processed
and settled through
the formal filing
mechanisms
Energy
consumption
within the
organisation
Reduction of
energy
consumption
Operational sites
owned, leased,
managed in, or
adjacent to,
protected areas
and areas of high
biodiversity value
outside protected
areas
Standard
Biological diversity
preservation,
including
preservation of
natural habitat
along power
transmission lines
Indica-
tor
304-2
304-4
GRI 304:
Biodiversity
2016
Innovative
activities, scientific
and technical
development
Import substitution
Information
transparency
International
cooperation
–
–
–
–
GRI indicator
Significant
impacts of
activities,
products, and
services on
biodiversity
IUCN Red List
species and
national
conservation list
species with
habitats in areas
affected by
operations
–
–
–
–
Section of report/report annex
number/notes
Notes
Conservation of biodiversity
Appendix 1: Environmental
Protection and Energy Saving
Conservation of biodiversity
Appendix 8. Species Listed in the
IUCN Red List and the Red Book of
the Russian Federation, which
Inhabit the Territories of PJSC FGC
UES’ Operation.
Innovative Development Programme
Import substitution
Stakeholder engagement
Appendix 1: International Activities
Page
number
123
124
75
84
140
Group III on the materiality matrix (immaterial topics)
Emissions of air
pollutants
305-1
Direct GHG
emissions
GRI 305:
Emissions
2016
305-7
Pollutant
emissions into the
atmosphere
Appendix 1:
Natural Capital
Air pollutant emissions
Appendix 1: Environmental
Protection and Energy Saving
Discharges and
waste generated
as a result of the
Company’s
activities
GRI 303: Water
2016
GRI 306:
Effluents and
Waste
2016
303-1 Water
Usage of water resources
consumption
Appendix 1: Environmental
Protection and Energy Saving
306-1 Water discharge
Usage of water resources
by quality and
destination
Appendix 1: Environmental
Protection and Energy Saving
306-2 Waste by type and
Waste generation and disposal
disposal method
Appendix 1: Environmental
Protection and Energy Saving
No direct greenhouse emissions
take place as a result of the
Company’s core business activities
(electricity transmission and
distribution).
120
121
122
122
Breakdown of waste
treatment methods by
type is not carried out
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GRI AND COMPLIANCE
GLOSSARY AND ABBREVIATIONS
Compliance with the International
Integrated Reporting Standard
Reflection of the Standard Fundamental Concepts in the Report
Fundamental concepts
Creation of value for the organisation and stakeholders
Capitals
Value creation process
Report compliance with the Standard guiding principles
Guiding principles
Strategic focus and future orientation
Information cohesiveness
Engagement with stakeholders
Materiality
Conciseness
Reliability and completeness
Consistency and comparability
Used/not used
Used
Used
Used
Compliant/not
compliant
Compliant
Compliant
Compliant
Compliant
Compliant
Compliant
Compliant
Availability of the Standard content elements in the Report>
Content elements
Report section
Page number
Organisation overview and
external environment
About the Company
Industry Overview
Management
Business Model
Corporate Governance Report
Business Model
Risks and opportunities
Business Model
Opportunities and Risks for Rosseti FGC UES
Key Risks
Risk Management System
Strategy and allocation of
resources
Strategic Priorities and Tasks
Development Strategy
Results of activities
Business Model
Future prospects
Performance Highlights 2019
Industry Overview
Development Strategy
Performance Highlights 2019
8
35
145
16
16
37
55
200
12
39
16
60
35
39
60
Glossary and Abbreviations
DECT
EBIT
EBITDA
ESG
EV
GRI
Wireless communications systems compliant with DECT (Digital European Cordless
Telecommunications) standard
Earnings Before Interest and Taxation
Earnings before Interest, Taxes, Depreciation and Amortisation
Environmental, Social, Governance
Enterprise value
Global Reporting Initiative
GRI SRS
Global Reporting Initiative Standards
ISIN
ISO
LSE
M&A
PLM
RAB
ROE
ROIC
RFID
International Securities Identification Number
International Organisation for Standardisation
London Stock Exchange
Mergers and Acquisitions
Product Lifecycle Management
Regulatory Asset Base
Return On Equity
Return On Invested Capital
Radio Frequency Identification
SCADA
Supervisory Control And Data Acquisition
TSR
VoIP
AECS
ATX
NPP
BAM
Total shareholder return
Voice over Internet Protocol
Automated engineering control system
Automatic telephone exchange
Nuclear power plant
Baikal-Amur Mainline
BRELL
Electric ring: Belarus — Russia — Estonia — Latvia — Lithuania
GDP
RES
IC
OHPL
FOCL
HTS
HF
communication
IEA
WPPs
GDR
OPP
AGMS
Gross domestic product
Renewable energy sources
Internal control
Overhead power line
Fibre optic communication line
High-temperature superconducting cable
High Frequency Communication
Internal environmental audit
Wind power plants
Global depositary receipt
Ore processing plant
Annual General Meeting of Shareholders
GosSOPKA
State system for the detection, prevention and elimination of the consequences of computer attacks
POL
GCC
HPP
S&A
LTDP
Petroleum, oil and lubricants
Grid Control Centre
Hydroelectric power plant
Subsidiaries and affiliates
Long-Term Development Programme
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GLOSSARY AND ABBREVIATIONS
GLOSSARY AND ABBREVIATIONS
UNEG
Unified National (All-Russian) Electric Grid
UTCNEPI
Unified technological communications network of electric power industry
UES of Russia
Unified Energy System of Russia
Audit
Committee
Investment
Committee
Audit Committee of the Board of Directors
Investments Committee of the Board of Directors
CMIS
Corporate Management Information System
HR and
Remuneration
Committee
CGC
KOR
Strategy
Committee
CSR
KPI
PTL
HR and Remuneration Committee of the Board of Directors
Corporate Governance Code
Key operational risk
Strategy Committee of the Board of Directors
Corporate Social Responsibility
Key Performance Indicators
Power transmission line
MEDT of Russia
Ministry of Economic Development of the Russian Federation
Minenergo of
Russia
Ministry of Energy of the Russian Federation
ILO
IUCN
SME
IFRS
IEC
MPTL
RGP
VAT
R&D
International Labour Organisation
International Union for Conservation of Nature
Small and medium entrepreneurship
International Financial Reporting Standards
International Electrotechnical Commission
Main power transmission lines
Required gross proceeds
Value added tax
Research and development
NRU "MPEI"
National Research University "Moscow Power Engineering Institute"
NCGR
IA
UN
UES
Pens
National Corporate Governance Rating
Intangible assets
United Nations
Unified energy system
Volume of undersupplied electricity
EMPTL
Enterprises of main power transmission lines
IDP
SS
RP
RMES
RAS
RSPP
SG
CAD
ICS
SCS
Innovative Development Programme
Electric power substation
Relay protection
Regional main power transmission lines
Russian Accounting Standards
Russian Union of Industrialists and Entrepreneurs
Switchgear
Computer-Aided Design
Internal control system
Satellite communication system
CIGRE
QMS
BSOSR
STC
Conseil International des Grands Reseaux Electriques Haute Tension (International Council on
Large Electric Systems) (RNC SIGRE — Russian National Committee CIGRE)
Quality Management System
Business subdivisions for occupational safety and reliability
Static thyristor compensators
STATCOM
Volt-amperes reactive compensator
HSE MS
Health, Safety and Environment Management System
RMS
EMS
SPP
M&R
TC
TUaR
TSR
TGC
FEC
CHPP
OWATX
DCD
SD
CSR
FAS
FZ
PSD
Risk management system
Environmental management system
Solar power plant
Maintenance and repair
Technological connection
Technical upgrading and reconstruction
Trans-Siberian Railway
Territorial grid company
Fuel and energy complex
Combined heat and power plant
Office and Worksite ATX
Direct compensation device
Sustainable Development
Controlled shunt reactors
Federal Antimonopoly Service
Federal Law
Phase shifting device
FTS of Russia
Federal Tariff Service of the Russian Federation
GCC
ECM
Grid Control Centre
Electronic computing machine
Units of measure
GW
kV
kW
kWh
km
MVA
gigawatt
kilovolt
kilowatt
kilowatt-hour
kilometre
megavolt-ampere
MWh
mln
bln
p. p.
RUB
t
megawatt-hour
TFOE
million
billion
percentage point
Russian rouble
tonne
ths.
h
pc.
tonnes of fuel oil
equivalent
thousand
hour
piece
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CONTACT INFORMATION
CONTACT INFORMATION
CONTACT INFORMATION
Information on state registration
Full corporate name
Public Joint Stock Company Federal Grid Company of the Unified Energy
System
Abbreviated name
PJSC FGC UES
GRI 102-3
Form of ownership and business
legal structure
Mixed Russian property with a share of federal ownership
Public Joint Stock Company
GRI 102-3
Location
Moscow, Russia
GRI 102-3
Postal address
5a Akademika Chelomeya Str., Moscow, 117630
Phone/fax
Unified data centre: 8 (800) 200-18-81
E-mail
OGRN
INN
Core business
Foreign calls: +7 (495) 710-93-33
Fax: +7 (495) 710-96-55
info@fsk-ees.ru
1024701893336
4716016979
Electricity transmission over the transmission networks and power supply of
consumers throughout the Unified National Electric Grid (UNEG).
Corporate website
https://www.fsk-ees.ru/eng/
Registrar Information
Joint-Stock Company Registrar Society STATUS
23 Novokhokhlovskaya Str., Build. 1, Moscow, 109052
http://www.rostatus.ru
GRI 102-53
Contact persons
Contact information for
institutional investors
and analysts
External Communications and
Government Relations Department
Corporate and Strategic
Management Department
Phone: 8 (800) 200-18-81
Fax: +7 (495) 710-96-41
Egor Toropov
Phone: 8 (800) 200-18-81 (доб. 22-75)
e-mail: toropov-ev@fsk-ees.ru
Aleksey Novikov
Phone: 8 (800) 200-18-81 (доб. 21-43)
e-mail: novikov-as@fsk-ees.ru
Yuliya Ratnikova
Phone: 8 (800) 200-18-81 (доб. 20-97)
E-mail: ratnikova-yd@fsk-ees.ru
Oksana Verstakova
Phone: +7 (495) 710-90-28
E-mail: verstakova-op@fsk-ees.ru
Data on initial state registration
State registration number: 00/03124
Date of state registration: 25 June 2002
Name of the public registrar
Registration Chamber of the Leningrad Region
Information on legal entity registration
Primary state registration number of legal entity 1024701893336
Date of legal entity entry on the Unified State
Register of Legal Entities
(registered prior to 1 July 2002)
20 August 2002
Name of registration authority
Inspectorate of the Ministry of Taxes in Tosnensky district of the
Leningrad Region
Registrar
Entity maintaining the register of holders of
registered securities, the registrar
Joint-Stock Company Registrar Society STATUS (JSC STATUS)
Address
Phone/Fax
23 Novokhokhlovskaya Str., Build. 1, Moscow, 109052
+7 (495) 280-04-87, +7 (495) 678-71-10
Hotline for shareholders of PJSC FGC UES
8 (800) 500-05-52
E-mail
License number
Licence issue date
Licence term
Issuing authority
Depository
office@rostatus.ru
10-000-1-00304
12 March 2004
indefinite
Federal Financial Markets Service of Russia
Information on the depository carrying out
centralised storage of securities
Non-bank Credit Organisation National Settlement Depository
Closed Joint-Stock Company (CJSC NSD)
Address
Phone
E-mail
License number
Licence issue date
Licence term
Issuing authority
12 Spartakovskaya Str., Moscow, 105066
+7 (495) 234-48-27
info@nsd.ru
045-12042-000100
19 February 2009
indefinite
Federal Financial Markets Service of Russia
270270
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
271
CORPORATE GOVERNANCE REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORTFINANCIAL REPORT
APPENDICES
TO ANNUAL REPORT 2019
Appendix 1
Additional information on the sections of the Integrated Report
Appendix 2
Report on compliance with the Corporate Governance Code
Appendix 3
Information on the transactions entered into by PJSC FGC UES
and its controlled entities
Appendix 4
Appendix 5
Appendix 6
Information on the actual execution by PJSC FGC UES
of the instructions of the President and the Government
of the Russian Federation in 2019
Information on the participation of PJSC FGC UES in the activities
of subsidiaries, affiliates and other business entities in 2019
(profit and non-profit organisations)
Information on concluded contracts of sale of interest, shares,
equities of business partnerships and companies, including information
on the parties, scope, price and other conditions of such contracts
Appendix 7
Information on sale of non-core assets in 2019
Appendix 8
Number of species listed in the IUCN Red List and the national list
of protected species in special nature reserve areas
where PJSC FGC UES operates
Appendix 9
Register of specially protected natural areas
where Federal Grid Company operates
Appendix 10
Report of the Audit Commission
Appendix 11
Annual financial statements of PJSC FGC UES for 2019
as per RAS with the auditor’s report, explanatory note and accounting policy
Appendix 12
Consolidated financial statements of PJSC FGC UES for 2019 as per IFRS
274
321
358
359
384
396
397
402
410
422
429
502
272272
Annual Report 2019 PJSC FGC UES
PJSC FGC UES
2019 Annual Report
273
CORPORATE GOVERNANCE REPORTADDITIONAL INFORMATIONABOUT THE COMPANYSTRATEGIC REPORTFINANCIAL REPORT
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1.
Additional Information on the Annual Report’s Sections
CONTENTS
APPENDIX 1.
Additional Information on the Annual Report’s Sections ...............................................................................274
STRATEGIC REPORT ...................................................275
Development strategy ................................................275
Production indicators .................................................275
Our assets ................................................................275
International activity ..................................................278
Quality Management System (QMS) ........................282
Electricity transmission .............................................283
Technological connection .........................................283
Improving the reliability of power supply ...................284
Grid development and investment activities .............286
Development of Communication Networks
and IT Systems .........................................................286
Procurement activities ..............................................286
Analysis of Financial Performance ..............................292
Company’s profit distribution ....................................292
Key financial and economic indicators,
2017–2019, RUB mln ...............................................292
Analysis of changes in the account receivables .......293
Analysis of changes in account payables .................293
Issues of the Company’s outstanding bonds ............294
Tariff Regulation .......................................................295
Direct economic value added and distributed ...........296
Sustainable Development
and Corporate Social Responsibility ........................297
HR Management .........................................................297
Company’s internal regulatory sources
in the field of HR management ....................................298
The list of the HR Policy targets, established
at the level of heads of the Executive Office
and the Company’s branches .....................................299
Company Personnel Management System .................299
Employee Complaint Mechanisms ..............................300
Personnel Training .....................................................300
Support of healthy lifestyle ..........................................301
Award Policy ..............................................................301
Occupational Health and Safety................................302
The main documents regulating
the maintenance of occupational health
and safety in the Company .......................................302
Occupational health and safety norms
and standards in the Company ................................303
Norms and standards to which the Company
complies when fulfilling fire safety requirements ......303
Workplace Hazard Response ...................................303
List of the Company’s occupational health
and safety projects implemented in 2019 .................303
Main obligations of the Company
in the area of occupational safety .............................304
Main industrial hazards and measures taken
to reduce their negative impact on employees .........305
Measures taken to prevent accidents at work ..........305
Interaction with business partners on injury
prevention and occupational health
and safety issues ......................................................306
Environmental Protection
and Energy Saving .....................................................306
Environmental Policy ................................................306
Results of external environmental supervision .........306
Payments for negative impact
on the environment ...................................................306
Results of biodiversity monitoring in National
Park Smolny in the Republic of Mordovia .................307
Quantitative indicators of environmental
safety, 2015–2019 ....................................................307
Energy efficiency and internal power
consumption .............................................................308
Amount of energy resources used
in FGC in 2019 .........................................................309
Contribution to the development
of the regions of the Company’s presence .............310
Payments to budget and extrabudgetary funds ........310
Stakeholder Engagement ..........................................310
Participation in congresses and exhibitions ..............310
Scientific and technical cooperation with the
Russian National Committee of CIGRE ....................311
Cooperation with the Russian
Engineering Union ....................................................312
The transition of Rosseti Group
to a single brand architecture ...................................313
Features of a Single Brand .......................................313
CORPORATE GOVERNANCE .....................................314
Board Committees .....................................................314
Internal control system ..............................................315
Risk management system .........................................318
Regulatory framework for RMS functioning
in the Company ...........................................................319
Internal audit ...............................................................319
Market intelligence on the Company’s
securitiesа ...................................................................320
Strategic Report
Development strategy
Regulatory sources and internal documents for the Company’s LDP
development and approval
The new LDP was formed in accordance with strategic guidelines for the state and backbone infrastructure
development until 2024, following Decree of the President of the Russian Federation No. 204 dated 7 May 2018
and Order of the Russian Government No. 2101-r dated 30 September 2018 (as amended on 17 August 2019).
The programme’s activities were organised taking into account instructions of the Russian Government
(No. AD-P36-4992 of 20 July 2016), resolutions of the Strategy Committee under PJSC FGC UES’s Board
of Directors with regard to the information submitted as part of LDP implementation quarterly reports (Minutes
No. 49 of 22 June 2017), and the Board’s resolution regarding the plan of consideration of the Company’s LDP
implementation and KPI achievement quarterly reports (Minutes No. 381 of 27 October 2017).
Production indicators
Our assets
PJSC FGC UES branch — MPS
PTL, number1
PTL, length
SS, number2
Capacity, MVA
MPS Centre
MPS North-West
MPS Volga
MPS South
MPS Urals
MPS Siberia
MPS West Siberia
MPS East
Total
391
280
179
428
251
340
218
236
23,328.242
15,448.670
12,781.431
20,085.368
16,750.855
26,200.371
14,290.966
19,379.754
2,323
148,265.66
156
101
88
194
99
121
91
101
950
87,923.900
41,068.626
32,144.580
45,155.035
43,043.490
47,855.254
39,561.400
16,160.831
352,913.116
Performance indicators
Number of SS3
Length of PTLs, including leased ones
Transformer capacity of SS, including
of leased ones
pcs.
ths. km
2015
931
139.1
2016
939
140.3
2017
944
142.4
2018
958
145.9
2019
951
148.3
MVA
334,501
336,356
345,084
351,942
352,913
Change
2019/
2018, %
–0.731
1,624
0.276
274
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
275
1 Including the leased ones.
2 Including leased facilities, as well as switchgear and substation units owned by other entities.
3 Including leased facilities, as well as switchgear and substation units owned by other entities.
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Length of electric grids4
MPS
Designed
voltage class
MPS Centre
Number
MPS
North-West
Length of lines
of route
Number
Length of lines
of route
MPS Volga
Number
Length of lines
of route
0,4
6
10
4
35
110
4
150
220
291
330
32
400
500
50
750
10
800
1150
14,845 КМ
28,718 КМ
12 943,291 КМ
1 750,707 КМ
6 211,270 КМ
2 379,411 КМ
6
20
2
7
33
1
103
97
3
2
6
4,681 КМ
62,317 КМ
0,524 КМ
138,184 КМ
247,484 КМ
0,906 КМ
6 518,111 КМ
6 921,737 КМ
126,581 КМ
4,090 КМ
1 424,055 КМ
3
13,100 КМ
147
7 838,414 КМ
29
4 929,917 КМ
MPS South
Number
3
139
1
32
180
42
30
18,531 КМ
197,878 КМ
3,600 КМ
300,634 КМ
9 517,858 КМ
3 245,802 КМ
6 423,180 КМ
1
377,885 КМ
Total
391
23 328,242 КМ
280
15 448,670 КМ
179
12 781,431 КМ
428
20 085,368 КМ
Length of lines
of route
MPS Urals
Number
Length of lines
of route
2
1
8
35,444 КМ
3,000 КМ
130,731 КМ
MPS Siberia
Number
3
13
3
16
MPS
West Siberia
Length of lines
of route
Number
Length of lines
of route
18,082 КМ
103,170 КМ
15,611 КМ
367,434 КМ
7
51,320 КМ
1
0,890 КМ
MPS East
Number
2
9
3
1
Length of lines
of route
10,812 КМ
19,562 КМ
2,445 КМ
50,940 КМ
200
10 600,076 КМ
244
15 553,749 КМ
157
8 112,857 КМ
206
15 524,148 КМ
39
5 850,404 КМ
59
9 324,725 КМ
53
6 125,899 КМ
15
3 771,847 КМ
1
251
131,200 КМ
16 750,855 КМ
2
340
818 КМ
26 200,371 КМ
218
14 290,966 КМ
236
19 379,754 КМ
Total
Number
6
28
179
15
95
1
1 528
171
3
277
16
1
3
2 323
Length of lines
of route
4,681 КМ
109,742 КМ
435,843 КМ
162,840 КМ
1 126,831 КМ
0,906 КМ
86 608,504 КМ 11 918,246 КМ
126,581 КМ 42 641,332 КМ
3 803,466 КМ
377,885 КМ
948,800 КМ
148 265,657 КМ
Number of substations4
6
1
MPS
MPS Centre
MPS North-West
MPS Volga
MPS South
MPS Urals
MPS Siberia
MPS West Siberia
MPS East
Total
Designed
voltage class
Number
Number
Number
Number
Number
Number
Number
Number
Number
10
35
110
220
330
400
500
750
1150
Total
3
1
58
1
14
35
19
2
1
7
19
1
1
111
51
74
83
75
96
69
92
7
2
23
1
14
14
20
22
22
9
1
58
4
29
651
70
1
125
9
156
101
88
194
99
121
91
101
951
1
2
3
4 Including leased facilities, as well as switchgear and substation units owned by other. entities
276
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
277
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Electricity export and import under PJSC Inter
RAO’s contracts in 2015–2019
International activity
Since 1 January 2004, PJSC FGC UES has acted as a carrier of electricity across the Russian border,
and is a technical operator under commercial contracts concluded for export/import activities performed
by participants of the wholesale electricity and capacity market.
PJSC FGC UES renders electricity transmission services in the territory of the Russian Federation, including
the state border, under the contract with PJSC Inter RAO through the UNEG grid facilities and other facilities
owned or otherwise legally controlled by PJSC FGC UES.
Finland
Estonia
China
Lithuania
Latvia
Russia
PJSC FGC UES
Mongolia
Kazakhstan
Belarus
Azerbaijan
Ukraine
Georgia
No. Country
Azerbaijan
Belarus
Georgia, South Ossetia
Kazakhstan
China
Latvia
Lithuania
Estonia
Mongolia
Ukraine
Finland
1
2
3
4
5
6
7
8
9
10
11
Total
No. Country
Azerbaijan
Belarus
Georgia, South Ossetia
Kazakhstan
China
Estonia
Lithuania
Latvia
Mongolia
Ukraine
Finland
1
2
3
4
5
6
7
8
9
10
11
Total
Actual electricity export, mln kWh
2015
54,848
2016
59,560
2017
63,373
2,815.240
3,180.811
2 732,968
656,564
1,541.999
3,299.350
0,000
557,448
1,164.275
3,319.908
0,000
653,297
1 293,934
3 319,190
0,000
2018
76,150
49,500
351,585
1 346,670
3 108,921
0,000
2019
90,849
31,179
670,203
1 437,460
3 099,125
0,000
2,994.516
3,018.544
3 130,899
4 414,918
6 285,853
0,000
284,450
2,461.972
3,383.435
0,000
299,869
119,644
0,000
371,187
93,923
0,000
415,993
44,939
0,000
372,372
327,857
5,281.610
5 040,337
6 903,038
7 023,414
17,492.374
17,001.669
16 699,108
16 711,714
19 338,312
Actual electricity import, mln kWh
2016
120,143
0,058
147,590
2017
117,251
0,000
261,923
2018
121,367
0,000
96,889
2019
218,569
218,569
0,000
0,000
59,215
59,215
2,725.996
5,736.324
4,824.636
1,243.257
1,243.257
2015
108,365
0,058
169,575
989,666
0,000
0,000
0,000
0,000
114,561
115,575
0,000
54,178
3,756
23,400
0,000
33,867
0,000
0,000
0,000
6,269
85,267
0,000
23,019
0,000
0,000
0,000
0,000
52,102
0,000
26,988
0,000
0,000
0,000
0,000
0,000
0,000
55,055
55,055
0,000
0,000
26,513
26,513
0,000
0,000
0,000
0,000
1,463.559
3,143.229
6,230.053
5,121.982
1,602.609
1,602.609
278
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
279
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Information on Interstate Power Transmission Lines (IPTLs)
and Electricity Transit
Pursuant to Decree of the Russian Government No. 41
of 26 January 2016, power transmission lines that cross
the state border shall comply with the criteria for electric grid
facilities attribution to the UNEG.
PJSC FGC UES collects and processes information about
electricity transmission through 127 IPTLs based on data
of commercial electricity metering devices.
In order to ensure reliable supply of electricity to Russian
customers in the Bryansk, Pskov, Leningrad and Kaliningrad
Regions, to strengthen ties with and develop the international
electricity market, as well as to manage parallel operation
of power systems, PJSC FGC UES entered into an agreement
with JSC SO UES, SIA Belenergo, Elering AS, Augstsprieguma
tikls AS, and Litgrid AB on parallel operation of power systems
in Russia, Belarus, Estonia, Latvia and Lithuania (hereinafter,
the «Agreement on Parallel Operation of BRELL ER»)
on 7 February 2001.
In accordance with the Agreement of 2010 November 2009,
signed by the governments of the Russian Federation and the
Republic of Kazakhstan, on measures for ensuring parallel oper-
ation of their unified power systems, an electricity transit contract
was signed. Under this contract, PJSC FGC UES has been pay-
ing for electricity transit throughout Kazakhstan since May 2010,
aiming to supply electricity to customers in Russia.
In accordance with the Protocol on the Provision of Access
to Services of Natural Monopolies in the Field of Electric Power,
including the pricing and tariff policy (Appendix No. 21 to the
Treaty on the Eurasian Economic Union), it is possible to trans-
mit electricity between the participating countries, including
through the UES of Russia grids.
Parallel Operation of the UES of Russia
and Electric Power Systems of Other Countries
Russia’s power system works in tandem with power systems
of other countries (Georgia, Azerbaijan, Kazakhstan, Belarus,
Ukraine, Estonia, Lithuania, Latvia and Mongolia), in particular
it is connected with the power systems of Finland and China
through HVDC lines of the UES of Russia. There are currently
several contracts in force, stipulating parallel operation of the
Russian UES with electric power systems of foreign states.
The parties to these contracts are PJSC FGC UES and econom-
ic entities of Georgia, Azerbaijan, Kazakhstan, the Baltic States
and the Republic of Belarus. Moreover, agreements on technical
support of parallel operation are signed with Ukraine, the Repub-
lic of Belarus, and Mongolia. The Company also concluded
an Intersystem Contract with Finland and an Intersystem Agree-
ment with the People’s Republic of China.
Being a company that controls the UNEG and IPTLs,
PJSC FGC UES:
coordinates commercial contracts for import/export
of electricity and provides engineering support thereof;
arranges and implements commercial metering of electricity
transmitted via IPTLs;
measures and ensures customs processing of actual volumes
of electricity transmitted across the state border.
To determine the amount of electricity transmitted via each IPTL,
PJSC FGC UES has agreements with foreign electric power
companies to meter transmitted volumes of electricity, according
to which PJSC FGC UES exchanges commercial metering data
with electricity systems of 11 other countries.
As part of international exchange, PJSC FGC UES takes actions
to enhance relationship with the energy systems of neighbour
states in the field of electric power, including the CIS Electric
Power Council and its commissions, the Committee for Energy
Systems of BRELL, working groups in the Executive Committee
of the Electric Power Council of the CIS and the Committee
for Energy Systems of BRELL.
Following the Agreement on Parallel Operation of the Power
Systems of BRELL ER, a permanent working body of the parties
to the Agreement was established on 7 February 2002, i.e.
the Committee of Power Systems of Belarus, Russia, Estonia,
Latvia, and Lithuania (BRELL ER Committee). The committee
focuses on the following objectives:
coordination of principles of joint operation management,
as well as development and approval of legal, technical
and process control documents to regulate parallel operation
of BRELL power systems;
coordination of power companies who operate national power
grids and/or carry out operational dispatch management
of the power systems, which are interconnected with BRELL
power systems;
preparation of recommendations for the purpose of a better
information exchange and control over the compliance with
the requirements for joint parallel operation; announcement
of the forward-looking development of power systems that
influence parallel operation.
In 2019, PJSC FGC UES’s representatives participated in meet-
ings of the BRELL Committee, its working groups on planning
and operational management, and of heads of the parties
to the agreement:
the 36th (extraordinary) meeting of the BRELL Committee,
held on 25 January in Vilnius;
the meeting of the working group on planning and operational
management, held on 5–6 March in Vilnius;
the 37th meeting of the BRELL Committee, held on 9–10 April
The Electric Power Council of the CIS was established
on 14 February 1992 according to the Agreement on Coordina-
tion of Interstate Relations in the Field of Power Industry of the
CIS. The Council is an interstate sectoral authority of the Com-
monwealth of Independent States.
in Vilnius;
the meeting of the working group on planning and operational
management, held on 5–6 September in Tallinn;
the 38th meeting of the BRELL Committee, held
on 22 October in Jurmala;
the 17th meeting of heads of the parties to the agreement,
held on 23 October in Jurmala.
A number of items related to ensuring the reliability of BRELL
power systems were discussed at these meetings, including
those concerning the coordination of settings for relay protection
and automatic reclosing of IPTLs.
The parties discussed their positions regarding the results
of the study of the Baltic States electric power systems’ connec-
tion with the power unit of the Continent; operation of the power
system in the Kaliningrad Region after the connection; prepara-
tion for testing in the BRELL ER; access of the market partici-
pants to electricity trade in the interstate cross-sections Russia–
Estonia, Russia–Latvia; performance of the working group in
terms of regulation of the active capacity transmitted in the
cross-section Ukraine–Belarus; results of tests of the Kaliningrad
Region’s power system in the isolated mode from 22 to 25 May
2019; results of tests of the isolated part of the power system
of Lithuania, held on 18–19 May 2019. The following documents
were coordinated and approved: the list of transmitted telemeter-
ing measurements and telemetering signals between the North-
Western Operational and Dispatch Management Department
and Elering, the Baltic Regional Dispatch Management Depart-
ment and Litgrid; amendments and supplements to the distribu-
tion list of dispatching facilities of CES of Belarus, UES
of Russia, ES of Estonia, ES of Latvia and ES of Lithuania
in accordance with the dispatch management method; amend-
ments to the Guidelines for Prevention of Development and Elim-
ination of Disturbances in the Regular Mode of the Belarus,
Russia, Estonia, Latvia and Lithuania energy ring; the Method-
ological Guidelines for Stability of the BRELL ER Systems;
the Regulation on Operational and Dispatch Management
of Parallel Operation of the CES of Belarus, UES of Russia,
ES of Estonia, ES of Latvia and ES of Lithuania. The following
documents were approved at the meeting of the heads: the Reg-
ulation on Operational and Dispatch Management of Parallel
Operation of the CES of Belarus, UES of Russia, ES of Estonia,
ES of Latvia and ES of Lithuania; Methodological Guidelines
for Stability of the BRELL ER Systems. Representatives of the
transmission network organisations initiated an extraordinary
meeting of the BRELL Committee in respect of desynchronisa-
tion of the Baltic power systems from the UES of Russia
and the CES of Belarus, which was held on 25 January 2019.
Desynchronisation of the Baltic power systems from the Russian
power system and the power system of the Republic of Belarus
is scheduled for completion before 2025.
Heads of respective state authorities and national power compa-
nies of the participating states are part of the CIS Electric Power
Council, who have respective authorities ensured by their states.
Working groups, coordinating councils and target working groups
represent the CIS Electric Power Council.
In 2019, representatives of PJSC FGC UES took active part
in meetings of the working groups of the CIS Electric Power Council
and the Coordinating Council for Implementation of the Interaction
and Cooperation Strategy between the CIS Countries in the Power
Industry, as well as in the development of views on agenda items
and materials for participation and elaboration of legal documents
regulating development of the common electric power market
of the CIS. PJSC FGC UES’ representative leads the working group
on metrological support of the electric power industry of the CIS.
The working groups and coordinating councils developed
and approved the following documents: 2019–2021 Action Plan
of the Commission for Operation and Proccess Coordination
of Joint Operation of the CIS and Baltic Power Systems; 2019–
2020 Action Plan on Implementation of the Agreement on Coop-
eration Between the CIS Electric Power Council and the Inter-
state Council on Standardisation, Metrology and Certification;
Regulation on Inspection of Operation of the CIS’ Electric Power
Enterprise; Regulation on Production Control of the Compliance
with Industrial Safety Requirements at Hazardous Industrial Fa-
cilities of the Electric Power Enterprise of the CIS; Methodologi-
cal Guidelines for Assessment and Man-made Risk Forecast
at Electric Power Facilities of the CIS; Guidelines for Arrange-
ment of Monitoring the Quality Parameters of the Electric Power
Transmitted via the Interstate Electricity Transmission Lines
of the CIS; Methodological Guidelines for Identification of Con-
sumer Categories by Reliability of the Electricity Supply; Method-
ological Guidelines for the Order of Development of Actions
on Compliance with the Requirements of Regulatory Acts and
Organisational and Administrative Documents; Methodological
Guidelines for Arrangement of Emergency Response Drills.
On 25 November 2019, PJSC FGC UES participated in the 55d
in-person meeting of the Electric Power Council of the CIS
chaired by A. Novak, President of the Council and the Russian
Minister of Energy.
The meeting was attended by delegations of electric power man-
agement authorities and electric power companies of the Repub-
lic of Azerbaijan, the Republic of Armenia, the Republic of Belar-
us, the Republic of Kazakhstan, the Republic of Moldova, the
Kyrgyz Republic, the Russian Federation, the Republic of Tajiki-
stan, Turkmenistan and the Republic of Uzbekistan.
In the course of the meeting, documents developed in the working
groups and coordinating councils were endorsed, and the 2020
Action Plan of the Electric Power Council of the CIS was approved.
280
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PJSC FGC UES
PJSC FGC UES
2019 annual report
281
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Establishment of the Common Electricity Market
of the Eurasian Economic Union
The common electricity market of the Eurasian Economic Union
(hereinafter, the «CEM EEU») is established in accordance
with Article 81 of the Treaty on the Eurasian Economic Union
of 29 May 2014, based on the Union member states’ electric
power systems that operate in parallel, and taking into account
the specifics of existing models of their electric power markets.
In 2019, PJSC FGC UES representatives took part in 2019
meetings of the Union’s Subcommittee for CEM EEU Establish-
ment, where draft international laws and regulations, aimed
at the CEM EEU establishment and functioning, were discussed.
On 5 –7 August 2019, they also participated in the meeting
of the Union’s Subcommittee for CEM EEU and the Advisory
Committee on Electric Power under the Board of the Eurasian
Economic Commission, which was held in Cholpon-Ata
(the Kyrgyz Republic).
On 29 May 2019, in Nur-Sultan (Kazakhstan), the Supreme
Eurasian Economic Council signed the International Treaty
in the form of the Protocol on Amendment of the Treaty on the
Eurasian Economic Union of 29 May 2014 (in terms of creation
of a common electric power market of the Eurasian Economic
Union).
In 2020 and further, together with representatives of PJSC FGC
UES, development and discussion of the draft international
laws and regulations related to the CEM EEU establishment
and functioning will continue on the Eurasian Economic
Commission platform.
Cooperation with EVN NPT, the National Power
Transmission Corporation of Vietnam
In 2019, the Company continued to cooperate with EVN NPT under the Memorandum of Understanding dated 2 August 2017. A solid
foundation for this cooperation was provided at the expert level. Over the year, Rosseti FGC UES received a number of requests from
the Vietnamese partners concerning, in particular, productivity improvement programmes, features of lightning protection systems,
preliminary assessment of the current state of development of electric grids in Vietnam.
October
December
At the XXII meeting of the Intergovernmental Russian-Vietnam-
ese Commission for Trade, Economic, Scientific and Technical
Cooperation, the parties noted the Memorandum of Understand-
ing implementation in employee training programmes, and called
for greater cooperation in the area of scientific and technical
advice.
In the period from 2 December 2019 to 6 November 2019,
training of EVN NPT employees on the programmes developed
by Rosseti FGC UES was organised and conducted in Da-Nang
(Vietnam).
Quality Management System (QMS)
In 2015, pursuant to Instruction of the President of the Russian Federation No. PR-3013 dated 2015 December
2014, the Regulation on the Quality Management System of PJSC FGC UES was developed and approved
by the resolution of PJSC FGC UES’s Board of Directors.
In 2018, PJSC FGC UES carried out the following activities to bring the existing QMS in compliance
with the requirements of ISO 9001:2015.
In 2019, the Certification Association Russian Register certified the QMS for compliance with ISO 9001:2015.
According to the results, full adherence of PJSC FGC UES’s QMS to ISO 9001:2015 was confirmed,
and the corresponding certificate with a validity period until 2022 was issued..
Electricity transmission
Key Performance Indicators of PJSC FGC UES
Performance indicators
Declared capacity*
Electric power supply
to consumers
Electricity losses
in the UNEG
Number of consumers of the
electricity transmission service
2015
2016
2017
2018
2019
Change
2019/ 2018, %
Target
2020
MW
87.8
88.3
87.6
86.8
86.4
mln kWh
525,769
540,540
547,351
557,730
558,722
mln kWh,
23,478
25,033
24,307
24,539
23,197
%
ea.
4.47
473
4.63
481
4.44
587
4.4
602
4.15
641
1
83,6
0.18
556,895
5.47
0.25
6
24,455
4.39
670
Technological connection
TC facilities producing electricity implemented
TC load implemented: customers and grid companies
8 944 MW
21 pcs.
5 419 MW
25 pcs.
2 982 MW
19 pcs.
4 949 MW
251 pcs.
3 916 MW
231 pcs.
4 053 MW
17 pcs.
2 766 MW
220 pcs.
2 653 MW
184 pcs.
2 735 MW
154 pcs.
1 972 MW
12 pcs.
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
Information on Activities of the Consumer Council
of PJSC FGC UES
The Consumer Council is an expert collective body and
represents the interests of all consumer groups and public
associations of the business community regarding the delivery
of the RF electric grid complex development strategy, as well
as the improvement of energy infrastructure accessibility
and customer-oriented approach of PJSC FGC UES.
In 2019, the Consumer Council of PJSC FGC UES held
one meeting and reviewed the following items:
replacement in the Consumer Council of PJSC FGC UES;
performance of PJSC FGC UES in 2018;
review of the annual report on public technological and price
audit of investment projects of PJSC FGC UES in 2018.
282
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2019 annual report
283
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Improving the reliability of power supply
Retrofitting and upgrading of fixed assets
2019 Results
Year
Q1
2019
Q2
Q3
Q4
Target
Actual
Target
Actual
Target
Actual
Target
Actual
Target
Actual
pcs. (km) pcs. (km)
% pcs. (km) pcs. (km) pcs. (km) pcs. (km) pcs. (km) pcs. (km) pcs. (km) pcs. (km)
35–750 kV SS
power transformer
of 35 kV
and higher
switch of 35 kV
and higher
disconnector
of 35 kV
and higher
OHL of 35 kV and
higher
integrated
reconstruction
of OHL of 35 kV
and higher
5
4
80 %
192
169
88 %
325
253
78 %
148
14
9 %
wire
support
insulator
17
17.37 102 %
334
422 126 %
32 996
33,827 103 %
ground wire
387
419.71 108 %
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
29
0
1
2
2
2
1
29
0
64
64
99
174
174
151
76
79
0
0
0
0
148
14
0.77
140
2,719
87.90
0.77
140
2,719
87.90
0
145
0
0
16.23
16.60
145
49
137
0
30,277
31,108
13.63
13.63
285.47
318.18
Note. Deviation of the actual values from target ones is related to the adjustment of the Company’s investment programme.
With a view to ensuring the reliable operation of equipment, whose replacement has been deferred, reimbursement activities were
scheduled and implemented as part of the M&R programme on equipment maintenance to comply with the regulatory requirements.
In addition to activities aimed at improving the reliability of power
supply in emergency response, preparing for the autumn-winter
period, rapid replacement of equipment, rejected as per
the results of preventive tests or diagnostics, at electric
grid facilities, in 2019:
OHL areas of 8,039 ha were extended;
automotive and special equipment in the amount of 275 units
was purchased;
emergency reserves were provided in full for all PJSC FGC
UES branches in accordance with the regulations, which
enables the Company to reduce the duration and amount
of resources spent on emergency and recovery work.
Specific accident rate in PJSC FGC UES branches
Distribution of the specific equipment of SS and PTL by 1,000 c.u. of the number of accidents at SS and PTL in 2019 against 2018
and 2017 is given below.
The average specific accident rate for PJSC FGC UES
1.134
0.946
0.828
3
0
2
.
1
1
2
1
.
1
2
1
9
.
0
1
8
5
.
1
8
6
0
.
1
6
7
0
.
1
1
6
0
.
1
2
0
9
.
0
1
7
6
.
0
5
5
1
.
1
7
5
8
.
0
9
7
.
0
2
3
1
.
1
7
8
.
0
5
3
7
.
0
4
3
9
.
0
9
5
8
.
0
8
8
7
.
0
7
9
8
.
0
3
5
8
.
0
3
2
8
.
0
5
8
2
.
1
3
0
1
.
1
8
8
.
0
Volga
East
Western Siberia
North-West
Siberia
Urals
Centre
South
- 2017
- 2018
- 2019
- Av. at FGC 2017
- Av. at FGC 2018
- Av. at FGC 2019
Actions taken in 2019 in order to ensure a smooth operation
of the UNEG during special periods
44 headquarters functioned on a permanent basis in the Compa-
ny’s branches in order to ensure reliable operation of the electric
grid complex in the event of a power failure of consumers
and other abnormal situations. Representatives of the branches
participated in work of the headquarters for the security of elec-
tricity supply established in the constituent entities of the Rus-
sian Federation. The Company concluded 154 agreements
on cooperation with contractors involved in extraordinary and
emergency situations and recovery works at facilities of the
electric grid complex, as well as 64 agreements with Roshy-
dromet, and 84 agreements with the Russian Ministry of Emer-
gency Situations.
The Company has formed an emergency reserve in sufficient
volume to eliminate the consequences of technological distur-
bances. In order to improve the efficiency of the electric grid
facilities management during emergency recovery work,
the Company has 609 backup power sources with a total
capacity of 182.45 MW.
Compared to previous similar periods, the 2019–2020 heating
season saw a noticeable decrease in the total number (specific
accident rate reduced by 12% in 2019) of technological distur-
bances in the Company; the number of accidents caused by per-
sonnel erroneous or incorrect actions also dropped.
Fire Safety
In 2019, one fire was registered at PJSC FGC UES’ facilities. There were no signs of violation of the fire safety rules according
to the investigation.
Number of fires, 2014–2019
5
3
3
1
1
1
2014
2015
2016
2017
2018
2019
284
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APPENDIX 1
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APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
In order to increase the fire safety level and prevent fires in all
units of PJSC FGC branches — MPS, fire safety days are held
once every three months, as a result of which a set of actions
is developed to eliminate identified observations and violations.
The review for the best fire safety status of facilities of MPS
enterprises and the whole MPS branch has been held annually
since 2008.
In the reporting year, MPS Urals became the winner.
16,403 regular fire drills combined with emergency response
trainings and 1,013 trainings together with the firefighting units
of the Ministry of the Russian Federation for Civil Defence,
Emergencies and Elimination of Consequences of Natural Disas-
ters (EMERCOM of Russia) were held as part of the fire safety
training programme for Company employees.
purposes of implementation of purchases of goods for ensuring
the state and municipal needs» following with Instruction
of the Russian Government No. 925 of 16 September 2016
«On priority of goods of the Russian origin, and works and
services which are rendered by Russian persons in relation
to goods coming from foreign state, and works and services
which are rendered by foreign persons.»
Organisational and administrative documents of the Central
Tender Commission were updated, the scheme and regulations
of business processes of procurement activities of PJSC FGC
UES were developed.
Grid development and investment activities
Key parameters of major investment projects
Project
Actions taken as part of the implementation
of Decree of the Government of the Russian
Federation No. 2101-r of 30 September 2018 on
approval of the Comprehensive Plan for Backbone
Infrastructure Modernisation and Extension until 2024
Implementation
period
Start
2003
End
2024
Commissioned
in 2019
Design
capacity
RUB 3.64 bln
627 MVA
9.73 km
3,185 MVA
3,287.7 km
1,118 Mvar
Funding
in 2020–2024,
RUB bln
21,94
Power infrastructure development
in the area of BAM and TransSib
2010
2025
Power delivery of the generation facilities
2009
2025
RUB 26.24 bln
668 MVA
491.57 km
584 Mvar
RUB 8.21 bln
125 MVA
159.25 km
Electric grid development aimed to increase
the reliability of electricity supply to consumers
2005
2024
RUB 0.31 bln
External power supplied to PJSC Transneft
facilities (ESPO)
2011
2023
Creation of electric power infrastructure
for the Power of Siberia gas transportation system
2016
2021
RUB 1.30 bln
160 MVA
18.20 km
RUB 2.90 bln
47.04 km
3,232 MVA
2,899.0 km
4,166 Mvar
1,631 MVA
1,367.8 km
1,600 Mvar
5,136 MVA
4,016.2 km
2,079 Mvar
420 MVA
831.4 km
96 Mvar
50 MVA
166.99 km
84,27
5,26
41,41
9,48
4,56
Development of Communication Networks
and IT Systems
The General Scheme for Creation and Development of the Unified Technology Communication Network of the Electric Power
Industry, applied during the Company’s telecommunication network development, covers all the Company’s enterprises. The general
scheme was approved by the Management Board of JSC FGC UES in 2005 with further amendments.
The key person/body responsible for the development of communication networks and IT-systems in the Company are Architectural
and Strategic Committees for the Development of Information Technologies in PJSC FGC UES.
Procurement activities
Updating of the Company’s procurement methodology
In 2018, in compliance with Federal Law No. 505-FZ dated
31 December 2017, the revised Unified Procurement Standard
of PJSC FGC UES (Regulation on Procurement) was prepared
to enable the implementation of procurement activities according
the rules stipulated by the law on procurement activities from
29 January 2019.
In accordance with Directives of the Russian Government,
amendments were made to the standard in terms of setting
the priority for purchasing domestic products indicated in the
appendix to Order of the Ministry of Finance of Russia No. 126n
of 4 June 2018 «On conditions of the admission of the goods
coming from foreign state or group of foreign states for the
Provision of procurement process
methodology, coordination
of procurement from a single source,
approval of conclusion of supplementary
agreement to contracts, approval
of annual comprehensive procurement
programme of the executive body,
approval of the branches’ annual
comprehensive procurement
programmes in terms of non-competitive
procurement worth more than RUB
100 million, consideration of reports
on the annual comprehensive
procurement programme implementation
Procurement model
FGC BOARD
OF DIRECTORS
Approval of the Procurement Regulation,
the Chairman of the Central Tender
Commission
CHAIRMAN
OF THE MANAGEMENT
BOARD
FGC CENTRAL TENDER
COMMISSION
CONSOLIDATED PLANNING
AND PROCUREMENT
DEPARTMENT
Signing executive documentation
on the procurement activities, following
on the Procurement Regulation. Drafting
and considering consolidated reports
on the procurement activities, reports
on procurement from a single source.
Approval of final minutes or delegation
of authority to approve them to Deputy
Chairmen of the Management Board
and General Directors of the branches
Methodological and operational
management, drafting organisational
and management documents on
procurement activities, supporting Central
Tender Commission and Permanent Tender
Commission. Arranging procurement
planning, procurement process control,
reports, analysis. Automation and
improvement of the procurement process.
JSC ESSK UES management
Approval of procurement
plans for investment
activities and M&R
within existing
competences
PERMANENT TENDER
COMMISSION FOR
INVESTMENT ACTIVITIES
PERMANENT
TENDER
COMMISSION FOR
MAIN ACTIVITIES
Performing procurements, documentation,
archiving, maintaining price register
upon the results of the market research,
drafting consolidated reports on the FGC
procurement activities, owner of KISU-
Zakupki, development of the electronic
trading facility
Current procurement management
in the field, establishing procurement
commission on its basis
Selection of the successful tenderer
in procurement under RUB 100 million
PROCUREMENT COMMISSIONS
AT THE EXECUTIVE OFFICE
COMMISSION LEVEL
Decision-making for choosing counterparties
under the FGC Executive Office and major
procurement of the FGC branches
JSC ESSK UES
AS THE PROCUREMENT
ORGANISER
CENTRE FOR ENGINEERING
AND CONSTRUCTION
MANAGEMENT, EES, FGC
BRANCHES
PERMANENT TENDER
COMMISSION OF THE
BRANCHES
PROCUREMENT
DEPARTMENTS
PROCUREMENT
COMMISSIONS
Procurement customer, drafting technical
part of the documentation, participation
in application assessments, contracting
Needs planning, drafting the annual
comprehensive procurement programme,
preparation for procurement activities
at the branches, reports
SUPPLIERS OF PRODUCTS (GOODS, WORKS, SERVICES)
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287
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Procurement methods
Competition
Auction
The competition is the main procurement method, with or without pre-qualification, without
special procedures, in the absence of expressly provided grounds of carrying out other
procedures (the assumed procurement volume exceeds RUB 10 million (incl. VAT).
It can be only one-stage, with or without pre-qualification. The auction does not provide for post-
qualification or the right to submit alternative proposals. It is held when purchasing products,
for which there is a competitive market of producers and for which the procurement initiator
has formulated detailed requirements in form of the technical task. CPB of PJSC FGC UES
has the right to determine the list of products purchased only following the results of the auction.
