Strategic Areas of Growth
- The Government of the Russian Federation approved the Strategy for the Russian Power Grid Complex until 2030.
- The Company carried out work in key areas approved by the Board of Directors.
- A new system of key performance indicators (KPI) for the Company and its management was implemented in 2013: the number of operating and financial indicators including indicative KPI has significantly grown.
Strategy for the Russian Power Grid Complex
In April 2013, the Government of the Russian Federation approved the Strategy for the Russian Power Grid Complex until 2030 (hereinafter the “PGC Strategy”) (Decree No. 511-p dd. April 03, 2013).
The PRC Strategy directs particular attention to the operations of JSC Russian Grids and its subsidiaries, which control around 70% of the distribution grids and 90% of transmission grids in Russia.
According to the PGC Strategy, the main goal of the power grid complex is to ensure secure, high quality and available power supply to the Russian consumers in the long term. This should be done through shaping the grid infrastructure of the highest possible efficiency in line with international standards, with the power transmission tariffs ensuring an acceptable level of expenses on electric power for the Russian economy and the branch’s investment appeal for an adequate return on capital.
Targets for the power grid complex established by the PGC Strategy are:
- To ensure reliability and quality of power supply on a level that satisfies consumer demand.
- To increase safety of power supply, in particular, to reduce the number of accidents, including unregistered accidents.
- To reduce the number of free power transfer zones.
- To increase efficiency of the power grid complex, inparticular:
- To increase capacity load;
- To decrease specific investment expenses;
- To lower operating expenses;
- To reduce the amount of loss;
- To provide for competitive tariffs for business;
- To decrease cross-subsidization as far as the grid tariff is concerned;
- To reduce the number of companies that do not satisfy the requirements for a qualified grid enterprise, in particular, requirements for the technical availability of reserves necessary to cope with failures, and staff qualification requirements.