Address of N.N. Shvets, General Director of IDGC Holding, JSC, to the employees of the company

1 July 2010

The Company is just two years old, but much has already been done. Being systemically important, IDGC Holding makes significant contribution to ensuring competitiveness of the national economy and to power safety of the Russian Federation.

IDGC Holding is one of the largest and socially responsible employers in the country: over 190 thousand people are employed in 47 subsidiaries and affiliates, 87 grid divisions and over 180 Client Servicing Centres. To a significant degree they are highly qualified professionals, foremost workers.

For two years of work being included in the holding group the labor collectives and management of IDGC, other subsidiaries and affiliates could ensure step-by-step development of distribution power grids, stability of financial and production indicators, they fitted well into the unified corporate structure of the general federal scale and strategic purpose of Russia.

As the managing company IDGC Holding, JSC either understood its position and purpose in the power transportation and distribution system, so developed strict strategic course aimed at renewal of distribution power grid companies, distribution power grid complex, its transformation into innovation and high technology segment of the national economy.

Under support of Ministry of Energy of the Russian Federation, Federal Tariff Service, regional power companies the Management of IDGC Holding, JSC and operating companies mastered practically on the marsh the perspective tariff making method — return on invested capital, which gives positive dynamics to the process of implementation of investment programs and increases production efficiency of grid companies.

Tariff regulation based on new method will provide the opportunity to attract necessary volume of private investment in the distribution power grid complex, to increase service quality.

The priority project of investment programs implementation in IDGC Holding is construction and reconstruction of power grid infrastructure facilities within the framework of preparation to the 2014 Olympics in Sochi. During these works it is planned to implement energy saving decisions, innovative approaches and advanced technology.

I express confidence that the decisions taken by the Board of Directors of IDGC Holding, JSC will ensure efficient and step-by-step development of distribution grid companies, reliable, safety and guaranteed power supply of consumers.


General Director
of IDGC Holding, JSC                                                                                     N. N. Shvets

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