Request for proposals
Request for proposals can be with or without pre-qualification. It is held when one
of the following conditions is fulfilled:
Request for quotations
Request for rates
a) the initial (maximum) contract price doesn’t exceed RUB 10 million (incl. VAT);
b) short deadlines — from the date of announcement of the procurement procedure and up to
the start of deliveries, works and services less than 20 calendar days (there is no possibility
to hold an open competition), but there are no circumstances requiring the immediate
procurement from a single source, and the complexity of products or conditions of their
delivery don’t allow for the auction or request for rates.
It is held when purchasing products, for which there is a competitive market of producers
and for which the Procurement Initiator has formulated requirements in form of the technical
task, while meeting the following requirements:
a) the initial (maximum) contract price doesn’t exceed RUB 7 million (incl. VAT);
b) the winner is selected on the basis of only one criterion — the contract price.
When purchasing simple products for which there is a functioning market, the only criterion
is the rate and provided that the contract price doesn’t exceed RUB 5 million for the open
rate request (incl. VAT) based on the results of open competitive procedures, among
the participants, with whom framework agreements have been concluded. It is prohibited
to conduct procurement of complex, unique equipment by means of the request for rates.
Request for rates
on the competitive selection
results
Request for rates on the competitive selection results is held only among the winners
of competitive selection without restrictions in terms of the amount of the initial (maximum)
contract price (lot).
Procurement through participation
in procedures organised by
product sellers
By the decision of the Customer’s CPB, procurement is carried out through participation of the
Customer in auctions, competitions or other procedures organised by product sellers (including
the EP), in case of the need for products which may be available only through participation
in such procedures.
Price comparison
Price comparison is carried out when purchasing products and in cases when the initial
(maximum) contract price does not exceed RUB 500 thousand (incl. VAT), when the Customer’s
revenue for the financial year exceeds RUB 5 billion or does not exceed RUB 100 thousand.
(incl. VAT), and when the Customer’s revenue for the financial year is less than RUB 5 billion.
Procurements from a single
source (provider, contractor)
The decision on the choice of a supplier is accepted by the customer’s CPB or by other
authorising body within its competence in accordance with the Unified Procurement Standard
based on the customer’s information on the conducted market analysis.
They are divided into:
a) procurement of unique goods (works, services) from a single supplier (provider, contractor);
b) procurement from a single source (contractor, provider) in order to prevent emergency
situations or liquidate their consequences.
Structure of regulated procurements
by implementation method, 2019
PTP 0,94 %
С 66,74 %
A 15,23 %
PC 12,49 %
SS 0,79 %
RRCS 0,04 %
RQ 1,01 %
RP 2,76 %
ORQ 0,002 %
- C – E-contest
- ORQ — open request for quotation
- RP — Request for proposals
in the electronic form
- RQ — Request for quotations
in the electronic form
- RRCS — Request for rates
on the competitive selection results
- SS — Procurement from a single
source
- PC — Price comparison
- A — Auction in the electronic form
- PTP — Procurement through
participation in procedures organised
by product sellers
TOTAL
Cost of completed
procedures, RUB mln
Number of completed
procedures, pcs.
In % of the cost of conducted
procedures
By all
means
C
ORQ
RP
RQ
RRCS
PTP
А
SS
PC
154,032
102,800
13,826
451
4
5
4,255
1,550
1,222
65 19,241
23,454
1,442
1,275
1,037
57
1
20
2,197
8,783
100
66.74
0.002
2.76
1.01
0.79
0.04
12.49
15.23
0.94
Information on the cooperation with small and medium-sized
business entities in 2019
In accordance with Federal Law No. 223-FZ of 18 July 2011,
the procurements are carried out with the inclusion of goods,
works, services and innovating and high-technology products
in the procurement plan, the compulsory procurement portion
from small and medium-sized business entities (SME). Since
1 July 2015, when the Decree of the Government of the Russian
Federation No. 1352 of 11 December 2014, which approved
the minimum share of procurement by specific customers from
SME in the amount of 10%, with a further increase in the share
of such procurements (specialised tenders) to 15%, came into
force, annual figures of Company’s procurement from SME
have exceeded those established by law. As of the end of 2019,
the share of specialised tenders exceeded 24%, and the total
share of purchases from SME on a common basis, including
specialised tenders and procurements from SME subcontractors,
amounted to over 63%.
Within the frame of execution of the RF Government Order
No. 867-r of 29 May 2013 «On approval of the action plan
(«road map») «Access extension of small and medium-sized
business entities to the procurements of infrastructure
monopolies and government-sponsored companies»1, in 2014
the Programme of Partnership between PJSC FGC UES and
small and medium-sized business entities was approved
by PJSC FGC UES, and the register of small and medium-sized
business entities that has joined the Partnership Programme
is maintained. The «Road map for the cooperation with SME»
section was also developed on the Company’s official website
www.fsk-ees.ru/suppliers/dorozhnaya_
karta_po_sotrudnichestvu_s_msp.
According to the Decree of the Government of the Russian
Federation No. 1352 of 11 December 2014, the list of goods,
works, services that are to be purchased only from SME
was approved on 27 April 2015. In order to increase the share
of procurement from SME, this list is expanding annually and,
as of the end of 2019, amounted to 117 items. Taking into
account the draft amendments, the procurement plan was
approved by the Federal Corporation for the Development
of Small and Medium-Sized Enterprises in 2019.
5 At present, the Directive No. 867-r has been fulfilled (Directive No. 174-r of the Russian Government dated 6 February 2016).
288
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APPENDIX 1
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APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
In order to ensure the efficiency of procurement conducted
by PJSC FGC UES for small and medium-sized enterprisers,
on 25 February 2014, the composition of the advisory body —
the Council of SME — was approved, which included the
following representatives:
JSC Rosseti;
Chamber of Commerce and Industry of the Russian
Federation;
Skolkovo Foundation;
Association of Enterprises of the Power Constructing
Complex;
Compliance Evaluation and Monitoring Directorate
of JSC Corporation SME;
Committee on Innovation of NAPI;
Procurement and Sales Management Institute named
after A.B. Solovyov of NRU HSE;
Energy Committee of the All-Russian Public Organisation
of SME OPORA ROSSII;
RUSENERGOSBYT LLC.
There are regular interactions with development institutions,
as well as organisations and industry associations to support
SME and increase procurements of such SME in the total annual
procurement volume of the Company. An efficient instrument
in such work was the Council of SME. The next expanded
meeting of the Council of SME together with PJSC Rosseti
as part of Supplier Day of Federal Grid Company was held
on 17 June 20191. Representatives of SME were informed
about the amendments to Procurement Law No. 223-FZ,
and the approval of the new Unified Procurement Standard
of PJSC FGC UES, as well as the peculiarities of participation
in procurement in the electric power industry with an invitation
to procurement for the needs of PJSC FGC UES in 2019 year.
The work is carried out with the suppliers (contractors, providers)
who have joined the Partnership Programme between PJSC
FGC UES and SME2. The register of such SME is maintained,
information on which is posted on the official website of PJSC
FGC UES.
According to the Company’s innovation development plan and
the needs for innovation and high-technology products, the list
of goods, works and services that meet criteria for being qualified
as innovative products, advanced technology products has been
developed and approved8. The innovative products procurement
plan for 2016–2020 was placed in the UIS on 27 December
2016. In the reporting period, the amendments were made to the
innovation plan for 2019, and a draft Regulation of SME Appeals
for the implementation of innovative proposals was prepared.
PJSC FGC UES procurements in regions in 2019
Region
Executive Office (Moscow)
MPS Volga (Samara)
MPS East (Khabarovsk)
MPS West Siberia (Surgut)
MPS North-West (Saint Petersburg)
MPS Siberia (Krasnoyarsk)
MPS Urals (Yekaterinburg)
MPS Centre (Moscow)
MPS South (Zheleznovodsk)
Total
Amount,
RUB ths. incl. VAT
Share in the total
procurement volume, %
29,567,523.7
2,692,157.8
15,315,976.1
5,963,923.7
24,794,296.3
18,837,506.2
5,144,231.3
40,008,660.5
11,707,564.2
19.2%
1.7%
9.9%
3.9%
16.1%
12.2%
3.3%
26.0%
7.6%
154,031,839.9
100.0%
Information on complaints sent to the Federal Antimonopoly
Authority on actions of PJSC FGC UES when carrying
out the procurement activity
11
40
2
4
7
6
- Considered invalid
- Considered valid
- Revoked by the applicant
- Considered partially valid
- Left unconsidered
- Under consideration
The main objects of complaints were:
wrongful rejection/admission of a participant in the procurement procedure;
violation of the re-sale procedure;
incorrect evaluation of the participants’ applications;
incorrect operation of the operator RTS-Tender Electronic Trading Platform;
non-compliance with the requirements for the content of procurement notices and procurement documentation.
6 Unnumbered Minutes dated 17 June 2019.
7 In compliance with the Order of the Company No. 92. of 25 February 2014.
8 Order No. 500r of 30 November 2016.
290
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
291
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Analysis of Financial Performance
Company’s profit distribution
Retained profit and dividend payments, RUB ths.*
Retained profit (or loss) for the reporting
period, incl.:
Reserve fund
Development
2016
(for 2015)
2017
(for 2016)
2017
(for Q1 2017)
2018
(for 2017)
2019
(for 2018)
17,870,137
106,070,911
8,837,987
42,361,640
56,186,93
893,507
5,303,546
–
21,599,974
–
–
2,118,082
2,809,347
19,935,757
32,928,227
Payment of dividends
16,976,630
18,184,825
1,423,129
20,307,801
20,449,361
Cover for losses of previous periods
–
60,982,566
–
–
–
Information on profit distribution and dividends paid is presented in accordance with the resolutions of the Annual General Meetings
of Shareholders (AGM):
AGM 2016 (for 2015) – Minutes No. 17 of 4 July 2016;
AGM 2017 (for 2016) – Minutes No. 18 of 3 July 2017;
AGM 2018 (for 2017) – Minutes No. 20 of 2 July 2018;
AGM 2019 (for 2018) – Minutes No. 22 of 28 June 2019.
Key financial and economic indicators, 2017–2019,
RUB mln
No.
Indicator
1
1.1.
1.2.
1.3.
1.4.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Revenue from sales of products (services), incl.:
Electricity transmission
Technological connection
Electricity sales
Other activities
Cost of products (services)
Gross profit
Administrative expenses
Selling expenses
Profit (loss) on sales
Interest receivable
Interest payable
Income from participation in other organisations
Other income
Other expenses
Profit (loss) before taxation
Tax on profit and other payments
Net profit (loss)
EBITDA*
2017
216.0
192.6
21.4
2.0
–152.4
63.6
–8.3
55.4
8.6
–3.9
1.9
23.5
–24.9
60.6
–18.2
42.4
129.3
2018
240.3
213.6
24.3
2.4
–170.8
69.5
–8.5
61.0
8.1
–4.0
2.5
25.7
–19.8
73.4
–17.2
56.2
129.0
2019
242.7
223.1
17.2
2.3
–174.4
68.3
–9.0
59.3
8.5
–4.9
1.7
24.7
–14.8
74.5
–16.4
58.1
129.4
* Excluding operations for the accrual and restoration of provisions for doubtful debts, financial performance
related to the sale of and change in the cost of quoted financial assets, and revenues from technological connection.
Analysis of changes in the account receivables*, RUB mln
Indicator
As of 31 Dec 2016
As of 31 Dec 2017
As of 31 Dec 2018
As of 31 Dec 2019
Account receivables, incl.:
Buyers and customers, incl.:
electricity transmission
technological connection services
Notes receivable
Advances made
Other account receivables
135.2
100.5
39.5
57.4
20.6
0.5
13.6
128.4
112.8
36.3
74.8
0.6
0.3
14.7
169.9
121.9
29.6
91.1
0.6
1.6
45.7
132.0
117.6
24.6
92.1
0.6
0.6
13.1
The decrease in other account receivables in 2019 is mainly due
to the repayment of debt arising from the sale in 2018 of part
f PJSC Inter RAO stake within the framework of the Government
Directive of the Russian Federation No. 4298p-P13 dated
13 June 2018.
In 2019, for the purpose of collecting the debt from counterparties
by PJSC FGC UES’ Executive Office, 199 claims were sent
to arbitration courts, including those related to the inclusion of debtors’
requests to collect payment for electricity transmission services
in the register. Total claims amounted to RUB 12,745.93 million.
Following the results of consideration of these cases, rulings were
issued to collect account receivables for electric power transmission
services in favor of the Company in respect of 129 cases, totaling
RUB 2,637.41 million.
Analysis of changes in account payables, RUB mln
Indicator
на 31.12.2016
на 31.12.2017
на 31.12.2018
на 31.12.2019
Accounts payable, incl.:
Suppliers and contractors
Notes payable
Advances received
incl. TC agreements
Taxes and duties
Other payables
60.0
31.0
8.2
6.4
16.7
4.1
54.5
30.4
12.5
11.8
7.3
4.3
68.2
39.3
13.2
11.2
11.0
4.7
64.3
64.3
32.3
32.3
8.9
8.9
7.2
7.2
7.0
7.0
16.1
16.1
The increase in other account payables as of 31 December
2019 is due to a higher amount of debt to shareholders in terms
of the payment of interim dividends for 9M 2019. In compliance
with Directive of the Government of the Russian Federation
No.10641p-P13 of 22 November 2019, the Extraordinary
General Meeting of Shareholders of the Company (Minutes
No. 23 dated 31 December 2019) decided to pay interim
dividends in the amount of RUB 11.2 billion.
Company’s investments lead to estimated income
level of more than 10% per year
There are no such investments in the Company.
292
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
293
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Issues of the Company’s outstanding bonds
As of 31 December 2019, the following Company bond are outstanding:
Type of bonded loan
Outstanding volume
with a nominal value,
RUB
Registration
number
Date
of placement
Maturity date/
offer
Current coupon rate
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
7,534,586,000
4-06-65018-D 28 Sep 2010 15 Sep 2020/–
1,760,821,000
4-07-65018-D 29 Oct 2010 16 Oct 2020/–
7,314,887,000
4-08-65018-D 28 Sep 2010 15 Sep 2020/–
667,049,000
4-09-65018-D 29 Oct 2010 16 Oct 2020/–
29,151,000
4-10-65018-D 28 Sep 2010 15 Sep 2020/–
520,989,000
4-11-65018-D 29 Oct 2010 16 Oct 2020/–
10,000,000,000
4-13-65018-D
5 Jul 2011 22 Jun 2021/–
619,000
4-18-65018-D 12 Dec 2011
419,838,000
4-21-65018-D 24 Oct 2012
10,000,000,000
4-22-65018-D
8 Aug 2012
27 Nov 2023/
5 Jun 2020
6 Oct 2027/
16 Apr 2024
21 Jul 2027/
3 Aug 2022
8.25%
7.50%
8.25%
0.1%
7.75%
0.1%
8.50%
6.80%
7.40%
7.60% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 2.5%)
10,000,000,000
4-23-65018-D 10 Jun 2013 27 Apr 2048/– 4.80% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
10,000,000,000
4-24-65018-D 25 Jan 2013
31,082,000
4-25-65018-D
2 Oct 2012
15,000,000,000
4-26-65018-D 13 Aug 2013
11,000,000,000
4-27-65018-D 13 Aug 2013
7 Jan 2028/
24 Jan 2020
14 Sep 2027/
29 Sep 2020
30 Jun 2048/
9 Jul 2047
30 Jun 2048/
9 Jul 2047
20,000,000,000
4-28-65018-D 10 Jun 2013 27 Apr 2048/–
20,000,000,000
4-29-65018-D 21 Oct 2013
10,000,000,000
4-30-65018-D 13 Dec 2013
14,000,000,000
4-34-65018-D 13 Dec 2013
20,000,000,000
4-37-65018-D
6 May 2015
20,000,000,000
4-38-65018-D
6 May 2015
8.00%
5.00%
5.00% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
5.00% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
4.80% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
5.30% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
4.80% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
4.80% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
5.00% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
5.00% (coupons are calculated
according to the formula*:
Ki = (CPI – 100%) + 1%)
9.35%
7.75%
7 Sep 2048/
17 Sep 2046
30 Oct 2048/
8 Nov 2046
30 Oct 2048/
7 Nov 2047
23 Mar 2050/
5 Apr 2045
23 Mar 2050/
5 Apr 2045
17 Oct 2051/
30 Nov 2021
6 Sep 2052/
21 Oct 2022
Exchange bonds
10,000,000,000 4В02-02-65018-D 29 Nov 2016
Exchange bonds
9,000,000,000 4В02-03-65018-D 20 Oct 2017
Type of bonded loan
Outstanding volume
with a nominal value,
RUB
Registration
number
Date
of placement
Maturity date/
offer
Current coupon rate
continuation
Exchange bonds
7,000,000,000 4В02-04-65018-D
6 Dec 2017
23 Oct 2052
6 Dec 2023
001Р-01R Series
Exchange Bonds
placed under
the Exchange
Bond Programme
001Р Series
Exchange Bonds
Programme
10,000,000,000
4B02-01-65018-
D-001P
25 Oct 2018 19 Oct 2023/–
Up to 200,000,000,000
4-65018-D-001P-
02E
29 Mar 2018
Bond issue
maturity
under the
Programme
is up to
35 years
7.6%
8.7%
Financial performance
2015
2016
2017
2018
2019
Change
2019/2018, %
Target
2020
Debt portfolio, RUB mln
274,660.368
261,653.463
254,283.389 243,901.82
224,481.57
–7.96% 256,590.72
Financial leverage
0.43
0.38
0.37
0.37
0.35
–5.4%
0.39
Tariff Regulation
Planned values of reliability and quality indicators for the FGC
services established by the FTS of Russia for 2015–2019
Service reliability indicator
Services quality level indicator
2015
0.03602
1.23908
2016
0.03548
1.22049
2017
0.03495
1.20219
2018
0.03443
1.18415
2019
0.03391
1.16639
The list of main regulatory acts regulating the issues of tariff setting
and electricity transmission activities through UNEG
Federal Law No. 35-FZ of 26 March 2003 on Electric Power
Industry;
Resolution of the Russian Government No. 1178 of 29
December 2011 on Pricing in Regulated Areas (Tariffs)
in the Electric Power Industry;
Resolution of the Russian Government No. 1220
of 31 December 2009 on Defining the Applicable Indicators
of Reliability and Quality of Goods and Services Provided
in Establishing Long-Term Tariffs;
Resolution of the Russian Government No. 1172
of 27 December 2010 on Approval of the Rules for the
Wholesale Electricity
and Capacity Market and Amendment of Certain Acts
of the RF Government Related to Organising the Functioning
of the Wholesale Electricity and Capacity Market;
Resolution of the Russian Government No. 861
of 27 December 2004 on Approval of the Rules for Non-
Discriminatory Access to Electricity Transmission Services
and Provision Thereof, the Rules for Non-Discriminatory
Access to Services on Operational Dispatch Management
in the Electric Power Industry and Provision Thereof, the Rules
for Non-Discriminatory Access to Services of the Wholesale
Market Administrator and Provision Thereof, the Rules
for Technological Connection of Power Receivers of Electricity
Consumers, Power Generating Facilities, and Electric Grid
Facilities Owned by Grid Organisations and Other Entities,
to Electric Grids;
Resolution of the Russian Government No. 977 of 1 December
2009 on Investment Programmes of Electric Power Industry
Entities;
Russian FTS Order No. 56-e/1 of 21 March 2006 on Approval
of the Guidelines for Calculation of Tariffs for Electricity
Transmission via Unified National (All-Russia) Electric Grid;
Russian FTS Order No. 228-e of 30 March 2012 on Approval
of the Guidelines for Regulation of Tariffs Using the Return
on Equity;
Russian FTS Order No. 53-e/1 of 12 April 2012 on Approval
of the Procedure for Preparing of a Consolidated Balance
Forecast for Electricity Generation (Capacity) and Supply
Within the Unified Energy System of Russia by Constituent
Entities of the Russian Federation and the Procedure
of Determining the Ratio of the Total Forecasted Annual
Electricity Consumed by the Population and Similar Consumer
Categories to the Volume of Electricity, Corresponding to the
Annual Average Forecasted Capacity Determined for These
Consumer Categories.
294
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
295
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Tariffs for technological connection services
The FAS of Russia defines two payment methods for
technological connection to the UNEG facilities: the approval
of an individual payment for a specific applicant (in case if
construction of electrical grid facilities is required) and the
approval of a payment per formula using the standard tariff C1
rate.
During the period from 2013 to 2017, the Federal Tariff Service
of Russia and the Federal Antimonopoly Service of Russia
approved the standardised tariff rate C1 for PJSC FGC UES
in the amount of RUB 23.64 to 28.61 for 1 kW (excl. VAT).
Order of FAS of Russia No. 1135/17 of 29 August 2017 on
Approval of Guidelines for Determining the Amount of Payment
for Technological Connection to Electric Networks established
a new procedure for calculating the charge of the C1
standardised tariff rate for technological connection to UNEG on
the basis of 1 connection (1 contract for technological
connection), differentiated by three categories of applicants.
Order of the FAS of Russia No. 1689/19 of 18 December 2019
on Approval of the Payment for Technological Connection of
Power Receivers of Electric Power Consumers, Electric Power
Generation Facilities, and Electric Grid Facilities owned by Grid
Organisations and Other Persons to Unified National Facilities
in the Form of a Formula for 2020 approved the C1
standardised tariff rate for three categories of applicants
in the amount of:
1RUB 1,329,306.64 excl. VAT for technological connection
of facilities for the production of electricity, the connected
capacity of which exceeds 5 MW;
RUB 665,149.05 excl. VAT for technological connection
of power receiving devices, as well as electric grid facilities,
the connected capacity of which exceeds 5 MW;
RUB 613,958.85 excl. VAT for technological connection
of power receiving devices and power industry facilities,
the connected capacity of which does not exceed 5 MW
In 2019, the payment for technological connection on an individ-
ual project was established for 12 consumers for a total of RUB
3.419 billion (excl. VAT).
The applicants with the highest fee include:
RUB 2,066 million — JSC Verkhne-Volzhskaya Generation
Company;
RUB 332 million — LLC Enel Rus Wind Azov;
RUB 324 million — JSC RZD, Kievskaya SS;
RUB 293 million — JSC RZD, Gostagaevskaya SS;
RUB 215 million — JSC RZD, Chekon SS;
RUB 133 million — JSC RZD, Sgibeevo SS.
Dynamics of the approval of individual payment
for technological connection, 2010–2019, RUB billion.
42,71
37,38
34,48
22,38
6,15
1,25
1,39
1,43
16,64
3,42
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Direct economic value added and distributed
PJSC FGC UES Economic Performance, 2017–2019, RUB billion
Name
Economic value added
Revenue
Economic value distributed
Operating costs
Wages and salaries, other payments and benefits for personnel
Payments to equity contributors
Payments to the state budget
Community investments
Economic value retained
2017
226,727.2
226,727.2
122,600.5
49,564.5
20,524.1
23,549.4
28,871.7
90.8
2018
2019
251,132.7
251,132.7
155,073.4
72,759.5
21,835.2
22,862.8
37,385.4
230.5
256,974.1
256,974.1
154,124.5
70,105.4
22,910.7
25,363.1
35,367.6
377.7
104,126.8
96,059.3
102,849.6
Sustainable Development
and Corporate Social Responsibility
HR Management
The HR Management Policy of JSC FGC UES was approved by the Management Board of JSC FGC UES
on 14 November 2014 (Minutes No. 1269). The document declares the main targets, objectives, approaches
and activities of the Company, its branches, subsidiaries and affiliates to further improvement of the work
with personnel in compliance with the Strategy for the Development of the Electric Grid Complex approved
by the Government of the Russian Federation (Decree of the Government of the Russian Federation No. 511-r
of 3 April 2013).
Number of employees by type of employment contract and gender, persons
GRI 102-8
Type of employment contract
Permanent
Temporary
Men
18,471
240
Number of employees
Number of employees by type of employment and gender, persons.
GRI 102-8
Type of employment
Full
Part-time
Number of employees
Men
18,571
77
Women
3,476
245
Women
3,576
69
Number of employees by type of employment contract and department, persons.
GRI 102-8
Department
Executive office
MPS Centre
MPS North-West
MPS Volga
MPS South
MPS Urals
MPS West Siberia
MPS Siberia
MPS East
Permanent
employment contract
Temporary employment
contract
809
3,848
2,274
1,892
3,117
2434
2035
3,431
2,107
39
116
86
24
23
47
111
27
12
296
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
297
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Employees hired in 2019 with a breakdown by age, gender and branch GRI 401-1
Gender
Age
Executive Office
MPS Centre
MPS North-West
MPS Volga
MPS South
MPS Urals
MPS Siberia
MPS West Siberia
MPS East
Total
%
69
3.02%
397 17.35%
244 10.66%
196
8.57%
341 14.90%
189
8.26%
387 16.91%
247 10.80%
218
9.53%
M
37
308
175
134
273
124
261
186
158
Total for PJSC FGC UES
2,288
1,656
under 25
25–50
50+,
pensioners
Working
pensioners
3
104
83
51
74
51
97
74
89
41
237
124
87
179
106
212
137
97
19
43
30
25
49
18
47
14
25
6
13
7
33
39
14
31
22
7
626
1,220
270
172
F
32
89
69
62
68
65
126
61
60
632
Regulation on Formation of Organisational Structures
of PJSC FGC UES Branches — Main Power Transmission
Lines;
Regulation on Formation of Organisational Structures
of PJSC FGC UES Branches — the Enterprises of the Main
Power Transmission Lines;
The list of typical positions in PJSC FGC UES branches —
MPS/EMPS;
Regulation on Formation of Organisational Structures of Pro-
duction Structural Units of PJSC FGC UES Branches —
the Enterprises of the Main Power Transmission Lines.
The list of the HR Policy targets, established at the level
of heads of the Executive Office and the Company’s branches
Active staff turnover rate (control period is a quarter);
staffing rate (control period is a year);
performance rate of schedule of control emergency training,
conducted at FGC Personnel Training Centre9 and MPS
Personnel Training Centre (control period is a quarter);
personnel training plans implementation rate (control period
is a year);
intra-corporate action plan implementation rate (control period
is a quarter/year).
Employees fired in 2019 with a breakdown by age, gender and branch GRI 401-1
GRI 103-2
Company Personnel Management System
Executive Office
MPS Centre
MPS North-West
MPS Volga
MPS South
MPS Urals
MPS Siberia
MPS West Siberia
MPS East
active
turn-
over
Total
88
7.10%
345
264
188
440
223
227
221
220
4.95%
4.89%
2.42%
6.67%
3.05%
3.93%
5.21%
5.00%
Gender
Age
M
43
253
207
150
337
176
182
181
175
F
45
92
57
38
103
47
45
40
45
under 25
25–50
50+,
pensioners
Working
pensioners
2
55
45
25
57
51
42
53
36
71
179
158
113
249
107
137
124
139
8
50
40
21
89
35
31
24
24
7
61
21
29
45
30
17
20
21
Total for PJSC FGC UES
2,216
4.64%
1,704
512
366
1,277
322
251
Company’s internal regulatory sources
in the field of HR management
Distribution of duties between the heads of the Executive
Office of PJSC FGC UES;
The internal labour regulations for the employees of the Exec-
utive Office of PJSC FGC UES;
PJSC FGC UES Policy regarding personal data processing;
Provisions on the Personal Data Protection in JSC FGC UES;
Regulation on Personnel Recruitment and Personnel Appoint-
ment to the Executive Office of PJSC FGC UES;
Regulation on the Recommendation of Employees to State
Awards, President of the Russian Federation Awards, Gov-
ernment Awards, Departmental Awards, the Russian Associ-
ation of Electric Energy Employers (RaEl) Awards, PJSC
Rosseti Awards, CIS Electric Power Council Awards and
Corporate Awards;
Qualification requirements for managers;
The procedure for organisation of personal receptions and
meetings of PJSC FGC UES management with employees;
Regulation on the Procedure for Formation of the Organ-
isational Structure and Development of Organisational
and Structural Documents of PJSC FGC UES Executive
Office;
Regulation on Remuneration and Material Incentives
for Employees of PJSC FGC UES Executive Office;
Regulation on Formation of a Social Package for Position
Categories of PJSC FGC UES Executive Office;
Regulations on the Procedure for Development, Coordination
and Approval of Organisational and Structural Documents
of Structural Units of PJSC FGC UES Branches — MPS/
EMPS;
Regulation on Remuneration and Labour Motivation for Em-
ployees of PJSC FGC UES Branches — MPS/EMPS;
Regulation on Formation of a Social Package for Posi-
tion Categories of PJSC FGC UES Branches — MPS/
EMPS;
DEPUTY CHAIRMAN OF THE
MANAGEMENT BOARD
HR MANAGEMENT AND DEVELOPMENT
DEPARTMENT OF HR MANAGEMENT
AND ORGANISATION DESIGN
DIRECTORATE OF SOCIAL PROGRAMMES
PERSONNEL TRAINING CENTRE
MPS BRANCHES:
DIRECTOR OF CORPORATE SERVICES
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9 The Personnel Training Centre.
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Employee Complaint Mechanisms
Support of healthy lifestyle
At PJSC FGC UES, consideration of citizens’ appeals is carried out in accordance with the Federal Law No. 59-FZ of 2 May 2006 on the
Procedure for Consideration of Appeals of Citizens of the Russian Federation. Work with employee appeals is carried out on an ongoing
basis, through meetings of managers with labour collectives and employees (Procedure for Organisation of Personal Appointments and
Meetings of PJSC FGC UES Management with employees was approved by Order No. 511 dated 7 December 2017).
Personnel Training
Share of FGC UES employees participating in training activities, and the ratio of personnel
raining costs to the payroll, 2019, %
0,68
0,69
0,69
0,68
0,59
0,62
0,59
0,62
0,60
0,20
%
1
3
%
5
8
%
0
5
%
2
6
%
2
4
%
5
7
%
3
5
%
7
6
%
3
4
%
7
8
%
7
4
%
5
9
%
9
4
%
7
9
%
7
6
%
1
8
%
5
6
%
1
8
%
2
5
Executive Office
MPS Volga
MPS East
MPS
West Siberia
MPS
North-West
MPS Siberia
MPS Urals
MPS Centre
MPS South
Total across
the Company
- Share of trained employees, %
- Including at own training centres, %
- Training costs/actual salary ratio, %
Interaction with universities and colleges
One of the directions of PJSC FGC UES Youth Policy is the de-
velopment of mutually beneficial cooperation with specialised ed-
ucational institutions.
Key areas of cooperation:
training, professional re-training and advanced training
of employees (82 students are getting their employer-spon-
sored education in 13 higher educational establishments
under employer-sponsored education agreements);
arrangements for practical staff training, including organisation
of on-the-job training for students at the facilities of PJSC FGC
UES (2019: 980 students), summer work for students
at construction sites (2019: 190 students), Young Engineer
School for undergraduates in Personnel Training Centre Bely
Rast (2019: 27 students);
professional orientation including organisation of introductory
tours at Company’s production sites (2019: 1,626 people),
All-Russia Day of PJSC FGC UES in educational institutions
(2019: 1,960 students and teachers);
staff support of the educational process. Approx. 60 employ-
ees of the Company are tutors of student qualification papers
or take part in thesis defence or state examination committees;
improvement of educational standards and professional com-
petencies in cooperation with educational institutions, adapta-
tion of training programmes, as well as topics of graduation
and term papers of students to the production specifics
of PJSC FGC UES;
modernisation of educational and scientific infrastructure
of educational establishments. Annually the Company sup-
ports educational establishments in purchase of lab equip-
ment and classroom modernisation. In 2019, with the support
of PJSC FGC UES, premises, laboratories, and a workshop
of Relay Protection and Automation of Power Systems De-
partment were renovated at the National Research University
Moscow Power Engineering Institute;
participation of students and post-graduates in events organ-
ised by PJSC FGC UES.
PJSC FGC UES actively supports initiatives related to sports and
healthy lifestyle. In 2019, FGC UES’s indoor soccer, volleyball,
basketball, swimming, table tennis, racing and other teams
participated in corporate tournaments of PJSC Rosseti and in
tournaments organised in cooperation with the Ministry of Energy.
In May 2019, the corporate indoor soccer tournament of PJSC
FGC UES and the 5th corporate GTO Spartakiad took place.
In November 2019, the IX Traditional Open Chess Tournament
of Power Engineers in memory of M. Botvinnik was organised
by PJSC FGC UES and JSC NTC FGC UES. The tournament
welcomed 38 teams of power companies, equipment
manufacturers, scientific and research institutes,
establishments of higher education.
Award Policy
In order to raise motivation for effective performance and provide
moral and financial awards for high results, PJSC FGC UES
has been successfully implementing a Programme of Giving
State Awards, Awards by the Government and Ministry of Ener-
gy of the Russian Federation, All-Russian Industrial Association
of Employers in Energy Sector (Association «ERA of Energy»),
CIS Electric Power Council, PJSC Rosseti and corporate awards
to its employees.
PJSC FGC UES has established the following corporate awards:
the title Honoured Employee of Federal Grid Company, the title
Veteran of Federal Grid Company, a badge of honour For Contri-
bution to the Development of Federal Grid Company, First Class
and Second Class, a badge of honour For Professional Skills,
a badge of honour For Construction and Reconstruction of Electric
Grid Facilities, putting a photo to the Recognition Board of PJSC
FGC UES, honorary Diploma and a letter of Commendation.
The Programme provides for awarding employees who have
rendered great service to the State, electric power industry,
PJSC FGC UES, demonstrate high performance and manage-
ment efficiency, or achieve great results in the operation, con-
struction and re-construction of electric grid facilities, in creation
and implementation of new technologies, or have implemented
advanced labour management techniques, have demonstrated
professionalism in prevention or mitigation of accidents, restora-
tion of power facilities, who are respected by colleagues,
and promote corporate values.
The teams of PJSC FGC UES’ branches that have ensured
reliable operation of equipment, achieved the best performance
indicators, and demonstrated good results in the mastering
and introduction of new equipment and technologies are award-
ed the title «Best Branch of Federal Grid Company — MPS»
and «Best Enterprise of Federal Grid Company — EMPS».
In 2019, at the recommendation of PJSC FGC UES, 1,437 em-
ployees of PJSC FGC UES and its subsidiaries and contractors
were awarded, of which:
4 employees were given state awards;
22 employees were awarded by the Electric Power Council
of the Commonwealth of Independent States;
129 employees received awards from the Ministry
of Energy of the Russian Federation;
158 employees were awarded by the Association ERA
of Russia;
161 employees who made major contributions to the
development of the electric grid complex received corporate
awards from PJSC Rosseti;
963 employees were given corporate awards of PJSC FGC
UES.
Employees of PJSC FGC UES subsidiaries received awards
from the entities of the Russian Federation and subsidiaries
for their contribution to the development of the regional electric
grid complex.
For ensuring reliable operation of equipment, development
and introduction of new equipment and technologies,
introduction of progressive forms and methods of labour
organisation and management in 2019, the title The Best Branch
of Federal Grid Company — MPS» was awarded to
PJSC FGC UES — MPS Siberia, the title «Best Enterprise
of Federal Grid Company — EMPS» was awarded
to Krasnoyarsk EMPS.
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APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Occupational Health and Safety
The main documents regulating the maintenance
of occupational health and safety in the Company
Federal Law No. 116-FZ as of 21 July 1997 On industrial safety
of hazardous industrial facilities;
Rules for organisation and implementation of production control
over compliance with industrial safety requirements at a hazard-
ous production facility (Resolution of the Russian Government
No. 263 of 10 March 1999);
Resolution of the Government of the Russian Federation
No. 1365 as of 25 October 2019 On preparation and certification
on industrial safety, safety of hydraulic structures, safety in electric
power industry;
Federal norms and regulations on industrial safety Regulations
on industrial safety of hazardous production facilities where equip-
ment operating under excess pressure is used (approved
by Order of Rostekhnadzor No. 116 of 25 March 2014);
Federal norms and regulations on industrial safety «Safety rules for
hazardous industrial facilities where lifting facilities are used» (ap-
proved by Order of Rostechnadzor No. 533 of 12 November 2013);
Typical regulation on production control over compliance with
industrial safety requirements at hazardous production facilities
of PJSC FGC UES (Regulation of PJSC FGC UES No. 449r as
of 2 November 2016);
Regulations on occupational health and safety at work at height
(Order of the Ministry of Labour of the Russian Federation
No. 155n as of 28 March 2014 as amended by orders of the
Ministry of Labour of the Russian Federation No. 383n
as of17 June 2015, No. 826n as of 20 December 2018);
Regulations on occupational health and safety rules for loading-un-
loading operations and cargo placement (Order of the Ministry of La-
bour of the Russian Federation No. 642n as of 17 September 2014);
Safety regulations when working with tools and appliances.
Approved by the Ministry of Energy of the USSR on 30 April
1985 (SO 153-34.03.204, RD 34.03.204) (in the part not contra-
dicting the Regulations on occupational health and safety when
working with tools and appliances);
Regulations on occupational health and safety in timber and
woodworking enterprises and during forestry operations (Order
of the Ministry of Labour of the Russian Federation No. 835n
as of 2 November 2015 as amended by Order of the Ministry
of Labour of the Russian Federation No. 464n as of 9 July 2018);
Regulations on occupational safety in the storage, transportation
and sale of petroleum products (Order of the Ministry of Labour
of the Russian Federation No. 873n from 16 November 2015);
Regulations on occupational health and safety in electric welding
and gas-welding operations (Order of the Ministry of Labour
of the Russian Federation No. 1101n as of 23 December 2014);
Regulations on occupational health and safety on works on linear
structures of cable transmission lines (PO RO-45-009-2003)
(Order of the Ministry of Ministry of Digital Development,
Communications and Mass Media of the Russian Federation
No. 39 as of 10 April 2003);
Regulations on occupational safety for work on radio relay lines
(POT RO-45-010-2002) (Order of the Ministry of Ministry of Digital
Development, Communications and Mass Media of the Russian
Federation No. 148 as of 25 December 2002);
Regulations on occupational health and safety during painting
works (Order of the Ministry of Labour of the Russian Federation
No. 127n as of 7 March 2018);
Decisions on occupational health and safety in construction proj-
ects and work projects (Resolution of the State Committee
for Construction of Russia No. 122 as of 17 September 2002);
Regulations on occupational health and safety in construction
(Order of the Ministry of Labour of the Russian Federation
No. 826n as of 20 December 2018);
SNiP 12-03-2001. Occupational health and safety in construction.
Part 1. General requirements (Resolution of Gosstandart
of the Russian Federation No. 80 of 23 July 2001);
SNiP 12-04-2002. Occupational health and safety in construction.
Part 2 Construction industry (Resolution of the State Construction
Committee of Russia No. 123 of 17 September 2002);
SNiP 12-01-2004. Construction organisation (Order of the Minis-
try of Regional Development No. 781 as of 27 December 2010);
Safety regulations for facilities using liquefied hydrocarbon gases
(Order of the Rostechnadzor No. 558 as of 21 November 2013);
Regulations on occupational health and safety for the operation
of electric unit installation (Order of the Ministry of Labour of the
Russian Federation No. 328n as of 24 July 2013 in edition of Or-
ders of the Ministry of Labour of the Russian Federation No. 74n
as of 19 February 2016, No. 704n as of 15 November 2018);
Instruction on application and testing of protection means used i
n electric unit installations (Order of the Ministry of Energy of Rus-
sia No.261 dated 30 June 2003 (except for requirements to elec-
tric protection equipment));
On introduction of the standard of the organization in the order of
application of electric protection equipment (STO 34.01-30.1-001-
2016) (Regulation of PJSC FGC UES No. 404r as of 30 Septem-
ber 2016);
STO 34.01-24-001-2015. Unified content and style of information
support for the prevention of electrical injures in the electric grid com-
plex (Regulation of PJSC Rosseti No. 422r as of 4 October 2016);
GOST 12.1.002-84 Power frequency electric fields. Permissible
levels of field strength and requirements for control at work-places
(Decision of the USSR State Standards Committee No.4103
as of 5 December 1984);
GOST 12.1.038-82. Electric safety. Maximum permissible levels
of pick-up voltages and currents (Decision of the USSR State
Standards Committee No. 2987 as of 30 July 1982);
Regulations on organising high-risk works at PJSC FGC UES’
acilities (Order of PJSC FGC UES No. 552r as of 12 November
2018);
On the procedure of issuing keys to electric unit installations
(Resolution of JSC FGC UES No. 515r as of 3 November
2017 in edition of Order of PJSC FGC UES No. 120r as
of 13 March 2019);
The Regulation on the Procedure for Issuing Permits for the Prep-
aration of Workplaces and Admission to Work on Power Lines
and Equipment of PJSC FGC UES’ Substations was approved
by Order of PJSC FGC UES No. 485r of 10 October 2018.
Instruction on production of switching operations at substations
35-750 kV of PJSC FGC UES (Resolution of PJSC FGC UES
No. 393r as of 1 September as amended by Resolutions of PJSC
FGC UES No. 116r as of 15 March 2018, No. 192r as of 18 April
2018);
Regulations on occupational health and safety when working with
tools and devices (Order of the Ministry of Labour of the Russian
Federation No. 826n as of 20 December 2018);
On measures to reduce risks of occupational injuries
(Order of PJSC FGC UES No. 181 as of 18 May 2017);
On approval of Requirements for provision of personnel
with sanitary facilities and amenities at JSC FGC UES’ facilities
(Order of JSC FGC UES No. 56 as of 6 February 2012);
Regulations on the management of equipment located in mobile
buildings (Resolution of PJSC FGC UES No. 236r as of 31 May
2019);
Comprehensive programme to reduce the risks of injuries
to personnel of PJSC FGC UES for 2019–2021 and
a comprehensive programme to reduce the risks of injuries
to third parties at the facilities of PJSC FGC UES for 2019–2021,
approved by Order of PJSC FGC UES No. 38 as of 1 February
2019.
Occupational health and safety norms
and standards in the Company
The Company’s Occupational Health and Safety Management System is developed in accordance with the requirements of Federal Law
No. 197-FZ as of 30 December 2001 (Labour Code of the Russian Federation) and Model regulations on the occupational health and safe-
ty management system approved by Order of the Ministry of Labour of the Russian Federation No. 438n as of 19 August 2016.
Norms and standards to which the Company complies
when fulfilling fire safety requirements
In order to ensure fire safety, operations at the Company’s
facilities are conducted in accordance with the requirements
of the federal legislation.
Federal Law No.69-FZ of 21 December 1994 «On fire safety»;
Federal Law «Technical Regulations on Fire Safety
Requirements» No. 123-FZ dated 22 July 2008;
The Fire Safety Rules in the Russian Federation, approved
by Decree of the Russian Government No. 390 of 25 April 2012
and other regulatory legal acts of the Russian Federation;
as well as the following standards put into effect by Order
of PJSC Rosseti No. 6r as of 15 January 2015:
Company Standard 34.01-27.1-001-2014 (IFSR 27-14) «The
Fire Safety Rules in the electric grid complex of JSC Rosseti»;
Company Standard 4.01-27.3-001-2014 (AFSR 28-14)
«Fire protection installations. General technical requirements»;
Company Standard 4.01-27.3-002-2014 (AFSR 29-14)
«Fire protection designing of objects of the electric grid
complex of JSC Rosseti. General technical requirements».
Workplace Hazard Response
Proposals are made based on hazard identification and risk as-
sessment:
on forming a list of equipment requiring replacement or repair
under the operations safety conditions;
on elimination (prevention) of hazards and reduction of risks;
on improvement of staff professional training, on psychophysi-
ological training of personnel for work at potentially dangerous
workplaces;
measures to mitigate the risk of injuries are included in the ac-
tion plans intended to improve work environment and occupa-
tional health and safety conditions, and to reduce occupation-
al risk levels in the Company;
monitoring the efficiency of taken decisions and their adjust-
ment, monitoring the implementation of the risk management
plan and future planning of improvement of the labour protec-
tion activities in the Company.
The investigation of occupational accidents at the Company
is carried out in strict accordance with the requirements of Fed-
eral Law No. 197-FZ as of 30 December 2001 (the Labour Code
of the Russian Federation) and Decree of the Ministry of Labour
of Russia No. 73 of 24 October 2002 «On Approval of Forms
of Documents Required for Investigation and Recording of Occu-
pational Accidents, and Regulations on Features of Occupational
Accident Investigation in Certain Industries and Organisations».
List of the Company’s occupational health
and safety projects implemented in 2019
In 2019, the Company continued its efforts to reduce injuries based
on the results of employee injury risk assessment at the facilities,
as well as in accordance with a set of tasks defined by the deci-
sions of the Occupational Health and Safety Committees and the
Company’s executive documentation, namely:
meetings of the Committees on labour protection were held at
the level of the Executive Office and the Company’s branches;
Special commissions checked the norms and rules are known
by Company staff, taking into account the following require-
ments: the employees who received a «satisfactory» assess-
ment based on the results of the knowledge check reduced the
frequency of knowledge check; all directors and chief engineers
of EMPS and employees of business subdivisions of occupa-
tional safety and reliability (BSOSR) of MPS and EMPS passed
the knowledge test in the central examination commission of
PJSC FGC UES;
before starting the 2019 repair campaign, actions were imple-
mented to ensure the readiness of objects for its implementa-
tion, including staff, protection equipment, tools, rigging, and
transport, etc.;
work was carried out to identify hazards and estimate risks (hazard
identification at workplaces and injury risk estimation, identification
and creation of lists of injury equipment and applied mechanisms
requiring the replacement or repair under the conditions of safe
works performance, development of actions to eliminate (reduce)
hazards, including them in action plans for improving labour condi-
tions and protection, estimation of the adequacy of actions taken
to reduce the level of injury and effectiveness of the taken actions);
an action program was developed and implemented to reduce
the injury risks, taking into account the effectiveness analysis
of the safety management system and the results of control
and analytical actions;
the training focused on the development of practical skills
and methods for safe working practices, and the professional
development programmes were adjusted to increase
the number of hours for labour protection issues;
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APPENDIX 1
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APPENDIX 1
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training films on work safety were shown and discussed
with the staff during the training;
the staff was informed on time about the circumstances and
reasons of accidents occurred in the electric grid complex;
the manufacturers of working wear were involved to bring
to the staff the importance of the full use of working wear,
its component parts and technical requirements;
drivers who transfer passengers were taught the skills of safe
(emergency) driving, including driving in difficult road and climatic
conditions on the basis of specialised educational organisations;
labour protection days and sudden inspections of working
teams were held every month;
target inspections of the organisation of labour protection
in EMPS and mutual inspections between EMPS for the expe-
rience exchange were carried out;
months of road traffic safety were held;
the implementation of the Behavioral Safety Audit project was
continued to change the staff’s approach to the conscious ob-
servance of safety standards;
work was carried out to prevent violations of labour protection
requirements, including for poor-quality performance of func-
tional responsibilities in labour protection on the basis of the
Regulation on the System of Response to Violations of La-
bour Protection Requirements by Company staff;
the implementation of the project for the use of mobile video
recorders to record and analyse with the staff the most dan-
gerous behavior of employees performing woks in existing
electrical installations;
target inspections of the enterprises in which accidents took place
(on results of the investigation of these accidents, the analysis
of detected violations and the inspection of the organisation of
safe working practices were conducted, corrective and preventive
actions were developed, which were extended to all Company’s
branches, corrective measures were taken for those employees
who committed violations or poorly performed their labour duties);
the work of stationary and movable labour protection cabinets
was continued to promote safe labour conditions and to train
staff in safe working methods, taking into account the modern
requirements;
the work on the effective functioning of the psychological dis-
charge rooms for the operating staff of substations was continued;
a contest for the best work organisation on labour protection
in EMPS and the best work organisation on labour protection
in MPS was held. In 2019, the Vologodsk enterprise of MPS
Centre and MPS of Siberia were recognised as the best Com-
pany’s branches for the work organisation on labour protec-
tion, respectively.
PJSC FGC UES pays great attention to working conditions for its em-
ployees. In order to provide employees with the necessary sanitary
utilities and to create favourable and healthy working conditions
to reduce the risk of health deterioration, work is underway to imple-
ment the Comprehensive Programme to Improve Working Conditions
at MPS Branches. In addition, measures to further improve sanitary
utilities were included in action plans to improve conditions and occu-
pational safety and minimise occupational risks.
Main obligations of the Company
in the area of occupational safety
Ensuring priority of preservation of life and health of workers
in the process of their work over results of production activity;
demonstrating the commitment of top management and manag-
ers at all levels of management to occupational safety issues;
ensuring compliance of production activities with the state regu-
latory requirements of labour protection, requirements
of international agreements, industry-wide and local statutory
regulations on labour protection;
ensuring safe working conditions of employees at power grid
facilities, prevention of injuries and deterioration of health
of employees;
prevention of injuries of any third parties on the territory
of the power grid complex of PJSC FGC UES;
ensuring the prevention of any emergencies, accidents
and incidents;
identification of hazards at workplaces, assessment and effec-
tive management of professional risks with due regard for the
distinctive features and specificity of production activities;
ensuring the timely modernisation of power grid facilities, re-
placement of equipment, improvement of production and tech-
nological processes, providing workers with high-quality tools
and devices, efficient means of individual and collective pro-
tection;
stimulating the introduction of innovative approaches
and technologies ensuring the safety of workers in the course
of production activities;
continued improvement and enhancement of efficiency of the
occupational safety management system with due regard for
the modern methods, standards and best practices in the area
of occupational safety;
developing a culture of safe behaviour among workers and
ensuring compliance with the labour protection requirements
in the process of labour activity;
establishing and maintaining the required level of competence
of managers, specialists and other employees in order for them
to carry out their duties related to ensuring and complying with
the occupational safety and labour protection requirements;
creating conditions for maximising support of competent
and qualified employees for a long-term professional job;
increasing the motivation of employees to comply with the re-
quirements of occupational safety in the process of labour ac-
tivities and to improve their level of qualification;
taking actions to encourage the contractors’ employees
to comply with the labour protection requirements while carry-
ing out works at the facilities of PJSC FGC UES;
carrying out consultations and encouraging employees and
their representatives to actively participate in the management
of occupational safety and ensuring safe working conditions;
mainstreaming the occupational safety in order to prevent inju-
ries and occupational diseases of workers.
