Igor Makovskiy: “64 billion rubles will be spent on the implementation of the Concept of digital transformation of IDGC of Centre and IDGC of Centre and Volga Region within the framework of the long-term investment program”

23 March 2019

In Moscow, the colleagues’ meeting of IDGC of Centre - the managing organization of IDGC of Centre and Volga Region, chaired by the Company’s General Director Igor Makovskiy, completed its two-day work. It was attended by the heads of the main functional areas and subdivisions and directors of 20 regional branches.

In his welcoming speech, Igor Makovskiy read out an address to those present of Pavel Livinskiy, Director General of ROSSETI’s Group of Companies, in which he wished the members of the colleagues’ meeting an objective summing up for 2018 and the implementation of all their plans in 2019.

The main topic of the second day of the work of the colleagues’ meeting was the results of the execution in 2018 of the agreement on the transfer of the powers of the sole executive body of IDGC of Centre and Volga Region to IDGC of Centre. The head of the project office of IDGC of Centre Sergey Rumyantsev told the audience about them. In his speech, he noted that all key performance indicators established for the sole executive body for 2018 had been met. Good production and economic results were achieved, including in terms of reducing operating expenses and improving the financial stability and investment attractiveness of both companies, increasing labour productivity and quality of services provided.

Among the goals and objectives of the managing organization under the sole executive body contract for 2019, Sergey Rumyantsev named the achievement of basic and target KPIs, further updating the management structure of the sole executive body contract, changing the principle of achieving effects from the 2017-2019 action plan based on the transition to the “project” management system of changes in the production-technological and organizational-economic state of both companies.

Also, within the framework of the second day of the colleagues’ meeting, the heads of the branches of IDGC of Centre and Volga Region made reports on the main results of the production and financial-economic activity.

In the final part of the event, a solemn ceremony of awarding the branches, which showed the best results of work in 2018, took place. The diploma of degree I for achieving high efficiency based on the results of activities in 2018, fulfilling the tasks of reliable and high-quality power supply to consumers, operational efficiency, development of services, equipment modernization, increasing energy efficiency and ensuring social stability in the team and in the region the branch’s service area was received by a branch of IDGC of Centre and Volga Region - Udmurtenergo. The diploma of degree II was awarded to a branch of IDGC of Centre - Belgorodenergo. The diploma of degree III was obtained by a branch of IDGC of Centre - Kurskenergo. Letters of thanks and cups on the basis of work on reducing electricity losses in 2018 were awarded to the branches of IDGC of Centre - Belgorodenergo and IDGC of Centre and Volga Region - Marienergo.

General Director of IDGC of Centre - the managing organization of IDGC of Centre and Volga Region Igor Makovskiy summarized the results of the work of the colleagues’ meeting and focused on the company’s priorities for 2019. He stressed that the focus will be on launching in it the process of full-scale implementation of the Digital Transformation Concept, within which a significant amount of work is to be completed by the end of the year. In total, 64 billion rubles are provided in aggregate for digitalization in the long-term investment program of the Company.

The head of the company also focused the attention of the members of the colleagues’ meeting on the need to strengthen work in key areas of activity. First of all, it concerns the provision of reliable and uninterrupted power supply to consumers, the development and modernization of the power grid complex, an increase in the efficiency of the Company’s activities, and the reduction of losses and transaction costs.

For reference: 
ROSSETI Company is one of the largest power grid companies in the world. The company operates 2.34 mln kilometres of power lines, 502 thous. substations with transformer capacity of more than 781 GVA. In 2018 net electricity supply to customers amounted to 758 bln kWh. The number of employees of ROSSETI’s Group of Companies is 220 thous. people. ROSSETI’s property includes 35 subsidiaries and dependent companies, including 15 interregional companies and a transmission grid company. The controlling shareholder is the state, represented by the Federal Agency for Management of State Property of the Russian Federation, which owns 88.04 % of the share capital.

Interregional Distribution Grid Company of Centre, Public Joint-Stock Company (IDGC of Centre, PJSC) is the largest Interregional Distribution Grid Company in Russia, a majority of which (50.2%) is owned by PJSC ROSSETI, which manages IDGCs/DGCs with corporate methods (through Boards of Directors). The controlling shareholder is the state, which owns 88.04 % of the share capital of PJSC ROSSETI. The staff of IDGC of Centre, PJSC has over 30 thousand people. Overall, the share of IDGC of Centre, PJSC in the market of electric energy transmission of regions in its service area is 86%; the grid connection market share in the Belgorod, Bryansk, Voronezh, Kostroma, Kursk, Lipetsk, Orel, Smolensk, Tambov, Tver, Yaroslavl regions (an area of 457.7 thous. square kilometres) is about 88.6%.

The main shareholder of IDGC of Centre, PJSC, except for PJSC ROSSETI, is the company Genhold Limited. The free float is 34 % of shares of IDGC of Centre, PJSC. Number of shareholders is more than 18 thous. Share code on the stock exchange: Moscow Exchange — MRKC. Tickers: Bloomberg — MRKC RX, Reuters — MRKC.MM. The production potential of IDGC of Centre, PJSC is 2.4 thous. substations of 35-110 kV with total capacity of 34.4 thous. MVA and 100.7 thous. substations of 6-10 kV with total capacity of about 20 thous. MVA. The total length of power lines of 0.4-110 kV is 397.3 thous. kilometres. The main strategic priorities of IDGC of Centre, PJSC are: to provide reliable, uninterruptible and quality power supply to consumers; to improve the quality and reliability of services provided; to increase the efficiency of investments; energy conservation and reduction of losses; to improve the efficiency of operating costs; better interaction with customers, investors and the society. One of the main activities of the company is grid connection of new customers. To get the services for grid connection, you can visit the official website of ROSSETI’s portal of electric grid services, where an electronic service operates that allows customers to get services for grid connection via the Internet. The site can be used to calculate the cost of services, customers can see the status of filed applications, submit meter readings, find out the schedule of planned power restrictions and information about emergency outages, and request information about the condition of electrical installations. The portal was developed in accordance with the Unified Standards of Quality of Service by Grid Companies of Customers of Grid Companies, approved by Order of the Ministry of Energy of Russia of 15 April 2014 N 186.

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