JSC Russian Grids, a company operating in the electricity sector of the Russian Federation, comprises interregional and regional distribution grid companies (IDGCs/RDGCs), research and development institutes, design and construction institutes, and construction and sales entities.
The JSC Russian Grids property portfolio includes comprises interests in 43 joint-stock subsidiaries and affiliates, including interests in 16 interregional and regional distribution grid companies (IDGCs/RDGCs). Shares in Russian Grids are held by more than 320 thousand shareholders. The controlling shareholder is the Government 85.31 %.
The volume of electricity delivered from networks to customers and allied territorial grid organizations reached 650 billion kWh, or 10.2 percent more than in 2011. Revenues from electricity distribution totaled about 541 billion rubles.
The great majority of branches of Russian Grids operating companies began in 2011 to employ a new tariff regulation method, the return on invested capital method (RAB). This enabled operating companies to substantially increase the scope of their capital investment programs.
In 2012 about 124 billion rubles were spent on the construction and rehabilitation of electric grid facilities. These investments are specified in the capex programs of interregional and regional distribution grid companies and intended for putting into operation 11,024 MVA of transformer capacity and 16,729 kilometers of power lines. Capital expenditures in 2012 are mainly aimed at technical upgrading and rehabilitation (39%) and new construction (33%).
In 2012 50 notable electric grid facilities were commissioned, including under federal-level projects. The Company put into operation a part of the automated electricity metering system specified in the Comprehensive Program of Measures to Reduce Above-standard Electricity Losses in Distribution Networks in the North Caucasus in 2010–2013 with financing of 5.3 billion rubles; put facilities into operation for the external electricity supply to the Raspadskaya Mine and enhanced the reliability of electricity supply to the Mezhdurechensk District, Kemerovo Region; provided network connections for Pump Station-2 and Pump Station-3 of Caspian Pipeline Consortium-R (CPC-R) with the value of work totaling 3.3 billion rubles; and renewed cable lines in Saint Petersburg.
In 2011, IDGC Holding's companies invested over 130 billion rubles (exclusive of VAT) in the development of the electric grid sector. More than one thousand large electric grid facilities were put into operation and rehabilitated. Commissioned facilities totaled 9,304 MVA of capacity and 20,848 kilometers of power lines in 2011.
Kubanenergo, a subsidiary of the Company, is engaged in carrying out 16 capital investment projects (with the total investment estimated at 30.7 billion rubles) under the Program of the Construction of Olympic Games Sites and the Development of Sochi as a Mountain Climate Resort. These projects involve the rehabilitation and construction of
The construction of the following substations was completed: Krasnopolyanskaya (110 kV) in Chelyabinsk, Severnaya Dolina (110/10 kV) in Saint Petersburg, Erzya (110/10 kV) in Saransk, and Vereshchaginskaya (110 kV) in Sochi. The commissioning of the above-mentioned new electric power facilities and many others gave a powerful impetus to working toward regional socioeconomic development, enhancing the regions' appeal for investors, and ensuring Russia's energy security and electric grid sector reliability in general.
In 2012, the Company made certain decisions essential for achieving its goals. The Regulations for the Uniform Technical Policy in the Electric Grid Sector of the Russian Federation were approved, introducing common standards into the country's entire electric grid sector, synchronizing and unifying the operation of transmission and distribution grids, and creating conditions for the further innovative development of electric grid facilities, including bringing Smart Grid technology into use. The Board of Directors of the Company approved the Strategy for Development of Russian Grids and Its Subsidiaries in Information Technology, Automation and Telecommunications Until 2016.
The Company in 2012 developed the Consolidated Investment Program for 2012–2017, approved by the Board of Directors on January 24, 2013. The Program involves measures to decrease electricity losses by more than 6.2 billion kWh.
Very importantly, that the year 2012 witnessed a major landmark in implementing the decisions of the Russian President and the Russian Government on the consolidation of the electric grid sector. The exercise by Federal Grid Company (FGC UES) of the powers of MRSK Holding's sole executive body from May 8, 2012, followed by the formation of Russian Grids was a remarkable step in this process. This ensured a unified approach to adhering to the technical policy and the principles of management of Russia's electric grid sector; pursuing uniform investment, financial, economic, and personnel policies; and systematically cutting costs. It is certain that the uniform rules have made the electricity supply more reliable and have raised the transparency and efficiency of network connection services.
In 2012, the number of signed network connection contracts increased by 22 percent, while completed contracts for applicants whose capacity is below 15 kW and in the range of 15 to 150 kW grew by 25 percent and 27 percent respectively. This was achieved because Holding, together with Federal Grid Company and several other major electric utilities, have applied and continue to apply extensive efforts to simplify and cheapen the network connection procedure.
An important area of the Company's strategic development as part of its International Cooperation Concept is the signed agreement between ERDF and IDGC Holding (JSC Russian Grids) to transfer Tomsk Distribution Company for the France-based electric utility's management, effective from March 1, 2012. Other internationally implemented projects include taking an effective part as an observer in the work of the Electric Power Council of the Commonwealth of Independent States; IDGC Holding's (JSC Russian Grids) and all interregional and regional distribution grid companies' becoming members of CIRED (International Conference on Electricity Distribution) in June 2012; carrying out the Energy Twinning target-oriented technological program jointly with the USA, Canada, France, and Germany; siting the manufacture of Chinese high-tech electric grid equipment in the Russian Federation; and building a network of electric vehicle charging stations for the recharging of Japanese-made electric cars in and near Moscow.
IDCG Holding (JSC Russian Grids) shares were included in the MSCI Russia Index calculation in November 2011. The MSCI Russia is a guide for many international investors. In December 2011, the Company successfully completed the listing process on the London Stock Exchange. This provided JSC Russian Grids with new opportunities to increase the liquidity of securities issued by interregional and regional distribution grid companies.
Pursuant to the Decree, in accordance with the decision adopted by the Extraordinary General Meeting of Shareholders of IDGC Holding on March 23, 2013, JSC Interregional Distribution Grid Companies Holding (also known as IDGC Holding or MRSK Holding) has been formally renamed Joint Stock Company Russian Grids. The corresponding amendments to the Company's Articles of Association were registered on April 4, 2013, by Interdistrict Inspectorate of the Federal Taxation Service of the Russian Federation for the City of Moscow No. 46, and the information about the Company on the Uniform State Register of Juridical Persons was altered accordingly.