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Annual report 2012

Social report 2012

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Federal Target-Oriented Programs

The programs that involve financing from federal budget funds are carried out, coordinated, and supervised by the Department for Implementation of Federal Target-oriented Program Projects.

The Company subsidiaries implemented the following programs in 2012:

Kubanenergo

The Program of the Construction of Olympic Games Sites and the Development of Sochi as a Mountain Climate Resort was approved by Resolution of the Government of the Russian Federation No. 991 of December 29, 2007, “On the Program of the Construction of Olympic Games Sites and the Development of Sochi as a Mountain Climate Resort.”

Kubanenergo is responsible for the construction and rehabilitation of 16 facilities included in the Program of the Construction of Olympic Games Sites and the Development of Sochi as a Mountain Climate Resort.

The electric grid construction in the area of Kubanenergo’s responsibility under the Program of the Construction of Olympic Games Sites consists of the following facilities:

  • Five substations rated 110 kV with total capacity of 340 MVA;
  • Nine power lines rated 110 kV with a total length of 198 kilometers, including 150 kilometers of overhead lines and 48 kilometers of cable lines;
  • Construction and rehabilitation of the City Electricity Distribution Network (6–10 kV) with a total length of 824 kilometers in five Sochi Electricity Distribution Network Regions;
  • Construction of the distribution service facility for the Krasnaya Polyana Electricity Distribution Network Region.

The total amount of financing from federal budget funds is 26,328 million rubles.

The substations rated 110 kV include:

  1. Paragraph 117 of the Program: Bocharov Ruchey Substation (110 kV) with branch power lines (design and development, construction).
  2. Paragraph 125 of the Program: Vishnyovaya Substation (110 kV) with branch power lines (design and development, rehabilitation).
  3. Paragraph 126 of the Program: Vereshchaginskaya Substation (110 kV) with branch power lines (design and development, rehabilitation).
  4. Paragraph 127 of the Program: Bytkha Substation (110 kV) (design and development, rehabilitation).
  5. Paragraph 128 of the Program: Rodnikovaya Substation (110 kV) with branch power lines (design and development, rehabilitation).

The construction and rehabilitation of the 110 kV network includes the following power lines:

  1. Paragraph 154 of the Program: Overhead lines (110 kV) to supply power from Sochi TPP to Matsesta Substation, from Matsesta Substation to Khosta Substation, from Khosta Substation to Krasnopolyanskaya HPP, from Krasnopolyanskaya HPP to Sochi TPP; the length of the line is 27.1 kilometers.
  2. Paragraph 155 of the Program: Overhead lines (110 kV) to supply power from Sochi TPP to Vereshchaginskaya Substation, from Vereshchaginskaya Substation to Dagomys Substation; the length of the line is 17.5 kilometers.
  3. Paragraph 159 of the Program: Overhead lines (110 kV) from Shepsi Substation to Dagomys Substation; the length of the line is 75.9 kilometers.
  4. Paragraph 156 of the Program: Overhead lines (110 kV) to supply power from Sochi TPP to Sochi Substation, from Sochi Substation to Pasechnaya Substation, from Pasechnaya Substation to Dagomys Substation; the length of the line is 16.5 kilometers.
  5. Paragraph 157 of the Program: Overhead lines (110 kV) from Psou Substation to Adler Substation, from Adler Substation to Kudepsta Substation, from Kudepsta Substation to Khosta Substation; the length of the line is 27.4 kilometers.
  6. Paragraph 158 of the Program: Overhead lines (110 kV) from Psou Substation to Yuzhnaya Substation, from Yuzhnaya Substation to Adler Substation; the length of the line is 11.6 kilometers.
  7. Paragraph 145 of the Program: Cable and overhead lines (110 kV) to supply power from Sochi TPP to Sochi Substation; the length of the line is 5.3 kilometers.
  8. Paragraph 146 of the Program: Cable and overhead lines (110 kV) to supply power from Sochi TPP to Khosta Substation; the length of the line is 17.6 kilometers.
  9. Paragraph 161.1 of the Program: Branch power lines (110 kV) to supply power of Adler TPP to existing lines from Yuzhnaya Substation to Adler Substation (design and development, construction); the length of the lines is 0.76 kilometer.

