Rosseti will be engaged in trust management of the shares in Regional Power Grids of the Novosibirsk Region

Rosseti will be engaged in trust management of the shares in Regional Power Grids of the Novosibirsk Region 30.01.2018

Mr. Pavel Livinsky, Rosseti's CEO,   signed a cooperation agreement with Mr. Vladislav Negomedzyanov,  Chairman of the Board of Directors, Regional Power Grids ("RES"), with  Mr. Sergey Menyaylo, authorized representative of the Russian President in the Siberian Federal District, Mr. Arkady Dvorkovich, Russian Vice Premier, and Mr. Andrey Travnikov, acting Novosibirsk Region Governor,  in attendance, in Novosibirsk on January 30, 2018.

The stage-by-stage implementation of the "roadmap" to transfer the rights of RES JSC and Electromagistral JSC shareholders to Rosseti PJSC in trust management is the key aspect of the contract.

Rosseti is implementing a large-scale program to consolidate the power grid assets as part of fulfillment of the provisions of the Russian Presidential Decree on Russian Grids OJSC. The Novosibirsk Region is one of the four constituents in this country (within the country-wide single power grid) where Rosseti has not been represented by a subsidiary.

"The Government supports further work on improving the Russian power grid operation. Rosseti plays a key part in this process. Close integration within the regional power system would help make good progress both in enhancing efficiency of current operations and in building up the future "digital" grid. The only thing that matters is the system should operate to improve and delivery a reliable power supply to ultimate consumers, be convenient for persons, for business, for everybody benefitting from the power grids", noted Arkady Dvorkovich.

"Novosibirsk is the third largest city in Russia and, quite logically, the responsibility for power supply in it will be conferred upon Rosseti." We, together with our colleagues from RES, would implement digital technologies and innovative domestic solutions that enhance efficiency of power grids, the reliability of power supply to households and, consequently, would improve the liviting standards of households to the next level," noted Pavel Livinsky, Rosseti CEO.

"Enhancing reliability of power supply in the Siberian Federal District regions is our principal objective. We have already performed such work in the Kemerovo Region, in our other regions. But it it for the first time that we are speaking of establishment of the single and reliable power system and its deep upgrading. We have made the first step in this direction and will see positive deliverables soon. Yet, the main thing is reliable power supply to consumers", noted Sergey Menyaylo, the Russian President's authorized representative in the Siberian Federal District.

"The power grids of the Novosibirsk Region is distinguished by high intra-regional concentration, consolidation. Nonetheless, the emergence of such strong partner as Rosseti  opens up competencies of a higher level to our grid companies: engineering competencies, equipment management competencies, cost cutting, financial flow management. Consumers are the ones who benefit from the partnership most of all. In addition, close cooperation would help restrain the rates and improve the investment appeal of the Novosibirsk Region", says Andrey Travnikov, acting Governor of the Novosibirsk Region.

Mr. Vladislav Negomedzyanov, Chairman of the Board of Directors at RES JSC, noted, on his part, the mutual benefit of joint, mutually advantageous work under the Agreement for companies. "Delivery of the energy security to consumers in the Novosibirsk Region is the main priority for us". 

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Earlier, on January 25, a working meeting between Rosseti CEO and Mr. Sergey Menyaylo, Russian President's authorized representative in the Siberian Federal District was held.

The development strategy for the power grids in the Siberian Federal District regions as concerns consolidation of the power grid assets became one of the focal topics under discussion. As the meeting participants noted, over 270 local grid operators are active in Siberian regions, and many power grids are in unsatisfactory state. Most of territorial power grid operators do not invest in repairs and upgrading of the networks and do not have long-term asset development programs, which results in annual increase in accidents and reduction in quality of power supply consumers.

"Grid companies should deliver reliable, quality and affordable power supply to consumers. Small local grid operators are not ready for emergency response. The certificate of readiness for operation in autumn/ winter 2017/2018 was not issued to many of them. However, the availability of special equipment and the necessary emergency stocks of materials, independent reserve sources of power supply enables Rosseti to upgrade the services significantly. Thus, one of the key efforts enabling to enhance reliability of power supply to households is consolidation of the power grids accounted for on Rosseti balance sheet", noted Sergey Menyaylo at the meeting.

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