|Costs, in RUB mln||2010||2011||2012||2013||2014|
|Production cost, total||25,145||27,781||28,129||38,293||40,030|
|Services of JSC FGC UPS||7,096||8,177||8,371||8,339||8,439|
|Services of TGCo||1,273||1,503||819||2,812With consideration of the costs by the types of business entitled Electricity transfer and Electricity sales.||4,045With consideration of the costs by the types of business entitled Electricity transfer and Electricity sales.|
|Purchased power for loss compensation||4,177||3,646||3,629||4,257With consideration of the costs by the types of business entitled Electricity transfer and Electricity sales.||4,341With consideration of the costs by the types of business entitled Electricity transfer and Electricity sales.|
|Purchased electricity for sale||0||0||0||6,429||6,037|
|Raw and other materials||1,376||1,540||1,684||1,795||1,753|
|Electricity for the company’s needs||327||313||302||314||311|
|Production works and services||741||952||1,034||1,099||1,041|
|Labor costs with deductions||6,421||7,525||7,742||8,252||8,489|
Total actual net cost for 2014 amounted to RUB 40,030 million, which is more than the 2013 level by RUB 1,737 million, or 4.5%. The greatest increase of expenses is noted in the following items:
Therefore, the increase of costs of TGCo services in 2014 as compared to 2013 was due to the different duration of the time when the Company acted as guaranteed supplier in these periods.
The greatest deviations of costs of electricity and capacity purchase for compensation of losses occurred at the following branches:
In payroll with allowances, there was a RUB 237 million or 2.9% increase due to the economic effect from indexation of wage rates (salaries) in accordance with the real consumer price index (RCPI) pursuant to the Industry Tariff Agreement in the Electricity Sector and a corresponding increase of allowance paid to social funds.
In services of JSC FGC UES, the increase of RUB 100 million or 1.2% was due to the increase of the loss compensation tariff in 2014 in comparison with 2013. There was no increase of the grid maintenance costs in 2014, as the increase of the grid maintenance tariff was compensated for by the declared capacity reduction at Vologdaenergo and Karelenergo.
In depreciation allowance, the cost increase of RUB 447 million or 12.8% was caused by a great amount of fixed assets that was commissioned in comparison with 2013.
In IT services, the cost increase of RUB 49 million or 58% was due to the replication of the news ASUD electronic document exchange system to new workplaces and new contracts for software support, implementation, and licensing of unified electricity accounting systems.
The significant increase of tax payments, RUB 72 million or 26%, was primarily due to the property tax increase and was, in particular, caused by amendments to the tax law.
On the results of 2014, the increase of controlled costs amounted to 2% while the actual RCPI was 11.4% (percentage in December 2014 as compared to December 2013).
The growth of uncontrolled costs amounted to RUB 1,473 million or 5.8%. The increase of uncontrolled costs was mainly due to presence of electricity sale activity costs in the Company’s costs (the increase of costs of TGCo services in sales amounted to RUB 1,213 million), and the increase of depreciation allowances in 2014 by RUB 447 million (12.8%)
The following chart shows the dynamics of reduction of the share of controlled costs in the total production cost of JSC IDGC of the North-West.
Despite the dynamics of the increase of the total production cost of JSC IDGC of the North-West, there is a clear trend to a decrease of the share of controlled costs in the structure of the Company’s production cost. Having reached its peak in 2012 (44%), in 2014, the share of controlled costs reduced down to 39%, which is evidence of an objective positive result of implementation of the Efficiency Management Program (EMP) at JSC IDGC of the North-West.