The Program of construction of the City electricity distribution network consists of the measures held in four Sochi Electricity Distribution Netwok Regions (EDNR):

  • Krasnaya Polyana EDNR
  • Adler EDNR
  • Khosta EDNR
  • Sochi EDR (Khosta-Vereshchaginskaya)
  • Sochi EDNR (Vereshchaginskaya-Bocharov Ruchey)

Construction of the distribution service facility for the Krasnaya Polyana Electricity Distribution Network Region.

The utilization of investments from 2009 to 2012 reached 11,381 million rubles. The financing of investments from 2009 to 2012 totaled 12,239 million rubles, inclusive of VAT, with 10,063 million rubles, inclusive of VAT, financed from federal budget funds.

The results achieved in 2012 are as follows:

Program

2012

Capital Investment, million rubles Commissioned Fixed Assets, million rubles Financing, million rubles, inclusive of VAT MVA Kilometers
Plan Actual Plan Actual Plan Actual Plan Actual Plan Actual
Construction of Olympic Games Sites 6,611.7 6,314.1 2,130 1,990.3 5,847.6 5,835.7 212 219.25 89.7 86.9

The utilization and financing of investments were 95% and 99% respectively; commissioned fixed assets were 93%; commissioned transformer capacity and power lines in physical terms were 103% and 96% respectively. Nine facilities were put into operation:

  • Overhead lines (110 kV) to supply power from Sochi TPP to Sochi Substation, from Sochi Substation to Pasechnaya Substation, from Pasechnaya Substation to Dagomys Substation (rehabilitation), Phase 1 with a length of 4.3 kilometers;
  • Overhead lines (110 kV) from Shepsi Substation to Dagomys Substation (rehabilitation), Phase 1 with a length of 12.46 kilometers;
  • City Electricity Distribution Network of the Krasnaya Polyana Electricity Distribution Network Region, Phase 1 with a length of 30.75 kilometers and installed capacity of 26.81 MVA;
  • City Electricity Distribution Network of the Adler Electricity Distribution Network Region, Phase 1 with a length of 1.19 kilometers and installed capacity of 6.38 MVA;
  • City Electricity Distribution Network of the Khosta Electricity Distribution Network Region, Phase 1 with a length of 33.23 kilometers and installed capacity of 16.58 MVA;
  • City Electricity Distribution Network of the Sochi Electricity Distribution Network Region (Khosta– Vereshchaginskaya), Phase 1 with a length of 0.4 kilometer and installed capacity of 4.52 MVA;
  • City Electricity Distribution Network of the Sochi Electricity Distribution Network Region (Vereshchaginskaya–Bocharov Ruchey), Phase 1 with a length of 3.18 kilometers and installed capacity of 4.86 MVA;
  • Branch power lines (110 kV) to supply power of Adler TPP to existing lines from Yuzhnaya Substation to Adler Substation (construction) with a length of 0.73 kilometer;
  • Bocharov Ruchey Substation (110 kV) with branch power lines (design and development, construction) with installed capacity of 80 MVA.

The construction and installation of cable and overhead lines (110 kV) to supply power from Sochi TPP to Sochi Substation were completed. Their commissioning is scheduled for 2013.

In accordance with the limits allocated for the 2013 capital investment program of Kubanenergo, it is planned to finance 16,059 million rubles, inclusive of VAT, of investments, including 16,265 million rubles, inclusive of VAT, from federal budget funds. It is planned to utilize investments of 13,206 million rubles.

The Program of the Construction of Olympic Games Sites and the Development of Sochi as a Mountain Climate Resort is scheduled for completion in 2013. It is planned that the facilities will finally be put into operation in or before October 2013.

LENENERGO

The Program to Renew Cable Lines of 6–110 kV in Saint Petersburg is formulated pursuant to Instructions of the Government of the Russian Federation No. VP-P9-5804 of October 6, 2009, in order to enhance the operating reliability of the cable network and secure an uninterrupted electricity supply for the city’s districts. The program involves making investments in the replacement of cable lines in Saint Petersburg and Kronshtadt, including out of federal budget funds. This program is developed and carried out to provide customers with a more reliable electricity supply and prevent any possible severe process failures.

