2014 Annual report

Growth of the Number of TGCs

A significant increase in the number of territorial distribution grid companies and an increase in the overall boiler tariff for consumers was driven by canceled mandatory licensing of electricity transmission as part of electricity sector reforms, absence of criteria which might classify a legal entity or a sole proprietor as a grid company, the applicant’s possibility to choose grid connection on a full or partial basis, and an unlimited voltage class.

The strategy of development of the Russian power grid sector provides for a 50% reduction in the number of TGCs by 2017. The Government of the Russian Federation approved a “monogrid” resolution (No. 179 dated March 07, 2014) and resolution on mandatory requirements for TGCs (No. 184 dated May 28, 2015).