Annual report 2012

Social report 2012



AISEBM – Automated Information System of Electricity Billing Metering

AFL – Automatic frequency load

APCS – Automated Process Control System

OL – Overhead line

OPL – Overhead power line

AREU – All-Russian Electrounion

UPS – United Power System of Russia

SDCs – Subsidiaries and dependent companies

VHI – Voluntary health insurance

DOSAAF – Voluntary Society for Cooperation with the Army, Aviation, and Fleet

HUP –Housing and utility purposes

ZAO, CJSC – Closed joint-stock company

IP – Investment program

SE – Security equipment

IMS – Integrated Management System

KPI – Key performance indicators

FAOS – Factory-assembled outdoor switchgear

KonfOP – International Confederation of Consumer Societies

CSR – Corporate social responsibility

PL – Power line

MVD – Ministry of the Interior of the Russian Federation

MFCWWR – Minimum first-category worker wage rate

MGIMO – Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs of the Russian Federation

MIEP – International Institute of Energy Policy and Diplomacy

MNR – Ministry of Natural Resources and Environmental Protection of the Russian Federation

IDGC – Interregional distribution grid company

IFRS – International Financial Reporting Standards

EMERCOM – Ministry of Civil Defense, Emergencies and Disaster Relief of the Russian Federation

VAT – Value added tax

MPEI – Moscow Power Engineering Institute

MEDT – Ministry of Economic Development and Trade of the Russian Federation

R&D – Research and development

NSPC – Non-state pension coverage

NSPF – Non-State Pension Fund of the Electric Power Industry

OAO, JSC, OJSC – Open joint-stock company

MRSK Holding – JSC Interregional Distribution Grid Companies Holding (JSC IDGC Holding)

FGC UES – Open Joint-Stock Company Federal Grid Company of Unified Energy System (JSC FGC UES, Federal Grid Company)