As part of implementing the program, the Company, the Saint Petersburg Administration, and LENENERGO entered into tripartite Agreement No. 46-s of August 24, 2011, for cooperation in carrying out the program in 2011–2014.

In 2012, the Saint Petersburg Administration decided to transfer to the ownership of LENENERGO electric grid facilities as payment of its contribution, which lead to adjustments to the tripartite agreement.

At present, the program involves the rehabilitation of 22 cable lines with a total length of 116 kilometers:

  • Rehabilitation of CL 6–110 kV as related to CL 110 kV: K-101, K-102, K-103, K-104, K-105, K-106, K-117, K-118, K-119, K-120, K-126, K-127, K-128, K-129, K-140, K-141. Total length: 72 kilometers;
  • Rehabilitation of CL 6–110 kV as related to CL 35 kV: K-29, KS-2, KS-3, KS-4, KS-5. Total length: 37.6 kilometers;
  • Construction of CL 35 kV: SS No. 86–SS No. 21. Total length: 6.7 kilometers.

The total amount of financing is 7,616 million rubles, including 5,000 million rubles, inclusive of VAT, of federal budget funds and 2,616 million rubles, inclusive of VAT, of LENENERGO’s own funds.

As of January 1, 2013, CL 110 kV K-105 and K-106 with a length of 8.3 kilometers were put into operation “on temporary terms.” Their commissioning “on permanent terms” will take place when CHPP-2 is completed. The commissioning is scheduled for October 2014.

The utilization of investments from 2010 to 2012 reached 2,404 million rubles. The financing of investments from 2010 to 2012 totaled 2,379 million rubles, inclusive of VAT, with 1,975 million rubles, inclusive of VAT, financed from federal budget funds.

The results achieved in 2012 are as follows:

Program

2012

Capital Investment, million rubles Commissioned Fixed Assets, million rubles Financing, million rubles, inclusive of VAT Kilometers
Plan Actual Plan Actual Plan Actual Plan Actual
Renewal of Cable Lines of 6–110 kV 1,840 1,083 635 612 2,310 1,116 9.4 8.3

The utilization and financing of investments were 59% and 48% respectively; commissioned fixed assets were 96%; commissioned cable lines in physical terms were 88%.

The failure to attain the targets of the program in 2012 is due to a number of objective factors, namely: the necessity of changing technical solutions in the course of work; difficulty in obtaining the warrant for planned work; the lengthy obtainment from the federal agency in charge of state expert reviews, Glavgosekspertiza of Russia, of a positive opinion on facilities covered by the program; and the failure by contractors to perform their contractual obligations.

The work described below was completed in 2012:

  • CL 110 kV K-103 and K-104 (total cable line length: 8.7 kilometers): laid cable: 7.7 kilometers;
  • CL 110 kV K-105 and K-106 (total cable line length: 8.3 kilometers): Construction and installation were completed; the cable line was put into operation “on temporary terms”;
  • CL 110 kV K-126 and K-127 (total cable line length: 17 kilometers): laid cable: 8.6 kilometers.

Glavgosekspertiza of Russia issued positive opinions on design and estimate documents for 13 facilities: CL 110 kV K-103, K-104, K-105, K-106, K-126, K-127, K-128, K-129, K-117, K-118, K-119, K-120, CL 110 kV PS-18A–CHPP-1. Positive opinions were obtained on design documents for four facilities: CL 110 kV K-101, K-102, K-140, K-141.

Under the 2013 capital investment program of LENENERGO approved by the Investment Commission of the Company, it is planned to finance 3,025 million rubles, inclusive of VAT, of investments, including 2,246 million rubles, inclusive of VAT, from federal budget funds. It is planned to utilize investments of 2,736 million rubles. Additionally, it is planned that work on 12 cable lines rated 110 kV will be completed in 2013: K-101, K-102, K-103, K-104, K-105, K-106, K-117, K-118, K-119, K-120, K-126, K-127, K-140, K-141, and that work on one cable line rated 35 kV will be completed in the same year: SS No. 86–SS No. 21 with a total length of 63 kilometers.

