Contribution to regional development
The energy sector plays one of the most important parts in sustainable development of regions. By providing electricity transmission services we influence the social and economic situation and contribute to industrial and business development, human capital reproduction and increase of the population life quality.
Creation of investment projects based on the needs of the region in developing the grid and increasing reliability of electricity supply to consumers contributes directly to the region development. Timely and sufficient investment in fixed assets allows increasing the reliability of electricity transmission due to retooling and modernization (RTM) of electric grid equipment and investment in newly created assets allows to commission new, highly effective equipment thereby ensuring the electric grid complex development.
Investment activities
The Company annually prepares investments programs taking into account the following key criteria of efficiency: increase of availability of the grid infrastructure, reduction of depreciation and modernization of electric grid facilities, achievement of high loads of commissioned capacities.
Annual and long-term investment programs of IDGC of the North-West are created and adjusted within the periods specified in Resolution No.977 of the RF Government of December 1, 2012.
Correspondence with the effective plans for territorial and regional development is a mandatory condition for inclusion of investment projects in the program.
Investment activities in 2011-2012
| Structure of capital investments of IDGC of the North-West | 2012 | 2011 |
|---|---|---|
| Acquisition of fixed assets | 2.5 % | 1 % |
| New construction | 25 % | 24 % |
| Technical retooling and modernization | 72 % | 75 % |
In 2011 the share of investments in new construction and expansion decreased by 4% compared to 2010, however, in absolute terms the investment volume in 2011 grew more than 1.5 times and amounted to RUB1,240.981 million.
Despite the fact that since 2011 the share of investments in technical retooling and modernization in the total volume of the Investment Program decreased by 3%, the absolute investment volume in 2012 increased by 27% and amounted to RUB4,892.049 million.
For
Realization of socially important projects
Realization of a range of large investment projects provided an opportunity for development of industrial enterprises, connection of new consumers, and high-quality improvement of electric supply to cultural monuments of all-Russian importance and distant northern villages.
Socially important RTM projects completed in 2011-2012
| Project | Expenses, RUB million | Physical volumes | Social importance |
|---|---|---|---|
| In 2011 works on reconstruction of OL 35 kV Belousovo-Annensky Bridge in the Vytegorsky district of the Vologda Region were completed | 107.326 | Length of the lines: 42.178 km | Implementation of the project allowed to increase electric power supply reliability of six sluices of the Vytorgsky district for hydraulic works of the Volga-Baltic Waterway, Belorucheisk’s mine group JSC Severstal, timber processing plants and to replace morally and physically obsolete equipment of the facility. |
| In December 2012 reconstruction of substation 35/10 kV Domozerovo located in the Cherepovets district of the Vologda Region was completed | 16.895 | 12.6 MVA of transformer capacity | The reconstructed substation will provide a temporary electricity supply to the construction site of the Bridge Crossover across the Sheksna river, which is strategically important for the development of the town infrastructure. Moreover, the project implementation provided an opportunity for the construction of low-rise houses within the radius of 20 km from the SS located in the ecologically clean area. |
| In 2012 reconstruction of power transmission line L-83p Pudozh-Kubovo was completed | 44.381 | Length of the line: 18.47 km | L-83p with the length of over 40 km is a dead-end line so every failure on this line resulted in interruption of energy supply to 24 villages. The reconstruction of the line took several years and was carried out in four stages. Almost all works were carried out using the company’s own resources. |
New facilities commissioned in 2011-2012
| Project | Expenses, RUB million | Physical volumes | Social importance |
|---|---|---|---|
| In December 2012 DS 110 kV for connection of GT CHP Krasavino to the electric grid was put into operation | 160.362 | Length of the lines: 42.178 km | The implementation of the project for construction of DS 110 kV in the territory of open distribution device (ODD) 110 kV of Krasavino GT CHP provides an opportunity for further development of infrastructure of the Veliky Ustyug District and the Vologda Region and ensures a reliable and uninterrupted power supply to consumers |
