OREANDA-NEWS. April 7, 2008. In the Head Office of the Holding was held the regular meeting of the Tatarstan State Council Presidium. The agenda included the issue of involvement of JSC "Tatenergo" in realization of social and economical policy of the Republic.

Prior to the meeting the delegates visited the major power engineering objects, located in the capital of RT, - they substation "Kremlevskaya", Kazan CHP-1, Dispatch Center of "Tatenergo". Here he demonstrated the capacities of the new technologies, utilized lately due to big investments by the power Company.

Chairman of the State Council of RT Farid Muhametshin, emphasized that Tatenergo is Company, that had chosen its own special way of developing. For upgrading the facilities of the power system, increase of dependability and efficiency of its operation in invested the big own and borrowed funds. The future of JSC "Tatenergo", the actions to be taken for solving the urgent problems of Tatarstan power industry - for these challenges the answers were sought by members of Presidium of State Council of RT.

The head of Tatarstan Parliament emphasized that "Tatenergo" is one of the largest power companies in Russia and one of the flagships of Tatarstan economy. On reforms and upgrading the company will depend in many ways its competitiveness on the formed Federal electricity market which will reflect on the tariffs. The Parliamentarians are interested in participation in this vital industry of social and economical life of Republic, in filling the budget of RT, said Farid Hairullovich. "Of course, we cannot but are concerned about the work of this collective, as the prosperity of each Tatarstan citizen depends on the power engineers work.", - he told.

Ilshat Fardiev, the General Director of JSC "Tatenergo" reported on the major issue. In his words, the basic tasks for the near future are in the message by President of RT Mintimer Shaimiev to State Council for 2008. Specifically, we talk about technical refurbishment, upgrading, increased supplies of electricity at competitive prices, formation of the power cluster, support of energy conservation productions. "Holding JSC "Tatenergo" makes big input in improving the social and economical climate, said Ilshat Fardiev. In 2005-2007 the total amount of taxes by JSC "Tatenergo" considering the Goszhilfond at President of RT constituted 13 billion 137 million rubles. Including 44.9 per cent of this amount constituted deductions to the budget of Republic and local budgets.

The tax load with regard to basic companies of the power holding in 2007 constituted 11 kopecks per 1 ruble of earnings and grew compared to 2006 by 3 per cent. Total amount of taxes in 2007 in the Holding exceeded 5 billion 792 million rubles.

As part of Program of social mortgage in 2005-2007 were remitted 929.6 million rubles. These are 23,240 sq. meters or 387 apartments if to count in average 60 sq. m per a family. The "Tatenergo" Holding entities аre active in rendering charity help to boarding schools, religious intuitions. Total amount of funds spent for these goals in 2002 through 2007 surpassed 200 million rubles. Since 2004 in the Holding has worked the charity foundation "Care" to which foundation remit part of the salary the staff of each branch of JSC "Tatenergo" Holding. On the funds of the foundation are financed the medical surgeries, is rendered the help to disabled children, those whose houses perished in fire.

Deputy General Director of JSC "Tatenergo" Damir Safiullin spoke about the course of implementation of the Program of the power engineering Holding reforming. The goals of reforms of power engineering were set froth by Resolution by Government of RF dd., 11 July 2001 #526 "Оn Reforming the Power Engineering Industry of Russian Federation".

In the course of reforms the structure of industry changes: the separation is done of the natural - monopoly (electricity transfer, dispatch control) and potentially competitive (generation and sales of electricity, repair and maintenance) functions, and instead of the former vertically-integrated companies, these functions doers, are founded the structures specialized in the separate business dimensions. The basic stage of reforming the power system of Republic of Tatarstan fell on 2005. Since 1 April 2005 began the independent full activity the JSC "Generation Company", JSC "Network Company", JSC "RDU "Tatenergo "; since 1 October 2005 - JSC "Kazan Thermal Network Company", "Urussu Thermal Networks, Ltd". JSC "Tatenergo " chose the strategy of reforming different from the strategy of JSC "RAO UES Russia".

The mild policy of decentralization of governance in the Company allowed to avoid many problems in terms of dependability of power supply, uncoordinated information flows, issues of prospective planning of loads etc. During reforms the corporate methods of management replace the command methods. Creation of the efficient system of distribution of responsibilities among the governing bodies - the stockholders meeting, Council of Directors, General Directors, keeping to the single technical, investment, accounting, tariff and social policy becomes the success prerequisite.

Deputy General Director of JSC "Tatenergo " - Director of JSC "RDU" Yuri Schelokov told about realization of corporate investment Program. Today condition of facilities of generation and network companies and the capacities allow to cover the prognosis of growth of electricity consumption only at level of 2012. Forecast of growth of energy consumption in RT by 2015 will be 2.7 - 3% per year. The task will be - to utilize for the Generation Company additional 1000 МW of capacity. In the power system has been developed and approved by the Government of RT the Investment Program for 2008-2010, аs well as developed the Investment Program for 2011-2015.