IDGC of Siberia

The Investment Project of Implementing the External Electricity Supply to the Raspadskaya Mine and Enhancing the Reliability of Electricity Supply to the Mezhdurechensk District, Kemerovo Region, was approved by Instructions of Prime Minister of the Russian Federation Vladimir Putin No. VP-P9-3234 and No. VP-P9-3235 of May 18, 2010.

The project involves the construction of five electric grid facilities: three SS 110 kV Raspadskaya-4, Raspadskaya-5, and Raspadskaya-6 with total capacity of 192 MVA, and two OL 110 kV Tom-Usinskaya TPP–Raspadskaya-5-1 and Tom-Usinskaya TPP–Raspadskaya-5-2 with a total length of 104 kilometers.

The implementation of these projects is aimed at:

  • Creating conditions for the development of the regional coal industry;
  • Providing an uninterrupted and accident-free electricity supply for Raspadskaya Coal Company entities;
  • Fulfilling requirements applicable to the reliability of electricity supply for coal producers;
  • Meeting the growing demand for electricity in Mezhdurechensk.

According to the design and estimate documents approved by the agency in charge of state expert reviews, budget costs are 2,244 million rubles, inclusive of VAT. Actually financed investments totaled 1,733 million rubles, inclusive of VAT. The economic effect was 511 million rubles, inclusive of VAT.

The utilization of investments from 2010 to 2012 reached 1,475 million rubles. The financing of investments from 2010 to 2012 totaled 1,733 million rubles, inclusive of VAT, with 1,726 million rubles, inclusive of VAT, financed from federal budget funds.

The financing and utilization of investments in 2012 were 263 million rubles, inclusive of VAT, and 275 million rubles, exclusive of VAT, respectively.

In the 2nd quarter of 2012, all of the project’s facilities were put into operation, namely:

  • Two single-circuit OL 110 kV Raspadskaya-5-1 and Raspadskaya-5-2 with dimensions of 220 kV overhead power lines, with a total length of 104 kilometers from Tom-Usinskaya TPP to SS Raspadskaya-5. The construction of 104 kilometers of OL 110 kV involved the installation of 516 foundation-based towers and over 400 tonnes of ACSR cables with high-capacity and high-strength characteristics;
  • Three substations rated 110 kV: Raspadskaya-4 with capacity of 2x40 MVA, Raspadskaya-5 with capacity of 2x16 MVA, and Raspadskaya-6 with capacity of 2x40 MVA.

The construction of the three substations used the industry’s advanced technology:

  • Tolyatti-made supply transformers based on updated technology reducing standby losses, dimensions, and transformer oil consumption. This improves the environmental and fire safety of facilities;
  • For the first time in Siberia, 110 kV switchgear was equipped with Siemens DTC modules. The use of this compact equipment decreases the area of power facilities multifold compared with its non-compact equivalents and reduces operating expenses, including electricity losses;
  • Modern equipment was installed for relay protection: MICOM and SEPROTEC microprocessor terminals, OVOD-M short-circuit arcing protection, and AURA accident recorders. The protection system protects electric grid equipment from damage caused by process failures and prevents crisis situations;
  • Counterterrorism protection for the new substations is provided by CCTV cameras, perimeter alarm equipment, and an antidigging system.

In order to ensure the timely completion of the project, the following measures were taken:

  • The design period was shortened by the use of aerial photography and template solutions;
  • Siemens equipment was delivered earlier;
  • Materials and special equipment were delivered by plank road, by ferry, and by ice road across the Tom River and via 11 crossing points across small rivers, which was not provided for in design documents;
  • The maximal involvement of IDGC of Siberia’s equipment and personnel (27 people and 17 off-road special vehicles);
  • The use of a two-shift work schedule.

IDGC of Northern Caucasus

The Comprehensive Program of Measures to Reduce Above-standard Electricity Losses in Distribution Networks in the Republic of Dagestan, the Republic of Ingushetia, and the Chechen Republic is formulated pursuant to paragraph 3 of Minutes of the Meeting of the Government of the Russian Federation No. 30 of September 15, 2009, and in accordance with paragraph 2 of Minutes of the Meeting at the Prime Minister of the Russian Federation No. VP-P16-4pr of January 23, 2010. The Comprehensive Program specifies measures to organize, modernize, and automate metering procedures for all billing metering points and for the key main substations that require electricity metering.

