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Rosseti will create a single Treasury

Rosseti will create a single Treasury 15.09.2014

JSC Rosseti is working to establish a unified Treasury for the entire group of companies. This tool will improve the efficiency of operations, significantly reduce costs, and increase the transparency of payments.

The main objectives of structural changes in the industry, which resulted in the unification of the state network assets all within Rosseti's organization, was the formation of a single point of responsibility for the operation of main and distribution networks, increasing operational efficiency of the electric grid complex, and the coordination and optimization of financial and investment activities.

A little more than a year since Rosseti's inception, it formed and implemented a number of new standards and techniques, encompassing all of the company's subsidiaries, including common technical and economic policies, the policy of innovative development, personnel policy, as well as interaction with the public, consumers, and government officials. All of them are designed to unify and synchronize business approaches in all areas of work.

"Given current tariff decisions and the falling liquidity of financial markets, the Rosseti Group of companies should work to reduce operating costs, which can be achieved through methods including economies of scale," says Egor Prokhorov, "JSC Rosseti’s" Deputy General Director of Finance.

"The creation of a single treasury is a logical step in the evolution of any holding company, which facilitates the reduction of basic banking service costs, software expenses, and operating costs by eliminating duplicate functions. It should also be noted that the quantity of payment transactions is not evenly distributed throughout the month, while resources are allocated based of their peak numbers. Creation of a single treasury will facilitate better distribution of them within the group of companies," said E. Prokhorov.

According to the top manager, concurrently, liquidity management of the subsidiaries will help to achieve the best conditions on asset management from the banks. "In other words, the greater the volume of the deposited funds, the better the rate. In addition, the common treasury will increase the security of financial investments due to the enforcement of the same high expectations on the counterparties and the concentration of control over operations at the upper level, which has already proven to be effective," emphasizes E. Prokhorov.

It should be noted that since its inception, Rosseti has been systematically implementing uniform standards for financial transactions within the group and has been working to unify tariffs for cashier payment services. Parameters for borrowing by subsidiaries are also directly coordinated by Rosseti with the participation of the parent company’s representatives in the procurement commissions of the subsidiaries and affiliates.

The single treasury, in accordance with the existing directive of the Government of the Russian Federation, must be created before June 30, 2015. With regard to control of operations, Rosseti currently approves the budgets of subsidiaries in which spending occurs. After establishing the treasury, bills will also be handled within the agreed parameters and the transparency of transactions will increase.


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