Energy saving and efficiency

In the sphere of energy saving and efficiency, according to energy-saving programs, the following indicators are our targets: energy losses, resources for economic needs, metering for economic needs, metering for retail market. As of 2010 the target indicators are:

  Target 2010 Actual 2010
Energy losses RUR mln., including VAT 12 956.63 12 736.45
Energy losses mln. kW/h 6 477.21 6 333.24
Energy losses % of energy supply 8.17 8.08
Resources for economic needs RUR mln., including VAT 332.48 312.65
Metering for economic needs % 100 99.7
Metering for retail market % 7.73 7.73

Indicator “Metering for economic needs” was not reached, because overhaul completion date (including reconstruction of heating system and heating metering in a Chelyabenergo office building) was put off to 15.09.2011.

Our energy-saving program includes energy saving and efficiency program, metering development/ update program and program stipulating measures to increase industrial and commercial consumption resource efficiency. It should be noted that the program has not included technical and organizational measures that were taken annually during current operations, their implementation having no influence on losses in comparison to the last reported period. In 2010 we expected the following effects from the programs:

  Target Actual
  mln. kW/h RUR mln mln. kW/h RUR mln
Metering development/ update program 51.62 71.43 51.62 71.44
Program stipulating measures to increase industrial and commercial consumption resource efficiency 0.05 0.10 0.05 0.10
Overall effect 51.68 71.53 51.68 71.54

As of 2010 the completion of programs totals 100%. Expenses totaled RUR 156.84 mln. (no VAT). Financing sources for energy-saving program were investment program (RUR 101.65 mln.) and repair program (RUR 55.19 mln.).

Energy resources consumed by the Company in 2010 are as follows:

  Measurement unit Target 2010 Actual 2010
Energy resources supplied according to contracts RUR, thous. (no VAT) 332 482.1 312 651.7
Electric energy RUR thous. 263 377.2 246 639.3
  Thous. kW/h 96 162.1 88 081.6
Thermal energy RUR thous. 63 860.9 60 189.0
  Gcal 62 868.0 59 618.0
Cold-water supply RUR thous. 5 067.6 5 660.0
  Thous. m3 198.4 220.1
Hot-water supply RUR thous. 8.4 8.4
  Thous. m3 0.7 0.7
Natural gas RUR thous. 168.0 155.0
  Thous. m3 41.0 40.0
Petrol RUR thous. - 6 657.062
  tons - 301.39
Diesel fuel RUR thous. - 2 932.692
  tons - 137.35
Oils RUR thous. - 4 802.567
  tons - 71.3

As a priority the Company takes measures aimed at optimization (decrease) of energy losses. Due to loss optimizing measures overall effect totaled 583.381 mln. kW/h. Measures aimed at the decrease of non-technical losses have the effect of 116.231 mln. kW/h. Decrease of technical losses by organization measures totaled 20.31 mln. kW/h (technical measures – 4.19 mln. kW/h). overall economic effect reached RUR 295.846 mln., expenses totaled RUR 94.98 mln. (expenses are disclosed according to the Program on the Perspective Development of Retail Market Metering System). At the same time average pay-back period is 11.5 years. 2010 loss decreasing target was accomplished by 100%.

Loss decrease, mln. kW/h
Measures on decreasing technical energy losses, including 69.44
Replacement of wires 3.041
Replacement of overloaded/underloaded transformers 0.8668
Disconnection of transformers at substations with 2 transformers and transformers with seasonal loading 0.476
Phase load balancing in 0.4 kV networks 0.183
Optimization of load balancing by the construction of substations and lines, including transition to a higher tension level 0.1348
Subdivision of 0.38-35 kV lines 0.1533
Other organizational measures 19.65
Measures on decreasing non-technical energy losses 116.231

During 2010 non-technical losses were reduced by 116.231 mln. kW/h due to the implementation of Metering Update Program and execution of tasks stipulated by transmission contracts.

As of 31.12.2010 debts under litigation totaled RUR 945 mln. including VAT. The main cause of debts under litigation is disagreements between the Company and a consumer over the amount of capacity and energy presented for payment. We are preparing complaints on SUAL-UAZ debts, in December 2010 we have written off ChEMK debt (RUR 2 855 mln).

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  Receivables Payables
  Consumer debt at the beginning of the year, RUR mln, including VAT Consumer debt at the end of the year, RUR mln, including VAT Gridco’s debt (loss compensation) at the beginning of the year, RUR mln., including VAT Gridco’s debt (loss compensation) at the end of the year, RUR mln., including VAT
  Total Under litigation Total Under litigation Reflected in accounts Non-reflected in accounts Reflected in accounts Non-reflected in accounts
Permenergo 476 109 415 1 86 0 64 0
Sverdlovenergo 3 584 394 4 086 944 406 0 533 0
Chelyabenergo 2 409 413 899 0 602 0 486 0
IDGC of Urals 6 470 916 5 400 945 1 093 0 1 082 0
  Receivables Payables
  Consumer debt at the beginning of the year, RUR mln, including VAT Consumer debt at the end of the year, RUR mln, including VAT Gridco’s debt (loss compensation) at the beginning of the year, RUR mln., including VAT Gridco’s debt (loss compensation) at the end of the year, RUR mln., including VAT
  Total Under litigation Total Under litigation Reflected in accounts Non-reflected in accounts Reflected in accounts Non-reflected in accounts
Permenergo 476 109 415 1 86 0 64 0
Sverdlovenergo 3 584 394 4 086 944 406 0 533 0
Chelyabenergo 2 409 413 899 0 602 0 486 0
IDGC of Urals 6 470 916 5 400 945 1 093 0 1 082 0

Debts under litigation are settled in judicial proceedings. Main debts under litigation in Sverdlovenergo belong to SUAL UAZ, ОАО (RUR 841 mln.), there are court proceedings on coercion of FSK UES, OAO to conclude transmission contract with SUAL UAZ, OAO.

Energy transmission services rendered to FSK, debts to FSK, including “last mile” contracts, are as follows:

  Total Permenergo Sverdlovenergo Chelyabenergo
Capacity (MW) 9 809 2 110 5 014 2 685
Energy transmitted (mln. kW/h) 1 634 201 414 942 869 644 349 615
Overall price (RUR mln, including VAT): 12 907 2 834 6 669 3 405
Loss compensation (RUR mln.) 2 024 501 1 078 445
Network maintenance (RUR mln.) 12 204 2 625 6 239 3 340
Load losses (RUR mln.) 1 321 293 648 381

FSK services are paid according to the concluded contract, there are no overdue debts, including debts according to “last mile” contracts.