BOARD OF DIRECTORS’ PROGRESS REPORT
2.2.3

Technological connection

Sequence of activities to connect filer’s equipment to OAO IDGC of Urals’ networks has 3 main stages presented by the flow chart below:

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Detailed sequence of activities on every stage and deadlines are set by a Company’s bylaw – The Connection to OAO IDGC of Urals’ Networks Regulations. The Regulations scrupulously describe connection procedure and meet requirements set by the Government Decree[13]. The Company enhances access to energy infrastructure in several directions, the core ones being as follows:

  • improvement of interactive customer relations channels;
  • automation of control over connection process, based on the 1C software platform;
  • regulation of business processes related to interaction between structural units, when connecting a customer.

As a part of online customer relations evolution, pursuant to changes in legislation, we upgraded “user’s account” function on the official web-site in 2017, now featuring the following functions:

  • signing and exchange of documents in electronic form;
  • conclusion of a contract on energy supply, electricity sales (incl. electronic form);
  • card payment for connection services;
  • billing with automatic entering of required requisites of the parties.

Besides, for quick interaction with customers we integrated WhatsApp and Telegram instant messaging on our corporate web-site.

For efficient interaction between OAO IDGC of Urals structural units during connection process we integrated cross-functional links with scheduled completion time into the automated control system supervising connection process. Thus, a unit liable for capital construction inputs live data on designing and construction stages, performed by OAO IDGC of Urals under a connection contract (contractor selection tenders, conclusion and execution of a contractor agreement, etc.), into the system, enabling a unit in charge of connection to monitor and schedule actual connection of filers’ equipment.

As a part of regulating internal processes of interaction between units during connection, we effected typing of connection process on all levels (branch – production department – power distribution zone), optimized internal cross-functional links, enforced compliance with legislation and implementation of amendments to legislation into connection process. Reduction of connection terms is the main focus of these measures.

Core administrative and regulating documents of OAO IDGC of Urals in 2017:

  • Regulations on Connection to OAO IDGC of Urals’ Electric Networks[14], stipulating stages of connection process and sequence of activities, functions and responsibilities of units, cancellation (termination) of connection contracts, claim administration if filers violate connection terms, procedures of interaction with other RGOs, energy sales companies, providers of last resort and other organizations during connection process.

Regulations, effective prior to 09.06.2017: The Regulations on Connection to OAO IDGC of Urals’ Networks[15], Regulations on Termination (Cancellation) of a Contract on Connection to OAO IDGC of Urals’ Networks[16].

In 2017, with a view to discharge liabilities related to connection, the Company has also approved the roadmap on connection, adopted by the Company’s Decree. This roadmap has approved the key connection indicators for 2017 and relevant action plan. Apart from the roadmap and Regulations the Company also has:

  • Procedure for planning and supervision of connection activities[17], stipulating main reporting forms related to connection, terms and procedures for form preparation;
  • Responsibility matrix for officials of OAO IDGC of Urals and AO EESK structural units for on-time input, integrity and authenticity of information, disclosed on GK Rosseti’s Service Web-Portal (portal-tp.rf)[18]. The document is designed to ensure provisioning of the web-portal with relevant information in line with the decree[19].

Demand for technological connection to electric networks mirrors last year’s demand. Total requests for technological connection, filed with the Company, retained on 2016 levels and reached 35,003. In 2017 we concluded 27,958 contracts (-2% on 2016). The amount of the executed contracts in 2017 is -5% YoY due to reduced liabilities. In 2017 we connected 29,032 consumers against 30,546 consumers in 2016, overperformance of executed contracts target reaching 15%. The capacity of the concluded contracts has increased +32% YoY. Connected capacitance totaled 940 MW (-25% YoY) due to changes in the structure of concluded contracts on connection: in 2016 we executed contracts on generating facilities of OAO TGK-9 and OOO LUKOIL-Permnefteorgsintez. With liabilities to connect generating facilities reducing, demand for technological connection to networks in residential development continues to persist.

Demand for connection (pcs.)

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Demand for connection (MW)*

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Description of cancelled contracts in the branches in 2015-2017: number of contracts, capacity, value and reasons for cancellation.

Connection contracts cancelled during the reported period
pcs MW Contract value, RUB million, net of VAT
Permenergo 617 58 264.40
Sverdlovenergo 1,402 53 154.32
Chelyabenergo 854 121 74.01
Total 2,873 232,04 492.72
Permenergo 682 (+11% by 2015) 276 (+373%) 156.4 (-41%)
Sverdlovenergo 1,190 (-15%) 47 (-10%) 95.21 (-38%)
Chelyabenergo 1,212 (+42%) 158 (+30%) 861.95 (+1065%)
Total 3,084 (+7%) 480.62 (+107%) 1,113.55 (+126%)
Permenergo 886 (+30% on 2016) 34 (-88%) 184.63 (+18%)
Sverdlovenergo 1,146 (-4%) 80 (+70%) 92.49 (-3%)
Chelyabenergo 1,149 (-5%) 146 (-8%) 420.58 (-51%)
Total 3,181 (+3%) 259.88 (-46%) 697.71 (-37%)
* net of temporary connection

Connection requests are waived if:

  • A filer changes his/her intentions (changes in terms for construction of filer’s equipment),
  • A filer waives the project (no funds to initiate or proceed with construction),
  • A filer has no intentions to construct any facilities (specifications are received just to increase the value of a land plot),
  • Specifications expire.

