11 and 12 August PJSC "Rosseti" in conjunction with the subsidiary IDGC of Centre, PJSC held the Investor’s and Analysts’ Day. A platform for a constructive dialogue is the Belgorod branch of IDGC of Centre, which occupies a leading position in terms of electricity transmission and connection of customers to power grids.
Director of Corporate Governance and Shareholder and Investor Relations of PJSC "Rosseti" Denis Guryanov, Deputy General Director for Economy and Finance of IDGC of Centre, PJSC Sergey Rumyantsev, First Deputy Director of IDGC of Centre - Belgorodenergo Alexander Shadrin, as well as representatives of the government of the Belgorod region and leading investment analysts and portfolio managers, representing the companies, traditionally cooperating with the Russian energy sector — Gazprombank, Investment Company Aton, Management Company "Uralsib", Financial Group "BCS", Management Company "BC-Savings", Russian Agricultural Bank Asset Management, Investment Company RUSS INVEST and others participated in the meeting with representatives of the investment community.
During the kickoff meeting the guests got acquainted with the investment climate of the Belgorod region and features of the functioning of the energy system in the region, and discussed with the management of IDGC of Centre prospects of the company’s development in the region and were able to learn in more detail about the operational and financial performance indicators of IDGC of Centre. Particular attention was paid to the execution of large projects and the process of implementation of modern technologies to achieve tangible results in improving the quality and reliability of power supply.
First Deputy Director of IDGC of Centre - Belgorodenergo Alexander Shadrin told the participants about the peculiarities of development of the region and plans for investment in infrastructure projects of the company. Thus, according to the National rating of the investment climate in the Russian regions, which is for the second consecutive year estimated by the Agency for Strategic Initiatives, namely infrastructure development and elimination of administrative barriers allowed the Belgorod region to enter the group of leaders, and to take the second place. The region, which is home to 1% of the population, produces 4.3% of the total agricultural products. The demand for connection to the power grid grows every year, indicating a steady economic growth of welfare of the Belgorod region.
According to Chairman of the Commission on the state regulation of prices and tariffs of the Belgorod region Gennady Bondarev, the government of the region is in close cooperation with the Belgorod branch of IDGC of Centre, thus ensuring a consistent investment policy, effective work to improve the availability of grid facilities, to reduce the time of grid connection. Due to the planned collaboration the grid connect time period has decreased from 200 days since 2006 to 80 in 2016.
The meeting participants paid special attention to the issues of tariff regulation, the financial results of the company and the scope of capital investments. According to Deputy General Director for Economy and Finance of IDGC of Centre, PJSC Sergey Rumyantsev, in a difficult macro-economic situation the company maintains its financial stability, while continuing to reduce operating costs. So, for 6 months of this year they were decreased by 4%, which amounts to 396 million rubles. The volume of electricity transmission services rose to 27.9 billion kWh, which is 1.5% up compared to the same period last year, the electricity losses due to a whole range of ongoing activities decreased and amounted to 9.24%.
"The priority directions of the company’s work are to improve the quality, reliability and safety of power supply to customers. IDGC of Centre will continue working to reduce receivables, optimize operating costs and economic development of regions of its service area," stressed Sergey Rumyantsev.
For example, the investment program of IDGC of Centre - Belgorodenergo was approved in the amount of 4.3 billion rubles. The total volume of capital investments, as noted by Sergey Rumyantsev, in 2016 will amount to 16.2 billion rubles. The funds will be used both to ensure the required level of reliability of grid facilities and the construction of new grids and feeding centres under already signed grid connection contracts. For 6 months IDGC of Centre already connected to the grid 446 MW of new capacity, having performed 19,561 grid connection contracts. 52% of all capital investments were spent on these purposes. The grid connection market share reached 88.5%. For example, only in the Belgorod region the growth rate in the last ten years is more than two-fold: from four thousand contracts in 2006 to 11,669 in 2015.
The meeting also discussed the current regional issues. From the first of July 2017 "last mile" contracts in the Belgorod region will be terminated, and despite the fact that at the regional level necessary measures are taken to compensate for shortfall in income, funding issues are a priority. However, Sergey Rumyantsev assured the participants that the company is ready for any test, having a great experience of operations.
Upon completion of the meeting the guests visited the Center for Energy Efficiency and the Customer Service Center, located in the branch of IDGC of Centre - Belgorodenergo, as well as the company’s large production facility — the 110 kV feeding centre "Kreida" supplying electricity to industrial and residential customers of the regional centre. Increased interest among the participants of the site visit attracted facilities of renewable energy sources - the first one of alternative energy in the Belgorod region - wind turbines, solar panels and biogas plant connected to the networks of IDGC of Centre.