OREANDA-NEWS. On 03 February 2009 was announced, that the agreements on the transfer of powers of the sole executive body of the majority of IES-Holding's energy sales and gas distribution companies came into force on January 15, 2009. CJSC IES legally assumed the management company functions for OJSC Orenburgenergosbyt, OJSC Sverdlovenergosbyt, OJSC Udmurtenergosbyt, and OJSC Kirovenergosbyt, as well as CJSC GAZEKS, OJSC Chelyabinskgorgaz and OJSC Sibirgazservis. Corresponding resolutions were passed in 2008 by the companies' Meetings of Shareholders and Boards of Directors.

Current executives of IES-Holding's energy sales and gas distribution businesses will continue managing the companies' day-to-day operations based on the authority granted by CJSC IES. This means completion of the corporate procedures related to their changeover to IES-Holding's new business model. The energy sales and gas distribution businesses of CJSC IES have been included in the organizational structure of the Retail Division.

"Transfer of the functions of the sole executive body directly to CJSC IES will produce a considerable synergy, bring about optimized management procedures and a higher efficiency, foster the formation of a common corporate culture, and increase the efficiency of the companies' interaction", notes Retail Division CEO, Executive Vice President Andrey Pestov. In this process, GAZEKS will retain its role as the corporate umbrella brand that unites all of IES-Holding's gas businesses.

The decision to change over to IES-Holding's new business model was taken in February 2008. This model includes generation (power and heat production, heat networks), trading (wholesale power and capacity market operations, fuel procurement), retail (power, heat and gas retail sales), as well as construction of new generating facilities.