Monitoring Of Volumes Of Power Grid Asset Consolidation

Power grid asset consolidated for the period
Name of IDGC/DGC (branch of IDGC, DGC and S&A of IDGC) 2016 2017 2018
MVA km c.u. MVA km c.u. MVA km c.u.
IDGC of the South, PJSC 195.57 1,082.88 5,777.7 105.81 304.042 1489 188.5 480.0 4,070.0
Grid facilities acquired 89.06 749.393 4,186.3 0 9.6 18 0.50 4.06 19.72
Grid facilities in operating lease 66.87 159.142 509.6 65.81 110.742 360 129.43 159.706 1,973.747
Other (permanent rights of ownership and use) 0 0 0 0 8.7 18 9.273 119.503 338.612
Other (temporary rights of ownership and use) 39.64 174.345 1081.8 40 175 1093 49.14 199.96 1,740.48
Astrakhanenergo branch 91.7 174.345 1157.4 93 175 1176 170.4 299.7 3,626.7
Grid facilities acquired 0 0 0 0 0 0 0.50 4.06 19.72
Grid facilities in operating lease 52.06 0 75.6 53 0 83 116.2 35.356 1,676.23
Other (permanent rights of ownership and use) 0 0 0 0 0 0 4.413 63.54 192.79
Other (temporary rights of ownership and use) 39.64 174.345 1,081.8 40 175 1093 49.14 199.96 1,740.48
Kalmenergo branch 100.87 858.535 4,459.3 12.81 109.142 275.0 14.5 152.912 370.529
Grid facilities acquired 88.06 749.393 4,184.3 0 0 0 0 0 0
Grid facilities in operating lease 12.81 109.142 275.0 12.81 109.142 275.0 13.23 122.794 295.187
Other (permanent rights of ownership and use) 0 0 0 0 0 0 1.27 30.118 75.342
Other (temporary rights of ownership and use) 0 0 0 0 0 0 0 0 0
Rostovenergo branch 3 50 161 0 19.9 38 3.59 27.401 72.81
Grid facilities acquired 1 0 2 0 9.6 18 0 0 0
Grid facilities in operating lease 2 50 159 0 1.6 2 0 1.556 2.33
Other (permanent rights of ownership and use) 0 0 0 0 8.7 18 3.59 25.845 70.48
Other (temporary rights of ownership and use) 0 0 0 0 0 0 0 0 0
Volgogradenergo branch 0 0 0 0 0 0 0 0 0
Grid facilities acquired 0 0 0 0 0 0 0 0 0
Grid facilities in operating lease 0 0 0 0 0 0 0 0 0
Other (permanent rights of ownership and use) 0 0 0 0 0 0 0 0 0
Other (temporary rights of ownership and use) 0 0 0 0 0 0 0 0 0

IDGC of the South acted as the Sole Executive Body of Donenergo under the Agreement on the delegation of powers of the Sole Executive Body of Donenergo to the managing company from September 20, 2014.

Power grid asset consolidated by Donenergo.
Name of IDGC/DGC (branch of IDGC, DGC and S&A of IDGC) 2016 2017 2018
MVA km c.u. MVA km c.u. MVA km c.u.
Grid facilities acquired 0 0 0 0 0 0 0 0 0
Grid facilities in operating lease 0 0 0 0 0 0 0 0 0
Other (permanent rights of ownership and use) 0 0 0 0 0 0 0 0 0
Other (temporary rights of ownership and use) 0 0 0 0 0 0 0 0 0
Estimation of the share of the power distribution grid complex subsidiaries in the required gross revenue To calculate the indicator “Share in regional RGR”, the information defined in resolutions of single-pot tariffs on the adoption of uniform (boiler) tariffs for electricity transmission services approved by the Government executive bodies of the constituent entities of the Russian Federation in the field of state tariff regulation.(hereinafter – RGR) of IDGC of the South regions over the last three years, the change drivers
Market share by RGR for electricity transmission services for 2017

In 2017, RGR for the operation of IDGC of the South amounted to RUB 29,223.73 mn, for the operation of TGOs – RUB 5,104.85 mn.

Market share by RGR for electricity transmission services for 2018

In 2017, RGR for the operation of IDGC of the South amounted to RUB 30,336.83 mn, for the operation of TGOs – RUB 6,250.84 mn.

Market share by RGR for electricity transmission services for 2019

The Company plans that RGR for the operation of IDGC of the South in 2019 will be RUB 25,757.27 mn, for the operation of TGOs – RUB 12,250.31 mn.

The reasons behind the decline in the share of IDGC of the South in 2019 are as follows:

  • the expiry of the management agreement with Donenergo;
  • escalation of costs of PJSC FGC UES’s services in TGO grids (+RUB 55.3 mn);
  • entry of new TGOs in the region (+RUB 155.7 mn): LLC Energoservice (+RUB 26.6 mn), LLC MES (+RUB 14.6 mn), LLC TESK (+RUB 12.1 mn), LLC YuSK (+RUB 10.8 mn), and LLC YugStriyMontazh (+RUB 91.6 mn);
  • increase in the number of equipment maintained at operating TGOs, including results of the previous operation (shortage of revenue);
  • growth in costs for services of some TGOs. The fastest growth was observed at MUE Gorelektroset in Astrakhan on the back of the increased number of nominal units of purchased electrical equipment and at LLC Gazpromenergo due to the reforming of this enterprise and change of the share of this TGO services.

As part of consolidation efforts, in 2018 Astrakhanenergo branch of IDGC of the South signed the lease contract with MUE Blagoustroennii Gorod within Narimanov Municipal Entity (formerly known as MUE Electroseti within Narimanov Municipal Entity).

In 2018, the Company reviewed the consolidation projects for power facilities of the following TGOs: FSBI Volgo-Don, LLC Selmash Trade; another decision taken pertains to the acquisition of 100% of PJSC VMES shares. Rostovenergo branch of IDGC of the South calculated the cost-effectiveness and reviewed an issue on the consolidation feasibility at a meeting of the study group on the branch’s power grid assets consolidation.

Kalmenergo branch covers the entire market (100%) in its region.

Pursuing the objectives aimed to improve reliability of consumer power supply, increase the market share, increase the grid complex controllability, IDGC of the South regularly engages with power grid owners, which do not comply with the criteria for inclusion of the grid facility owners to the territorial grid organisations, with the view to the power grid assets consolidation in the Company. In 2018, the Company was involved in continuous cooperation and consultation with representatives of gardeners' non-commercial partnerships on a donation of the power grid assets to the Company.

In 2018, IDGC of the South acted as the Sole Executive Body of Donenergo under the Agreement on the delegation of powers of the Sole Executive Body of Donenergo to the managing company from September 20, 2014.