Russian Grids and the Government of Vladimir Region agreed to consolidate distribution networks

Russian Grids and the Government of Vladimir Region agreed to consolidate distribution networks 22.05.2014

At the St. Petersburg Economic Forum, Russian Grids’ General Director Oleg Budargin and Vladimir Governor Svetlana Orlova signed a road map spelling out the consolidation of power distribution networks in the region.

It was preceded by preliminary consultations between Vladimir Region leaders and Russia's largest energy company. The region will launch The Road Map, a pilot project aimed at ensuring reliable, uninterrupted power supply to consumers, as well as efficient and reasonable use of electricity.

During the signing ceremony, Budargin noted that operating and developing systems for generating electricity is a Russian Grids mainstay. "We were assigned a daunting task by the government: consolidating the networks. With the Vladimir Region, we went beyond that and consolidated not just the state-owned networks but also those of the region and its municipalities. We now must advance further, and this includes creating an environment conducive to lower transmission rates so that consolidation will prove effective. Furthermore, there are a lot of electrical equipment manufacturers in the Vladimir Region, and working with them will help us fulfill the tasks we've been assigned. The agreement signed today is undoubtedly a document of development,” said the boss of Russian Grids.

The road map that was signed calls for assorted steps to consolidate municipal power grids along with the assets of local entities, the transmission capacity of various stakeholders and the ownerless networks that the Vladimirenergo branch maintains in the region. An interim working group will be created and initially charged with taking inventory of the electrical networks in the Vladimir Region's populated areas, including the power feeds for the streetlamps. Once the commission finishes its work, there should be a listing of ownerless networks and a directory of ownership for all other electrical facilities. The next step will be to discuss with the owners of these facilities possible consolidation of network assets, for example via long-term leases with the Vladimir branch of IGC of the Center and the Volga.

In addition, the road map lays out a plan to cancel Russian Networks' debts for energy delivery (including the debt servicing for energy transmission).

Consolidation is the path for Russian Grids to enhance its level of service and make it possible to cut down on electricity losses.

At a meeting on 20 March, 2013, Russian President Vladimir Putin called for consolidation. The president emphasized that many of the small local entities were not helping to boost service. Many of them cannot provide quality transmission service because they lack the material and technical wherewithal. The IDG of the Center and the Volga region's affiliates, on the other hand, have the equipment, resources and qualified staffers needed to get the job done.

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