At present time the Company’s occupational health and safety ob-
jectives set in the Policy are actual.
Main industrial hazards and measures taken
to reduce their negative impact on employees
The Federal Grid’s occupational health and safety policy is one
of the key elements of the Company’s occupational safety man-
agement system.
Analysis of efficiency of the occupational health and safety manage-
ment system comprises the assessment of the Company’s occupa-
tional health and safety performance and their compliance with the
Company’s occupational health and safety policy, objectives and re-
quirements of the occupational health and safety regulations.
Proceeding from the results of analysis, the activities for continu-
ous improvement of the occupational health and safety manage-
ment system are conducted, and the necessity to improve the
Company’s occupational health and safety policy is assessed.
In all aspects of its businesses, the Company is committed to prioritis-
ing the life and health of its employees over operating performance.
The main harmful production factors which may have a negative
impact on workers’ health status at workplaces include:
physical factors (microclimate, temperature and relative
humidity, noise, electromagnetic fields, etc.);
chemical factors (chemicals and mixtures measured
in the workplace air);
labour process severity (physical dynamic load, working
posture, weight of lifted loads, etc.);
labour process intensity (duration of concentrated observa-
tion, impact on vocal apparatus, etc.).
In order to reduce (prevent) exposure to hazardous production
factors, hazards are identified and injury risks are assessed;
annual in-process monitoring of sanitary regulations is per-
formed; and working conditions are analysed. Based on the re-
sults of this work, action plans are to be developed and approved
which are intended to improve work environment and occupa-
tional health and safety conditions, and to reduce occupational
risks in the Company, including:
arrangements for accident prevention;
carrying out sanitary and hygienic measures to prevent industrial
diseases;
measures on overall improvement of labour conditions;
providing workers with personal protective equipment.
The Company performs systematic actions to identify injury-
causing equipment, places and mechanisms used, which
is a part of the systematic hazard identification and risk assess-
ment activities carried out by the Company, including:
workplace hazards identification and employee injury risks
estimation;
identification and creation of lists of injury-causing equipment
and mechanisms used requiring replacement or repair under
the safe operation conditions;
development of (short-term and forward-looking) measures
to eliminate (reduce) hazards, with their subsequent inclusion
in the action plans intended to improve work environment
and occupational health and safety conditions, and to reduce
occupational risk levels;
assessment of sufficiency and efficiency of the measures taken
to reduce the injury rate.
In order to reduce the impact of electromagnetic field at work-
places (SS and overhead power transmission lines of 330 kV
and above), the following actions are carried out:
organisational arrangements (fencing of electromagnetic field
exposure areas, location of workplaces and service personnel
flow routes at sufficient distances from electromagnetic sources,
ensuring compliance with the maximum allowable levels);
engineering and technical measures (installation of biological EMI
protection along the traffic routes, introduction of new technolo-
gies and application of personal EMI protection equipment).
Measures taken to prevent accidents at work
Labour protection actions are held before repairs begin, injury
risks are assessed and remedial actions are developed in order
to improve occupational safety.
Educational films showing safe working methods have been cre-
ated; the employees are timely provided with working clothes,
special footwear, electric protection equipment; video recordings
of the personnel’s actions during switching operations are being
watched; target briefings with subsequent analysis and analysis
of the revealed violations are being conducted; a system of re-
sponse to violations of occupational health and safety require-
ments has been created and is functioning. In addition, the fol-
lowing activities are carried out:
Occupational health and safety days and inspections
as part of Internal Technical Control System;
inspections of workplaces, regular monitoring and analysis
of the safe execution of work by repair teams, including
sudden;
behavioural safety audit as one of the stages of a sudden
inspection of the working teams (transition from the principle
of response to the principle of prevention) in order to develop
the skills of employees to prevent dangerous situations;
inspections by the management of MPS (EMPS) branches
of production facilities and working teams;
occupational health and safety inspections, Master’s days,
professional competitions;
meetings of the Occupational Health and Safety Committees with
the participation of authorised occupational safety personnel;
meetings of managers of MPS (EMPS) branches with labour
collectives;
preliminary and regular medical examinations;
continuous advanced training for employees;
monthly inspection of permits by Chief Engineer of MPS
(EMPS) branches;
taking measures to hold employees who exercise control
in the workplace accountable for poor quality control.
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APPENDIX 1
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APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Interaction with business partners on injury prevention
and occupational health and safety issues
In case any violations of the occupational health and safety
requirements are detected in the course of unannounced in-
spections of the contractors’ teams working at the Company’s
electric grid complex facilities, a notice shall be sent to the
contractor’s senior managers with a demand to comply with
the Occupational Health and Safety requirements, including
any hazardous facilities, indicating any identified violations
and the need to take appropriate corrective actions towards
the employees having committed such violations. The occupa-
tional safety liabilities of the contractors’ employees are stated
in their job contracts.
In 2019, there were no accidents with employees who are not
in the Company’s staff whose workflows/workplaces are under
the control of the Company.
No violations of occupational health and safety requirements
were registered at the production site, which had a high probabil-
ity of causing serious harm to the health of employees who are
not on the Company’s staff, whose work processes/ workplaces
are under the Company’s control and whose activities are cov-
ered by the Company’s occupational health and safety system.
GRI 403-7 Measures taken to prevent or mitigate significant
adverse effects on the health and safety of employees of partner
companies associated with the operations, products or services
of the Company, as well as related threats and risks: all neces-
sary types of training are carried out in a timely manner, person-
nel are admitted to the workplace (if there are violations of health
and safety requirements, threats to the health and safety of the
team (workers) are not allowed to work until they are eliminated).
Environmental Protection and Energy Saving
Environmental Policy
Main directions of the Environmental Policy implementation stip-
ulated in the Programme on implementation of the Federal Grid’s
Environmental Policy for 2016–2019 are as follows:10
compliance with the requirements and norms established
by the environmental legislation of the Russian Federation
and international legal acts in the field of environmental pro-
tection;
compliance with the standards of permissible environmental
impact, established by the environmental legislation of the
Russian Federation;
priority of taking precautionary measures on measures
to eliminate environmental damage;
use of the best available technologies in the production pro-
cess, ensuring compliance with environmental requirements
and minimising the negative impact on the environment;
limiting the management of production and construction
activities in areas of special conservation importance;
ensuring the conservation of biological diversity;
phased decommissioning of equipment containing polychlori-
nated biphenyls and its replacement by environmentally
safe equipment;
management of generated waste products and their environ-
mentally safe handling;
improvement of environmental management system.
GRI 307-1
Results of external environmental supervision
In 2019, the territorial bodies of Rosprirodnadzor and Rospotrebnadzor carried out 11 inspections of compliance with the require-
ments of the environmental legislation of the Russian Federation in the branches of PJSC FGC UES — MPS/EMPS on the results
of which five prescriptions were issued and five fines in the amount of RUB 417.5 thousand were imposed. In 2019, one correction
was implemented; the deadline for the four corrections was set for 2020.
Payments for negative impact on the environmentу
Reduction of payments for negative impact on the environment
is associated with the abolition of charges for emissions of pol-
lutants from mobile sources of emissions, as well as for dis-
charging pollutants into the relief and the absence of payment
for the disposal of municipal solid waste by regional operators.
The main reason for the presence of excess fees is waste
disposal to landfills that are not included in the state register
of waste disposal facilities due to their absence in the areas
of the substation location.
Dynamics of changes in paid volumes for negative environmental in 2015–2019, RUB mln
2,6
3,9
1,4
3,1
1,7
2,7
- above standard
- standard
1,2
1,5
0,8
1,3
2015
2016
2017
2018
2019
GRI 304-2
Results of biodiversity monitoring in National
Park Smolny in the Republic of Mordovia
In 2009–2019, environmental situation in 500kV OTL areas was
controlled in National Park Smolny located within the territory of
Nizhegorodskoe EMPS. The objective of monitoring is to assess
species diversity, number and distribution of birds within the con-
trolled areas located along electricity transmission lines 500kV
Ulyanovskaya-Severnaya and Ulyanovskaya-Yuzhnaya.
The results of observation showed that climatic and phenological
fluctuations of seasons (years) are the most important factors
impacting the dynamics of surface ecosystems. First of all, these
are fluctuations of surface soil humidity and dynamics of grass
and bush formations development; cutting and cleaning of young
bushes and underwood in some areas of OTL 500kV routes;
fires and resulting long-term plant transformations.
In October 2019, OHL routes 500 kV were cleared mechanically,
using heavy equipment. As a result of the works performed, the
environmental conditions of plants and animals within the areas
where continuous reclamation of the soil layer has been carried
out have significantly changed. Changes in the composition
of the animal population due to the extinction of herbaceous,
bush and tree growth communities on the routes of OHL 500
can be visually assessed taking into account the information ac-
cumulated earlier, as part of environmental monitoring in subse-
quent years.
Quantitative indicators of environmental safety,
2015–2019
Gross emission of pollutants to air
GRI 305-7
Total, including:
solid
gaseous and liquid
including:
sulphur dioxide
carbonic oxide
nitrogen oxide (re-calculated to NO2)
carbon hydride (without volatile organic compounds)
volatile organic compounds
other
Water consumption
GRI 303-1
Total, including:
from surface water sources
from underground sources
UOM
2015
2016
2017
2018
2019
t
t
t
t
t
t
t
t
t
t
221.1
226.7
182.1
171.1
161.1
8.6
9.3
8.3
7.7
7.8
212.5
217.3
173.8
163.4
153.2
1.6
51.1
7.7
46.3
94.4
11.4
1.7
1.9
50.5
49.7
7.9
41.1
103.4
12.7
9.4
23.5
78.1
11.2
2.1
48.8
10.8
16.8
73.1
11.8
2.2
47.6
10.9
16.9
62.5
13.2
ths. m3 1039.9
901.1
898.3
799.5
744.4
ths. m3
74.3
74.7
107.8
73.3
86.6
ths. m3
529.2
516.7
520.1
481.6
429.8
10 In 2019, the Programme for the implementation of environmental policy of PJSC FGC UES for 2020–2024 was developed and approved.
from centralised water supply systems
ths. m3
436.4
309.7
263.2
237.9
222.3
from other sources
ths. m3
17.7
13.2
7.2
6.7
5.7
306
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
307
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
UOM
2015
2016
2017
2018
2019
GRI 302-1
Amount of energy resources used in FGC in 2019
Water discharge GRI 306-1
Total, including:
into centralised systems
into the terrain
into surface water bodies, including:
without treatment
insufficient treatment
standard treatment
ths. m3
991.9
490.9
432.8
373.8
289.8
289.8
ths. m3
497.1
415.2
379.0
319.7
241.5
241.5
ths. m3
385.4
–
–
–
-
-
ths. m3
109.4
75.8
53.8
54.2
48.4
48.4
ths. m3
0
0
0
0
0
0
ths. m3
89.22
46.20
32.30
28.12
14.87
14.87
ths. m3
20.17
29.57
21.52
26.06
33.50
33.50
Volumes of wastes generation and approaches to their application GRI 306-2
Total waste generated, including:
Hazard class I
Hazard class II
Hazard class III
Hazard class IV
Hazard class V
Transferred to specialised organisations for decontamination, secondary
treatment and recycling
Transferred to specialised organisations for burial at disposal sites
ths. t
ths. t
ths. t
ths. t
ths. t
ths. t
ths. t
ths. t
13.6
13.1
10.9
0.1
0
0.8
6.2
6.5
6.5
7.2
0
0
0.4
5.3
7.4
6.3
0.3
0
0.3
4.7
5.7
4.3
6.8
6.7
9.6
0.4
0
0.3
4.3
4.6
3.3
6.3
9.4
9.4
0.0
0.0
0.0
0.0
0.3
0.3
4.7
4.7
4.4
4.4
2.3
2.3
7.1
7.1
Energy efficiency and internal power consumption
2019 energy saving results11:
Equipping PJSC FGC UES’ buildings, constructions, struc-
tures with metering devices for water, natural gas, thermal
and electric power. Progress: 100%;
Reduction in specific electric power consumption by substa-
tions per 1 conventional equipment item was 4.38%, whereas
the target value was 0.5%.
Reduction in specific electric power consumption by buildings,
constructions, structures per 1 square meter was 2.19%,
whereas the target value was 3.4%.
Reduction in specific thermal power consumption by build-
ings, constructions, structures owned by PJSC FGC UES
per 1 m3 of the volume of the above-mentioned premises
was 10.1%, whereas the target value was 5.8%.
Reduction in specific consumption of petrol used by PJSC
FGC UES to provide electric power transmission services
via UNEG, per 1 km of vehicle mileage was 1.71%, whereas
the target value was 0.4%.
Reduction in specific consumption of diesel fuel used to pro-
vide electric power transmission via UNEG, per 1 km of vehi-
cle mileage was 2.18%, whereas the target value was 0.5%.
LED lighting devices installation as a percentage of the total
number of lighting devices (the indicator was introduced in
2017) was 58%, whereas the target value was 50%.
In order to reduce the process costs (losses) of electric power
in UNEG, the following activities are carried out in PJSC
FGC UES:
optimisation of circuit and mode parameters in the process
of operation and control of the electric grids;
reduction of electric power consumption for own needs of the
substations;
construction, reconstruction and development of the electric
grids, and commissioning of energy saving equipment
(loss reduction has a concurrent effect).
Measures to reduce consumption of electric and thermal power,
resources and POL:
improving heat insulation of buildings and structures;
replacement of window structures with energy efficient ones
(dome and ribbon windows);
replacement of old lamps with new energy-saving ones
(mainly LED);
installation of a lighting control system (installation of motion
and presence sensors);
replacing the old doors, entrance units and gates with new
energy efficient ones;
modernisation of heating, ventilation and air-conditioning
systems;
installation of reflective shields behind the heating appliances;
control of operation modes of heating units;
optimising operation of heating, air-conditioning, lighting of the
buildings, and disconnecting of office equipment, electric ap-
pliances with the appointment of responsible persons;
technical control of operation of vehicles (alignment of wheels,
tyre pressure control, replacement of oil, filters, spark plugs,
injection of fuel nozzles, etc.);
adjustment of fuel consumption rates;
purchasing of the injection engine test benches;
optimising traffic routes, educating personnel, and, when pos-
sible, priority loading with minimum specific fuel consumption.
11 Planned target values are defined by the FAS of Russia.
308
annual report 2019
PJSC FGC UES
The amount of energy resources used in FGC in 2019 was 600,833.1 GJ.
In addition, power consumption for own needs of the substations amounted to 916,109.79 thousand kWh (3,301,568.1 GJ).
No.
Types of resources
UOM
Target 2019
Actual 2019
Deviation, %
1.
2.
3.
4.
5.
6.
Nuclear energy[1]
Thermal energy in administrative
buildings
In physical terms
In monetary terms
In TFOE
–
–
–
–
5,572.50
5,325.82
In physical terms
37.5 thousand Gcal 35.84 thousand Gcal
In monetary terms[2]
57,061.88
RUB thousand,
excl. VAT
54,657.81
RUB thousand,
excl. VAT
Electric energy in administrative
buildings powered from third-party
sources
In TFOE
3,692.31
3,786.36
In physical terms
30,018.77 ths. kWh
30,783.38 ths. kWh
In monetary terms[2]
128,180.15
RUB thousand,
excl. VAT
130,982.23
RUB thousand, excl.
VAT
Electromagnetic energy[1]
In physical terms
Oil[1]
In monetary terms
In physical terms
In monetary terms
–
–
–
–
–
–
–
–
Gasoline for cars
In TFOE
6,927.56
5,285.89
In physical terms
6,504.75 thousand l
4,963.28 thousand l
In monetary terms[2]
237,813.66
RUB thousand,
excl. VAT
187,385.48
RUB thousand, excl.
VAT
7.
Diesel fuel
In TFOE
7,030.35
6,108.18
In physical terms
6,060.65 ths. l
5,265.67 ths. l
8.
9.
Heating oil[1]
Natural gas[1]
10.
Coal[1]
11. Oil shale[1]
12.
Peat[1]
13. Other[1]
In monetary terms2]
In physical terms
In monetary terms
In physical terms
In monetary terms
In physical terms
In monetary terms
In physical terms
In monetary terms
In physical terms
In monetary terms
In physical terms
In monetary terms
233,456.24
RUB thousand,
excl. VAT
208,728.57
RUB thousand,
excl. VAT
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–4.43
–4.43
–4.21
2.55
2.55
2.19
–
–
–
–
–23.7
–21.2
–13.1
–10.6
–
–
–
–
–
–
–
–
–
–
–
–
The base year is the previous year from the reporting year in accordance with Order of the Federal Tariff Service of Russia No. 508-e
of 26 March 2014 On Establishing Requirements for the Programme for Energy Saving and Improving the Energy Efficiency of PJSC
FGC UES for 2015–2017 (respectively, the base year for 2019 is 2018).
[1] The resource is not used in FGC and in accordance with order of the FAS of Russia No. 508-e of 26 March 2014 is not a resource in respect of which target
indicators are set.
[2] The value in monetary terms is indicated from the calculation of the average cost of an energy resource per year.
PJSC FGC UES
2019 annual report
309
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Contribution to the development of the regions
of the Company’s presence
Payments to budget and extrabudgetary funds
Name of tax (contribution to the extrabudgetary fund)
2019
2019
2019
Amount of transferred
taxes, RUB ths.
Tax, RUB ths.
Penalties and
fines, RUB ths.
Federal taxes and levies
VAT
PIT
Profit tax
Profit tax on foreign income
Water tax
State duty
Payments for emissions of harmful substances into the
environment
Regional taxes
Profit tax
Property tax
Transport tax
Local taxes and levies
Land tax
Extrabudgetary funds
Pension Fund of Russia
Social Insurance Fund
Federal Compulsory Medical Insurance Fund
Social Accident Insurance Fund
18,554,533
18,546,613
2,916,411
8,424,835
–
333
67,107
2,275
2,915,975
8,405,431
–
332
67,107
2,275
7,920
436
19,404
–
1
13,388,817
13,313,860
74,957
35,519
35,514
56,943
56,937
4,498,361
312,061
1,157,426
62,464
4,498,342
312,058
1,157,425
62,462
5
6
19
3
1
2
Total
49,477,085
49,374,331
102,754
Stakeholder Engagement
Participation in congresses and exhibitions
February
The Company delegation took part in the Russian Investment
Forum. Chairman of the Management Board of PJSC FGC UES
A. Murov participated in the meeting of Chairman of the Govern-
ment of the Russian Federation D. Medvedev with representa-
tives of business circles. At the forum, a Cooperation Agreement
was signed with JSC «Russian Copper Company», aimed
at securing agreements and coordination of the parties’ interac-
tion on the development of power grid infrastructure, ensuring
reliable power supply to the facilities of JSC «Russian Copper
Company».
May
The Company’s delegation took part in the St. Petersburg Inter-
national Economic Forum. Chairman of the Management Board
of PJSC FGC UES A. Murov attended the plenary session
and spoke at the session «Digital infrastructure: a challenge
or an opportunity?» At the forum, an Agreement on Cooperation
with PJSC SIBUR Holding was signed. The purpose of the
Agreement is to coordinate activities aimed at developing the
power grid infrastructure, ensuring implementation of the power
grid facilities construction project aimed at ensuring reliable
power supply to PJSC SIBUR Holding facilities and developing
the power grid complex in the regions where PJSC SIBUR
Holding facilities operate.
The delegation of the Company participated in the Second Rus-
sian-Chinese Energy Business Forum held under the auspices
of the Presidential Commission of the Russian Federation for
Strategic Development of the Fuel and Energy Sector and Envi-
ronmental Security. Within the «Electric Power Engineering»
section, the Chairman of the Board of PJSC FGC UES A. Murov
made a report «Prospects of scientific and technical exchange,
mutual recognition and joint testing of equipment».
September
The Company’s delegation took part in the business programme
events of the Eastern Economic Forum, including the plenary
session.
September – October
Rosseti FGC UES participated in the All-Russian energy saving
festival Brighter Together (#ВместеЯрче). The Company’s
branches took part in the activities of regional steering commit-
tees of the Brighter Together festival, events were held
in the constituent entities of Russia and information support
of the festival was provided.
October
The Company delegation took part in the Russian Energy Week,
an international forum on energy efficiency and energy develop-
ment. Chairman of the Management Board of PJSC FGC UES
A. Murov attended the plenary session with the participation
of the President of the Russian Federation V. Putin, the All-Rus-
sian conference on winterisation arrangements for the period
of 2019/2020. With the support of Rosseti FGC UES and RNC
CIGRE, a panel session «Trajectory of Energy Systems Devel-
opment: Global View» was organised, where A. Murov acted
as a moderator.
November
The Company delegation took part in the main energy exhibition —
European Utility Week, held in Paris (France). During the visit,
the Company’s representatives got acquainted with advanced
innovative solutions in the field of generation, transmission
and distribution of electricity.
Scientific and technical cooperation with the Russian
National Committee of CIGRE
Since 2015, Chairman of the Board of PJSC FGC UES A. Murov
has been the Head of the Russian National Committee of CIGRE
(RNC CIGRE).
Currently, RNC CIGRE is the largest in Europe in terms of the num-
ber of participants. In 2018, the Russian delegation was the 6th larg-
est (after France, Germany, Japan, USA and UK) at the 47th CIGRE
Session in Paris and included more than 150 experts.
In 2019, a report conference was organised to widely inform the
Russian professional energy community about the outcomes of the
47th CIGRE Session. The event was held in the Scientific and Tech-
nical Centre of Rosseti FGC UES (JSC NTC FGC UES), attended
by the representatives of the leading scientific and technical part-
ners of Rosseti FGC UES and RNC CIGRE: JSC SO UES, National
Research Institute MPEI, PJSC Inter RAO, JSC RTSoft, as well
as PJSC Rosseti, PJSC Rosneft Oil Company, PJSC Transneft,
JSC RZD, manufacturers of electrical equipment, and industry spe-
cialists. The guest of the conference was Sun Yanhong, Head
of the Shenyang Transformer Research Institute (China).
One of the main topics of the event was digitalisation — in particu-
lar, practical cases of implementing end-to-end digital technolo-
gies in the energy sector, the development of production in Russia
of globally competitive electrical products, the prospects of using
solutions in the field of machine learning and artificial intelligence,
energy storage systems for demand management, and the use
of the blockchain technology as the basis for the future system
of decentralised data exchange between consumers.
The conference also included a poster session of Russian reports
at the 47th Session of CIGRE, including reports from the RNC CIGRE
Youth Section, and an exhibition of participants of the Technical
Exhibition of the 47th Session of CIGRE.
The event was attended by more than 250 experts (the share
of RNC CIGRE members out of the total number of participants
was 41%), more than 300 unique users watched the online
broadcast.
During the 47th Session, the activities of the RNC CIGRE Youth
Section were recognised as the largest in the world. Each year
about 5 thousand students and young specialists take part
in the activities under the programme.
In 2019, the main tasks of the RNC CIGRE Youth Section were
to coordinate all youth activities of the 48th CIGRE Session,
and to cooperate with the IEEE in joint conferences.
In addition, members of the youth community participated
in the CIGRE SC D2 International Colloquium in Chengdu, PRC.
Furthermore, interaction with national research committees
(subcommittees) of RNC CIGRE, universities and young scientists
expanded, and new partner universities joined the programme.
On the basis of the joint order of PJSC FGC UES and RNC
СIGRE No. 345 of 30 September 2019, and in accordance
with the section on international activities of the Innovative Devel-
opment Programme of PJSC FGC UES for 2016–2020 with
a prospect to 2025 (approved by the Board of Directors of PJSC
FGC UES, Minutes No. 37 of 7 June 2017), several events were
held to develop international scientific and engineering exchange
in the industry, as well as to implement Order of the Ministry
of Energy of Russia (Minutes No. 1 of 25 March 2019):
meeting of the representatives of the CIGRE management with
the most active participants of the RNC CIGRE Youth Section.
The meeting was attended by the most active participants
of the RNC CIGRE Youth Section, including students of the
National Research Institute MPEI, Ural Federal University
named after the first President of Russia Boris Yeltsin, Nizhny
Novgorod State Technical University named after R.E. Alek-
seev, Novosibirsk State Technical University, North-Caucasus
Federal University and Samara State Technical University.
The CIGRE management received questions from the partici-
pants of the meeting, as well as from the RNC website,
the social networks of the Youth Section and the information
partners. The key topics were digitalisation, cybersecurity, sus-
tainable development of electric power industry, including envi-
ronmental issues. In addition, the ideas and proposals of the
meeting participants to promote CIGRE among young people
were discussed;
the plenary session «Power Systems Development Trajectory:
A Global View» within the Russian Energy Week International
Forum.
The main topics of the discussion were digitalisation, substitution
of traditional generation with renewable energy sources (RES),
and complication of market structure. The session participants
noted that the trends that have emerged in the industry are often
in clear contradiction with each other. In particular, the role of dis-
tributed generation and RES is growing, but the constant change
in the load structure makes the operation of power grids at all
voltage levels difficult and makes it difficult to plan their devel-
310
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
311
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
opment. Replication of digital solutions in the industry requires
increased attention to the problem of cybersecurity.
Deputy Minister of Energy of Russia Yu. Manevich, General Di-
rector of PJSC Rosseti P. Livinsky, Head of NP Market Council
M. Bystrov, the management of JSC SO UES, PJSC Inter
RAO, E&Y and CIGRE management — Head of the Technical
Committee M. Shechtman (Brazil), General Secretary
F. Adam, Head of the United Kingdom National Committee A.
Middleton, and others spoke at the session. The discussion
was moderated by A. Murov, Chairman of the Management
Board of PJSC FGC UES;
A. Middleton, Head of the CIGRE UK National Committee
attended the Youth Day #ВместеЯрче (Brighter Together)
of the Russian Energy Week International Forum.
The final of the reports contest on the topics of the 48th CIGRE
Session was held. The authors of the best works will be con-
sidered as candidates for participation in the CIGRE session
in 2020 in Paris. The contest is held according to the plan
of joint work of FGC and the System Operator on the basis
of the RNC CIGRE Youth Section activities;
meetings and side events in Saint Petersburg with the partici-
pation of representatives from the CIGRE supreme governing
bodies:
– meetings of the CIGRE Steering Committee and Technical
Committee.
Strategic issues of the organisation management and global
industry development trends were discussed. Preparations
for the 48th CIGRE Session to be held in Paris in 2020 were
also a key topic. The event was attended by the heads
of the CIGRE supreme governing bodies, including the Pres-
ident of the Association R. Stephen;
– Russia Day under a joint meeting of the Steering Commit-
tee and the Technical Committee of CIGRE.
Within the framework of the thematic block, representatives
of the Scientific and Technical Centre of Rosseti FGC UES
(JSC NTC FGC UES) made a report «Review of the features
of the power system of Russia, trends, challenges, new tech-
nologies», JSC SO UES made a report «Features of the
power system of Russia», NP Market Council made a report
«On the development of market mechanisms in Russia»,
as well as the leader of RNC CIGRE on KPI for 2017–2018,
representative of the RNC CIGRE Youth Section, made
a report «On best practices and work plans for the 48th
CIGRE Session»;
technical visits.
Participants of the joint meeting of the Steering Committee
and the Technical Committee made two visits to the Rosseti
FGC UES 330 kV Vasileostrovskaya SS, which is part
of the Saint Petersburg Power Ring.
The facility is equipped with the latest power and switchgear
equipment, including 330 and 110 kV gas insulated switchgear.
In 2017, Vasileostrovskaya became one of the first UNEG sub-
stations that were switched to remote control.
Cooperation with the Russian Engineering Union
Cooperation with the Russian Engineering Union is carried out
within the framework of the Cooperation Agreement signed
on 24 May 2018 on the platform of the St. Petersburg Interna-
tional Economic Forum.
In 2019, at the initiative of the Chairman of the Management
Board of PJSC FGC UES A. Murov and the Russian Engineering
Union, the Commission on the Development and Implementation
of Technologies in the Field of Energy Efficiency and Energy
Saving was formed.
In May and November, the Commission held several meetings
which were attended by the representatives of federal executive
bodies, members of the Russian Engineering Union, as well
as the representatives of universities, business community,
the scientific and expert communities. Within the meetings of the
Commission, such issues were discussed as promotion of ener-
gy efficient equipment production, financing tools for energy
efficiency projects, training for specialists involved in the field
of energy efficiency and energy saving at industrial enterprises, etc.
In 2019, the Company also supported the VIII International Youth
Forum «Engineers of the Future». The Company’s team took
part in the event. Rosseti FGC UES organised an open seminar-
discussion on high-temperature superconductivity.
MPS branches of Ural and Volga took part in the initiative
of the Russian Engineering Union Week without Turnstiles.
The transition of Rosseti Group
to a single brand architecture
In June 2019, the St. Petersburg International Economic Forum presented the Unified Brand Identity Standard of Corporate Identity
of PJSC Rosseti and the organisations of the Rosseti Group, approved by the Board of Directors of PJSC Rosseti on 29 April 2019.
Since that time all S&A of the main and distributive electric grid complex have transitioned to the single brand-architecture in corporate
and marketing communications and have started to use new names containing Rosseti trade mark and a regional or functional binding.
ROSSETI
ROSSETI
TOMSK
ROSSETI
SIBERIA
ROSSETI
SOUTH
ROSSETI
LENENERGO
ROSSETI
YANTAR
ROSSETI
CENTRE
ROSSETI
CENTRE AND PRIVOLZHYE
ROSSETI
NORTH-WEST
ROSSETI
FGC UES
ROSSETI
NORTH CAUCASUS
ROSSETI
VOLGA
ROSSETI
MOSCOW REGION
ROSSETI
KUBAN
ROSSETI
TYUMEN
ROSSETI
URALS
The activities regarding the transition to a single brand architecture were divided into two main stages.
Stage I. After the approval of the Unified Brand Identity Standard
by the Board of Directors of PJSC Rosseti, all S&A of the distribu-
tion and trunk complex carried out appropriate corporate proce-
dures. Further replacement of corporate elements is carried out
as the depreciation period expires, without increasing existing
budgets and within the framework of approved business plans.
Stage II. Change of legal names of S&A.
From the late December 2019, the S&A of the distribution
complex, which are part of the Rosseti Group, started to change
their legal names in accordance with the new brand architecture.
Features of a Single Brand
As of the beginning of 2019, the Russian electric grid complex did
not have a single recognisable and understandable name for
a wide audience for identification. The trust in Rosseti was distrib-
uted among direct subordination entities, each of which individual-
ly earned a reputation in its segment, among consumers, share-
holders and counterparties. However, the current situation with
15 parallel brands led to confusion and low awareness of people
not directly related to the power grid industry. As of the beginning
of 2019, Rosseti brand was strongly underrated. In fact, this had
a direct impact on the company’s quotes in the public capital mar-
kets and did not increase the income of the Group’s shareholders.
The strengthening of corporate identity opened up new opportuni-
ties for the prospective growth of the investment attractiveness
of the holding.
The introduction of a single ideological platform for all S&A and,
as a result, increased recognition of the Rosseti Group will allow
to focus the attention of stakeholders and the general public
around the world on the activities of the energy holding under
the auspices of a single authoritative brand. Large-scale rebrand-
ing will provide an opportunity for prospective growth of the invest-
ment attractiveness of the Company as a whole, its capitalisation
and loyalty. The results of the transformation will bring the compa-
ny much closer to the stakeholders, and the integral brand will
symbolise the unified quality standards of the Rosseti Group
throughout Russia.
Rosseti unites 70% of distribution networks and 90% of main
transmission network, implements unified approaches to man-
agement and development of power network infrastructure
of the country, constantly improves quality of rendered services,
expanding their list. Working under a single brand strengthens
the relationship between the enterprises of the Rosseti Group,
making the brand more recognisable in the country and in the
industry. It becomes easier and clearer for the consumer
to interact with us. The transition to a single name is a part
of the systematic process of a large-scale transformation
of all the holding’s activities.
Chairman of the Board of Directors of PJSC Rosseti,
Chairman of the Board of Directors of PJSC FGC UES
P. Livinsky
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PJSC FGC UES
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APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
The renaming of S&A will not entail any changes in the structure
or staff composition of the companies. Moreover, the full-fledged
building of communication on the basis of a single brand, togeth-
er with initiatives of Rosseti, aimed at popularisation of the elec-
tric power industry, will significantly improve the reputation of the
energy worker and attract promising staff. Thanks to the transi-
tion to a single brand architecture, each employee of the Com-
pany will be able to feel a part of a large 220 thousand staff,
regardless of their territorial attachment and will be involved
in solving common tasks for the entire energy holding. A united
team of energy workers, sharing common goals, will be able
to achieve even more significant results.
Internal control system
Participants of the Internal Control System (ICS)
Corporate governance
Board Committees
List of Meeting Minutes of the Audit Committee: No. 88
of 18 February 2019, No. 89 of 25 March 2019, No. 90 of 1 April
2019, No. 91 of 3 April 2019, No. 92 of 4 April 2019, No. 93
of 25 April 2019, No. 94 of 26 April 2019, No. 95 of 29 April
2019, No. 96 of 31 May 2019, No. 97 of 7 June 2019, No. 98
of 21 June 2019, No. 99 of 25 June 2019, No. 100 of 16 July
2019, No. 101 of 19 September 2019, No. 102 of 22 October
2019, No. 103 of 25 October 2019, No. 104 of 8 November
2019, No. 105 of 19 November 2019, No. 106 of 22 November
2019, No. 107 of 11 December 2019, No. 108 of 27 October
2019, No. 109 of 27 October 2019.
The activities and functions of the Audit Committee are governed
by the Regulations on the Audit Committee of the Board of Direc-
tors of PJSC FGC UES, approved by the resolution of the Board
of Directors of 16 November 201512.
List of Meeting Minutes of HR and Remuneration Com-
mittee: No. 59 of 1 March 2019, No. 60 of 27 March 2019,
No. 61 of 20 June 2019, No. 62 of 25 June 2019, No. 63
of 18 July 2019, No. 64 of 17 September 2019, No. 65
of 20 September 2019, No. 66 of 15 October 2019, No. 67
of 22 October 2019, No. 68 of 20 November 2019, No. 69
of 24 December 2019.
The HR and Remuneration Committee’s activities and
functions are governed by the Regulations on the HR
and Remuneration Committee of the Board of Directors
of PJSC FGC UES, a revised version of which was
approved by the Board of Directors of PJSC FGC UES
on 3 October 201613.
The list of Meeting Minutes of Strategy Committee: No. 80
of 28 January 2019, No. 81 of 25 March 2019, No. 82 of 28
March 2019, No. 83 of 16 May 2019, No. 84 of 24 May 2019,
No. 85 of 27 June 2019, No. 86 of 25 June 2019, No. 87
of 30 August 2019, No. 88 of 27 September 2019, No. 89
of 31 October 2019, No. 90 of 16 October 2019, No. 91
of 5 November 2019, No. 92 of 3 December 2019, No. 93
of 9 December 2019, No. 94 of 30 December 2019.
The activities and functions of the Strategy Committee are gov-
erned by the Regulations on the Strategy Committee of the Board
of Directors of PJSC FGC UES, a revised version of which was
approved by the Board of Directors of PJSC FGC UES on 12 July
201614.
List of Meeting Minutes of the Investment Committee: No. 99
of 5 February 2019, No. 100 of 18 February 2019, No. 101 of 2 April
2019, No. 102 of 2 April 2019, No. 103 of 8 April 2019, No. 104
of 29 April 2019, No. 105 of 25 June 2019, No. 106 of 25 June
2019, No. 107 of 23 August 2019, No. 108 of 28 August 2019,
No. 109 of 27 September 2019, No. 110 of 27 September 2019,
No. 111 of 24 October 2019, No. 112 of 25 November 2019,
No. 113 of 16 December 2019, No. 114 of 27 December 2019,
No. 115 of 30 December 2019.
The committee’s activities and functions are governed by the
Regulations on the Investment Committee of the Board of
Directors of PJSC FGC UES, a revised version of which was
approved by the Board of Directors on 23 March 201815.
AUDIT COMMISSION
BOARD OF DIRECTORS
AUDIT COMMITTEE,
OTHER COMMITTEES
EXECUTIVE BODIES
MANAGERS
AND EMPLOYEES
OF STRUCTURAL UNITS
INTERNAL CONTROL
AND RISK MANAGEMENT
DEPARTMENT
INTERNAL AUDIT DEPARTMENT
(THIRD LINE OF PROTECTION)
UNITS AT THE SECOND LINE
OF PROTECTION
Functions of ICS Participants
Member name
Core functions in the internal control system
First line of protection
Board of Directors
determines the principles of and approaches to the Company’s internal control system arrangement,
including approval of internal documents of the Company, stating the internal control system struc-
ture, and criteria for the internal control system efficiency assessment;
supervises the activities of the Company’s executive bodies in the main (priority) areas of operations;
annually review reports of the Chairman and members of the Management Board on the Company’s
internal control system functioning;
annually reviews the Internal Auditor’s reports on the internal control system efficiency;
reviews the results of the external independent audits of the internal control system efficiency.
Audit Committee of the
Board of Directors
preliminary reviews internal documents defining the internal control system organisation and its effi-
ciency criteria before their approval by the Company’s Board of Directors;
preliminary reviews the report of the Chairman of the Management Board and members of the Man-
agement Board on the internal control system functioning, the internal auditor’s report on ICS effi-
ciency, as well as information on the results of the external independent ICS efficiency audit prior
to their consideration by the Board of Directors of the Company;
reviews issues related to monitoring the Company’s accounting (financial) statements accuracy,
selecting an external auditor and performing the external audits, ensuring compliance with the regu-
latory legal requirements, and considering issues related to the analysis and assessment of imple-
mentation of the Regulations on internal control system.
monitor implementation of the set financial and operating indicators, monitor the compliance
with applicable legislation, performance of rules and procedures set by local regulations,
and monitor the reliability and timeliness of the Company’s reporting.
Other committees
of the Board of Directors
(HR and Remuneration
Committee, Strategy
Committee, Investments
Committe)
12 Minutes No. 291 dated 19 November 2015.
13 Minutes No. 341 dated 5 October 2016.
14 Minutes No. 331 dated 15 July 2016 given the version of Minutes No. 395 dated 26 March 2018.
15 Minutes No. 331 dated 15 July 2016 given the version of Minutes No. 395 dated 26 March 2018.
314
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PJSC FGC UES
2019 annual report
315
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Member name
Core functions in the internal control system
Member name
Core functions in the internal control system
Audit Commission
Confirms validity of data stated in the Annual Report, and the annual accounting (financial)
statements of the Company;
Executive bodies of the
Company (Management
Board, Chairman of the
Management Board)
The Company’s
Management Board
Chairman of the
Company’s Management
Board
analyses financial standing of the Company, identifies reserves for improving its financial standing,
makes recommendations to the governance bodies;
conducts inspections (audits) of the Company’s financial and economic activities.
Ensure the establishment and effective functioning of the ICS;
ensure implementation of the resolutions of the Board of Directors in terms of the internal control
arrangements.
Ensures that reports of the Chairman and members of the Management Board on the ICS
functioning are submitted for consideration to the meeting of the Company’s Board of Directors
upon preliminary review by the Audit Committee of the Company’s Board of Directors;
reviews the results of the external independent and internal assessment of the ICS efficiency,
ICS development and improvement measures.
Adopts regulatory and methodological documents of the Company on development and functioning
of the ICS, except for the documents that shall be approved by the Company’s Board of Directors;
ensures implementation of the Company’s performance plans required to achieve its targets;
arranges accounting records maintenance and management accounting, issue accounting
(financial) and other statements;
submits to the Company’s Board of Directors consideration any reports on the financial and
economic activities of the Company and on the arrangement and functioning of the Company’s ICS.
Heads of units
and structural subdivisions
of the Company
Responsible for the internal control system development, documentation, implementation,
monitoring and improvement in the functional areas of the Company’s operations, whereof the
responsibility
for arrangement and coordination/implementation is assigned to them by the Company’s regulatory
documents/provisions on structural subdivisions, including:
Employees of the Compa-
ny’s structural subdivisions,
implementing control
procedures in virtue of their
official duties
Second line of protection
Legal Department
ensuring implementation of the internal control principles;
arranging the efficient processes (activities), including development and implementation of new
or changing the existing monitoring procedures, taking into account the identified risks;
assessment of the monitored processes (activity areas) to optimise their efficiency and meet the
changing conditions of external and internal environment, ensuring their regulation, and developing
proposals to improve the control procedures;
arranging implementation of the control procedures;
arranging assessment (monitoring) of the control procedures implementation;
eliminating any drawbacks identified in the control procedures and processes (activity areas).
Execute control procedures;
ensure that line managers are duly informed of the cases when the execution of control procedures
has become impossible and/or on any changes in the design of control procedures in response
to the changes of internal and/or external business environment of the Company;
submit to the line managers consideration any proposals on the control procedures implementation
in respective activity areas.
Monitors the Company’s compliance with the applicable legal requirements by conducting legal exper-
tise and coordination in accordance with the procedure established by the Company’s regulatory and
administrative documents, drafts agreements and contracts, drafts regulatory and administrative docu-
ments, drafts decisions of the Company’s management bodies, drafts powers of attorney to represent
the Company’s interests to any third parties, drafts applications, letters, appeals, complaints sent on be-
half of the Company to legislative and executive authorities, judicial authorities, law enforcement agen-
cies, and monitors and informs the Company’s senior managers on the adopted regulatory legal acts
of the Russian Federation having any significant impact on the Company’s activities, minimising
the risks of non-compliance with the applicable legal requirements and the Company’s interests.
Corporate and Strategic
Management Department
Monitors compliance of decisions taken by the Company’s executive bodies with the legislation
of the Russian Federation, Company standards, regulatory and administrative documents of the
Company, and the Company’s interests, minimising the risks of non-compliance with the requirements
of corporate legislation and internal regulatory documents.
Department for Security
and Anti-Corruption
Policy16
Arranges and carries out inspection activities to establish the causes of any economic and reputation
damage to interests of the Company and its subsidiaries and affiliates, agency checks on receipt
of any information about possible abusive activities of any officials of the Company and its subsidiaries
and affiliates, including the hotline reports.
Department of Business
Administration
Supervises execution of instructions stated in the Company’s Management Board records, Company
orders, minutes of meetings and directions of the Chairman of the Management Board of the Company,
minimising the risks associated with the late fulfilment of any important tasks.
Centre of Technical
Supervision
of PJSC Rosseti
Internal Control
and Risk Management
Department
Carries out under the contract with PJSC FGC UES:
selective technical supervision of the condition and level of performance of the existing facilities
of the electric grid complex;
monitoring of the operational and process management arrangements;
monitoring of the production process safety level (labour protection; fire, industrial and environmen-
tal safety);
monitoring of implementation of the operational and system-wide measures intended for the preven-
tion of fires, breakdowns and accidents;
monitoring of completeness and timeliness of execution of the Company’s accident-prevention doc-
umentation and regulatory and administrative documents, minimising the risks of non-compliance
with the applicable legal requirements and the Regulations on a Uniform technological policy
in the electric grid complex, as well as any risks associated with violation of production process
safety, emergence of fires, breakdowns and accidents.
Coordinates the internal control processes;
develops methodological documents in the area of internal control;
arranges and carries out training of the Company’s employees in terms of internal control;
monitors issues of the ICS arrangement and functioning;
prepares and presents to the Company’s executive bodies any information on the ICS arrangement
and functioning;
ensures the implementation of the Company’s Anti-Corruption Policy, introduction and monitoring
of the implementation of Anti-Corruption Policies in the Company’s subsidiaries and affiliates;
arranges and carries out anti-corruption procedures in the Company;
develops and ensures updating of the regulatory and administrative documents aimed at prevention
(avoidance) of corruption;
arranges and carries out activities laying the groundwork of anti-corruption behaviour and animus
toward corruption among employees;
ensures work of the Company’s Central Commission on compliance with the corporate ethics code
and conflict of interest management;
submits reports to the Federal agencies of executive authority in accordance with the requirements
of the Normative Legal Acts of the Russian Federation in terms of disclosure of information on the
counterparties chain of ownership, ensuring efficiency and transparency of the Company’s activities;
carries out daily monitoring of the Company’s counterparties until complete performance of their
contractual obligations in respect of any information on their insolvency (bankruptcy), liquidation,
striking off the State Register (Uniform State Register of Legal Entities);
carries out monitoring and control of bankruptcy and liquidation procedures of counterparties,
analysis of implementation of relevant procedures, analysis of information on the progress of cases
and bankruptcy procedures, decisions taken by meetings of creditors and creditor committees
and actions of insolvency officers, preparation of proposals to protect the Company’s interests i
n connection with liquidation (bankruptcy) of any counterparties, striking off the Uniform State
Register of Legal Entities, including development of alternatives to minimise the Company’s risks.
16 Formerly — The Anti-Corruption and Economic Security Department (Order No. 5 as of 15 January 2020 «On the organisational structure of the Executive
Office of PJSC FGC UES»).
316
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PJSC FGC UES
PJSC FGC UES
2019 annual report
317
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
Member name
Core functions in the internal control system
Internal Control
and Risk Management
Department
maintains a unified register of the Company’s contractors, including the Company’s branches,
subsidiaries and affiliates undergoing any bankruptcy and liquidation procedures;
coordinates the activities of the Company’s structural subdivisions in order to represent and protect
interests of the Company as a creditor in any cases of bankruptcy and liquidation of counterparties;
selects any professional bodies of insolvency officers to nominate an insolvency officer for any
bankruptcy proceedings;
ensures preparation of conclusions on evidence of any signs of fictitious or deliberate bankruptcy
of organisations, carry out express analyses of legal entities;
interacts with insolvency officers, winding-up committees (liquidators), creditors, law enforcement
agencies and other persons in connection with any insolvency (bankruptcy), liquidation, striking
off the Uniform State Register of Legal Entities.
Third line of protection
Internal Audit
Department
Following the results of internal audit develops recommendations for improving control procedures,
individual components (elements) of internal control and ICS;
conducts independent internal assessment of the internal control system efficiency and issues
recommendations for improving efficiency and effectiveness of ICS.
Risk management system
KEY PRINCIPLES
OF RMS
continuity and integrity;
goal orientation;
integration into management;
balance between risks
and profitability;
indeterminacy;
consistency;
quality of information;
interest and leadership;
assignment of risk management
responsibility;
efficiency;
cross-functional networking;
reasonable confidence;
adaptability;
continuous improvement.
THE MAIN
PARTICIPANTS
OF RMS ARE
The Board of Directors;
The Audit Committee of the Board of Directors;
executive bodies (Chairman of the Management Board, Management Board);
Internal Control and Risk Management Department;
Internal Audit Department;
risk owners;
risk management executives.
Regulatory framework for RMS functioning
in the Company
The Company has the following regulatory documents regarding risk management:
Regulation of the risk management system of PJSC FGC UES17;
The procedure for identifying risks in PJSC FGC UES18;
Recommendations on how to assess the effectiveness of risk management measures19;
The list of owners of key operational risks20;
The Methodological Recommendations for the Assessment of Corruption Risks in PJSC FGC UES21;
The updated List of Corruption Risks of PJSC FGC UES22;
List of corruption risk owners23.
Internal audit
Regulation on internal audit activities in the Company
The Company approved the following documents regulating the internal audit activities:
Regulation on the Internal Audit Department of PJSC FGC UES, approved by the Chairman of the Management Board of PJSC
FGC UES on 4 October 2017;
Guidelines for conducting internal audits of PJSC FGC UES, approved by the order of PJSC FGC UES No. 261 of 6 July 2017
(approved by the Audit Committee of the Board of Directors of PJSC FGC UES (Minutes No. 62 of 30 May 2017));
Internal audits quality guarantee and improvement programme of PJSC FGC UES, approved by the Board of Directors of PJSC
FGC UES on 11 December 2017 (Appendix 3 to Meeting Minutes No. 383 of the Board of Directors of PJSC FGC UES
of 14 December 2017);
Rules of interaction of the Internal Audit Department with structural subdivisions and branches of PJSC FGC UES in the course
of inspections and monitoring of the corrective action plans implementation, approved by Order of PJSC FGC UES No. 120
of 22 March 2017;
Guidelines for monitoring the corrective action plans implementation to eliminate violations and shortcomings identified subsequent
to the results of internal audits, approved by Order of PJSC FGC UES No. 97 of 13 March 2017;
Instruction on the generation and use of the Unified Classifier of Violations and Shortcomings, approved by Order of PJSC FGC
UES No. 97 of 13 March 2017;
Guidelines for planning the Internal Audit Department activities, approved by Order of PJSC FGC UES No. 98 of 13 March 2017;
Guidelines for preparation of reports on implementation of the plan of activities and performance results of the Department of Inter-
nal Audit of PJSC FGC UES, approved by Order of PJSC FGC UES No. 488 of 22 November 2017;
Code of Ethics of Internal Auditors of PJSC FGC UES approved by Order of PJSC FGC UES No. 261 of 6 July 2017
(approved by the Audit Committee of the Board of Directors of PJSC FGC UES (Minutes No. 62 of 30 May 2017));
Internal control and risk management system efficiency assessment standard of PJSC FGC UES, approved by the Board of Direc-
tors of PJSC FGC UES (Minutes No. 309 of 29 February 2016);
Procedure for interaction of the Internal Audit Department of PJSC FGC UES with the internal control system subjects and other
interested parties carrying out the internal system control monitoring and assessment in individual areas of activity, and formation
of a guarantee administration scheme (the «guarantee card»), approved by Order of PJSC FGC UES No. 510 of 7 December 2017;
Regulations for recording of inspections of PJSC FGC UES carried out by external control (supervision) bodies, approved by Order
of PJSC FGC UES No. 104 of 15 March 2017;
Regulation on the professional competency profile of the Internal Audit Department officers, approved by Order of PJSC FGC UES
No. 303 of 9 August 2018;
Methods for assessing the corporate governance of PJSC FGC UES, approved by Order of PJSC FGC UES No. 116 as
of 11 April 2019.
