2015 Annual Report

ru

Investments

Investment indicators

The amount of the capital investment by IDGC of Centre in 2015 totaled RUB 12,973 mln. All the measures taken under the investment programme were in line with the planned indicators and requirements approved by the authorities of the regions where the Company operates.

In 2015, the Company commissioned 4,785 km of power lines and 1,228 MVA of transformer capacity. There was a significant increase in capacity due to accepting and purchasing the assets of other companies — 6.7 k km and 1.7 k MVA, including the assets of its subsidiary — Yargorelectroset OJSC (3,976 km and 1,174 MVA).

Actual investment by IDGC of Centre in 2013–2015
Period Capital investment (VAT excl) Commissioning of fixed assets (VAT excl) Financing (incl. VAT) Commissioning of capacity Capacity increase
RUB mln km MVA km MVA
2013 14,425 15,951 17,622 5,689 1,362 3,112 891
2014 12,177 12,913 14,245 5,110 1,107 2,560 602
2015 12,973 12,758 15,184 4,785 1,228 6,728 1,739
Capacity commissioning in  2013–2015

Investments in 2013–2015, RUB mln

Areas and Structure of Capital Investment Financing

CAPEX financing structure in 2013–2015, RUB mln

The amount of capital investment financing in 2015 totalled RUB 15,184 mln (VAT included) and was used for the following measures:

  • 45% for retrofitting and upgrading: RUB 6,840 mln;
  • 54% for new construction and expansion: RUB 8,209 mln;
  • 1% to acquire electrical grid assets, and to implement other programmes and measures (other): RUB 135 mln.
15,184 RUB mln were CAPEX funding of IDGC of Centre in 2015
CAPEX structure in  2013–2015, RUBmln

In 2015, capital investments amounted to RUB 12,973 mln and were used for the following measures:

  • 45% for retrofitting and upgrading: RUB 5,787 mln;
  • 54% for a new construction and an expansion: RUB 7,051 mln;
  • 1% to acquire electrical grid assets, and to implement other programmes and measures (other): RUB 135 mln.
12,973 RUB mln were the amount CAPEX of IDGC of Centre in 2015

There were significant changes in the structure of capital investment in 2015.

Investments into new construction and extension took the largest share in the investment programme in 2015, and there was an increase up to 54% of total investment (compared to 44% in 2014) due to the necessity of new grid connections and grid infrastructure development in limited financial conditions.

Investments into retrofitting and upgrading decreased to 45% (compared to 56% in 2014) due to optimisation of the retrofitting and upgrading programme and measures to control construction and retrofitting expenses.

Investment in financing in 2015 amounted to RUB 15,184 mln, an increase by 6.6% compared to 2014. This increase was due to increase in grid connection financing.

Spheres of financing in  2013–2015, RUB mln
Areas of funding 2015 2014 2013
Total 15,184 14,245 17,622
Priority projects 125 295 756
retrofitting and upgrading 56 126 279
new construction 68 169 477
Top priority programmes
retrofitting and upgrading
new construction
Programmes 2,092 2,391 2,878
retrofitting and upgrading 1,805 2,384 2,848
new construction 287 6 30
Grid connection, including 9,436 6,693 9,310
Grid connection sites with capacity of over 750 kW (НV, MV1) 1,650 610 1,037
Grid connection sites with capacity of 100 — 750 kW (MV2) 1,070 1,567 3,214
Grid connection sites with capacity of 15 — 100 kW 1,741 1,976 1,978
Grid connection sites with capacity of up to 15 kW 4,976 2,541 3,080
Generation
Distribution grids 2,162 2,687 2,126
retrofitting and upgrading 1,412 2,575 2,066
new construction 749 113 60
Automation of technological control (excl. automatic system for commercial measurement of electricity consumption) 336 561 1,040
Electricity measurement instruments 72 306 350
Safety programmes 47 112 91
Acquisition of grids, land plots and other facilities 110 8 12
Other programmes and measures 804 1,191 1,060
For reference:
retrofitting and upgrading 6,840 7,914 8,733
new construction 8,209 6,282 8,802
Other 135 49 88

Information on performance at priority facilities in 2015 is shown in Appendix to this Annual Report.