For providing the dependable electricity and heat supply to consumers of both industrial and residential sector, it is necessary for the time period till 2015 commission:
SGT - 95 МW at Kazan CHP-1;
SGT - 230 МW and SGT - 450 МW at Zainsk GRES;
SGT 150 МW at Kazan CHP-3;
2х GT - 18 МW at RBH "Azino";
SGT - 230 МW at Kazan CHP-2.

In the present, the feasibility studies are effected with respect to a. m. objects. For realization of the investment Program for 2008-2015 are required the investments in amount of 98.3 billion rubles. The existing sources - depreciation, profit of the Company do not provide in full the realization of the Investment Programs. The deficiency of financing sources for the Program constitutes 60.6 billion rubles For attracting the insufficient funds the work is done to attract the loans from the European Bank of Reconstruction and development for SGT building. The preparations are made for additional issuance of stocks of JSC "Generation Company" and JSC "Network Company" for attracting the funds of strategic partners. Negotiations are held with FSK of Russia for selling the trunk networks of JSC "Network Company".

The Acting Chairman of Committee of RF for Tariffs Marina Fayrushina chose the policy of regulating the tariffs for electricity and heat. She said that the final stage of reform results in considerable changes in tariff regulation. By prognoses by Government of Russia, annually the prices for gas will be growing by 28 per cent, so the high rates of growth of tariffs is unavoidable.

The most strong barrier in the wholesale market development is the cross subsiding: production of electricity covers the unprofitable generation of heat and the industry compensates the population the marked down payments. According to the Federal law till 2011 in the country has to be realized the Program of liquidating the subsiding that Farid Muhametshin called the "ulcer on the economy body, preventing relationships with product producers". But this may imply the big stroke on the population purse. To make in milder, in opinion by Marina Fayrushina it is necessary to transfer to cogeneration of electricity and heat and strengthen the address protection of low-paid citizens.

Chairman of Committee of State Council for economy, investments and entrepreneurship Marat Galeev emphasized that in the power engineering reforms remain the unsettled issues. He was concerned about the problem of very high prices for technical connection to the grids. In his opinion, the focus has to be the issue of heat supply to populated areas. In this business it is necessary to find the efficient owner, as the municipalities are unable to do this, said М.Galeev.

Summoning the results, Farid Muhametshin called the power engineering specialists not to waste time and accelerated the reforms, as power consumption of the developing Tatarstan economy grows with each year. One of the challenges was liquidation of the cross funding of population by industry in paying for energy. The problem has to be solved, specifically, through the address social support of the low-paid families. Parliament boss thinks that the power engineering specialists have to visualize at the "other end of the cable" not just the consumer but the specific human.

As the base was adopted the draft resolution by Presidium of State Council of RT. It is stressed in the document that JSC "Tatenergo" is referred to the big budget forming and socially significant companies of the high efficiency. The Holding management successfully reforms the power industry of Republic and founds the competitive environment in economy. Efficiently realized the investment Program, promoting the growth of competitiveness of power engineering of Republic. The social Programs are successfully realized and Industry Agreement provides the salary growth the level of which is higher the average Republicаn.

The reforms in the power system do not promote solving the number of problems, in the first hand, related to interests of population and municipalities, is said in the resolution. Remain the issues of efficient owners of the thermal grids in the towns with centralized district heating, not created the mechanisms of interesting the population in rational use of electricity, and meters installing. The issues require legal solving at the Federal level.

Specifically, Presidium recommends the State Council of RT to propose the law-making initiatives for entering the changes upon some of the legal acts of RF, related to defining the amount of payment for technical connecting to infrastructure grids, including of the new social objects and mid and small businesses. It is suggested in the Government of RF to propose the entering of modifications upon its resolution dd., 23.05.2006 #307 "On Procedure for Providing the Population with Utility Services".

Cabinet of Ministers of RT will be recommended for implementing the Republicаn law dd., 23.03.2006 "On Approval of Program "Energy-resource-efficiency in Republic of Tatarstan for 2006-2010" to render active the development of the Program of small power engineering and continue realization of the pilot projects in the area of small and untraditional power engineering. For heat supply from the cheap heat sources, reduction of cross funding, it is suggested to define the priorities of social and economical development of Republic, provision of heat from cogeneration sources (thermal plants) at Kazan, Naberezhnye Chelny, Nizhnekamsk, Zainsk, Urussu.

It is said in the project about the necessity to develop the actions stipulating the outrunning rates of growth of the average salaries and wages in the Republic compared to growth of prices for gas, utility costs. To the aim of stimulating the energy conservation by citizens it is suggested to reconsider the normatives of energy resource consumption. And at the same time must be realized the respective program of installing the meters to the low-paid residents.

The documents also contain recommendations for the municipal formation of Kazan together with JSC "Tatenergo", JSC "Kazan Thermal Network Company", MUP "Kazenergo" - to develop the program of optimized scheme of heat supply to Kazan taking into account the interests of population with regard to heat supply from the cogeneration sources.