17 Resolution of the Board of Directors of 16 November 2015 (Minutes No. 291 of 19 November 2015), new version of the resolution of the Board of Directors
of 12 December 2016 (Minutes No. 347 of 13 December 2016).
18 Order of PJSC FGC UES No. 42 of 8 February 2018.
19 Order of PJSC FGC UES No. 42 of 8 February 2018.
20 Order of PJSC FGC UES No. 213 of 15 June 2018.
21 Order of PJSC FGC UES No. 316 of 24 August 2018.
22 Minutes of the Board of Directors of PJSC FGC UES No. 472 of 14 November 2019.
23 Order of PJSC FGC UES No. 488 of 27 December 2019.
318
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2019 annual report
319
APPENDIX 1
[ ADDITIONAL INFORMATION ON THE ANNUAL REPORT’S SECTIONS ]
APPENDIX 2.
[ REPORT ON COMPLIANCE WITH PRINCIPLES AND RECOMMENDATIONS OF THE CORPORATE GOVERNANCE CODE ]
Information on key decisions, measures aimed at improving
the internal audit system, implemented in accordance with resolutions
of the Company’s Board of Directors
In 2019, the Management Board of PJSC FGC UES approved
the Plan of Corporate Governance Development for the
Subsidiaries of PJSC FGC UES (Minutes No. 1620 of 28 March
2019), within which the list of measures for the development
of corporate governance in the subsidiaries of PJSC FGC UES
for 2019–2020 was approved, including in the field of internal
audit — establishment of Internal Audit Department in
subsidiaries (the list below) with the establishment of functional
accountability of the Internal Audit Department to the Board
of Directors of subsidiaries and administrative accountability
to the sole executive officer of subsidiaries (General Director):
JSC Mobile GTES;
JSC NTC FGC UES;
JSC TsIUS UES;
JSC Electrosetservice UNEG;
JSC MUS Energetiki;
IT Energy Service LLC.
The Internal Audit Department of PJSC FGC UES is responsible
for methodological and operational support of the activities
of the Internal Audit Departments of PJSC FGC UES.
Market intelligence on the Company’s securities
Dynamics of trading volumes and value of depository receipts of PJSC FGC UES
at the London Stock Exchange24, 2019
50,000
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2
0
1
5
1
.
.
9
1
0
2
0
1
2
2
.
.
9
1
0
2
0
1
9
2
.
.
9
1
0
2
1
1
5
0
.
.
9
1
0
2
1
1
2
1
.
.
9
1
0
2
1
1
9
1
.
.
9
1
0
2
1
1
6
2
.
.
9
1
0
2
2
1
3
0
.
.
9
1
0
2
2
1
0
1
.
.
9
1
0
2
2
1
7
1
.
.
9
1
0
2
2
1
4
2
.
.
9
1
0
2
2
1
1
3
.
- Trading volume of DR, ea.
- Price for DR at LSC, USD
- Rebased price for DR given the results of MOEX trading
Trading volume, lowest and highest price of one share of PJSC FGC UES per month,
main events driving dynamics of the stock value in 2019
The Board
of Directors
recommended
to pay dividends
for 2018
The Board of Directors
recommended
to pay dividends
for 9M 2019
3
.
0
2
7
.
3
1
8
.
9
1
4
.
4
2
7
.
0
4
7
.
4
3
3
.
6
1
1
.
6
2
4
.
8
1
3
.
1
2
0
.
4
2
0.2200
0.2000
0.1800
0.1600
0.1400
B
U
R
,
e
c
i
r
P
.
s
c
p
n
b
l
,
e
m
u
o
V
l
45
40
35
30
25
20
15
10
5
0
5
.
9
2
January
February
March
April
May
June
July
August
September
October
November
December
- Volume
- min_min
- max_max
24 The DR price quoted is the valuation of 1 GDR through the stock price based on the MOEX trading results (arbitration of the value of receipts).
Calculation as per the formula: Price per 1 share on the MOEX/exchange rate USD to RUB with the Central Bank of the Russian Federation x 500
(number of shares in 1 GDR).
APPENDIX 2.
Report of PJSC FGC UES on compliance with principles
and recommendations of the Corporate Governance Code
approved by the Bank of Russia Board of Directors
on 21 March 2014 and recommended for application
by the Bank of Russia (Bank of Russia Letter
No. 06-52/2463 of 10 April 2014)
REPORT DATE: 30 MARCH 2020.
THIS REPORT WAS CONSIDERED AS PART OF THE PRELIMINARY CONSIDERATION OF THE COMPANY’S ANNUAL REPORT BY THE BOARD
OF DIRECTORS OF PJSC FGC UES ON 10 APRIL 2020 (MINUTES NO. 497 OF 10 APRIL 2020).
THE BOARD OF DIRECTORS CONFIRMS THAT THE MATERIAL PRESENTED IN THIS REPORT CONTAINS COMPLETE AND ACCURATE
INFORMATION ON THE COMPANY’S COMPLIANCE WITH THE PRINCIPLES AND RECOMMENDATIONS OF THE CORPORATE GOVERNANCE
CODE DURING THE REPORTING PERIOD FROM 1 JANUARY 2019 TO 30 MARCH 2020.
THIS REPORT IS AN APPENDIX TO THE ANNUAL REPORT OF PJSC FGC UES FOR 2019, WHICH DESCRIBES THE MOST SIGNIFICANT
ASPECTS OF THE MODEL AND PRACTICE OF CORPORATE GOVERNANCE, AS WELL AS A DESCRIPTION OF THE METHODOLOGY BY WHICH
THE COMPANY CONDUCTED AN ASSESSMENT OF COMPLIANCE WITH THE PRINCIPLES OF CORPORATE GOVERNANCE.
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
The Company shall ensure equal and fair treatment of all shareholders exercising their right to participate
in the governance of the Company.
The Company shall cre-
ate the most favourable
conditions for its share-
holders to enable them
to participate in the Gen-
eral Meeting and devel-
op reasoned positions
on items on its agenda,
as well as to provide
them with the opportuni-
ty to coordinate their ac-
tions and express opin-
ions on items discussed.
observed
partially
observed
not observed
1. The Company’s inter-
nal document approved
by the General Meeting
of Shareholders and
regulating the proce-
dures for holding the
General Meeting
is publicly available.
2. The Company pro-
vides an accessible
way to communicate
with the community,
such as a hotline,
a special email address
or an Internet forum that
enables shareholders
to express their opinions
and ask questions
regarding the agenda
when preparing for
the General Meeting.
The above actions were
taken by the Company
prior to each General
Meeting held in the re-
porting period.
1.1
1.1.1
320
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321
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
observed
partially
observed
not observed
Corporate governance
principles
1.1.2 Procedures for sending
notice of the General
Meeting and provision
of the relevant materials
shall enable sharehold-
ers to get properly pre-
pared for participating
therein.
1.1.3 During the preparation
for and holding of the
General Meeting, share-
holders shall be able
to receive in a freely
and timely manner infor-
mation on the meeting
and materials thereto,
ask questions to mem-
bers of the Company’s
executive bodies
and the Board of Direc-
tors, and to communicate
with each other.
Corporate governance
principle compliance
criteria
1. The Notice of the up-
coming General Meeting
was posted (published)
on the corporate website
at least 30 days prior
to the meeting.
2. The Notice of the Gen-
eral Meeting specified
the exact location of the
meeting and documents
required for admission
to the premises.
3. Shareholders had ac-
cess to the information
about the persons who
had proposed items
on the agenda and nomi-
nated candidates
to the Board of Directors
and the Audit Commission
of the Company.
1. In the reporting period,
shareholders were
enabled to ask questions
to members of the Compa-
ny’s executive bodies and
the Board of Directors prior
to and during the Annual
General Meeting.
2. Position of the Board
of Directors (including
any dissenting opinions
recorded in the minutes)
on each agenda item
of the General Meetings
held within the reporting
period was included in the
materials for the General
Meeting of Shareholders.
3. The Company provid-
ed shareholders, entitled
thereto, with access to
the list of persons entitled
to participate in the Gen-
eral Meeting, starting
from the date of its re-
ceipt by the Company,
n all cases of holding
general meetings
in the reporting period.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
observed
partially
observed
not observed
observed
partially
observed
not observed
1.1.4
Corporate governance
principles
There shall be no unjusti-
fied difficulties preventing
shareholders from exer-
cising their right to re-
quest for a General
Meeting to be convened,
nominate candidates
to the Company’s govern-
ing bodies, and to place
proposals on its agenda.
1.1.5 Each shareholder
should be able to freely
exercise his right to vote
in a straightforward and
most convenient way.
Corporate governance
principle compliance
criteria
1. In the reporting period,
shareholders were enti-
tled to propose new items
to be included on the
agenda of the Annual
General Meeting at least
60 days after the end
of the respective calendar
year.
2. In the reporting period,
the Company did not re-
fuse to accept proposals
for the agenda or candi-
dates to the Company’s
bodies due to misprints
or other insignificant de-
fects in a shareholder’s
proposal.
1. The Company’s inter-
nal document (internal
policy) includes provi-
sions whereby any partic-
ipant of the General
Meeting may, until the
end of the General Meet-
ing, request a copy
of the ballot filled by that
participant and certified
by the Company’s count-
ing board.
1.1.6 Procedures for holding
a General Meeting set
by the Company shall
provide equal opportunity
to all persons present
at the general meeting
to express their opinions
and ask questions that
might be of interest
to them.
1. In the reporting period,
when General Meetings
of Shareholders
were held in the form
of a meeting (joint pres-
ence of shareholders),
sufficient time was pro-
vided for reports on agen-
da items and for further
discussion thereof.
2. Candidates to the
Company’s governing
and control bodies were
available to answer
shareholders’ questions
at the meeting where they
were put to the vote.
322
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PJSC FGC UES
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2019 annual report
323
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
Corporate governance
principles
1.1.6
Corporate governance
principle compliance
criteria
3. When making deci-
sions related to the prep-
aration and holding
of the General Meeting
of Shareholders, the Board
of Directors considered
a matter on the use of tele-
communications to pro-
vide shareholders with
remote access to attend
the General Meetings
held in the reporting
period.
Shareholders shall have equal and fair opportunity to participate in the Company’s profits by means
of receiving dividends.
1.2
1.2.1
The Company should
develop and put in place
a transparent and clear
mechanism for determin-
ing the amount of
dividends and payment
thereof.
1.2.2
The Company shall not
make a decision on the
dividend payment if such
decision, without formally
violating limits set by law,
is economically unjustified
and might lead to false
assumptions about the
Company’s activity.
1. The Company’s
dividend policy has been
developed, approved
by the Board of Directors
and disclosed.
2. If the Company’s
dividend policy uses
criteria from the
Company’s financial
accounts to determine
the amount of dividends,
the dividend policy shall
employ the consolidated
financial indicators.
1. The Company’s
dividend policy clearly
indicates the financial/
economic circumstances
under which the
Company shall not pay
dividends.
1.2.3
The Company should
not allow deterioration
of dividend rights of its
existing shareholders.
1. In the reporting period,
the Company did not take
any actions leading to the
deterioration of dividend
rights of the existing
shareholders.
observed
partially
observed
not observed
observed
partially
observed
not observed
observed
partially
observed
not observed
1.2.4
Corporate governance
principles
The Company shall strive
to rule out any ways
through which its
shareholders can obtain
any profit or gain at the
Company’s expense
other than dividends
and liquidation value.
Corporate governance
principle compliance
criteria
1. To eliminate other
methods for shareholders
to obtain profit (income)
at the Company’s
expense, other than
dividends and liquidation
value, the Company’s
internal documents
establish controls that
ensure the timely
identification and
procedure for the
approval of transactions
with persons affiliated
(related) with substantial
shareholders (persons
entitled to dispose of the
votes attached to voting
shares), where the law
does not formally
recognise such
transactions as related-
party transactions.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
1. partially
not observed.
The Company’s internal
documents do not provide
for controls that ensure
the timely identification
and procedure for the
approval of transactions
with persons affiliated
(related) with substantial
shareholders (persons
entitled to dispose of the
votes attached to voting
shares), where the law
does not formally recog-
nise such transactions as
related-party transactions.
The Company’s substan-
tial shareholders are PJSC
Rosseti that holds 80.13%
of voting shares, and the
Russian Federation repre-
sented by the Federal
Property Management
Agency under the agree-
ment concluded with PJSC
Rosseti.
The Russian Federation
has no affiliated persons.
Currently, the legislation
is moving along the path
of simplifying the related-
party transactions proce-
dure, and reducing their
total number. Thus,
Federal Law No. 343-FZ
of 3 July 2016, from 1
January 2017, introduced
a new related-party trans-
actions procedure
through notification
to management bodies
members, and also ex-
panded the list of transac-
tions that are not recog-
nised as related-party
transactions, including
transactions with a price
threshold, before the
achievement of which the
transactions can be made
without corporate proce-
dures provided by
Chapter XI of Federal
Law No. 208-FZ of 26
December 1995 On Joint-
Stock Companies.
324
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PJSC FGC UES
PJSC FGC UES
2019 annual report
325
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Corporate governance
principles
Corporate governance
principle compliance
criteria
1.2.4
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
In accordance with these
changes and taking into
account the Bank
of Russia Directive
No. 4335-U of 31 March
2017 (regarding the
amount of transactions)
deals amounting to more
than RUB 1 billion be-
tween PJSC FGC UES
and the controlled entities
of PJSC Rosseti in 2019
were related-party trans-
actions and were made
in the manner prescribed
by the requirements
of the legislation of the
Russian Federation.
In accordance with the
corporate procedure,
all agreements concluded
in the Company shall
be preliminary approved,
including verification
of the information on
counterparties under
the transactions. The
counterparties are also
inspected at the stage
of procurement
procedures.
The Company does not
currently plan to make
any additional amend-
ments to its internal doc-
uments in respect of the
introducing additional
control measures and
procedures for the ap-
proval of transactions
mentioned in this
paragraph.
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
The corporate governance system and practices shall guarantee equal conditions for all shareholders owning shares
of the same category (type), including minority shareholders and foreign shareholders, as well as their equal treatment
by the Company.
1.3
1.3.1
The Company should
create conditions that
would enable its govern-
ing
bodies and controlling
persons to treat each
shareholder fairly, in par-
ticular, which would elimi-
nate the possibility of any
abuse of minority share-
holders by major share-
holders.
1. During the reporting
period, the procedures
for managing potential
conflicts of interest
among existing share-
holders were efficient,
and the Board of Direc-
tors paid due attention
to conflicts among share-
holders, if there were any.
1.3.2
The Сompany should not
take any actions that will
or might result in artificial
redistribution of corporate
control.
1. The Company does
not have quasi-treasury
shares or they were used
in the voting during
the reporting period.
observed
partially
observed
not observed
observed
partially
observed
not observed
No conflicts of in-
terests were re-
corded in the
reporting
period.
The Company
has quasi-treasury
shares but they did
not take part in the
voting at the Annu-
al General Meeting
and the Extraordi-
nary General Meet-
ing of Shareholders
in 2018.
1.4
1.4
2.1
2.1.1
The shareholders should be provided with reliable and efficient means of recording their rights in shares as well
as with the opportunity to freely dispose of such shares in a non-onerous manner.
The shareholders should
be provided with reliable
and efficient means
of recording their rights
in shares as well as with
the opportunity to freely
dispose of such shares
in a non-onerous manner.
1. The registrar’s quality
and reliability in maintain-
ing the shareholder register
meet the Company’s
and its shareholders’
needs.
observed
partially
observed
not observed
The Board of directors provides strategic governance of the Company, determines the main principles of and approach-
es to the arrangement of the Company’s risk management and internal control systems, supervises the Company’s
executive bodies, and performs other key functions.
The Board of Directors
should be responsible
for making decisions
to appoint and remove
members of executive
bodies, including in con-
nection with their failure
to perform their duties
properly. The Board
of Directors shall also en-
sure that the Company’s
executive bodies act in
accordance with an ap-
proved development
strategy and the Compa-
ny’s activities.
1. The Board of Directors
has the powers set out
in the Articles of Associa-
tion to appoint and re-
move members of the
executive bodies, as well
as determine terms and
conditions of contracts
to be concluded with
them.
2. The Board of Directors
has considered a report
(reports) of the sole exec-
utive body and members
of the collective executive
board on the implementa-
tion of the Company’s
strategy.
observed
partially
observed
not observed
1. partially
not observed.
According to the Compa-
ny’s Articles of Associa-
tion, the Board of Directors
shall appoint members
of the Management Board
of PJSC FGC UES,
and the General Meeting
of Shareholders shall
appoint the Chairman
of the Management Board.
The Company does not
plan on amending
its Articles of Association
with respect to delegating
the authority to appoint
the Chairman of the
326
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PJSC FGC UES
PJSC FGC UES
2019 annual report
327
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
2.1.1
2.1.2
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
Management Board
to the Board of Directors.
2. Observed.
The Board of Directors
shall establish basic long-
term targets of the Com-
pany’s activity, evaluate
and approve its key per-
formance indicators and
principal business goals,
as well as evaluate and
approve its strategy and
business plans in respect
of its core businesses.
1. During the reporting peri-
od, the Board of Directors
considered matters related
to the progress review and
updating of the Company’s
strategy, the approval of its
financial and business plan
(budget), and the review
of criteria and performance
indicators (including inter-
mediate) of the Company’s
strategy and business plan.
observed
partially
observed
not observed
2.1.3
The Board of Directors
shall determine principles
of and approaches
to the establishment
of the Company’s risk
management and internal
control systems.
1. The Board of Directors
determined principles
of and approaches to the
establishment of the
Company’s risk manage-
ment and internal control
systems.
observed
partially
observed
2.1.4
The Board of Directors
shall determine the Com-
pany’s policy on remunera-
tion and/or reimbursement
of expenses incurred by its
Board members, members
of its executive bodies
and other key managers.
2.1.5
The Board of Directors
shall play a key role in
prevention, detection and
resolution of internal con-
flicts between the Com-
pany’s bodies,
shareholders and em-
ployees.
2. In the reporting period,
the Board of Directors re-
viewed the Company’s in-
ternal control and risk
management systems.
1. The Company has de-
veloped and implemented
the policy(-ies) approved
by the Board of Directors
on the remuneration and
reimbursement (compensa-
tion) of expenses incurred
by the Board members,
members of its executive
bodies and other key
managers.
2. During the reporting
period, the Board of Di-
rectors considered issues
related to the above
policy(-ies).
1. The Board of Directors
plays a key role in pre-
vention, detection
and resolution of internal
conflicts.
2. The Company has
established a system
for identifying transac-
tions involving conflicts
of interest and a system
of measures aimed at re-
solving such conflicts.
not observed
observed
partially
observed
not observed
observed
partially
observed
not observed
2.1.6
Corporate governance
principles
The Board of Directors
shall play a key role in en-
suring that the Company
is transparent, discloses
information in full and
in a timely manner,
and provides its share-
holders with easy access
to its documents.
Corporate governance
principle compliance
criteria
1. The Board of Directors
has approved the Regu-
lations on the Information
Policy.
2. The Company has de-
termined persons respon-
sible for implementing
the information policy.
2.1.7
The Board of Directors
shall monitor the Compa-
ny’s corporate gover-
nance practices and play
a key role in its material
corporate events.
1. During the reporting
period, the Board of Direc-
tors considered items
on the Company’s corpo-
rate governance practices.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
observed
partially
observed
not observed
2.2
The Board of directors shall be accountable to the Company’s shareholders.
2.2.1
Information on the Board
of Directors’ activities
shall be disclosed and
provided to the share-
holders.
2.2.2
The Chairman of the
Board of Directors must
be available for communi-
cation with the Compa-
ny’s shareholders.
1. The Company’s annual
report for the reporting
period includes informa-
tion on the attendance
at meetings of the Board
of Directors and its com-
mittees.
2. The annual report con-
tains information on the
main findings of the Board
of Directors’ performance
evaluation for the report-
ing period.
1. The Company has
a transparent procedure
that enables sharehold-
ers to submit their ques-
tions and positions
thereon to the Chairman
of the Board of Directors.
observed
partially
observed
not observed
observed
partially
observed
not observed
328
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
329
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
2.3
The Board of directors shall be an efficient and professional governing body of the Company capable of making
objective and independent judgments and taking decisions in the best interests of the Company and its shareholders.
2.3.1
2.3.1 Only persons with impec-
cable business and per-
sonal reputation shall
be elected to the Board
of Directors; such persons
shall also have knowl-
edge, skills, and experi-
ence required to make
decisions that fall within
the role and responsibili-
ties of the Board of Direc-
tors and to perform
its functions efficiently.
observed
partially
observed
not observed
1. The procedure for the
Board of Directors’ per-
formance evaluation ad-
opted in the Company
includes, among other
things, evaluation of pro-
fessional skills and exper-
tise of the Board
members.
2. In the reporting period,
the Board of Directors
(or its Nomination
Committee) evaluated
candidates to the Board
of Directors in terms
of their experience,
knowledge, business
reputation, absence
of conflicts of interest,
etc.
1. Observed.
2. not observed.
In the reporting period,
the Board of Directors and/
or the HR and Remunera-
tion Committee did not
evaluate candidates to the
Board of Directors consid-
ering the following criteria.
The procedure for nomi-
nating candidates to the
Board of Directors of the
Company is regulated
by Regulation of the Gov-
ernment of the Russian
Federation No. 738
of 3 December 2004.
Taking into account the le-
gal status of the Company
(PJSC FGC UES is includ-
ed in the special list ap-
proved by Order of the
Government of the Rus-
sian Federation No. 91-r
of 23 January 2003),
candidates to the Board
of Directors are nominated
in accordance with the
Order of the Government
of the Russian Federation.
The candidates to the
Board of Directors are
selected and evaluated
by the Federal Property
Management Agency
Committee on selection
of independent directors
and representatives of the
interests of the Russian
Federation for governing
and control bodies of joint-
stock companies consider-
ing suggestions of the
Russian Ministry of Energy
and PJSC FGC UES;
the candidates are prelimi-
nary surveyed and evalu-
ated in terms of their
experience, knowledge,
business reputation,
absence of conflicts
of interest, etc.
2.3.2 Board members shall
be elected pursuant
to a transparent
procedure enabling
shareholders to obtain
information about the
respective candidates
that is sufficient to get
an idea of the candidates’
personal and professional
qualities.
observed
partially
observed
not observed
1. In all cases when
a general meeting
of shareholders was
held during the reporting
period, the agenda
of which included the
election of the Board
of Directors, the Company
provided shareholders
with biographical data
of all candidates to the
Board of Directors,
results of the evaluation
of such candidates
performed by the Board
of Directors (or its
Nomination Committee),
as well as information
on the candidates’ compli-
ance with the indepen-
dence criteria according
to the recommendations
in paragraphs 102–107
of the Code, and the
candidates’ written
consent to be elected
to the Board of Directors.
In 2019, candidates for
the Board of Directors
of PJSC FGC UES were
nominated by Order of the
Government of the Rus-
sian Federation No. 384-r
of 7 March 2019.
The Company does not
plan to implement this rec-
ommendation in the next
reporting periods.
1. partially
not observed.
When holding the Annual
General Meeting of Share-
holders on 26 June 2019,
in the agenda of which
the issue of electing mem-
bers of the Board of Di-
rectors was included,
no information was pro-
vided on the results of the
evaluation of such candi-
dates by the Board of Di-
rectors or the emuneration
Committee.
The procedure for nomi-
nating candidates
to the Board of Directors
of the Company is regu-
lated by Regulation of the
Government of the Rus-
sian Federation No. 738
of 3 December 2004.
In 2019, election candi-
dates for the Board of Di-
rectors of PJSC FGC UES
were nominated by Order
of the Government
of the Russian Federation
No. 384-r of 7 March 2019
as representatives of the
Russian Federation and
independent directors.
The Company does not
plan to implement this rec-
ommendation in the next
reporting periods.
Other information on the
candidate (biographical
data, the consent, the sta-
tus of an independent
director) was presented
to the shareholders
as part of the materials
to the AGM.
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2.3.3
2.3.4
Corporate governance
principles
The composition of the
Board of Directors shall
be balanced, in particular,
in terms of qualifications,
expertise, knowledge
and business qualities
of its members. The
Board of Directors shall
enjoy the confidence
of shareholders.
The number of members
of the Company’s Board
of Directors shall enable
the Board to organise its
activities in the most effi-
cient way, in particular,
to create Board commit-
tees, as well as to enable
the Company’s substan-
tial minority shareholders
to elect a candidate to the
Board of Directors for
whom they would vote.
Corporate governance
principle compliance
criteria
1. As part of the Board
performance evaluation
carried out in the reporting
period, the Board of Direc-
tors reviewed its own
needs in professional
expertise, experience
and business skills.
1. As part of the Board
performance evaluation
carried out in the report-
ing period, the Board
of Directors considered
whether the size of the
Board was appropriate
in terms of the Compa-
ny’s needs and share-
holder interests.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
observed
partially
observed
not observed
2.4
The Board of directors shall include a sufficient number of independent directors.
1. During the reporting
period, all independent
members of the Board
of Directors met the inde-
pendence criteria speci-
fied in recommendations
102–107of the Code
or were recognised
as such by the decision
of the Board of Directors.
observed
partially
observed
not observed
2.4.1 An independent director
shall mean any individual
who has required profes-
sional skills and expertise
and is sufficiently able
to have his/her own posi-
tion and make objective
and fair judgments, free
from the influence of the
Company’s executive
bodies, certain groups
of shareholders or other
stakeholders. It should be
noted that, in normal con-
ditions, a candidate (or
an elected director) shall
not be deemed indepen-
dent, if he/she is associ-
ated with the company,
any
of its substantial share-
holders, material trading
partners or competitors,
or the government.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
2.4.2
Corporate governance
principles
It is recommended
to evaluate whether can-
didates nominated to the
Board of Directors meet
independence criteria
as well as to review,
on a regular basis,
whether independent
Board members meet the
independence criteria.
When carrying out such
evaluation, substance
shall take precedence
over form.
Corporate governance
principle compliance
criteria
1. In the reporting period,
the Board of Directors
(or the Nomination Com-
mittee) evaluated the
independence of each
candidate to the Board
and submitted the rele-
vant opinion to share-
holders.
2. In reporting period,
the Board of Directors
(or the Nomination Com-
mittee) at least once re-
viewed the independence
of the acting Board of Di-
rectors members who the
Company specifies in the
annual report as indepen-
dent directors.
3. Procedures have been
developed in the Compa-
ny that determine neces-
sary actions to be taken
by the member of the
Board of Directors if he
or she stops being inde-
pendent, including
the obligation to notify
the Board of Directors
in a timely manner.
2.4.3 At least one third of the
elected members of the
Board of Directors is
made up of independent
directors.
1. At least one third of the
elected members of the
Board of Directors is
made up of independent
directors.
observed
partially
observed
not observed
1. not observed.
In 2019, the conclusion
regarding the indepen-
dence of candidates
to the Board of Directors
of the Company was not
presented to the share-
holders as the status
of the candidates to the
Board of Directors of the
Company is determined
by Order of the Govern-
ment of the Russian
Federation No. 384-r
of 7 March 2019 on Nom-
ination of Candidates
to the Governing and
Control Bodies of PJSC
FGC UES taking into
account the preliminary
selection by the Federal
Property Management
Agency of candidates
for management and
control bodies of joint-
stock companies with
participation of a state,
representatives of the
Moscow Exchange,
where the independence
of these candidates
is also assessed
in accordance with recom-
mendations of the Code
and the requirements
of the Listing Rules
of PJSC Moscow
Exchange.
The Company does not
plan to implement this rec-
ommendation in the next
reporting periods.
2. Observed.
3. Observed.
1. partially
not observed.
Independent members
of the Board of Directors
during the reporting
period made up less
than 1/3 of the Board
of Directors composition
of 11 members.
To comply with this
recommendation
of the Code, the number
of independent directors
in the company shall
be more than three
(at least four).
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Corporate governance
principles
Corporate governance
principle compliance
criteria
2.4.3
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
Board of Directors
of the Company has
three independent direc-
tors, that corresponds
with the listing rules
of the Moscow Exchange,
which state that the
Board has to have
at least 1/5, but no less
than 3, independent
directors.
The process of formation
of proposals and nomina-
tion of candidates for
the management bodies
of the Company is regu-
lated by Resolution of the
Government of the Rus-
sian Federation No. 738
On Management of the
Federal Ownership
of Shares of Joint-stock
Companies and the Use
of a Special Right
to Participate in the Man-
agement of Joint-stock
Companies (‘Gold
Share’) dated 3 Decem-
ber 2004. Candidates
for the Board of Directors
of the Company are
elected on the basis
of the corresponding
order of the Government
of the Russian Federation.
In 2018, election candi-
dates for the Board of
Directors of PJSC FGC
UES were nominated
by Order of the Govern-
ment of the Russian
Federation No. 303-r
of 3 March 2018 as rep-
resentatives of the
Russian Federation
and independent directors.
In 2019, election candi-
dates for the Board of
Directors of PJSC FGC
UES were nominated
by Order of the Govern-
ment of the Russian
Federation No. 384-r
of 7 March 2019 as rep-
resentatives of the
Russian Federation
and independent directors.
The risks associated
with the incomplete
implementation of the
recommendations
Corporate governance
principles
Corporate governance
principle compliance
criteria
2.4.3
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
2.4.4
Independent directors
shall play a key role
in preventing internal
conflicts in the Company
and performing the Com-
pany’s material corporate
actions.
1. Independent directors
(who do not have any
conflicts of interest) per-
form a preliminary evalu-
ation of material corpo-
rate actions related
to a potential conflict
of interest, and the find-
ings of such evaluation
are submitted to the
Board of Directors.
observed
partially
observed
not observed
of the Code are offset
by the effective organisa-
tion of the activities
of independent directors
in the Company.
There is no information
on the planned increase
in the number of nominat-
ed independent directors;
therefore, there is no plan
to increase their number
at present.
1. partially
not observed.
The preliminary evaluation
of material corporate
actions related to a possi-
ble conflict of interest
is carried out only within
the framework of the anal-
ysis of the Board Strategy
Committee materials,
as well as within the con-
sideration of materials sent
to the members of the
Board of Directors,
by independent directors
(who do not have any con-
flicts of interest).
The Company’s Articles
of Association do not give
a definition of material cor-
porate actions.
However, the issues men-
tioned in the Corporate
Governance Code relating
to material actions are:
• reorganisation of the
Company;
• acquisition of 30
or more percent of the
voting shares of the
Company (takeover);
• material transactions
made by the Company;
• increase or decrease
in the authorised capital
of the Company;
• listing and delisting
of the Company’s
shares,
in accordance with the
current legislation and
the Articles of Associa-
tion of the Company falls
within the remit of the
Board of Directors
or the General Meeting
of Shareholders.
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Corporate governance
principles
Corporate governance
principle compliance
criteria
2.4.4
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
Most of these issues
(except for listing and del-
isting of shares and de-
crease in the authorised
capital) fall within the com-
petence of the Strategy
Committee of the Board
of Directors.
During the reporting peri-
od, several material cor-
porate actions were made
by persons under the con-
trol of the Company from
the list of material corpo-
rate actions specified
in the Code.
In all these cases, the inde-
pendent directors made
a preliminary assessment
of transactions under con-
sideration of materials sent
to the Board of Directors.
Therefore, the risks asso-
ciated with the incomplete
implementation of this rec-
ommendation of the Code
have not been identified.
Under the current process
of reforming the corporate
legislation and the lack of
a unified approach to un-
derstanding the essence
of “material corporate ac-
tions”, the Company does
not currently plan to make
any amendments to its in-
ternal documents.
2.5
The Chairperson of the Board of directors contributes to the most effective implementation of the functions
imposed on the Board of directors.
2.5.1
The Chairperson of the
Board of Directors shall be
an independent director;
or a senior independent
director shall be appointed
among the Company’s
independent directors
to coordinate work of the
independent directors
and to liaise with the Chair-
person of the Board.
1. The Chairperson
of the Board of Directors
is an independent direc-
tor; or a senior indepen-
dent director has been
appointed among
the Company’s indepen-
dent directors.
observed
partially
observed
not observed
1. not observed.
The Chairman of the Board
of Directors is not an inde-
pendent director.
In accordance with sub-
paragraph D of paragraph
1 of list of instructions of the
President of the Russian
Federation No. Pr-846
of 2 April 2011, as well
as Order of the Government
of the Russian Federation
No. ISH-P13-26pr of 8 April
2011, professional trustee
shall be elected as a Chair-
person of the boards
of directors of companies
with state participation.
Corporate governance
principles
2.5.1
Corporate governance
principle compliance
criteria
2. The function, rights
and duties of the Chair-
person of the Board
of Directors (and, if appli-
cable, the Senior Inde-
pendent Director)
are properly specified
in the Company’s internal
documents.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
A directive is issued
on the topic of election
of the Chairperson of the
Board of Directors in ac-
cordance with the Decree
of the Government
of the Russian Federation
No. 738 of 3 December
2004.
There is no practice
of determining a senior in-
dependent director in the
Board of Directors during
the reporting period.
At the same time, in 2019,
there were amendments
to the Corporate Gover-
nance Code of PJSC FGC
UES (Minutes No. 444
of 25 April 2019) which
specify that one senior
independent director
can be elected out of the
independent directors pre-
sented in the Company
Board of Directors. Senior
Independent Director
is nominated by indepen-
dent directors.
Thus, the issue on select-
ing a Senior Independent
Director can be solved
by independent directors.
At present, the absence
of the Senior Independent
Director does not entail
additional risks for the
Company and its share-
holders.
The election of the Chair-
person of the Board
of Directors will be held
in accordance with the di-
rective of the Government
of the Russian Federation.
2. Соблюдается.
2.5.2
The Chairperson
of the Board of Directors
ensures a constructive
atmosphere of meetings,
free discussion of issues
included in the agenda
of the meeting, control
over the implementation
of decisions made by the
Board of Directors.
1. The performance
of the Chairperson of the
Board of Directors was
assessed as part of the
procedure for evaluating
the Board of Directors’
effectiveness during
the reporting period.
observed
partially
observed
not observed
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2.5.3
Corporate governance
principles
The Chairperson of the
Board of Directors shall
take the necessary
measures to provide
members of the Board
of Directors with
information necessary
for making decisions
on issues of the agenda
in a timely manner.
Corporate governance
principle compliance
criteria
1. The duty of the
Chairperson of the Board
of Directors, which
is to ensure all Board
members are provided
with relevant information
on the meeting’s agenda
in a timely manner, is set
out in the Company’s
internal documents.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
2.6
Members of the Board of directors act in good faith and reasonably in the interests of the Company
and its shareholders on the basis of sufficient knowledge with due diligence and discretion.
2.6.1 Members of the Board
of Directors make deci-
sions taking into account
all available information,
in the absence of a con-
flict of interest, based
on equal treatment
of shareholders of the
Company, within the
framework of ordinary
business risk.
observed
partially
observed
not observed
1. Internal documents
of the Company establish
that a member of the
Board of Directors
is obliged to notify the
Board of Directors
if he or she has a conflict
of interest in relation
to any item on the meet-
ing agenda of the Board
of Directors or a Board
committee, prior to the
discussion of the relevant
agenda item.
2. The Company’s inter-
nal documents stipulate
that a member of the
Board of Directors shall
refrain from voting on any
item where he or she has
a conflict of interest.
3. The Company has
established a procedure
that allows the Board
of Directors to receive
professional advice
on matters within
its competence at the
expense of the Company.
2.6.2
The rights and obligations
of the members of the
Board of Directors are
clearly stated and en-
shrined in the Company’s
internal documents.
1. The Company adopted
and published an internal
document that clearly
defines the rights and
obligations of members
of the Board of Directors.
observed
partially
observed
not observed
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
observed
partially
observed
not observed
Corporate governance
principles
2.6.3 Members of the Board
of Directors have suffi-
cient time to carry out
their duties.
2.6.4 All members of the Board
of Directors have equal
access to documents
and information of the
Company. Newly elected
members of the Board
of Directors shall be
provided with sufficient
information on the
Company and the work
of the Board of Directors
as soon as possible.
2.6.4
Corporate governance
principle compliance
criteria
1. Individual attendance
at meetings of the Board
of Directors and commit-
tees, as well as time spent
in preparation for partici-
pation in meetings, was
taken into account as part
of the Board of Directors’
assessment procedure,
during the reporting period.
2. In accordance with
internal documents
of the Company, members
of the Board of Directors
are obliged to notify the
Board of Directors of their
intention to join the man-
agement bodies of other
organisations (in addition
to controlled and affiliated
organisations of the Com-
pany), as well as of the
fact of such appointment.
1. In accordance with
internal documents
of the Company, members
of the Board of Directors
have the right to access
documents and make
inquiries concerning
the Company and its
controlled organisations,
and executive bodies
of the Company are
obliged to provide
relevant information
and documents.
2. The Company has
a formalised programme
of orientation events for
newly elected members
of the Board of Directors.
2.7
Meetings of the Board of directors, preparation for them and participation of members of the Board of directors
ensure the effective functioning of the Board of directors.
2.7.1 Meetings of the Board
of Directors are held
as necessary, taking
into account the scope
of activities and the
Company’s objectives
in a certain period of
time.
1. The Board of Directors
held at least six meetings
during the reporting
period.
observed
partially
observed
not observed
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2.7.2
Corporate governance
principles
The internal documents
of the Company establish
the procedure for prepar-
ing and holding meetings
of the Board of Directors,
providing the members
of the Board of Directors
with the opportunity
to prepare for a meeting
properly.
2.7.3
The format of the meeting
of the Board of Directors
is determined with re-
gards to the importance
of the agenda. Most im-
portant issues shall be re-
solved face-to-face.
2.7.4 Decisions on the most
important issues related
to the Company’s
business shall be made
at a meeting of the Board
of Directors by a qualified
majority vote or by a
majority vote of all
elected Board members.
Corporate governance
principle compliance
criteria
1. The Company ap-
proved an internal docu-
ment defining the proce-
dure of preparation
or and holding meetings
of the Board of Directors,
which, also establishes
that the notice of holding
the meeting shall be sent,
as a rule, at least 5 days
in advance.
1. The Company’s Arti-
cles of Association or in-
ternal document provide
that the most important
items (according to the
list in Recommendation
168 of the Code) shall
be considered at Board
meetings held in person.
The Company’s Articles
of Association provides
that decisions on the most
critical issues outlined
in Recommendation 170
of the Code shall be made
at a meeting of the Board
of Directors by a qualified
majority of at least three
quarters of votes or by
a majority of votes of all
elected members of the
Board of Directors.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
Corporate governance
principles
Corporate governance
principle compliance
criteria
2.7.4
observed
partially
observed
not observed
observed
partially
observed
not observed
observed
partially
observed
not observed
1. partially
not observed.
The Company’s Articles
of Association provides
that decisions on the most
critical issues outlined
in Recommendation 170
of the Code shall be re-
solved at a meeting
of the Board of Directors
by a qualified majority
of at least three quarters
of votes or by a majority
of votes of all elected
members of the Board
of Directors.
In accordance with para-
graph 18.6 of the Charter,
decisions at a meeting
of the Company’s Board
of Directors shall be made
by a majority vote of the
members of the Board
of Directors participating
in the meeting, except
for cases as required
by the law of the Russian
Federation or the present
Articles of Association.
Paragraph 18.8 of the
Company’s Articles
of Association specifies
the list of items to be re-
solved by a two-thirds
majority of votes of the
Board members participat-
ing in the meeting.
In particular, the list includes
the items, stipulated
by paragraph 4
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
and paragraph 8 of Recom-
mendation 170 of the Code:
approval of the Compa-
ny’s material transactions
and consideration
of material items relating
to activities of any legal
entities controlled by the
Company.
In addition, in accordance
with the Articles of Asso-
ciation, decisions are
made by a two-thirds ma-
jority votes of the Board
of Directors by the mem-
bers participating in the
meeting on the Compa-
ny’s participation in other
organisations and credit
policy setting.
In 2019, amendments
were made into the Cor-
porate Governance Code
of PJSC FGC UES
(Minutes of the Board
of Directors No. 444
of 25 April 2019) which
provide that in cases spec-
ified by the Company’s
Articles of Association, de-
cisions on the most critical
issues of the Company’s
activities shall be resolved
at a meeting of the Board
of Directors by a qualified
majority or a majority
of votes of all elected
members of the Board
of Directors.
The risks associated with
incomplete implementation
of the recommendations
of the Code are offset
by the traditionally high
attendance of meetings
by Board members,
as well as the decision-
making procedures
adopted by the Compa-
ny: decisions made
by the Board of Directors
shall be based on the
consensus of all Board
members, and key deci-
sions shall be worked out
within the scope of the
work of the Committees
of the Board of Directors.
The Company does not
currently plan to amend
its Articles of Association.
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Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
The Board of directors establishes committees for preliminary consideration of the most important issues
of the Company’s activities.
2.8
2.8.1
For the purpose of pre-
liminary consideration of
any matters relating to
oversight of the Compa-
ny’s business, it is
recommended to estab-
lish
an Audit Committee com-
posed of independent
directors.
2.8.2
For the purpose
of preliminary consider-
ation of matters related
to the development
of efficient and transpar-
ent remuneration practic-
es, it is recommended
to establish a Remunera-
tion Committee composed
of independent directors
and chaired by an inde-
pendent director who shall
not be the Board Chair-
person.
observed
partially
observed
not observed
observed
partially
observed
not observed
1. The Board of Directors
established an Audit Com-
mittee composed of
independent directors only.
2. The Company’s inter-
nal documents determine
the objectives for the Au-
dit Committee, including
those set out by Recom-
mendation 172 of the
Code.
3. At least one Audit Com-
mittee member, who is an
independent director, has
an experience and knowl-
edge in preparing,
analysing, evaluating,
and auditing accounting
(financial) statements.
4. The Audit Committee
meetings were held
at least quarterly during
the reporting period.
1. The Board of Directors
established a Remunera-
tion Committee com-
posed entirely of indepen-
dent directors.
2. The Remuneration
Committee is chaired
by an independent
director who is not the
Chairperson of the Board
of Directors.
3. The Company’s
internal documents
determine the objectives
for the Remuneration
Committee, including
those set out by
Recommendation 180
of the Code.
2.8.3
2.8.4
2.8.5
Corporate governance
principles
For the purpose of pre-
liminary consideration
of matters relating to HR
planning (succession
planning), professional
composition and efficien-
cy of the Board of Direc-
tors, it is recommended
to establish a nomination
committee (nominations,
HR) with the majority
of its members being
independent directors.
Taking into account
the scope of activities and
the level of risk of the Com-
pany, the Board of Directors
is satisfied that the composi-
tion of its committees fully
meets the objectives of the
Company’s activities. Addi-
tional committees have ei-
ther been formed or have
not been deemed neces-
sary (strategy committee,
corporate governance com-
mittee, ethics committee,
risk management commit-
tee, budget, health, safety
and environment commit-
tee, etc.).
The composition of the
committees shall be de-
termined in such a way
that it would allow a com-
prehensive discussion
of considered issues
on a preliminary basis
with due account
of the variety of opinions.
Corporate governance
principle compliance
criteria
1. The Board of Directors
established a Nomination
Committee (or its objec-
tives, set out in Recom-
mendation 186 of the
Code, are delivered
by another committee),
and the majority of its
members are indepen-
dent directors.
2. The Company’s inter-
nal documents determine
the objectives for the
Nomination Committee
(or another committee
with the relevant func-
tions), including those
set out by Recommenda-
tion 186 of the Code.
1. During the reporting
period, the Board of Di-
rectors of the Company
considered the issue
of suitability of the com-
position of its committees
for the tasks of the Board
of Directors and the ob-
jectives of the Company’s
activities. Additional com-
mittees were either estab-
lished or were not recog-
nised as necessary.
1. Committees of the
Board of Directors are
headed by independent
directors.
2. Internal documents
(policies) of the Company
stipulate provisions, ac-
cording to which non-
members of the Audit
Committee, Nominations
Committee and Remu-
neration Committee may
attend committee meet-
ings only at the invitation
of the Chairperson of the
concerned committee.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
observed
partially
observed
not observed
observed
partially
observed
not observed
1. partially
not observed.
Three of the four commit-
tees — Human Resources
and Remuneration, Audit
and Investment Commit-
tees — are chaired
by independent directors.
The Strategy Committee
is chaired by a member
of the Board of Directors
who is not an indepen-
dent director — Pavel
Snikkars, Director of the
Energy Development
Department of the Ministry
of Energy of Russia.
PJSC FGC UES is a com-
pany with tariff regulation
and with state participa-
tion, included in the list
of strategic organisations
of Russia, is a subject
of natural monopoly.
342
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PJSC FGC UES
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343
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Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
2.8.5
2.8.6
2.9
2.9.1
Thus, in view of the com-
petence of the Strategy
Committee, it is reasonable
to elect a representative
of the sectoral ministry
as its Chairperson.
According to the Regula-
tions on the above
Committees, taking into
account certain resolu-
tions of the Government
of the Russian Federa-
tion, these Committees
are composed mainly
of individuals who are not
members of the Board
of Directors and provide
an independent and thor-
ough discussion of issues
and the development
of preliminary recommen-
dations to the Board
of Directors. Therefore,
the risks associated
with the incomplete
implementation of this
recommendation of the
Code have not been
identified.
2. Observed.
The Chairpersons of the
committees shall inform
the Board of Directors
and its Chairperson
of the work of their
committees on a regular
basis.
1. During the reporting
period, the Chairpersons
of the Committees report-
ed on the Committees’
work to the Board
of Directors on a regular
basis.
observed
partially
observed
not observed
The Board of directors shall ensure evaluation of its own performance, and that of its Committees
and members of the Board.
The Board of Directors’
performance evaluation
shall be aimed at deter-
mining how efficiently
the Board of Directors,
its Committees and Board
members work and
whether their work meets
the Company’s needs, as
well as at making their
work more active and
identifying areas for im-
provement.
observed
partially
observed
not observed
1. The self-evaluation
or external evaluation
of the Board of Directors
performance conducted
during the reporting peri-
od included the perfor-
mance evaluation of the
committees, individual
directors and the Board
as a whole.
2. The results of the self-
evaluation or external
evaluation of the Board
of Directors performance,
conducted in the report-
ing period, were consid-
ered at the Board meet-
ing held in praesentia.
1. Observed.
2. partially observed.
The results of the perfor-
mance evaluation of the
Board of Directors conduct-
ed during the reporting
period were considered
at the meeting of the Board
of Directors on 29 May
2018, with voting held
in absentia (Minutes
No. 459 of 18 July 2019).
The internal document
of the Company — the
Regulation on Conducting
an Assessment of the
Activities of the Board
of Directors of PJSC FGC
UES, approved by the
Corporate governance
principles
Corporate governance
principle compliance
criteria
2.9.1
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
decision of the Board
of Directors.
(Minutes No. 355
of 20 February 2017) —
provides that the results
of the evaluation shall be
considered at the meeting
of the Board of Directors
held in praesentia.
The decision on the form
of holding a meeting
of the Board of Directors
shall be made by the
Chairperson of the Board
of Directors in compliance
with the Regulations
on the Board of Directors.
When assessing the ef-
fectiveness of the Board
of Directors in 2020
following 2019, the Com-
pany plans to consider
the results of the evalua-
tion at the meeting of the
Board of Directors.
2.9.2 Performance evaluation
of the Board of Directors,
its Committees and Board
members shall be conduct-
ed on a regular basis,
at least once a year. To
conduct an independent
performance evaluation,
it is recommended to in-
volve an outside party
(consultant) on a regular
basis, at least once every
three years.
1. In order to conduct
an independent assess-
ment of the performance
of the Board of Directors
during the last three re-
porting periods, the Com-
pany invited an outside
organisation (consultant)
at least once.
observed
partially
observed
not observed
3.1
3.1.1
The Company’s Corporate Secretary shall be responsible for efficient shareholder engagement, coordination
of the company’s actions aimed at protecting the shareholder’s rights and interests, and support of efficient
work of the Board of directors.
The Corporate Secretary
has the knowledge, experi-
ence and qualification suf-
ficient to carry out the
duties entrusted to him,
an impeccable reputation
and enjoys the trust of
shareholders.