During 2017 Permenergo cancelled

886
contracts
(34 MW total capacity, RUB 184.6 million total value, net of VAT), cancellations rising 30% YoY. Most of the contracts (84%) were cancelled by 0-15 kW filers, 72% of cancellations done by individuals.

Sverdlovenergo cancelled

1,146
contracts
(80 MW total capacity, RUB 92.49 million total value), cancellations declining 4% YoY. Most of the contracts (91%) were cancelled by 0-15 kW filers (1,040 contracts), 83% cancellations done by individuals (947 contracts).

Chelyabenergo cancelled

1,149
contracts
(146 MW total capacity, RUB 420.58 million total value), cancellations declining 5% YoY. Most of the contracts (81%) were cancelled by 0-15 kW filers, 65% of cancellations done by individuals.

Participation in implementation of the connection target model by territorial entities of the Russian Federation.

Pursuant to the Decree[20], regional authorities of the Company’s service area adopted regional road maps on implementation of target models improving investment climate, also covering connection to electric networks. Thus, First Deputy Chair of the Perm Government V.I. Rybakin adopted the Connection to Electric Networks target model. On 15.02.2017 Deputy Governor of the Sverdlovsk region S.V. Shvindt approved a 2017 road map on implementation of the Connection to Electric Networks target model. The Governor of the Chelyabinsk region B.A. Dubrovsky adopted a road map on implementation of the Connection to Electric Networks target model. OAO IDGC of Urals has taken an active part in development and implementation of the regional target models. By the end of the year all activities from the target model stages, that the Company is liable for, were accomplished on schedule.

The most important contracts and connections in 2017 are:

  • OAO Perm International Airport (RUB 1 million, 5 MW): connection of a new airport terminal for domestic and international flights making it possible to enhance pax throughput and public transport accessibility in Perm.
  • OOO Akron (RUB 0.5 million, 2.4 MW): connection of a trading and office center improving infrastructure in Nizhny Tagil and creating new jobs.
  • OAO INTER RAO – Electric Power Plants (RUB 0.04 million, 256 MW): connection of No.12 power generation unit PGU-420 at Verkhny Tagil State Distric Power Plant (combined cycle gas turbine unit), launched to replace obsolete equipment of the station that had an adverse impact on the environment and to maintain reliable electricity supply of consumers, most being large industrial enterprises.
  • OOO Project Development (RUB 1.2 million, 6 MW): connection of the Kosulino logistics cluster, designed to supply 36 Perekrestok outlets and 9 Karusel supercenters, located in the Middle and South Urals, Tyumen, Yugra and Perm regions. 105 jobs were created.
  • Ministry of Construction and Infrastructure of the Chelyabinsk region (RUB 115 million, 8 MW): provision of housing to large families, improvement in quality of life of inhabitants.
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Full report or any of its chapters can be downloaded as pdf files on this page.
1About company
1.1Mission and strategic goals
1.2Market share
1.3Management systems
1.4Key 2017 events
2Board of directors’ progress report
2.1Letter to stockholders
2.2Production capital formation
2.2.1Network exploitation
2.2.2Electricity transmission
2.2.3Technological connection
2.2.4Development of telecommunications and IT systems
2.2.5Investments
2.2.6Innovations
2.2.7Efficacy enhancement
2.3Financial capital formation
2.3.1Description of tariff policy
2.3.2Analysis of revenues and expenses
2.3.3Analysis of receivables and payables
2.3.4Credit ratings and bonds
3Corporate governance
3.1Corporate governance practices
3.2Corporate governance system
3.2.1General meeting of stockholders
3.2.2Board of Directors
3.2.3Board of directors’ committees
3.2.4General director and executive board
3.2.5Remuneration and compensation policy
3.3Oversight system
3.3.1Board of internal auditors
3.3.2Independent auditor
3.3.3Internal control
3.3.4Security and anti-corruption
3.3.5Risk management
3.4Investor and stockholder relations
3.4.1Shareholder capital structure
3.4.2 Shareholder rights
3.4.3The company and stock market
3.4.4Communications with market participants
3.4.5FAQ
3.4.6Allocation of profit
3.4.7Contact information
4Stakeholder
4.1Human resources management
4.2Customer support
4.3Supplier relationship management
4.4Public and goverment relations
4.5Company’s transactions
4.6Subsidiaries and financial investments
4.7Environment protection
5Appendices
5.1Prepared under Russian accounting standards
5.2Prepared under international financial reporting standards
5.3Corporate governance code compliance report
5.4References
5.5Abbreviations and acronyms
5.6Sitemap