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IDGC of Centre continues work intended to transfer of all branches of the Company to RAB-regulation since July 1, 2010

14 April 2010

Depreciation of fixed assets of IDGC of Centre exceeds 70 %. By 2015 depreciation may be 80% at maintenance of “cost-plus” model of tariff making. It is planned that implementation of RAB-regulation will allow to reduce wear of grids of the Company up to 50 % by 2014.

At present time in many regions Interregional Distribution Grid Company of Centre suffers critical need in investments. Existing mechanism of payment for technological connection does not solve this problem. There are not enough capacities for connection of new consumers. Due to transfer to RAB-regulation it is planned to open 11 supply centres for technological connection in Bryansk by 2014. As it stands power engineers of IDGC of Centre are conducting negotiations with administrations and regulatory bodies of regions, coordinating individual parameters of transfer of each constituent entity of the Russian Federation to perspective method of tariff making.

Due to RAB new up-to-date substation of 110 kv “Mayskaya” complying with the world technical standards was introduced in Belgorod in 2009, SS-110 kv “Davydovskaya” was introduced in Lipetsk.

In Kursk region which has already transferred to RAB since January 1, 2010 reserve of 110 MVA power capacity will be made and there will be possibility of further economic growth. It is very important as in region large-scaled national projects in the field of agro-industrial complex are being implemented, development of building industry and individual entrepreneurship keeps forward.

Within the frameworks of extended opportunities of investment program of the branch “Yarenergo” of IDGC of Centre, JSC which has also transferred to RAB since January 1, 2010, measures intended to increase of reliability of power supply of socially important facilities are being taken, staged reconstruction of outdoor lightning system is being carried out, ownerless power grids taken to the balance sheet are being restored. Construction of large facilities is held in region by 1000th anniversary of Yaroslavl and within the frameworks of implementation of federal program “Affordable housing”. Due to transfer to RAB-regulation power engineers of IDGC of Centre provide timely and qualitative power supply of new facilities.

“Situation in the financial market already allows us to use system of RAB-regulation in full. We should be ahead of development of economy and need of clients of the Company by 2—3 years in order new productions may be put into operation and may start earning money”, — Sergey Arkhipov, First Deputy General Director of IDGC of Centre, JSC, emphasized.

More detailed information on RAB-regulation is available on the web-site of the Company /about/rab/.

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