1. The Company adopted
and disclosed an internal
document — the Regula-
tions on the Corporate
Secretary.
2. The Company’s web-
site and annual report
provide background infor-
mation on the corporate
secretary with the same
level of detail as for mem-
bers of the Board
of Directors and the exec-
utive management of the
Company.
observed
partially
observed
not observed
344
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345
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3.1.2
4.1
4.1.1
4.1.2
Corporate governance
principles
The Corporate Secretary
shall be independent
enough of the Company’s
executive bodies and be
vested with powers and
resources required to
carry out his/her tasks.
Corporate governance
principle compliance
criteria
1.The Board of Directors
approves the
appointment, dismissal
and additional
remunerations of the
corporate secretary.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
The amount of remuneration paid by the Company is sufficient to attract, motivate and retain persons possessing
the necessary expertise and qualifications for the Company. Remuneration to Board of directors members, members
of the executive bodies, and other key managers of the company shall be paid in accordance with a remuneration
policy approved by the Company.
The term “other key
managers of the
Company” is not
applied according
to the Action Plan
(“roadmap”)
on introducing
the Corporate
Governance Code
provisions in the
Company’s prac-
tice approved by
the decision of the
Board of Directors
No. 255 of 12
March 2015.
1. The Company has
adopted internal remuner-
ation document(s) —
remuneration policy
(policies) for Board mem-
bers, executive bodies
and other key managers
that clearly defines the
approaches to the remu-
neration of the above
individuals.
observed
partially
observed
not observed
1. In the reporting period,
the Remuneration Com-
mittee reviewed the
remuneration policy
(policies) and the practice
of its (their) implementa-
tion and, if necessary,
submitted the relevant
recommendations
to the Board of Directors.
observed
partially
observed
not observed
The amount of remunera-
tion paid by the Company
to its Board members,
executive bodies, and
other key managers shall
be sufficient to motivate
them to work efficiently
and enable the Company
to attract and retain com-
petent and qualified
professionals. At the
same time, the Company
avoids a higher level of re-
muneration than
necessary,
as well as an unjustifiably
large gap between remu-
neration levels of the said
persons and employees
of the Company.
The Company’s remuner-
ation policy shall be
developed by its Remu-
neration Committee and
approved by the Board
of Directors. With the assis-
tance of its Remuneration
Committee, the Board
of Directors shall monitor
the implementation of and
compliance with the remu-
neration policy in the
Company and also review
and amend it, if neces-
sary.
Corporate governance
principle compliance
criteria
1. The policy (policies)
of the Company on remu-
neration contains
transparent mechanisms
for determining the amount
of remuneration due
to members of the Board
of Directors, executive
bodies and other key
management bodies em-
ployees of the Company,
and also regulates
all types of payments,
benefits and privileges
granted to these persons.
1. The Company’s remu-
neration policies (policy)
or other internal docu-
ments establish(es)
the rules on the reim-
bursement of expenses
to members of the Board
of Directors, executive
bodies and other key
managers of the Company.
4.1.3
4.1.4
Corporate governance
principles
The Company’s remuner-
ation policy contains
transparent mechanisms
used to determine the
amount of remuneration
due to Board members,
the executive bodies,
and other key managers
of the Company, as well
as to regulate all types
of payments, benefits,
and privileges provided
to any of the above indi-
viduals.
The Company is recom-
mended to develop
a policy regarding reim-
bursement of expenses
(compensation), which
would contain a list of re-
imbursable expenses
and specify service levels
provided to Board mem-
bers, the executive
bodies, and other key
managers of the Compa-
ny. Such a policy may be
an integral part of the
Company’s remuneration
policy.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
observed
partially
observed
not observed
observed
partially
observed
not observed
Comments
The term «other key
managers of the
Company» is not
applied according
to the Action Plan
(«roadmap»)
on introducing
the Corporate
Governance Code
provisions in the
Company’s practice
approved by the
decision of the
Board of Directors
No. 255 of 12
March 2015.
The term “other
key managers
of the Company”
is not applied ac-
cording to the Action
Plan (“roadmap”) on
introducing
the Corporate Gov-
ernance Code
provisions in the
Company’s prac-
tice approved by
the decision of the
Board of Directors
No. 255 of 12
March 2015.
4.2
The remuneration system of Board members shall ensure aligning of the directors’ financial interests
with the long-term financial interests of shareholders.
4.2.1 A fixed annual remunera-
tion shall be paid to the
Board members by the
Company. The Company
doesn’t pay remuneration
for participation in certain
Board of Directors’ or its
committees’ meetings.
The Company doesn’t
use any form of short-
term incentives and
additional financial incen-
tives with regard to Board
members.
1. Fixed annual remuner-
ation was the only mon-
etary form of remunera-
tion of Board members
for serving on the Board
of Directors during the
reporting period.
observed
partially
observed
not observed
346
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347
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Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Corporate governance
principle compliance
criteria
1. If the Company’s
internal document(s) —
remuneration policy (poli-
cies) provides for granting
shares to Board mem-
bers, clear rules for
holding shares by Board
members, aimed at en-
couraging long-term
ownership of such shares,
shall be available and dis-
closed.
4.2.2
Corporate governance
principles
Long-term ownership
of the Company’s shares
contributes the most
to aligning financial inter-
ests of Board members
with the long-term inter-
ests of the Company’s
shareholders. At the same
time, the Company does
not stipulate the right
to sell shares by achiev-
ing certain performance
indicators, and Board
members do not partici-
pate in option
programmes.
4.2.3
The Company does not
have any additional remu-
neration or compensation
in case of the early termi-
nation of Board members
in connection with a take-
over of the Company
or in other circumstances.
1. The Company does not
have any additional remu-
neration or reimbursement
in case of the early termi-
nation of Board members
in connection with a take-
over of the Company
or in other circumstances.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
This criterion is not applicable because the Com-
pany’s remuneration policy(-ies) or internal
document(s) does not provide for granting
the Company’s shares to Board members.
observed
partially
observed
not observed
observed
partially
observed
not observed
4.3
The remuneration system for members of the executive bodies and other key managers of the Company provides
for the dependence of remuneration on the Company’s performance results and their personal contributions
to the achievement thereof.
4.3.1 Remuneration due
to members of the execu-
tive bodies and other key
managers of the Compa-
ny shall be set in such
a way as to ensure a rea-
sonable and justified ratio
between its fixed variable
portions that is depen-
dent on the Company’s
performance results and
employees’ personal
(individual) contribution
to the achievement
thereof.
observed
partially
observed
not observed
1. During the reporting
period, the annual
performance indicators
approved by the Board
of Directors were used
to determine the amount
of variable remuneration
of members of executive
bodies and other key man-
agers of the Company.
2. During the most recent
evaluation of the remu-
neration system for
members of the executive
bodies and other key
managers, the Board
of Directors (the Remu-
neration Committee)
made sure the Company
applied an efficient ratio
of the fixed portion of re-
muneration to the
variable portion.
3. The Company has
a procedure for repaying
bonuses unlawfully ob-
tained by members of the
executive bodies and oth-
er key managers.
The remuneration
system for mem-
bers of the
Company’s execu-
tive bodies
is based on the
achievement
of the approved tar-
get values of key
performance indica-
tors (KPIs).
The Board of Direc-
tors reviews the
results of the target
achievement, and
payment of remu-
neration according
to the results
achieved is possible
only upon the deci-
sion made by the
Board of Directors
to approve the rele-
vant report.
Thus, the possibility
to get remuneration
unlawfully is elimi-
nated.
4.3.2
Corporate governance
principles
The Company has put
in place a long-term in-
centive programme for
members of the Compa-
ny’s executive bodies
and other key managers
involving the Company’s
shares (options or other
derivative financial instru-
ments the underlying
assets for which are
the Company’s shares).
Corporate governance
principle compliance
criteria
1. The Company has
put in place a long-term
incentive programme
for members of the Com-
pany’s executive bodies
and other key managers
involving the Company’s
shares (financial instru-
ments based on the
Company’s shares).
2. The long-term incen-
tive programme for
members of the Compa-
ny’s executive bodies and
other key managers im-
plies that the right to sell
shares and other financial
instruments used under
such programme will not
arise earlier than three
years after their provi-
sion. The said right shall
be made conditional
on the achievement
of certain targets
by the Company.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
1. not observed.
2. not observed.
The Company does not
have a long-term incentive
programme for members
of its executive bodies
involving the Company’s
shares (financial instru-
ments based on the
Company’s shares).
At the same time, the Com-
pany uses other tools
to motivate its manage-
ment based on achieving
KPIs established by the
Board of Directors. It should
be noted that achieving
a number of indices affects
the increase in capitalisa-
tion and long-term growth
of the Company’s share-
holder value.
The Company is consid-
ering the possibility
of introducing a long-term
incentive programme
for members of its execu-
tive bodies involving
Company’s shares
(financial instruments
based on Company’s
shares) based on market
conditions, state regulation
and the policy of PJSC
Rosseti regarding this
issue.
4.3.3
The amount of reim-
bursement (a so-called
“golden parachute”) pay-
able
by the Company in the
event of early termination
of a member of an execu-
tive body or other key
manager at the initiative
of the Company, provided
that there have been
no unfair practices on the
part of such person, shall
not exceed two times
the fixed portion of his/her
annual remuneration.
1. The amount of reim-
bursement (“golden
parachute”) paid by the
Company in the event
of early termination of
a member of an executive
body or other key manag-
ers at the initiative of the
Company, provided that
there have been no unfair
practices on the part
of such person, did not
exceed two times the
fixed portion of his/her
annual remuneration
in the reporting period.
observed
partially
observed
not observed
348
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Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
The Company has a sound risk management and internal control system aimed at providing reasonable assurance
that the Company’s goals will be achieved.
5.1
5.1.1
The Board of Directors
shall determine principles
of and approaches
to the establishment
of the Company’s risk
management and internal
control system.
5.1.2
The Company’s executive
bodies shall create and
maintain an efficient risk
management and internal
control system in the
Company.
5.1.3
5.1.4
The Company’s risk man-
agement and internal
control system shall
enable one to obtain
an objective, fair and
clear view of the current
position and prospects
of the Company, integrity
and transparency of its
accounts and reports,
and reasonableness
and acceptability of risks
taken by the Company.
The Board of Directors
shall take sufficient mea-
sures to ensure that the
existing risk management
and internal control sys-
tem of the Company
is consistent with the
principles of and ap-
proaches to its creation
as set forth by the Board
of Directors and that it
operates efficiently.
1. Functions of various
governing bodies
and business units at the
Company in the risk man-
agement and internal
control system are clearly
defined in the Company’s
internal documents/rele-
vant policy approved
by the Board of Directors.
1. The Company’s execu-
tive bodies ensured the
distribution of functions
and powers related to risk
management and internal
control among managers
(heads) of business units
and divisions accountable
thereto.
observed
partially
observed
not observed
observed
partially
observed
not observed
1. The Company has ap-
proved an anti-corruption
policy.
observed
2. The Company has
organised an affordable
method of informing
the Board of Directors
or its Audit Committee
of any violations of legisla-
tion, internal procedures
and the Ethics Code
of the Company.
1. In the reporting year,
the Board of Directors
or the Audit Committee
evaluated the efficiency
of the Company’s risk
management and internal
control system. Informa-
tion on the key findings
of such evaluation is in-
cluded in the Company’s
annual report.
partially
observed
not observed
observed
partially
observed
not observed
5.2
5.2.1
5.2.2
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
For regular independent review of reliability and effectiveness of the risk management and internal control
system and corporate governance practices, the Company arranges for internal audits.
Internal audits are carried
out by a separate struc-
tural unit created by the
Company or through
engaging an independent
outside party. The inter-
nal audit department shall
have separate lines
of functional and adminis-
trative reporting. Func-
tionally, the internal
audit department reports
to the Board of Directors.
The Internal Audit Depart-
ment evaluates effective-
ness of the internal con-
trol system and the risk
management system,
as well as the corporate
governance system.
The Company applies
generally accepted stan-
dards of internal auditing.
1. To perform internal
audits, the Company
has established a sepa-
rate structural unit that
performs internal audits
and reports functionally
to the Board of Directors,
or has engaged an inde-
pendent outside organisa-
tion subject to the same
reporting principle.
observed
partially
observed
not observed
1. During the reporting
period, as part of an inter-
nal audit, the effective-
ness of the internal con-
trol and risk management
system was reviewed.
2. The Company applies
the generally accepted
approaches to internal
control and risk manage-
ment.
observed
partially
observed
not observed
6.1
The Company and its activities shall be transparent for its shareholders, investors and other stakeholders.
6.1.1
The Company has devel-
oped and implemented
an information policy
enabling the Company
to efficiently exchange
information with its share-
holders, investors and
other stakeholders.
1. The Company’s Board
of Directors has approved
an information policy de-
veloped in compliance
with the Corporate Gov-
ernance Code recom-
mendations.
2. The Board of Directors
(or one of its committees)
considered matters relat-
ed to the Company’s
compliance with its infor-
mation policy at least
once during the reporting
period.
observed
partially
observed
not observed
350
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
351
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
6.1.2
The Company shall dis-
close information on its
corporate governance
system and practices, in-
cluding detailed informa-
tion on compliance with
the principles and recom-
mendations of the Code.
1. The Company disclos-
es information on its cor-
porate governance sys-
tem and the general
corporate governance
principles applied there-
by, including on its corpo-
rate website.
observed
partially
observed
6.2.2
Corporate governance
principles
The Company is advised
against using a formalis-
tic approach to informa-
tion disclosure; it shall
disclose material informa-
tion on its activities, even
if disclosure of such infor-
mation is not required
by law.
not observed
2. The Company disclos-
es information on the
composition of its execu-
tive bodies and the Board
of Directors, the indepen-
dence of Board members
and their membership
in committees of the Board
of Directors (as defined
in the Code).
3. If there is a person who
controls the Company,
the Company discloses
a memorandum from the
controlling person con-
cerning the said person’s
plans for corporate gover-
nance in the Company.
6.2
The Company shall disclose, on a timely basis, full, updated and reliable information about itself so as to enable
its shareholders and investors to make informed decisions.
The Company pro-
vides disclosures
in accordance with
the requirements
of the Financial
Services Authority
of the UK.
Disclosure of infor-
mation that the
Company consid-
ers significant in
the Russian Feder-
ation and in the UK
is synchronous
and equivalent.
6.2.1
The Company shall dis-
close information in ac-
cordance with the princi-
ples of regularity,
consistency and timeli-
ness, as well as accessi-
bility, reliability, complete-
ness and comparability
of data disclosed.
observed
partially
observed
not observed
1. The Company’s infor-
mation policy determines
the approaches to, and
criteria for, determining
information that could
have a significant influ-
ence on the Company’s
value and its securities,
and the procedures that
ensure the timely disclo-
sure of such information.
2. If the Company’s secu-
rities are traded in foreign
markets, equivalent mate-
rial information shall be
disclosed in the Russian
Federation and in such
markets simultaneously
in the reporting period.
3. If foreign investors
hold a material share
in the Company’s capital,
the Company shall dis-
close information in Rus-
sian and in a commonly
used foreign language
in the reporting period.
Corporate governance
principle compliance
criteria
1. In the reporting period,
the Company disclosed
annual and interim IFRS
financial statements.
The Company’s annual
report for the reporting
period includes the annu-
al IFRS financial state-
ments with the auditor’s
statement.
2. The Company shall
disclose complete infor-
mation on the Company’s
capital structure, accord-
ing to Recommendation
290 of the Code, in the
annual report and on the
Company’s website.
1. The Company’s annual
report contains the Com-
pany’s operating and
financial highlights.
2. The Company’s annual
report contains information
on environmental and so-
cial aspects of the Compa-
ny’s operations.
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
observed
partially
observed
not observed
observed
partially
observed
not observed
The Company shall provide information and documents requested by its shareholders in accordance with the
principle of equal and easy access.
6.2.3
6.3
6.3.1
The Company’s annual re-
port, being one of the most
important tools for com-
munication with sharehold-
ers and other stakehold-
ers, shall contain
information enabling one
to evaluate the Company’s
performance for the year.
The exercise by the
shareholders of their right
to access the Company’s
documents and informa-
tion should not be unrea-
sonably burdensome.
6.3.2 When providing informa-
tion to its shareholders,
the Company shall main-
tain a reasonable balance
between the interests
of individual shareholders
and its own interests re-
lated to the fact that the
Company is interested
in keeping confidentiality
of sensitive business
information that might
have a material impact
on its competitiveness.
1. The Company’s infor-
mation policy specifies
an easy procedure for pro-
viding access to share-
holders to information,
including information
on the legal entities con-
trolled by the Company,
upon the request
of a shareholder.
1. In the reporting period,
the Company did not
deny shareholders’
requests for information,
or such denials were
justified.
2. In cases specified in the
Company’s information
policy, shareholders are
informed of the confidential
nature of information and
undertake to keep it confi-
dential.
observed
partially
observed
not observed
observed
partially
observed
not observed
352
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
353
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
7.1
Any actions which have or may have a material effect on the Company’s share capital structure and its financial
position and, accordingly, on the position of its shareholders (material corporate actions) shall be taken on fair
terms and conditions ensuring that the rights and interests of shareholders as well as other stakeholders are
observed.
observed
partially
observed
not observed
7.1.1 Material corporate ac-
tions shall be deemed to
include reorganisation of
the Company, acquisition
of 30 or more percent of
its voting shares (take-
over), entering by the
Company into any mate-
rial transactions, increas-
ing or decreasing its au-
thorised capital, listing
and delisting of its
shares, as well as other
actions which might result
in significant changes in
rights of its shareholders
or violation of their inter-
ests. The Company’s Ar-
ticles of Association shall
determine the list of (cri-
teria
for identifying) transac-
tions or other actions fall-
ing within the category
of material corporate
actions and provide
therein that decisions
on any such actions shall
fall within the matters
reserved for the Compa-
ny’s Board of Directors.
1. The Company’s Arti-
cles of Association speci-
fy a list of actions and
other efforts that consti-
tute material corporate
actions, and their deter-
mination criteria. Deci-
sion-making on material
corporate actions falls
within the remit of the
Board of Directors.
Where the taking of these
corporate actions is di-
rectly referred by law
to the remit of the Gener-
al Meeting of Sharehold-
ers, the Board of Direc-
tors makes the relevant
recommendations
to shareholders.
2. The Company’s Arti-
cles of Association clas-
sify at least the following
as material corporate ac-
tions: reorganisation of
the Company, acquisition
of 30 or more percent
of its voting shares (take-
over), entering into mate-
rial transactions, increase
or decrease of its autho-
rised capital, listing and
delisting of the Compa-
ny’s shares.
1. partially
not observed.
2. partially
not observed.
The Company’s Articles
of Association do not give
a definition of material
corporate actions.
However, decision-making
on issues related to the
material actions specified
in Recommendation 303
of the Code (for example:
reorganisation of the Com-
pany, increasing or de-
creasing its authorised
capital, decision making
on the Company’s partici-
pation in other organisa-
tions, decision making
on application for delisting
of the Company’s shares
and (or) equity securities
convertible into its shares,
decision making on ap-
proval or subsequent ap-
proval of major transac-
tions, approval of other
transactions of the Compa-
ny and its controlled enti-
ties) in accordance with
the current legislation and
the Articles of Association
of the Company falls within
the remit of the Board
of Directors or the General
Meeting of Shareholders.
When submitting any mat-
ters to the shareholders’
meeting, including material
corporate actions, the
Board of Directors provides
shareholders with appropri-
ate recommendations.
In addition, taking into
account the inclusion
of PJSC FGC UES in a spe-
cial list approved by Order
of the Government
of the Russian Federation
No. 91-r of 23 January
2003, as well as the list
of strategic organisations
approved by Decree of the
President of the Russian
Federation No. 1009
of 4 August 2004, the most
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
important material corpo-
rate actions are commit-
ted by the Company
in accordance with the
directives of the Govern-
ment of the Russian Fed-
eration, and certain issues
(for example, related
to changes in the Compa-
ny’s authorised capital)
are resolved in accor-
dance with the Decrees
of the President of the
Russian Federation.
7.1.1
7.1.2
The Board of Directors
shall play a key role
in making decisions
or developing recommen-
dations related to material
corporate actions; for that
purpose, it shall rely
on opinions of the Com-
pany’s independent direc-
tors.
1. The Company has
a procedure whereby
independent directors
declare their position
on material corporate
actions prior to their
approval.
1. The Company’s Arti-
cles of Association, tak-
ing into account the par-
ticular features of its
business, established
lower minimum criteria
for classifying the Com-
pany’s transactions
as material corporate
actions than stipulated
by law.
2. During the reporting
period all material corpo-
rate actions were ap-
proved prior to their
implementation.
7.1.3 When taking any material
corporate actions which
would affect rights or legit-
imate interests of the
Company’s shareholders,
equal terms and condi-
tions shall be ensured for
all of shareholders; if stat-
utory mechanisms
designed to protect the
shareholder rights prove
to be insufficient for that
purpose, additional mea-
sures shall be taken with
a view to protecting the
rights and legitimate inter-
ests of the Company’s
shareholders. In such
instances, the Company
shall not only seek to
comply with the legal re-
quirements but shall also
be guided by the princi-
ples
of corporate governance
set out in the Code.
observed
partially
observed
not observed
observed
partially
observed
not observed
354
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
355
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Appendix 2.
[ RepORT On COMpLiAnCe WiTH pRinCipLeS And ReCOMMendATiOnS OF THe CORpORATe GOVeRnAnCe COde ]
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
Corporate governance
principles
Corporate governance
principle compliance
criteria
Status
of compliance
with corporate
governance
principle
Explanations
of deviation from
corporate governance
principles compliance
criteria
Comments
7.2
7.2.1
The Company shall have in place such a procedure for taking any material corporate actions that would enable
its shareholders to receive full information on such actions in time and influence them, and that would also
guarantee that the shareholder’s rights are observed and duly protected in the course of taking such actions.
7.2.2
Information on material
corporate actions shall
be disclosed with expla-
nations concerning rea-
sons for, conditions and
consequences of such
actions.
1. In the reporting period,
the Company disclosed
information on the Com-
pany’s material corpo-
rate actions in a timely
manner and in detail,
including the reasons
and time frame for taking
such actions.
observed
partially
observed
not observed
7.2.2 Rules and procedures in
relation to material corpo-
rate actions taken by the
Company shall be set out
in its internal documents.
observed
partially
observed
not observed
1. The Company’s inter-
nal documents provide
for the procedure for en-
gaging an independent
appraiser when deter-
mining the value
of property to be ac-
quired or disposed
of under a major trans-
action or a related-party
transaction.
2. The Company’s
internal documents
provide for the procedure
for engaging an
independent appraiser
for determining a price
of the Company’s shares,
repurchased or redeemed.
3. The Company’s internal
documents do not provide
for an extended list
of grounds on which
members of the Board
of Directors, as well
as other persons referred
to in the legislation, are
deemed to be interested
in the Company’s
transactions.
1. Observed.
2. Observed.
3. not observed.
The Company’s internal
documents do not provide
for an extended list of
grounds on which mem-
bers of the Board of Di-
rectors, as well as other
persons referred to in the
legislation, are deemed
to be interested in the
Company’s transactions.
Given the special aspects
of activities of the holding
structure of PJSC Rosseti,
which includes PJSC
FGC UES, transactions
with legal entities con-
trolled by PJSC FGC UES
and transactions with con-
trolling entity of PJSC
FGC UES, PJSC Rosseti,
and other entities con-
trolled by PJSC Rosseti
are deemed to be related-
party transactions.
Currently, the legislation is
moving along the path of
simplifying the related-par-
ty transactions procedure,
and reducing their total
number. Thus, Federal
Law No. 343-FZ of 3 July
2016, from 1 January
2017, introduced a new
related-party transactions
procedure through notifica-
tion to members of man-
agement bodies, and also
expanded the list of trans-
actions that are not recog-
nised as related-party
transactions, including
transactions with a price
threshold, before which
the transactions can be
made without corporate
procedures provided by
Chapter XI of Federal
Law No. 208-FZ On
Joint-Stock Companies,
dated 26 December
1995.
The expansion of grounds
on which members of the
Board of Directors and
other persons referred
to in the legislation are
deemed to be interested
in the Company’s transac-
tions could hinder the
activities of the Company
due to the increase in the
number of related-party
transactions.
Based on the above,
the Company does
not see the need to ex-
pand the list of grounds
on which members
of the Board of Directors
of the Company
and other persons stipu-
lated by the legislation
are deemed to be inter-
ested in the Company’s
transactions.
356
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
357
Appendix 3.
[ inFORMATiOn On THe TRAnSACTiOnS enTeRed inTO BY pJSC FGC UeS And iTS COnTROLLed enTiTieS ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 3.
information on the transactions entered
into by pJSC FGC UeS and its controlled entities
Appendix 4.
information on the actual performance of instructions
of the president and the Russian Government in 2019
1.1. information on pJSC FGC UeS’ transactions in 2019,
recognised as major transactions according to Russian legislation
In 2019, the Company entered into no transactions recognised as major transactions in accordance with the Federal Law On Joint
Stock Companies or any other transactions to which the major transaction approval procedure applies pursuant to PJSC FGC UES’s
Articles of Association.
1.2. information on pJSC FGC UeS’ transactions in 2019, recognised
as related party transactions according to Russian legislation
Information on the transactions entered into by PJSC FGC UES in 2019, recognised as related party transactions in accordance with the
Federal Law On Joint Stock Companies, is specified in the PJSC FGC UES Report on Related Party Transactions in 20191, published
on the Issuer’s web page in the Company card in the Documentation/Other Files section at:
http://www.e-disclosure.ru/portal/files.aspx?id=379&type=10;
on the Company’s website in the Investors/Disclosure/Information on Transactions Entered Into by PJSC FGC UES and Its Controlled
Entities section at:
https://www.fsk-ees.ru/shareholders_and_investors/disclosure_of_information/svedeniya_o_sushchestvennykh_sdelkakh/.
At the same time, the Company has not entered into any transactions (groups of interrelated transactions), recognised as related
party transactions in accordance with the Federal Law On Joint Stock Companies, in the amount of 2 or more percent of the book
value of PJSC FGC UES’ assets.
1.3. information on the material transactions entered
into by pJSC FGC UeS and its controlled entities in 2019
Information on the material transactions entered into by PJSC FGC UES and its controlled entities in 2019 is published on the Company’s
website in the Investors/Disclosure/Information on Transactions Entered Into by PJSC FGC UES and Its Controlled Entities section at:
https://www.fsk-ees.ru/shareholders_and_investors/disclosure_of_information/svedeniya_o_sushchestvennykh_sdelkakh/.
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
1.
1.1.
2
3
4
5
diSpOSAL OF nOn-CORe ASSeTS
Decree
of the President
of the Russian
Federation
Instruction
of the Russian
Government
Order of the
Russian
Government
No. 596
of 7 May 2012
(paragraph 4,
subcl. “v”,
cl. 2)
No. ISH-P13-
4065 of 7 July
2016 (cl. 1)
Ensuring the
development
and implemen-
tation of pro-
grammes
for disposal
of non-core
assets
Since 2012, the Company has been carrying out activities to identify
and manage non-core assets. The JSC FGC UES Board (an extract
from Meeting Minutes of the Board of Directors of JSC FGC UES
No. 178 of 16 November 2012) approved the Management Programme
for Non-core Assets of JSC FGC UES (hereinafter, the “Management
Programme for NA”), and the PJSC FGC UES Board (an extract from
Meeting Minutes of the Board of Directors of PJSC FGC UES No. 311
of 14 March 2016) approved the revised Management Programme
for NA.
No. 894-r
of 10 May
2017
Based on Directive of the Russian Government No. 4863p-P13
of 7 July 2016 and the Guidelines on the Identification and Disposal
of Non-Core Assets, developed by the Ministry of Economic Develop-
ment of the Russian Federation in conjunction with the Federal Prop-
erty Management Agency, PJSC FGC UES developed (and updated)
the Programme for Disposal of Non-Core Assets of PJSC FGC UES
and its subsidiaries (hereinafter, the “Programme for Disposal
of NA”), approved by the PJSC FGC UES Board (an extract from
Meeting Minutes of the Board of Directors of PJSC FGC UES
No. 350/12 of 28 December 2016).
Based on Directive of the Russian Government No. 6604p-P13
of 18 September 2017 and the Resolution of the PJSC FGC UES
Board of 22 May 2018 (an extract from Meeting Minutes of the Board
of Directors of PJSC FGC UES No. 404/1 of 25 May 2018), the follow-
ing revised internal documents that regulate the procedure for identify-
ing and selling non-core assets of PJSC FGC UES were approved:
• Programme for Disposal of Non-Core Assets of PJSC FGC UES
and Its Subsidiaries (Programme for Disposal of NA);
• Procedure for Organising Sales of Non-Core Assets of PJSC FGC
UES and Its Subsidiaries.
To improve the efficiency of activities related to the sale of non-core
assets and to develop the Programme for Disposal of NA, the Company
approved:
• Order No. 377 of 5 October 2018 On Approval of the Procedure for Gra-
tuitous Transferring (Giving) Non-Core Assets of PJSC FGC UES to the
Property of Public Law Entities;
• Order No. 555p of 15 November 2018 On Approval of the Methodologi-
cal Recommendations that regulate the procedure for filling in the form
of the Register of Non-Core Assets;
• Order No. 348 of 2 October 2019 On Selection of Persons Responsible
for the Implementation of the Programme for Disposal of Non-Core
Assets of PJSC FGC UES and Its Subsidiaries;
• Order No. 399 of 11 November 2019 On Approval of the Procedure
for Identifying Non-Core Assets of PJSC FGC UES and Preparing Sup-
porting Materials in order to Form and Update the Register of Non-Core
Assets of PJSC FGC UES.
1 Approved by the resolution of the Board of Directors of PJSC FGC UES (Meeting Minutes No.497 of 10 April 2020).
358
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
359
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
3
4
5
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
No.
Instruction
1
2
1.1.
In accordance with the current Programme for Disposal of NA, the Board
of Directors of PJSC FGC UES should:
• approve the updated Register of Non-Core Assets of PJSC FGC UES
at least once a year;
• review quarterly reports on progress and results of the programme im-
plementation.
Information on the sale of non-core assets is quarterly published on the
Interdepartmental Portal for the Management of State Property (Rosi-
mushchestvo); information on the 2019 performance is reflected in full.
Information on the disposal of non-core assets in 2018
is given in Appendix __ herein.
2.
pROCUReMenT OF GOOdS, WORKS And SeRViCeS
2.1.
Instruction
of the President
of the Russian
Federation
No. Pr-2821
of 5 December
2014 (subcl. 4,
5, cl. 1)
Instruction
of the Russian
Government
No. DM-P9-87pr
of 25 November
2013
Instruction
of the Russian
Government
Instruction
of the Russian
Government
No. AD-P9-
9176 of 12 De-
cember
2014
No. ISH-
P13-1419
of 5 March
2015
Step-by-step
substitution
of foreign
products
(works
and services)
with domestic
products
(works and
services)
of similar
specification
and customer
appeal.
PJSC FGC UES’s activities in the field of import substitution are in line
with the Corporate Plan of Import Substitution for 2017–2020
(Order of PJSC FGC UES No. 494 of 28 November 2017).
PJSC FGC UES developed the Corporate Plan of Import Substitution
in accordance with the Methodological Recommendations on preparation
of corporate import substitution plans by state corporations, state compa-
nies and joint-stock companies, the share of the Russian Federation
in which exceeds 50%, and organisations who implement investment projects
included in the register of investment projects in accordance with decision
of the Government Commission on Import Substitution, and approved
Order of the Ministry of Economic Development of the Russian Federation
No. 219R-AU of 11 August 2016, as well as taking into account the Analyti-
cal Report “Assessment of the Potential of Import Substitution, its Main
Directions and the Conditions for Their Implementation in the SDCs
of PJSC Rosseti until 2019”, reviewed by the Management Board
of PJSC Rosseti (Minutes No. 386pr of 14 October 2015).
The goals and objectives of PJSC FGC UES’s Corporate Plan of Import
Substitution are aimed at ensuring technological safety of the power grid
complex of the Russian Federation and reducing dependence on foreign
products, equipment, and technical devices, as well as services/works
and software of non-resident companies.
By the end of 2019, the share of procurement of domestic electrical
equipment in the total volume of PJSC FGC UES’s procurement was 89%
(based on calculations of the average percentage of costs of each
of 20 types of main electrical equipment which is most import-dependent).
Information on the historical dynamics of the relevant
indicator can be found in section “Strategic Report/Re-
sults of Sustainable Development Activities/Procurement
Activities/Import Substitution Programme.
2.2.
Instruction
of the Russian
Government
No. ISH-
P13-1872
of 1 April 2016
Procurement
of domestic
software
necessary
for operations
of joint-stock
companies
with the state
participation
No. 1
of 9 February
2018
Transition
to the prefer-
ential use of
domestic soft-
ware in 2018–
2021
Meeting
Minutes of the
Government
Commission
on the Use
of Information
Technologies
to improve
the quality
of life and busi-
ness environ-
ment
By the Resolution of the Board of Directors of PJSC FGC UES (Minutes
No. 342 of 13 October 2016), amendments were made to the Regula-
tion on Procurement concerning the procurement of domestic competi-
tive software necessary for the Company’s operations.
As part of the implementation, amendments were made to the Regula-
tion on Procurement of Goods, Works and Services for the Needs
of PJSC FGC UES (revision No. 342 of 13 October 2016).
The customer’s right to establish priorities when purchasing Russian
products is stipulated in Section 4.5 of the Unified Procurement Stan-
dard of PJSC FGC UES (Regulation on Procurement) (resolution
of the Board of Directors, Minutes No. 436 of 29 January 2019).
As part of the instruction performance, Letter of PJSC FGC UES
No. FR-5925 of 14 October 2017 was sent to S&A.
Moreover, in accordance with the Regulation on Procurement, informa-
tion on the procurement that was not included in the Software Register
shall be published on the Company’s official site no later than 7 calen-
dar days from the date of publishing of notices and software procure-
ment documentation in the unified procurement information system
(www.zakupki.gov.ru) and on specialised websites.
As part of compliance with the instruction, relevant amendments were
made to the internal documents regulating the procedure for purchas-
ing goods, works and services of the following PJSC FGC UES subsid-
iaries and affiliates, which carry out procurement activities: JSC TsIUS
UES, JSC Mobile GTES, JSC MUS Energetiki, JSC NTC FGC UES,
JSC ChitaTechEnergo, JSC Electrosetservice UNEG, JSC ESSK UES,
IT Energy Service LLC, JSC Kuban Trunk Grids, and JSC Tomsk
Trunk Grids.
As part of compliance and in accordance with Directive of the Russian
Government No. 10068p-P13 of 6 December 2018 (Meeting Minutes
No. 445 of 26 April 2019), on 24 April 2019, the Board of Directors dis-
cussed the transition of PJSC FGC UES to the preferential use of do-
mestic software, and the following resolution was made:
1. Instruct A. Murov, Chairman of the PJSC FGC UES Management
Board, to ensure:
1.1. Preparation and approval of an action plan of PJSC FGC UES
transition to the preferential use of domestic software for
2018–2021(hereinafter, the “Action Plan for 2018–2021”)
by the PJSC FGC UES Board and ICT Competence Centre,
which includes:
• appointing an authorised person who is at least the Deputy Chair-
man of the PJSC FGC UES Management Board, responsible
for activities related to PJSC FGC UES transition to the preferential
use of domestic software;
• deciding on organisational and process measures aimed to facili-
tate PJSC FGC UES transition to the preferential use of domestic
software;
• estimating financial resources with indication of terms, volumes
and sources of financing to facilitate PJSC FGC UES transition
to the preferential use of domestic software;
• setting key performance indicators for the transition to the preferen-
tial use of domestic software.
Term: within 2 months from the date of approval of this resolution.
360
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
361
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
2.2.
1.2. Introduction to PJSC FGC UES’s Long-Term Development Pro-
gramme of measures providing for PJSC FGC UES transition to the
preferential use of domestic software as part of import substitution.
1.3. Provision to the Ministry of Digital Development, Communications and
Mass Media of the Russian Federation of reports on compliance with
Directive of the Russian Government No. 10068p-P13 of 6 December
2018 (hereinafter, the “Directive”) and implementation of the Action
Plan for 2018–2021 in the volume and structure according to the ap-
pendices to the Directive on a quarterly basis and no later than the
10th day of a month following the reporting quarter by publishing them
on the Interdepartmental Portal for the Management of State Property.
1.4. Giving recommendations to the general directors of PJSC FGC
UES subsidiaries, the total share of PJSC FGC UES direct
and (or) indirect participation in which exceeds 50%, and ensuring
that the boards of directors of PJSC FGC UES subsidiaries review
specified in the Directive approaches to the transition to the prefer-
ential use of domestic software.
Pursuant to the PJSC FGC UES Board’s recommendations, on 24 April
2019 (Minutes No. 445, cl.4.2 of 26 April 2019), Letter No. DCh/292/450
of 21 May 2019 was sent to PJSC FGC UES subsidiaries, containing
recommendations on the preparation and review of the action plans
for 2018–2021 in respect of the transition of PJSC FGC UES subsidiar-
ies to the preferential use of domestic software by the boards of directors
of PJSC FGC UES subsidiaries.
As part of compliance with the instruction and cl. 4.2 of the PJSC FGC
UES Board’s resolution, the boards of directors of the following PJSC
FGC UES subsidiaries reviewed issues related to the transition to the
preferential use of domestic software:
1) JSC MUS Energetiki: by the resolution of the Board of Directors
of JSC MUS Energetiki (Minutes No. 07/19 of 27 June 2019),
the General Director of JSC MUS Energetiki was instructed to pre-
pare and approve, in consultation with the Development and Opera-
tion Department of PJSC FGC UES, an action plan for 2018–2021
of JSC MUS Energetiki transition to the preferential use of domestic
software; and by the resolution of the Board of Directors of JSC MUS
Energetiki (Minutes No. 09/19 of 28 August 2019), the action plan
for 2018–2021 of JSC MUS Energetiki transition to the preferential
use of domestic software was approved.
2) JSC TsIUS UES: by the resolution of the Board of Directors of JSC
TsIUS UES (Minutes No. 192 of 10 July 2019), an action plan
for 2019–2021 of JSC TsIUS UES transition to the preferential
use of domestic software was approved.
3) JSC ESSK UES: by the resolution of the Board of Directors of JSC
ESSK UES (Minutes No. 157 of 3 July 2019), an action plan
for 2018–2021 of JSC ESSK UES transition to the preferential use
of domestic software was approved.
4) JSC ChitaTechEnergo: by the resolution of the Board of Directors
of JSC ChitaTechEnergo (Minutes No. 120 of 11 October 2019),
an action plan for 2019–2021 of JSC ChitaTechEnergo transition
to the preferential use of domestic software was approved.
No.
Instruction
1
2
2.2.
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
3
4
5
5) JSC Electrosetservice UNEG: by the resolution of the Board of Di-
rectors of JSC Electrosetservice UNEG (Minutes No. 12 of 19 July
2019), the General Director of JSC Electrosetservice UNEG was in-
structed to organise the development and approval of an action
plan of JSC Electrosetservice UNEG transition to the preferential
use of domestic software in 2019–2021; and by the resolution
of the Board of Directors of JSC Electrosetservice UNEG (Minutes
No. 22 of 20 December 2019), an action plan for 2019–2021 of JSC
Electrosetservice UNEG transition to the preferential use of domestic
software was approved.
6) JSC Kuban Trunk Grids: by the resolution of the Board of Directors
of JSC Kuban Trunk Grids (Minutes No. 174 of 8 August 2019),
the General Director of JSC Kuban Trunk Grids was instructed
to organise the development and approval of an action plan for
the Company’s transition to the preferential use of domestic software
in 2019–2021; and by Order of JSC Kuban Trunk Grids No. 58/1
of 7 October 2019, an action plan for 2019–2021 of JSC Kuban
Trunk Grids transition to the preferential use of domestic software
was approved.
7) JSC Tomsk Trunk Grids: by the resolution of the Board of Directors
of JSC Tomsk Trunk Grids (Minutes No. 176 of 29 August 2019),
the General Director of JSC Tomsk Trunk Grids was instructed
to organise the development and approval of an action plan of the
Company’s transition to the preferential use of domestic software
in 2019–2021; and by Order of JSC Tomsk Trunk Grids No. 118-TMS
of 23 October 2019, an action plan for 2019–2021 of JSC Tomsk
Trunk Grids transition to the preferential use of domestic software
was approved.
8) IT Energy Service LLC: by the resolution of the Board of Directors
of IT Energy Service LLC (Minutes No. 90 of 31 July 2019, item No. 1),
an action plan for 2019–2021 of IT Energy Service LLC transition
to the preferential use of domestic software was approved.
9) JSC APBE: by the resolution of the Board of Directors of JSC APBE
(Minutes No. 35 of 25 December 2019), an action plan for 2019–
2021 of JSC APBE transition to the preferential use of domestic
software was approved.
10) JSC Mobile GTES: by the resolution of the Board of Directors
of JSC Mobile GTES (Minutes No. 200 of 12 August 2019), an ac-
tion plan for 2019–2021 of JSC Mobile GTES transition to the pref-
erential use of domestic software was approved.
11) FGC – Asset Management LLC: by the resolution of the Board of Di-
rectors of FGC – Asset Management LLC (Minutes No. 28 of 18 De-
cember 2019), an action plan of FGC – Asset Management LLC
transition to the preferential use of domestic software was approved.
12) Index Energetiki — FGC UES LLC (no current economic activities
or software).
In progress: JSC NTC FGC UES: the issue will be submitted for review
by the Board of Directors of JSC NTC FGC UES in Q1 2020.
For more details on the Company’s procurement
activities please refer to section Strategic Report/
Sustainability Results/Procurement Activities.
362
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
363
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
1
2
3
4
5
2.3.
Instruction
of the Russian
Government
Of 12 Decem-
ber 2015
No. DM-P9-
8413 (cl. 2)
Standardisa-
tion of pro-
curement
activities
As part of the compliance, Order of PJSC FGC UES No. 278 On Stan-
dardisation of Procurement of Certain Types of Goods, Works and Ser-
vices for the Needs of PJSC FGC UES of 4 August 2016 (as amended
in revision No. 472 of 9 November 2017) was approved.
2.5.
Resolution
of the Russian
Government
No. 925
of 16 Septem-
ber 2016
2.4.
Minutes
of the meeting
with the Chair-
man of the Rus-
sian Govern-
ment
No. DM-P9-
38pr (cl. 7)
of 14 June
2016
Introduction
of amend-
ments to the
Company’s
Procurement
Policy in terms
of innovative
building
materials
By Order No. 278, PJSC FGC UES subsidiaries — procurement initia-
tors — are recommended to approve organisational and administrative
documents on the establishment of procurement standards.
By the resolution of the Management Board of PJSC FGC UES (Min-
utes No. 1422 of 2 November 2016), the Board of Directors is recom-
mended to amend the Regulation on Procurement in terms of setting
the priority for procurement of domestic innovative building materials.
As part of the compliance, amendments were made to the Regulation
on Procurement of Goods, Works and Services for the Needs of PJSC
FGC UES (revision No. 352 of 9 January 2017).
The priority for procurement of domestic innovative building materials is
set by clause 4.5.9 of the Unified Procurement Standard of PJSC FGC
UES (Regulation on Procurement) (resolution of the Board of Directors,
Minutes No. 436 of 29 January 2019).
The Chairman of the Management Board was instructed to ensure
the introduction of amendments and additions to the subsidiaries’ regu-
lations on procurement of goods, works and services.
As part of compliance with the instruction, relevant amendments and
additions were made to the internal documents that regulate the proce-
dure for procurement of goods, works and services of the following
PJSC FGC UES subsidiaries who carry out procurement activities: JSC
TsIUS UES, JSC Mobile GTES, JSC MUS Energetiki, JSC NTC FGC
UES, JSC Electrosetservice UNEG, JSC ESSK UES, IT Energy Service
LLC, JSC Kuban Trunk Grids, and JSC Tomsk Trunk Grids.
For more details on the Company’s procurement ac-
tivities please refer to section Strategic Report/Sus-
tainability Results/Procurement Activities.
Instruction
of the Deputy
Chairman
of the Russian
Government
No. DK-P9-
81pr (cl. 6)
of 13 May
2019
Priority of do-
mestic goods,
works and
services pro-
vided by Rus-
sian entities
in comparison
with foreign
goods, works
and services
provided
by foreign
entities
Procurement
of domestic
products
for the imple-
mentation
of national
projects
and the com-
prehensive
plan of back-
bone infra-
structure up-
grade and
expansion
Making amendments to the internal documents regulating procurement
activities, which provide for a priority for purchasing domestic products
specified in the appendix to Order of the Russian Ministry of Finance
No. 126n as of 4 June 2018 “On conditions of the admission of the goods
coming from foreign state or group of foreign states for the purposes
of implementation of purchases of goods for ensuring the state and mu-
nicipal needs”.
As part of compliance with Resolution of the Russian Government
No. 925 of 16 September 2016, amendments were made to the Regula-
tion on Procurement of Goods, Works and Services for the Needs
of PJSC FGC UES (revision No. 370 of 7 June 2017).
Priority for purchasing domestic products, as well as works and services
provided by Russian entities, is set by clause 9.2.8 of the Unified Procure-
ment Standard of PJSC FGC UES (Regulation on Procurement).
9.2.8 Under the contract concluded with a procurement participant, who
is given priority in accordance with Resolution of the Russian Government
No. 925 of 16 September 2016, no substitution with goods of different ori-
gin is allowed, except for the cases, when, as a result of such substitution,
domestic goods are supplied instead of foreign ones. At the same time,
quality and technical and performance characteristics (customer appeal)
of such goods shall correspond to the quality and technical and perfor-
mance characteristics of goods indicated in the contract.
In addition, according to the resolution of the PJSC FGC UES Board
(an extract from Minutes No. 481/14 of 30 December 2019), the Unified
Procurement Standard of PJSC FGC UES (Regulation on Procurement)
approved by the resolution of the Board of Directors of PJSC FGC UES
(Minutes No. 436 of 29 January 2019) was amended in order to bring
PJSC FGC UES’s Regulation of Procurement in compliance with the re-
quirements of Directive of the Russian Government No. 9984p-P13
of 1 November 2019, namely 4.5.13 was added:
4.5.13. In accordance with Directive of the Russian Government
No. 9984p-P13 of 1 November 2019, to set the priority for purchasing do-
mestic products indicated in the appendix to Order of the Ministry of Fi-
nance of Russia No. 126n of 4 June 2018 “On conditions of the admission
of the goods coming from foreign state or group of foreign states
for the purposes of implementation of purchases of goods for ensuring
the state and municipal needs” following with Instruction of the Russian
Government No. 925 of 16 September 2016 “On priority of goods of the
Russian origin, and works and services which are rendered by Russian
persons in relation to goods coming from foreign state, and works
and services which are rendered by foreign persons.”
364
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
365
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
1
2
3
4
5
2.6.
Decree
of the President
of the Russian
Federation
Decree
of the President
of the Russian
Federation
No. 618
of 21 Decem-
ber 2017
No. 204
of 7 May 2018
Development
of pro-
grammes
to improve
the quality
of procure-
ment manage-
ment
The Programme to Increase the Quality of PJSC FGC UES Procure-
ment Management was developed and approved by Order of PJSC
FGC UES No. 194 of 26 June 2019 in compliance with Directive of the
Russian Government No. 1519p-P13 of 20 February 2019 (hereinafter,
the “Directive”). Activities were carried out aimed at assessing and ad-
vanced training of employees who are not only directly involved in pro-
curement, but also responsible for the formation of PJSC FGC UES’s
specific requirements, contract execution and payment.
According to the resolution of the PJSC FGC UES Board of 18 April
2019 (Minutes of the Board of Directors of PJSC FGC UES No. 443
of 19 April 2019, cl. 1.2.) related to the item “On development of a pro-
gramme to improve the quality of procurement management”, PJSC
FGC UES subsidiaries are recommended to initiate meetings of their
boards of directors and amend the agenda on the development of pro-
grammes to improve the quality of procurement management in line
with the Directive.
Letter of PJSC FGC UES No. 149/82 of 8 May 2019 recommended
PJSC FGC UES subsidiaries to initiate meetings of their boards of di-
rectors and amend the agenda on the development of programmes
to improve the quality of procurement management in the subsidiaries.
The subsidiaries complied with the instruction.
The issue related to development of programmes to improve the quality
of procurement management in the subsidiaries was considered at the
meetings of the boards of directors of the following PJSC FGC UES
subsidiaries:
– JSC Mobile GTES (Minutes No. 198 of 28 June 2019),
– JSC Electrosetservice UNEG (Minutes of the Board No. 11
of 17 July 2019),
– JSC MUS Energetiki (Minutes No. 07/19 of 27 June 2019),
– JSC Kuban Trunk Grids (Minutes No. 172 of 17 June 2019),
– JSC Tomsk Trunk Grids (Minutes No. 174 of 17 June 2019),
– IT Energy Service LLC (Minutes No. 89 of 28 June 2019),
– JSC TsIUS UES (Minutes No. 191 of 3 July 2019),
– JSC ESSK UES (Minutes No. 157 of 3 July 2019),
– JSC ChitaTechEnergo (Minutes No. 118 of 24 July 2019),
– JSC ENIN (Minutes No. 12 of 10 July 2019),
– JSC NTC FGC UES (Minutes No. 10/NTTs of 21 August 2019).
