Geography

Russia's breakthrough in "Connection to the power supply system" of World Bank's rating

Russia's breakthrough in "Connection to the power supply system" of World Bank's rating 28.10.2015
Right up to the 51st place moved Russia as compared to the last year in the World Bank's Doing Business-2016 rating, owing to simplifying the procedure for technological connection to electric networks of Rosseti. Since 2014, the rating of the Russian Federation was determined by aggregating the results of the two largest cities of the country, Moscow and St. Petersburg, where the assessment of Rosseti subsidiaries, PJSC "MOESK" and PJSC "Lenenergo", was carried out. 

In terms of "Connection to the power supply system" Russia has made a leap forward and climbed to the 29th place in the ranking. Russia showed the best result among its BRICS partners. In terms of the level of ease of connection to electric networks, in a year Russia climbed 24 positions, taking into account the new methodology http://russian.doingbusiness.org/data/exploreeconomies/russia/

Significant improvements in the area of technological connection were noted by representatives of small and medium businesses, surveyed by the World Bank's experts. The main criteria affecting the positive assessment were the reduction of the number of stages, terms of technological connection, reducing its cost. 

In terms of "Power supply reliability index" and the "transparency" of tariffs", Moscow and St. Petersburg received 8 points, which was the maximum grade received only by 18 countries out of 189 participating in the rating. 

Crucial alternations that allowed to achieve high results have been carried on by the Ministry of Energy of the Russian Federation and Rosseti for several years. In particular, in 2015 in MOESK a tremendous work has been done, which resulted in reducing the number of procedures required for connection to the electric grid infrastructure to 3. The term of technological connection of an applicant's facility was shortened to 90 days, the cost of connection was reduced by 30%. 

Another major step toward customers was the decision of JSC MOESK starting from the IV quarter of 2014 to apply the minimum rate of payment under the contract of technological connection when connecting commercial facilities of small and medium entrepreneurs, and payment by instalments at a client's request. 

The reforms implemented in the electric power enterprises include creation of a client's electronic "Personal account". This feature brought in a possibility to submit electronic application through the portal on technological connection of a company, preliminary calculation of the cost of the connection and becoming familiar with the documents prepared without client's visit to the office. 

2015 saw yet another innovation in the issue and the conclusion of the contract for technological connection and the contract for power supply in a single stage, making it even more accessible and comfortable for entrepreneurs to connect to electricity. 

For reference: 

The World Bank's annual international rating Doing Business evaluates 189 countries on 10 indicators of entrepreneurial activities regulation. The higher the position of a country in the rating is, the more favourable is the environment for opening and operation of the enterprises of small and medium businesses. 

Since 2014, the rating of the Russian Federation has been determined by aggregating the results of the two largest cities of the country, Moscow and St. Petersburg. 

In 2015, as an additional parameter when drawing up the 2016 rating, the index of frequency and time of energy supply interruptions - SAIDI, SAIFI - has been used for the first time. 

The index of power supply reliability and transparency of tariffs includes quantitative data on the duration and frequency of blackouts, as well as qualitative information on the mechanisms by which a power supply company is monitoring the power outages and restorations, methods of accountability between the power supply company and the regulator on power outages, transparency and information availability of tariffs, and, finally, the data on financial sanctions aimed at promoting the reduction of the number of outages. 

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