Rosseti Center

Public Joint Stock Company Rosseti Center (PJSC Rosseti Center) is an operating company operating in two main markets: in the market for transmission and distribution of electricity, as well as in the market for technological connection (connecting customers to electric networks with a voltage of 0.4-110 kV).

The main strategic priorities are: ensuring reliable, uninterrupted and high-quality power supply to consumers; improving the quality and reliability of the services provided; improving investment efficiency; energy saving and loss reduction; increased efficiency of operating costs; improving interaction with consumers, society and investors.

Information Technology in Rosseti

Main questionnaire: Information technology in Russia

History

2022: Equity

PJSC Rosseti Center is the largest interregional distribution network company in the Russian Federation, whose controlling stake (50.2%) is owned by PJSC Russian Networks, which manages corporate methods (through the Boards of Directors). The controlling shareholder of the parent company of PJSC Rosseti is the state represented by the Federal Agency for State Property Management, which owns 88.04% of the share in the authorized capital.

As of May 23, 2022, the largest shareholders of PJSC Rosseti Center are PJSC Rosseti (50.2%) and NEW RUSSIAN GENERATION LIMITED (16.0%). Prosperity Capital Management Limited (Prosperity Capital Management Limited) directly or indirectly has the right to dispose of 21.01% of the shares constituting the authorized capital of the Company.

Rosseti Center has declared shares (258,532 ordinary shares with a par value of 10 kopecks for a total amount at a par value of 25,853,20 rubles). These shares were formed as a difference between the declared (42 218 200 000 pcs.) And the placed (42 217 941 468 pcs.) shares during the reorganization of the Company in the form of the accession of regional network companies to it in 2008.

2021: Renamed Rosseti Center

On August 3, 2021, in accordance with the decision of the Annual General Meeting of Shareholders of IDGC of Center PJSC held on May 31, 2021 (Minutes No. 01/21 of 31.05.2021), the name of the Company changed:

Full corporate name - Public Joint Stock Company Rosseti Center.

Abbreviated corporate name - PJSC Rosseti Center.

2020: Extension of the agreement on the powers of the sole executive body of IDGC of Center and Volga Region

On October 7, 2020, the agreement on the transfer of IDGC of Center PJSC to the powers of the sole executive body of IDGC of Center and Volga Region was concluded for a new period until December 31, 2023 inclusive.

2019

30% of the first stage of digital transformation, designed for five years, has been completed

Igor Vladimirovich Makovsky, head of Rosseti Center and Rosseti Center and Volga Region, noted in December 2019 that in the outgoing year the companies ensured the unconditional implementation of all current production programs. Over 10 thousand km of power lines and more than 2000 MVA were put into operation, 13 thousand transformer substations and 52 thousand kilometers of air power lines were repaired, 30.6 thousand hectares were cleared and 1 thousand hectares of clearings were expanded.

construction A number of large facilities have been completed, new capacities have been commissioned to provide power to enterprises that are important for the socio-economic development of the regions. Over 72 thousand technological connection contracts have been fulfilled. Increased operational efficiency, preserved and improved - financiallyeconomic indicators under unfavorable external conditions.

A high level of trouble-free operation is ensured, despite serious tests of bad weather. The number of emergencies for the year as a whole for two companies decreased by 15%. On the eve of winter, power engineers passed a tough test in the Tver region. The region has experienced two consecutive unprecedented impacts of the elements. Thanks to professionalism, clear and well-coordinated work, the dedication of the specialists of the two companies, mass outages were eliminated as soon as possible for such situations.

The strategic priority for Rosseti Center and Rosseti Center and Volga Region in 2019 was the reversal of the full-scale implementation of the Concept of digital transformation of the electric grid complex. "In 2019, we ensured a powerful start and accelerated pace of work, launching, and in a number of regions even having already completed all the key projects of the first stage of digital transformation. To date, up to 30% of all events of the first stage, designed for five years, have been completed - twice as much as originally planned, "Igor Makovsky emphasized.