In 2015, IDGC of Centre did not implement projects financed by the Federal budget.

INVESTMENT PROGRAMME RESULTS

The measures taken by IDGC of Centre in 2015 under the investment programme had the following results:

Reduction of investment costs
15 % was the increase of the investment
efficiency in 2015 versus 2012
2,703 RUB mln were the effect of reducing investment costs

As a result of using methods of planning the reduction of investment costs by 30% compared to 2012 (pursuant to the Strategy for the Russian Power Grid Complex development approved by Decree No 511-r of the Government of the Russian Federation dated April 3, 2013), IDGC of Centre reduced investment costs by RUB 2,703 mln (excluding VAT). The Strategy for the Russian Power Grid Complex development stipulates the increase of investment efficiency by 30% by 2017. The target increase of 15% by 2015 was achieved.

Contracts for grid connection
Contracts executed and grid connection certificates signed
Number of contracts plan — 2015 actual — 2015 Deviation — actual/plan
abs. %
Number of contracts executed and grid connection certificates signed 48,069 63,302 15,233 24
Applicants for maximum capacity of up to 15 kW included (with previously connected power installations) 46,078 60,983 14,905 24
Capacity volume (executed contracts, grid connection certificates signed), MW 1,054 1,137 82 7
Applicants for maximum capacity of up to 15 kW included (with previously connected power installations), MW 472 644 172 27

To perform the activities of power input was provided on grid connection.

Commissioning of capacity required for the above measures
Parameter plan — 2015 actual — 2015 Deviation — actual/plan
abs. %
Total for grid connection, km 2,972 3,575 603 17
Applicants for maximum capacity of up to 15 kW included, km 2,040 2,685 645 24
Total for grid connection, MVA 765 851 85 10
Applicants for maximum capacity of up to 15 kW included, MVA 170 209 39 19
Reduction of electricity losses
164.6  mln kWh were the effect of the Programme for energy saving
and energy efficiency

In 2015, pursuant to the energy saving and efficiency improving programme, the Company reduced electricity losses by 164.6 mln kWh (vs. plan — 118.44 mln kWh). The loss reduction under the investment programme was as follows:

  • Technical loss reduction: plan — 4.45 mln kWh, actual — 7.12 mln kWh, or 160% of the plan.
  • Modernisation of the electricity metering system and the billing system: plan — 45.34 mln kWh, actual — 49.85 mln kWh, or 110% of the plan.
Capacity utilisation and increase of main substations
36 % actual capacity utilisation at the end of 2015

The actual capacity utilisation in 2015 was 36% vs. 31% of the plan.

Depreciation of fixed assets
73.2 % is the level of wear and tear of power grid facilities of IDGC of Centre

As of December 31, 2015 the depreciation of the Company’s facilities was 73.2%.

Breakdown reduction
by 21.8 % the specific failure rate decreased

The number of breakdowns reduced by 19.5% in 2015 compared to 2014. The breakdown rate per unit decreased by 21.8% and was 9.7 breakdowns per 1000 equipment units.

For more details see Development of strategic priorities.

Long-term Investment programme

The Company’s long-term investment programme has been designed taking into account the Company’s current production goals, objectives and development plans, and the regions in which it operates. The programme is also based on investment programmes of the Company’s branches approved by the regional executive bodies of the Russian Federation territorial entities.

The planned capital investment under the 2016-2020 investment programmes provides for an increase in investments with no significant changes in dynamic pattern.

The development of the long-term programme of the Company involved scenarios of power industry development up to 2030Approved by Decree No. 511-r of the Government of the Russian Federation dated April 3, 2013., the requirements of the industry’s technological policy, and social and economic growth forecasts for the regions.

Planned CAPEX in 2016–2020, RUB mln w/o VAT
Planned CAPEX