The program aims to:

  • Reduce electricity losses to the level of network losses in each of these regions;
  • Improve the measuring accuracies of existing metering stations and exclude human error;
  • Automate and form balances for electric grid districts and, overall, for branches;
  • Reliably make and analyze the electricity balance;
  • Measure power flows between voltage levels by introducing interval electricity metering at the secondary voltage level.

As of the end of December of 2012, the following indicators of the Comprehensive Program were attained:

  • 564,936 single-phase meters and 36,792 three-phase meters were purchased, including installing 414,988 single-phase meters and 8,604 three-phase meters, or a total of 423,592 metering stations against the total plan of 642,108;
  • 90 transformer substations rated 110 kV and 149 transformer substations rated 35 kV were automated;
  • 56 data processing centers were set up.

In the 4th quarter of 2012, Glavgosekspertiza reaffirmed a positive opinion on Comprehensive Program projects worth a total of 6,032 million rubles, inclusive of VAT. Under existing agreements, program implementation costs are 5,229 million rubles, inclusive of VAT. Therefore, a saving is expected to reach 803 million rubles, inclusive of VAT.

The utilization of investments from 2011 to 2012 reached 2,550 million rubles. The financing of investments from 2011 to 2012 totaled 3,637 million rubles, inclusive of VAT, with 2,406 million rubles, inclusive of VAT, financed from federal budget funds.

The project was financed in 2012 out of the funds received by IDGC of Northern Caucasus in the amount specified in paragraph 5 of Article 11 of Federal Law No. 357-FZ of December 13, 2010, “On the Federal Budget for 2011 and the Planning Period of 2012 and 2013.” The project was also financed from the funds borrowed for the project implementation before the receipt of the funds specified in paragraph 1 of Article 11 of Federal Law No. 371-FZ of November 30, 2011, “On the Federal Budget for 2012 and the Planning Period of 2013 and 2014.”

Based on the planned targets of the capital investment program of IDGC of Northern Caucasus approved by Order of the Ministry of Energy of the Russian Federation No. 616, 2,549 million rubles, inclusive of VAT, or 86%, was actually financed, including 2,406 million rubles, inclusive of VAT, from federal budget funds. The amount of utilized investments covered by work completion certificates was 2,284 million rubles, exclusive of VAT, or 87% of the plan.

The project implementation in 2012 involved certain delays necessitating the postponement of the program’s completion to 2013. This is due to several reasons:

  • Low-quality work, nonconformities found by on-site inspections conducted by the relevant divisions of IDGC of Northern Caucasus, and, consequently, failure to sign KS2 and KS3 certificates.
  • The unsatisfactory technical condition of power lines, the state of TP-6/10-0.4 kV transformer substations where data collection and transmission devices were installed, which made it difficult for contractors to install meters and other metering equipment in a timely manner.
  • Opposition from customers and their preventing contractors’ personnel from having access to their electrical installations in the course of carrying out the Comprehensive Program.
  • Sociopolitical tensions in the North Caucasian regions and repeated counterterrorist operations adversely affected free movement of contractors’ personnel and their ability to access facilities.

Under the 2013 capital investment program of IDGC of Northern Caucasus approved by the Investment Commission of the Company, it is planned to finance 1,704 million rubles, inclusive of VAT, of investments.

With adjustments based on the experience of its implementation in 2012, the Comprehensive Program is scheduled for completion in 2013, which will make it possible in full to:

  • Create conditions for paying for actually consumed energy resources;
  • Reduce a burden on customers, including state-financed entities;
  • Build a system ensuring 100% payment for energy resources in accordance with meter readings;
  • Form a system of incentives for the energy-saving behavior of households and corporate entities;
  • Find an economically feasible, legislatively formalized, and practically proven solution for electricity metering for separate houses and separate apartments;
  • Reliably prepare and analyze electricity balances (balancing of distribution networks rated 10–0.4 kV, balancing of distribution network sections rated 110–35 kV, balancing of IDGC of Northern Caucasus divisions).