In the perimeter of energy companies, 8 digital network management centers and city dispatching centers have been created, from where the electric grid complex of regions and large cities is managed online. In the Belgorod region, the first digital substation Nikolskoye in the Rosseti Center perimeter was commissioned. In the Voronezh region, the construction of the Sputnik substation has begun - it will be the first digital power center in Central Russia, built from scratch. In the Udmurt Republic, the installation of equipment at the first digital substation of the Airport region has been completed. In Belgorod and Ivanovo, work has been completed on the creation of digital contact centers.

Preparatory work was completed on the implementation of the project "Software method for detecting unaccounted electricity volumes using Big Data technology." The development of technical solutions for telemetry at the TP was completed and the installation of an integrated energy monitoring system and the installation of distributed automation in the digital areas of electric networks began. A mathematical model of the network has been adopted for development.

In Belgorod and Vladimir, pilot projects were successfully implemented to install electricity storage in the low-voltage distribution network. In the Udmurt Republic - a pilot project for informing consumers - a virtual dispatcher. In the Yaroslavl, Lipetsk, Vladimir, Nizhny Novgorod and Tver regions, the Digital Electrician for electricity accounting was put into trial operation. In the Lipetsk region, tests of a unique complex of automatic monitoring of the state of power lines using unmanned aerial vehicles and charging stations have been completed.

Among the main effects of digitalization, the head of Rosseti Center and Rosseti Center and Volga Region indicated a 50% decrease in the average frequency and duration of network outages, a 30% reduction in operating costs by 15% - capital expenditures, an increase in labor productivity and capitalization of companies.

IDGC of Center begins a large-scale digital transformation

In 2019, the company plans to commission about 4.8 thousand kilometers of power lines and about 750 MVA of capacity. The amount of funding for the program will be 15, 652 billion rubles.

Large volumes of work this year are planned as part of the first stage of the implementation of the concept of digital transformation - over 5 billion rubles are planned for these purposes in the investment program. Thus, by the end of 2019, unified network management centers (ECUS) will be created in all branches of IDGC of Center as part of the transition to a two-level management system. Similar units will be created in cities with a population of over one hundred thousand people. ECUS will be equipped with digital communication channels and the most modern information systems, which will allow online monitoring of the state of power grid facilities, analyzing electricity quality parameters, coordinating the work of operational-field and repair teams.

Also in 2019, the implementation of the Digital RES and Digital Substation projects will begin. The first two digital RES in the company's structure will be created by the end of the year on the basis of the branches Belgorodenergo"" and Voronezhenergo"." Among the main areas of this project is the construction of an active-adaptive 6-10 kV network based on intelligent switching devices that allow localizing damage in real time, automatically transferring the load from a damaged to an intact section of the network, as well as the introduction of intelligent electricity metering devices.

One of the first regions where the digital substation will be built will be the Belgorod region - here this project will be implemented by the end of 2019 at the 35 kV substation of the Nikolskoye branch of Belgorodenergo. Its result will be the creation of a digital control center for the distribution network, based on the software and hardware complex for the protection of automation and control, made using the latest digital technologies. This year, work will begin on the creation of a digital substation and on the basis of the 110/10 kV Vysokaya substation in the Kursk region. This feeding center, commissioned in 1970, is important for the region, it provides power to the military unit, the I.I. Ivanov KGSHA, numerous social facilities and residential areas of the city of Kursk.

In total, IDGC of Center will create 10 digital RES and 9 digital substations during the first stage of digital transformation, which will be completed by the end of 2020. In addition, 100% of the branches will be covered by digital radio communication. 100% observability of 35-110 kV substations will be ensured, and in the RES 31, a comprehensive automation of the 6-10 kilovolt network will be carried out and a comprehensive energy monitoring system will be introduced.

The implementation of the concept of digital transformation projects in IDGC of Center PJSC will reduce the cost of maintenance, repair and operation of power grid infrastructure facilities, reduce losses in networks, significantly reduce the number and time of elimination of technological violations and, as a result, improve the quality and reliability of power supply to consumers.

