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The Energy Committee of the State Duma of the Russian Federation supported the legislative initiatives of Rosseti and the concept of digital transformation

8 November 2019

The head of Rosseti’s Group of Companies, Pavel Livinskiy, at a field meeting of the Energy Committee of the State Duma of the Russian Federation in Izhevsk, presented the advantages that industrial and household consumers will receive as a result of the implementation of the concept of “Digital Transformation 2030” in the country’s electric grid complex.

The head of the energy holding emphasized that the target model for the development of the electric grid complex implemented in Udmurtia was presented to the President of the Russian Federation Vladimir Putin and supported by him: “We see that thanks to the measures being implemented, including consolidation, digital transformation and development of value-added services, labour productivity is growing by 40%, operating expenses are reduced by 30%, capital expenses (while maintaining the same physical volumes) - by 15%, and the reliability indicators (SAIDI and SAIFI) are improved by 2 times.”

Pavel Livinskiy also dwelt in detail on the legislative initiatives of the holding, which allow ensuring the stable financial and economic situation of electric grids in the long term, stopping critical aging of equipment and offering customers not only reliable and high-quality power supply services, but also a number of value-added services that are in demand.

“It is necessary to take regulatory measures to address issues related to cross-subsidization, payment of power reserves and improving the system of charging for preferential connection to electric grids. It is important to ensure the financing of projects for the consolidation of electric grid assets at the expense of tariff sources and the introduction of new principles of long-term regulation on the basis of regulatory agreements that are different from existing methods of return on invested capital and long-term indexation of gross revenue,” said Pavel Livinskiy during his speech.

In his opening remarks, the Chairman of the Energy Committee of the State Duma of the Federal Assembly of the Russian Federation Pavel Zavalny emphasized that the digital transformation of the electric grid complex is the right trend, but it is necessary to achieve not simple automation of processes, but to solve problems in the energy sector, including through the construction of fundamentally new , more effective models for managing the entire grid complex.

“And for this it is necessary to implement the measures proposed by Rosseti regarding regulation of the industry. At the same time, as practice shows, for example, in Udmurtia, the consolidation of electric grids on the basis of a system-forming grid company allows to reduce operating and capital costs and, as a result, to establish transparent affordable tariffs for consumers. At the same time, it is imperative to implement plans based on Russian equipment and software, as issues of information and cybersecurity are critical,” stressed Pavel Zavalny.

The Head of Udmurtia, Alexander Brechalov, spoke about the successful experience of cooperation between the region and power engineers, recalling the consolidation of 80% of the republic’s grid assets on the basis of Rosseti. The project allowed the authorities to direct the funds received to social projects, and Rosseti to create Russia’s first digital City Dispatch Centre, from which all of Izhevsk’s power grid facilities are controlled, providing citizens with comfort and stable power supply to industrial enterprises. Earlier today, it was introduced to the participants in the meeting.

“Everything that we do is aimed at a consumer who already feels the positive results of our interaction, and he is turning into a reliable partner with whom we can build not only the most modern electric grid complex, but also make a significant contribution to the socio-economic development of the whole Republic. And the first step in this direction is the signing of a long-term tariff agreement with the energy sector - will be taken today,” stressed the Head of Udmurtia.
“The conclusion of this tariff agreement will allow our company to confidently shape its investment policy in the region for the long term,” stressed Igor Makovskiy, General Director of Rosseti Centre - the managing organization of Rosseti Centre and Volga Region. “Of course, such relations are in the interests of both power engineers, and regional authorities, and, of course, consumers.”

Following the meeting, recommendations were prepared to the Government of the Russian Federation, the Ministry of Energy of the Russian Federation and the subjects of the electric power industry. The main tasks are to create the necessary conditions for the stable development of the electric grid complex and its complete digital transformation, to ensure a significant increase in labour productivity, and, most importantly, to ensure reliable and affordable power supply and the ability to connect customers.

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