Since the time of the Company's establishment the model of economic planning has been formed and applied in it, based on the system of key performance indicators (KPIs). According to the JSC IDGC of the North-West Standard of Business Planning approved by the Board of Directors, the business plan is considered a tool of KPI achievement.
On January 20, 2012 the Company's Board of Directors approved (Minutes No.90/11) the following target values for the following KPIs:
Annual KPIs:
- return on equity (ROE) secured by cash flow — 0.08%;
- energy loss to grid supply — 6.65%;
- efficiency of the investment program implementation with regard to the current year (by terms and cost) — ≥95%;
- reliability criterion (simultaneously):
- avoidance of more than the maximum number of accidents falling within the characteristics set forth in clause 2.1 of the Instruction — 0;
- system indicator of consumers' power supply loss (for feeders of 6 kV and above) —
< 1; - system indicator of the average length of consumers' energy supply interruptions (for feeders of 6 kV and above) —
< 1 .
Quarterly KPIs:
- efficiency of the investment program implementation with regard to the current quarter (by terms and cost): 1st quarter — ≥95%; 2nd quarter — ≥95%; 3rd quarter — ≥95%; 4th quarter — ≥95%;
- reliability criterion (simultaneously):
- avoidance of more than the limit number of failures conforming with the features specified in clause 2.1 of the Instruction: 1st quarter — 0; 2nd quarter — 0; 3rd quarter — 0; 4th quarter — 0;
- absence of fatal industrial accidents or group accidents if there is an injured person with a severe outcome: 1st quarter — 0; 2nd quarter — 0; 3rd quarter — 0; 4th quarter — 0;
- system indicator of consumers' power supply loss (for feeders of 6 kV and above): 1st quarter — < 1; 2nd quarter — < 1; 3rd quarter — < 1; 4th quarter — < 1;
- system indicator of the average length of consumers' energy supply interruptions (for feeders of 6 kV and above): 1st quarter — < 1; 2nd quarter — < 1; 3rd quarter — < 1; 4th quarter — < 1;
- obtaining (availability) of a readiness certificate in due time: 1st quarter — 100%; 4th quarter — 100%.
After approval of the investment programs of branches of JSC IDGC of the North-West in regions by the Company's Board of Directors on July 11, 2012 (Minutes No.105/3), the adjusted control points of top-priority projects were approved for 2012 within the framework of KPI "Efficiency of the investment program implementation with regard to the current year/quarter (by terms and cost)".
Based on the results of adjustment of the Company's business plan by the Board of Directors of JSC IDGC of the North-West on October 1, 2012 the following adjusted target values of annual KPIs were approved:
- return on equity (ROE) secured by cash flow — (-1.07%);
- energy loss to grid supply — 6.44%.
Data on actual fulfillment of established KPIs for 2012
| Availability of net profit (used as a mandatory condition for motivation) | Return on equity (ROE) secured by cash flow, % | Efficiency of the investment program implementation with regard to the current year (by terms and cost), % | Energy loss to grid supply, % | |||
|---|---|---|---|---|---|---|
| target | actual | target | actual | target | actual | |
| Achieved | -1.07 | -0.98 | ≥95 | 115 | 6.44 | 6.41 |
The complex parameter "Reliability Criterion" was fulfilled by the Company
| Avoidance of more than the maximum number of accidents falling within the characteristics set forth in clause 2.1 of the Instruction | System indicator of consumers' power supply loss (for feeders of 6 kV and above) | System indicator of the average length of consumers' energy supply interruptions (for feeders of 6 kV and above) | |||
|---|---|---|---|---|---|
| target | actual | target | actual | target | actual |
| 0 | 0 | <1 | 0.92 | <1 | 0.84 |