2017

Net debt decreased to 40.1 billion rubles

The consolidated revenue of the Company for the specified period amounted to 91.1 billion rubles, including 87.6 billion rubles from electricity transmission, 1.6 billion rubles from connection to power grids, 0.5 billion rubles from resale of electricity and capacity and 1.4 billion rubles from other revenues. Profit before interest, tax and amortization (EBITDA) increased to RUB 19.0 billion. Profit for the period amounted to 3.0 billion rubles.

The change in consolidated revenue in 2017 was mainly due to an increase in revenue from transmission services due to an increase in the average tariff and an increase in the volume of useful vacations. In connection with the execution of a large number of large technological interconnection contracts, revenue growth for technological interconnection services in 2017 amounted to 14.3%. Since 2016, IDGC of Center began to perform the functions of a guaranteeing supplier of electricity in the Tver region, which caused the appearance of revenues from the resale of electricity and capacity as part of the consolidated revenue.

Operating expenses of the Company for 2017 amounted to 83.3 billion rubles, which is 5.7% more than in 2016. The main factor in the increase in expenses was an increase in non-controlling expenses: 15.1% increased the cost of purchasing electricity to compensate for losses, 5.0% increased the cost of third-party electricity transmission services. Depreciation amounted to 9.6 billion rubles at the end of 2017, which is 0.9 billion rubles more than the same indicator last year. Additional factors that influenced the change in the company's expenses in 2017 were the recognition of impairment of property, plant and equipment in the amount of 0.9 billion rubles, an increase in taxes in the amount of 0.3 billion rubles and the emergence of expenses for the purchase of electricity for sale.

Net other income of the company decreased by 23.5% mainly due to a decrease in the amount of write-off of accounts payable and income from gratuitous received property, plant and equipment and inventories. The company's EBITDA in the reporting period increased by 6.1% to RUB 19.0 billion. Profit for the period decreased by 37.5% and amounted to RUR 3.0 billion in 2017. The Company's financial results were most significantly affected by the growth in revenue from electricity transmission services and services for the technological connection of consumers to power grids, the recognition of impairment of property, plant and equipment and additional tax due to the exclusion of mobilization preparation expenses from non-operating expenses for tax purposes.

As of December 31, 2017, IDGC of Center's assets amounted to 105.1 billion rubles (as of December 31, 2016 - 107.0 billion rubles). Net debt decreased to 40.1 billion rubles (as of December 31, 2016 - 40.7 billion rubles). The indicator decreased due to a reduction in the loan portfolio in the reporting period.

Acceptance of powers of the sole executive body of IDGC of Center and Volga Region

On September 11, 2017, an agreement was signed on the transfer by IDGC of Center of the powers of the sole executive body of IDGC of Center and Volga Region, the terms of which were approved by the Boards of Directors of both companies. The management scheme of companies, approved under the agreement of the Unified Executive Body, involves the addition of the existing 11 branches of IDGC of Center to another 9 branches of IDGC of Center and Volga Region.

2015

As of 2015, IDGC of Center has more than 30 thousand employees. In general, the share of IDGC of Center OJSC in the market for the transmission of electric energy of regions in the areas of responsibility is about 83%; the company's share in the market of technological connections in the Belgorod, Bryansk, Voronezh, Kostroma, Kursk, Lipetsk, Oryol, Smolensk, Tambov, Tver, Yaroslavl regions (an area of ​ ​ 457.7 thousand square kilometers) is about 87%.

2014: Owners

As of December 2014, the owners of IDGC of Center were:

• Russian networks (Rosseti, formerly IDGC Holding) - 50.23%
• Genhold Limited
• The Bank of NewYork Mellon

2013

SK: IDGC of Center Director caused damage of 880 million rubles. through a controlled IT contractor

The Main Investigation Department of the Investigative Committee of Russia opened a criminal case against the former general director of IDGC of Center Yevgeny Makarov, as well as the director of Corporate Service Systems (KorSys) Stanislav Milkin^[1].

They are suspected of committing crimes under Part 2 of Art. 201 of the Criminal Code of the Russian Federation (abuse of authority), part 5 of Art. 33, part 2 of Art. 201 of the Criminal Code of the Russian Federation (aiding in abuse of authority), the statement of the UK says.

