Characteristics of assets

The level of deterioration at IDGC of Centre electric grid facilities belonging to IDGC of Centre did not change compared to the previous reporting period and amounted to 73.2% (as at December 31, 2015).

When calculating the assets’ deterioration level, the lifespan of the facilities is taken in consideration:

• 25 years for substations and cable lines;
• 35 years for overhead lines.

The technical state of the Company’s assets and the quality of the management of power grid facilities influences the reliability of the performance of the power grid complex within the territory where IDGC of Centre’s operates, and the quality of the Company’s electricity transmission services.

To ensure the operational reliability of its power grid facilities, IDGC of Centre has implemented the following actions:

• An Automated Production Assets Management System was deployed and is currently in use (hereinafter, the PAMS). More details on the Assets Management System are shown in the Company’s Annual Report for 2014.
• Power capacities are renovated using innovative equipment.
• A multi-year special reliability programme is implemented.
• To minimise the consequences of equipment failures, all of the Company’s production facilities were insured.

In addition to ensuring efficient operations, the Company implements its Repair Programme and performs preparatory works for operation during the winter-autumn season.

Repair Programme

IDGC of Centre’s Repair Programme was developed based on prospective (multi-year) schedules of power grid facilities repair, with consideration for equipment priorities, according to the technical state of the Company’s power grid facilities and the consequences of their failure for consumers. The Programme includes the repair of main and auxiliary equipment, including clearing the electricity transmission line right-of-way from trees and bushes, the repair and construction of buildings and motor transportation. The Programme’s planned indicators are approved on an annual basis by the Board of Directors, and are outlined in the Company’s Business Plan.

In 2015, several of the Programme’s activities were carried out in excess of target values due to the provision of additional activities completed for in preparation for the 2015-2016 autumn-winter season, including: the implementation of the supervisory authorities’ instructions, and the implementation of emergency and repair works. The Company’s specialists performed repairs on up to 18.5 km of power lines, 189 substations and on up to 4.8 transformer substations. The expenses for implementing the Programme amounted to over RUB 2 bn.