RaEl – All-Russia Trade Association of Employers in the Power Industry

OMC – Operational mobile crew

EIA – Environmental impact assessment

OOO, LLC – Limited liability company

IDAES – Integrated Dispatching Administration of Energy Systems

HDP – Heat deficit period

SFA – Security and fire alarm

HPF – Hazardous production facility

OSC – Operational Situation Center

SWRA – Sectoral Wage Rate Agreement in the Electric Power Industry

OECD – Organisation for Economic Co-operation and Development

AECS – Automated emergency control systems

MPC – Maximum permissible concentration

MPL – Maximum permissible level

MPD – Maximum permissible discharge

SBC – Standing Bidding Commission

BPE – Bird protection equipment

DSW – Design and survey work

PU – Production unit

SS – Substation

RAO UES – Unified Energy System of Russia

RaEl – All-Russia Trade Association of Employers in the Power Industry

RP – Relay protection

RAS – Russian Accounting Standards

DGC – Distribution grid company

DP – Distribution point

REC – Regional energy commission

EGD – Electric grid district

SanPiN – Public health regulations

CAD – Computer-aided design

DPCE – Dispatching and process control equipment

SPZ – Sanitary protection zone

SSIW – Self-supporting insulated wire

MM – Mass media

QMS – Quality Management System

SO UPS – System Operator of the United Power System

HOSMS – Health and Occupational Safety Management System

SRO – Self-regulatory organization

EMS – Environmental Management System

II – Inventory items

TSS – Transformer substation

NC – Network connection

TU&R – Technical upgrading and renewal

TGC – Territorial generation company

OFT – Oil-filled transformer

OFST – Oil-filled sealed transformer

TSS – Transformer substation

TSO – Trade and sales organization

CHPP – Combined heat and power plant

FAS – Federal Antimonopoly Service of the Russian Federation

FZ – Federal Act

FTS – Federal Tariff Service of the Russian Federation

CDA – Centralized Dispatching Administration

CSC – Customer service center

NCC – Network control center

EE – Emergency event

ES – Emergency situation

CSP – Centralized security panel

GRI – Global Reporting Initiative

SO – Prefix for GRI Society Performance Indicators

PR – Public Relations

LA – Prefix for GRI Labor Practices and Decent Work Performance Indicators

HR – Prefix for GRI Human Rights Performance Indicators

IR – Investor Relations

ISO – International Organization for Standardization

RAB – Regulatory Asset Base

EBITDA – Earnings before interest, tax, depreciation and amortization

EC – Prefix for GRI Economic Performance Indicators

EN – Prefix for GRI Environmental Performance Indicators

EU – Prefix for GRI Electric Utility Sector-Specific Performance Indicators

AA1000AS – AccountAbility Assurance Standard

AA1000SES – AccountAbility Stakeholder Engagement Standard


kV (kilovolt) – unit of voltage;

kVA (kilovolt-ampere) – unit of apparent power;

kWh (kilowatt-hour) – unit of electric power output;

MVA (megavolt-ampere) – unit of apparent power.


Dividend is the portion of the Company’s net profit distributed to shareholders.

Subsidiaries and dependent companies are the corporate entities in which the Company holds more than 20% of voting shares or, by virtue of a controlling interest or under an agreement or otherwise, is able to control the decisions made by such corporate entities.

Stakeholders are groups, organizations, and individuals that can affect or be affected by the goals and actions of an organization as a whole.

MICEX Index is the price-based and market capitalization-weighted composite stock index including the 30 most liquid shares in Russian issuers listed on the MICEX Stock Exchange. The MICEX Index is one of the principal indicators of the Russian stock market and has been calculated since September 22, 1997 (the base value is 100 points).

MICEX PWR, MICEX Power Index is the index of shares in electric utilities. The sectoral indices are price-based and market capitalization-weighted indices of the most liquid shares in Russian issuers listed on MICEX Stock Exchange.

Market capitalization is the market value of a business calculated as the share price times the total number of outstanding shares.

Reactive power compensation is the impact on the reactive power balance in an electricity system center for voltage control purposes and in distribution grids for electricity loss reduction purposes.

Corporate social policy is the policy in a company’s provision of resources and, at its own expense, of social services, benefit payments, and other benefits for employees and other categories of people.

Corporate social responsibility is the responsibility of a company as an employer, a business partner, and a member of the community (the boundary of the community is determined by the regions where the company operates: at municipality level, at a country level, at a global level); the part of the company’s strategy aimed at increasing its presence in society; the ability to have a positive effect on the community where the company operates. Corporate social responsibility includes the company’s responsibility in its relationships with partners; responsibility with respect to customers; responsible policy with respect to employees; environmental responsibility; the company’s responsibility to society as a whole.

Power line is an electrical installation composed of wires, cables, insulating elements, and supporting structures designed to carry electric power between two points of an energy system with possible intermediate withdrawal.

Interregional distribution grid company (IDGC) is an open joint-stock company formed on a territorial basis.

Return on invested capital method (RAB) is the tariff design system based on long-term tariff regulation intended for attracting large investment in the industry. The methodology is based on the principle of ensuring the return on capital invested in companies’ assets for the specified period corresponding to the relevant operating life of assets and of receiving the rate of return. The rate of return determined by the government should correspond to the level of risks in grid companies and ensure the industry’s appeal to investors.

Net delivery is the quantity of electricity delivered to ultimate customers connected to a grid organization’s networks.

Customer/client is an entity receiving the results of a business process (products, services). A customer may be: internal — located within an organization and, in the course of its activities, using the results (output) of the preceding business process; external — located outside an organization and using or consuming the result of activities (output) of an organization.

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Stock market is the part of the financial market covering the organized securities trading through various exchanges and in the OTC market.

Net assets are the value calculated as assets minus liabilities.

Electric power industry is the Russian economic sector that includes an aggregate of economic relationships arising from the generation (including combined heat and power) and transmission/distribution of electricity, operational dispatching control in the electric power industry, and electricity sales and consumption using production facilities and other property items (including those included in the United Power System of Russia) that are owned by electricity industry entities or other persons by virtue of ownership or on other grounds provided for in Federal Acts. The electric power industry forms the basis for the operation of the economy and life support.