OREANDA-NEWS. The press-conference  focused on the work results of the distribution network complex of the Centre and South of Russia during the autumn-winter period of 2006/2007 as well as the work of JSC “IDGC of Centre and North Caucasus”, reported the press-centre of  JSC “IDGC of Centre and North Caucasus”.

The following key performance points of JSC “Interregional Distribution Grid Company of Centre and North Caucasus” were reached in 2006:
The net profit of JSC “IDGC of Centre and North Caucasus” in 2006 was 2 billion 344 million roubles and exceeded the planned one by 394,1 million roubles.
According to the previous year’s results the ROE index (return on equity) was 3,03% and exceeded the planned one by  0,5% in absolute terms.
The Company’s own equity amounts to 77 billion 396 million roubles. Compared with 2005 it has increased by 13 billion 222 million roubles.
The power losses in 2006 were reduced by 0,83%, or 957 mln kWh, in comparison with 2005.
In 2006 the Regional Network Companies (RNC) operating under JSC “Interregional Distribution Grid Company of Centre and North Caucasus” completed the Investment Programme within the framework of the business – plans approved by the Boards of Directors.
The amount of capital investment raised in 2006 was 8 513,3 million roubles and exceeded the planned one by 2,9% ( 239,7 mln. roubles in cash terms) 54% of the capital investments were spent on technical re-equipment and modernization. Last year the main Company’s objective was the development and the implementation of the National Priority Programmes involving enhanced investment activities. Modern technologies, cutbacks in old equipment maintenance and an increase of investments for developing new sites are part of the program. Eventually, this led to the installation of a more advanced type of lines with self-supporting insulated wires in 0,4 KV lines construction and modernization. 35% of the capital investments were spent on new construction works.
Among the investment sources for the previous year were both equity and attracted funds, as well as revenue generated from new connections.
According to the 2006 results, long-term loans for the implementation of important Investment Programmes of the Regional Network Companies operating under JSC “Interregional Distribution Grid Company of Centre and North Caucasus” have increased by 149%. This year the total amount of loans is expected to reach 6-8 billion roubles.
Improving business efficiency has led to a further increase of investments generated from revenue for new customer connections. In 2006 it was 1,658 billion roubles, in 2007 IDGC is planning to spend over 2,912 billion roubles on new customer connections.


The Government Decree of March 21, 2007 shall facilitate the increase of monetary funds assigned for new customer connections. Amendments to the regulatory documents related to new connections were made and a revised edition of Rules on Non-Discriminatory Access to Power Supply Services was published. According to the amendments, it has been made clear that the expenses for network facilities construction and modernization are included into the payment for new customer connections, i.e. the payment for the new connections shall include the investment component for the network development.

Presently, the payment for connections in 2007 has been fixed in Ryazan, Astrakhan, Tver, Ivanovo, Belgorod, Nizhny Novgorod, Orel, Kaluga, Smolensk and Kostroma regions. In other regions the 2006 tariff shall be valid till a new one is fixed. The average tariff with the investment component included amounted to 6878 roubles/kW among the companies operating under JSC “IDGC of Centre and North Caucasus”.

A leasing package was put together which allowed to increase the number of the Investment Programmes. This year the Company is planning to enlarge the leasing package by 161% (1,75 billion roubles) compared to 2006. The main factor for a successful autumn - winter 2007/2008 period shall be  large- scale investments for increasing the lines’ capacity, reliability improvement and safety measures. Consequently, the current year is announced as The Investment Year in “IDGC of Centre and North Caucasus”. JSC “IDGC of Centre and North Caucasus” shall increase the amount of investments in 2007 by 1,7, amounting to 14,389 million roubles.