| Within the framework of reconstruction of the scheme of external electric supply of the Kizhi Necklace the following works were performed under the two investment projects: I. Construction of OL-35 kV SS-78 Velikaya Guba II. Construction of SS 35/10 kV Zharnikovo | 81.968 73.712 | Length of the line: 32.09 km Length of the line: 12.6 MVA 0.16 km | Performance of the works allowed to supply electric power to electric plants of the Kizhi conservation area, to increase the reliability and quality of energy supply to consumers in the Kizhi and Big Klimenetsky Islands, to supply electric energy to consumers of the Kizhi conservation area and closely located villages, to increase the capacity of electric grids supplying the Kizhi Island. |
| In 2012 reconstruction of power transmission line L-83p Pudozh-Kubovo was completed | 132.252 | Length of the line: two-chain OL 110 kV 24.9 km, one-chain OL 110 kV 0.4 km | Performance of the works of the first order allowed connecting the Finno-Ugric Ethnocultural Park with the required level of reliability and ensuring electric supply of the Sysolsky, Priluzsky, Koigorodsky Districts of the Republic of Komi. |
In 2012 branches of IDGC of the North-West commenced works under the most important investment projects:
| Project | Physical volumes |
|---|---|
| Construction of SS 110 kV Yuzhnaya with overhangs to OL 110 kV in Cherepovets, construction period: from 2012 to 2014 | Within the framework of the project it is planned to design and construct OL 110 kV Yug 1, 2, OL 35 kV Irdomatka and Domozerovo, OL 10 kV Matinga in the territory of Cherepovets. Refusal from the project implementation may result in a failure to ensure energy supply to the site of residential construction planned by the program in Cherepovets and designed project “Multifunctional Center of Ice Sports”. |
| Reconstruction of SS 35/10 kV No.39 Lekhovo in the Pskov Region | The key goal of the project implementation is the connection of three production sites for hog fattening of LLC Velikiye Luki Pig-Breeding Complex with maximum requested capacity 2,080 kW. Implementation of this investment project envisages works for replacement of power transformers of SS No. 39 with increase of capacity from 1×1.6 MVA to 2×4 MVA. |
Taxation
JSC IDGC of the North-West is one of the largest employers of the Northwestern region that contributes materially to its social and economic development.
JSC IDGC of the North-West is a major taxpayer as defined in clause 1 of Article 83 of the Tax Code of the Russian Federation. Tax control over the compliance with the legislation on tax and levies is carried out by Inter-regional Inspectorate No. 4 of the Federal Tax Service of Russia for Major Taxpayers for Moscow and the control over proceeds to regional budgets is carried out through tax authorities at the place of registration of separate subdivisions. The total of 6,684 separate subdivisions of the Company is registered by place of property and workplaces location.
Based on the results of financial and economic activities of JSC IDGC of the North-West taxes and other mandatory payments in the amount of RUB 5,144.2 million in 2011 and RUB4,272.7 million in 2012 were paid in the budgets of all levels (taking into account return of advance payments).
| No. | Indicator | 2010 | 2011 | 2012 |
|---|---|---|---|---|
| 1 | Taxes and duties paid to the budgets of all levels and non-budgetary funds | 3, 633.5 | 5, 144.2 | 4, 272.7 |
| 1.1 | Federal budget | 1, 662.4 | 1, 941.4 | 1, 518.5 |
| 1.1.1 | VAT | 1, 657.1 | 1, 844.1 | 1, 476.5 |
| 1.1.2 | Income tax (federal budget of the RF) | -6.5 | 80.6 | 19.2 |
| 1.1.3 | Other tax payments and levies | 11.8 | 16.7 | 22.8 |
| 1.2 | Regional budgets | 835.0 | 1, 587.7 | 1, 064.4 |
| 1.2.1 | Income tax (budget of constituent entities of the RF) | -39.5 | 676.4 | 75.8 |
| 1.2.2 | Personal income tax | 736.0 | 780.5 | 852.9 |
| 1.2.3 | Property tax | 124.6 | 116.8 | 121.5 |
| 1.2.4 | Transport tax | 13.9 | 14.0 | 14.1 |
| 1.3 | Local budgets | 6.8 | 7.5 | 8.3 |
| 1.3.1 | Land tax | 6.8 | 7.5 | 8.3 |
| 1.4 | Non-budgetary funds of the RF | 1, 118.0 | 1, 595.8 | 1, 674.5 |
| 1.5 | Payments for negative impact on the environment | 11.3 | 11.8 | 7.1 |
In 2012 RUB1,072.6 million, or 25.11% of the Company’s total payments, and in 2011 RUB1,595.2 million, or 31.0% of the Company’s total payments, were paid to the budgets of constituent entities of the Northwestern region and local budgets.
