Annual report 2014

RU Go to Lenenergo

Mission and strategy

The mission of Lenenergo is to ensure reliable and uninterrupted supply of its consumers with high-quality and non-polluting electricity and to meet an increasing demand for energy and capacity.

The directions of Lenenergo development as a key participant of the energy sector are defined by the development Strategy of the power grid complex of the Russian Federation, approved by Resolution of the Government of the Russian Federation #511-R of 03.04.2013.

Key goals of the power grid complex

Long-term provision of reliable, high-quality and affordable power supply of consumers

  • Implementation of data collection on reliability and quality of power supply;
  • translation of the collected data on reliability and quality of power supply to the benefit of consumers and efficiency increase;
  • increase in the level of customer service;
  • arrangement of priorities for investments;
  • formation of unified technical policy;
  • formation of unified innovative policy.

Ensuring reliable and safe functioning of the power grid complex

  • technological safety and labor protection;
  • environmental safety;
  • complex security (physical safety, antiterrorism protection, economic and information security).

Organization of the most effective network infrastructure corresponding to international standards

  • optimization of processes and systems, labor productivity increase;
  • decrease in electricity losses;
  • loading of capacities;
  • increase of productivity and decrease in specific cost of investments;
  • selection of investment projects;
  • optimization of design approaches;
  • improvement of project management quality.

Tariffs that provide an acceptable level of expenses for electricity for the Russian economy and also investment appeal of the sector

  • providing an acceptable level of expenses for electricity for the Russian economy;
  • improvement of the system of regulation (RAB-regulation);
  • reduction of the degree of separation of territorial grid organizations and control increase over them;
  • solution of the cross subsidizing problem;
  • formation of Rosseti, Open Joint Stock Company;
  • attracting new investors in the power grid complex of the Russian Federation.

Development of the international cooperation

  • integration into global international markets, in particular, in the grid market;
  • diversification of energy exports due to the increase in the export share of energy products with high added value, including electric power;
  • development of major parts of the international energy infrastructure on the territory of Russia, implemented with the use of new energy technologies.

Benchmarks of the power grid complex are defined by the following directions:

Increase in reliability and quality of power supply to the level that satisfies customer needs, including:

  • improving the quality of customer service (in particular, decrease in the quantity of stages necessary for technological connection to electric networks from 10 to 6 by 2015, and to 5 by 2018);
  • reducing the undersupply of electric power;
  • reducing the cost of grid connection for small and medium enterprises.

Increase in safety of power supply, including decrease in total accidents (including unrecorded cases).

Decrease in the zones of free overflow of electric power from 27 to 18 by 2017.

Increase of efficiency of the power grid complex, including:

  • increase of capacities loading (in percentage of the installed capacity of transformers on all voltage levels net of obligatory reservation);
  • decrease in specific investment expenses by 30% concerning the level of 2012 (in RUB per a physical unit (km, MVA));
  • decrease in operating expenses by 15% by 2017 taking into account inflation concerning the level of 2012 per unit of service of power equipment;
  • decrease of losses by 11% by 2017 concerning the level of 2012;
  • providing a competitive tariff level for business (the growth is not higher than the parameters of the forecast of socio-economic development of the Russian Federation for the period and a reduction in the proportion of networks in the target tariff);
  • decrease in cross subsidizing in the grid tariff from RUB 220 bn in 2012 to RUB 50 bn in the comparable prices by 2022 and preservation of this subsidizing level till 2030;
  • decrease in the number of organizations which are not corresponding to the requirements, established for the qualified grid organization, including regarding technical security of the reserve for elimination of failures and qualification of employees;

Decrease in the number of territorial grid organizations by 50% by 2017concerning the level of 2012 and by 50% by 2030 concerning the level of 2017.

Average duration of interruptions of electricity supply to end consumers in the electric power system will be used as the basic key indicator for assessing the effectiveness after 2017 instead of the indicator of electricity undersupply.

In addition, a set of indicators to measure the quality of customer service will be expanded (increase in the share of consumers having access to the information center, decrease in the average number of minutes of expectation for a response to the consumer).

A regular comparative analysis of key performance indicators with subsequent dissemination of best practices of successful companies and regions and with analysis and appropriate measures on underperforming companies and regions will be carried out to create quasiconcavity environment between the power grid companies.

Benchmarks will be specified during the development of annual production, investment and budget plans of the power grid companies.

–15 % OPEX reduction by 2017, taking into account the level of inflation in 2012 per service unit of grid equipment
–11 % Reduction of losses by 2017 relative to the level of 2012