The Investment Program of JSC IDGC of the North-West for 2014 was prepared with consideration of goals and objectives of the Unified Policy in the Distribution Electric Grid Sector.
Investment activity is a crucial part of Company’s successful operation. Timely and sufficient investments contribute to the reliability and improvement of work of the electric grid sector, reduce losses in electric grids and cut operating expenses, and provide commissioning of additional facilities to connect new consumers and eliminate energy deficiency.
In accordance with the criteria approved by the Decree of the Russian Government No. 977 dated December 01, 2009, JSC IDGC of the North-West branches are referred to as energy sector facilities, with relevant investment programs approved by executive authorities of the constituent entity of the Russian Federation.
The investment programs of the Company’s branches were approved by executive authorities of the constituent entities of the Russian Federation as part of long-term investment programs.
|Date and document approving the Investment Program (IP)||Period|
|Arkhangelsk Region||June 10, 2014|
|Vologda Region||April 03, 2014|
|Republic of Karelia||
Order of the Ministry of Construction, HUS and Energy of the Republic of Karelia
No. 60 dated April 30, 2014
|Murmansk Region||order of the Ministry of Energy and HUS of the Murmansk Region No. 55 dated March 31, 2014|
|Republic of Komi||order of the Tariff Service of the Republic of Komi No. 51/7 dated August 15, 2014|
|Novgorod Region||order of the Government of the Novgorod Region No.
|Pskov Region||August 14, 2014|
|Branch/IDGC||Implementation, RUB mln (excl. VAT)||Commissioning of fixed assets RUB mln (excl. VAT)||Financing, RUB million (incl.VAT)||Capacity commissioned|
|IDGC of the North-West||5,180.5||4,974.9||5,191.0||399.6||1,633.8|
Implementation of investments totaled RUB 5,180,513 million.
In 2014, commissioned fixed assets amounted RUB 4,974.863 million, which equals 399.64 MVA of transformer capacity and 1,633.79 km of power transmission lines with voltage of
Works for the total amount of RUB 5,191.001 million (including VAT) were financed.
In 2010, consequences of the financial crisis, decrease in the regional energy consumption, poor payment discipline of energy transmission counteragents and decrease in revenues substantially affected the investment program of JSC IDGC of the North-West. As a result, the total volume of capital investments in 2010 remained at the level of 2009 and totaled RUB 2.7 billion.
In 2011, the post-crisis recovery and considerable increase in the volume of works for grid connection of consumers allowed to increase the total volume of capital investments of JSC IDGC of the North-West almost twofold vs 2010. Moreover, Vologdaenergo and Pskovenergo branches switched to RAB regulation.
In 2012, the switch to RAB regulation was completed, which allowed to increase funds to the investment program of JSC IDGC of the North-West by 30% vs 2011 totaling RUB 6.8 billion.
Reduction of capital investments in 2013 — 2014 vs 2012 was effected by parameters of RAB regulation (and their revision in 2012, with smoothed RGP), limited growth of tariffs for electricity transmission services, as well as deteriorating economic situation in the Russian Federation on the whole.