Results overview > Message from the Director General of the Company
S.G. Titov Chairman of the Management Board,
Director General
JSC IDGC of the North-West

Dear Shareholders!

In 2012 the management of JSC IDGC of the North-West, in the course of implementing the decisions of the Board of Directors, applying best corporate governance practices and following the principles of information transparency, was consistently fulfilling the task of assurance of reliable electric supply, development and extension of the infrastructure of the electric grid business of the seven regions of the North-West federal district of the Russian Federation. The results of the Company's activities are presented in the annual report which you are holding in your hands now.

The volume of electric energy transmission services rendered through the electric grids of JSC IDGC of the North-West reached 39.9 billion kWh, which is 0.57% higher than in 2011; the loss index remained unchanged at the level of 6.4 %.

Based on the results of 2012, the Company's revenues reached RUB 31.2 billion. The main reason for the increase in revenues was the growth of proceeds from technological connections. At the same time, the revenues from the main business activity, electric energy transmission, reduced by 1%. The financial result of the Company's activities is presented by profit in the amount of RUB 61.8 million. The Company has achieved such financial results despite the revision of tariff decisions towards the reduction in order to enforce resolutions of the Government of the RF.

In the last year the Company's management fundamentally improved relations with governmental authorities of the constituent entities in the zone of responsibility of JSC IDGC of the North-West. Together with the regulating authorities of the constituent entities we determined the strategy of switching to RAB-regulation in tariff setting. As a result, in 2012 the Republic of Karelia joined the Vologda, Novgorod and Pskov Regions setting tariffs using the RAB methods and the Murmansk and Arkhangelsk Regions are getting ready for the switch.

The implementation of the investment program, the volume of which had increased by 31 %, allowed for serious renovation of the grids, reduction of depreciation, development of the territorial infrastructure and connection of new consumers.

For example, in March in the Volodga Region a technological connection to electric grids of IDGC of the North-West of a unit of the combined cycle gas turbine of the Vologodskaya CHPP (Combined Heat and Power Plant) was carried out and in December power engineers connected GT CHPP Krasavino (the Krasavino Gas Turbine Combined Heat and Power Plant).

In the Novgorod Region substation 110/10/6 kV Parfino, which had been a closed feeding center since 2008, was put into operation after the full reconstruction.

In Karelia the external electric power supply to Kizhi Isles was reconstructed.

In the Republic of Komi a large-scale project for the construction of 100 kV line Sokolovka-Pazhga was completed by the end of the year, which allowed connecting of the Finno-Ugric Ethnocultural Park with the required level of reliability and ensuring the electric supply of the Sysolsky, Priluzsky, Koigorodsky Districts of the Republic.

The purchasing volume of equipment, materials and services exceeded RUB 13.3 billion, including RUB 12.4 billion in open purchasing procedures. The economic effect of the purchasing procedures amounted to over RUB 1 billion. The funds saved in purchasing activities were invested in modernization of the electric grids.

In 2013 the most important task for the Company's management was (and still remains) the assurance of reliability of electric power supply to the population and enterprises of the North-West federal district of Russia, especially in the fall-winter season.

We are sure that we will manage to fulfill, easily and painlessly, very important tasks relating to the performance of functions of a guaranteeing electric energy supplier and to overcome challenges relating to step-by-step termination of "last mile" facilities.

We also set ambitious tasks for comprehensive fulfillment of challenging but realizable tasks of the infrastructural development of regions, maintaining a constructive dialogue with authorities and ensuring effective use of our own resources, intellectual potential and professionalism of employees, which, eventually, will contribute to both the development of our company and JSC Russian Grids in general.

Chairman of the Management Board
Director General
JSC IDGC of the North-West


billion kWh

the volume of electric energy transmission services
RUB billion

company's revenues reached
had increased
RUB billion

the purchasing volume of equipment