2.7.
Instruction
of the President
of the Russian
Federation
Instruction
of the Russian
Government
No. Pr-2763
of 31 Decem-
ber 2017
(subcl. “v”,
cl. 1)
No. DM-P13-
77 of 13 Janu-
ary 2018
Implementa-
tion of part-
nership pro-
grammes
with SMEs
As part of compliance with Directive of the Russian Government
No. 7377p-P13 of 7 December 2013 and the resolution of the JSC FGC
UES Board (cl. 2.1.9 of Minutes No. 208 of 30 December 2013), a Part-
nership Programme was developed following Order of JSC FGC UES
No. 92 of 25 February 2014 “On approval of the Partnership Pro-
gramme between JSC FGC UES and subjects of small and medium
business”. At present, 102 organisations have joined the Programme.
2.8.
Decree
of the President
of the Russian
No. 204
of 7 May 2018
Federation
Instruction
of the Russian
Government
No. DM-P13-
1100
of 1 March
2016
Expansion
of the practice
of factoring
usage when
supplying
goods
(carrying
out of works
and services)
under
the contract
Introducing amendments to the Regulation on Procurement in part
of establishing the possibility of assignment of the right of claim (factoring)
when performing contracts concluded between PJSC FGC UES
and small or medium-sized business for the supply of goods (carrying
out of works and services).
As part of compliance with Directive of the Russian Government
No. 4111p-P13 of 8 May 2016, amendments were introduced to the
Unified Procurement Standard (Regulation on Procurement) (revision
No. 465 of 6 September 2019).
Factoring usage in the performance of contracts for the supply of goods
and carrying out of works (services) is stipulated by clause 9.2.7 of the
Unified Procurement Standard of PJSC FGC UES (Regulation on Pro-
curement).
9.2.7 When performing contracts for the supply of goods (carrying out
of works and services) concluded with SMEs, according to the results
of procurement, a supplier (contractor) has the right to assign the right
of claim (factoring) in favour of another person (financial agent, factor).
If the customer approves additional documents regulating the assign-
ment of the right of claim (factoring), such documents shall comply with
this Standard and be published on the customer’s website in the Pro-
curement section of the respective subsection, providing for the place-
ment of documents regulating procurement activities of the customer.
The subsidiaries’ Standards of Procurement (Regulation on Procure-
ment) were amended or revised Standards of Procurement (Regulation
on Procurement) were approved, providing for the possibility to apply
the assignment of the right of claim (factoring) when performing con-
tracts for the supply of goods (carrying out of works and services) with
small or medium business in the following PJSC FGC UES subsidiaries
that conduct procurement activities:
1) IT Energy Service LLC: by the resolution of the IT Energy Service
LLC Board (Minutes No. 89 of 28 June 2019), amendments were intro-
duced to clause 9.2.8 of the Standard of Procurement of IT Energy
Service LLC (Regulation on Procurement).
2) JSC ChitaTechEnergo The revised Unified Procurement Standard
(Regulation on Procurement) was approved by the JSC ChitaTech
Energo Board (Minutes No. 124 of 9 December 2019).
There was no need to introduce amendments, related to the possibility
of assignment of the right of claim (factoring) when performing con-
tracts for the supply of goods (carrying out of works and services)
with small or medium-sized business, to the previously approved Uni-
fied Procurement Standards (Regulation on Procurement) of the follow-
ing PJSC FGC UES subsidiaries that conduct procurement activities
(as they already contain these regulations):
1) JSC Mobile GTES: The Unified Procurement Standard (Regulation
on Procurement) approved by the JSC Mobile GTES Board (Minutes
No. 190 of 25 December 2018)
2) JSC NTC FGC UES: The Unified Procurement Standard (Regulation
on Procurement) approved by the JSC NTC FGC UES Board (Minutes
No. 17/NTTs of 29 December 2018)
3) JSC TsIUS UES: The Unified Procurement Standard (Regulation
on Procurement) approved by the JSC TsIUS UES Board (Minutes
No. 178 of 28 December 2018)
4) JSC ESSK UES: The Unified Procurement Standard (Regulation
on Procurement) approved by the JSC ESSK UES Board (Minutes
No. 152 of 25 December 2018)
366
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
367
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
1
2
3
4
5
5) JSC Kuban Trunk Grids: The revised Unified Procurement Standard
(Regulation on Procurement) approved by the JSC Kuban Trunk Grids
Board (Minutes No. 169 of 14 February 2019).
6) JSC Tomsk Trunk Grids: The revised Unified Procurement Standard
(Regulation on Procurement) approved by the JSC Tomsk Trunk Grids
Board (Minutes No. 171 of 14 February 2019).
7) JSC APBE: The revised Unified Procurement Standard (Regulation
on Procurement) approved by the JSC APBE Board (Minutes No. 30
of 23 April 2019).
8) JSC MUS Energetiki: The revised Unified Procurement Standard
(Regulation on Procurement) approved by the JSC MUS Energetiki
Board (Minutes No. 03/19 of 22 March 2019).
9) JSC Electrosetservice UNEG: The Unified Procurement Standard
(Regulation on Procurement) approved by the JSC Electrosetservice
UNEG Board (Minutes No. 22 of 28 December 2018).
Directive of the Russian Government No. 7923p-P13 of 26 September
2018 (hereinafter, the “Directive”) was sent with the Rosimushchestvo’s
Letter No. 05/32761 of 1 October 2018 to PJSC FGC UES.
Information on contracts for the procurement of civil goods (works,
services) not related to a state defence order concluded between PJSC
FGC UES and defence organisations of the Russian Federation
n 2019 was prepared.
This information was provided to PJSC Rosseti by Letter No. MA/220/127
of 6 February 2020.
Information letters to relevant federal executive bodies were prepared.
2.8.
2.9.
Instruction
of the Russian
Government
No. 7923p-
P13
of 26 Septem-
ber 2018
(cl. 2)
Annual
reporting
to the relevant
federal execu-
tive authori-
ties and the
Government
of the Rus-
sian Federa-
tion about
the volumes
of contracts
concluded
with defence
and industry
enterprises
for the pur-
chase of civil
goods for the
fuel and en-
ergy complex
(carrying
out of works
and services),
not related
to a state de-
fence order
2.10. Directive
of the Russian
Government
No. 10464p-P13
of 18 November
2019
Introduction
of amend-
ments to the
procurement
documenta-
tion of the
Joint Stock
Company
regulating
competitive
procedures
Directive of the Russian Government No. 10464p-P13 of 18 November
2019 (hereinafter, the “Directive”) was sent with the Rosimushchestvo’s
Letter No. 11/40530 of 28 November 2019 to PJSC FGC UES.
In accordance with the Directive, it is necessary to introduce amend-
ments to the PJSC FGC UES procurement documentation regulating
competitive procedures in terms of establishing the possibility of using
guarantees of persons affiliated with the following organisations and
who participate in procurement as the security of obligations under
the contracts with organisations against which foreign countries have
imposed restrictive measures and with regard to beneficial owners
(the total share of direct and/or indirect participation in such organisa-
tion is at least 25 percent) of which restrictive measures have been
imposed by foreign counties.
Agenda materials No. 15 of 12 December 2019 were sent to the Board
of Directors of PJSC FGC UES.
3.
STRATeGY deVeLOpMenT And UpdATinG, LOnG-TeRM pLAnninG
3.1.
Instruction
of the President
of the Russian
Federation
No. Pr-3013
of 27 Decem-
ber 2014
Development
and approval
of the list
of internal
documents
governing
the Compa-
ny’s activities,
as well
as provision
of reports
on the prog-
ress of long-
term develop-
ment
programmes
implementa-
tion and
achievement
of approved
key perfor-
mance indica-
tors
Pursuant to cl. 2 of Pr-3013, the following documents were developed
and approved by the Company:
– Regulation on Increasing Investment and Operational Efficiency
and Cutting Expenses of PJSC FGC UES (approved by the resolution
of the Board of Directors, Minutes No. 312 of 28 March 2016);
– Regulation on Internal Audit (approved by the resolution of the Board
of Directors, Minutes No. 291 of 19 November 2015);
– Regulation on the Risk Management System (approved by the reso-
lution of the Board of Directors, Minutes No. 291 of 19 November
2015, and updated by the resolution of the Board of Directors,
Minutes No. 347 of 13 December 2016);
– Regulation on the Quality Management System (approved by the resolu-
tion of the Board of Directors, Minutes No. 291 of 19 November 2015);
– Regulation on the Procedure for Developing and Implementing the In-
novative Development Programme (approved by Order of PJSC FGC
UES No. 445 of 16 November 2015).
Pursuant to cl. 3 of Pr-3013 regarding the provision of reports on the long-
term development programmes implementation, according to Minutes of
the Board of Directors No. 267 of 25 April 2015, the Chairman of the Com-
pany’s Management Board was instructed to ensure provision of materials
mandatory for the preparation and holding of annual general meetings
of shareholders of PJSC FGC UES, reports on the PJSC FGC UES long-
term development programme implementation and on the achievement of
approved key performance indicators within the term established by Fed-
eral Law No. 208-FZ on Joint-Stock Companies of 26 December 1995.
Pursuant to cl. 3 of Instruction of the Deputy Chairman of the Govern-
ment A. Dvorkovich No. AD-P36-4992 of 20 July 2016, a plan for re-
view of quarterly reports on the long-term development programme im-
plementation and achievement of KPIs by PJSC FGC UES at meetings
of the Company’s Board of Directors was approved by the resolution
of the Board of Directors of PJSC FGC UES of 25 October 2017
(an extract from Minutes No. 381/2 of 27 October 2017).
The Report on the Long-Term Development Programme Implementa-
tion in 2018 was included in the 2019 AGM materials.
Currently, reports are being prepared on the achievement of KPIs approved
by PJSC FGC UES in 2019 for their inclusion in the 2020 AGM materials.
For more details on the Company’s key performance
indicators refer to section Strategic Report/Market
Review, Strategy and KPIs/Key Performance
Indicators (KPIs).
368
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
369
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
1
2
3
4
5
3.2.
Instruction
of the President
of the Russian
Federation
No. Pr-769
(cl. 2)
of 26 April
2016
Instruction
of the Russian
Government
No. AD-P36-
4292
of 20 July
2016
3.3.
Instruction
of the President
of the Russian
Federation
No. Pr-3086 of
27 December
2013
3.4.
Instruction
of the Govern-
ment
of the Russian
Federation
No. ISh-
P8-6196
of 15 August
2014
According to Rosimushchestvo’s Letter No. RB-11/9968 of 20 March
2017, in PJSC FGC UES personal account on the Interdepartmental
Portal for Management of State Property, in the prescribed term certain
forms were filled in on the analysis of implementation of the Regulation
on Increasing Investment and Operational Efficiency and Cutting Ex-
penses, Regulation on the Internal Audit, Regulation on the Quality
Management System, Regulation on the Risk Management System,
and Regulation on the Procedure for Developing and Implementing
the Innovative Development Programme.
On 19 December 2014, the Board of Directors of JSC FGC UES
(Minutes No. 243 of 22 December 2014) approved the Long-term De-
velopment Programme of JSC FGC UES for 2015–2019 and a forecast
until 2030.
The Board of Directors of JSC FGC UES (Minutes No. 245 of 31 De-
cember 2014) approved the standards for conducting an annual inde-
pendent audit of the programme implementation, the results of which
are sent to the Ministry of Energy of Russia as proposals for appropri-
ate amendment to the programme no later than 10 July of the year fol-
lowing the reporting year.
The implementation of the Long-term Development Programme is au-
dited annually: in 2015 according to the results of 2014, in 2016 ac-
cording to the results of 2015, in 2017 according to the results of 2016,
in 2018 according to the results of 2017, in 2019 according to the re-
sults of 2018, and in 2020 according to the results of 2019. In June
2019, the resolution of the Strategy Committee of the Board of Direc-
tors of PJSC FGC UES (Minutes No. 85 of 25 June 2019) took note
of the report of an independent auditor on the results of the audit
of the 2018 Report on the Long-Term Development Programme imple-
mentation.
The Strategy Committee of PJSC FGC UES approved the new edition
of the Long-Term Development Programme (Minutes No. 89 of 31 Oc-
tober 2019), developed in compliance with the resolution of the Strate-
gy Committee of the Company’s Board of Directors (Minutes No. 51
of 3 August 2017).
For more details on the PJSC FGC UES Long-Term
Development Programme please refer to section Stra-
tegic Report/Market Overview, Strategy and KPIs/De-
velopment Strategy.
On 19 December 2014, the Board of Directors of JSC FGC UES (Min-
utes No. 243 of 22 December 2014) approved the Long-term Develop-
ment Programme of JSC FGC UES for 2015–2019 and a forecast until
2030, including the Need for Human Resources section.
The corporate HR policy of PJSC FGC UES is particularly focused
on the growth of labour productivity while maintaining the requirements
to reliability of operations of the electric grid complex.
Filling
in the form
for internal
documents
implementa-
tion analysis
Development
and approval
of the Com-
pany’s long-
term develop-
ment
programme,
audit of the
long-term de-
velopment
programme
implementa-
tion, and
approval of
the auditing
standards
Inclusion
in the Compa-
ny’s long-term
development
programme
of key
parameters
of the need
for human
resources,
including
engineering
and technical
specialities
3.5.
Instruction
of the Russian
Government
Meeting Minutes
of the Presidium
of the Presiden-
tial Council
of the Russian
Federation
on modernisa-
tion of economy
and innovative
development
of Russia
No. AD-P36-
6296 (cl. 5)
of 15 Septem-
ber 2015
No. DM-P36-
7563 of 7 No-
vember 2015
No. AD-P36-
8381 (cl. 1)
of 10 Decem-
ber 2015
No. ISh-
P13-1925
of 5 April 2018
No. 2 (subcl.
“b”, cl. 2, sec-
tion 2) of 17
April 2015
Development
of the innova-
tive develop-
ment pro-
gramme
Innovative
development
and proposals
on the devel-
opment of
state compa-
nies’ innova-
tive activity
indicators
Comparison
of the techno-
logical devel-
opment level
and current
key perfor-
mance indica-
tors of the
joint-stock
company with
those of lead-
ing foreign
companies
who work in
the same area
By the resolution of the Board of Directors of PJSC FGC UES (Minutes
No. 352 of 9 January 2017), amendments were introduced to the Long-
Term Development Programme of PJSC FGC UES approved by the reso-
lution of the Board of Directors of JSC FGC UES of 19 December 2014
(Meeting Minutes of the Board of Directors of JSC FGC UES No. 243
of 22 December 2014), related to the inclusion, starting from 2016,
of an integral key indicator Efficiency of Innovation Activity in the list
of key performance indicators of the Long-Term Development Programme
of PJSC FGC UES.
The Efficiency of Innovation Activity indicator is included in the Methodol-
ogy for Calculating and Evaluating the Achievement of Key Performance
Indicators of PJSC FGC UES Top Managers for 2016, approved by the
resolution of the Board of Directors of PJSC FGC UES (Minutes No. 354
of 9 February 2017), with a 20% weight.
By the resolution of the Board of Directors of PJSC FGC UES (Minutes
No. 409 of 8 June 2018), the Chairman of the Management Board
of PJSC FGC UES was instructed to ensure the comparison of the techno-
logical development level and current key performance indicators of PJSC
FGC UES with those of leading foreign companies who work in the same
area, and to send the results and amendment proposals in respect
of the Innovative Development Programme of PJSC FGC UES for 2016–
2020 with a view to 2025 and the Long-Term Development Programme
of PJSC FGC UES for 2015–2019 with a forecast to 2030, along with pro-
posals concerning the structure and values of the integral key performance
indicator of PJSC FGC UES for 2019 to the Ministry of Economic Develop-
ment of Russia, no later than 1 November 2018.
The reporting materials on the results of comparison were sent by Letter
No. KP-6672 of 31 October 2018 to the Ministry of Economic Development
of Russia and the Ministry of Energy of Russia.
The Board of Directors of PJSC FGC UES approved the report on com-
parison of the technological development level and the values of key per-
formance indicators of PJSC FGC UES with those of leading foreign com-
panies who work in the same area (Minutes No. 477 of 16 December
2019).
For more details on the Company’s innovation activi-
ties refer to section Strategic Report/Innovative Devel-
opment.
For more details on the Company’s key performance
indicators refer to section Strategic Report/Market Re-
view, Strategy and KPIs/Key Performance Indicators
(KPIs).
For more details on the remuneration of the Chairman
and members of the Management Board refer
to section Report on Corporate Governance/Remuner-
ation for Members of the Board of Directors and Man-
agement Bodies/Remuneration for the Chairman
and Members of the Management Board.
370
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
371
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
1
2
3
4
5
Pursuant to Decree of the President of the Russian Federation No. 204
of 7 May 2018 “On assessment of existence or non-existence of large
investment projects being implemented or planned for implementation”
and Instruction of the Russian Government (cl. 3.7 of the Action Plan
for accelerating growth rates...) No. DM-P13-4513 of 21 July 2018,
the materials were prepared and sent to the PJSC FGC UES Board
of Directors for review (No. 8msd of 5 February 2020).
Assessment
of existence
or non-exis-
tence of large
investment
projects being
implemented
or planned
for implemen-
tation
3.6.
Decree
of the President
of the Russian
Federation
Instruction
of the Russian
Government
(cl. 38
of the List)
No. 204
of 7 May 2018
No. DM-
P13-4513
of 21 July
2018 (cl. 3.7
of the Action
Plan for accel-
erating growth
rates of fixed
capital invest-
ments and
raising their
share in GDP
up to 25%,
approved at
the meeting
of the Russian
Government
on 12 July
2018 (Minutes
No. 20, sec-
tion I)
3.7.
Resolution
of the Russian
Government
No. 132
of 16 February
2015
Technological
and price
audit of draft
investment
programmes
and reports
on the imple-
mentation
of investment
programmes
In accordance with the resolution of the Board of Directors (Minutes
No. 380 of 16 October 2017), approved according to Directive
of the Russian Government No. 1752p-P13 of 16 March 2017, starting
from 2017, PJSC FGC UES conducts technological and price audits
(hereinafter, the “TPA”) of draft investment programmes (hereinafter,
the “IPs”) (draft amendments introduced to the IPs) and reports
on their implementation.
TPA of draft investment programmes:
1. The findings of TPA of IPs’ draft amendment were placed as part
of the information about the IPs draft amendment for public discus-
sions on the official website of the Ministry of Energy of Russia
on 25 February 2019 (published on 28 February 2019).
As part of the information on Recommendations to the Board of Di-
rectors of PJSC FGC UES related to consideration of PJSC FGC
UES’s investment programme draft amendment for 2019 and the in-
vestment programme project for 2020–2024, the expert organisation
submitted a final report for review at the meeting of the Company’s
Board of Directors on 25 February 2019 (Minutes No. 438 of the
Meeting Minutes of the Board of Directors of 26 February 2019).
2. The findings of TPA of the IPs draft amendment, that was elaborated
based on amendments introduced by federal authorities, was pub-
lished on the official website of the Ministry of Energy of Russia
as part of the elaborated IPs draft amendment of 18 July 2019 (pub-
lished on 22 July 2019) and 1 August 2019 (published on 5 August
2019).
TPA of reports on the investment programmes implementation:
The expert organisation’s final reports on TPA of reports for Q1, Q2
and Q3 2019 are disclosed on the website of the Federal State Informa-
tion System at invest.gosuslugi.ru as part of the information about re-
ports on the PJSC FGC UES’ IPs implementation for Q2, Q3 and Q4
2019, respectively.
3.8.
Instruction
of the President
of the Russian
Federation
No. Pr-1891
(cl. 1)
of 17 Septem-
ber 2015
Instruction
of the Russian
Government
No. DM-P16-
6658 (cl. 6)
of 30 Septem-
ber 2015
Resolution
of the Russian
Government
No.1502
of 27 Decem-
ber 2016
Resolution
of the Russian
Government
No. 232
of 6 March
2018
3.9.
Decree
of the President
of the Russian
Federation
Instruction
of the Russian
Government
No. 204
of 7 May 2018
No. DM-
P134513
of 21 July
2018
4.
HR MAnAGeMenT
4.1.
Instruction
of the President
of the Russian
Federation
От 05.12.2014
№ Пр-2821
Prioritising
of financing the
socio-econom-
ic development
of the Far East
in the frame-
work of imple-
mentation of
Russian state
programmes
and activities
of joint-stock
companies with
state participa-
tion, including
implementation
of their invest-
ment pro-
grammes
Update of the
Long-Term
Development
Programme
and submis-
sion of audit
reports
on the LDP
Accelerating
growth rates
of fixed capital
investments
and raising
their share
in GDP up
to 25 percent
Pursuant to Instruction of the Russian Government No. 3538p-P13
of 25 May 2017, within the framework of the investment programme
materials submitted to the Ministry of Energy of Russia and published
on the Internet in accordance with Resolution of the Russian Govern-
ment No. 977 of 1 December 2009 On Investment Programmes
of Electric Power Industry Entities, PJSC FGC UES has published
an appendix with a list of projects ensuring priority funding to socio-
economic development of the Far East.
By the resolution of the Board of Directors of PJSC FGC UES (Minutes
No. 435 of 17 January 2019), the Chairman of the Management Board
of PJSC FGC UES was instructed to ensure the implementation of Res-
olution of the Russian Government No. 232 of 6 March 2018 regarding
the agreement of the procedure for approval of planned and pro-
gramme and target documents with the Ministry for Development
of the Russian Far East and the specified ministry.
The procedure for approval of planned and programme and target doc-
uments with the Ministry for Development of the Russian Far East has
been agreed (Order of PJSC FGC UES No. 43 of 7 February 2019).
In accordance with the directives of the Russian Government No. 276p-
P13 of 17 January 2019, the PJSC FGC UES Board of Directors adopted
a resolution (Minutes No. 446 of 29 April 2019), pursuant to which the
Company developed a draft of its new Long-Term Development Pro-
gramme for 2020–2024 (hereinafter referred to as the “LDP”), taking into
account the Action Plan for accelerating growth rates of fixed capital
investments and raising their share in GDP up to 25 percent, including
target indicators by type of economic activity. The draft LDP was re-
viewed by the Strategy Committee of the PJSC FGC UES Board of Direc-
tors (Meeting Minutes of the Strategy Committee No. 89), and approved
by the Ministry of Energy of Russia (Letter No. MYu-15495/09 of 20 De-
cember 2019), Rosimushchestvo (Letter No. AP-05/4412 of 12 February
2020) and the Ministry of Economic Development of the Russian Federa-
tion (Letter No. 6818-MR/D07I of 5 March 2020). Currently it is being
reviewed by the Ministry for the Development of the Russian Far East.
Each year the auditor’s report on the LDP is published on the Interde-
partmental Portal of Rosimushchestvo until 1 June. In 2019, the audi-
tor’s report on the LDP was sent to the Ministry of Economic Develop-
ment of the Russian Federation, Rosimushchestvo and the Ministry
of Energy of Russia by Letter No. TM-3441 of 28 May 2019.
Introduction
of a bonus
system for the
management
based on their
key perfor-
mance indica-
tors due to the
necessity
of reduction
of operating
expenses
(costs) at least
by 2–3% per
year
In compliance with the instructions of the President of the Russian Fed-
eration No. Pr-2821 of 5 December 2014 and Directive of the Russian
Government No. 2303p-P13 of 16 April 2015, the Board of Directors
instructed (Minutes No. 274 of 25 June 2015) the Chairman of the
Company’s Management Board to submit the following items for review
by the Board of Directors:
– inclusion of target values for OPEX Reduction Indicator into the list
of key performance indicators of the Company’s management that
shall be considered when making decisions related to remuneration
and human resources, as well as aligning the achievement of OPEX
Reduction Indicator with the remuneration amount to be paid to the
Company’s management;
– amendment of the labour agreement (contract) with the Company’s
CEO with respect to the incorporation of the obligation to achieve
the target values of OPEX Reduction Indicator, as specified
in the Company’s Long-Term Development Programme.
372
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
373
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
1
2
3
4
5
4.1.
In accordance with Minutes of the Board of Directors No. 307 of 1 Febru-
ary 2016 on the item:
1. Inclusion of the target values for OPEX Reduction Indicator into the list of
key performance indicators of the Company’s management that shall be con-
sidered when making decisions related to remuneration and human resourc-
es, as well as aligning the achievement of OPEX (Costs) Reduction Indicator
with the remuneration amount to be paid to the Company’s management.
The following was resolved:
1.1. To amend the Methods for Calculation and Evaluation of Key Perfor-
mance Indicators for JSC FGC UES’s Top Managers as approved by
the resolution of the Board of Directors of JSC FGC UES of 19 De-
cember 2014 (Minutes No. 243 of 22 December 2014), by replacing
the existing KPI “Reduction in unit operating expenses” with “Reduc-
tion in unit operating expenses (costs)”.
1.2. To set a target value for the KPI “Reduction in unit operating expenses
(costs)” at the level of at least 14.2% as of the end of 2015 against 2014.
The indicator of reduction in operating expenses (costs) is also incorporated
in the draft methods for calculation and evaluation of KPIs achievement by
top managers of PJSC FGC UES in 2016, approved by the resolution of the
Board of Directors of PJSC FGC UES (Minutes No. 354 of 9 February 2017),
while the target value of the indicator is currently set at the level no less than
10% from the actual value in 2015.
In accordance with cl. 4.1, section 4 of the Regulation on Terms and Con-
ditions of Labour Contracts and Remuneration and Compensations For Top
Managers of JSC FGC UES, as approved by the resolution of the Board of
Directors of JSC FGC UES (Minutes No. 105 of 17 June 2010), “the system
of material incentives for the Company’s top managers determines how the
remuneration amount depends on the achievement of key performance indi-
cators (hereinafter, KPIs) set by the Company’s Board of Directors, includ-
ing those related to the Long-Term Development Programme.”
In accordance with Minutes of the Board of Directors No. 370 of 13 June
2017, the methods for calculation and evaluation of the KPIs achievement by
top managers of PJSC FGC UES, which include the KPI “Reduction in unit
operating expenses (costs)” with a target value of ≥ 3.0%, were approved.
In accordance with Minutes No. 396 of 30 August 2018, the Board of Direc-
tors approved target values of key performance indicators for the top man-
agement of PJSC FGC UES for 2018. Target value of the KPI “Reduction
in unit operating expenses (costs)” was set at a rate of ≥2.0%. For 2019,
the same target value of ≥2.0% was set for the KPI “Reduction in unit oper-
ating expenses (costs)” (Minutes of the Board of Directors No. 474
of 26 November 2019).
The Board of Directors (Minutes No. 480/2 of 27 December 2019) ap-
proved the methods for calculation and evaluation of KPIs achievement by
top managers of PJSC FGC UES, which are valid since 2020. The “Re-
duction in unit operating expenses (costs)” KPI with a target value
of ≥2.0% was included in these methods.
Thus, upon the inclusion of OPEX Reduction Indicator in the list of KPIs
for the Company’s managers, the ratio of its achievement is automatically
accounted for in the system of remuneration of the Chairman of the Com-
pany’s Management Board, i.e. there is no need for any additional amend-
ment to the labour contract signed with the Chairman of the Company’s
Management Board.
4.2.
Instruction
of the President
of the Russian
Federation
Instruction
of the Russian
Government
No. PR-1474
of 5 July 2013
No. ISh-
P13-2043
of 27
Use of key
performance
indicators
to evaluate
the perfor-
mance
of manage-
ment. KPIs
should be tak-
en into ac-
count when
making deci-
sions related
to salaries
and staffing
The procedure for calculating and evaluating KPIs achievement
by PJSC FGC UES’ top management is based on the Methodological
Guidelines for using key performance indicators by government-owned
corporations, government-owned companies and government-owned
unitary enterprises as well as business entities, in authorised capitals
of which the total share of Russia and a constituent entity of the
Russian Federation exceeds 50%.
The Board of Directors approved the procedures for calculating and
evaluating KPIs achievement by the top management of JSC FGC UES
for 2014 (Minutes No. 217 of 15 April 2014), and 2015 (Minutes No. 243
of 22 December 2014); of PJSC FGC UES for 2016 (Minutes No. 354
of 9 February 2017), and 2017 (Minutes No. 370 of 13 June 2017).
In 2018, PJSC FGC UES operated a quarterly and annual bonus system
based on the procedure for calculating and evaluating KPIs achievement
by PJSC FGC UES’ top management approved by the Board of irectors
of PJSC FGC UES (Minutes No. 370 of 13 June 2017, with Minutes
No. 396 of 2 April 2018 taken into account).
In 2018, the Company’s Board of Directors reviewed reports on KPIs
achievement by the top management of PJSC FGC UES:
- Reports on key performance indicators achievement by the top
management of PJSC FGC UES for Q1 and Q2 2018 were approved
by the resolution of the Board of Directors of 20 November 2018
(Minutes No. 428 of 21 November 2018);
- Report on the KPI «Innovation activity efficiency» achievement
by the top management of PJSC FGC UES for 2017 was approved
by the resolution of the Board of Directors of 18 December 2018
(Minutes No. 432 of 20 December 2018).
In 2019, PJSC FGC UES operated a quarterly and annual bonus
system based on the procedure for calculating and evaluating KPIs
achievement by PJSC FGC UES’ top management approved by the
Board of Directors of PJSC FGC UES (Minutes No. 370 of 13 June
2017, with Minutes No. 474 of 26 November 2019 and No. 480
of 27 December 2019 taken into account).
In 2019, the Company’s Board of Directors reviewed reports on KPIs
achievement by the top management of PJSC FGC UES:
– Report on key performance indicators achievement by the top
management of PJSC FGC UES for Q3 2018 was approved by the
resolution of the Board of Directors of 5 April 2019 (Minutes No. 442
of 5 April 2019);
– Report on key performance indicators achievement by the top
management of PJSC FGC UES for Q4 2018 was approved by the
resolution of the Board of Directors of 5 July 2019 (Minutes No. 457
of 8 July 2019);
– Report on key performance indicators achievement by the top
management of PJSC FGC UES for 2018 was approved by the
resolution of the Board of Directors of 14 November 2019 (Minutes
No. 473 of 18 November 2019);
– Reports on key performance indicators achievement by the top
management of PJSC FGC UES for Q1 and Q2 2019 were approved
by the resolution of the Board of Directors of 27 December 2019
(Minutes No. 480 of 27 December 2019);
– Report on key performance indicators achievement by the top man-
agement of PJSC FGC UES for Q3 2019 was recommended for ap-
proval by the Management Board at the Board of Directors’ meeting
(Meeting Minutes of the Management Board No. 1672 of 16 Decem-
ber 2019) and by the HR and Remuneration Committee of PJSC
FGC UES’ Board of Directors (Minutes No. 71 of 28 January 2020).
374
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
375
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
3
4
5
No.
Instruction
1
2
4.2.
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
3
4
5
No.
Instruction
1
2
4.4.
4.3.
Order
of the Russian
Government
No. 1388-r
of 27 June
2019
4.4.
Order of the
Russian Gov-
ernment
No. 1250-r
of 9 July 2014
No. SA-P13-
25pr of 5
March 2019
Minutes of the
extended meet-
ing on the moni-
toring national
projects imple-
mentation: La-
bour Productivity
and Employ-
ment Support,
Small and Me-
dium Entrepre-
neurship and
Support of Indi-
vidual Business
Initiative, and In-
ternational Co-
operation and
Export
– Report on the key performance indicator “Innovation activity efficien-
cy” achievement by the top management of PJSC FGC UES for 2018
was recommended for approval by the Management Board
at the Board of Directors’ meeting (Meeting Minutes of the Manage-
ment Board No. 1676 of 27 December 2019) and by the HR and Re-
muneration Committee of PJSC FGC UES’ Board of Directors (Min-
utes No. 70 of 23 January 2020).
For more details on the Company’s key performance
indicators refer to section Strategic Report/Market
Review, Strategy and KPIs/Key Performance
Indicators (KPIs).
By the resolution of the Board of Directors of PJSC FGC UES of 27 De-
cember 2019 (Minutes No. 480 of 27 December 2019), the methodol-
ogy for calculating and evaluating the implementation of KPIs by top
managers of PJSC FGC UES was approved to be applied since 1 Jan-
uary 2020, as well as target values of the key performance indicators
of PJSC FGC UES’s top managers for 2020.
Furthermore, by this resolution of the Board of Directors, it was noted
that other internal documents regulating the formation of key perfor-
mance indicators and remuneration of PJSC FGC UES’s management
comply with the methodological recommendations for applying key per-
formance indicators of business entities, in the authorised capital of
which the total share of Russia or a constituent entity of the Russian
Federation exceeds 50%, as well as performance indicators of govern-
ment-owned unitary enterprises, in order to determine the remuneration
amount for their management approved by Order of the Russian Gov-
ernment No. 1388-r of 27 June 2019.
By the resolution of the Board of Directors of JSC FGC UES (Minutes
No. 242 of 19 December 2014), the Chairman of the Management
Board was instructed to take appropriate steps to improve labour pro-
ductivity in the Company.
Procedures for improving labour productivity and efficiency of operations
are set in the Long-Term Development Programme of PJSC FGC UES.
In order to increase the efficiency of activities and achieve optimal use
of human resources, the Company implements consistent procedures
aimed at improving labour productivity (including pursuant to Direc-
tives of the Russian Government No. 2454p-P13 of 23 April 2014,
No. 7389p-P13 of 31 October 2014, No. 2303p-P13 of 16 April 2015,
and No. 4750p-P13 of 4 July 2016) and reducing operating expenses
by optimising staff costs.
In 2016–2018, in order to identify reserves and reduce work-time losses
of industrial production personnel (hereinafter, the “IPP”), in accordance
with Order of PJSC FGC UES No. 152 of 10 May 2015, the project
to increase IPP labour productivity was implemented (hereinafter,
the Project), under which:
• Initiatives were developed to increase labour productivity of functional
groups of industrial and production personnel in the functional areas
of substations, lines, relay protection and automation.
• The developed initiatives were implemented at pilot EMPS (Verkhne-
Donskoye and Northern).
• As a result of pilot implementation and assessment of relevance
of further replication of the initiatives and clarification of potential ef-
fect, (1) initiatives were identified that were taken into consideration
when developing the M&R plan for 2019–2023, and (2) initiatives im-
plemented by the MPS branches.
Development
(update)
of internal
documents
regulating
the formation
of key perfor-
mance indica-
tors and re-
muneration
of the man-
agement
Improving
labour pro-
ductivity as
per clause 6,
section 2
of the Action
Plan on La-
bour Produc-
tivity Im-
provement,
Employment
Creation and
Modernisation
of Highly Pro-
ductive Work-
places ap-
proved
by Order
of the Russian
Government
No. 1250-r
of 9 July 2014
• In order to provide information support of the Project, training semi-
nars were held video conferencing on the methodology for assess-
ment of application and calculation of the effect from the implementa-
tion of initiatives with all EMPS/MPS branches.
The cumulative effect of increasing labour productivity in terms of M&R
by MPS branches, including through the implementation of initiatives
by CJSC ECOPSI Consulting, expressed in increased repair personnel
productivity (RUB/c.u., taking into account inflation), is estimated in the
amount of RUB 537 million for 2019–2023.
The labour productivity indicator is included in the methodology for cal-
culating and evaluating the implementation of KPIs by top managers
of PJSC FGC UES for 2016 approved by the resolution of the PJSC FGC
UES Board of Directors (Minutes No. 354 of 9 February 2017), in the
methodology for calculating and evaluating the implementation of KPIs
by top managers of PJSC FGC UES for 2017 approved by the resolu-
tion of the PJSC FGC UES Board of Directors (Minutes No. 370
of 13 June 2017), in the methodology for calculating and evaluating
the implementation of KPIs by top managers of PJSC FGC UES
for 2018 approved by the resolution of the PJSC FGC UES Board
of Directors (Minutes No. 370 of 13 June 2017, with Minutes No. 396
of 2 April 2018 taken into account), in the methodology for calculating
and evaluating the implementation of KPIs by top managers of PJSC
FGC UES for 2019 approved by the resolution of the PJSC FGC UES
Board of Directors (Minutes No. 370 of 13 June 2017, with Minutes
No. 474 of 26 November 2019 and No. 480 of 27 December 2019 tak-
en into account).
For more information on labour productivity please
see section Strategic Report/Sustainability Results.
For more details on the Company’s key performance
indicators refer to section Strategic Report/Market
Review, Strategy and KPIs/Key Performance Indicators
(KPIs).
The item related to introduction of professional standards in PJSC FGC
UES’ activities was considered at the meeting of PJSC FGC UES’s
Board of Directors held on 24 November 2016, and the Chairman of the
Management Board of PJSC FGC UES was instructed to prepare mate-
rials for initiating meetings of the Board of Directors of PJSC FGC UES
at least once in every six months with inclusion of the item in the agenda
and taking into account the provisions of Federal Law No. 122-FZ
On Amendment of the Labour Code of Russia of 2 May 2015, and Arti-
cles 11 and 73 of the Federal Law On Education in the Russian Federa-
tion, based on the approval and implementation of corresponding plans
and the work on introduction of professional standards when evaluating
and rewarding HR managers of PJSC FGC UES.
The item related to introduction of professional standards in PJSC FGC
UES’ activities was reviewed at the meeting of the PJSC FGC UES
Board of Directors held on 31 May 2017, and the Report on the Introduc-
tion of Professional Standards in PJSC FGC UES’ Activities was taken
into account, according to which the following activities aimed at intro-
ducing professional standards were carried out:
– development and approval of an organisational and regulatory document
regulating the introduction of professional standards in PJSC FGC UES’
activities (Order of PJSC FGC UES No. 222 On Creation of a Working
Group for the Introduction of Professional Standards of 1 July 2016);
– analysis of PJSC FGC UES’ staffing schedules in order to identify jobs
and positions to which the professional standards should be applied.
4.5.
Directive
of the Russian
Government
No. 5119p-
P13 of 14
June 2016
Introduction of
professional
standards
376
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
377
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
1
2
4.5.
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
3
4
5
The item related to introduction of professional standards in PJSC FGC
UES’ activities according to the H2 2017 results was considered at the
meeting of the PJSC FGC UES Board of Directors held on 31 January
2018, and the Report on the Introduction of Professional Standards in
PJSC FGC UES’ Activities was taken into account, according to which
the following activities aimed at introducing professional standards in
the Company’s activities were carried out:
– approval of a standard list of positions in PJSC FGC UES’s MPS and
EMPS branches (Order of PJSC FGC UES No. 460 of 2 November
2017) in accordance with the requirements of professional standards
and Order of PJSC Rosseti No. 66 of 27 April 2017;
– bringing in line the staffing schedules of PJSC FGC UES’s MPS and
EMPS branches with the approved standard list of positions. No
amendments were made to the staffing schedule of PJSC FGC UES’
Executive Office as the positions of employees are named in line with
the professional standards;
– training of PJSC FGC UES’s employees who took part in the profes-
sional standards introduction;
– amendment of educational programmes implemented by the Person-
nel Training Centre in accordance with provisions of the professional
standards (Order of PJSC FGC UES No. 259r of 5 June 2017);
– conformity assessment of PJSC FGC UES Executive Office’s em-
ployees with requirements of the professional standards mandatory
for introduction (education, work experience, permits);
– participation in a methodological examination of the evaluation kit for
its use within the framework of an independent assessment of profes-
sional qualifications in the electric power industry.
The item related to introduction of professional standards in PJSC FGC
UES’ activities according to the H1 2018 results was considered at the
meeting of the PJSC FGC UES Board of Directors held on 16 August
2018, and the Report on the Introduction of Professional Standards
in PJSC FGC UES’ Activities was taken into account, according to which
the following activities aimed at introducing professional standards
in the Company’s activities were carried out:
– bringing in line the documents defining the functional structure of PJSC
FGC UES (regulations on structural divisions, work instructions for em-
ployees) with the professional standards;
– conformity assessment of employees of PJSC FGC UES’ MPS
and EMPS branches with requirements of the professional standards
mandatory for introduction (education, work experience, permits);
– approval of the Regulation on Application of Professional Standards
in PJSC FGC UES’ Activities (Order of PJSC FGC UES No. 193
of 31 May 2018) to ensure optimal and effective work of PJSC FGC
UES under the professional standards.
The item related to introduction of professional standards in PJSC FGC
UES’ activities according to the H1 2018 results was considered at the
meeting of the PJSC FGC UES Board of Directors held on 11 Decem-
ber 2018, and the Report on the Introduction of Professional Standards
in PJSC FGC UES’ Activities was taken into account, according
to which the following activities aimed at introducing professional stan-
dards in the Company’s activities were carried out:
– conformity assessment of employees of PJSC FGC UES’ MPS and
EMPS branches (hereinafter, the “branches”) with requirements of the
professional standards mandatory for introduction in the Company’s
activities; As a result, the branches’ employees who do not comply
with the requirements of the professional standards were revealed.
– development of plans for the implementation of procedures aiming
to ensure that the branches’ employees comply with the requirements
of the mandatory professional standards;
No.
Instruction
1
2
4.5.
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
3
4
5
– conformity assessment of employees, who involved in training activi-
ties in the Personnel Training Centres of the branches, with require-
ments of the Vocational Training, Vocational Education and Further
Vocational Education Teacher professional standard. All employees
involved in training activities in the branches’ Personnel Training
Centres meet the requirements of the professional standard.
– due to the qualification of employees involved in training activities
in the branches’ Personnel Training Centres, there was no need
to perform the procedures aiming to ensure their compliance
with the requirements of the professional standard.
The item related to introduction of professional standards in PJSC FGC
UES’ activities according to the H1 and H2 2019 results was considered
at the meeting of the PJSC FGC UES Board of Directors held on 18 Feb-
ruary 2020, and the Reports on the Introduction of Professional Stan-
dards in PJSC FGC UES’ Activities for H1 and H2 2019 were taken into
account, according to which the following activities aimed at introducing
professional standards in the Company’s activities were carried out:
– Six evaluation kits were developed and approved at the meeting
of the Council for Professional Qualifications in the Electric Power Industry
(hereinafter, the “Council”) to conduct an independent qualification
assessment of employees of PJSC FGC UES’s MPS/EMPS branches.
The evaluation kits were tested by the Personnel Training Centres
of PJSC FGC UES’s MPS branches, and according to the results they
were updated and submitted to the Council for further consideration;
– the Council carried out professional and public accreditation of four ad-
vanced training programmes for the operational staff of substations, elec-
tric locksmiths who repair switchgear equipment, electricians who repair
and maintain overhead power lines, as well as training of employees
in safe methods of work at height;
– the qualification of technical experts of PJSC FGC UES’s MPS/EMPS
branches was confirmed at the Council meeting. They will take part
in professional examinations carried out within the framework of indepen-
dent assessment;
– the qualification of 1,389 employees of PJSC FGC UES’s MPS/EMPS
branches was independently assessed at the examination sites
of the Personnel Training Centres of PJSC FGC UES’s MPS branches;
– seventeen evaluation kits were updated/developed and approved
at the Council meeting to provide an independent qualification assess-
ment of employees of PJSC FGC UES’s MPS/EMPS branches;
– the list of qualifications of the electric grid complex was supplemented
with 38 professional qualifications, approved by the Council and submit-
ted for approval to the National Qualifications Development Agency
(hereinafter, NQDA);
– at the meeting, the Council confirmed qualifications of 77 technical ex-
perts of PJSC FGC UES’s MPS/EMPS branches, who take part in profes-
sional examinations within the framework of independent assessment;
– as part of NQDA’s programmes, the following training was organised
in cooperation with the Council: for developers of evaluation kits among
PJSC FGC UES’s Executive Office, MPS/EMPS branches and technical
experts of these branches, who take part in professional examinations
within the framework of independent assessment;
– in order to implement the Plan and Schedule for Introduction of Profes-
sional Standards in PJSC FGC UES’s Activities (Order No. 259 of 6 July
2017), plans were implemented to ensure that employees of PJSC FGC
UES’s branches MPS and EMPS comply with the requirements
of the professional standards mandatory for introduction.
378
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
379
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
1
2
3
4
5
4.6.
Instruction
of the President
of the Russian
Federation
No. Pr-1921
(subcl. “g”,
cl. 1)
of 21 Septem-
ber 2015
Participation
in preparation
of regulatory
documents
for holding
professional
skill champi-
onships
according
to WorldSkills
standards
PJSC FGC UES annually participates in the WorldSkills corporate
championships held by PJSC Rosseti.
In accordance with PJSC Rosseti’s Order No. 185r of 5 April 2019,
PJSC FGC UES participated in the WorldSkills Young Professionals
Open Corporate Professional Skills Championship of PJSC Rosseti
(hereinafter, the “Championship”) from 29 July 2019 to 2 August 2019
at the site of PJSC IDGC Ural (Yekaterinburg).
To prepare and participate in the Championship, PJSC FGC UES is-
sued Order No. 237r of 3 June 2019 On Preparation for the WorldSkill
Championship. 1 Company employee who perform maintenance
and repair of relay protection and automation equipment took part
in the Championship.
Also 2 Company employees, who had undergone the WorldSkills Rus-
sia Expert programme organised by the Union “Agency of Development
of Professional Communities and Skilled Workers” (Worldskills Russia),
took part in the Championship as experts of maintenance
and repair of relay protection and automation equipment.
5.
COnTROL OVeR THe COMpAnY’S ACTiViTieS
5.1.
Instruction
of the Govern-
ment
of the Russian
Federation
No. ISh-
P13-5859
of 31 July
2014
Introduction
of provisions
of the Corpo-
rate Gover-
nance Code
As part of the action plan (roadmap) development related to the intro-
duction of the Corporate Governance Code’s provisions, the Company
came up with and the Board of Directors approved an action plan
aimed at developing corporate governance of PJSC FGC UES for 2016
(Minutes No. 318 of 25 April 2016).
The plan determined a number of key activities for the reporting period,
including analysis of the necessity to update the Company’s internal
and standard documents for the needs of its subsidiaries. In addition,
the development of methods for assessing the corporate governance
of PJSC FGC UES and its subsidiaries, as well as the Regulation
on the Assessment of Activities of the Company’s Board of Directors,
were provided for. Analysis of the corporate governance practice
on the basis of the roadmap implementation was declared as the key
priority of the plan.
The methods for self-assessment of the corporate governance of PJSC
FGC UES were approved by the resolution of the Board of Directors
in April 2016 (Minutes No. 318 of 28 April 2016 ). These methods
were developed based on the methods approved by Order of Rosi-
mushchestvo No. 306 of 22 August 2014 for self-assessment
of the corporate governance in companies with state participation
in order to ensure comparability of the annual self-assessment con-
ducted by the Company.
The methods for self-assessment of the corporate governance of PJSC
FGC UES’s subsidiaries were approved by the resolution of the Board
of Directors (Minutes No. 355 of 20 February 2017).
The Regulation on the Assessment of Activities of the Board of Direc-
tors was approved by the resolution of the Board of Directors (Minutes
No. 318 of 28 April 2016).
As of December 2016, the activities included in the plan were imple-
mented by PJSC FGC UES in full. The Expert Council of the Russian
Government noted positive dynamics while monitoring the implementa-
tion of the Corporate Governance Code in companies with state partici-
pation, and assigned to PJSC FGC UES the fifth place in the ranking.
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
3
4
5
No.
Instruction
1
2
5.1.
5.2.
Instruction
of the President
of the Russian
Federation
No. Pr-1032
of 7 May 2014
Ensuring
the creation
of single
treasuries
of parent
organisations,
subsidiaries,
and affiliates.
PJSC FGC UES continues introducing the best Russian and interna-
tional corporate governance practices to further improve the quality
of corporate governance in the Company.
A new version of the Corporate Governance Code of PJSC FGC UES
was approved by the resolution of the Board of Directors (Minutes
No. 444 of 25 April 2019).
A new version of the Regulation on the Information Policy of PJSC FGC
UES was approved by the resolution of the Board of Directors (Minutes
No. 446 of 26 April 2019).
For more details on development of the Company’s
corporate governance system please refer to section
Corporate Governance Report.
In the course of compliance with the Directive, the existing system
of PJSC FGC UES financial flow management was analysed, and the re-
spective report was compiled with description of key areas of further im-
provement and enhancement of the efficiency of the Unified Treasury
based at PJSC FGC UES, which was further submitted to the Ministry
of Finance of the Russian Federation.
Following the analysis and the Directive, a target structure of the Unified
Treasury at PJSC FGC UES Group was developed,
along with a plan/schedule of actions to create the target structure
of the Unified Treasury at PJSC FGC UES, the implementation of which
led to creation and operation of the Unified Treasury at PJSC FGC UES
in PJSC FGC UES Group.
In 2016, the following activities were implemented by PJSC FGC UES:
– inventory auditing and optimisation of the structure of transaction ac-
counts of PJSC FGC UES’s Executive Office and branches;
– a set of activities aimed at improving the Group’s information structure,
including introducing of the Unified Accounting Treasury System and
tools for the improvement of functions and control efficiency (electronic
storage of documents, electronic digital signatures, automation of op-
erational cash planning);
– headcount optimisation in financial services of the branches (MES,
EMPS) based on the developed model of treasury centralisation
and automation;
– development of internal documents that were new to the Group,
particularly the Regulation on Ensuring Financial Sustainability
of PJSC FGC UES’s Subsidiaries and Other Entities in which PJSC
FGC UES Participates, and the Regulation on Monitoring Activities
of PJSC FGC UES’s Subsidiaries and the Procedure of Its Creation
and Approval.