| No. | Republic/Region | 2010 | 2011 | 2012 |
|---|---|---|---|---|
| 1 | Taxes and duties paid to the budgets of constituent entities of the RF and local budgets | 841.8 | 1, 595.2 | 1, 072.6 |
| 1.1 | Republic of Komi | 206.3 | 358.1 | 262.2 |
| 1.2 | Vologda Region | 142.1 | 323.4 | 199.1 |
| 1.3 | Arkhangelsk Region | 110.6 | 226.2 | 156.1 |
| 1.4 | Pskov Region | 81.6 | 202.3 | 115.4 |
| 1.5 | Murmansk Region | 92.5 | 173 | 105.6 |
| 1.6 | Republic of Karelia | 80.3 | 144 | 95.6 |
| 1.7 | Novgorod Region | 85.9 | 121 | 84.5 |
| 1.8 | Saint Petersburg | 39.9 | 45.1 | 50.2 |
| 1.9 | Leningrad Region | 2.6 | 2.1 | 3.9 |
Anti-corruption policy
As of the end of 2012 88 managers and 271 managers’ family members declared their income (the total of 359 persons).
JSC IDGC of the North-West and its subsidiaries and affiliates carry out continuous work on ensuring the efficiency and transparency of activities.
The anti-corruption mechanisms include making relevant amendments to internal documents of JSC IDGC of the North-West.
By resolution of the Board of Directors of April 17, 2012 (Minutes No.96/17) amendments were made to the Regulation on the Procedure for Carrying out Regulated Purchases of Goods, Works and Services for the Needs of JSC IDGC of the North-West: in accordance with Instruction No. VP-P13-9308 of Chairman of the Government of the Russian Federation of December 28, 2011, in order to ensure the transparency of financial and business activities, including avoidance of conflicts of interest and prevention of other misuse relating to the position held, counteragents shall disclose information with respect to the entire chain of owners, including beneficiaries (in particular, final beneficiaries), confirmed by relevant documents.
By the Company’s Order No.162 of April 06, 2012 the Mediation Board of JSC IDGC of the North-West was established and its composition was approved. The Mediation Board carries out collection and analysis of information on income, property and obligations of property nature of managers and their close relatives and identification and prevention of conflicts of interest in performance of financial and business activities of the Company and its subsidiaries and affiliates.
| Measures to identify signs of affiliation | Checked/identified |
|---|---|
| Company’s employees and their family members checked for possible affiliation with counteragents | 955/24 |
| Candidates to employment relations checked for the purpose of identification of personal or indirect connections with counteragents implying affiliation (number)/negative opinions given (number) | 486/7 |
| Potential counteragents in tendering procedures checked for the purpose of identification of affiliation (number)/negative opinions given (number) | 3,966/387 |
| Checked counteragents of JSC IDGC of the North-West and its subsidiaries under agreements effective as of December 31, 2012, the analysis of information on whom was completed/ facts of misuse identified (by officers) by managers responsible for making the transaction with the counteragent | 1,541/- |
| Decisions of tender committees checked (number) | 131 |
| Facts of lobbying identified: | |
| selection of a winner without regard to requirements of tendering documents (number) | 4 |
| unsubstantiated refusal from admission to tendering of manufacturers and their official dealers (number) | 3 |
| the price of another applicant is lower, all other conditions being equal (number) | 13 |
| the agreement with the winner of the tender provides for an advance payment (number) | 12 |
| Measures of response on identified facts of affiliation checked: | |
| tender results annulled (number) | 3 |
| agreement with counteragent terminated (number) | 1 |
| activities of the counteragent taken under control by subdivisions of the Security Department (number) | 28 |
| Company’s employees excluded from among the founders (number) | 2 |
| other measures (number) | 4 |
| measures not taken (number) | 0 |