Internal Control and Risk Management System > Main Risk Factors > Operational Risks

The Company's activities are carried out in a wide geographical area characterized by various climate conditions. There is a possibility of emergency situations resulting from natural disasters (hurricanes, rainstorms, icy rains, snow falls, etc.), which may cause system failures leading to inoperability or inefficiency of equipment of the electric grid distribution complex and failures in energy supply to the Company's consumers.

Operational and technological risks affecting the reliability of energy supply are primarily related to high physical and moral depreciation of electric grid assets, violation of operational conditions and operational modes of electric grid equipment, failure to implement repair programs in required volumes. Additionally, the operational and technological risk factors include:

  • natural and man-made nature emergencies;
  • decrease of the effectiveness of the asset management system (shift in priorities in ensuring reliability of operation of grids, incorrect categorization of facilities to be repaired);
  • factors relating to equipment operation, including maximum deviations from standard technical requirements, over-ranging technological parameters of operation of electric grid equipment, errors of operative personnel and violation of operative discipline.

The above risks may result in significant economic and reputational consequences. Besides, the above risk factors affect loss volumes in electric grids, thus, increasing expenses on purchase of electric energy for the purpose of loss compensation.

As measures to decrease the possibility of occurrence of operational and technological risks the Company takes actions aimed at increasing the reliability of energy supply to consumers and prevention of risks of technological violations, including:

  • clearing and extension of routes for overhead lines 0.4-220 kV;
  • reconstruction of electric grid facilities;
  • extension of the park of back-up power sources (BUPS), automobile and special equipment for rescue and recovery operations;
  • a comprehensive program for modernization (renovation) of electric grid assets;
  • cross-connect equipment modernization,
  • modernization and creation of automated technological development systems;
  • improvement of information exchange systems, analysis of technological violations, forecasting their consequences, including implementation of an automated management system for allocated resources in carrying out rescue and recovery operations (MSAR RRO);
  • improvement of the emergency stock management system;
  • increasing the number of mobile rescue and restoration crews and improving their composition quality;
  • programs for reducing injury risks at electric grid facilities;
  • training, control and attestation of personnel using technological equipment;
  • an insurance program;
  • an energy saving and energy efficiency increase program.