The Unified Treasury of PJSC FGC UES operates as financial centre
of the Group, i.e.:
– concentrates free liquidity on its accounts;
– takes decisions in relation to time periods and tools for allocation
of temporarily available funds;
– redistributes financial resources between the companies of PJSC FGC
UES Group;
– determines fund-raising forms and performance on the capital market;
– approves and makes payments on behalf of the branches;
– makes over 95% of payments;
– controls the implementation of limits within the framework approved
by the Board of Directors of subsidiaries and monitors the subsidiar-
ies’ cash balances via the corporate financial settlements centre;
380
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
381
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Appendix 4.
[ inFORMATiOn On THe ACTUAL peRFORMAnCe OF inSTRUCTiOnS OF THe pReSidenT And THe RUSSiAn
GOVeRnMenT in 2019 ]
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
No.
Instruction
Registration
data
Summary
of the incom-
ing document
Information on the performance of relevant instructions
and orders by PJSC FGC UES
3
4
5
1
2
3
4
5
No.
Instruction
1
2
5.2.
– as part of financing the investment activities via the corporate
financial settlements centre, controls the timely payment of con-
tractors to subcontractors in accordance with the approved pay-
ment register.
Due to the introduction of the Unified Treasury in PJSC FGC UES
Group, the following quality effects were achieved:
– пimprovement of transparency of treasury processes and
strengthening of financial control in relation to the branches
and subsidiaries;
– increase of timeliness and quality of management decisions related
to management of financial resources;
– increase of business processes efficiency and optimisation of labour
and administrative costs while performing treasury functions;
– decrease of financial risks level.
5.3.
Instruction of the
Russian Gov-
ernment
No. ISh-
P13-321 of 26
January 2015
Analysing an-
nual results of
creating a
unified trea-
sury of the
joint-stock
company, its
subsidiaries
and affiliates
In 2018, PJSC FGC UES’ current financial flow management system
was analysed, including:
– budget planning and monitoring mechanism;
– procedure for selecting credit institutions, banks, and instruments
to finance activities of the Company, its subsidiaries and affiliates;
– documents regulating settlement and cash services.
Based on the analysis, the Company defined main directions for improv-
ing efficiency of PJSC FGC UES’ Unified Treasury.
The Company developed and approved a new Procedure for Intra-Group
Financing of PJSC FGC UES, its Subsidiaries and Affiliates. PJSC FGC
UES’ Executive Office is working to attract external financing. In the
event of cash gaps, the Company’s subsidiaries and affiliates are financed
through intra-group loans. Operating costs, including external debt servic-
ing costs, were significantly reduced through the efficient use of intra-
group financing.
In terms of cash and liquidity management, PJSC FGC UES Group uses
the single account through bank agreements on cash pulling technology
(a virtual pulling for subsidiaries and affiliates in the retained financing and
%; a material pulling for branches on the zero retained financing principle);
a single payment calendar is maintained taking into account payments
of branches and monitoring payments made by the subsidiaries and affili-
ates. All Company payments are made from accounts of PJSC FGC UES’
Executive Office.
PJSC FGC UES approved new limits of credit organisations for the sub-
sidiaries and affiliates. The Company drew up a list of banks where
it is possible to open settlement and other bank accounts and to allocate
free funds, as well as determined end limits for one-time placement
of funds by subsidiaries and affiliates (approved by the Boards of Direc-
tors of the subsidiaries and affiliates). At the same time, more than 98%
of liquidity is concentrated on PJSC FGC UES.
By Letter No. 95-09-11/05-330 of 10 May 2018, the Interregional
Operational Department of the Federal Treasury informed PJSC FGC
UES that information about the creation of unified treasuries is not
required.
5.4.
Instruction
of the Russian
Government
No. ISh-
P13-1925 of 5
April 2018
5.5.
Meeting Minutes
of the National
Council
on Ensuring
Financial
Stability
No. 7 of 10
April 2015
(subcl. 1, cl. 1,
section 1)
Valuation
of intellectual
property rights
to perform fur-
ther proce-
dures for en-
suring legal
protection
of the intellec-
tual property
rights of the
joint-stock
company,
transferring
them to the
balance as in-
tangible assets
for inclusion
in the financial
turnover and
determining
their value,
if necessary
Provision
of payments
in RUB under
new export
contracts
5.6.
Instruction
of the Russian
Government
No. DM-P13-
8pr of 13 Feb-
ruary 2019
Possibility
of transition
to tax control
in the form
of tax moni-
toring
By the resolution of the Board of Directors of PJSC FGC UES (Minutes
No. 426 of 2 November 2018), the Chairman of the Management
Board of PJSC FGC UES was instructed to provide valuation of intel-
lectual property rights to perform further procedures for ensuring
legal protection of the intellectual property rights of PJSC FGC UES,
transferring them to the balance as intangible assets for inclusion
in the financial turnover and determining their value, if necessary.
In accordance with the Instruction of the PJSC FGC UES Board of Di-
rectors stated above, as well as with Order of PJSC Rosseti No. 29
of 5 February 2019 On Valuation of Intellectual Property Rights, valua-
tion of PJSC FGC UES’s intellectual property rights was carried out,
and the results were submitted to PJSC Rosseti by Letter No. 252/164
of 26 July 2019. They are used in management of PJSC FGC UES’s
intellectual property rights.
In accordance with cl. 4, article 8 of Federal Law No. 35-FZ of 26 March
2003 On the Electric Power Industry, PJSC FGC UES, as the Unified
National Electric Grid management company, is prohibited to provide pur-
chase and sale of electricity and capacity (excluding purchase of electricity
(capacity) for its own (production) needs, purchase of electricity (capacity)
to compensate losses in electric grids and technological provision of coop-
eration of Russian electric power system and electric power systems of for-
eign countries, as well as in cases and in order determined by the Russian
Government, when performing functions of a guaranteed supplier).
Under the Treaty on the Eurasian Economic Union of 29 May 2014,
“export” means export of goods from the customs territory of the Union t
o third countries without the obligation of re-import. Under the Customs
Code of the Eurasian Economic Union, “export” means a customs proce-
dure, upon which goods of the customs union are exported outside of the
customs territory of the union and are intended to be located permanently
outside it. Registration of goods in the export mode is carried out by submit-
ting a goods declaration in accordance with the requirements for the cus-
toms export procedure to the customs authority of the Russian Federation.
PJSC FGC UES does not export electricity from Russia or submit dec-
larations for the electricity to the customs authority of the Russian Fed-
eration. PJSC FGC UES has not concluded or plan to conclude export
contracts for electricity supply. PJSC Inter RAO and PJSC TGC-1 carry
out the activities stated above.
In response to request of the Ministry of Energy of Russia No. 08-718
of 24 April 2019 about entering into the tax monitoring of companies with
state participation, PJSC FGC UES sent Letter No. TS-2871 of 29 April 2019
about PJSC FGC UES transition to tax monitoring since 1 January 2020.
Within the procedure of transition to tax control in the form of tax moni-
toring, a tax monitoring application was sent to Interregional Inspection
of the Federal Tax Service of Russia for Major Taxpayers No. 6 (Letter
No. NA-4217 of 28 June 2019).
Resolution No. 19-06/09 of 31 October 2019 on PJSC FGC UES tax
monitoring in 2020 was received from Interregional Inspection of the
Federal Tax Service of Russia for Major Taxpayers No. 6.
382
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
383
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
APPENDIX 5.
Information on the participation of PJSC FGC UES
in the activities of subsidiaries, affiliates and other business
entities in 2019 (profit and non-profit organisations)
GRI 102-13
INFORMATION ON PARTICIPATION OF PJSC FGC UES
IN PROFIT ORGANISATIONS AS OF 31 DECEMBER 2019
Company’s abbreviated
name(1)
No.
Region of operation
1
2
3
Core activity
4
1. Information on subsidiaries with PJSC FGC UES’ stake in the authorised capital
from 50% + 1 share to 100%
1.
JSC MUS Energetiki
1.1. Core subsidiaries
Moscow, Saint Petersburg, the Republic of Burya-
tia, the Republic of Mari El, the Republic of Mordo-
via, the Udmurt Republic, the Republic of Khakas-
sia, Krasnodar Territory, Krasnoyarsk Territory,
Perm Territory, Primorsky Territory, Stavropol Ter-
ritory, Khabarovsk Territory, Amur Region, Volgo-
grad Region, Vologda Region, Kemerovo Region,
Kirov Region, Novosibirsk Region, Omsk Region,
Orenburg Region, Penza Region, Rostov Region,
Samara Region, Saratov Region, Sverdlovsk
Region, Tambov Region, Tomsk Region, Tula
Region, Tyumen Region, Ulyanovsk Region, Che-
lyabinsk Region, Yaroslavl Region, Khanty-Mansi
Autonomous Area — Yugra
Organisation, development and operation
of distributing networks in the fuel and en-
ergy sector
2.
JSC NTC FGC UES
Moscow, Novosibirsk, Vladivostok
3.
JSC TsIUS UES
Moscow, Saint Petersburg, Yekaterinburg,
Krasnoyarsk, Khabarovsk, Surgut, Zheleznovodsk
Research, development, design and survey
works; provision of expert services in the
field of electric power
Project management in the field of con-
struction (including acting as the customer
and developer, provision of engineering
services related to construction, renova-
tion and technical re-equipment of techni-
cally demanding facilities)
4.
JSC ESSK UES
Moscow, Saint Petersburg, Yekaterinburg,
Krasnoyarsk, Samara, Khabarovsk, Surgut,
Zheleznovodsk
Organisation of procurement procedures
for selecting suppliers, contractors
and workers
5.
JSC Electrosetservice
UNEG
Moscow, Moscow Region, Ryazan Region,
Novgorod Region, Novosibirsk, Ulyanovsk Region,
Pyatigorsk, Yekaterinburg, Khabarovsk, Surgut
Diagnostics, maintenance, repair
and emergency repair works at grids
and facilities of the UNEG electric grid
economy and other persons having elec-
tric power facilities, both connected and
not connected to the UNEG, on the right
of ownership or on other basis provided
for by federal laws
Share
of PJSC FGC
UES in the
Company’s au-
thorised capital
as of 31 Decem-
ber 2019
Financial indicators for 2019
Revenue,
RUB thousand
Net profit,
RUB thousand
Amount of divi-
dends paid
on the Compa-
ny’s shares
owned by PJSC
FGC UES in the
reporting year,
RUB thousand
The Compa-
ny’s charity
and sponsor-
ship support
expenses in
2019, RUB
thousand
Purpose of participation
5
6
7
8
9
10
1. Information on subsidiaries with PJSC FGC UES’ stake in the authorised capital
from 50% + 1 share to 100%
1.1. Core subsidiaries
Support for PJSC FGC UES’
core business
100.00%
1,286,974
-21,616
11,879
0
Support for PJSC FGC UES’
core business
Support for PJSC FGC UES’
core business
Support for PJSC FGC UES’
core business
Support for PJSC FGC UES’
core business
100.00%
3,031,184
123,551
23,889
100.00%
8,440,212
-845,425
36,163
100.00%
199,255
28,521
36,862
100.00%
3,582,477
4,772
0
0
0
0
0
384
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
385
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
1
6.
7.
8.
9.
Company’s abbreviated
name(1)
No.
Region of operation
2
Index Energetiki —
FGC UES LLC
3
Moscow
Core activity
4
Operations with securities
FGC – Asset
Management LLC
Moscow
Operations with securities
JSC Kuban Trunk Grids
Krasnodar Territory
JSC Tomsk Trunk Grids
Tomsk Region
Provision of electric power transmission
and technological connection services
Provision of electric power transmission
and technological connection services
10.
JSC Mobile GTES
Moscow, Moscow Region, the Republic of Crimea,
Sevastopol, Krasnodar Territory
Electricity production
1.2. Non-core subsidiaries
11.
JSC ChitaTechEnergo
Chita, Ulan-Ude, Far Eastern Federal District
(Amur Region), Western Siberia, the Republic
of Sakha (Yakutia)
Telecommunication activities, design
and operation of communication lines
12.
JSC APBE
Moscow, Kostroma Region, Smolensk Region,
Yaroslavl Region.
13.
IT Energy Service LLC
Moscow
Metrological support of the automated
information and measuring system
for commercial electricity metering
(AIMS CEM)
Advise on computer hardware, develop-
ment of software and provision of consult-
ing services in this area
14.
JSC Nurenergo
(2)
(2)
Share
of PJSC FGC
UES in the
Company’s au-
thorised capital
as of 31 Decem-
ber 2019
Financial indicators for 2019
Revenue,
RUB thousand
Net profit,
RUB thousand
Amount of divi-
dends paid
on the Compa-
ny’s shares
owned by PJSC
FGC UES in the
reporting year,
RUB thousand
The Company’s
charity and
sponsorship
support expens-
es in 2019, RUB
thousand
6
7
100.00%
8
0
9
1,709
10
0
100%
298,823
1,055,946
100%
593,908
89,291
341
0
90.48%
429,809
281,485
5,207
1.2. Non-core subsidiaries
100.00%
2,600,057
28,556
191,916
100.00%
561,210
70,889
7,106
100.00%
1,512
314,951
0
80.000000001%
765,056
59,417
6,968
0
0
0
0
0
0
0
0
76.9996%
(2)
(2)
0
(2)
Purpose of participation
5
The stake in the Company’s autho-
rised capital was obtained in accor-
dance with the separation balance
sheet of JSC RAO UES of Russia
upon the merger of JSC RAO UES
of Russia with JSC FGC UES during
the companies reorganisation
on 1 July 2008.
Asset accumulation (securities, stakes
in authorised capitals of business enti-
ties) for PJSC FGC UES
Consolidation and management
of UNEG facilities
Consolidation and management
of UNEG facilities
The shares were obtained in accor-
dance with the separation balance
sheet of JSC RAO UES of Russia
upon the merger of JSC RAO UES
of Russia with JSC FGC UES during
the companies reorganisation
on 1 July 2008.
The shares were acquired through
the reorganisation of JSC Chita Trunk
Grids, who holds 100% of the Compa-
ny's shares, by merging with JSC FGC
UES on 1 July 2008.
The shares were obtained in accor-
dance with the separation balance
sheet upon the merger of JSC RAO
UES of Russia with JSC FGC UES
during the companies reorganisation
on 1 July 2008.
The shares were obtained in accor-
dance with the separation balance
sheet of JSC RAO UES of Russia
upon the merger of JSC RAO UES
of Russia with JSC FGC UES during
the companies reorganisation
on 1 July 2008.
Shares of the additional issue were re-
ceived to repay loans previously grant-
ed to the Company. Resolution of JSC
FGC UES' Board of Directors of 20
May 2004 (Meeting Minutes No. 15)
386
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
387
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
Company’s abbreviated
name(1)
No.
Region of operation
1
2
3
Core activity
4
Share
of PJSC FGC
UES in the
Company’s au-
thorised capital
as of 31 Decem-
ber 2019
Financial indicators for 2019
Revenue,
RUB thousand
Net profit,
RUB thousand
Amount of divi-
dends paid
on the Compa-
ny’s shares
owned by PJSC
FGC UES in the
reporting year,
RUB thousand
The Company’s
charity and
sponsorship
support expens-
es in 2019, RUB
thousand
Purpose of participation
5
6
7
8
9
10
2. Information on affiliates with PJSC FGC UES’ stake in the authorised capital from 20 to 50%
2. Information on affiliates with PJSC FGC UES’ stake in the authorised capital from 20 to 50%
15.
JSC IPS SakRusenergo
2.1 Core affiliates
Georgia; on the territory of the Russian Federa-
tion: Karachay-Cherkess Autonomous Region,
Krasnodar Territory
2.2 Non-core affiliates
16.
JSC ENIN
Moscow
Electric power transmission services
Development of PJSC FGC UES’
core business
Research, development, design, survey,
technological, process and other associat-
ed works in the field of electric power
The shares were obtained in accor-
dance with the separation balance
sheet of JSC RAO UES of Russia upon
the merger of JSC RAO UES of Russia
with JSC FGC UES during the compa-
nies reorganisation on 1 July 2008.
2.1 Core affiliates
50.00%
675,635(3)
273,421(3)
2.2 Non-core affiliates
38.239%
79,659
–65,140
0
0
0
0
3. Information on business entities with PJSC FGC UES’ stake in the authorised capital from 2 to 20%
3. Information on business entities with PJSC FGC UES’ stake in the authorised capital from 2 to 20%
3.1. Core entities
3.1. Core entities
17.
PJSC Inter RAO
Constituent entities of the Russian Federation,
Georgia, China, Cuba, Latvia, Lithuania, Poland,
Finland, Ecuador
Electricity and heat production,
supply (sale) of electricity and heat
Financial investments
8.569%
55,106,433
21,786,760
1,441,616
No data(4)
18.
JSC ACRA
Moscow
Rating activities
Financial investments
3.704%
(4)
19. CJSC EnergoRynok
Moscow
Publishing
Financial investments
8.50%
(4)
3.2. Non-core entities
3.2. Non-core entities
(4)
(4)
0
0
(4)
(4)
4. Information on business entities with PJSC FGC UES’ stake in the authorised capital of less than 2%
4. Information on business entities with PJSC FGC UES’ stake in the authorised capital of less than 2%
20.
PJSC Rosseti
Constituent entities of the Russian Federation
Management of holding companies
Financial investments
0,151 %
No data(4)
No data(4)
21 100
No data(4)
4.1. Core entities
4.1. Core entities
21. CJSC TaigaEnergoStroy
Krasnoyarsk Territory
Electric power transmission services, ad-
vise on business and management issues,
including acting as the customer in build-
ing and structure construction, building
and structure construction activities
Development of PJSC FGC UES’
core business
0.00067 %
(1 share)
0
-50,378
0
0
(1) data on the companies’ names as of 31 December 2019.
(2) bankruptcy proceedings were initiated against the Company; the Company did not conduct any business activities
(3) at the exchange rate of the National Bank of Georgia as of 31 December 2019: RUB 100 = GEL 4.6423.
(4) information was not provided as of 28 February 2020.
in 2019.
388
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
389
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
INFORMATION ON PARTICIPATION OF PJSC FGC UES
IN NON-PROFIT ORGANISATIONS AS OF 31 DECEMBER 2019
No. NPO
Brief profile (activities)
1.
2.
All-Russian industrial
association of employers
in energy sector «Em-
ployers Russian Associa-
tion of Energy» (Associa-
tion «ERA of Energy»)
Representing the interests of employers in the electric power industry, protection of their rights
in public and local authorities and in relations with trade unions.
Representing the interests of employers in the electric power industry in negotiating and conclud-
ing industrial tariff agreements (ITAs) and other agreements regulating social and labour and oth-
er related relations.
Non-profit partnership
Council of Energy Indus-
try Veterans
Implementation of activities aimed at providing comprehensive assistance to energy industry
veterans.
3.
NP«CTSCenter UES»
Training and research activities.
4.
Construction Industry
Companies Support
Syndicate (SRO ASO
POSO)*
* — transition on a territo-
rial basis in accordance
with Federal Law
No. 372-FL on Amend-
ments to the Urban De-
velopment Code of the
Russian Federation
and Certain Legislative
Acts of the Russian Fed-
eration of 3 July 2016
5.
Association
«NP Market Council»
SRO ASO POSO is a non-profit corporate organisation established to coordinate business activi-
ties, represent and protect common interests, including professional, to achieve socially useful
objectives, as well as other lawful and non-profit purposes, and to unite legal entities and individ-
ual entrepreneurs carrying out their activity in the field of construction, renovation, and overhaul
of capital construction facilities.
In accordance with clause 1, Article 33 of Federal Law No. 35-FZ on Electric Power Industry
of 26 March 2003, “NP Market Council” was established aimed to ensure operation of the mar-
ket’s commercial infrastructure, provide effective interconnection of wholesale and retail markets,
creation of favourable conditions for attracting investments to the electric power industry and
availability of a common position of the wholesale and retail markets’ participants in the course
of development of regulatory documents for the electric power industry, organise effective whole-
sale and retail trade of electricity, capacity, and other products and services allowed for circula-
tion on the wholesale and retail markets based on self-regulation, in order to ensure the energy
security of Russia, integrity of the economic area, freedom of economic activities and competition
on the wholesale and retail markets, to strike a balance of the interests of producers and buyers
of electricity and capacity, meeting public needs for reliable and sustainable electricity supply.
Term
of participation
Since 2004
to the present
day
Since 2008
to the present
day
Since 2007
to the present
day
Since 30 June
2017 to the pre-
sent day
Purpose of participation
Financial participation
(types of payments/amount)
Participation in preparation of ITAs and its use in the preparation of PJSC FGC
UES’ regulatory documents.
Membership fee per year —
RUB 2,450.00 thousand.
Guaranteed ITA use in tariff regulation.
Receiving informational, advisory and other support in matters of social and labour
and other related relations from Association «ERA of Energy».
Preservation of historical memory and traditions in the electric power industry.
Use of professional knowledge and experience of veterans in developing solu-
tions to ensure reliable operation and development of the power grid complex.
Membership fee per year —
RUB 20,000.00 thousand.
Financial support of veterans.
Development of public and private partnership in the field of personnel training
in the electric power industry.
Membership fee per year —
RUB 950.00 thousand.
Compliance with the requirements of Russian legislation. As part of PJSC
FGC UES’s investment activities, its MES branches perform construction
and installation operations in-house. These activities are regulated by federal
statutes — Urban Development Code of the Russian Federation No. 190-FZ
of 29 December 2004.
Since 2008
to the present
day
Support of electricity and capacity purchases in order to compensate for loss-
es in the UNEG grids in accordance with Federal Law No. 35-FZ On Electric
Power Industry of 26 March 2003.
Total from 1 January 2018
to 31 December 2018 — RUB
105.00 thousand (VAT exempt),
including:
– Membership fee for Q1, Q2,
Q3 and Q4 2018 — RUB
25.00 thousand. Total per
year: RUB 100.00 thousand.
– target membership fee for the
payment of mandatory annual
membership fee of SRO ASO
POSO to the National associ-
ation of builders, NOSTROY —
RUB 5.00 thousand.
Membership fees to the Asso-
ciation «NP Market Council»
property:
2018 — RUB 1,880.00
thousand
6.
Association of Real
Estate Investors (AREI)
AREI is an association that unites companies who own land and real estate, as well as invest
in real estate in Russia. Its members are institutional investors operating on the real estate mar-
ket and other enterprises owning and managing profitable real estate, as well as carrying out fi-
nancial investments in real estate, and other companies serving the needs of such enterprises.
Since 2004
to the present
day
Participants of AREI are PJSC FGC UES, PJSC Gazprom, PJSC «MMC “Norilsk
Nickel”», PJSC Rosneft, PJSC HydroOGK, PJSC RZD, and others.
Membership fee per year —
RUB 300.00 thousand.
AREI carries out activities to prepare and amend legislative acts of the Russian
Federation in the field of land and property relations in the interests of its partici-
pants, represents the interests of AREI members against municipal and federal
authorities and responsible persons that determine the state policy on the market
of land and investments in real estate, and together with its members participates
in public events and procedures for developing the real estate and land market.
390
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
391
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
No. NPO
Brief profile (activities)
7.
Russian National Com-
mittee of the International
Council on Large Electric
Systems
The International Council on Large Electric Systems, CIGRE (Conseil International des Grands
R seaux Electriques, CIGRE) is the biggest international non-governmental and non-profit
organisation in the field of electric power industry.
It was founded in France in 1921. Today it is one of the most reputable scientific and technical
associations that unites scientists and energy specialists from around the world and has a strong
influence on the development of the industry’s strategy in many countries.
The CIGRE’s headquarter is located in Paris. At present, Klaus Froehlich (Switzerland) is the
President of CIGRE. Since May 2014, Philippe Adam (France) has been appointed as the new
Secretary General.
According to its Articles of Association, the CIGRE’s major goal is to coordinate researches
and share the experience and scientific and technological information related to functioning
of electric power systems. Design, construction, and maintenance of HV equipment are at the
core of CIGRE’s mission, as well as planning and operation of power systems, development
and implementation of new technology for information collection and processing and manage-
ment systems.
The CIGRE’s activities form strategic vision on the power system development for the energy
policy and are closely connected with the scientific research and development, defining the key
directions in the integration process.
To date, over 1,000 organisations and 7,000 experts involved with all areas of the electric power
industry are members of CIGRE. The main organisational principle of CIGRE is operating via
national committees that unite industry companies and institutions of their countries or region.
At present CIGRE counts members in 95 countries.
8.
SRO NP PeterburgEner-
goAudit
SRO NP PeterburgEnergoAudit controls its members’ activities related to compliance with the re-
quirements of Russian legislation, as well as internal documents of SRO by means of scheduled
and unscheduled inspections.
The Supervisory Committee of SRO NP PeterburgEnergoAudit controls the compliance
of SRO members with the requirements of current legislation and internal documents of SRO.
Scheduled inspections of activities of each member are performed at least once a year in accor-
dance with the calendar of scheduled inspections.
The grounds for unscheduled inspections are:
• inquiry of federal state authorities, state authorities of constituents of the Russian Federation
or local authorities;
• an individual’s complaint due to the actions (inaction) of a SRO member, except for anonymous
complaints;
• resolution of SRO’s management bodies and(or) its specialised bodies.
If a SRO member violates the requirements of SRO’s standards, rules and membership condi-
tions, all inspection materials shall be submitted to the Disciplinary Committee of SRO NP Peter-
burgEnergoAudit to consider the cases on taking disciplinary action against the SRO member.
9.
Non-profit Partnership
Scientific and Technical
Council of Unified
Energy System
Non-profit Partnership Scientific and Technical Council of Unified Energy System was established
on 20 May 2008 after liquidation of JSC RAO UES of Russia and taking a decision to keep the Sci-
entific and Technical Council of Unified Energy System as a separate legal entity (Minutes of the
Board of Directors of JSC RAO UES of Russia No. 273 of 29 February 2008).
In accordance with the establishing minutes of Non-profit Partnership Scientific and Technical Coun-
cil of Unified Energy System, PJSC FGC UES is a member of the Supervisory Board of the partner-
ship, which is a permanently acting collegial management body of the partnership, and performs
overall management of the partnership’s activities.
Along with PJSC FGC UES, Non-profit Partnership Scientific and Technical Council of Unified Ener-
gy System includes the following key enterprises of the industry: JSC SO UES, PJSC Rosseti, PJSC
RusHydro, and PJSC Inter RAO UES.
Term
of participation
Purpose of participation
Since 2005
to the present
day
• Learning new practices and the best technologies for managing power sys-
tems and producing electric equipment for the purpose of implementing im-
port substitution programmes adopted at PJSC FGC UES.
Financial participation
(types of payments/amount)
EUR 40,000 annually,
VAT exempt.
• Timely identification of risks and threats based on the international experi-
ence, facilitating the identification of ways to mitigate them, which includes
attracting the world’s leading specialists and share of experience with part-
ners at international sites.
• Improving the quality of long-term planning of scientific and technical activi-
ties of PJSC FGC UES by means of analysing international experience and
developing analytical models and creating favourable conditions for using
state-of-the-art international developments and technologies for the benefit
of PJSC FGC UES and the power grid complex of the Russian Federation.
• Increasing the efficiency of operating activities PJSC FGC UES, within the
framework of CIGRE, interacts with foreign electric grid companies in terms
of sharing experience in operation of electrical equipment.
Since 2011
to the present
day
The possibility of conducting mandatory energy inspections of PJSC FGC UES
using its own resources partially or completely. The measuring stage of the man-
datory energy inspection of PJSC FGC UES in 2017 was performed by the staff
of the branches only which allowed to reduce the inspection costs.
Membership fee — RUB 18.00
thousand (incl. VAT), quarterly.
Since 2008
to the present
day
Participation of PJSC FGC UES in consideration of issues relevant to the indus-
try and the Company regarding engineering (technology) development, regula-
tory and technical documentation and policy documents on development.
Membership fee per year —
RUB 2,000.00 thousand
(VAT exempt).
Formation of scientifically-grounded technical policy, analytical and expert sup-
port of projects, analysis of scientific and technical and innovative activities
of PJSC FGC UES, and identification of current trends in the development
of the power grid complex are necessary for the creation of PJSC FGC UES’
targeted development programmes.
392
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
393
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
APPENDIX 5.
[ INFORMATION ON THE PARTICIPATION OF PJSC FGC UES IN THE ACTIVITIES OF SUBSIDIARIES, AFFILIATES
AND OTHER BUSINESS ENTITIES IN 2019 (PROFIT AND NON-PROFIT ORGANISATIONS) ]
No. NPO
Brief profile (activities)
Term
of participation
Purpose of participation
Financial participation
(types of payments/amount)
The areas of the partnership’s activities include review and decision-making of the most significant
issues involving operations of UES and its entities:
– expert review of various projects and works;
– analysis of the UES development concept and strategy;
– new engineering solutions and technology;
– priority development areas of the industry;
– R&D programmes;
– technical regulation and standardisation;
– publishing and other activities.
10.
Global Energy
Association
The Global Energy Association is a highly regarded and renowned organisation. The organisa-
tion’s key focus is the support of research and innovation projects in the field of global energy,
and management of the international award Global Energy Prize.
Since 2002
to the present
day
Support of research and innovation in the field of power industry.
Membership fee per year —
RUB 58,200.00 thousand
(VAT exempt).
The Global Energy Association defines the world’s leading researchers deserving the award,
the most interesting and useful projects, surveys, and inventions, and operates with the support
of the leading Russian energy companies: PJSC Gazprom, JSC Surgutneftegas, and PJSC
FGC UES.
The Global Energy Prize was established in 2002 at the initiative of a group of famous Russian
scientists and supported by the President of Russia. In November 2002, at the Russia–EU sum-
mit Russian President Vladimir Putin announced on inception of this new scientific award.
The new international prize very quickly became one of the most famous and prestigious awards
of its kind. Sometimes mass media unofficially names it the Energy Nobel.
11.
All-Russian Industry
Association of Employers
«Union of Machine Build-
ers of Russia»
One of the major goals of the association is to establish a development strategy for the engineer-
ing industry of Russia, to participate in establishing active governmental policy mechanisms
for modernisation and development of the national engineering network at the leading industrially
developed countries level.
Its governing bodies includes representatives of PJSC RZD, PJSC OAK, JSC Rosoboroneksport,
MC ROSNANO, PJSC KAMAZ, JSC Scientific Industrial Corporation Uralvagonzavod, JSC Unit-
ed Shipbuilding Corporation, PJSC United Aircraft Corporation, etc.
Rostech’s facilities comprise the basis of the Union of Machine Builders of Russia. They have
a significant potential to implement measures for import substitution and digitalisation
of the economy.
Since 2018
to the present
day
Partnership in terms of digitalisation of the energy sector, industrial innovation,
development and implementation of information and telecommunication tech-
nologies and security systems for power grid enterprises complex. The inter-
action of FGC UES with the Union of Machine Builders of Russia implies con-
stant sharing of information, joint activities, development of proposals to
improve the legal framework and cooperation with the authorities, providing
comprehensive assistance to power engineers, etc.
None
12.
The Russian Union
of Industrialists and En-
trepreneurs (RSPP)
The main objectives of RSPP include improving the business environment of Russia, raising
the status of domestic entrepreneurs in the country and in the world, and maintaining the balance
of interests of the society, government and business. 400 organisations representing the key eco-
nomic industries are members of the RSPP.
Since 2018 to
the present day
Joining RSPP allowed PJSC FGC UES to participate in influencing the eco-
nomic policy and in furthering legislative initiatives of the association
with the trunk electric grid network interests taken into account.
Membership fee per year —
RUB 300.00 thousand
(VAT exempt).
394
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
395
APPENDIX 6.
[ INFORMATION ON CONCLUDED CONTRACTS OF SALE OF INTEREST, SHARES, EQUITIES OF BUSINESS PARTNERSHIPS
AND COMPANIES, INCLUDING INFORMATION ON THE PARTIES, SCOPE, PRICE AND OTHER CONDITIONS OF SUCH
CONTRACTS. ]
APPENDIX 6.
Information on concluded contracts of sale of interest,
shares, equities of business partnerships and companies,
including information on the parties, scope, price and other
conditions of such contracts
APPENDIX 7.
[ INFORMATION ON SALE OF NON-CORE ASSETS IN 2019 ]
APPENDIX 7.
Information on sale of non-core assets in 2019
In 2019, FGC UES signed the following contracts for the disposal of its shares:
• On 18 March 2019, a share purchase contract was concluded between PJSC FGC UES (Seller) and CJSC «VEA Vremya» (Buyer):
The Programme for Disposal of Non-Core Assets of PJSC FGC UES and its subsidiaries (hereinafter, the «Programme for Disposal
of NA») has been developed in accordance with Instruction of the Russian Government No. 6604p-P13 of 15 September 2017 and
approved by the resolution of the Board of Directors of PJSC FGC UES on 22 May 2018 .
In order to improve the efficiency of non-core assets management, PJSC FGC UES approved the following documentation as part of
the programme development:
• Procedure for Organising Sales of Non-Core Asset of PJSC FGC UES and its subsidiarie2;
Closed Joint-Stock Company North-Eastern Energy Company OGRN 1027739213622
• Procedure for Gratuitous Transferring (Giving) Non-Core Assets of PJSC FGC UES to the Property of Public Law Entities3;
Issuer
Issuer's location
3 Serebryanichesky Lane, Bld. 1, Moscow, 109028, Russian Federation
Type, category, share form
ordinary registered uncertified shares
Share issue state registration number
1-01-85576-N
Amount of shares (pieces)
98,000 (ninety-eight thousand) pieces
Share nominal value
RUB 100 (one hundred) per share
Keeper of the Issuer's shareholders
register
Joint Stock Company «Independent Registrar Company R.O.S.T.»
Share storage
Share value
The Seller's securities account in DKT LLC
RUB 157 (one hundred fifty-seven) and 20 kopecks
• On 24 July 2018, a share purchase contract was concluded between PJSC FGC UES (Seller) and D.V. Dukhanin (Buyer)1:
Issuer
Issuer's location
Joint Stock Company Ispytatelny Stend Ivanovskoy GRES, OGRN 1043700611778
1 Komsomolskaya Street, Komsomolsk, Ivanovo Region, 155150, Russian Federation
Type, category, share form
ordinary registered uncertified shares
Share issue state registration number
1-02-10002-А
Amount of shares (pieces)
2,999,860 (two million nine hundred ninety-nine thousand eight hundred sixty) pieces
Share nominal value
RUB 0.68 (zero point sixty-eight hundredth) per share
Keeper of the Issuer's shareholders
register
JSC STATUS
Share storage
Share value
The Seller's securities account in DKT LLC
RUB 434,000 (four hundred thirty four thousand) and 00 kopecks
1 The shares were transferred to the Buyer on 11 March 2019.
• Methodological Recommendations for filling in the following forms4:
1. Register of Non-Core Assets.
2. Report on the Implementation of the Register of Non-Core Assets.
3. Action Plan for Disposal of Non-Core Assets.
4. Register of Cash Generating Units of Management Accounting.
• Procedure for identification of non-core assets of PJSC FGC UES and preparation of supporting materials to form and update the
Register of Non-Core Assets of PJSC FGC UES5;
• Order No. 348 On Selection of Persons Responsible for the Implementation of the Programme for Disposal of Non-Core Assets of
PJSC FGC UES and its Subsidiaries of 2 October 2019.
Under the Programme for Disposal of NA and for the purposes of its implementation, the Company carries out development and
maintenance of the Register of Non-Core Assets of PJSC FGC UES.
In accordance with the Programme for Disposal of NA and for the purposes of its implementation, the Company’s Board approves or
amends the Register of Non-Core Assets of PJSC FGC UES at least once a year.
In 2019, the Register of Non-Core Assets of PJSC FGC UES, approved by the resolution of the Company’s Board of Directors (extracts
from the Meeting Minutes of PJSC FGC UES’ Board of Directors No. 425/1 of 1 November 2018 and No. 462/2 of 6 August 2019).
Description of the Programme for Disposal of NA
The Programme for Disposal of NA has been developed to comply with Order of the Government of the Russian Federation No. 894-r
of 10 May 2017, as well as in accordance with Russian legislation and the Company’s Articles of Association. It is the Company’s
internal document that defines key approaches, principles and the mechanism of identification and disposal of non-core assets of
PJSC FGC UES and its subsidiaries.
The Programme for Disposal of NA sets the criteria according to which the assets of PJSC FGC UES and its subsidiaries are
determined as non-core ones, the procedure for maintaining the Register of Non-Core Assets, and the general provisions on non-
core asset disposal.
Key principles applied by the Company to implement the Programme
for Disposal of NA:
• transparency: public availability of information on the methods of and approaches to non-core asset identification in the asset
portfolio;
• consistency: regular review of the asset portfolio to identify non-core assets;
• clarity: open and public procedures for selling non-core assets and disclosing information on such sales in a way that potential
buyers could access it;
• efficiency: reasonable from the economic point of view sale of non-core assets;
• revenue maximisation: sale of non-core assets on a reimbursable basis;
• cost minimisation: reduction of maintenance costs of non-current assets.
1 The extract of Meeting Minutes of PJSC FGC UES’ Board of Directors No. 404/1 of 25 May 2018;
2 The extract of Meeting Minutes of PJSC FGC UES’ Board of Directors No. 404/1 of 22 May 2018;
3 Approved by Order of PJSC FGC UES No. 377 of 5 October 2018
4 Approved by Order of PJSC FGC UES No. 555r of 15 November 2018;
5 Approved by Order of PJSC FGC UES No. 399 of 11 November 2018;
396
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
397
APPENDIX 7.
[ INFORMATION ON SALE OF NON-CORE ASSETS IN 2019 ]
APPENDIX 7.
[ INFORMATION ON SALE OF NON-CORE ASSETS IN 2019 ]
The Company’s key targets for selling non-core assets:
• optimising the asset composition and structure;
• improving assets utilisation efficiency;
• reducing costs related to non-core assets maintenance and management;
• attracting additional financing sources;
• improving the competitiveness and investment attractiveness;
• adding the value.
The Company’s key goals in managing non-core assets:
• reviewing the asset portfolio to identify non-core assets;
• creating and maintaining the Register of Non-Core Assets;
• arranging activities on non-core assets disposal in accordance with the Company’s Programme for Disposal of NA, internal
organisational and regulatory documents and the Register of Non-Core Assets approved by the Board of Directors;
• supervising the execution of resolutions related to non-core assets disposal and submitting reports on the implementation
of the Programme for Disposal of NA.
Information on disposal of non-core assets of PJSC FGC UES in 2019
Balance
sheet line,
where the
asset was
reflected
on the re-
porting date
preceding
the date
of disposal
4
1172
Accounting
entry (includ-
ing itemisa-
tion) that
shows income
and expendi-
ture from the
asset disposal
Asset
book value
(RUB ths.)
Actual dis-
posal pro-
ceeds
(RUB ths.)
Difference
between
actual dis-
posal pro-
ceeds and
the asset
book value
(RUB ths.)
Cause
of the deviation
between
actual disposal
proceeds
and the asset
book value
5
6
7
8
9
49,290.85
2,797.88
9110021201
9120031211
9120031231
–46,492.97 Disposal
by means
of public
offering
1
1.
Asset
2
220/110/10 kV
Severnaya SS
Asset number
(if applicable)
3
–
2.
Romanovo amplifying communication station
2.1.
2.2.
2.3.
Facility Romano-
vo amplifying
communication
station produc-
tion facility
42х12, area —
661.2 sq. m
Facility Romano-
vo amplifying
communication
station K-T2-400
transformer sub-
station, area —
36.7 sq. m
Facility Romano-
vo amplifying
communication
station POL s
torage facility,
area — 9.5 sq. m
0702-1-11-00640 1132
9110021101/
9120031110
1,389.33
647.19
–742.14
0702-1-11-00641
1132
9110021101/
9120031110
11.98
9.30
–2.68
0702-1-11-00639
1132
9110021101
0.00
35.93
35.93
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Balance
sheet line,
where the
asset was
reflected
on the re-
porting date
preceding
the date
of disposal
Accounting
entry (includ-
ing itemisa-
tion) that
shows income
and expendi-
ture from the
asset disposal
Difference
between
actual dis-
posal pro-
ceeds and
the asset
book value
(RUB ths.)
Cause
of the deviation
between
actual disposal
proceeds
and the asset
book value
Asset
book value
(RUB ths.)
Actual dis-
posal pro-
ceeds
(RUB ths.)
Asset number
(if applicable)
3
4
5
6
7
8
9
0100-1-13-00487
1132
9110021501/
9120031110
1,051.94
960.50
–91.44
0100-1-13-00480
1132
9110021501/
9120031110
1,045.91
943.60
–102.31
0100-1-13-00483
1132
9110021501/
9120031110
1,042.90
952.00
–90.90
0100-1-13-00477
1132
9110021501/
9120031110
1,039.88
770.50
–269.38
0100-1-13-00474
1132
9110021501/
9120031110
1,021.80
926.25
–95.55
0505-2-15-04027
1133
0100-1-13-00246
1133
9110021101/
9120031110
9110021101/
9120031110
11,949.35
7,359.75
–4,589.60
2,895.93
1,353.45
–1,542.48
0100-1-13-00181 1133
9110021101/
9120031110
2,655.76
1,451.10
–1,204.66
0100-1-13-00224
1133
9110021101/
9120031110
1,844.19
1,221.00
–623.19
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
1
3.
4.
5.
6.
7.
8.
9.
10.
11.
Asset
2
Apartment,
purpose:
housing Area:
34.9 sq. m
(total) Floor: 8.
Apartment,
purpose:
housing Area:
34.7 sq. m
(total) Floor: 5.
Apartment,
purpose:
housing Area:
34.6 sq. m
(total) Floor: 7.
Apartment,
purpose:
housing Area:
34.5 sq. m
(total) Floor: 4.
Apartment,
purpose:
housing Area:
33.9 sq. m
(total) Floor: 2.
Beneteau
Antares 42
motor yacht
Apartment,
purpose:
housing Area:
91.7 sq. m
(total) Floor: 5.
Apartment,
purpose:
housing Area:
83.1 sq. m
(total) Floor: 10.
Apartment,
purpose:
housing Area:
59 sq. m (total)
Floor: 6.
398
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
399
APPENDIX 7.
[ INFORMATION ON SALE OF NON-CORE ASSETS IN 2019 ]
APPENDIX 7.
[ INFORMATION ON SALE OF NON-CORE ASSETS IN 2019 ]
Balance
sheet line,
where the
asset was
reflected
on the re-
porting date
preceding
the date
of disposal
Accounting
entry (includ-
ing itemisa-
tion) that
shows income
and expendi-
ture from the
asset disposal
Difference
between
actual dis-
posal pro-
ceeds and
the asset
book value
(RUB ths.)
Cause
of the deviation
between
actual disposal
proceeds
and the asset
book value
Asset
book value
(RUB ths.)
Actual dis-
posal pro-
ceeds
(RUB ths.)
Asset
Asset number
(if applicable)
Balance
sheet line,
where the
asset was
reflected
on the re-
porting date
preceding
the date
of disposal
Accounting
entry (includ-
ing itemisa-
tion) that
shows income
and expendi-
ture from the
asset disposal
Difference
between
actual dis-
posal pro-
ceeds and
the asset
book value
(RUB ths.)
Cause
of the deviation
between
actual disposal
proceeds
and the asset
book value
Asset
book value
(RUB ths.)
Actual dis-
posal pro-
ceeds
(RUB ths.)
Asset
Asset number
(if applicable)
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
20.
The road with an overpass to 1,150 kV Altai SS
20.1. Access road to
1,150 kV Altai
SS, length —
7,100 linear m
0702-1-12-02297
1132
Z901000000/
9120034102
9,310.94
–
-9,310.94
20.2. The road
0702-1-12-02298
1132
Z901000000
0.00
–
0.00
overpass of the
access road
to 1,150 kV
Altai SS, Lit. 1,
length —
53 linear m
Charge-free
transfer
to municipal
ownership
Charge-free
transfer
to municipal
ownership
12.
13.
14.
15.
16.
17.
18.
19.
0100-1-13-00178
1133
0100-1-13-00203
1133
0100-1-13-00204
1133
0100-1-13-00202
1133
0100-1-13-00205
1133
0100-1-13-00001
1130
0702-2-11-05432
1132
Apartment, pur-
pose: housing
Area: 49.1 sq. m
(total) Floor: 10.
Apartment, pur-
pose: housing
Area: 49.1 sq. m
(total) Floor: 10.
Apartment, pur-
pose: housing
Area: 49.1 sq. m
(total) Floor: 10.
Apartment, pur-
pose: housing
Area: 49.1 sq. m
(total) Floor: 9.
Apartment, pur-
pose: housing
Area: 37.5 sq. m
(total) Floor: 3.
Apartment, pur-
pose: housing
Area: 48.4 sq. m
(total) Floor: 4.
Non-residential
premises in a
residential build-
ing. Area: 42.6
sq. m (total)
9110021101/
9120031110
9110021101/
9120031110
9110021101/
9120031110
9110021101/
9120031110
9110021101/
9120031110
9110021501/
9120031511
9110021101/
9120031110
1,485.54
993.12
–492.42
1,485.54
873.95
–611.59
1,485.54
1,112.30
–373.24
1,485.54
1,166.40
–319.14
1,261.38
721.05
–540.33
1,017.20
653.13
–364.08
625.63
270.76
–354.87
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
Disposal
by means
of public
offering
–
Closed Joint-
Stock Company
North-Western
Energy Company
(CJSC Severo-
vostokenergo)
1150
9110021411/
9120031413
0.00
0.16
0.16
400
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
401
APPENDIX 8.
[ NUMBER OF SPECIES LISTED IN THE IUCN RED LIST AND THE NATIONAL LIST OF PROTECTED SPECIES
IN SPECIAL NATURE RESERVE AREAS WHERE PJSC FGC UES OPERATES ]
APPENDIX 8.
[ NUMBER OF SPECIES LISTED IN THE IUCN RED LIST AND THE NATIONAL LIST OF PROTECTED SPECIES
IN SPECIAL NATURE RESERVE AREAS WHERE PJSC FGC UES OPERATES ]
APPENDIX 8.
Number of species listed in the IUCN Red List
and the national list of protected species in special
nature reserve areas where PJSC FGC UES operates
Name of the protected natural area
List of species
Name of the protected natural area
List of species
Baikal State Nature Biosphere
Reserve
Bolshekhekhtsirsky State
Nature Reserve
Species included in the Red Data Book of the Russian Federation:
15 plant species: Asahinea scholanderi, Cypripedium macranthos, Coccocarpia eryth-
roxili, Calypso bulbosa, Leptogium hildenbrandi, Lobaria pulmonaria, Allium altaicum,
Lobaria retigera, Neckera borealis, Omphalina hudsoniana, Galium paradoxum, Fritillaria
dagana, Swertia baicalensis, Tridactylina kirilowii, Cetrelia alaskana.
11 animal species: golden eagle, saker falcon, demoiselle crane, eastern imperial eagle,
white-tailed eagle, Apollo, steppe eagle, peregrine falcon, osprey, reindeer, black stork.
3 fungi species: Hericium coralloides, Leccinum percandidum, Clavariadelphus pistil-
laris.
Listed in the IUCN Red Book: Cypripedium macranthos, eastern imperial eagle, Apollo,
peregrine falcon.
Species included in the Red Data Book of the Russian Federation:
16 plant species: Pogonia japonica, Watershield, Cypripedium calceolus, Trapa natans,
Gastrodia elata, Panax ginseng, Japanese water iris, Lilium callosum, Neottianthe cucul-
lata, Paeonia lactiflora, Paeonia obovata, Galium paradoxum, Trapa, Fritillaria ussurien-
sis, water caltrop, buffalo nut.
15 animal species: Siberian tiger, Steller’s sea eagle, golden eagle, greater spotted ea-
gle, oriental stork, white-naped crane, mandarin duck, white-tailed eagle, Indian paradise
flycatcher, peregrine falcon, osprey, mountain weasel, black stork, red-crowned crane,
grey-faced buzzard.
3 fungi species: Mutinus ravenelii, violet webcap, netted stinkhorn.
Listed in the IUCN Red Book: Watershield, Cypripedium calceolus, Trapa natans, Gastrodia
elata, Trapa, water caltrop, buffalo nut, Siberian tiger, Steller’s sea eagle, greater spotted
eagle, white-naped crane, mandarin duck, peregrine falcon, red-crowned crane.
Ilmen State Nature Reserve
Species included in the Red Data Book of the Russian Federation:
Lapland State Biosphere
Nature Reserve
14 animal species: golden eagle, Eurasian curlew, greater spotted eagle, azure tit,
black-throated loon, European mink, Dalmatian pelican, Eurasian oystercatcher, eastern
imperial eagle, calosoma sycophanta, peregrine falcon, Eurasian eagle-owl, dunlin, black
stork.
6 plant species: Anemone uralensis, Minuartia helmii, Minuartia krascheninnikovii, Epi-
pogium aphyllum, Cephalanthera longifolia, Orchis militaris.
Listed in the IUCN Red Book: Anemone uralensis, European mink, Dalmatian pelican,
eastern imperial eagle, peregrine falcon, greater spotted eagle.
Species included in the Red Data Book of the Russian Federation:
6 plant species: Calypso bulbosa, Cotoneaster cinnabarinus, Carex livida, Dactylorhiza
traunsteineri, Isoetes maritima, Isoetes lacustris.
6 animal species: golden eagle, gyrfalcon, freshwater pearl mussel, white-tailed eagle,
peregrine falcon, osprey.
Listed in the IUCN Red Book: peregrine falcon.