According to investigators, in 2005 Makarov, who held the post of general director of IDGC of Center, attracted his friend Stanislav Milkin and other unidentified persons as accomplices, offering them to lead the current activities of KorSys, located in Belgorod. One of the main shareholders of KorSys was Makarov's wife, according to the UK. Makarov and Milkin, according to investigators, created conditions under which IDGC of Center could not fulfill its obligations to electricity consumers without concluding economically unprofitable contracts with KorSys regarding the maintenance of information and technological systems located in 11 regions of central Russia.

As a result, IDGC of Center suffered material damage in the amount of more than 880 million rubles. The main shareholder of IDGC of Center is the state, remind the UK. Investigative actions and operational-search measures are being carried out aimed at establishing all the circumstances of the crime, as well as the persons involved in its commission.

Equity and Production Potential

The main shareholders of IDGC of Center OJSC, except for Russian Networks OJSC, are Genhold Limited and The Bank of NewYork Mellon. In free float is a 25% stake in IDGC of Center. The number of shareholders is more than 16,000. Stock code on the exchange: MICEX-RTS - MRKC. Hackers: Bloomberg - MRKC RX, Reuters - MRKC.MM.

The production potential of IDGC of Center OJSC is 2.3 thousand substations with a voltage of 35-110 kV with a total capacity of 32,600 MVA and 90.2 thousand substations with a voltage of 6-10 kV with a total capacity of over 16,500 MVA. The total length of power lines 0.4-110 kV is 379 thousand kilometers.

From February 1, 2013 in the Bryansk, Kursk and Oryol regions, from April 25, 2013 in the Tver region, IDGC of Center OJSC transferred energy sales functions.

2008: Interconnection of 11 distribution grid companies

The final formation of the target structure of IDGC of Center was completed by joining 11 distribution network companies in the form of branches and switching to a single share. The merger was completed on March 31, 2008. On this day, amendments were made to the Unified State Register of Legal Entities on the termination of the activities of the RSK as a result of joining IDGC.

Company structure

2007

The final decision to change the basic configuration of IDGC was made by the Board of Directors of JSC RAO UES of Russia and is enshrined in Protocol No. 250 dated April 27, 2007. According to this protocol, IDGC of Center and North Caucasus OJSC should be renamed IDGC of Center OJSC, with the corresponding amendments to the Charter of the Company.

OJSC IDGC of Center included the following distribution network companies: OJSC Belgorodenergo, OJSC Bryanskenergo, OJSC Voronezhenergo, OJSC Kostromaenergo, OJSC Kurskenergo, OJSC Lipetskenergo, OJSC Orelenergo, OJSC Tambovenergo, OJSC Smolenskenergo, OJSC Tverenergo, OJSC Yarenergo.

2006: Configuration Changes

From March to May 2006, JSC RAO UES of Russia adopted a number of decisions to change the current IDGC configuration. In particular, by Order of RAO UES of Russia/FGC UES OJSC No. 64r/30r dated March 7, 2006, the transfer of responsibility for the functioning of Moscow City Electric Grid Company OJSC, Moscow Regional Electric Grid Company OJSC, directly to the Networks business unit; By order of JSC RAO UES of Russia No. 103r/102r, the transfer of responsibility for the functioning of OJSC Dagenergo, OJSC Kalmenergo, OJSC Nurenergo , OJSC Stavropolenergo, OJSC Ingushenergo, OJSC Karachay-Cherkesskenergo, OJSC Sevkazenergo , OJSC Kabbalkenergo is enshrined. OJSC Kubanenergo is directly subordinate to OJSC FGC UES.

2004: Creation of IDGC of Center

OJSC Interregional Distribution Grid Company of the Center (IDGC of the Center) was registered on December 17, 2004. In accordance with the decision of the Board of Directors of JSC RAO UES of Russia dated April 23, 2004, IDGC of the Center was supposed to include 32 regional network companies (RSK) of the Central Region and the North Caucasus. But, due to the adoption of a number of adjustments, it was decided to reduce the number of regional network companies included in IDGC of Center OJSC to twenty-four.

Notes