Davydov Nature Reserve
Species included in the Red Data Book of the Russian Federation:
1 plant species: Salvinia natans.
2 animal species: willow ptarmigan, Russian desman.
Listed in the IUCN Red Book: Salvinia natans, Russian desman.
Khopyor State Nature Reserve
Species included in the Red Data Book of the Russian Federation:
13 plant species: Trapa natans, Cephalaria litvinovii, Stipa pennata, Stipa pulcherrima, Iris
aphylla, Stipa dasyphylla, Pulsatilla pratensis, Fritillaria ruthenica, Trapa, Tulipa schrenkii,
water caltrop, buffalo nut, Orchis militaris.
25 animal species: Rosalia longicorn, Eurasian stone-curlew, greater spotted eagle, saker
falcon, golden eagle, aquatic warbler, great bustard, middle spotted woodpecker, Levant
sparrowhawk, stag beetle, short-toed snake eagle, Eurasian oystercatcher, eastern imperial
eagle, clouded Apollo, white-tailed eagle, Calosoma sycophanta, Eurasian beaver, Russian
desman, osprey, Saga pedo, peregrine falcon, lesser kestrel, little bustard, Eurasian eagle-
owl, black stork.
Listed in the IUCN Red Book: Trapa natans, Trapa, water caltrop, buffalo nut, greater spotted
eagle, aquatic warbler, great bustard, Russian desman, Eurasian beaver, Saga pedo,lesser
kestrel, little bustard, peregrine falcon.
Nechkinsky National Park
Species included in the Red Data Book of the Russian Federation:
4 plant species: Cypripedium calceolus, Calypso bulbosa, Neottianthe cucullata,
Cephalanthera rubra.
14 animal species: Volga pikeperch, brown long-eared bat, Eurasian curlew, greater spotted
eagle, Carabus menetriesi, European bullhead, Siberian taimen, white-tailed eagle, Russian
desman, Alburnoides bipunctatus, Sterlet, osprey, Eurasian eagle-owl, black stork.
Listed in the IUCN Red Book: Cypripedium calceolus, greater spotted eagle, Siberian
taimen, Russian desman, Sterlet.
Orlovskoye Polesye National Park
Species included in the Red Data Book of the Russian Federation:
9 plant species: Trapa natans, Neottianthe cucullata, Dactylorhiza traunsteineri, Dactylorhiza
baltica, Pulsatilla pratensis, Dactylorhiza maculata, Trapa, water caltrop, buffalo nut.
10 animal species: great spotted eagle, Russian desman, greater noctule bat, middle
spotted woodpecker, short-toed snake eagle, European bison, clouded Apollo, lesser spotted
eagle, hazel grouse, black stork.
Listed in the IUCN Red Book: European bison, Trapa natans, Trapa, water caltrop, buffalo
nut, great spotted eagle, hazel grouse.
402
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APPENDIX 8.
[ NUMBER OF SPECIES LISTED IN THE IUCN RED LIST AND THE NATIONAL LIST OF PROTECTED SPECIES
IN SPECIAL NATURE RESERVE AREAS WHERE PJSC FGC UES OPERATES ]
APPENDIX 8.
[ NUMBER OF SPECIES LISTED IN THE IUCN RED LIST AND THE NATIONAL LIST OF PROTECTED SPECIES
IN SPECIAL NATURE RESERVE AREAS WHERE PJSC FGC UES OPERATES ]
Name of the protected natural area
List of species
Name of the protected natural area
List of species
Samarskaya Luka National Park
Species included in the Red Data Book of the Russian Federation:
Khvalynsky National Park
Species included in the Red Data Book of the Russian Federation:
20 plant species: Astragalus zingeri, Cypripedium calceolus, Trapa natans, Iris pumila,
Stipa pulcherrima, European feather grass, Hedysarum grandiflorum, Hedysarum razou-
mowianum, Euphorbia zhiguliensis, Neottianthe cucullata, Artemisia salsoloides, Cepha-
lanthera rubra, Fritillaria ruthenica, Thymus cimicinus, Koeleria sclerophylla, Lathyrus litvi-
novii, water caltrop, buffalo nut, Globularia trichosantha.
28 animal species: Rosalia longicorn, saker falcon, ivory gull, golden eagle, greater noct-
ule bat, black-throated loon, stag beetle, short-toed snake eagle, red-breasted goose, so-
ciable lapwing, Eurasian oystercatcher, long-legged buzzard, little tern, eastern imperial
eagle, clouded Apollo, white-tailed eagle, great grey shrike, European bullhead, Caloso-
ma sycophanta, Xylocopa valga, Russian desman, Alburnoides bipunctatus, Saga pedo,
sterlet, osprey, pallid harrier, Pallas’s gull, black stork.
Listed in the IUCN Red Book: Cypripedium calceolus, Trapa natans, Trapa, water caltrop,
buffalo nut, Rosalia longicorn, red-breasted goose, eastern imperial eagle, Russian des-
man, Saga pedo, sterlet, pallid harrier.
Smolny National Park
Species included in the Red Data Book of the Russian Federation:
6 plant species: Trapa natans, Neottianthe cucullata, Cephalanthera rubra, Trapa, water
chestnut, buffalo nut.
17 animal species: golden eagle, Eurasian curlew, greater spotted eagle, short-toed
snake eagle, Eurasian oystercatcher, clouded Apollo, eastern imperial eagle, little tern,
Apollo, great grey shrike, white-tailed eagle, Xylocopa valga, osprey, lesser kestrel, pallid
harrier, little bustard, Eurasian eagle-owl.
Listed in the IUCN Red Book: Trapa natans, Trapa, water chestnut, buffalo nut, greater
spotted eagle, eastern imperial eagle, Apollo, lesser kestrel, little bustard, pallid harrier
Sochi National Park
Species included in the Red Data Book of the Russian Federation:
41 plant species: Anacamptis pyramidalis, Colchicum speciosum, Colchicum umbrosum,
Epimedium colchicum, Dioscorea caucasica, Genista suanica, Ruscus colchicus, Ficus
carica, Erythronium caucasicum, Staphylea colchica, Campanula autraniana, Lilium kes-
selringianum, Leptopus colchicus, Lilium caucasicum, Limodorum abortivum, Epipogium
aphyllum, Ophrys oestrifera, Dactylorhiza triphylla, Galanthus woronowii, Cephalanthera
damasonium, Cephalanthera rubra, Paeonia wittmanniana, Secale kuprijanovii, Buxus
colchica, Spiranthes spiralis, Serapias vomeracea, Steveniella satyrioides, English Yew,
Traunsteinera globosa, Tulipa humilis, Ostrya carpinifolia, Cyclamen coum, Globularia
trichosantha, Crocus vallicola, Crocus speciosus, Anacamptis coriophora, Orchis militaris,
Orchis mascula, Orchis provincialis, Orchis purpurea, Orchis tridentata.
57 animal species: Rosalia longicorn, Alburnus belvica, griffon vulture, greater horseshoe
bat, golden eagle, bearded vulture, Carabus hungaricus, greater noctule bat, Vipera dinniki,
Vipera kaznakovi, Aphodius bimaculatus, Anax imperator, Aporrectodea dubiosa, Carabus
biebersteini constantinovi, Carabus miroshnikovi, Stag beetle, short-toed snake eagle, Eise-
nia transcaucasica, Rhaesus serricollis, Caucasian grouse, red kite, Lutra lutra meridionalis,
Caucasian wildcat, Сarabus caucasicus, Xylosteus caucasicola, Protaetia speciosa, brown
trout, Caucasian toad, Caucasian parsley frog, Parnopes grandior, leopard, lesser horseshoe
bat, lesser spotted eagle, southern banded newt, clouded Apollo, white-tailed eagle, common
bent-wing bat, lesser mouse-eared bat, Triturus vulgaris lantzi, Apollo, Orussus abietinus,
Mehely’s horseshoe bat, Calosoma sycophanta, Pleroneura dahli, Xylocopa valga, peregrine
falcon, osprey, Greek tortoise, Geoffroy’s bat, Southern crested newt, Cerambyx nodulosus,
Ukrainian brook lamprey, Aesculapian snake, black stork, cinereous vulture.
Listed in the IUCN Red Book: Ficus carica, Staphylea colchica, Campanula autraniana,
Buxus colchica, English Yew, Rosalia longicorn, greater horseshoe bat, Vipera dinniki,
Vipera kaznakovi, Caucasian grouse, leopard, Apollo, common bent-wing bat, Mehely’s
horseshoe bat, Greek tortoise, Geoffroy’s bat, cinereous vulture.
15 plant species: Astragalus zingeri, Cypripedium calceolus, Daphne cneorum, Hysso-
pus cretaceus, Iris pumila, Stipa pulcherrima, Iris aphylla, Hedysarum razoumowianum,
European feather grass, Hedysarum grandiflorum, Potentilla volgarica, Cephalanthera ru-
bra, Paeonia tenuifolia, Anthemis trotzkiana, Fritillaria ruthenica.
16 animal species: saker falcon, golden eagle, greater spotted eagle, levant sparrow-
hawk, stag beetle, short-toed snake eagle, Dalmatian pelican, eastern imperial eagle,
marbled duck, white-tailed eagle, Russian desman, Bombus fragrans, peregrine falcon,
osprey, little bustard, Eurasian eagle-owl.
Listed in the IUCN Red Book: Cypripedium calceolus, greater spotted eagle, Dalmatian
pelican, eastern imperial eagle, Russian desman, little bustard, peregrine falcon.
Shorsky National Park
Species included in the Red Data Book of the Russian Federation:
9 plant species: Aconitum paskoi, Cypripedium macranthos, Cypripedium calceolus,
Siberian fawn lily, tree lungwort, Liparis loeselii, Dactylorhiza baltica, Rheum altaicum,
Orchis militaris.
7 animal species: golden eagle, Siberian taimen, lenok, peregrine falcon, osprey, Eur-
asian eagle-owl, black stork.
Listed in the IUCN Red Book: Cypripedium calceolus, Cypripedium macranthos, Siberian
taimen, peregrine falcon.
Shushensky Bor National Park
Species included in the Red Data Book of the Russian Federation:
14 plant species: Aconitum sajanense, Cypripedium macranthos, Cypripedium calceo-
lus, Bupleurum martjanovii, Siberian fawn lily, European feather grass, Allium tytthoceph-
alum, tree lungwort, Neottianthe cucullata, Carex insaniae, Sticta limbata, Tuckneraria
laureri, Cetraria Laureri, Orchis militaris.
20 animal species: Asian dowitcher, saker falcon, golden eagle, greater spotted eagle,
demoiselle crane, gyrfalcon, Bewick’s swan, eastern imperial eagle, white-tailed eagle,
lesser white-fronted goose, osprey, peregrine falcon, lesser kestrel, pallid harrier, steppe
eagle, Eurasian eagle-owl, black stork, hooded crane, Pallas’s gull, pied avocet.
Listed in the IUCN Red Book: Cypripedium calceolus, Cypripedium macranthos, Asian
dowitcher, greater spotted eagle, eastern imperial eagle, lesser white-fronted goose, less-
er kestrel, peregrine falcon.
Ugra National Park
Species included in the Red Data Book of the Russian Federation:
9 plant species: Cypripedium calceolus, Trapa natans, European feather grass, Dactylo-
rhiza baltica, Cephalanthera longifolia, Trapa, water caltrop, buffalo nut, Orchis militaris.
23 animal species: saker falcon, golden eagle, Eurasian curlew, greater spotted eagle,
aquatic warbler, greater noctule bat, black-throated loon, middle spotted woodpecker,
short-toed snake eagle, Eurasian oystercatcher, lesser spotted eagle, Eastern imperial
eagle, great grey shrike, European bullhead, white-tailed eagle, Russian desman, Alburn-
oides bipunctatus, peregrine falcon, osprey, pallid harrier, sterlet, Eurasian eagle-owl,
black stork.
Listed in the IUCN Red Book: Cypripedium calceolus, Trapa natans, Trapa, water caltrop,
buffalo nut, greater spotted eagle, aquatic warbler, eastern imperial eagle, Russian des-
man, sterlet, pallid harrier, peregrine falcon.
Species included in the Red Data Book of the Russian Federation:
3 plant species: European feather grass, Pulsatilla pratensis, Fritillaria ruthenica.
4 animal species: saker falcon, griffon vulture, greater spotted eagle, stag beetle.
3 fungi species: Polyporus umbellatus, Sparassis crispa, lingzhi mushroom.
Listed in the IUCN Red Book: greater spotted eagle.
Voronezh State Nature
Biosphere Reserve
404
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APPENDIX 8.
[ NUMBER OF SPECIES LISTED IN THE IUCN RED LIST AND THE NATIONAL LIST OF PROTECTED SPECIES
IN SPECIAL NATURE RESERVE AREAS WHERE PJSC FGC UES OPERATES ]
APPENDIX 8.
[ NUMBER OF SPECIES LISTED IN THE IUCN RED LIST AND THE NATIONAL LIST OF PROTECTED SPECIES
IN SPECIAL NATURE RESERVE AREAS WHERE PJSC FGC UES OPERATES ]
Name of the protected natural area
List of species
Name of the protected natural area
List of species
Historic and landscape complex
Bogolyubov Medow — The Church
of the Intercession of the Holy Virgin
on the Nerl River
Kologrivsky Forest State Nature
Reserve
Species included in the Red Data Book of the Russian Federation:
East Ural Nature Reserve
Species included in the Red Data Book of the Russian Federation:
3 plant species: Isoetes lacustris, Diphasiastrum tristachyum, Dactylorhiza traunsteineri.
9 animal species: golden eagle, greater spotted eagle, European bison, short-toed snake
eagle, white-tailed eagle, Russian desman, osprey, black-throated loon, black stork.
Listed in the IUCN Red Book: greater spotted eagle, European bison, white-tailed eagle,
Russian desman.
3 plant species: Cypripedium calceolus, Lilium martagon, Pulsatilla vernalis.
8 animal species: golden eagle, Dalmatian pelican, white-tailed eagle, saker falcon,
peregrine falcon, osprey, Eurasian eagle-owl, Pallas’s gull.
Listed in the IUCN Red Book: Cypripedium calceolus, Lilium martagon, Dalmatian pelican,
peregrine falcon.
Species included in the Red Data Book of the Russian Federation:
Donsky Nature Park
Species included in the Red Data Book of the Russian Federation:
3 plant species: Cypripedium calceolus, tree lungwort, Dactylorhiza traunsteineri.
7 animal species: golden eagle, greater spotted eagle, short-toed snake eagle, Europe-
an bullhead, grayling, osprey, peregrine falcon.
Listed in the IUCN Red Book: Cypripedium calceolus, greater spotted eagle, peregrine
falcon.
Kaluzhskie Zaseki State Nature
Reserve
Species included in the Red Data Book of the Russian Federation:
1 plant species: early-purple orchid.
18 animal species: greater spotted eagle, Eurasian curlew, Russian desman, greater
noctule bat, middle spotted woodpecker, European bison, short-toed snake eagle, cloud-
ed Apollo, lesser spotted eagle, white-tailed eagle, European bullhead, great grey shrike,
brook lamprey, Alburnoides bipunctatus, osprey, peregrine falcon, pallid harrier, black
stork.
8 fungi species: Grifola frondosa, Gyroporus castaneus, coral tooth fungus, Dog stink-
horn, Cortinarius violaceus, Clavariadelphus pistillaris, Sparassis crispa, Gyroporus cya-
nescens.
Listed in the IUCN Red Book: greater spotted eagle, European bison, pallid harrier, pere-
grine falcon.
Dmitrievsky State Regional Fauna
(Hunting) Reserve for Preservation
of Elks and Roe Deers
Species included in the Red Data Book of the Russian Federation:
3 animal species: saker falcon, white-tailed eagle, peregrine falcon.
Blagoveshchensky State Nature
Reserve
Listed in the IUCN Red Book: white-tailed eagle, peregrine falcon.
Species included in the Red Data Book of the Russian Federation:
2 plant species: European feather grass, Stipa zalesskii.
18 animal species: Asian dowitcher, golden eagle, red-breasted goose, sociable lap-
wing, demoiselle crane, glossy ibis, little tern, white-tailed eagle, Pallas’s fish eagle, mar-
bled polecat, great white pelican, white-headed duck, pallid harrier, lesser kestrel, black-
winged stilt, Pallas’s gull, Caspian tern, pied avocet.
Listed in the IUCN Red Book: Asian dowitcher, red-breasted goose, Pallas’s fish eagle,
marbled polecat, lesser kestrel, pallid harrier, white-headed duck
Shalov-Perechitsky State Integral
Nature Reserve
Bogdinsko-Baskunchaksky Nature
Reserve
9 plant species: Trapa natans, Genista tanaitica, Stipa pulcherrima, European feather
grass, Lepidium meyeri, Jurinea cretacea, Scrophularia cretacea, Serratula tanaitica,
water caltrop.
6 animal species: short-toed snake eagle, eastern imperial eagle, white-tailed eagle,
steppe eagle, little bustard, Eurasian eagle-owl.
Listed in the IUCN Red Book: Trapa natans, water caltrop, eastern imperial eagle, little
bustard.
Species included in the Red Data Book of the Russian Federation:
4 plant species: Sand pink, Pulsatilla pratensis, Eastern pasqueflower, Onobrychis are-
naria.
9 animal species: white stork, golden eagle, Eurasian curlew, Eurasian bittern, Bewick’s
swan, osprey, Eurasian eagle-owl, black stork, black-throated loon.
Listed in the IUCN Red Book: white stork, eastern imperial eagle.
Species included in the Red Data Book of the Russian Federation:
3 plant species: Delphinastrum puniceum,European feather grass,Tulipa schrenkii.
23 animal species: Eurasian stone-curlew, ferruginous duck, Eurasian curlew, greater
spotted eagle, emperor dragonfly, Levant sparrowhawk, demoiselle crane, sociable lap-
wing, Eurasian oystercatcher, long-legged buzzard, eastern imperial eagle, great grey
shrike, white-tailed eagle, calosoma sycophanta, Alsophylax pipiens, lesser kestrel, pallid
harrier, black-winged pratincole, steppe eagle, little bustard, Eurasian eagle-owl, black-
winged stilt, pied avocet.
Listed in the IUCN Red Book: ferruginous duck, greater spotted eagle, sociable lapwing,
eastern imperial eagle, white-tailed eagle, lesser kestrel, pallid harrier, black-winged pratin-
cole, little bustard.
Tatarka River State Nature Reserve
Species included in the Red Data Book of the Russian Federation:
8 animal species: golden eagle, Baikal teal, Bewick’s swan, white-tailed eagle, osprey,
peregrine falcon, Eurasian eagle-owl, black stork.
Listed in the IUCN Red Book: white-tailed eagle, peregrine falcon.
Taganai National Park
Species included in the Red Data Book of the Russian Federation:
Mariy Chodra National Park
Species included in the Red Data Book of the Russian Federation:
6 plant species: Anemone uralensis, Minuartia helmii, Epipogium aphyllum, Cephalan-
thera longifolia, Cephalanthera rubra, Orchis militaris.
12 animal species: black stork, golden eagle, clouded Apollo, eastern imperial eagle,
Apollo, peregrine falcon, osprey, Saga pedo, Bombus wurflenii, slender-billed curlew, Eur-
asian eagle-owl, black-throated loon.
Listed in the IUCN Red Book: Anemone uralensis, Apollo, Saga pedo, peregrine falcon,
slender-billed curlew.
5 plant species: Cypripedium calceolus,Stipa pennata,Liparis loeselii, Neottianthe cucul-
lata, Cephalanthera rubra.
17 animal species: golden eagle, greater noctule bat, azure tit, black-throated loon, short-
toed snake eagle, Eurasian oystercatcher, eastern imperial eagle, great grey shrike, white-
tailed eagle, Apollo, European bullhead, Alburnoides bipunctatus, Russian desman, os-
prey, Sterlet, Eurasian eagle-owl, black stork.
4 fungi species: Gyroporus cyanescens, coral tooth fungus, Leccinum
percandidum,Cortinarius violaceus.
Listed in the IUCN Red Book: Cypripedium calceolus, greater noctule bat, eastern imperial
eagle, white-tailed eagle, Apollo, Russian desman, Sterlet.
406
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APPENDIX 8.
[ NUMBER OF SPECIES LISTED IN THE IUCN RED LIST AND THE NATIONAL LIST OF PROTECTED SPECIES
IN SPECIAL NATURE RESERVE AREAS WHERE PJSC FGC UES OPERATES ]
APPENDIX 8.
[ NUMBER OF SPECIES LISTED IN THE IUCN RED LIST AND THE NATIONAL LIST OF PROTECTED SPECIES
IN SPECIAL NATURE RESERVE AREAS WHERE PJSC FGC UES OPERATES ]
Name of the protected natural area
List of species
Kivach State Nature Reserve
Species included in the Red Data Book of the Russian Federation:
10 plant species: Cypripedium calceolus, Myrica gale, Calypso bulbosa, Cotoneaster
cinnabarinus, Liparis loeselii, Lobelia dortmanna, Lobaria pulmonaria Epipogium aphyl-
lum, Dactylorhiza traunsteineri, Dactylorhiza baltica.
13 animal species: golden eagle, greater spotted eagle, azure tit, short-toed snake
eagle, gyrfalcon, clouded Apollo, great grey shrike, Apollo, lesser white-fronted goose,
peregrine falcon, osprey, Eurasian eagle-owl, Caspian tern.
5 fungi species: Wila, coral tooth fungus, Aspen white, Leccinum percandidum, violet
webcap, Clavariadelphus pistillaris
Listed in the IUCN Red Book: greater spotted eagle,Cypripedium calceolus, Apollo, lesser
white-fronted goose, peregrine falcon.
Remdovsky Nature Reserve
6 plant species: Acorus calamus, Peucedanum ostruthium, lesser burdock, dwarf ever-
last, Alisma gramineum, Bidens radiata.
10 animal species: golden eagle, barnacle goose, red-breasted goose, eastern imperial
eagle, Bewick’s swan, white-tailed eagle, peregrine falcon, osprey, white-fronted goose,
black stork.
Listed in the IUCN Red Book: eastern imperial eagle, red-breasted goose, white-tailed
eagle, peregrine falcon.
Total number of species listed on the Red Book
141 plant species: Acorus calamus, Asahinea scholanderi, pyramidal orchid, Astragalus zingeri, Pogonia japonica, water-
shield, Aconitum paskoi, Aconitum sajanense, Colchicum speciosum, Colchicum umbrosum, Cypripedium macranthos, Cypri-
pedium calceolus, Trapa natans, Myrica gale, Anemone uralensis, Stipa orientalis, Bupleurum martjanovii, Daphne cneorum,
Epimedium colchicum, Cephalaria litvinovii, Peucedanum ostruthium, Gastrodia elata, Sand pink, Dioscorea caucasica, Geni-
sta tanaitica, Genista suanica, Panax ginseng, Delphinastrum puniceum, Hyssopus cretaceus, Ficus carica, Ruscus colchi-
cus, Coccocarpia erythroxili, Calypso, Japanese water iris, Iris aphylla, Stipa dasyphylla, European feather grass, Stipa za-
lesskii, Lepidium meyeri, Cotoneaster cinnabarinus, Hedysarum grandiflorum, Hedysarum razoumowianum, Erythronium
caucasicum, Staphylea colchica, Campanula autraniana, Iris pumila, Baikal teal, Siberian fawn lily, Leptogium hildenbrandii,
tree lungwort, Allium altaicum, Lobaria retigera, lesser burdock, Lobelia dortmanna, Leptopus colchicus, Lilium caucasicum,
Limodorum abortivum, Lilium kesselringianum, Potentilla volgarica, Liparis loeselii, Lilium callosum, Allium tytthocephalum,
Lilium martagon, Minuartia helmii, Minuartia krascheninnikovii, Euphorbia zhiguliensis, Neckera borealis, Neottianthe cuculla-
ta, Epipogium aphyllum, Jurinea cretacea, Scrophularia cretacea, Omphalina hudsoniana, Carex insaniae, Ophrys oestrifera,
Carex livida, Galium paradoxum, Chinese peony, Paeonia obovata, Galium paradoxum, Pulsatilla pratensis, Cephalanthera
longifolia, Isoetes lacustris, Dactylorhiza traunsteineri, Isoetes maritima, Cephalanthera rubra, Dactylorhiza baltica, Dactylo-
rhiza maculata, Artemisia salsoloides, Dactylorhiza triphylla, Galanthus woronowii, Paeonia wittmanniana, Pulsatilla vernalis,
Paeonia tenuifolia, Anthemis trotzkiana, Cephalanthera damasonium, Eastern pasqueflower, Pulsatilla pratensis, Fritillaria da-
gana, Secale kuprijanovii, Trapa, Fritillaria ussuriensis, Fritillaria ruthenica, Rheum altaicum, Fritillaria meleagris, Swertia ba-
icalensis, Buxus colchica, Serapias vomeracea, Steveniella satyrioides, Spiranthes spiralis, Sticta limbata, Serratula tanaitica,
Salvinia natans, Tridactylina kirilowii, dwarf everlast, Thymus cimicinus, Koeleria sclerophylla, Tulipa schrenkii, English Yew,
Traunsteinera globosa, Tulipa humilis, Tuckneraria laureri, Ostrya carpinifolia, Cetraria laureri, Cetrelia alaskana, Cyclamen
coum, Alisma gramineum, Bidens radiata, water caltrop, buffalo nut, Lathyrus litvinovii, Globularia punctata, Globularia tricho-
santha, Crocus speciosus, Crocus vallicola, Onobrychis arenaria, Anacamptis coriophora, Early purple orchid, Orchis milita-
ris, Burnt-tip orchid, Orchis provincialis, Orchis purpurea, Orchis tridentata.
135 animal species: Siberian tiger, Eurasian stone-curlew, Rosalia longicorn, Asian dowitcher, Alburnus belvica, saker fal-
con, white stork, griffon vulture, willow ptarmigan, golden eagle, Eurasian curlew, Volga pikeperch, bearded vulture, ferrugi-
nous duck, brown long-eared bat, ivory gull, greater horseshoe bat, greater spotted eagle, Steller’s sea eagle, barnacle goose,
aquatic warbler, Eurasian bittern, Carabus hungaricus,Vipera dinniki, Vipera kaznakovi, greater noctule bat, Oriental stork,
white-naped crane, Aphodius bimaculatus, great bustard, Anax imperator, grayling, black-throated loon, azure tit, European
mink, middle spotted woodpecker, Levant sparrowhawk, demoiselle crane, Carabus menetriesi, Aporrectodea dubiosa, Cara-
bus biebersteini constantinovi, Carabus miroshnikovi, Freshwater pearl mussel, stag beetle, Eisenia transcaucasica, short-
toed snake eagle, Rhaesus serricollis, European bison, Dalmatian pelican, Eurasian oystercatcher, Gyrfalcon, long-legged
buzzard, Сarabus caucasicus, Caucasian grouse, sociable lapwing, redbreasted goose, Xylosteus caucasicola, Protaetia
speciosa, Parnopes grandior, Caucasian toad, Caucasian parsley frog, brown trout, Baikal teal, red kite, Lutra lutra meridio-
nalis, Caucasian wildcat, glossy ibis, lenok, leopard, Bewick’s swan, mandarin duck, marbled duck, lesser spotted eagle,
clouded Apollo, little tern, southern banded newt, eastern imperial eagle, lesser horseshoe bat, steppe eagle, great grey
shrike, Apollo, Pallas’s fish eagle, Siberian taimen, European bullhead, Lissotriton vulgaris lantzi, common bent-wing bat,
white-tailed eagle, Triturus vulgaris lantzi, lesser mouse-eared bat, Mehely’s horseshoe bat, Calosoma sycophanta, Xylocopa
valga, Orussus abietinus, lesser white-fronted goose, marbled polecat, Alsophylax pipiens, Pleroneura dahli, Indian paradise
flycatcher, Russian desman, brook lamprey, Eurasian beaver, hazel grouse, great white pelican, Alburnoides bipunctatus,
reindeer, lesser kestrel, Saga pedo, peregrine falcon, steppe eagle, mountain weasel, osprey, white-headed duck, black-
winged pratincole, little bustard, sterlet, pallid harrier, Bombus fragrans, Greek tortoise, Bombus wurflenii, southern crested
newt, Geoffroy’s bat, slender-billed curlew, Cerambyx nodulosus, Ukrainian brook lamprey, Eurasian eagle-owl, black-winged
stilt, Caspian tern, black-bellied sandpiper, cinereous vulture, Pallas’s gull, hooded crane, black stork, pied avocet, Aescula-
pian snake, grey-faced buzzard, red-crowned crane.
14 fungi species: Wila, Polyporus umbellatus, Grifola frondosa, Gyroporus castaneus, Gyroporus cyanescens, coral tooth fun-
gus, Mutinus ravenelii, Dog stinkhorn, Leccinum percandidum, Cortinarius violaceus, Clavariadelphus pistillaris, Phallus dupli-
catus, Sparassis crispa, Lingzhi mushroom.
Status
Listed in the Red Book
of Russia
0 — Considered to be Extinct
1 — Endangered Ones
2 — Declining Species
3 — Rare Ones
4 — Undefined by Status
5 — Recoverable and Recovering Ones
Animals
Plants
Fungi
–
28
57
39
7
4
1
12
56
67
4
1
–
–
1
11
2
–
Total number of species listed on the Red Book
of the International Union for Conservation of Nature
16 plant species: Watershield, Cypripedium macranthos, Cypripedium calceolus, Trapa natans, Anemone uralensis, Gastrodia
elata, Ficus carica, Caucasian bladdernut, Campanula autraniana, Lilium martagon, Trapa, Buxus colchica, Salvinia natans,
Taxus baccata, water caltrop, buffalo nut.
46 animal species: Siberian tiger, Rosalia longicorn, Asian dowitcher, white stork, Steller’s sea eagle, greater spotted eagle,
greater horseshoe bat, aquatic warbler, Vipera dinniki, Vipera kaznakovi, greater noctule bat, white-naped crane, great bustard,
European mink, European bison, Dalmatian pelican, red-breasted goose, sociable lapwing, Caucasian grouse, leopard, man-
darin duck, eastern imperial eagle, white-tailed eagle, Apollo, Siberian taimen, common bent-wing bat, Mehely’s horseshoe bat,
lesser white-fronted goose, marbled polecat, hazel grouse, Eurasian beaver, Russian desman, peregrine falcon, Saga pedo,
lesser kestrel, black-winged pratincole, little bustard, sterlet, pallid harrier, Greek tortoise, white-headed duck, Geoffroy’s bat,
slender-billed curlew, cinereous vulture, red-crowned crane.
Status
Listed in the Red List
of the International Union
for Conservation of Nature
CR — Critically Endangered Species
EN — Endangered Species
VU — Vulnerable Species
NT — Near Threatened
LC — Least Concern
Animals
Plants
Fungi
3
6
20
8
9
–
2
2
1
11
–
–
–
–
–
408
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
409
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
APPENDIX 9.
Register of specially protected natural areas where
Federal Grid Company operates
GRI 304-1
Information on the electric grid facility
Environmentally sensitive area
MPS
EMPS
Name
Location
MPS Centre
Verkhne-Dons-
koye EMPS
220 kV dual circuit OHL: Yuzhnaya Usman-
Tyagovaya, Kirovskaya POST 474
Voronezh Region, Verkhne-
havsky District
220 kV Ovoshchi Chernozemya OHL
Vologodskoye
EMPS
220 kV Vladimirskaya CHPP-2 — Vladimir-
skaya with branch line to Rayonnaya SS and
220 kV Vladimirskaya — Zarya 2, chain with
branch line to Rayonnaya SS
Vladimir Region, Suzdalsky
District
220 kV Vladimirskaya CHPP-2 — Vladimir-
skaya with branch line to Rayonnaya SS and
220 kV Vladimirskaya CHPP-2 — Zarya
Vladimir Region, Kamesh-
kovsky District
220 kV Ryzhkovo-Manturovo OHL
Kostroma Region, Man-
turovsky District
Moskovskoye
EMPS
500 kV Noginsk-Chagino OHL, tower
No. 153
Moscow
500 kV Kaskadnaya-Chagino OHL, tower
No. 153
500 kV Ochakovo OHL, tower No. 20–31
Priokskoe
EMPS
500 kV Smolenskaya NPP — Kaluzhskaya
OHL
Kaluga Region, Yukhnovsky
District
220 kV Cherepetskaya GRES — Liteynaya
OHL
Kaluga Region, Kozelsky District
220 kV Cherepetskaya GRES —Tsementna-
ya OHL
Kaluga Region, Kozelsky District
500 kV Smolenskaya NPP — Mikhaylovskaya
OHL
Kaluga Region, Ulyanovsky
District
Chernozemnoe
EMPS
330 kV Stary Oskol — OEMK 1 OHL
Belgorod Region, Starooskol-
sky District
500 kV Stary Oskol — Metallurgicheskaya
OHL
Belgorod Region, Starooskol-
sky District
Length, km —
for OHL and
ACL; occupied
area, ha —
for SS
11.968
11.528
1.6
2.5
13.8
0.364
5.89
3.5
12.5
17.5
17.6
17.6
1.5
4
Name
Voronezh State Nature Biosphere Reserve
Level
of importance
Within
the territory
Location
in respect
to the territory
Type of territory
Type of activity
Ground
Ground
Production
Historic and landscape complex Bogolyubov Medow —
The Church of the Intercession of the Holy Virgin
on the Nerl River
Within
the territory
Davydov Nature Reserve
Kologrivsky Forest State Nature Reserve
Within
the territory
Within
the territory
Kuzminki–Lyublino Historic and Nature Park
Regional
Bitsevsky Forest
Ugra National Park
Federal
Kaluzhskie Zaseki State Nature Reserve
Federal
Dmitrievsky State Regional Fauna (Hunting) Reserve
for Preservation of Elks and Roe Deers
Regional
Regional
Within the ter-
ritory
Ground
Production
Ground
Ground
Production
Ground
Ground
Production
Ground
Ground
Production
Within the ter-
ritory
Within the ter-
ritory
Within the ter-
ritory
Within the ter-
ritory
Within the ter-
ritory
Within the ter-
ritory
Within the ter-
ritory
Within the ter-
ritory
Within the ter-
ritory
Within the ter-
ritory
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Beloberezhskaya-Yeletskaya OHL
Orlov Region
7.698
Orlovskoye Polesye National Park
Federal
410
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
411
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
Information on the electric grid facility
Environmentally sensitive area
MPS
EMPS
Name
MPS Siberia
Kuzbasskoye
EMPS
500 kV Sayano-Shushenskaya HPP —
Novokuznetskaya No. 1 ACL
Location
Kemerovo Region
500 kV Sayano-Shushenskaya HPP —
Novokuznetskaya No. 2 OHL
Krasnoyar-
skoye EMPS
220 kV Gorevsky-Razdolinskaya circuit 1/cir-
cuit 2 OHL (D-101/D-102) (in spans between
towers 114–214)
Krasnoyarsk Krai
Khakasskoe
EMPS
220 kV Minusinskaya tower — Shushenska-
ya tower circuit 1, 2 OHL (D-37/38)
220 kV Sushenskaya tower — Ergaki OHL
(D46)
Zabaikalskoe
EMPS
220 kV Mysovaya — Vydrino OHL
(OHL-273)
Republic of Buryatia
220 kV Mysovaya — Vydrino OHL
(OHL-274)
500 kV Irkutsk — Gusinoozernaya GRES
OHL (IG-582)
220 kV Goryachinskaya SS
MPS East
Khabarovskoye
EMPS
220 kV Khekhtsir-Gidroliznaya/Khekhzir —
Dormidontovka/t OHL L-227/228
Khabarovsk Krai
220 kV Khekhtsir-Gidroliznaya/Khekhzir —
Dormidontovka/t OHL L-227/228
220 kV Khekhtsir CHPP-3 — Khekhtsir-2
OHL L-223/224
220 kV Khekhtsir CHPP-3 — Khekhtsir-2
OHL L-225/226
500 kV Khabarovskaya — Khekhtsir-2 OHL
L-513
220 kV Khekhtsir-2 — Vostok OHL
220 kV Khekhtsir-2 — Khekhtsir circuit 1,2
OHL 233/234
220 kV Khekhtsir-2 — PS-36 OHL (L-235)
500 kV PrimGRES — Khekhtsir-2 OHL L-516
6 kV f.-5 Khekhtsir — Khekhtsir-2 ACL
20 kV f.-5 Khekhtsir — Khekhtsir-2 ACL
Amurskoye
EMPS
220 kV Amurskaya — Blagoveshchenskaya
No. 1 OHL
Amur Region
220 kV Amurskaya — Blagoveshchenskaya
No. 2 OHL
Length, km —
for OHL and
ACL; occupied
area, ha —
for SS
78.5
78.5
40.3
48.7
125.5
3.5418
3.5418
3.5418
5.5
9.51
2.8
24.763
22.306
21.113
22.254
0.28
9.219
13.55
0.98
0.98
7.8
7.8
Name
Shorsky State National Park
Level
of importance
Federal
Tatarka River State Nature Reserve
Regional
Shushensky Bor National Park
Federal
Protective area of the Baikal State Nature
Biosphere Reserve
Federal
Baikal State Nature Biosphere Reserve
Territory of the Bolshekhekhtsirsky State Nature
Reserve
Khekhtsirsky State Nature Reserve
Federal
Federal
Federal
Blagoveshchensky State Nature Reserve
Regional
Location
in respect
to the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Type of territory
Type of activity
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
412
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
413
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
Information on the electric grid facility
Environmentally sensitive area
MPS
EMPS
Name
Location
MPS Urals
Sverdlovskoye
EMPS
500 kV BNPP-2 — Yuzhnaya OHL
(500 kV Yuzhnaya — Shagol OHL)
Sverdlovsk Region, Sysertsky
District
220 kV Beloyarskaya NPP — Mramornaya
OHL
500 kV Kozyrevo — Reftinskaya GRES
220 kV Reftinskaya GRES — Travyanskaya
circuit 2 OHL
220 kV Reftinskaya GRES — Anna OHL
(220 kV Reftinskaya GRES — Travyanskaya
circuit 1 OHL)
220 kV Anna — Travyanskaya OHL (220 kV
Reftinskaya GRES — Tranyanskaya circuit
1 OHL)
220 kV Sredneuralskaya GRES — Per-
vouralskaya circuit 2 OHL
220 kV Sredneuralskaya GRES — Per-
vouralskaya circuit 1 OHL with a branch line
to Trubnaya SS
220 kV Emelino — Trubnaya OHL
220 kV Sredneuralskaya GRES — Per-
vouralskaya circuit 2 OHL
220 kV Sredneuralskaya GRES — Per-
vouralskaya circuit 1 OHL with a branch line
to Trubnaya SS
220 kV Salda SS — Koshai SS OHL
220 kV Salda SS — Koshai SS OHL
Sverdlov Region, Bogdanov-
ichsky District
Sverdlov Region, Sredneural-
sky District, Verkhnepyshmin-
sky District
Sverdlov Region, Pervouralsky
District, Verkhneye Dubrovo
District
Sverdlov Region, Verkhnetur-
sky District, Alapaevsky
District
Sverdlovsk Region,
Rezhevsky District
Yuzhno-Urals-
koe EMPS
500 kV Zlatoust — Chelyabinskaya tower
107–128 OHL
Chelyabinsk Region, Miassky
District
500 kV Zlatoust — Chelyabinskaya tower
17–45 OHL
Chelyabinsk Region, Zlatous-
tovsky District
500 kV Beloyarskaya NPP-2 — Shagol OHL Chelyabinsk Region, Kunashak-
sky, Kaslinsky Districts
220 kV Shagol — Kashtak OHL, towers
33–41
Chelyabinsk Region, Chely-
abinsk, Sosnovsky District
Length, km —
for OHL and
ACL; occupied
area, ha —
for SS
17.3
39.9
32.1
34.9
10.1
24.8
1.655
1.657
4.33
10.72
10.72
13.7
16.7
5.33
7.1
25
2.9
Name
Bazhovskie Mesta Nature Reserve
Level
of importance
Regional
Bogdanovichsky State Fauna Hunting Nature
Reserve
Regional
Bogdanovichsky State Fauna Hunting Nature
Reserve
Regional
Lake Iset and Surrounding Forests Landscape
Nature Reserve
Regional
Forests at the Geographical Border of Europe
and Asia Landscape Reserve
Regional
Dobrovolsky Trakt Landscape Nature Reserve
Regional
Rezhevsky Nature Mineral Reserve
Regional
Ilmen State Nature Reserve
Taganai National Park
East Ural Radiation Reserve
Kashtaksky Bor Botanic Natural Monument
of the Regional Significance
Federal
Federal
Federal
Regional
Location
in respect
to the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Type of territory
Type of activity
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
414
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
415
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
Information on the electric grid facility
Environmentally sensitive area
MPS
EMPS
Name
Location
Permskoye
EMPS
500 kV Vyatka — Votkinskaya HPP OHL
towers 881–896
Udmurt Republic, Votkinsky
District
220 kV VHPP — Izhevsk 1 central OHL
towers 7–43
220 kV VHPP — Izhevsk 2 central OHL
towers 7–48
220 kV branch line to the Siva settlement
1 central OHL towers 1–22
220 kV branch line to the Siva settlement
2 central OHL towers 1–22
220 kV Kauchuk — Metallurg OHL towers
23–42
Udmurt Republic, Sarapulsky
District
220 kV Kauchuk — Kama OHL towers
23–42
220 kV Kauchuk — Metallurg OHL towers
81–101
220 kV Kauchuk — Kama OHL towers
81–104
220 kV Kauchuk — Pozim OHL towers
69–101
330 kV Yuzhnaya — Rostovskaya OHL
220 kV R20 — T10 OHL, circuit 1
220 kV Rostovskaya — Т15 OHL
Rostov Region, Kuibyshevsky
District
Rostov Region, Myasnikovsky
District
MPS South
Rostovskoe
EMPS
220 kV Novocherkasskaya GRES —
NZB OHL
Rostov Region, Oktyabrsky
District
220 kV Pogorelovo — Donetskaya OHL
500 kV Rostovskaya NPP — Shakhty OHL
Rostov Region, Kamensky
District
Rostov Region, Tsymlyansky
District
220 kV Tsymlyanskaya HPP — Shakhty
OHL
500 kV Rostovskaya NPP — Nevinnomysk
OHL
Rostov Region, Proletarsky
District
Sochinskoye
EMPS
110 kV Mzymta SS
Krasnodar Krai
110 kV Roza Khutor SS
110 kV Laura SS
110 kV Sportivnaya SS
Length, km —
for OHL and
ACL; occupied
area, ha —
for SS
5.795
7.688
7.798
6.742
7.024
7.6
7.6
7.767
7.175
10.351
1.025
2.215
0.631
0.500
0.598
23.636
12.235
20.310
0.4519
0.4778
0.461
0.3348
Name
Nechkinsky National Park
Level
of importance
Federal
Lysogorka
Kamennaya Balka
Chulekskaya Balka
Persianovskaya Preserved Area
Glubokaya River Chalk Deposit
Donsky Nature Park
Regional
Regional
Regional
Regional
Regional
Regional
Rostov Oblast Wetlands — Veselovskoe Water Reser-
voir and Lake Manych-Gudilo
Regional
Sochi national park
Federal
Location
in respect
to the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Type of territory
Type of activity
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
416
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
417
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
Information on the electric grid facility
Environmentally sensitive area
Name
Sochi national park
Level
of importance
Federal
MPS
EMPS
Name
Kubanskoye
EMPS
220 kV Shepsi SS
220 kV Poselkovaya SS
Location
Krasnodar Krai
220 kV Sochi CHPP — Psou ACL
220 kV Sochi CHPP — Dagomys ACL
220 kV Psou — Poselkovaya OHL
220 kV Psou — Bzybi OHL
110 kV Psou — Leselidze OHL
220 kV Shepsi — Dagomys ACL
220 kV Chernomorskaya — Poselkovaya
ACL
220 kV Adler CHPP — Psou ACL
220 kV Dagomys — Chernomorskaya ACL
220 kV Centralnaya — Dagomys ACL
220 kV Adler HPP — Chernomorskaya ACL
Length, km —
for OHL and
ACL; occupied
area, ha —
for SS
4.32
1.8087
34.035
17.139
51.391
2.437
0.813
45.955
50.876
9.666
75.52
61.99
7.52
Stavropolskoe
EMPS
330 kV Mashuk SS
Stavropol Krai, Pyatigorsk
5.5107
Caucasian Mineral Water Spas (territories
of health recreation areas and resorts)
Regional
330 kV 03 HPP-2 — Mashuk OHL
Stavropol Krai, Zheleznovodsk
0.0662
330 kV 04 Mashuk — Prokhladnaya OHL
Volgo-Dons-
koye EMPS
500 kV Balashovskaya — Lipetskaya
Vostochnaya OHL (towers No. 894–915)
Voronezh Region, Novokhop-
ersky District
500 kV Balashovskaya — Lipetskaya Za-
padnaya OHL (with branch line to Novovo-
ronezhskaya NPP)
110 kV Verkhny Baskunchak — Suyunduk
OHL
Line section of Volgo-Dons-
koye EMPS from 220 kV
Verkhny Baskunchak SS
0.0662
8.468
8.777
14.508
Khopyor State Nature Reserve
Federal
Bogdinsko-Baskunchaksky Nature Reserve
Regional
Location
in respect
to the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Type of territory
Type of activity
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
418
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
419
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
APPENDIX 9.
[ REGISTER OF SPECIALLY PROTECTED NATURAL AREAS WHERE FEDERAL GRID COMPANY OPERATES ]
Information on the electric grid facility
Environmentally sensitive area
MPS
EMPS
Name
MPS Volga
Nizhne-Volzhs-
koye EMPS
220 kV Saratov HPP — Kubra OHL with
branch line to Vozrozhdenie SS
Location
Saratov Region
Nizhegorods-
koe EMPS
500 kV Ulyanovskaya —Severnaya OHL
(newly named Veshkaima — Osinovka)
Republic of Mordovia,
Ichalkovsky District
500 kV Ulyanovskaya — Yuzhnaya OHL
(newly named Veshkaima-Arzamasskaya)
220 kV Syzran-1-2 OHL
Samara Region
500 kV HPP Veshkaima — Severnaya OHL
Ulyanovsk Region
Samarskoye
EMPS
Sredne-Volzhs-
koye EMPS
500 kV HPP Veshkaima — Yuzhnaya OHL
550 kV Cheboksarskaya HPP — Pomary
OHL
Mari El Republic
MPS North-
West
Karelskoe
EMPS
330 kV Kondopoga — Petrozavodsk OHL
(L-392), towers No. 47–54 on the territory
of the reserve
Kondopozhsky District,
Republic of Karelia
330 kV Kolskaya NPP — Monchegorsk
OHL, towers No. 91–107 on the territory
of the reserve
Murmansk Region,
Monchegorsky District
(western part of Kola peninsula)
330 kV Kolskaya NPP — Monchegorsk
OHL, towers No. 88–102 on the territory
of the reserve
Novgorodskoe
EMPS
330 kV Luzhskaya SS
Leningrad Region, Luzhsky
District
330 kV Gatchinskaya — Luzhskaya OHL
330 kV Pskov — Luzhskaya OHL
220 kV Pargolovo — Prospekt Ispytateley
OHL L-221
Saint Petersburg
220 kV Ruchi — Poluprovodniki OHL
330 kV Kingeseppskaya — Pskov OHL
Pskov Region
There are no subsurface and underground plots owned, leased or controlled by the Company.
Length, km —
for OHL and
ACL; occupied
area, ha —
for SS
11.85
24.47
24.4
25
17
17
0.4
2.535
5.425
5.17
5.2
4.83
4.91
1.687
0.915
20.3
Name
Khvalynsky National Park
Smolny National Park
Level
of importance
Location
in respect
to the territory
Federal
Federal
Type of territory
Type of activity
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Ground
Production
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Within
the territory
Samarskaya Luka National Park
Federal
Mariy Chodra National Park
Kivach State Nature Reserve
Lapland State Biosphere
Nature Reserve
Federal
Federal
Federal
Shalov-Perechitsky State Integral Nature Reserve
Regional
Novoorlovsky State Nature Reserve, as part
of the Kurortny Lesopark
Regional
Remdovsky Nature Reserve
Federal
420
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
421
APPENDIX 10.
[ REPORT OF THE AUDIT COMMISSION OF PJGC UES ]
APPENDIX 10.
[ REPORT OF THE AUDIT COMMISSION OF PJGC UES ]
APPENDIX 10.
Opinion of the Audit Commission
of Public Joint-Stock Company Federal Grid Company
of the Unified Energy System
Approved by the Audit Commission of PJSC FGC UES,
Minutes No. 5/2020
dated 19 March 2020
Moscow
422
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
423
APPENDIX 10.
[ REPORT OF THE AUDIT COMMISSION OF PJGC UES ]
APPENDIX 10.
[ REPORT OF THE AUDIT COMMISSION OF PJGC UES ]
424
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
425
APPENDIX 10.
[ REPORT OF THE AUDIT COMMISSION OF PJGC UES ]
APPENDIX 10.
[ REPORT OF THE AUDIT COMMISSION OF PJGC UES ]
426
annual report 2019
PJSC FGC UES
PJSC FGC UES
2019 annual report
427
T. V. Zobkova
S. A. Kim
E. A. Snigireva
D. N. Ponomarev
428
annual report 2019
PJSC FGC UES
APPENDIX 10.[ REPORT OF THE AUDIT COMMISSION OF PJGC UES ]